Morrow Bank AB Q2 and H1 2026: Continued organic earnings growth and MedMera Bank acquisition completed

Q2 2026 (April -- June)

Compared to April - June 2025 (see footnote 1)

* Gross loans of SEK 18.0 billion, up 19 per cent year on year with organic growth in the quarter offset by the sale of a SEK 440 million non-performing loan (NPL) portfolio

* Total income of SEK 372 million, up 13 per cent

* Cost/income ratio at 30.4 per cent, 27.7 per cent excluding one-off costs related to the MedMera Bank transaction and the redomiciliation to Sweden, reflecting integration preparation costs ahead of MedMera Bank consolidation from Q3 2026

* Loan loss ratio at 3.5 per cent, down from 4.3 per cent, reflecting increased credit quality

* Profit before tax of SEK 100 million in the quarter, up 17 per cent

* Return on equity (ROE) at 11.9 per cent and return on target equity (ROTE) at 16.3 per cent, compared to 11.3 and 12.2 per cent, respectively

* Earnings per share (EPS) of SEK 0.31 (0.27)

H1 2026 (January -- June)

Compared to January - June 2025 (see footnote 1)

* Gross loans of SEK 18.0 billion, up SEK 1.1 billion since year-end 2025 and 19 per cent year on year

* Total income of SEK 742 million, up 13 per cent

* Cost/income ratio at 29.2 per cent, 26.0 per cent excluding one-off redomiciliation and MedMera Bank transaction costs, compared to 26.6 per

cent

* Loan loss ratio at 3.9 per cent, down from 4.3 per cent

* Profit before tax of SEK 187 million, up 13 per cent

* Return on equity (ROE) at 11.3 per cent and return on target equity (ROTE) at 15.3 per cent, up from 10.3 and 11.9 respectively

* Earnings per share (EPS) of SEK 0.57 (0.53)

Highlights of the quarter

Profit before tax up 17 per cent to SEK 100 million in Q2, driven by loan book growth and improved credit quality, partly offset by investments in the organisation as preparations for the MedMera integration and one-off transaction costs.

The sale of a Swedish non-performing loan portfolio with a gross book value of approximately SEK 440 million closed in April, reducing NPL exposure risk and supporting capital ratios.

All conditions for the acquisition of MedMera Bank were met during the quarter, which increases the loan book by approximately 65 per cent. The transaction was completed on 1 July 2026, right after the quarter.

The consideration of SEK 1,960 million was financed through excess capital, an oversubscribed rights issue of SEK 592 million and a new AT1 of NOK 300 million combined with a SEK 200 million T2 bond -- both issued at record low margins for the Bank.

"In the second quarter we completed the preparations for our largest acquisition to date -- including the rights issue that was significantly oversubscribed. The MedMera Bank transaction was closed on 1 July as planned.

Underlying profit before tax for Morrow Bank grew 17 per cent year-on-year with credit quality clearly better than target. MedMera exhibited an equally strong development in the period. From here, the priority is efficient integration and continued profitable growth." says Øyvind Oanes, CEO

The Q2 2026 report and presentation are attached and available at ir.morrowbank.com.

CEO Øyvind Oanes and CFO Eirik Holtedahl will present the Bank's results at 10:00 CEST today, 13 August.

To participate via the webcast, please click on the link below:

https://youtube.com/live/_rmyTHt7Jvc?feature=share

The presentation will be given in English and viewers are invited to ask questions in the live chat.

Footnote 1: H1 2026 and Q2 2026 figures are for Morrow Bank AB. All references to Q2 2025 and H1 2025 are for the Norwegian entity Morrow Bank ASA, as the bank redomiciled to Sweden at the beginning of 2026, and are converted from NOK to SEK based on Sveriges Riksbank's published exchange rates. Combined figures for Morrow Bank ASA and MedMera Bank AB based on 2025 figures are presented for illustrative purposes only and are unaudited.

Contact

Eirik Holtedahl, CFO Tel: +47 96 91 22 91

Email: ir@morrowbank.com

About Morrow Bank Morrow Bank is a Nordic consumer finance bank offering digital and flexible financing solutions to creditworthy individuals in Norway, Sweden and Finland.

The bank offers consumer loans, credit cards and high-yield deposit accounts, supported by a modern and scalable banking platform.

This information is information that Morrow Bank is obliged to make public pursuant to the EU Market Abuse Regulation, Securities Markets Act, and the Norwegian Securities Trading Act Section 5-12. The information was submitted for publication, at 2026-08-13 05:00 CEST.