NIDAROS SPAREBANK (NISB) Q4 2024 earnings summary

Executive summary

• Net profit after tax reached NOK 35.0 million in 2024, up from NOK 33.4 million in 2023, with a total comprehensive income of NOK 32.3 million.

• Return on equity after tax was 6.7% (6.5% in 2023), while cost/income ratio increased to 64.8% from 63.5%.

• Forvaltningskapital (total assets) grew by 4.7% to NOK 4,756 million, and forretningskapital (business volume) rose 7% to NOK 6,140 million.

• The board proposes a dividend payout of NOK 5.87 per equity certificate, corresponding to an 80% payout ratio.

• The bank maintained strong capital adequacy and liquidity, with a CET1 ratio of 17.8% and LCR of 217%.

Financial highlights

• Net interest income was NOK 112.5 million, up slightly from NOK 112.0 million in 2023.

• Operating expenses increased by 9.4% to NOK 89.6 million, mainly due to higher personnel costs and organizational changes.

• Credit losses recognized were NOK 5.4 million, with actual losses of NOK 4.6 million, mainly from a previously provisioned long-term exposure.

• Customer deposits grew by 8.5% to NOK 3,149 million, and loan growth was 4% to NOK 3,845 million.

• Net commission income and other operating income increased to NOK 25.8 million from NOK 17.0 million.

Outlook and guidance

• The board targets a return on equity of 8% for 2025, with expectations of improved profitability following organizational restructuring.

• Loan losses and defaults are expected to remain at low levels, barring major negative macroeconomic shifts.

• The bank anticipates moderate interest rate cuts in 2025, supporting increased housing market activity and loan demand.

• Strategic focus remains on sustainable growth, digitalization, and strengthening the bank’s local market position.