Romerike Sparebank (ROMER) Q4 2024 earnings summary

Executive summary

• Pre-tax profit reached NOK 249.6 million, up from NOK 203.2 million year-over-year.

• Net profit after tax was NOK 192.4 million, with return on equity (ROE) at 8.7% (7.7%).

• Cost/income ratio improved to 40.5% from 46.8%, reflecting lower operating costs.

• Loan growth accelerated to 11.1% year-over-year, with both retail and corporate segments contributing.

• Board proposes NOK 10.50 per equity certificate in dividend and NOK 60 million to the gift fund.

Financial highlights

• Net interest income increased by NOK 37.7 million to NOK 391.2 million year-over-year.

• Commission and fee income rose to NOK 74.5 million (from NOK 59.3 million).

• Operating expenses fell to NOK 190.2 million, down from NOK 197.4 million, due to one-off costs in 2023.

• Loan loss provisions increased to NOK 30.2 million (from NOK 21.3 million).

• Total assets under management reached NOK 22.5 billion, up 8.9% year-over-year.

Outlook and guidance

• Expectation of interest rate cuts in 2025, with anticipated increase in household consumption and savings rate.

• Continued low activity in construction sector, but bank maintains low loan-to-value ratios and strong market position.

• Focus on operational efficiency and further loan growth in 2025.