Alisa Pankki (ALISA) Q2 2024 earnings summary

Executive summary

• Completed combination with PURO Finance in May 2024, strengthening digital SME banking and profitability through synergies and partnerships.

• Profit before non-recurring items and taxes was EUR -1.0 million (0.5), and profit before taxes was EUR -2.0 million (0.4), impacted by non-recurring combination costs.

• Loan portfolio grew 11% to EUR 192.6 million, and deposits increased 89% to EUR 508.5 million, mainly due to the PURO Finance combination.

• Cost-saving program implemented to realize merger synergies; cost-income ratio rose to 84% (68%).

• Number of active customers increased to 68,600 (57,500), with customer satisfaction at a Net Promoter Score of 46.

Financial highlights

• Net interest income was EUR 7.2 million (7.4), with higher financing expenses offsetting increased interest income.

• Total operating income was EUR 7.7 million (8.4), and total operating expenses rose to EUR 6.4 million (5.7), mainly due to acquisition costs.

• Realized and expected credit losses increased to EUR 3.2 million (2.2), with loan losses at 3.4% of the portfolio.

• Return on equity (ROE) was -13.0% (2.6%), and earnings per share (EPS) was EUR -0.02 (0.00).

• Balance sheet total reached EUR 565.4 million (312.6).

Outlook and guidance

• Profitability expected to improve in H2 2024 as merger synergies are realized and cost-saving measures take effect.

• Full-year 2024 profit before one-off items and taxes estimated to be slightly profitable (EUR 0.5–1.5 million).

• Target for total capital ratio remains at 16%.

• Medium-term financial goals and strategy to be updated by end of September.