Morrow Bank, a leading Nordic digital niche bank, delivered another solid
quarter with profit before tax of NOK 83.6 million, up 65% year-on-year.
Full-year profit before tax was NOK 281 million, up 37%.

Commenting on the results, Morrow Bank's CEO Øyvind Oanes said: "With
record-high income, improved cost efficiency and declining loan losses, Morrow
Bank delivered significant shareholder value, achieving a total shareholder
return of ~140% for the year. Since launching our turnaround early 2022, we've
reduced the cost/income ratio from 54% to a best-in-class 26%, doubled the loan
book to NOK 15.4 billion and we are now in the position to pay a dividend for
2024." 

Highlights of the quarter and full-year 2024: 

Built a scalable banking platform
o Gross loans at NOK 15.4 billion, up 31% from NOK 11.8 billion end-2023 
o All-time-high total income of NOK 354 million in Q4 and NOK 1.3 billion in
2024, up 24% and 21% vs 2023 respectively
o Cost/income ratio at industry-leading 25.9% in the quarter (28.0% in Q4 2023)
enabled by a scalable banking platform

Strong value drivers in place
o Nordic macro improving, with expected higher GDP growth and lower inflation in
2025-2026 compared to last year
o Loan loss ratio to continue to decline supported by stricter policies, a
maturing loan book and improving macro - enabling higher risk-adjusted margins
o Current business plan set to generate excess capital from 2025 as returns
exceed growth

Increased profitability and proposed dividend
o Loan loss ratio declined for the fourth quarter in a row to 4.6% (5.4% in Q4
2023)
o Profit before tax increased by 65% to NOK 83.6 million in Q4 (NOK 50.6 million
in Q4 2023) and 37% to NOK 281 million for 2024 (NOK 206 million for 2023)
o Return on target equity (ROTE) of 10.6% in the quarter and 10.1% for 2024
o The board to recommend a dividend of up to 50% of 2024 profits available for
distribution to the AGM (10 April 2025), approximately NOK 0.4 per share

Attractive value creation potential
o Targeting annualised organic loan growth of ~5 %, cost/income ratio of 23% and
return on target equity of 12-14% by year-end 2026
o Submitted Swedish banking license application to achieve regulatory level
playing field with Swedish peers 
o With capital requirements like Swedish peers, return on target equity could
reach 20% in the mid-term
o Swedish FSA decision expected in Q2 2025 - planning to start Swedish operation
and transfer listing to Nasdaq Stockholm early 2026

Øyvind Oanes commented further: "Looking ahead, the prospects are encouraging.
Nordic macroeconomic conditions are improving, with declining interest rates and
renewed GDP growth on the horizon. These trends support stable to improving net
interest margins, continued reductions in loan losses and higher risk-adjusted
returns. From 2025, we expect growing excess capital generation which we are
committed to allocate to where it can generate the highest long-term shareholder
return. Our redomiciliation process is on track, with a decision from the
Swedish FSA expected in Q2 2025. Aligning our capital requirements with Swedish
peers is expected to enhance our return on target equity to as much as 20%,
unlocking further value in the mid-term."

The Q4 and full-year 2024 report and presentation are attached to this release
and available at ir.morrowbank.com. 

CEO Øyvind Oanes and CFO Eirik Holtedahl will present the Bank's results today
at 08:30 CEST. The presentation and following Q&A will be conducted via
Microsoft Teams. Registration form for the presentation:

https://tinyurl.com/morrowbankQ42024

For further information, please contact: 
Eirik Holtedahl, CFO 
tel: +47 96912291 
email: ir@morrowbank.com 

About Morrow Bank ASA 
Morrow Bank is a Nordic niche bank offering personal loans, credit cards and
deposit accounts to consumers. The target group is creditworthy individuals with
stable personal finances and no payment remarks. Credit risk is managed largely
by automated processes for credit assessment and underwriting. The Bank has a
diversified and balanced distribution model utilizing both public and
proprietary channels. Operational efficiency and low cost are a foundation for
Morrow Bank, enabled by centralized operations, modern systems and digital
set-up. To learn more, visit ir.morrowbank.com 

This information is considered to be inside information pursuant to the EU
Market Abuse Regulation article 7 and is subject to the disclosure requirements
pursuant to section 5-12 of the Norwegian Securities Trading Act. This stock
exchange announcement was published by Henning Fagerbakke, Head of Finance,
Morrow Bank ASA, on Thursday 13 February 2025 at 07:00 CET.