KRAFT BANK (KRAB) Q3 2024 earnings summary

Executive summary

• Net profit after tax reached NOK 10.2 million, up from NOK 2.6 million in the previous quarter and NOK 10.0 million in the same quarter last year.

• 149 customers were declared financially rehabilitated in the quarter, with a total of 1,756 since 2018.

• 81% of customers have successfully refinanced to a regular bank since inception, with 86% success so far in 2024.

• The business model focuses on helping customers avoid forced home sales and improve financial health.

• Loan brokerage subsidiary achieved profitability at the end of the quarter.

Financial highlights

• Net loan growth was NOK 77 million in Q3 and NOK 340 million year-to-date; 13% growth year-over-year.

• Total net loans to customers reached NOK 3,545 million.

• Return on equity after tax was 9.2% in Q3; target of 15% return on equity in 2025.

• Capital adequacy ratio stood at 24.0% at quarter-end.

• Net interest income was NOK 35.4 million, up from NOK 31.7 million year-over-year.

Outlook and guidance

• Year-end 2024 net loans to customers expected in the NOK 3.6–3.8 billion range.

• Return on equity for the group expected at 6% for 2024, with 15% targeted for 2025.

• No changes anticipated in capital requirements; capital plan includes issuing subordinated bonds and retained earnings.

• Expects continued customer inflow, but a significant share will return to regular banks annually.

• Forecasts stable costs and no significant capital changes for the remainder of 2024.