Alisa Pankki Oyj: Alisa Bank's renewed strategy and medium-term financial targets

Alisa Bank has shifted its business focus towards SME customers during 2024 and has completed a significant merger with PURO Finance Ltd, a fintech company specializing in invoice financing for SMEs.  As a result of the merger, a pioneer in digital banking and financial services for SMEs has emerged in the market. Alisa Bank's Board of Directors has approved a renewed strategy and medium-term financial targets for the company.

We produce seamless banking services in digital channels

At the core of Alisa Bank's strategy is bringing seamless banking services through partnerships to the everyday digital channels where customers carry out their daily business.  Our target customers are small businesses, deposit customers and partners. Strong existing partnerships lay the foundation and near-term focus for our Banking-as-a-Service (BaaS) growth strategy. Alisa Bank's technological capabilities enable a wider utilization of transformative banking services in the future. Alisa Bank also aims to grow internationally with its partners.

The cornerstones of Alisa Bank's BaaS strategy are

1. Capital efficient and profitable growth: Our core products are Invoice financing for SME customers and deposit accounts for deposit customers, in addition, we offer focused banking services for both SME and private customers
2. Responding to customer needs: Seamless digital banking services for SME customers, deposit customers and partners. We make invoice financing available to all SME customers
3. Technological capability: Digital service model, automated processes and a scalable, modern IT system
4. Partnership: Efficient customer acquisition through service integrations in selected markets across Europe.

The strategy enables profitable organic growth among SME customers, especially in the invoice financing business. We are also actively exploring opportunities for inorganic growth in the SME customer segment.

Medium-term financial targets for 2024-2027

Alisa Bank's Board of Directors has approved the following medium-term (2024-2027) targets for the company in line with its strategy:

• Income growth:  An average annual income growth of 20 percent during the strategy period
• Profitability: Over 15 percent return on equity by the end of 2027
• Operational efficiency: A cost-to-income ratio of less than 50 percent by the end of 2027
• Capital adequacy: 16% solvency ratio throughout the strategy period

The medium-term financial targets presented above replace the financial targets and estimates for the financial development of the combined entity that Alisa Bank announced in the prospectus published on May 16, 2024.

Alisa Bank stated in the prospectus (May 16, 2024) and in the 2024 half-year report (August 9, 2024) that the merger with PURO Finance Ltd and the shift in business focus towards SME financing, especially invoice financing, will improve the company's profitability and enhance the efficiency of capital allocation.

In the renewed strategy, Alisa Bank focuses on capital-efficient and profitable growth, as well as business development within its solvency targets.

Alisa Bank estimates that the company does not require new capital for business growth in line with its medium-term financial targets.

ALISA BANK PLC
Board of Directors

Further information:

Juha Saari, Interim CEO, Alisa Bank Plc, juha.saari@alisapankki.fi,tel. +358 40 672 0595

Alisa Bank in Brief

Alisa (https://www.alisabank.com/)Bank Plc (https://www.alisabank.com/) is a financial technology company that provides seamless banking services through digital channels. We serve SME customers, deposit customers seeking competitive interest returns on their deposits and partners. Together with our partners, we offer integrated banking services in the channels where customers carry out their daily business. Alisa Bank Plc's shares are listed on the main list of Nasdaq Helsinki (ALISA), and it holds a license granted by the Financial Supervisory Authority. www.alisapankki.fi