SPAREBANK 1 NORD-NORGE (NONG) Q4 2024 earnings summary

Executive summary

• Pre-tax profit reached 4,512 MNOK for 2024, up from 3,273 MNOK year-over-year, with ROE at 21.8% versus 16.4% last year.

• Profit after tax rose to NOK 3,663m, up 44% year-over-year, with quarterly profit after tax at NOK 852m.

• Cost/income ratio improved to 30.2% from 35.0% year-over-year, reflecting effective cost control.

• Lending growth continued, with retail lending up 5.6% and corporate lending up 3.8% year-over-year.

• The bank remains well-capitalized, maintaining a strong market position in Northern Norway.

Financial highlights

• Net interest income for 2024 was 4,028 MNOK, up from 3,627 MNOK year-over-year.

• Net fee and other operating income totaled 1,541 MNOK, up from 1,404 MNOK year-over-year.

• Net income from financial investments surged to NOK 1,056m from NOK 183m, driven by gains in associated companies and portfolio revaluations.

• Total costs were 2,003 MNOK, up from 1,825 MNOK year-over-year.

• Loan losses remained low at 110 MNOK, down from 116 MNOK year-over-year.

Outlook and guidance

• Net interest income expected to remain strong in 2025, supported by stable policy rates and robust deposit margins.

• ROE for 2025 expected to remain at target-achieving levels, with continued low losses and cost growth reduction.

• Moderate growth expected in Corporate Market; Retail Market expected to gain market share despite macroeconomic challenges.

• Interest rates in Norway anticipated to decrease in 2025, supporting improved margins and economic activity.

• Cost measures implemented to reduce expenses by 40-50 MNOK by 2027, with effects starting in 2025.