ABG Sundal Collier (ABG) Q4 2024 earnings summary

Executive summary

• Q4 revenues rose 15% year-over-year to NOK 628m, with full-year revenues up 13% to NOK 1,933m, surpassing 2020 levels.

• Debt Capital Markets (DCM) was the main growth driver, especially in Sweden, with high-yield bond issuance at record levels.

• M&A activity remained solid, with ABGSC ranked #1 in public-to-private transactions by deal count and value, and brokerage revenues stable.

• Investments of NOK 50 million in new business initiatives, primarily private banking, impacted reported profitability.

• Proposed dividend of NOK 0.50 per share, with continued share buy-backs and strong capitalisation.

Financial highlights

• Q4 operating profit reached NOK 152m, up from NOK 130m in Q4 2023.

• Operating margin improved from 19% to 21%, and would have been 24% adjusted for new business investments.

• FY net profit increased to NOK 307m from NOK 237m year-over-year.

• Core operational EPS before new business costs rose 32% year-over-year, from NOK 0.47 to NOK 0.62.

• Cash and cash equivalents at year-end were NOK 788m, up from NOK 526m.

Outlook and guidance

• Robust activity pipeline into 2025, with optimism for increased ECM activity and further top-line improvement.

• Launch of Private Banking operation expected soon, with strong initial client interest.

• Focus on further market share gains and maintaining a balanced, full-service approach.

• Dividend policy remains to distribute excess capital via dividends and buy-backs.