Haugesund Sparebank (HGSB) Q2 2024 earnings summary

Executive summary

• Solid core operations and continued strong loan growth, with positive development in key banking areas driven by higher net interest income and low loan losses and defaults.

• Pre-tax profit for H1 2024 was NOK 114.3 million, up from NOK 110.5 million year-over-year, mainly due to increased net interest income and higher returns from financial instruments.

• Net profit after tax for H1 2024 was NOK 86.0 million, nearly unchanged from NOK 85.8 million last year.

• Operating costs increased due to high activity related to merger, stock exchange listing, and alliance change.

Financial highlights

• Net interest income for H1 2024 was NOK 172.5 million, up from NOK 156.8 million year-over-year.

• Net commission income was NOK 19.9 million, slightly down from NOK 20.3 million year-over-year.

• Net income from financial investments reached NOK 24.7 million, up from NOK 15.6 million year-over-year.

• Total operating costs for H1 2024 were NOK 95.4 million, up from NOK 70.8 million year-over-year.

• Cost/income ratio (excl. financial instruments) was 44.77% for H1 2024, up from 39.81% year-over-year.

Outlook and guidance

• The merger process with Tysnes Sparebank is proceeding as planned, with legal completion expected in H2 2024.

• The bank is well positioned in terms of market, liquidity, and solidity, with a strong foundation for further development as a local bank.