Lea Bank (LEA) Q4 2024 earnings summary

Executive summary

• Completed redomiciliation from Norway to Sweden, now operating as a Swedish bank headquartered in Gothenburg as of January 2025.

• Listed on Nasdaq First North Premier Growth Market in Stockholm as of January 9, 2025, after delisting from Oslo Stock Exchange.

• Focused on digital consumer finance and deposits across Sweden, Finland, Norway, and Spain, leveraging a scalable digital platform.

Financial highlights

• Q4 2024 profit before tax was NOK 29.7 million, with profit after tax of NOK 22.3 million, both down from Q4 2023.

• Interest income for Q4 2024 was NOK 204.3 million, up from NOK 193.4 million in Q4 2023, driven by higher lending volumes and interest rate changes.

• Net interest income for Q4 2024 was NOK 136.8 million, slightly down year-over-year but up sequentially.

• Operating expenses rose to NOK 55.5 million in Q4 2024, mainly due to relocation and listing changes.

• Loan losses in Q4 2024 were NOK 72.1 million, flat year-over-year, with an annualized loss ratio of 3.8%.

Outlook and guidance

• Strategic roadmap targets ROE above 15% and cost/income below 30%.

• 2025 focus on profitable growth using surplus capital, balancing growth and dividends, and exploring partnerships.

• Plans to launch a new credit card product in 2025 and expand through strategic partnerships and potential portfolio acquisitions.

• Swedish banking setup expected to enable further growth in all markets.