Interim report as of 30 June 2018 (unaudited) Interim report as of 30 June 2018

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1 Interim report as of 30 June

Interim report as of 30 June 2018 (unaudited) First half-year 2018 Successful launch of consumer loans and savings account for private customers Distribution network of 5 loan agents and a direct web

2 Interim report as of 30 June 2018 (unaudited) First half-year 2018 Successful launch of consumer loans and savings account for private customers Distribution network of 5 loan agents and a direct web application Development and calibration of models for underwriting and operational processes Evaluation and decision of technology platform for ecommerce Finance Financial highlights Loans to customers MNOK 40.4 Deposits from customers MNOK 38.5 Net interest income MNOK 0.65 Profit after tax MNOK 7.3 Loan loss allowances MNOK 0.48 Equity MNOK 103.7, CET 1 ratio 92.7 % 2

3 DIRECTORS REPORT About Optin Bank ASA Optin Bank ASA is a newly established niche bank offering consumer loans, savings accounts and ecommerce Financing. Optin Bank ASA was converted from Optin Prosjekt AS on August 22 nd The company was granted a banking license by the Norwegian Financial Supervisory Authority on September 8 th Optin Bank ASA has mainly Norwegian shareholders. The bank is registered on NOTC under the ticker OPTIN. The banks business address is Munkedamsveien 53B, Oslo. Optin Bank is a member of The Norwegian Banks Guarantee Fund and all retail deposits up to two million kroner are secured by the deposit guarantee. Development in the first half-year 2018 After the launch in Q we have focused on process improvement and optimisation to ensure a good customer experience in addition to ensuring compliance of internal and external policies and guidelines. This will be a continuous process for the bank supported by increased focus on technological development of existing and new processes and products. We launched consumer loans in mid-march and in April we launched savings accounts for private customers. The main channel for consumer loan distribution is through loan agents. By the end of the first half of 2018 we had a distribution network of 5 agents and have commenced development of customer recruitment through digital channels. In addition, we have experienced growing loan demand through the direct web application at We comply with the FSA s guidelines on distribution and marketing of consumer loans and offer loans with maturity between 1 and 5 years and interest rates based on the individual assessment of each customer. The loan maturity can be extended to 15 years when refinancing existing loans or credit card debt. The application process is digital with an efficient and swift case handling from application to the disbursement of the loan. Our savings account provides savers favourable interest rate, smooth application process and a simple management of the customers savings without fees or withdrawal limits. The growth in lending volumes has been in line with our expectations and net loans to customers amounted to MNOK 40.4 by the end of the first half of We are focusing on calibrating the models for credit risk for customers and operational processes to ensure sustainable and robust growth. Deposits from customers amounted to MNOK 38.5 MNOK by the end of the first half of The total assets grew to MNOK 148.9, and liquid assets in bank deposits and debt instruments were at MNOK Profit after tax for the first half-year 2018 was MNOK 7.3, with net interest income of MNOK 0.8 and operating expenses of MNOK There are no non-performing loans in the portfolio at 30 June All loans to customers are assessed for impairment in accordance with IFRS 9, and provisions for expected losses are recorded when the loans are disbursed. Loan loss provisions at 30 June 2018 were MNOK 0.5. Outlook Robust underwriting and credit processes will ensure healthy and sustainable growth, and we are constantly adjusting our models to provide transparent and competitively-priced products to our customers. We are continuing to develop the distribution network with four new loan agents during the fall. We are meeting the customers expectations of digital banking by participating in «Digital Excellence Kickstart Program» hosted by Google, and we will work closely with the Google Global Team to shape our interactions with consumers through all Google channels, e.g. YouTube and Google Adwords. ecommerce Finance is an important part of the strategy and growth ambitions for Optin Bank. We have now chosen the technological platform for ecommerce Finance and will progress with the development and implementation of the platform in the third quarter of Our business priorities going forward will be to strengthen our sales organisation, enhance technological capabilities to ensure development of proprietary solutions for ecommerce Finance, and continue to establish relations with strategical partners with the same long-term focus as Optin Bank. Market changes and regulatory conditions will be important factors for the development of operations, our strategy and ensuring profitable growth in the future. Oslo, 31 July 2018 The Board of Directors Optin Bank ASA 3

4 INCOME STATEMENT Note 2Q 2018 Jan-Jun Q 2017 Jan - Jun 2017 Interest income Interest expense (106) (119) (1) (1) (1) Net interest income (1) (1) 143 Commission and fee income Commission and fee expense (106) (121) Net commission and fee expense 7 (101) (116) Total income (1) (1) 143 Salaries and administrative expenses 8 (3 400) (7 030) (860) (860) (3 748) Depreciation on fixed and intangible assets (484) (616) 0 0 (17) Other operating expenses 9 (3 369) (6 056) (49) (51) (8 767) Total operating expenses before impairment losses (7 254) (13 702) (909) (911) (12 532) Impairment losses on loans to customers (418) (482) Profit before tax (7 126) (13 536) (909) (912) (12 389) Income tax expense Profit for the year (2 475) (7 282) (909) (912) (9 204) 2017 STATEMENT OF COMPREHENSIVE INCOME Note 2Q 2018 Jan-Jun Q 2017 Jan - Jun 2017 Profit for the year (2 475) (7 282) (909) (912) (9 204) Other comprehensive income Total comprehensive income (2 475) (7 282) (909) (912) (9 204)

5 STATEMENT OF FINANCIAL POSITION kroner Note 30 June June December 2017 ASSETS Loans and advances to credit institutions 2, Loans and advances to customers 3, Debt instruments Intangible assets Deferred tax assets Fixed assets Other assets TOTAL ASSETS LIABILTIEIS Deposits from customers Other liabilities TOTAL LIABILITIES EQUITY Share capital Share premium Total paid-in equity capital Other capital (9 554) (350) (9 554) Total comprehensive income (7 282) (912) Total other equity (16 836) (1 261) (9 554) TOTAL EQUITY TOTAL LIABILITIES AND EQUITY

6 STATEMENT OF CHANGES IN EQUITY 1 January - 30 June 2018 Share capital Share premium Other equity Total equity Equity at (9 554) Total comprehensive income 0 0 (7 282) (7 282) Equity at (16 836) January - 30 June 2017 Share capital Share premium Other equity Total equity Equity at (350) (25) Issue of share capital (net of transaction costs) Total comprehensive income 0 0 (912) (912) Equity at (1 261) January- 31 December 2017 Share capital Share premium Other equity Total equity Equity at (350) (25) Issue of share capital (net of transaction costs) Total comprehensive income 0 0 (9 204) (9 204) Equity at (9 554)

7 STATEMENT OF CASH FLOWS 30 June June December 2017 Net payments on loans to customers (40 440) 0 0 Net receipts on deposits from customers Interest received Interest paid (199) (1) (1) Net (increase)/decrease in debt securities (10 000) 0 0 Net payments on commissions and fees (1 568) 0 0 Payments to operations (12 403) (726) (12 891) Net (increase)/decrease in other assets 0 3 (763) Net increase/(decrease) in other liabilities Net cash flows from operating activities (25 670) (9 535) Purchase of fixed and intangible assets (9 341) (3 366) (4 100) Net cash flows from investing activities (9 341) (3 366) (4 100) Proceeds from issuance of share capital Net cash flows from financing activities Net cash flows (35 011) Cash and cash equivalents at 1 January Net increase/(decrease) in cash and cash equivalents (35 011) Cash and cash equivalents at end of period

8 NOTES TO THE FINANCIAL STATEMENTS Note 1 Accounting principles The financial statements for Optin Bank ASA («the Company») are prepared in accordance with the International Financial Reporting Standards (IFRS) as adopted by the EU. The financial statements as of 30 June 2018 follow IAS 34 Interim reporting and the same accounting principles as described in the annual report for 2017, except from IFRS 9 Financial instruments that has been adopted from 1 January The company's functional and presentation currency is Norwegian kroner (NOK) Implementation of IFRS 9 Financial instruments from 1 January 2018 did not have any effect on the company s equity or income statement. Classification and measurement All financial instruments are assessed based on a combination of the company s business model and the instruments contractual cash flow characteristics. A financial asset is measured at amortised cost if it is held with the objective to collect contractual cash flows, and the cash flows from the asset are solely payments of principal and interest on the principal amount outstanding. Financial assets are classified and measured at fair value through other comprehensive income if they are held in a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets. Any financial assets that are not held in one of the two business models mentioned are measured at fair value through profit or loss. The accounting for financial liabilities follows the same requirements of IAS 39, except for the treatment of gains or losses arising from an entity s own credit risk relating to liabilities designated at FVPL. Such movements are presented in OCI with no subsequent reclassification to the income statement. Impairment of financial assets Financial assets measured at amortised cost are assessed for impairment already at recognition. The impairment assessment distinguishes between three stages. All performing loans are assessed in Stage 1 at recognition, and the loan loss allowance is calculated based on 12-month expected credit loss. When a loan shows a significant increase in credit risk, it is assessed in Stage 2 with an allowance for the lifetime expected credit loss. Impaired loans are assessed in Stage 3 with an allowance for the lifetime expected credit loss. The impairment assessment in Stage 1 and 2 is performed on a group of loans with similar features. Financial assets are included in Stage 3 when there is objective evidence that the loan is credit impaired and the impairment assessment is performed on an individual basis. 8

9 Note 2 Loans and advances to credit institutions 30 June June December 2017 Loans and advances to credit institutions without agreed period of notice Total loans and advances to credit institutions Note 3 Loans to customers 30 June June December 2017 Gross loans to customers Loan loss allowances Stage 1 (434) 0 0 Loan loss allowances Stage 2 (48) 0 0 Net loans to customers Reconciliation of gross loans to customers Stage 1 Stage 2 Stage 3 Total Gross loans to customers at Transfers between stages Originated during the period Gross loans to customers at Reconciliation of loan loss allowances Stage 1 Stage 2 Stage 3 Total Loan loss allowance sat Transfers between stages Loan loss allowances on loans originated during the period (434) (48) 0 (482) Loan loss allowances at (434) (48) 0 (482) Geographic distribution of loans to customers 30 June June December 2017 Oslo Akershus Østfold Hedmark Oppland Buskerud Vestfold Telemark Rogaland Vest-Agder Aust-Agder Hordaland Møre og Romsdal Trøndelag Nordland Troms Finnmark Gross loans to customers

10 Gross loans to customers by past due status 30 June June December 2017 Not past due Past due 1-30 days Past due days Past due days Past due over 90 days Gross loans to customers Note 4 Classification of financial instruments 30 June June December 2017 Financial assets at amortised cost Loans and advances to credit institutions Loans to customers Financial assets at fair value through profit or loss Debt instruments Financial liabilities at amortised cost Deposits from customers Note 5 Regulatory capital 30 June 2018 Share capital Share premium Other equity (9 554) (-) Intangible assets (12 490) Common Equity Tier 1 capital Total regulatory capital Credit risk Institutions Retail Other Total credit risk Market risk 0 Operational risk Total risk-weighted assets Common Equity Tier 1 capital ratio 92.7% Tier 1 capital ratio 92.7% Total capital ratio 92.7% Liquidity Coverage Ratio - LCR % Leverage Ratio LR % 1 The Liquidity Coverage Ratio (LCR) measures high-quality liquid assets held by Optin Bank to meet its short-term obligations. The CRD IV-regulation 8 requires a 100 per cent LCR, which means an amount of highly liquid assets that is equal or greater than the net cash outflow over a 30-day stress period. 2 The Leverage Ratio (LR) measures Optin Bank s Tier 1 capital relative to the non-risk-weighted exposure of all assets and off-balance sheet items. The CRD IV-regulation 5 requires a 3 per cent leverage ratio, and an additional buffer of 2 per cent. 10

11 Note 6 Net interest income Interest income from loans and advances to credit institutions 2Q 2018 Jan-Jun Q 2017 Jan - Jun Interest income from loans to customers Total interest income Interest expenses (106) (119) (1) (1) (1) Total interest expenses (106) (119) (1) (1) (1) Net interest income (1) (1) 143 Note 7 Net commission and fee expenses 2Q 2018 Jan-Jun Q 2017 Jan - Jun Commission and fee income Commissions to loan agents (79) (87) Fees on banking services (27) (34) Net commission and fee expenses (101) (116) Note 8 Salaries and administrative expenses 2Q 2018 Jan-Jun Q 2017 Jan - Jun Salaries Employer contribution Pension costs Other personnel expenses Total salaries and administrative expenses Note 9 Other operating expenses 2Q 2018 Jan-Jun Q 2017 Jan - Jun IT expenses Property rental Marketing expenses Other operating expenses Total other operating expenses

Interim report Fourth quarter 2017

Interim report Fourth quarter 2017 Highlights - Continued strong growth in loans and profit o Net loans increased by NOK 515 million in Q4 2017 (+10 %) and NOK 2 139 million year over year (+64 %) o Profit