SPAREBANK 1 NORDMØRE (SNOR) Q2 2024 earnings summary

Executive summary

• Achieved strong results in a turbulent period, with robust underlying operations and cost reductions.

• Maintains a solid regional presence with 9 branches and over 50,000 customers, focusing on local and regional development.

• Pre-tax profit reached NOK 245 million for H1 2024, up from NOK 187 million year-over-year.

• Return on equity for the group was 10.3% (8.2% last year); for the parent bank, 10.0% (8.4%).

• Net interest income increased to NOK 336 million (NOK 294 million), with a margin of 2.44%.

Financial highlights

• Profit before tax for H1 2024 reached NOK 245 million, up from NOK 181 million year-over-year.

• Net interest income for H1 2024 was NOK 336 million, up from NOK 294 million in H1 2023.

• Cost/income ratio improved to 42.5% from 49.4% year-over-year.

• Total assets under management increased to NOK 38.96 billion as of June 30, 2024.

• Loan growth over 12 months was 8.1%, while deposit growth slowed to 0.8%.

Outlook and guidance

• Macroeconomic uncertainty persists, but the bank maintains strong liquidity and capital positions.

• Management targets a return on equity of 10–12% and a cost/income ratio of 40% through a profitability program.

• Bank expects to maintain strong loan growth and market share, targeting 8%+ annual loan growth.

• Cost reduction and profitability programs are ongoing, with further improvements expected.

• Macroeconomic uncertainty remains due to global tensions, inflation, and interest rate outlook.