Spar Nord Bank (SPNO) Q2 2024 earnings summary

Executive summary

• Net profit after tax reached DKK 1,215 million in H1 2024, up 3% year-over-year, with a return on equity (ROE) of 18.8% considered highly satisfactory.

• Core earnings before impairment were DKK 1,545 million, supported by higher net interest income and strong credit quality.

• Core income increased by 6% to DKK 2,924 million, driven by higher net interest income and stable fee income.

• Persistently strong credit quality led to net reversals in loan impairment charges, contributing DKK 37 million to profit.

• Total business volume grew by DKK 16 billion (5% year-over-year), with increases in loans, deposits, and assets under management.

Financial highlights

• Net interest income grew 10% year-over-year to DKK 1,795 million, driven by higher market rates and increased liquidity.

• Net fee income remained stable at DKK 780 million, with a shift from housing market activity to securities trading and asset management.

• Market value adjustments and dividends totaled DKK 248 million, with positive contributions from customer activity and strategic shares.

• Total costs increased 10% year-over-year to DKK 1,379 million, including DKK 33 million in one-off costs.

• Profit before tax was DKK 1,582 million, up 4% year-over-year; earnings per share reached DKK 10.2.

Outlook and guidance

• Full-year 2024 guidance maintained: core earnings before impairment expected at DKK 2,600–3,000 million and net profit at DKK 1,950–2,250 million.

• Loan impairment charges for the full year expected to have a positive profit impact of around 0.10% of loans, advances, and guarantees.