Sparekassen Sjælland-Fyn (SPKSJF) Q3 2024 earnings summary

Executive summary

• Result before tax for the first nine months of 2024 reached DKK 635.5 million, up 22% year-over-year, with net profit at DKK 478.0 million, yielding a 14.4% return on equity.

• Strong growth in core earnings (+29%) and net interest income (+16%) driven by higher lending and deposit rates, as well as increased business activity.

• Cost-to-income ratio improved to 54.8% from 59.8% a year ago, reflecting ongoing efficiency measures.

• Credit quality remains robust, with low loan impairment charges (DKK 20.2 million) and continued strong customer creditworthiness.

• Upgraded full-year pre-tax profit guidance to DKK 785–825 million due to strong business activity and better-than-expected market adjustments.

Financial highlights

• Net interest income rose 16% to DKK 720.5 million, mainly from higher lending and deposit rates.

• Fee and commission income increased 4% to DKK 470.3 million, reflecting higher activity in wealth management and real estate.

• Core earnings reached DKK 567.4 million, up 29% year-over-year.

• Market value adjustments contributed DKK 67.4 million, mainly from bond portfolio gains.

• Operating expenses rose 6% to DKK 633.8 million, with personnel costs up 3% despite contractual wage increases.

• Total business volume grew 6% to DKK 63.6 billion over the past 12 months.

Outlook and guidance

• Full-year pre-tax profit now expected in the DKK 785–825 million range, up from initial DKK 650–750 million guidance.

• Strategic focus remains on reducing the cost-to-income ratio below 50% by 2026 and maintaining a capital ratio above 20%.