NIDAROS SPAREBANK (NISB) Q2 2024 earnings summary

Executive summary

• Ordinary profit after tax for Q2 2024 was NOK 20.1 million, unchanged from Q2 2023.

• Return on equity annualized at 7.64%, slightly down from 7.85% last year.

• Gross lending growth including mortgage credit was 10.3% year-over-year.

• Customer deposits increased by 9.6% over the last 12 months.

• The bank remains part of the LOKALBANK alliance and has joined the Frendegruppen for strategic collaboration.

Financial highlights

• Net interest income for Q2 2024 was NOK 54.8 million, nearly flat from NOK 54.1 million in Q2 2023.

• Net interest margin was 2.43% compared to 2.49% last year.

• Net commission and other operating income rose to NOK 12.9 million from NOK 11.3 million year-over-year.

• Operating expenses increased to NOK 39.9 million from NOK 36.3 million.

• Cost/income ratio was 59.0%, up from 55.5% in Q2 2023.

• Extended profit after value changes in equity investments was NOK 32.7 million, up from NOK 14.5 million.

Outlook and guidance

• Strong demand for services in Trondheim, with corporate lending growth exceeding expectations.

• Anticipates limited corporate lending growth in H2, but expects increased demand in the retail segment.

• Cost ratio expected to improve as volumes grow; FTEs to decrease in H2.

• Credit losses and defaults remain low, with no significant increase in risk foreseen for the year.