SPAREBANKEN NORGE (SBNOR) Q3 2024 earnings summary

Executive summary

• Sparebanken Vest reported strong Q3 2024 results, with pre-tax profit of NOK 1,585 million, ROE at 21.4%, and robust lending and deposit growth.

• The legal merger with Sparebanken Sør, forming Sparebanken Norge, is progressing, targeting national presence and significant synergies, with completion aimed for May 2025.

• Bulder continues rapid growth and high customer satisfaction, supporting the group's expansion ambitions and nearing NOK 60 billion in lending.

• Cost/income ratio improved to 21.4%, reflecting efficient cost management.

• CET1 ratio stood at 18.0%, well above regulatory and internal targets.

Financial highlights

• Profit per equity certificate was NOK 4.45 in Q3 2024, up from NOK 3.18 in Q3 2023.

• Net interest income increased to NOK 1,574 million, driven by lending growth and higher interest rates.

• Lending and deposit growth over the last 12 months were 11.6% and 8.2%, respectively.

• Net commission income for Q3 was NOK 192 million, mainly due to card and payment services growth.

• Write-downs and losses on loans and guarantees were low at NOK 12 million.

Outlook and guidance

• The merger is expected to generate annual cost synergies of NOK 350–400 million from 2027/2028 and capital synergies of NOK 2 billion.

• Full-year profit is expected to exceed the ROE target of 13%.

• Lending growth targets for retail and corporate markets are on track, with Bulder's NOK 60 billion lending target within reach.

• Cost ratio improvement is a continued ambition, with 2024 cost growth estimated at 5%.

• Sparebanken Norge targets a nationwide position within 5–10 years through structural and organic growth.