AURSKOG SPAREBANK (AURG) Q4 2024 earnings summary

Executive summary

• Net profit after tax for 2024 reached NOK 235.7 million, up 10% year-over-year from NOK 214.5 million, driven by higher income.

• Return on equity for the last 12 months was 10.6%, slightly down from 11.0% the previous year.

• Forretningskapital (business capital) including loans brokered to Eika Boligkreditt increased to NOK 22.6 billion, up 12.9% year-over-year.

• Cost/income ratio was 32.9% (excluding one-off IT costs), compared to 31.0% last year.

• The bank became a 34% owner in Wepe Regnskap AS and announced a new office in Lillestrøm opening Q1 2025.

Financial highlights

• Net interest income rose 7% to NOK 375.3 million; net commission income increased to NOK 59.6 million.

• Total operating income was NOK 476.2 million, up from NOK 439.1 million year-over-year.

• Operating expenses increased 4% to NOK 156.9 million, mainly due to more staff and new offices.

• EPS was NOK 18.20, nearly unchanged from NOK 18.29 last year.

• Total comprehensive income was NOK 222.1 million, down from NOK 245.8 million, due to negative value changes in the strategic equity portfolio.

Outlook and guidance

• High activity expected in 2025, with continued investments in staff and new branches.

• Anticipates increased costs but expects these to strengthen long-term income.

• Lower interest rates and increased competition may pressure net interest margins.

• Regulatory changes in capital requirements and mortgage rules expected to boost housing market activity.

• Implementation of new capital calculation standards in 2025 is expected to improve capital ratios.