Instabank-Withdrawing Finnish banking application-06/19/2026

Research evidence excerpt

Instabank-Withdrawing Finnish banking application-06/19/2026

Instabank

NEWSFLASH | 19 JUN 2026

Withdrawing Finnish banking application

Following Wednesday's NFSA decision to lower its capital requirements, Instabank (INSTA) this morning announced it will

withdraw its Finnish banking application and remain a Norwegian bank. INSTA's Pillar 2 Requirement was lowered to 3.3%

from 4.8% and its Pillar 2 Guidance to 1.5% from 2.0%, bringing its CET1 requirement (incl. P2G) down to 14.5% from 15.8%.

Given the communication in the Q1 report/call, we believe this is expected as the gap in CET1 requirements has narrowed

so much that such a move is hard to justify economically (as we noted in our estimate update). Our current estimates are

based on Norwegian capital requirements. The bank targets NOK 3.0-3.5bn of lending growth for 2026E, above our current

NOK 2.7bn est. (gross), and we estimate the bank to be sufficiently funded to grow that (while retaining a buffer).

Consequently, we do not expect this to move our estimates. In sum, we consider the net effect of lower capital requirements

in Norway and no redomiciliation to Finland positive for INSTA (limited potential CET1 gain, less stress on organization and

risk of double cost). We currently have BUY TP NOK 4.6 on INSTA.

Peer table

ShareShare TargetTarget P/EP/E P/BP/B ROEROE DividendDividend yieldyield

ConsumerConsumer financefinance TickerTicker CurrencyCurrency priceprice priceprice 2026E2026E 2027E2027E 2028E2028E 2026E2026E 2027E2027E 2028E2028E 2026E2026E 2027E2027E 2028E2028E 2026E2026E 2027E2027E 2028E2028E

Noba Bank Group NOBA SEK 81.2 110 9.8x 8.2x 7.0x 1.54x 1.41x 1.30x 16.4 % 18.5 % 20.0 % 6.2 % 8.3 % 9.9 %

Morrow Bank MORROW " 11.8 18.0 9.7x 6.8x 5.6x 1.05x 0.96x 0.87x 12.4 % 14.9 % 16.4 % 5.1 % 7.6 % 11.4 %