Sparekassen Sjælland-Fyn (SPKSJF) Q2 2024 earnings summary

Executive summary

• Result before tax for H1 2024 reached DKK 415.2 million, up 22% year-over-year, with net profit at DKK 311.2 million, yielding a 14.1% return on opening equity.

• Strong growth in core earnings (+40%) and net interest income (+21%) driven by higher lending volumes and increased interest rates.

• Fee and commission income rose 4% year-over-year, reflecting higher customer activity and demand for advisory services.

• Cost-to-income ratio improved to 54.0%, with ongoing focus on efficiency and cost control as part of the 2025 strategy.

• Credit quality remains robust, with low loan impairment charges and strong capital and liquidity positions.

Financial highlights

• Net interest income: DKK 479.2 million (+21% year-over-year).

• Net fee and commission income: DKK 322.0 million (+4% year-over-year).

• Core earnings: DKK 396.2 million (+40% year-over-year).

• Result before tax: DKK 415.2 million (+22% year-over-year); after tax: DKK 311.2 million (+17%).

• Loan impairments: DKK 9.3 million (low level, up from DKK 6.0 million in H1 2023).

• Total business volume increased by DKK 6.3 billion (+6%) over the past 12 months.

Outlook and guidance

• Full-year 2024 pre-tax profit guidance raised to DKK 700–800 million, up from DKK 650–750 million, reflecting strong business activity and low impairments.

• Strategic target to reduce cost-to-income ratio below 50% by 2026 remains in focus.