Spar Nord Bank (SPNO) Q4 2024 earnings summary

Executive summary

• Profit after tax reached DKK 2,222 million for 2024, with ROE after tax at 16.6%, reflecting solid performance despite a 9% increase in costs and a 4% rise in net fee income year-over-year.

• Net interest income remained stable at DKK 3,522 million, supported by loan growth and higher returns on surplus liquidity, while lending grew by 7% and total business volume increased by 6% to DKK 379 billion.

• Market value adjustments and dividends totaled DKK 393 million, with positive contributions from customer activity and strategic shareholdings, though overall lower than 2023.

• Net reversal of loan impairments continued for a second year, underlining strong credit quality.

• No dividend distribution for 2024 due to Nykredit's takeover offer.

Financial highlights

• Net fee income rose 4% year-over-year to DKK 1,558 million, driven by asset inflows and positive market adjustments.

• Costs increased 9% to DKK 2,777 million, mainly from higher payroll and IT expenses; excluding one-off costs, the increase was 6%.

• Cost/income ratio stood at 49.

• Lending to private customers increased by DKK 2.6 billion, while corporate lending decreased by DKK 2.3 billion.

• Asset under management grew by DKK 11 billion (16%).

Outlook and guidance

• 2025 profit after tax expected in the DKK 1.6–1.9 billion range, with ROE after tax projected at 11–13%.

• Profit before impairment charges forecasted at DKK 2.2–2.6 billion; impairment charges expected at 0.10% of loans, advances, and guarantees.

• Net interest income anticipated to decline due to margin pressure and expected rate cuts; net fee income expected to rise with higher asset volumes and housing market activity.

• Operating expenses projected to remain stable, excluding one-off costs.