SJF Bank (SJF) Q2 2024 earnings summary

Executive summary

• Result before tax reached DKK 415.2 million, up 22% year-over-year, with after-tax profit at DKK 311.2 million, yielding a 14.1% return on equity.

• Core earnings increased by 40% compared to the same period last year, driven by higher lending and deposit rates.

• Net interest income rose 21% to DKK 479.2 million, and fee and commission income grew 4% to DKK 322.0 million.

• Total business volume increased by 6% over the past 12 months.

• Strategic focus on cost efficiency and digitalization continues, with ongoing investments in staff development and customer experience.

Financial highlights

• Net interest and fee income reached DKK 852.5 million, up 19% year-over-year.

• Operating expenses rose 6% to DKK 429.2 million.

• Loan impairments amounted to DKK 9.3 million, with management overlays at DKK 169.7 million.

• Loans increased 5% to DKK 12.7 billion, and deposits rose 2% to DKK 21.5 billion.

• Cost/income ratio improved to 54.0% from 61.2% year-over-year.

Outlook and guidance

• Full-year 2024 pre-tax profit guidance raised to DKK 700–800 million due to strong business activity and robust credit quality.

• Core earnings expected to grow 20–25% in 2024, driven by higher net interest income and cost reductions.

• Anticipates increased activity in H2 2024, especially if interest rates fall.

• Strategic target to reduce cost/income ratio below 50% by 2026 remains in place.

• Guidance subject to uncertainty regarding loan impairments and interest rate developments.