Lea bank ASA reports Q2 and update on the redomiciliation project

Lea bank ASA reported a profit before tax of NOK 23,7 million for Q2 2024. Gross loans amounted to 7,212.8 MNOK. Equity at the end of the quarter was NOK 1,441.8 million.

Highlights of Q2 2024:

- Profit before tax NOK 23,7 million (after tax NOK 19.2 million)

- Net interest income of NOK 138.7 million

- Gross loan portfolio of NOK 7.2 billion

- Cost-income ratio (C/I) of 30,6%

- Book value per share of NOK 14.54

Group consolidated accounts (included Swedish subsidiaries)

Profit before tax for Q2 2024 of NOK 20.8 million, and Profit after tax of NOK 16.3 million. Group financial profits were affected by a one-off effect of approximately NOK 1.6 million related to adjustment to align the subsidiary’s provisioning model to Lea bank’s model. Total assets amounted to NOK 8,625.8 million as of 30.06.2024.

Update on the redomiciliation project

Lea bank applied for a Swedish banking licence 31.01.2024 through its 100% owned subsidiary Lea finans AB. On 11.06.2024 the bank was notified by the Swedish Financial Supervisory Authority that a Swedish banking licence had been granted subject to the following conditions:

• • The license must be activated within 12 months – June 2025
  • There must be a minimum equity of 5 million EUR on activation date
  • The approval is based on the information provided in the application

Lea bank ASA aims to complete the redomiciliation to Sweden through a merger between Lea bank ASA and Lea finans AB (to be renamed Lea Bank AB), with Lea finans AB as the surviving entity. Subsequently, the combined company is planned to be listed on Nasdaq Stockholm.

Tentative timeline on the merger and listing process:

• • End of August the bank will submit application to the Norwegian Financial Supervisory Authority for approval of the merger plan
  • End of September the bank will seek approval of the merger plan from the General meeting
  • End of September the bank will submit application to the Swedish Financial Supervisory Authority for approval of the merger plan
  • Early 2025 Lea Bank AB operating on Swedish banking license (depending on approvals from General meeting and FSAs)

The bank has started the process to change listing from Euronext Growth Oslo to Nasdaq First North Premier Growth Stockholm. Additionally, the bank has started a gradual build-up of new headquarter in Gothenburg and establishment of a Norwegian branch.

Lea Bank ASA will present the results for the 2nd quarter of 2024 on Thursday, August 15th at 10:00 AM. There will also be an update of the ongoing project aiming at changing the domicile of the bank from Norway to Sweden. The presentation will be broadcasted via Microsoft Teams. It is also possible to attend the presentation at the bank's premises at Holbergs gate 21, Oslo. Please RSVP indicating whether you will attend digitally or physically to [email protected]. The Teams link will be sent prior to the presentation.

Contact information:

Oddbjørn Berentsen, CEO

Tel: +47 22 99 14 00

Email: [email protected]