AURSKOG SPAREBANK (AURG) Q2 2024 earnings summary

Executive summary

• Net income after tax reached NOK 122.9 million for H1 2024, up from NOK 109.0 million year-over-year, representing 1.43% of average assets.

• Business volume surpassed NOK 21 billion for the first time, with 15.4% growth in total lending including Eika Boligkreditt.

• Cost-to-income ratio improved to 31.4% (adjusted), down from 32.6% last year, reflecting continued cost discipline.

• Return on equity for the last 12 months was 10.9%, slightly down from 11.2% a year ago.

Financial highlights

• Net interest income for H1 2024 was NOK 186.7 million (2.17% of avg. assets), up from NOK 168.1 million.

• Earnings per equity certificate (EPS) reached NOK 9.62, up from NOK 9.36.

• Total operating income (excluding net interest) was NOK 51.8 million, up from NOK 50.4 million.

• Operating expenses were NOK 73.3 million, down from NOK 75.4 million, with no one-off conversion costs this year.

• Credit losses and impairments increased to NOK 7.1 million from NOK 1.6 million.

Outlook and guidance

• Management expects continued high activity in the bank and among customers, with optimism in the housing market.

• Uncertainty remains regarding the timing of potential interest rate cuts by Norges Bank due to a weak NOK.

• Moderate increase in loan defaults is noted, but portfolio quality is considered good.

• New branch openings in Gjøvik and Nannestad are planned to support further growth.