SPAREBANK 1 NORDMØRE (SNOR) Q4 2024 earnings summary

Executive summary

• Achieved record pre-tax profit of NOK 597 million in 2024, up from NOK 267 million (or NOK 409 million) in 2023, with improved profitability and a strengthened market position in Mid-Norway.

• Return on equity rose to 12.6% (8.6% in 2023), exceeding targets.

• Strong loan growth of 7.9% and deposit growth of 3.0% over 12 months.

• Maintained high customer satisfaction, robust operations, and an 'A-' rating with a stable outlook.

• Cost reduction initiatives led to lower operating expenses despite inflation and tech investments.

Financial highlights

• Net interest income for 2024 was NOK 683 million (NOK 626 million or NOK 682 million in 2023); net interest margin rose to 2.45%.

• Cost/income ratio improved to 34% (parent bank) and 38.3% (group) at year-end 2024.

• Total lending grew to NOK 34.6 billion, with 12% year-over-year growth.

• Net commission and other income totaled NOK 249 million (NOK 222 million in 2023).

• Loan loss provisions increased to NOK 78 million, with a loss ratio of 0.33%.

Outlook and guidance

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

• Expectation of interest rate cuts in 2025, with improved prospects for construction and real estate sectors.

• Anticipate lower loan losses in 2025 due to better sector outlooks.

• Continued focus on profitability programs and cost efficiency into 2025.

• Regional economic outlook remains positive, especially in Nordvest, but with sectoral variations.