Sunndal Sparebank (SUNSB) Q4 2024 earnings summary

Executive summary

• Net profit after tax was NOK 54.2 million for Q4 2024, down from NOK 66.7 million year-over-year.

• Return on equity after tax was 6.7%, compared to 9.0% in the previous year.

• Cost/income ratio remained stable at 48.1%.

• Loan growth over 12 months was 6.2%, while deposit growth was -1.2%.

• The board proposes a cash dividend of NOK 7.00 per equity certificate.

Financial highlights

• Pre-tax profit was NOK 69.7 million, down from NOK 84.3 million, mainly due to increased loan losses in the corporate portfolio.

• Net interest income increased by 5% to NOK 148.5 million, driven by stable money market rates and higher average interest levels.

• Net commission and other operating income rose 12.8% to NOK 51.1 million, with broad-based growth in commissions.

• Operating expenses increased by 6.7% to NOK 96.0 million, impacted by personnel costs and merger-related expenses.

• Loan losses and impairments rose to NOK 34.0 million from NOK 12.5 million, mainly due to bankruptcies in the corporate segment.

Outlook and guidance

• Norges Bank is expected to lower the policy rate in March 2025, with further cuts likely in June and September.

• Falling interest rates in 2025 are expected to reduce net interest income, but increased market growth and credit demand may partially offset this.

• 2025 will see integration costs related to the merger with Romsdal Sparebank.

• Profitability is expected to remain solid, with moderate but lower loan losses anticipated.