ABG Sundal Collier (ABG) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenues reached NOK 510m, up 35% year-over-year, with operating profit up 132% to NOK 118 million and diluted EPS at NOK 0.16, up 129%.

• Over 40 transactions completed in Q2, with all business lines and geographies contributing to growth.

• Strong demand in Debt Capital Markets and signs of recovery in Equity Capital Markets, with advisory roles in two of three main Nordic IPOs.

• Private banking initiative progressing as planned, with new products and services expected later in the year.

• Mandate backlog and transaction pipeline grew, showing good diversity and limited dependence on IPO market conditions.

Financial highlights

• Q2 net profit was NOK 88m, up from NOK 39m in Q2 2023; H1 net profit was NOK 144m, up from NOK 104m.

• Q2 operating profit was NOK 120m (Q2 2023: NOK 56m); H1 operating profit was NOK 192m (H1 2023: NOK 144m).

• Revenues increased by 35% in Q2 year-over-year and by 13% in the first half of 2024.

• EPS increased from 7 to 16 øre in Q2 year-over-year, and up 42% from 19 to 27 øre in the first half.

• Q2 operating margin improved to 24% from 15% in Q2 2023; H1 operating margin was 21%.

Outlook and guidance

• Improving ECM market and growing mandate backlog position the firm for continued strong earnings in coming quarters.

• Gradual improvement in equity capital markets expected, with a more significant IPO recovery likely in 2025.

• Positive macro signals, including peaking interest rates and declining inflation, are boosting investor confidence.

• Expectation of continued strong M&A performance, though with inherent quarterly volatility.

• New business initiatives are progressing, with new products and services expected to launch later in the year.