Instabank (INSTA) investor relations material

Executive summary

• Profit before tax reached a record 62.2 MNOK in Q2-2026, up 115% year-over-year, with profit after tax at 46.6 MNOK and return on equity at 14.6%.

• Gross loans grew by 938 MNOK (10.2% QoQ) to 10,105 MNOK, with all four product areas contributing.

• Operating leverage improved as income growth (42% YoY) outpaced cost growth (25% YoY), reducing the cost/income ratio to 39%.

• The German credit card business turned profitable one year after launch, contributing 42% of lending growth and posting a profit before tax of 3.6 MNOK.

• The SREP decision released 141 MNOK in capital, strengthening the capital position and confirming continued operation as a Norwegian bank.

Financial highlights

• Total income for Q2-2026 was 204.5 MNOK, up 42% year-over-year.

• Net interest income rose to 171.0 MNOK, driven by a 2,247 MNOK increase in lending over 12 months.

• Operating expenses increased to 80.3 MNOK (up 25% YoY), but cost-to-income ratio improved by 5pp to 39%.

• Loan losses were 62.0 MNOK (2.6% of loans), up 11.0 MNOK YoY, but the loss ratio remained stable.

• Excluding IFRS 9 model updates, adjusted profit before tax was 50.4 MNOK, up ~75% YoY.

Outlook and guidance

• 2026 profit after tax guidance: NOK 160–185m; mid-term ambition: >NOK 400m.

• Return on equity target: 15% for 2026, >20% mid-term.

• Gross loans expected to exceed NOK 11.5bn in 2026 and NOK 18bn mid-term.

• Targeted lending growth of 3,000–3,500 MNOK for 2026.

• Continued investment in AI and automation to drive efficiency and customer experience.