SPAREBANK 1 HELGELAND (HELG) Q4 2024 earnings summary

Executive summary

• Pre-tax profit for 2024 reached NOK 743 million, up NOK 93 million year-over-year, driven by higher net interest and financial investment returns.

• Q4 2024 pre-tax profit was NOK 179 million, down from NOK 200 million in Q3, mainly due to lower financial investment results and higher loan loss provisions.

• Strong lending growth in both retail (6.5%) and corporate (3.8%) segments; total lending up 5.8% over 12 months.

• Cost-to-income ratio improved to 33.6% for 2024, well below the 40% target.

• Board proposes a dividend of NOK 8.4 per equity certificate, with a payout ratio of 50–52.5%.

Financial highlights

• Net interest income for Q4 2024 was NOK 254 million (2.66% margin), stable from Q3; full-year net interest income was NOK 1,012 million (2.69%).

• Net commission and other income stable at NOK 49 million in Q4; full-year NOK 183 million.

• Net gains from financial investments were NOK 7 million in Q4, down NOK 12 million from Q3 due to one-off effects.

• Loan losses for Q4 were NOK 26 million, up from NOK 17 million in Q3; full-year loan losses at NOK 102 million (0.26% of gross loans).

• Cost/income ratio for Q4 was 34.0%; full-year ratio improved to 33.6% from 36.0% last year.

Outlook and guidance

• Expects increased activity in the corporate market and market growth in retail lending on Helgeland.

• Long-term profitability target raised to 12% ROE after tax from 2025.

• Anticipates a slight reduction in net interest margin and commission income in 2025, with costs to remain below 40% of income.

• Loan losses expected to decline in 2025 compared to 2023 and 2024.

• Outlook for 2025 is cautious due to expected lower margins and macroeconomic uncertainty.