Haugesund Sparebank (HGSB) Q3 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.

• Operating costs increased due to high activity related to stock exchange listing, alliance change, and merger processes in 2024.

• Net profit after tax for the first nine months was NOK 132.96 million, up from NOK 126.73 million year-over-year.

• Return on equity was 8.92%, slightly down from 9.20% last year.

Financial highlights

• Pre-tax profit for the first nine months was NOK 168.85 million, up from NOK 163.86 million year-over-year.

• Net interest income increased to NOK 264.01 million (NOK 242.16 million last year), representing 2.29% of average total assets.

• Net commission income was NOK 31.04 million, stable year-over-year.

• Net income from financial investments rose to NOK 27.96 million from NOK 17.49 million, mainly due to dividends from Eika and higher securities returns.

• Total operating costs rose to NOK 143.32 million (NOK 113.37 million last year), mainly due to merger, listing, and alliance activities.

• Loan losses and write-downs were NOK 11.79 million, down from NOK 13.95 million year-over-year.

Outlook and guidance

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

• The merger process with Tysnes Sparebank is ongoing, with completion expected in Q2 or Q3 2025.