OK-Q8 (OKQ8) Q2 2024 earnings summary

Executive summary

• Net interest income and fee income improved year-over-year, driven by lower funding needs and higher factoring revenues, resulting in a stronger overall result despite increased credit losses.

• Lending and deposits to the public both decreased during the period, reflecting a cautious market environment.

• The macroeconomic situation stabilized compared to 2023, but global political tensions and high interest rates persist.

Financial highlights

• Net interest income for H1 2024 was 8,454 Tkr, up from -178 Tkr in H1 2023.

• Net profit for the period reached 13,621 Tkr, a significant increase from 1,108 Tkr year-over-year.

• Credit losses increased to -5,251 Tkr from -2,674 Tkr in H1 2023.

• Total assets at June 30, 2024, were 2,779,819 Tkr, down from 2,906,119 Tkr a year earlier.

• Deposits from the public decreased by 3.55% to 1,762,164 Tkr; lending to the public fell by 1.98% to 2,690,533 Tkr.

Outlook and guidance

• The bank continues to monitor credit risk closely, anticipating a higher probability of customer defaults due to the macroeconomic environment.

• Swedish labor market remains resilient but risk of higher unemployment persists.