TOTENS SPAREBANK (TOTG) Q3 2024 earnings summary

Executive summary

• Net profit for Q3 2024 was NOK 68 million, slightly down from NOK 70.5 million in Q3 2023; YTD profit at NOK 229.6 million versus NOK 231.8 million last year.

• Return on equity YTD 2024 was 11.4%, down from 12.5% in the same period last year.

• The merger with SpareBank 1 Østlandet is approved and will be effective from November 1, 2024, making this the last standalone report for Totens Sparebank.

Financial highlights

• Net interest income in Q3 2024 was NOK 142.1 million, up from NOK 134.2 million in Q3 2023; YTD net interest income reached NOK 410.1 million, up from NOK 384.7 million.

• Net commission and other operating income in Q3 2024 was NOK 20.8 million, stable year-over-year; YTD at NOK 87.7 million, down from NOK 94.7 million.

• Operating expenses in Q3 2024 were NOK 55.7 million, up from NOK 49.3 million in Q3 2023; YTD expenses at NOK 167.7 million, up from NOK 155.2 million.

• Loan losses in Q3 2024 were NOK 17.1 million, up from NOK 12.7 million in Q3 2023; YTD loan losses at NOK 32.6 million.

• Net loans to customers increased by NOK 999 million (5.3%) over the last 12 months; deposit growth was 8.3% year-over-year.

Outlook and guidance

• Norges Bank's policy rate remains at 4.50%, with stable net interest margins expected in the near term.

• Low credit growth and strong competition may pressure margins going forward.

• From November 2024, all future reports will be for the merged SpareBank 1 Østlandet.