Vestjysk Bank (VJBA) Q4 2024 earnings summary

Executive summary

• Pre-tax profit for 2024 reached DKK 1,165 million, with a return on equity of 16.4% p.a., reflecting strong financial performance and fulfillment of all financial targets.

• Loan growth was robust at DKK 2,243 million (12.1%) year-over-year, marking the eighth consecutive quarter of increased lending.

• Cost development remained stable, with a satisfactory cost-to-income ratio and positive contribution from market value adjustments.

• The board proposes distributing 50% of net profit as dividends to shareholders.

Financial highlights

• Net interest income for 2024 was DKK 1,236 million, down DKK 30 million from 2023; net fee income was DKK 570 million, down DKK 26 million year-over-year.

• Market value adjustments and dividends contributed DKK 344 million, up DKK 32 million from 2023.

• Total income (basisindtægter) was DKK 2,157 million, slightly below 2023.

• Operating expenses totaled DKK 1,012 million, up DKK 29 million year-over-year.

• Net profit after tax was DKK 877 million, a decrease of DKK 158 million compared to 2023.

Outlook and guidance

• 2025 net profit after tax is expected in the range of DKK 600–800 million.

• Financial targets for 2025 include a minimum return on equity after tax of 9.0%, cost-to-income ratio below 50, and a core capital ratio of at least 16.0%.

• Dividend payout ratio is targeted between 25% and 50% of net profit.