SPAREBANKEN MØRE (MORG) Q3 2024 earnings summary

Executive summary

• Net profit after tax for Q3 2024 reached NOK 835 million, up 16.8% year-over-year, with ROE at 14.0% and cost/income ratio at 39.7%.

• Pre-tax profit for the first nine months of 2024 was NOK 1,093 million, up 16.6% year-over-year; Q3 pre-tax profit was NOK 366 million.

• Loan growth was 8.2% and deposit growth 5.5% over the last 12 months, with strong liquidity and capital ratios.

• Credit losses were minimal, with a net reversal of NOK 1 million for the nine-month period.

• Q3 2024 net profit was NOK 280 million, with quarterly ROE at 13.8%.

Financial highlights

• Net interest income for Q3 YTD was NOK 1,549 million (up 11.1% year-over-year), and total income was NOK 1,812 million (up 12.0%).

• Other income in Q3 was NOK 103 million, mainly from asset management and real estate brokerage.

• Operating expenses in Q3 were NOK 243 million, up NOK 35 million year-over-year; for the nine months, NOK 720 million.

• Earnings per equity certificate (EKB) for Q3 YTD was NOK 7.92, up from NOK 6.84 last year.

• Cost/income ratio for Q3 YTD was 39.7%, and ROE was 14.0%.

Outlook and guidance

• The bank expects continued strong loan and deposit growth, with positive prospects for the Nordvestlandet region.

• Lending growth is expected to remain above market average; 12-month loan growth at 8.2% and deposit growth at 5.5%.

• Norwegian interest rate cuts are expected in 2025, but Norges Bank signals a slower pace than market expectations.

• Expects an increase in CET1 ratio after CRR3 implementation due to regulatory changes.

• International price pressure is easing, but economic uncertainty and geopolitical risks persist.