Sparbanken Skåne (SK) Q3 2024 earnings summary

Executive summary

• Operating profit for Q3 2024 was SEK 439 million, down from SEK 467 million in Q2 2024; for Jan–Sep 2024, operating profit was SEK 1,369 million, slightly below SEK 1,375 million for the same period in 2023.

• Net interest income decreased to SEK 590 million in Q3 (Q2: SEK 609 million) and SEK 1,817 million for Jan–Sep (Jan–Sep 2023: SEK 1,853 million), mainly due to lower market rates.

• Provisions net increased year-over-year to SEK 411 million for Jan–Sep 2024 (Jan–Sep 2023: SEK 375 million), supported by positive stock market performance.

• The bank remains robust with strong capital and liquidity positions, despite a continued economic downturn and cautious market sentiment.

• Green lending to corporate customers rose 45% year-to-date, now representing 12% of the bank’s own lending portfolio.

Financial highlights

• Q3 2024 operating profit: SEK 439 million (Q2: SEK 467 million); Jan–Sep 2024: SEK 1,369 million (Jan–Sep 2023: SEK 1,375 million).

• Net interest income Q3: SEK 590 million (Q2: SEK 609 million); Jan–Sep: SEK 1,817 million (Jan–Sep 2023: SEK 1,853 million).

• Net commission income Q3: SEK 139 million (Q2: SEK 139 million); Jan–Sep: SEK 411 million (Jan–Sep 2023: SEK 375 million).

• Costs excluding credit losses Q3: SEK -288 million (Q2: SEK -292 million); Jan–Sep: SEK -867 million (Jan–Sep 2023: SEK -786 million).

• Business volume at end-Q3: SEK 263 billion, up from SEK 248 billion at end-Q3 2023.

Outlook and guidance

• Economic recovery in Sweden and Skåne is expected to be slow, with Riksbanken and Konjunkturinstitutet projecting a prolonged downturn.

• Further interest rate cuts by Riksbanken are anticipated in late 2024, supporting gradual improvement in household and business sentiment.

• The bank expects continued demand for green loans and remains focused on supporting customers through the recovery and green transition.