Ringkjøbing Landbobank (RILBA) Q2 2024 earnings summary

Executive summary

• Net profit for H1 2024 reached DKK 1,181 million, up 20.5–21% year-over-year, with a 22% annualized return on equity.

• Ordinary business performed well in Q2 2024, with strong growth in loans, deposits, and custody account holdings.

• Core income increased 14% to DKK 2,051 million, while costs rose 8%, improving the cost/income ratio to 24.8%.

• Upward adjustment of 2024 net profit guidance to DKK 2,000–2,350 million due to strong credit quality and low impairments.

• Employee wellbeing and satisfaction reached record highs, supporting organic growth strategy.

Financial highlights

• Loans increased by 5.1% year-over-year and 2.2% sequentially, reaching DKK 52.5 billion.

• Deposits rose by 5.9% year-over-year and 1.9% sequentially, totaling DKK 53.8 billion.

• Funds in custody accounts grew 17.5–18% year-over-year and 2.8% sequentially to DKK 109.2 billion.

• Net interest income rose 13% to DKK 1,368 million; net fee, commission, and FX income increased 11% to DKK 552 million.

• EPS increased by 25–25.1% year-over-year for H1 2024.

Outlook and guidance

• 2024 net profit guidance raised to DKK 2,000–2,350 million, up from previous DKK 1,800–2,200 million.

• Guidance reflects continued strong credit quality and low impairment expectations for the remainder of 2024.

• Outlook subject to financial market and macroeconomic developments.