NOBA Bank Group (NOBA) Q3 2024 earnings summary

Executive summary

• Loan portfolio grew to SEK 121.2bn, up 12% year-over-year, with operating income up 14% to SEK 2,521m in Q3 2024 and 15% to SEK 7,195m for the nine months.

• Net profit for Q3 was SEK 596m, up 92% year-over-year; earnings per share reached SEK 1.1.

• Adjusted core operating profit in Q3 rose 103% to SEK 970m, the highest ever for the group.

• Return on equity excluding intangibles and Tier 1 capital (ROTE) was 18.5% in Q3, with adjusted core ROTE at 22.8%.

• CEO highlights early benefits from falling policy rates and rising loan margins, expecting continued improvement in net interest margin.

Financial highlights

• Operating profit for Q3 increased 116% year-over-year to SEK 807m; for the nine months, up 67% to SEK 2,108m.

• Net interest margin held steady at 7.9% in Q3; cost-to-income ratio improved to 27.6%, and adjusted C/I ratio to 23.3%.

• Net credit loss level decreased to 3.3% in Q3 (from 4.2%); for the nine months, 3.5% (from 3.8%).

• Lending to the public reached SEK 121.2bn, deposits from the public SEK 107.8bn.

• Average number of full-time employees rose to 630 (from 584).

Outlook and guidance

• Management targets lending growth above 10% and an adjusted C/I ratio below 20% in the medium term.

• Ambition to achieve a Core ROTE of approximately 30% and maintain a CET1 capital level of 13-15%.

• Expansion opportunities identified in secured lending and SME products in new Nordic markets.

• Regulatory changes in Sweden are not expected to significantly impact future development.