1st quarter result presentation

15 May 2020

Disclamer

This Presentation from Easybank ASA ("Easybank" or the "Company") includes among other things forward-looking statements. Certain such forward-looking statements can be identified by the use of forward-looking terminology such as “believe”, “may”, “will”, “should”, “would be”, “expect” or “anticipate” or similar expressions, or the negative thereof, or other variations thereof, or comparable terminology, or by discussions of strategy, plans or intentions. The forward-looking statements contained in this Presentation, including assumptions, opinions and views of the Company or cited from third party sources, reflect the current views with respect to future events and are subject to material risks, uncertainties and other factors that may cause actual events to differ materially from any anticipated development. Neither Easybank nor any of its officers or employees provides any assurance as to the correctness of such forward-looking information and statements. The Company does not intend, and assumes no obligation, except as required by law, to update any forward-looking statements or to conform these forward-looking statements to its actual results.

By attending or receiving this Presentation you acknowledge that you will be solely responsible for your own assessment of the market and the market position of Easybank and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of Easybank’s business and the securities issued by Easybank.

This Presentation speaks as of 15 May 2020. Neither the delivery of this Presentation nor any further discussions of Easybankwith any of the recipients shall, under any circumstances, create any implication that there has been no change in the affairs of Easybank since such date.

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Table of contents

1 Highlights and development Q1

2 Financial results Q1

3 Outlook

3

Highlights Q1 2020

1

2

4

5

Profit before tax of NOK 4,9 million Result impacted by 1) losses on liquidity portfolio 2) lower loan volumes 3) higher loan losses and 4) investments related to SME business area.Losses on liquidity portfolio driven by Covid-19 impact to credit markets in March. Recovery in April when markets were stabilized. Increased sale of non-performing loans the last quarters under forward flow agreement to strengthen portfolio quality.

Annualized EPS NOK 0,31, ROE 2,9%, book value of equity per share

(BVPS) NOK 9,78

Transition to IFRS9 completedNegative equity impact of NOK 103,7 million from January 1st related to increased loss provisions under IFRS9. Agent commission and establishment fees presented as Interest Income in profit & loss statement, and as Net Loans in balance sheet from January. Historical numbers have not been restated. New principle was introduced from January for loans in debt collection, where interest is recorded as Interest Income and a corresponding amount is recorded as Loan losses, hence no impact on Net profit.

Expansion of product portfolio in SMEProducts in the SME business area are live and in a controlled scale-up phase. Focus going forward is to expand products and services to existing partners and adding new partners to the scalable business platform.

Key Figures

4

(in MNOK)

Interestincome

PBT*

ROE*

EPS*

Cost/Income

Gross loans

Consumer loans

Q1-20

76,7

4,9

2,9%

0,31

30,5%

2 735

2 597

Q1-19

84,1

22,7

13,7%

1,47

28,3%

2 765

2 523

2019

340,7

86,2

12,3%

1,36

27,6%

2 804

2 645

(PBT: Profit before tax, ROE: Return On Equity (excluding tier-1 capital), EPS: Annualized Earnings per share. IFRS9 implemented from January 2020, historical numbers have not been restated)

Covid-19 impactThe bank has maintained effective operations where most employees have been working from home. Focus on responding to forbearance requests by customers, conservative sales practice and increasing capital buffer which has led to reduced loan volumes during Q1. Too early to assess Covid-19 impact on loan losses going forward.

3

Shareholders

Strong and stable shareholder baseTop 30 shareholder as of 12 May 2020

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# Investor Shares Shares %

1 Skagerrak Sparebank 4 409 380 9,30 %

2 Verdipapirfondet Alfred Berg 3 844 349 8,11 %

3 Fondsavanse AS 3 072 986 6,48 %

4 Umico - Gruppen AS 2 618 779 5,53 %

5 Hjellegjerde Invest AS 2 600 000 5,49 %

6 Ladegaard AS 2 406 032 5,08 %

7 Shelter AS 1 945 486 4,10 %

8 Lindbank AS 1 838 007 3,88 %

9 MP Pensjon PK 1 458 738 3,08 %

10 Jenssen & Co AS 1 287 879 2,72 %

11 Krogsrud Invest AS 1 250 000 2,64 %

12 Nordic Private Equity AS 1 166 668 2,46 %

13 Jolly Roger AS 1 149 074 2,42 %

14 Independent Oil & Resources Plc 890 000 1,88 %

15 Byholt AS 767 159 1,62 %

16 Whitetailwebservice Ltd 705 009 1,49 %

17 Trippel-L AS 606 118 1,28 %

18 Jaras Invest AS 440 909 0,93 %

19 Ulltveit-Moe, Hildegunn 400 222 0,84 %

20 B Finans AS 400 000 0,84 %

21 Motor Trade Eiendom og Finans AS 365 878 0,77 %

22 Conta Group AS 347 368 0,73 %

23 Wist Holding AS 338 000 0,71 %

24 Truls AS 310 000 0,65 %

25 Arild Hestås Invest AS 301 250 0,64 %

26 HHG Invest AS 300 000 0,63 %

27 Juul-Vadem Holding AS 295 000 0,62 %

28 Autobahn AS 270 364 0,57 %

29 Langsether, Skule 265 490 0,56 %

30 Haukvik, Svein Ola 260 000 0,55 %

Total top 30 36 310 145 76,61 %

Other 11 087 045 23,39 %

Total 47 397 190

• 423 shareholders as of 12 May 2020.

• The EASY share was registered on NOTC on 15 November 2016.

• Management holds a total of 2,362,676 shares, corresponding to 5.0% of shares outstanding.

• Members of the board represents a total of 2,728,305 shares, corresponding to 5.8% of shares outstanding.

• Current market capitalization of approx. MNOK 284.

Gross lending & number of customers

Volumes affected by conservative sales practice, and build up of liquidity and capital bufferGross lending per product

NOK million

Customers per product

(IFRS9 implemented from January 2020, historical numbers have not been restated. 6

Credit quality - Consumer loans

Increased loan loss provisions due to IFRS9 -Forward flow agreement reduces downside risk

Coverage and loan loss ratio Comments

7

Loans past due

• IFRS9 was implemented January 1st 2020.

• The implementation of Debt register has increased NPL throughout 2019 and into 2020, resulting in higher losses. Too early to assess impact from Covid-19 on losses going forward

• Increased sale of non-performing loans the last quarters under forward flow agreement to strengthen portfolio quality.

• Loss ratio in Q1 2020 affected by IFRS9 treatment of loans in debt collection. Interest on those loans are recorded as interest income, and a corresponding amount is increased under loan losses. Hence no impact on net profit, but higher loan loss ratio under IFRS9.

• Easybank’s forward- flow agreement reduces downside risk as non-performing loans are on an ongoing basis sold to Kredinor to a pre-defined price. Option to extend the forward flow agreement with Kredinor throughout 2023 with same conditions as the initial agreement from July 2017.

IAS 39 IFRS 9

90+ PD = Loans in stage 3 less performing loans. IFRS9 implemented from January 2020, historical numbers have not been restated.

7,5 % 9,4 % 10,9 % 9,7 % 10,5 %3,3 %

2,5 %3,8 %

3,3 %3,2 %2,1 % 2,3 %

2,0 %2,1 % 1,7 %

9,5 %10,9 %

12,2 % 13,1 % 14,1 %

Q1-19 Q2-19 Q3-19 Q4-19 Q1-20

1-29 PD 30-59 PD 60-89 PD 90+ PD

Net interest income & yields

Still attractive margins –Net Interest margin affected by loss on liquidity portfolio in Q1

Net interest income and net interest margin of total assets Yields (end of quarter)

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Overview

Satisfactory capital buffer and competitive cost/incomeGross lending Opex and Cost/ income ratio

9

Profit after tax and ROE

Income and interest margin

Losses and loss ratio Equity and CET1 ratio

(IFRS9 implemented from January 2020, historical numbers have not been restated.

Total assets Equity and liabilities

Strong funding and liquidity positionBalance sheet structure

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• Deposit Ratio: 108 %

• Liquidity Coverage Ratio 904 %

• Net Stable Funding Ratio 175 %

• Diversified customer deposits. 49% of deposits with 35 days+ notice period

• MNOK 793 in surplus liquidity placed in Norges Bank, other banks and positions with short duration and low risk

(IFRS9 implemented from January 2020, historical numbers have not been restated.

Table of contents

Highlights and development Q11

Financial results Q12Outlook3

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Income statement

12

(Amounts in thousands) Q1 2020 Q1 2019

YTD Q1

2020

YTD Q1

2019

Full year

2019

Interest income 76 746 84 062 76 746 84 062 340 690

Interest expense -14 347 -15 420 -14 347 -15 420 -62 396

Net interest income 62 399 68 643 62 399 68 643 278 294

Comission and fee income 6 501 12 351 6 501 12 351 42 552

Comission and fee expenses -885 -14 761 -885 -14 761 -57 035

Net change in value on securities and currency -2 226 1 679 -2 226 1 679 7 459

Other income 0 0 0 0 111

Net other income 3 389 -731 3 389 -731 -6 913

Total income 65 788 67 912 65 788 67 912 271 381

Salary and other personell expenses -8 743 -7 917 -8 743 -7 917 -32 284

Other administrative expenses -6 863 -7 501 -6 863 -7 501 -27 148

- of which marketing expences -1 111 -2 893 -1 111 -2 893 -7 578

Depreciation -1 645 -1 397 -1 645 -1 397 -5 940

Other expenses -2 782 -2 427 -2 782 -2 427 -9 440

Total operating expenses -20 033 -19 242 -20 033 -19 242 -74 812

Profit before loan losses 45 755 48 669 45 755 48 669 196 569

Loan losses -40 819 -25 930 -40 819 -25 930 -110 390

Profit before tax 4 936 22 739 4 936 22 739 86 179

Tax -1 234 -5 685 -1 234 -5 685 -21 571

Profit after tax 3 702 17 055 3 702 17 055 64 609

(IFRS9 implemented from January 2020, historical numbers have not been restated.

Balance sheet

13(IFRS9 implemented from January 2020, historical numbers have not been restated.

(Amounts in thousands) 31.03.2020 31.03.2019 31.12.2019

Assets

Cash and deposits w ith the central bank 123 492 53 935 54 351

Loans and deposits w ith credit institutions 204 431 190 080 154 717

Loans to customers 2 735 395 2 765 372 2 804 258

- Loan impairment -222 430 -75 385 -91 746

Certificates and bonds 0 79 560 0

Shares and other securities 464 987 291 382 457 112

Shareholding in group companies 11 192 192 11 192

Deferred tax asset 33 454 0 135

Other intangible assets 21 442 20 942 20 471

Fixed assets 859 1 093 872

Other assets 7 386 885 9 451

Other receivables 5 594 78 537 73 814

Total assets 3 385 803 3 406 592 3 494 628

Equity and liabilities

Loan from central bank 95 000 0 0

Deposits from customers 2 708 272 2 778 439 2 806 011

Other liabilities 32 878 29 679 39 090

Accrued expenses and deferred revenue 11 073 16 263 10 352

Tier 2 capital 40 000 75 000 75 000

Total liabilities 2 887 223 2 899 381 2 930 452

Share capital 331 799 324 688 331 707

Share premium reserve 127 111 124 591 127 092

Tier 1 capital 35 000 0 0

Other paid-in equity 7 177 6 719 7 159

Other equity -2 507 51 214 98 218

Total equity 498 580 507 212 564 176

Total equity and liabilities 3 385 803 3 406 592 3 494 628

Table of contents

Highlights and development Q31

Outlook3

Financial results Q32

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15

Deliver competitive ROE

Handle impact from Covid-19

Evaluate strategic opportunitiesto utilize the bank's scalable operating model

Scale portfoliowithin the SME market and enter into agreements that

strengthen the bank's distribution network

Operational efficiencywith low operating costs and competitive C/I

1

2

3

4

5

Outlook

Focus going forward