Sparbanken Skåne (SK) Q2 2024 earnings summary

Executive summary

• Operating profit for Q2 2024 was SEK 467 million, up from SEK 462 million in Q1 2024; H1 2024 operating profit reached SEK 929 million, up from SEK 887 million in H1 2023.

• Net interest income for Q2 was SEK 609 million, slightly down from SEK 619 million in Q1; H1 net interest income increased to SEK 1,227 million from SEK 1,215 million year-over-year.

• Business volume rose to SEK 263 billion at June 30, 2024, driven by positive stock market performance and increased lending.

• The bank remains robust, with strong capital and liquidity positions, and continues to support customers and local community initiatives.

Financial highlights

• Q2 2024 net interest income: SEK 609 million (Q1: SEK 619 million); H1 2024: SEK 1,227 million (H1 2023: SEK 1,215 million).

• Q2 2024 net commission income: SEK 139 million (Q1: SEK 133 million); H1 2024: SEK 272 million (H1 2023: SEK 250 million).

• Costs excluding credit losses in Q2: SEK -292 million (Q1: SEK -288 million); H1: SEK -579 million (H1 2023: SEK -544 million).

• Credit loss provisions decreased, with H1 2024 change at SEK +2 million (H1 2023: SEK -41 million).

• Q2 2024 profit after tax: SEK 370 million (Q1: SEK 366 million); H1 2024: SEK 737 million (H1 2023: SEK 703 million).

Outlook and guidance

• Swedish economy expected to recover gradually from late 2024, but remain in recession through 2025.

• Riksbank's May rate cut has sparked optimism; further rate cuts anticipated in H2 2024.

• Household consumption and lower interest rates are seen as key drivers for economic recovery.

• Bank expects continued cautious lending and investment activity, with a focus on supporting green transition.