Lån & Spar Bank (LASP) Q3 2024 earnings summary

Executive summary

• Net interest and fee income rose 11.8% year-over-year to DKK 1,143.0 million, driven by higher interest margins and growth in lending and deposits.

• Profit before tax reached DKK 514.7 million, up from DKK 460.3 million, with return on equity before tax at 22.7% p.a.

• Net profit for the period was DKK 384.3 million, or DKK 111 per share, an increase of DKK 37.3 million year-over-year.

• Management considers the period's core earnings and results satisfactory and maintains full-year net profit guidance of DKK 350–450 million.

Financial highlights

• Lending grew by DKK 806.0 million since year-end, reaching DKK 18,175.1 million; deposits increased by DKK 1,267.2 million to DKK 29,947.3 million.

• Operating expenses rose 17.3% year-over-year to DKK 643.6 million, reflecting higher staff numbers and IT costs.

• Impairments on loans were DKK 25.9 million (0.1% of loans and guarantees), with a DKK 27.0 million management overlay for Danish customers reversed in Q2.

• The cost/income ratio was 58%, and the liquidity coverage ratio (LCR) stood at 502.9%.

• Equity increased to DKK 3,179.6 million, up DKK 322.2 million since year-end, mainly due to retained earnings.

Outlook and guidance

• Full-year 2024 net profit after tax is expected in the range of DKK 350–450 million, unchanged from previous guidance.