Tysnes Sparebank (TYSB) Q4 2024 earnings summary

Executive summary

• Result before losses and tax was NOK 49.7 million, down NOK 6.7 million compared to 2023, with a negative result after tax of NOK -37.1 million and return on equity of -8.6%.

• High credit losses and one-off operating costs led to a negative total result after tax of NOK -41.9 million, with return on equity at -9.7%.

• Underlying banking operations remain solid despite a challenging half-year and significant provisions for future potential losses.

Financial highlights

• Net interest income increased by NOK 8.9 million year-over-year; net interest margin at 2.69% at year-end.

• Commission income rose to NOK 22.1 million, up NOK 5.4 million from 2023, mainly from Eika Boligkreditt and insurance.

• Operating costs grew 21% over 12 months; cost/income ratio increased from 40.5% to 53.9%.

• Total assets at year-end were NOK 3,364 million; customer deposits stable with a coverage ratio of 84.3%.

• No dividend or gift distribution proposed for 2024 due to negative results.

Outlook and guidance

• Expectation of rising purchasing power, lower interest rates, and increasing house prices; positive industry sentiment.

• Focus remains on maintaining solid operations and monitoring credit growth to ensure capital adequacy and liquidity.

• Merger with Haugesund Sparebank expected to complete in Q2 or Q3 2025, pending renegotiation of merger terms.