Trøndelag Sparebank (TRSB) Q4 2024 earnings summary

Executive summary

• Achieved strong growth across all business areas in Q4 2024, with continued expansion in lending and insurance portfolios.

• First full year post-fusion, with strong customer inflow, new offices, and bank buildings acquired in key regions.

• Successfully completed an oversubscribed rights issue and employee share offering in December, raising NOK 90 million and leading to Euronext Oslo Børs listing; share price developed positively post-listing.

• Increased credit-impaired exposures and individual loss provisions in the quarter, mainly within the corporate segment.

• Operations functioned well in Q4, with higher net interest and commission income year-over-year, but increased operating costs and higher credit losses.

Financial highlights

• Net profit after tax for Q4 2024 was NOK 10.6 million (Q4 2023: NOK 10.1 million); full-year net profit after tax was NOK 67.0 million (2023: NOK 67.4 million).

• Net interest income for Q4 was NOK 52.2 million (Q4 2023: NOK 50.7 million); net interest margin declined to 2.31% from 2.51%.

• Net interest income for the year reached NOK 207.6 million (2023: NOK 173.4 million); net commission and fee income increased to NOK 59.0 million (2023: NOK 42.9 million).

• Total lending including Eika Boligkreditt reached NOK 9.2 billion, with 12-month lending growth of 10.9%.

• Total operating costs for the year were NOK 166.5 million (2023: NOK 163.1 million), including NOK 8.5 million in one-off listing expenses in Q4.

Outlook and guidance

• Positive outlook for 2025 with continued strong growth expected; focus on extracting synergies and reducing costs post-fusion.

• Norges Bank signals interest rate cuts in 2025, which may reduce bank income but ease pressure on customers, especially in commercial real estate.

• Ongoing monitoring of capital adequacy with readiness to take necessary actions to maintain solid capital position.