SPAREBANK 1 RINGERIKE HADELAND (RING) Q4 2024 earnings summary

Executive summary

• Record net profit of NOK 704 million in 2024, up from NOK 461 million, driven by strong underlying profitability and extraordinary financial gains from Eika/Fremtind and SamSpar transactions.

• Return on equity (ROE) reached 14.9%, exceeding the target of 11%, with adjusted ROE at 11.7%.

• High deposit growth, market-level lending growth, low losses, and efficient operations contributed to the result.

• Dividend payout ratio increased to 70.8%, with a proposed dividend of NOK 30 per equity certificate.

• Cost/income ratio improved to 29% for the group, reflecting efficiency gains.

Financial highlights

• Net interest income rose 14% year-over-year to NOK 885 million, with a net interest margin of 2.01%.

• Net commission and other income totaled NOK 354 million, stable year-over-year.

• Extraordinary gains of NOK 120 million from Eika/Fremtind and SamSpar transactions.

• Cost/income ratio improved to 29% for the group.

• Losses on loans and guarantees were NOK 33 million, with low and stable default levels.

Outlook and guidance

• Expect continued strong capital position and focus on balancing solidity, profitability, cost development, and growth.

• Anticipate increased competition for mortgage customers and low overall loan demand.

• Norges Bank kept the policy rate at 4.5% in 2024; market expects 1–3 rate cuts in 2025.

• Bank targets loan growth 1–1.5% above market in 2025 and aims for ROE above 11% over time.

• New capital adequacy rules in 2025 expected to improve capital ratios by 1–2 percentage points.