Reference is made to Morrow Bank's update 25 April 2023 on its Q1 2023 results
ahead of the publication of the interim report and presentation. Highlights of
the quarter:

Solid income growth enabled by improved throughput and stable net yield
o 12% loan balance growth vs. Q4 2022, 7% growth when adjusting for currency
effects
o Increase of loan book interest rates continued, stable net yield
o Total income growth of 6% vs. Q4 2022 driven by net loan growth

Initiatives to reduce cost base continued to materialise 
o Number of full-time employees (FTEs) reduced by 43% year-on-year
o Total operating expenses before depreciation and write-offs down by 18% vs. Q4
2022
o Cost/income ratio of 35% vs. 44% (adjusted) in the previous quarter

Stable credit quality development and material ROE improvement
o Loan loss ratio of 3.9%, down from 5.4% (adjusted) in Q4 2022, driven by lower
loan growth and stable underlying credit quality
o Profit after tax of NOK 40 million vs. NOK -89 million in the previous quarter
o Return on equity (ROE) was 8%, the highest level since Q2 2021

Outlook for further growth and cost/income reduction
o Strategic initiatives focusing on simplifying IT in 2023