JÆREN SPAREBANK (JAREN) Q3 2024 earnings summary

Executive summary

• Strong growth in lending and deposits, with 7.6% and 6.4% year-over-year increases, respectively, as of Q3 2024.

• Net interest income and commissions increased, with net interest income up 13% year-over-year for the nine-month period.

• Cost-to-income ratio improved to 37.2% YTD, down from 40.4% last year.

• Return on equity after tax reached 12.0% YTD, up from 11.1% and exceeding the long-term target.

• Defaults and losses remain low, with operating expenses stable year-over-year.

Financial highlights

• Net interest income: NOK 308.2 million YTD (up from NOK 272.6 million), NOK 105.6 million in Q3.

• Net commission income: NOK 77.6 million YTD, NOK 27.3 million in Q3.

• Operating expenses: NOK 153.3 million YTD, cost-to-income ratio at 37.2%.

• Net profit after tax: NOK 223.2 million YTD (up from NOK 192.0 million); Q3 after-tax profit NOK 63.0 million.

• Net write-downs and losses for Q3: NOK -2.1 million; YTD: NOK -8.2 million.

Outlook and guidance

• Expectation of stable net interest and commission income, with normalized EBK margins.

• Norges Bank's rate expected to remain unchanged until year-end, with gradual decline from Q1 2025.

• Continued focus on cost efficiency and digitalization, targeting cost-to-income below 40%.

• Ambition to maintain lending growth above local market credit growth.

• Uncertainty remains due to geopolitical tensions, high inflation, weak NOK, and high interest rates.