Aprila Bank (APRILA) Q4 2024 earnings summary

Executive summary

• Achieved 18% year-on-year gross lending growth to NOK 1,072 million, with a 4% sequential decline due to NPL divestment; adjusted, lending grew 5% QoQ.

• Total income increased 11% year-on-year to NOK 53 million, but declined 4% sequentially; adjusted for one-offs, Q4 income was NOK 55.3 million, up 16% year-on-year.

• Pre-tax profit for Q4 was NOK 9 million (NOK 11.1 million adjusted); profit after tax for 2024 was NOK 37 million, up from NOK 23 million in 2023.

• CET1 requirement reduced from 19.4% to 16.7%, providing NOK 25 million in capital relief.

• Focus for 2025: accelerate growth, improve offering to larger customers, streamline sales and loan origination, and optimize credit models.

Financial highlights

• Gross loans grew to NOK 1,072 million from NOK 909 million YoY; net interest income reached NOK 46.3 million in Q4.

• Loan losses totaled NOK 11.7 million in Q4, with annualized loan losses at 4.3% of gross loans.

• Cost/income ratio was 61% in Q4, 54.58% for 2024, and improved to 55% LTM.

• Return on equity was 12.2% in Q4 and 13.9% for 2024; adjusted Q4 ROE was 15.1%.

• CET1 ratio at year-end was 31.7%, with total equity at NOK 297 million.

Outlook and guidance

• 2025 guidance: total income run rate NOK 260–270 million, cost-income ratio 52%, and 6,000 customer accounts by year-end.

• Expect lending yield to trend down as focus shifts to larger, lower-risk customers.

• January 2025 saw record gross lending growth of NOK 55 million.

• Norges Bank held the key policy rate at 4.5%; a rate cut is expected in March 2025, which could lower funding costs and improve profitability.

• Committed to further improving profitability and return on equity in 2025.