ABG Sundal Collier (ABG) Q3 2024 earnings summary

Executive summary

• Achieved one of the strongest third quarters ever, with Q3 revenues up 10% year-over-year to NOK 392m and diluted EPS up 29% to NOK 0.09, coinciding with the firm's 40th anniversary.

• Year-to-date revenues rose 12% to NOK 1,305m, and YTD diluted EPS increased 35% to NOK 0.35.

• Robust investment banking activity and a return to growth in brokerage and research operations, with all sales offices contributing.

• Strategic focus on profitable growth, market share expansion, and efficiency through Nordic integration and technology investments.

• Closed investment banking transactions at a high frequency, especially in September, benefiting from a diversified product offering.

Financial highlights

• Q3 total revenues were NOK 392.3m, up from NOK 356.4m; YTD total revenues were NOK 1,305.2m, up from NOK 1,161.3m.

• Q3 net profit was NOK 44.9m, up from NOK 35.3m; YTD net profit reached NOK 189.3m, up from NOK 139.3m.

• Q3 operating profit was NOK 63.7m, up from NOK 51.5m; YTD operating profit was NOK 255.4m, up from NOK 195.7m.

• Operating margin increased by three percentage points to 20% for the first nine months; Q3 operating margin was 16%.

• Earnings per share rose 35% for the first nine months (NOK 0.35 vs. NOK 0.26) and 29% in the quarter (NOK 0.09 vs. NOK 0.07) year-over-year.

Outlook and guidance

• Expectation of increased IPO activity towards year-end and into next year due to pent-up demand.

• Focus on leveraging the well-invested platform to scale up, grow profitability, and broaden the product offering, including new ventures like private banking.

• Targeting a minimum top-three position in all key products and segments, 20%+ increase in revenue per head, and operating margin of at least 25% in a mid-cycle environment.

• Management targets continued profitable growth by increasing market share, broadening product offerings, and launching new ventures.

• Focus on leveraging brand and infrastructure to improve efficiency and operating margins.