Skjern Bank (SKJE) Q3 2024 earnings summary

Executive summary

• Achieved record result for the first three quarters, with profit before tax of DKK 284.3m, up 10.6% year-over-year, driven by strong growth in net interest and fee income and solid loan growth.

• Net profit after tax reached DKK 211.5m, an increase of DKK 21.6m compared to the same period last year.

• Loan portfolio grew by 14.2% year-over-year, with continued high customer activity and new customer inflow.

• Cost increases mainly due to staff expansion and marketing to support organic growth and new branches.

• Capital position remains strong, with a capital ratio of 24.2% and LCR at 363%.

Financial highlights

• Net interest income rose to DKK 317.3m, up DKK 26.6m year-over-year; net fee and commission income increased to DKK 146.1m.

• Net interest and fee income totaled DKK 479.8m, up 10.9% from the previous year.

• Operating expenses increased by DKK 19.1m to DKK 204.4m, mainly due to higher personnel and administration costs.

• Loan impairments amounted to DKK 9.4m, up from DKK 7.5m last year.

• Return on equity before tax was 17.5%, after tax 12.9%.

Outlook and guidance

• Full-year 2024 guidance for core earnings raised to DKK 340–360m and profit before tax to DKK 340–360m.

• Loan growth for the full year expected at 4–6%, in line with budget.

• Anticipates continued pressure on interest margins in coming quarters as deposit rates are expected to fall.