Tysnes Sparebank (TYSB) Q2 2024 earnings summary

Executive summary

• Pre-tax profit reached NOK 31.5 million at mid-year, with net profit after tax at NOK 24.4 million, yielding a return on equity of 10.6%.

• Total comprehensive income after tax was NOK 20.1 million, with a return on equity of 8.7%.

• Net interest income increased by NOK 10.7 million year-over-year, and cost-to-income ratio improved to 38.4%.

• Deposit growth exceeded 6% in the first half, and deposit coverage rose to 88.4%.

• The merger with Haugesund Sparebank is progressing, with completion targeted by November 2024.

Financial highlights

• Net interest and credit commission income: NOK 51.7 million (up from NOK 41.0 million year-over-year).

• Net commission and other operating income: NOK 8.7 million, stable year-over-year.

• Operating expenses: NOK 22.4 million, flat compared to last year.

• Loan loss provisions increased to NOK 6.5 million (from NOK 3.7 million year-over-year).

• Total assets at NOK 3.77 billion, up from NOK 3.69 billion year-over-year.

Outlook and guidance

• The bank expects continued economic uncertainty due to international unrest and a weaker NOK, but regional business activity remains strong.

• Main focus ahead is the merger with Haugesund Sparebank, expected to close by year-end 2024.