AURSKOG SPAREBANK (AURG) Q3 2024 earnings summary

Executive summary

• Net profit after tax reached NOK 178.3 million year-to-date, up 13% from NOK 158.4 million year-over-year, driven by higher income.

• Forretningskapital surpassed NOK 22 billion, reflecting 15.8% growth over the past 12 months.

• Investments in new branches and staff increased costs, but cost ratio remains low.

• Moderate increase in non-performing loans, but portfolio quality remains strong.

• New branches opened in Gjøvik and Nannestad; 34% stake acquired in Wepe Regnskap AS.

Financial highlights

• Net interest income YTD: NOK 282.0 million (2.11% of avg. assets), up from NOK 257.8 million (2.15%).

• Net commission income: NOK 44.5 million; dividend and securities income: NOK 34.6 million.

• Total operating income: NOK 361.2 million; operating expenses: NOK 113.6 million.

• Loan loss provisions increased to NOK 17.2 million from NOK 10.6 million year-over-year.

• EPS YTD: NOK 13.90 vs. NOK 13.56 last year.

Outlook and guidance

• High activity expected ahead, with continued investments in staff and branches to support growth.

• Cost base will rise due to expansion, but income base is expected to strengthen.

• Interest margin expected to come under pressure in 2025 as competition and lower market rates emerge.

• Norges Bank's policy rate expected to decrease in 2025.