Sunndal Sparebank (SUNSB) Q2 2024 earnings summary

Executive summary

• Net income after tax reached NOK 45.6 million for H1 2024, up from NOK 36.4 million year-over-year.

• Return on equity was 11.4%, compared to 10.7% for the same period last year.

• Cost/income ratio improved to 41.5% from 43.4% year-over-year.

• Loan growth over 12 months was 5.6%, while deposit growth declined by 1.2%.

• The bank completed the acquisition of 51% of NEM Eiendomsmegling AS, expanding its presence in real estate services.

Financial highlights

• Net interest income increased by NOK 5 million (7.5%) to NOK 72.9 million over the last 12 months.

• Net commission and other operating income rose by NOK 3 million (11.6%) to NOK 29.1 million.

• Operating expenses increased by NOK 1.6 million (3.9%) to NOK 42.3 million.

• Loan losses booked at NOK 0.4 million, down NOK 8.7 million from the previous year.

• Customer loans including Eika Boligkreditt reached NOK 7,266 million; customer deposits were NOK 3,954 million.

Outlook and guidance

• The bank expects continued stable net interest income, supported by no anticipated rate cuts in 2024.

• Organic credit growth target for 2024 is 6%, with annualized growth at 11.3% as of June.

• Dividend policy remains at 70-100% payout, subject to capital requirements.

• Management anticipates a good financial year for 2024, with all capital and liquidity requirements met.