Avarda Bank AB (publ)

Good morning and welcome to today's episode with TF Bank. We have with us CEO Joakim Jansson and CFO Mikael Mermuttel who will present their report for the third quarter of 2025. After the presentation is mentioned, I will open up for a Q&A. If you call in, please press star 9, raise your hand and star 6 to put on your microphone. It is also good to write written questions via the form. And with that, I would like to give the floor to you. Thank you very much.

We now close the third quarter of 2025. The quarter has been marked by a controlled growth. We have managed to further strengthen our margins. Growth in the local currency rose to a total of 6%. Summing up the activities of the quarter, we get an operating result of 231 million kronor, which is 21% better than the corresponding quarter previous year. And it is the credit card segment that drives our EPS growth at the company level. I am glad that the revenues are growing faster than the costs. And compared to how it looked one year ago, the GDP has continued to improve. This means that the business model scales well. Under kvartalet har vi sett en stabil kreditkvalitet, och det man måste ha i åtanke när man analyserar just den raden i vår resultaträkning är att vi är under stark förändring, både i form av affärs- och geografisk mix. Planen att ändra företagsnamn till Avarda Bank pågår enligt det pressmeddelande som omkallades i bolagsstämma som skickades ut igår. Nu vänder vi sida. Som jag har sagt i flera kvartal så är banken i en strategisk förändringsresa. Vi positionerar nu bolaget för fortsatt expansion. Som en del i detta ligger en ändring av bolagsnamn som förutsätter beslut av bolagsdämma samt relevanta myndighetstillstånd. Låt mig ta bakgrunden till förslaget. Sedan börsintroduktionen 2016 har banken utvecklats från en nordisk nischaktör till en europeisk kredit- och betalningsplattform i 14 länder. Today, we have an attractive positioning, with Germany as the most prominent example. As you know, and as our reports have shown in the last quarter, growth is driven today primarily by credit cards of our e-commerce segment. This means that the consumer loan business that TF Bank mainly went to the stock market with is a significantly lower share of the loan portfolio than at the time of introduction. Consumer loans in the Nordic countries now account for about 25% of the bank's loan portfolio, compared to about 70% at the time of introduction. Den här verksamheten kommer för övrigt under 25 att samlas i ett nytt dotterbolag, TF Bank Nordic. Kreditkorten och e-commerce utgör nu cirka 75% av den totala låneportföljen jämfört med cirka 30% vid börsintroduktionen. Bankens resa tydliggörs också genom att vi idag har över 3 miljoner användare eller en transaktionsvolym på 43 miljarder. which can be compared to a volume of 2.8 billion at the introduction and 300,000 customers. This change is dramatic. Avarda is now linked to our e-commerce offer. Avarda was founded in 2015, was born in the cloud and is a relatively new player in the market. But with its modern and scalable technology, Avarda is now one of the leading players in BNPL in the north. Avarda differs from the major competitors by having a defined white-label strategy. And it is now Avarda that we continue to build on for the company's overarching business, since the name reflects our digital solutions, our innovative way of working and our flexibility. It lays the foundation for our ambitions in our financial goals, and a continued strong profitable growth in the European market to create even more shareholder value. We can move on. Tillväxt här kvartal från kvartal. Så här tittar vi då på låneboken segment för segment i lokal valuta. På helheten är tillväxten 6%, ger och ger 20%. Kreditkort, vårt snabbväxande segment växte med 12% under kvartalet och ger och ger 41%. E-commerce increased by 1% under the quarter and year-on-year volume development was unchanged. Consumer loans grew by 1% under the quarter to local currency and 7% year-on-year. Now let's look at the side. If we look at market to market, we can start with Germany, which is the geographical core of the growing part of the bank's credit card business. We have seen a strong demand for the bank's credit card and we expect strong growth in the coming quarter. Germany is now over 40% of the bank's balance sheet. In the German market, we have launched our e-commerce offer at the end of last year, initially to Nordic traders. Earlier this year, we have also launched consumer loans. Of course, the German market also has a great potential in these product areas. But as always, when we launch new markets, we do it with caution and perseverance. The e-commerce solutions continue to grow in Norway. We see an improved result in both the retail business and the construction loans compared to the previous quarter. In the rest of the Nordic countries, the focus is to maintain profitability and credit quality in the construction loan business. The same profitability focus as in the Nordic countries applies to Estonia, Latvia and Lithuania. And in all three countries, the credit quality is stable. I Österrike ser vi att kreditkortsverksamheten utvecklas på ett bra sätt. Såklart en mindre marknad än den tyska, men förutsättningar att bedriva en väldigt bra lönsamhet i Österrike bedömer vi som väldigt goda. I Danmark, som är en av våra nyaste marknader, känner vi oss tygga med kreditkvaliteten och vi skalar den verksamheten nu i ett snabbare takt. And we have previously established credit cards in both Spain and Italy. And it is the beginning of a journey that is of longer character to learn to know these markets that are large and interesting from a more forward-looking perspective. Here we can browse. Here we look at the bank segment by segment and we start with credit cards. The loan portfolio in the segment now exceeds 10 billion. Och den underläggande verksamheten i segmentet växer med 41% jämfört med samma period föregående år. Och vi fortsätter att växa i form av antal kort i marknaden. Vi har nu 379 000 aktiva kort i Tyskland, vilket är en ökning med 33% jämfört med föregående år. Vi ser också ett förbättrat KU-tal i segmentet. It shows that the business is scaling well, and in this case, when we grow so much, then that conclusion is very important for us. And it also goes through the entire bank's QE numbers. Let's have a look. We can switch sides. In the e-commerce segment, we are now seeing the effects of our strong pipeline in new sales, and I have mentioned this earlier in the quarter. The volume of transactions is now growing by 51% compared to the same period last year. The growth is still going, but the increase in transactions can be expected to drive credit volumes in the future and, of course, increased revenues. And an important conclusion here is that despite a tough time for trade in general, we maintain profitability in this business in a very good way. We can look back. In the construction loan segment, we have had a controlled growth rate with a focus on defending the margin. Baktat pressade marginaler i flera marknader levererar segmentet fortsatt starkt. Som jag sagt tidigare så finns erbjudandet nu också i Tyskland. I samband med namnbytet så kommer den nordiska verksamheten flyttas till ett eget dotterbolag, TF Bank Nordic. Och alla varumärken TF Bank kommer fortsätta att användas i den verksamheten. Nu lämnar jag över till Mikael för den fortsatta presentationen.

Yes, thank you very much Joakim. So we can look at our turnover and we can see that DAS has increased to 748 million in the third quarter, which is 20% higher than the corresponding quarter last year. Also this quarter, the main driving force is the growth in the loan portfolio for segmented credit cards. But I would also like to mention that our financing costs continue to decrease in Q3. Here we see that several of our credit accounts have fallen, and then we replace them with cheaper funding or cheaper loan. If we look at our credit losses, these increased to 252 million during the third quarter. The credit loss level increased to 4.5% and was affected in the previous quarter by a mix effect, since our growing credit card segment has a higher income margin and a higher credit loss level than other segments. If we look further at the risk-adjusting margin, we see that it has trended upwards the past year and during the third quarter it rose to 8.9% compared to 8.5% in Q3 2024. The improvement is mainly related to a positive trend for the risk-adjusting margin in the credit cards segment. If we look to the side, Then we can look further at the bank's interest rates, and we can see that they have increased by 15% to 264 million under the third quarter. The company's KJR number at 35.4% is more than 1% lower than the same period previous year. And as you can see in the diagram for the KU number for the credit card segment, it rose to 29% in the last quarter. And the positive trend for the credit card's KU number continues and mainly depends on scale divisions in the business model and also an increased automation of our processes. If we look at our second segment, e-commerce solutions, we can see that the KU rate has risen to 61% in Q3 and the KU rate for e-commerce solutions has increased somewhat in the last year, which is partly explained by a declining loan portfolio that gives a slightly lower income. If we look at our third segment, consumer lending, we see that the KU rate rose to 34% in the quarter. And just as Joakim mentioned earlier, the Nordic business in the segment will be gathered in a new dotter company, which has not affected the KU number at all. If we look at the bank's turnover results, which Joakim also talked about, we see that it has increased by 21% to 231 million under the third quarter. The driving force behind the increase in profit is the strong development of segmented credit cards. The quarterly profit per share increased to SEK 2.70 compared to SEK 2.17 per share in the same period last year. I would also like to mention that the profitability is still strong in Q3 and the drop in the loan portfolio rose to 3.1%, which is 30 points higher than in the same period last year. I would also like to mention that after we announced that approximately 80% of the shares are in R&DM in December 2024, we have significantly more capital in the bank, which means that the return on our own capital has decreased somewhat compared to the same period last year. But if we measure it against a normalized level, we see an increased return on our own capital to 31% compared to 27% last year. If we take a look at our segments, we can start with credit cards. We see that the turnover increased to 120 million in Q3, which is 71% higher than the corresponding quarter last year. Higher revenues from the growing loan portfolio, an increase in risk-adjusted margin and scale allocation that gives it a lower QE ratio contributes to the segment's drop in the loan portfolio has increased to 3.6 in the quarter. And the corresponding quarter last year for this segment was the drop in the loan portfolio's level of 2.8 percent. If we look further at our segment e-commerce solution, we see that the turnover result went up to 26 million in the previous quarter, which is 11% lower than the previous period. And it is above all a high rate of return that contributes to the fact that the results have decreased somewhat. And as I communicated during Q2, we have gone live with several larger traders, which in the short term affects profitability through delayed revenues and early investments. If we look at the segment that was cut off from the loan portfolio, it went up to 3.1% in Q3. If we look at our third segment, consumer lending, we see a turnover of 85 million kronor in Q3, which is 7% lower than the corresponding quarter last year. As I mentioned earlier, the segment's KU number has increased somewhat in relation to the fact that the Nordic company in the segment will be gathering its new subsidiary. If we look at the risk-adjusting margin, we can see an increase, and it is still a very strong and good level of rejection of our loan portfolio in this segment. It rose during the quarter to 2.8% compared to previous years. Moving on to the next page, we can see the bank's financing and liquidity. We see that the loan in Germany continues to be our largest financing source. We now have a balance of 16.4 billion in the loan balance. But it is also a pleasure to see that the loan in the Netherlands has continued to increase and our balance is now up to 5.1 billion based on our Q3. The proportion of fixed interest loans has continued to decrease in the quarter and is now up to 49 percent. If we look at our available liquidity reserves, we saw that 17% of the income balance at the start of Q3, which is about 1% higher than what we had in Q2. Most of the liquidity is, as previously, placed in state equity exchanges with a current rate of up to 12 months, as well as the overnight account of some larger Nordic banks. If we look at LCR and NSFR, they rose to 172, respectively 113 in Q3. The LCR has decreased somewhat in Q3 and this is mainly due to the lower proportion of fixed interest loans we have chosen to have. Since we are changing the mix on this, it also affects our financing costs positively. If we scroll to the next page, we can look at our capital relations. The bank's primary capital relation rose to 14.3%, the primary capital relation to 15.6% and the total capital relation to 17.4% at the beginning of the quarter. The change in the capital relationship has been small and the capital relationship is therefore still 2% lower than the last year's levels. And based on Q3, our capital relations have a significant distance from the regulatory capital crisis at all levels, I would say. And as I mentioned in connection with the Q1 presentation, Finansinspektionen has also decided that our PLR 2 Guidance is 0% of the risk exposure rate. This actually means that we have good visibility in our future capital planning. And finally, I would also like to mention that we have been approved by Finansinspektionen to release our T2 instrument in December. And in connection with this, we are also looking to release new T2 instruments. And with that, I'll leave it back to you, Joakim.