Tysnes Sparebank (TYSB) Q3 2024 earnings summary

Executive summary

• Result before losses and tax reached NOK 53.7 million, up NOK 7.6 million year-over-year, but large loss provisions led to a negative net result after tax of NOK -24.8 million and a total comprehensive loss of NOK -30.1 million.

• Return on equity after tax was -7.6%, and total comprehensive return on equity was -9.2% for the period.

• The bank is in the process of merging with Haugesund Sparebank, with completion expected in Q2 or Q3 2025.

Financial highlights

• Net interest income increased by NOK 9.9 million year-over-year, with a net interest margin of 2.75%.

• Net other operating income was NOK 13.4 million, stable year-over-year; commission income from Eika Boligkreditt increased, but dividend income from strategic equity holdings declined.

• Cost-to-income ratio improved to 40.5% from 50.7% at year-end, reflecting moderate cost growth.

• Total assets under management were NOK 3,607 million at quarter-end.

• Deposit coverage ratio was 86.9%, and LCR was 879, indicating strong liquidity.

Outlook and guidance

• The bank expects to maintain solid operations and focus on the merger process, with limited credit growth to safeguard capital and liquidity until the merger is completed.