NIDAROS SPAREBANK (NISB) Q3 2024 earnings summary

Executive summary

• Net profit after tax for Q3 2024 was NOK 25.8 million, down from NOK 26.9 million year-over-year.

• Return on equity annualized at 6.54%, compared to 7.02% in Q3 2023.

• Total assets under management increased by 14.3% to NOK 5,008 million.

• Gross lending growth including mortgage credit was 9.8% year-over-year.

• Deposit coverage ratio improved to 83.2% from 78.3% year-over-year.

Financial highlights

• Net interest income for Q3 YTD was NOK 83.4 million, slightly up from NOK 82.8 million year-over-year.

• Net interest margin was 2.45%, down from 2.53% year-over-year.

• Net commission and other operating income rose to NOK 18.1 million from NOK 13.8 million.

• Operating expenses increased to NOK 64.1 million, up from NOK 55.4 million, mainly due to higher personnel costs.

• Cost/income ratio was 63.1%, up from 57.4% year-over-year.

• Loan loss provisions increased to NOK 16.8 million from NOK 13.5 million.

Outlook and guidance

• Signs of increased demand in the retail market and stable housing sales in Trondheim.

• Corporate market volumes and earnings declined but are expected to recover in Q4.

• Measures implemented to boost net interest income and reduce excess liquidity.

• Cost-cutting initiatives and organizational restructuring expected to improve efficiency and profitability.

• Sale of property in Klæbu anticipated to provide a significant positive accounting effect.