SPAREBANKEN MØRE (MORG) Q4 2024 earnings summary

Executive summary

• Profit after tax for 2024 was NOK 1,086 million, up 2.9% year-over-year; Q4 2024 profit was NOK 251 million, down 26.2% from Q4 2023.

• Profit before losses for 2024 reached NOK 1,446 million, up from NOK 1,336 million in 2023.

• Return on equity for 2024 was 13.7%, slightly below 14.0% in 2023; cost/income ratio increased to 39.8%.

• Lending grew 6.5% year-over-year, with retail lending up 7.6% and corporate lending up 4.3%.

• Board proposes a cash dividend of NOK 6.25 per equity certificate, totaling NOK 311 million, and a 72.2% payout ratio after correction.

Financial highlights

• Net interest income for 2024 was NOK 2,071 million, up 9% year-over-year; Q4 2024 net interest income was NOK 522 million.

• Total income for 2024 reached NOK 2,401 million, up 9.4% from 2023.

• Operating expenses increased 11.2% to NOK 955 million in 2024, mainly due to higher IT and personnel costs.

• Loan losses were NOK 20 million (0.02% of loans and guarantees), compared to net receipts of NOK 53 million in 2023.

• Earnings per equity certificate for 2024 were NOK 9.95, down from NOK 10.12 in 2023.

Outlook and guidance

• Norges Bank expected to cut rates in March 2025, with 2–3 cuts anticipated during the year.

• Norwegian economic growth is expected to improve in 2025, with mainland GDP growth of 1.4%.

• Bank expects continued strong activity in Møre og Romsdal, with low unemployment and robust local growth.

• House prices in the region are expected to continue rising after 8.3% growth in 2024.

• Long-term targets: ROE >13%, cost/income <40%, CET1 at or above regulatory requirements, and low losses.