Romerike Sparebank (ROMER) Q3 2024 earnings summary

Executive summary

• Pre-tax profit for the first nine months reached NOK 199.1 million, up from NOK 158.1 million year-over-year.

• Net profit after tax was NOK 154.8 million, with annualized return on equity (ROE) at 9.4%, up from 8.3% last year.

• Cost/income ratio improved to 42.3% (last year: 47.0%), reflecting normalized operating costs and higher net interest income.

• Customer lending grew 7.2% over 12 months, with private lending up 9.3% and marginal growth in corporate lending.

• First green bond issued; NCR awarded an A- rating after quarter-end.

Financial highlights

• Net interest income for the period was NOK 292.8 million, up from NOK 259.1 million year-over-year.

• Operating expenses decreased to NOK 139.9 million from NOK 143.6 million, due to one-off costs last year.

• Loan losses were NOK 14.1 million, slightly down from NOK 15.5 million last year.

• Brutto lending including Eika Boligkreditt reached NOK 18.5 billion, up NOK 1.24 billion (7.2%) year-over-year.

• Customer deposits at quarter-end were NOK 10.6 billion, up NOK 257 million over 12 months.

Outlook and guidance

• Expectation that policy rates will remain stable for some time.

• Increased uncertainty in the construction sector may lead to more bankruptcies, affecting credit risk.

• Bank targets further market share growth and lending expansion, with continued focus on operational efficiency.