SPAREBANKEN NORGE (SBNOR) Q2 & CMD 2024 earnings summary

Executive summary

• ROE reached 20.1% in Q2 2024, with cost-to-income at 24.2%, marking one of the best quarters and maintaining a strong position among Nordic peers.

• Pre-tax profit for Q2 2024 was NOK 1,412 million, up from NOK 1,030 million in Q2 2023.

• Lending and deposit growth remained robust, with lending up 13.2% and deposits up 8.5% year-over-year.

• Bulder continued rapid expansion, with lending up NOK 21.6bn year-over-year and ROE exceeding targets.

• Customer satisfaction reached record highs in both retail and corporate markets.

Financial highlights

• Net interest income for Q2 2024 was NOK 1,536 million, with margin improvements from repricing.

• Book value per equity certificate rose to NOK 80.7, and profit per certificate reached NOK 4.40.

• Assets under management grew to NOK 24.2bn, with continued positive net new subscriptions.

• Associated companies, notably Frende (ROE 29.6%) and Brage Finans (ROE 10.3%), contributed positively.

• Operating expenses were NOK 459 million, nearly flat year-over-year.

Outlook and guidance

• Positioned for continued strong performance, supported by a conservative loan book and digital leadership.

• Full-year profit is expected to exceed the ROE target of 13%, with lending growth on track to meet 2024 targets.

• Bulder concept lending portfolio target of NOK 60 billion by year-end is within reach.

• Management expects ongoing robust profitability and cost efficiency, with a focus on sustainable growth.

• Geopolitical and regulatory uncertainties, including potential changes to risk weight floors, may impact future payout ratios.