Norion Bank (NORION) Q4 2024 earnings summary

Executive summary

• Loan book grew 11% year-over-year to SEK 50,286m in 2024, with Q4 total income at SEK 922m (down 1% YoY) and operating profit at SEK 383m (down 7.5% YoY); full-year net profit was SEK 1,265m, down 2%.

• Return on equity was 13.5% in Q4 and 14.8% for 2024, both down year-over-year; cost/income ratio increased to 32.8% in Q4 and 29.1% for the year.

• Announced acquisition of DNB Sweden's credit card portfolio, expected to close in Q2 2025 and increase credit card clients to 100,000.

• Intention to repurchase shares up to SEK 500m during 2025, subject to AGM and regulatory approval.

Financial highlights

• Net interest margin (NIM) was 6.7% in Q4 2024 (down 1.0 percentage point YoY) and 6.9% for the year (down from 7.6%).

• Total capital ratio stood at 16.9% and CET1 ratio at 15.8% as of Q4 2024.

• Liquidity coverage ratio (LCR) was 470% in Q4 and 320% for the year; NSFR was 143% in Q4 and 112% for the year.

• Credit losses decreased to 1.9% in Q4 2024 from 2.1% in Q3 2024; full-year credit loss level improved to 2.1% (from 2.5%).

• EPS for Q4 2024 was SEK 1.46 (down from SEK 1.59 YoY); full-year EPS was SEK 6.09 (up 1%).

Outlook and guidance

• Improved customer sentiment and lower rate trajectory expected to support continued growth and profitable lending.

• Share buyback program of up to SEK 500m planned for 2025, subject to approvals; no dividend proposed for 2024.

• Acquisition of DNB Sweden's credit card portfolio anticipated to close in Q2 2025 and contribute positively to profitability.

• Management expects further interest rate reductions in 2025 if current inflation trends persist.