SPAREBANK 1 NORDMØRE (SNOR) CMD 2024 summary

Financial performance and key developments

• Achieved strong loan growth and underlying operations, with reduced costs and very good liquidity in 1H 2024.

• Loan portfolio grew to NOK 33.6bn, with a 12-month growth of 8.1%; deposit growth was NOK 659m in 1H 2024.

• Net interest income increased by NOK 43m year-over-year, with cost/income ratio improving to 42.5% (from 49.4%).

• Return on equity reached 10.3% (up from 8.3%), and cost reductions were achieved despite wage and price inflation.

• One bank branch was closed, and the profitability program remains a focus.

Strategic direction and future outlook

• Maintains focus on profitability, efficiency, and responsible banking, targeting >11% ROE and <40% cost/income (parent bank).

• Aims for >16.7% CET1 ratio and 50–70% dividend payout, with a net zero climate footprint by 2050.

• Regional market outlook remains positive, with low unemployment (1.9%) and strong performance in marine industries.

• Continues to see stable credit quality, with total non-performing loans at 2.14% of gross loans.

• Bank is well-positioned for growth in a market stretching from Ålesund to Trondheim.

Capital, funding, and risk

• CET1 ratio at 16.75%, above the regulatory requirement of 15.24% and board target of 16.74%.

• Funding structure diversified, with NOK 5.8bn in senior bonds and NOK 550m in subordinated loans.

• 10.8bn NOK in loans transferred to credit institutions, up NOK 2.4bn from Q2 2023.

• Loan loss provisions at 0.33% of gross loans; total provisions increased to NOK 108m.

• Non-performing loans over 90 days at 1.22% of gross loans, with overall stable risk profile.