Avarda Bank AB (publ)

Hello and welcome to today's broadcast with Avarna Bank. We have with us VD Joakim Jansson and CFO Mikael Meomutter, who will present the first reports for 2026. After the presentation, open up for a Q&A, so call in, kindly press 9 to raise your hand and 6 to turn on the microphone. You can also write in written questions via the form. And with that, I'll leave the floor to you.

Thank you very much. Good morning everyone. Vi stänger nu det första kvartalet 2026 och som ni har sett från pressmeddelandet den 9 april gör vi det som Avarda. Vi kommer ägna lite tid i den här presentationen att presentera namnbytet. Genom att ha bytt namn till Avarda så tydliggör vi bolagets verksamhetsförändring. För oss så är namnbytet inte en kosmetisk förändring utan det är ett uttryck för vår strategiska förflyttning. För oss är namnet av Varda nära förklippat med att utveckla, bredda och expandera, vilket väl speglar bolagets framåtanda. Och för oss innebär namnbygget en bestämd riktning framåt. Att vara ständigt tillgänglig för våra kunder med kundanpassade betalningsbar och lånelösningar när helst kunderna behöver det. Det förändrar inte vår roll som investeringsobjekt. Vårt löfte till våra ägare är fortsatt tydligt. Vi ska kombinera hög kundnytta med stark tillväxt och uthållig lönsamhet och därigenom skapa långsiktigt värde. Detta är och har varit kärnan i vår strategi och det är det som också vägleder vår utveckling framöver. Vi kan bläddra. Några nyheter i samband med denna rapport. To clarify our strategic shift, we focus to a greater extent on how value per customer is created over time. We therefore complete the training with a number of new KPIs, as you can see in this picture, as a number of active customers and revenue per customer. Against this background, we also change the segment training according to the press release that was sent out last week. We go from product-based training to a structure that to a greater extent reflects how customers use our services. It means a previous division between the new segment, Everyday Finance, where we build long-term, continuous relationships related to the customer's daily economy, and the segment, Consumer Lending, which meets the customer's credit needs at any given time. And Everyday Finance consists of the previous segments, Credit Cards and E-Commerce Solutions. The background to these two changes is as follows. We now have half a million active short customers and we continue to grow rapidly. This means that our app becomes an all-important point of interaction with our customers, which makes it possible for us to build a daily relationship with our customers. Within Everyday Finance, we also run business for short-term payments in an ever-growing development on a joint technical platform, which strengthens our ability to be present on a daily basis in our customers' economic lives. Therefore, we now also add important KPIs that underlie our overarching financial goal, profitability on our own capital. And as you can see here on this picture, we have about 3.4 million users. Of which about 500,000 are users of our app, which right now is equivalent to the number of active short customers. And we are now developing the app to our primary meeting place for our end customers. In the past year, we have seen an increase of 28% of active short customers, which also has access to our app. And these copies testify to Avarida's range. but also about growth in our market position. And where we think that the number of users of the app describes what conditions we have in the future to broaden customer relations over time. In the quarter, we also have an average income per customer of 970 kronor per year, which is significant in terms of the ability to create income from our growing customer base. Om vi nu ser på det första kvartalets affärsutveckling, tjänetecknas det av en kontrollerad tillväxt, där vi lyckats ytterligare stärka våra marginaler. Risk- och stödmarginal är 8,9%, vilket är en ökning med 30 punkter, jämfört med samma period föregående år. Och i ett bolag som var Varda, som så länge har haft så stark tillväxt, vittnar just den höga och stabila risk- och stödmarginalen om kvaliteten i den tillväxten. Kan vi bläddra blått? Vad är då kvartalets nyckelpunkter? Som ni har hört så kommer vi vid ett nytt företag, Snavarda. Det speglar förflyttningen som vi har gjort sedan börsintroduktionen 2016 och är en del av vår förflyttning till en europeisk leverantör av betalning, spar och lånelösningar. Vi flyttar oss mot att bygga relationer med kunder som dagligen använder våra tjänster. But, as I said earlier, this shift or change of company name is not a fault of the curve when it comes to our investment lift. Our overall goal and mindset is to find growth where profitability exists, not to be led by the will to grow in a given market, but to optimise the business all the time. There is a bit left, but the tools have partly changed. Årets första kvartal speglar just detta. Rentabiliteten på eget kapital uppgår till 26,1%. Med en tillväxt i lokal valuta på sammanlagt 3%. Kvartalet vittnar om en stabil tillväxt. Underliggande var januari och februari mer dämpat, medan mars på flera punkter var en rekordmånad för vår affärsutveckling. Det innebär också att med en stark marsmånad kommer vi nu in i andra kvartalet som har vardat med motorn gående på alla cylindrar. Låneportföljen har ökat med 21 % jämfört med motsvarande period föregående år. Vi kommer återkomma hur det står mot våra uppställda finansiella mål. Summerar man kvartalets aktiviteter får vi ett slutligt operativt resultat på 245 miljoner kronor, vilket är 30 % bättre än motsvarande period föregående år. Intäkterna växer snabbare än kostnaderna även detta kvartal. Vi ser ett förbättrat kvartal på cirka 35 procent. Cirka 2 procenten är bättre än motsvarande period föregående år. I det här fallet när vi växer så mycket är just slutsatsen om den här skalbarheten extra värdefull. Kapitalrelationen är stark. Med en kapitalrelation på 16,3 procent överstiger vi med bred marginal både externa och interna riktlinjer. Kan vi bredda sidan. Här stannar vi upp och ser på kvartalets utveckling och hur det står sig i jämförelse med det finansiella mål som har varit att styrelsen ställde upp 2025. Vi kan då konstatera att utvecklingen går i takt mot målet om 35 miljarder i utlåningsvolym vid utgången av 2027. Det med en rentabilitet som med bred marginal överstiger 20% och med marginal gentemot uppställda kapitalmål. Vi kan bläddra igenom. Here we show the growth in the loan book segment by segment in the local currency. If we start with the whole, the quarter's organic growth was 3% and gives and gives 20%. Everyday Finance, which is the bank's growth engine, grew with 4% in the quarter and 35% gives and gives. The first quarter is seasonally a weaker quarter, usually. So även i år, men som jag påpekade tidigare stod utvecklingen fart i mars, som på många sätt var en rekordmånad för oss. Consumer lending minskade med 2% under kvartalet i lokalvaluta, men ökade 2% year on year. Vi kan bläddra. Tittar vi marknad till marknad så kan vi göra ett nedstamp i Tyskland, som geografiskt är kärnan i den växande delen av bankens kreditkortsverksamhet. We have seen a strong demand for the bank's credit card. March was, as I said, a record month in many ways. And we expect a strong growth in the coming quarter. Germany is now over 40% of the bank's loan book. And as you know, we have launched our e-commerce offer in the German market at the end of 2024. We focus primarily on Nordic traders, but we also have a number of local customers. In Germany we have also launched a consumer loan in 2025, and of course the German market also has potential in this area. But as always when we launch new markets, as we have done here in the e-commerce offer and consumer loans, we do it with caution and perseverance. Even Austria is a very exciting market for us. We see that the credit card business is developing in a good way. Of course a smaller market than in Germany, but the conditions for us to operate a profitable business in Austria are good. and our profit development is strong. Even in the Norwegian market, we see a good development, and even there we are in place with all our offers. Everyday Finance, consisting of the credit card business, is developing strongly together with e-commerce solutions, where we have launched a number of new traders earlier this quarter. Now we look at segment by segment and start with Everyday Finance. Here we can see that the loan portfolio in the segment exceeds 15 billion. Den underliggande verksamheten växer med 35% jämfört med samma period föregående år. Och det är ju då just marknaden i Tyskland och Österrike som driver tillväxten i segmentet. Och ser man på den underliggande verksamheten så fortsätter vi växa i form av antal nyutgivna kort. Momentum är fortsatt starkt i affären med över 70 000 kort utgivna under kvartalet. This gives strong conditions to increase the number of active gap users, i.e. active cards, and we now have 429,000 active card users in Germany, an increase of 28% compared to previous years. Also the volume of transactions is an important indicator for the segment, as this is partly converted to credit volume. And then you can see that the volume of transactions during the quarter rose to 10.5 billion, an increase of 34% compared to the same period previous years. And that indicates that the underlying growth of the business is good and that our customers use our services daily in line with the segment's intentions and is a good prediction for future growth in the loan book. Now we turn to the side. In the consumer lending segment we have a loan portfolio that has exceeded 9 billion, an increase of 2% compared to the same quarter last year. The quarter is characterized by a controlled new loan with a focus on defending margins. And it is reflected in the new loan that went up to 1.4 billion, which is a decrease of 4% compared to the same period last year. The segment delivers strong profitability, ensuring pressed margins in several markets. The offer is now in place in the German and Danish markets since last year. Germany and Denmark are developing according to a plan and can be expected for a large part of the growth in the segment in the future. Planen är att fortsätta verka under varumärket TF Bank för konsumtionslån och verksamheten när vi möter kunden utanför våra egna mötesplatser.

Nu Mikael, får du ta vidare. Tack så mycket. Om vi då bläddrar så kan vi först titta på våra rörelseindetekter. Så kan vi se att dessa uppgifter är 827 miljoner under första kvartalet, vilket är 24 procentenheter högre än motsvarande kvartal förra året. Even this quarter, the main driving force is the growth in the loan portfolio for German credit cards, but I would also like to mention that our financing costs have decreased somewhat during Q1, which of course has affected the net profit positively. It is also worth pointing out, just as Joakim mentioned earlier, that the loan growth came late in Q1 and therefore the turnover has been affected by something negative. If we look further at our credit losses, we saw 290 million under the first quarter. The credit loss level has risen to 4.8, and this 90% affects, as before, that German credit cards become an increasingly large part of the company. And it has both a higher credit loss level and a higher income margin, so it's worth taking with you. If we look further at our risk-adjusted margin, we see that it was stable at 8.9% in Q1. If we compare that to the previous year, it has increased by 30 points. We can look at the paper. If we look further at the bank's moving costs, we can see that these increased by 17% to 292 million under the first quarter. Koncernets KY-tal, precis som Joakim nämnde, landade på 35, vilket är 2 procenten lägre än i Q1 föregående år, vilket jag tycker visar på en god skalbarhet i vår affär. And as you can see in the diagram, the KU rate is in the segment Everyday Finance, 37% in the last quarter. And the positive trend for the KU rate depends primarily on scale for our growing credit course business, but also that we actually have a higher degree of increased automated processes. If we look further at the second segment, Consumer Lending, we see that the KU rate went up to 31% in Q1, which is about the same level as we had last year. If we look at our movement results, as Joakim also mentioned, it increased by 30% to 245 million during the first quarter. The driving force behind the interest rate gap year-on-year is mainly the strong development of our German credit cards. During the quarter, we have also eliminated the remaining R&D stocks, according to the share loan agreement that we had with Myntra and R&DM. Detta medför en positiv effekt om ungefär 22 miljoner, vilket innebär att kvartalets vinst före skatt uppgick till 267 miljoner och vinsten per aktie i kvartalet ökade därmed med 47 procent genom det. Tittar vi vidare på bankens avkastning på det egna kapitalet så uppgick det till 26 procentenheter, men exklusive ingångseffekter så uppgick den justerade avkastningen på eget kapital till 24 procent. Lönsamheten har ökat det senaste året och ligger väl i linje med våra finansiella lönsamhetsmål trots att vi har betydligt mer eget kapital än vad kapitalmålet kräver. Om vi mäter mot en mer normaliserad nivå av eget kapital så ser vi en avkastning exklusive engångseffekter kring 30% under kvartalet. Vi kan bläddra. If we look further at the segment, we start with our new segment, Everyday Finance, and here we see that we have a turnover result that increased to 167 million in Q1, which is 61% higher than the same quarter last year. And here it is above all higher income from the growing loan portfolio in Germany, the share shares and also as I mentioned a lower KIT and also an increasing risk margin that together contributes to the segment's drop in the loan portfolio increased to 3.5% in Q1. And if you do it to normalize the drop in e-capital, it goes up to about 35% for the segment. We can browse. And we look a little bit at the consumer lending segment, we see a turnover result that rose to 77 million in Q1, which is 8% lower than the previous quarter. Here is the credit loss level segment, which increased to 3.2% in Q1. And here I would also just point out that the figures have been affected somewhat negatively by the fact that we have had a relatively increased revenue on old loans in Poland. That figure was about 5 million in this quarter. If we look at the depreciation of the loan portfolio for Segmentis, it went up to 2.6% and that corresponds to a normalized depreciation of equity by about 24%, which is strong. We can move on and look a little bit at the financing and liquidity. Here we see that it is housing loans in Germany that is still our clearly largest financing source with a balance of 18.8 billion in the loan balance based on Q1. And the largest market for loans is the Netherlands, with a balance of 4.3. And the total loan amount of the company is now about 45% of the account with a fixed interest rate at the beginning of the quarter. I would also like to mention that in December and January we had quite large declines in the fixed interest rate account, which could be replaced with a slightly cheaper loan, which then affects our financing costs in Q1 positively. But towards the end of the quarter, however, we have had to adjust some of our loan interest rates as a result of the conflict that we have seen in the Middle East. If we look at our available liquidity reserves, then it went up to 17% of the loan balance at the beginning of Q1, which is about the same level as we saw in Q4. Most of the liquidity is, as before, quarter placed in state-owned companies with a running time of up to 12 months. as well as overnight accounts with some larger Nordic banks. We can move on and take a look at our capital relations. We can see that the key primary capital relation increased to 13.2, the primary capital relation increased to 14.4, and the total capital relation level, as Joakim mentioned, increased to 16.3 at the start of the quarter. And here I would like to mention that the capital reduction has increased during the quarter as a result of the sale of existing Redem-cash and also the amortization of a company loan of 366 million, which will be transferred to the first issuance of Redem-cash in December 2024. And I would also like to remind you that our capital reduction in Q1 is burdened by the fact that we are now withdrawing the capital base for foreseeable exchange payments. The withdrawal amounted to about 50% of the net profit for 2026. This level is based on the requirements according to the Capital Debt Regulation, which means that we will add our share for 2025. In terms of money, I can also mention that the withdrawal amounted to about 100 million, which corresponds to about 0.5% of the bank's capital regulations, which you can also see in the stretched lines on the performance in the stack. Men även med detta avdrag så har samtliga våra kapitalrelationer fortsatt ett betydande avstånd till de regulatoriska kraven och vi har även ett betryggande avstånd till vårt kapitalmål som innebär att vi ska ligga 2,5% enheter över det regulatoriska kapitalkrav på samtliga nivåer. Och med det lämnar jag tillbaka ordet till dig, Joakim.