JÆREN SPAREBANK (JAREN) Q4 2024 earnings summary

Executive summary

• Net profit after tax reached MNOK 275.1 for 2024, up 15% year-over-year; Q4 net profit was MNOK 51.9, up from MNOK 47.2.

• Full-year pre-tax profit was NOK 336.2m, up from NOK 287.0m; Q4 pre-tax profit was NOK 69.3m, up from NOK 63.6m.

• Strong growth in lending (+10.0%) and deposits (+9.2%) over the last 12 months, outpacing market growth in core areas.

• Return on equity after tax was 10.9% for 2024, meeting the target and approaching the long-term goal of 11%.

• Cost-to-income ratio improved to 39.2% for 2024, down from 42.0% in 2023.

Financial highlights

• Net interest income rose 9% year-over-year to NOK 413.8m, with a margin of 2.29% of average total assets.

• Net commission income up 28% year-over-year to NOK 106.1m, driven by normalized EBK commissions and portfolio growth.

• Operating expenses increased moderately to NOK 212.5m, mainly from higher personnel costs; cost per FTE down 5.7% in Q4 year-over-year.

• Net write-downs and losses on loans were minus NOK 6.0m, reflecting reversals.

• Net income from financial investments declined to NOK 22.3m due to lower dividends and securities returns.

Outlook and guidance

• Targets for 2025–2027: cost-to-income ratio max 40%, ROE min 11%, payout ratio min 60%, CET1 min 16.1%, loan growth >5%.

• Expects continued stable margins and moderate rate environment; gradual rate cuts anticipated from March 2025.

• Well positioned in terms of market, liquidity, and solidity to further strengthen its local presence.