Rogaland Sparebank (ROGS) CMD 2024 Presentation summary

Strategy and vision

• Rogaland Sparebank aims to be the most attractive bank in Rogaland for customers, employees, owners, and society, focusing on strong branding, customer experience, and social responsibility.

• The bank's strategy for 2025–2028 targets profitable growth, increased market share, and a return on equity (ROE) above 11%.

• Emphasis is placed on local presence, personal service, and digital solutions to enhance customer satisfaction and operational efficiency.

• The bank is uniting brands from previous mergers to strengthen its regional identity and visibility.

• Social responsibility initiatives include a gift fund, sponsorships, and active ESG advisory for customers.

Financial performance and targets

• ROE reached 13.4% for the first nine months of 2024, with profit after tax at MNOK 367.3 and lending growth of 16.7% YoY, reflecting the merger impact.

• Net interest margin improved to 1.95% in 9M24, with a deposit-to-loan ratio of 51% and CET1 at 17.5%.

• Operating costs remain stable, with a cost-to-income ratio of 35% for 9M24, and identified merger synergies expected to yield annual savings of about MNOK 30 from 2026.

• Dividend payout ratio has averaged 70% since 2017, with a total dividend per equity certificate of 37.85 kr over the period.

• Financial targets for 2025–2028 include ROE >11%, lending growth >5%, and CET1 at least 1.5% above regulatory requirements.

Lending, risk, and portfolio

• Retail loans now comprise 75% of the portfolio, with low exposure to cyclical industries and minimal direct oil industry risk.

• Lending growth is strong in both retail and corporate segments, with retail lending up 7.6% YoY and corporate lending up 8.2% YoY in 3Q24.

• Non-performing loans remain low in ordinary retail, with higher but expected levels in the restart bank (Balansebank), which serves higher-risk customers.

• Losses on loans and guarantees are stable and low, with some one-off effects in 2024 due to model adjustments.

• The average loan size in retail is MNOK 2.8, and 78% of the portfolio has LTV below 75%.