Lån & Spar Bank (LASP) Q4 2023 earnings summary

Executive summary

• 2023 earnings improved sharply as higher rates, customer growth and increased lending and deposits lifted core income; loan losses remained low.

• Net profit was DKK 473.0m, DKK 270.0m above 2022; results exceeded the initial full-year outlook.

Financial highlights

• Net interest and fee income rose 36.5% YoY to DKK 1,412.5m; net interest income increased DKK 448.5m, while fees and commissions fell DKK 60.8m.

• Core earnings before impairment increased DKK 288.1m to DKK 668.1m; impairment charges were DKK 68.4m, or 0.3% of loans and guarantees.

• Profit before tax was DKK 628.0m; net profit was DKK 473.0m and EPS DKK 137.0.

• Personnel and administrative expenses rose 9.2% to DKK 762.0m; portfolio result was a DKK 28.3m gain versus a DKK 61.0m loss in 2022.

Outlook and guidance

• FY2024 net profit guidance is DKK 350–450m; lending growth is expected to be lower than in 2023, while customer growth and expansion in business volumes are expected to continue.

• 2024 impairment guidance is 0.3–0.4% of loans and guarantees; costs are expected to rise faster than wages and prices as staffing and IT operating and development expenses increase.

• Guidance assumes Danish and Swedish economic growth near 2023 levels; interest rates, inflation, geopolitics and rate-path uncertainty remain key assumptions and risks.

• A smaller positive portfolio result is expected for 2024; uncertainty around interest-rate developments makes the outlook uncertain.