Sparbanken Skåne (SK) Q4 2024 earnings summary

Executive summary

• Operating profit for Q4 2024 was SEK 385m, down from SEK 439m in Q3; full-year operating profit was SEK 1,753m, down from SEK 1,839m in 2023.

• Net interest income decreased to SEK 571m in Q4 and SEK 2,389m for the year, mainly due to lower market rates.

• Provisions for credit losses were positive, reflecting reduced reserves; credit quality remains strong.

• The bank issued its first green covered bond, bringing total green bond issuance to SEK 7.4bn.

• Return on equity for 2024 was 13.9%, exceeding the long-term target of 10%.

Financial highlights

• Q4 net interest income: SEK 571m (Q3: SEK 590m); net commission income: SEK 138m (Q3: SEK 139m).

• Q4 operating expenses (excl. credit losses): SEK -344m (Q3: SEK -288m), mainly due to higher personnel and IT costs.

• Q4 credit losses: +SEK 15m (Q3: -SEK 3m); full-year credit losses: +SEK 13m (2023: -SEK 104m).

• Full-year net interest income: SEK 2,389m (2023: SEK 2,496m); net commission income: SEK 549m (2023: SEK 500m).

• Full-year operating expenses (excl. credit losses): SEK -1,212m (2023: SEK -1,070m).

Outlook and guidance

• Economic recovery in Skåne is expected from Q2 2025, but the recession is likely to persist through 2025 and 2026.

• Riksbanken is expected to cut rates further in 2025; inflation is forecast to normalize around 2%.

• The bank remains robust, with strong capital and liquidity, and is positioned to support customers in recovery and green transition.