Norion Bank (NORION) Q4 2023 earnings summary

Executive summary

• FY 2023 total income rose 14% to SEK 3,648m and net profit rose to SEK 1,294m; Q4 operating profit and net profit declined YoY.

• Year-end loan book reached SEK 45,470m, up 10% YoY; Real Estate represented 47% of loans.

Financial highlights

• Q4 total income was SEK 934m (+1% YoY); net interest income was SEK 864m (+3%), and net gains and losses on financial items were SEK -11m versus SEK 6m.

• Q4 operating profit was SEK 414m versus SEK 437m; net profit was SEK 326m versus SEK 346m, and EPS was SEK 1.51 versus SEK 1.62.

• FY operating profit rose to SEK 1,636m from SEK 1,442m; net profit was SEK 1,294m versus SEK 1,141m, and EPS was SEK 6.02 versus SEK 5.34.

Outlook and guidance

• Targets adopted 6 February 2024: sustainable ROE above 15% over time and each capital ratio 200–400 bps above regulatory requirements.

• Selective loan growth at risk-adjusted returns; prioritize profitability, sound risk profiles and credit quality over volume growth.

• Dividend policy targets distribution of potential surplus capital against capital adequacy targets, subject to outlook and capital planning.