SPAREBANK 1 NORDMØRE (SNOR) Q3 2024 earnings summary

Executive summary

• Pre-tax profit for the first nine months of 2024 reached NOK 439 million, up from NOK 259 million or NOK 298 million year-over-year.

• Return on equity increased to 12.5% from 8.2% or 8.5% a year earlier.

• The bank strengthened its position in Møre og Romsdal and Nordvest, with high customer satisfaction and continued loan growth.

• Operates in a region with low unemployment but faces ongoing macroeconomic uncertainty.

Financial highlights

• Net interest income for the first nine months was NOK 510 million, up from NOK 458 million year-over-year.

• Cost/income ratio improved to 39.1%–42% as of Q3 2024, down from 45%–48.2% a year earlier.

• Total assets grew to NOK 38.8 billion as of 30.09.2024, up from NOK 35.7 billion.

• Net commission and other income totaled NOK 184 million, up from NOK 170 million.

• Net return on financial investments was NOK 104 million, up from NOK 22 million.

Outlook and guidance

• The bank is developing a profitability program targeting a return on equity of 10–12% and a cost/income ratio of 40%.

• Expects to maintain strong lending growth and market share, with 12-month loan growth at 8.3%.

• Asset quality remains resilient, but loss models have been updated for more negative economic assumptions.

• Regional economic outlook is positive, especially in Nordvest, but there is sectoral variation and some concern in construction.

• Macroeconomic uncertainty remains, but local economic activity and customer loan performance are strong.