Morrow Bank agreed to acquire a SEK ~1.6 billion of consumer loans from Lunar Bank.
This transaction is in line with the Morrow Bank´s communicated strategy to pursue structural opportunities to drive growth and accelerate value creation.
Due to a high degree of automation and self-service across Morrow Bank’s processes, the increased loan balance growth will have no impact on the Bank’s cost level. Preliminary estimates indicate that the transaction with Lunar should have a positive effect on Morrow Bank’s profitability from 2024 and onwards, demonstrating the scalability of the Bank.
“Our cost-efficiency and scalability has enabled us to look at inorganic growth opportunities to improve returns further, as demonstrated by the two recent loan acquisition agreements of Swedish portfolios. We will continue pursuing relevant structural opportunities to leverage the scalability of our platform and accelerate value creation beyond the organic,” said CEO Øyvind Oanes.
Morrow Bank’s Swedish gross loan book will, after the acquisition, be around NOK 5.3 billion, accounting for ~35% of the Bank’s overall loan volume.
