Rogaland Sparebank (ROGS) Q3 2024 earnings summary

Executive summary

• Rogaland Sparebank was formed by the merger of Sandnes Sparebank and Hjelmeland Sparebank on August 1, 2024, with Sandnes as the acquiring entity and the new name Rogaland Sparebank.

• The bank reported strong results for the first nine months and Q3 2024, with significant growth in lending and profitability.

• The bank is executing a new strategy for 2025–2028, targeting increased market share, higher profitability, and enhanced customer experience, focusing on local presence and social responsibility.

• The bank aims for higher profitability and regional growth, targeting Ryfylke and Nord Jæren, serving a population of 300,000.

• The merger resulted in significant one-time effects, including NOK 35.1 million in direct merger costs and NOK 73.7 million in negative goodwill recognized as income.

Financial highlights

• Profit after tax for 9M24 was NOK 367.3 million, up from NOK 261.4 million in 2023; Q3 2024 profit after tax was NOK 141.3 million (Q3 2023: NOK 92.6 million).

• ROE after tax reached 13.4% for 9M24 (10.7% in 9M23); Q3 2024 ROE was 15.1%.

• EPS for 9M24 was NOK 10.0 (NOK 7.9 in 9M23).

• Lending growth YoY was 16.7%, including the merger; deposit growth was 18.3%.

• Net interest margin improved to 1.95% (1.80% in 9M23).

Outlook and guidance

• Financial targets for 2025–2028 include ROE above 11%, lending growth above 5%, and a payout ratio of 50–100%.

• CET1 target is set at 1.5% above legal requirements, currently 16.8%.

• The bank expects stable net interest margins in coming quarters, assuming steady interest rates.

• The bank aims to grow faster than the market, maintain high customer satisfaction, and achieve operational efficiency without increasing resource use.

• Positive momentum is observed post-merger, with all customers on a unified technology platform and staff well integrated.