SPAREBANK 1 HELGELAND (HELG) Q3 2024 earnings summary

Executive summary

• Result before tax reached NOK 565 million for the first nine months of 2024, up NOK 51 million year-over-year, with return on equity at 12.1% (adjusted for hybrid capital).

• Q3 2024 pre-tax profit was NOK 200 million, up from NOK 185 million in Q2, driven by higher net interest income and a one-off gain from the Eika/Fremtind merger.

• Net interest income for Q3 was NOK 255 million, with improved deposit margins and loan growth despite margin pressure.

• Cost/income ratio improved to 32.7% in Q3, down from 36.4% in Q2, reflecting stable operating costs.

• Annualized return on equity after tax (excl. hybrid capital) was 12.9% in Q3, up from 11.7% in Q2.

Financial highlights

• Net interest income YTD was NOK 758 million, up NOK 38 million from last year.

• Net commission and other income YTD was NOK 134 million, up NOK 11 million year-over-year.

• Loan losses for Q3 were NOK 17 million; total loan losses YTD NOK 76 million (0.26% of gross loans), up from NOK 57 million last year.

• Cost/income ratio YTD was 33.5%, improved from 34.5% last year.

• Total assets under management stood at NOK 37.3 billion as of 30.09.24.

Outlook and guidance

• Activity in the corporate market is expected to increase, with market growth in retail lending anticipated.

• Profitability target of 11% after tax is expected to be met in 2024.

• Net interest margin may decrease slightly due to strong competition and higher funding costs.

• Stable commission income and operating costs well within the target of below 40% of income are anticipated.

• Loan losses for 2024 are expected to be at a similar level as 2023.