Tinde Sparebank (TINDE) Q2 2024 earnings summary

Executive summary

• Result after tax for H1 2024 reached 47.6 MNOK, up from 43.7 MNOK in 2023, with a total comprehensive income of 37.2 MNOK, impacted by a -10.5 MNOK value change in equity instruments.

• Operating profit before losses and tax was 65.2 MNOK (1.79% of avg. assets), up from 58.3 MNOK (1.73%) year-over-year.

• Loan growth remains strong, with gross loans up 13.6% year-over-year and total business volume up 9.8%.

• Customer deposits increased by 8.5% year-over-year, with deposit coverage at 83.2% of gross loans.

• The bank completed a successful rights issue in April 2024, increasing equity and broadening ownership.

Financial highlights

• Net interest and credit commission income rose to 90.7 MNOK, 6.7 MNOK higher than last year, with a net interest margin of 2.50%.

• Net fee and commission income increased by 1.3 MNOK, mainly from higher commissions from Eika Boligkreditt AS.

• Operating expenses fell by 0.7 MNOK to 51.4 MNOK, mainly due to lower IT costs after a core banking system change.

• Net loan losses for H1 2024 were 3.7 MNOK, slightly up from 3.2 MNOK last year.

• Dividend income was 9.3 MNOK, down from 11.0 MNOK year-over-year.

Outlook and guidance

• The board considers the Q2 2024 results satisfactory and sees continued strong demand and growth potential in the local market.

• A new branch was opened in Vestnes in summer 2024 to support further growth in the Romsdal region.