Skjern Bank (SKJE) Q2 2024 earnings summary

Executive summary

• Achieved record half-year result with pre-tax profit of DKK 188.8m, up 11.2% year-over-year, driven by strong growth in net interest and fee income and positive market adjustments.

• Net interest and fee income rose 15.0% to DKK 327.8m, reflecting high customer activity and increased lending volume.

• Loan growth of 16.0% to DKK 6,629m since June 2023, with continued strong customer inflow and increased demand from existing clients.

• Operating expenses increased 13.9% due to staff expansion and higher IT costs, in line with strategic growth objectives.

• Credit quality remains solid; impairments decreased to DKK 5.1m from DKK 6.4m year-over-year.

Financial highlights

• Pre-tax profit: DKK 188.8m (DKK 169.8m in H1 2023); net profit: DKK 140.9m (DKK 124.6m in H1 2023).

• Net interest income: DKK 211.9m (+14.2%); net fee income: DKK 99.5m (+5.8%).

• Market adjustments: DKK 10.3m (DKK 16.1m in H1 2023), mainly due to DLR Kredit dividend.

• Operating expenses: DKK 137.8m (+13.9%); average FTEs increased to 196.

• Loans: DKK 6,629m (+16.0%); deposits: DKK 8,406m (+8.0%).

Outlook and guidance

• Full-year 2024 guidance raised to pre-tax profit of DKK 300–330m and operating profit of DKK 320–340m.

• Loan growth for the year expected at 2–4%, in line with budget.

• Continued pressure on interest margins anticipated in coming quarters.