Haugesund Sparebank (HGSB) Q4 2024 earnings summary

Executive summary

• Delivered pre-tax profit of TNOK 199,893 for 2024, slightly down from TNOK 203,972 last year, with strong core operations and continued robust loan growth.

• Net profit after tax reached TNOK 158,575, up from TNOK 154,820, reflecting solid post-tax performance.

• Total comprehensive income was TNOK 177,166, marginally higher than last year.

• High activity level due to stock exchange listing, alliance switch, and merger preparations increased operating costs.

• Merger process with Tysnes Sparebank ongoing, with completion expected in Q2 or Q3 2025.

Financial highlights

• Net interest income for 2024 was TNOK 355,121, up from TNOK 332,145 year-over-year, driven by higher loan volumes and stable margins.

• Net commission and other operating income totaled TNOK 72,270, up from TNOK 62,563.

• Net income from financial investments was TNOK 30,020, up from TNOK 20,161, mainly due to Eika dividend.

• Operating expenses rose to TNOK 208,844 from TNOK 168,096, mainly due to increased activity and digitalization.

• Loan loss provisions and write-downs decreased to TNOK 19,224 from TNOK 22,640.

Outlook and guidance

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

• Merger with Tysnes Sparebank expected to complete in Q2 or Q3 2025, with ongoing negotiations on exchange ratio.