SPAREBANKEN MØRE (MORG) Q2 2024 earnings summary

Executive summary

• Profit after tax for H1 2024 rose 20.1% year-over-year to NOK 555 million, with ROE at 14.1%.

• Profit before tax for H1 2024 reached NOK 727 million, up 20.4% year-over-year; Q2 profit after tax was NOK 301 million.

• Net interest income increased 13.1% year-over-year, supported by robust lending and deposit growth.

• Maintained high efficiency with a cost/income ratio of 40.3% and strong capital and liquidity positions.

• Earnings per equity certificate for H1 2024 were NOK 5.26, up from NOK 4.42 in H1 2023.

Financial highlights

• Net interest income for H1 2024 was NOK 1,026 million (2.09% of average assets), up from NOK 907 million (1.96%) in H1 2023.

• Total income for H1 2024 increased by NOK 143 million year-over-year to NOK 1,186 million.

• Lending to customers at end-Q2 2024 was NOK 85,076 million, up 7.7% year-over-year; deposits were NOK 49,240 million, up 6.3%.

• Cost/income ratio at 40.3% for H1 2024, up slightly from 39.3% in H1 2023.

• Liquidity Coverage Ratio at end-Q2 2024 was 156; Net Stable Funding Ratio was 122.

Outlook and guidance

• Expects continued positive activity, with prospects for interest rate cuts from Norges Bank towards year-end and further reductions in 2025.

• Global inflationary pressures are easing, paving the way for gradual interest rate cuts by central banks.

• Norwegian economic activity is showing modest growth, with low unemployment and wage growth expected to exceed inflation.

• Lending and deposit growth remain above market average, with 12-month lending growth at 7.7% and deposit growth at 6.3%.

• Export-oriented regions, including Møre og Romsdal, are performing well, aided by a weak NOK.