Skjern Bank (SKJE) Q4 2024 earnings summary

Executive summary

• Achieved record profit before tax of DKK 364.6 million, up 6.0% year-over-year, driven by strong net interest and fee income and positive exchange rate adjustments.

• Return on equity reached 22.0% before tax and 16.5% after tax, among the highest in the sector.

• Customer and employee satisfaction remain at sector-leading levels, supporting continued organic growth.

• Lending increased by 3.5% to DKK 6,963 million; deposits surged 7.4% to DKK 8,893 million.

• Dividend proposal of DKK 7 per share (DKK 67.5 million), with a share buy-back program also planned.

Financial highlights

• Net interest and fee income rose 7.0% to DKK 635.0 million; net interest income up 4.7% to DKK 422.1 million.

• Core earnings increased 6.5% to DKK 357.6 million, exceeding guidance.

• Staff and administration expenses grew 9.8% to DKK 280.5 million, reflecting higher activity and IT investments.

• Impairment charges fell to DKK 18.2 million (0.2% of loans/guarantees), with a management estimate of DKK 100 million maintained.

• Exchange rate adjustments contributed DKK 38.0 million, down from DKK 47.2 million in 2023.

Outlook and guidance

• Profit before tax for 2025 expected in the range of DKK 280–310 million, reflecting anticipated lower interest rates and strong competition.

• Core earnings for 2025 guided at DKK 290–310 million, 13–18% below 2024's record level.

• Continued growth in business volume and customer base expected, with focus on maintaining high satisfaction and capital strength.