Romerike Sparebank (ROMER) Q2 2024 earnings summary

Executive summary

• Pre-tax profit for H1 2024 reached NOK 138.5 million, up from NOK 106.2 million year-over-year.

• Return on equity (ROE) annualized, adjusted for hybrid capital, was 10.0% versus 8.7% last year.

• Cost/income ratio improved to 43.2% (last year: 47.2%), reflecting normalized operating costs.

• Loan growth to retail customers accelerated, while growth to corporate customers slowed.

• The bank remains well-capitalized, supporting further lending growth.

Financial highlights

• Net interest income for H1 2024 was NOK 193.5 million, up from NOK 165.9 million year-over-year.

• Net profit after tax for H1 2024 was NOK 108.8 million, up from NOK 86.3 million year-over-year.

• Earnings per equity certificate (EC) for H1 2024 was NOK 6.55, up from NOK 5.54.

• Total assets at quarter-end were NOK 16.96 billion, up NOK 0.53 billion over 12 months.

• Gross loans including Eika Boligkreditt reached NOK 18.17 billion, up 6.1% year-over-year.

Outlook and guidance

• The policy rate is expected to remain unchanged for some time.

• Lower activity in construction and real estate may increase bankruptcies in parts of the business sector.

• The bank aims for continued market share growth and lending expansion in 2024.

• Operational efficiency remains a focus to strengthen competitiveness.

• The bank continues to prioritize sustainable growth and close customer relationships.