SpareBank 1 Sør-Norge (SB1NO) Q3 2024 earnings summary

Executive summary

• Completed merger of SR-Bank Group and SpareBank 1 Sør-Norge on October 1, 2024, forming one of Norway's largest savings banks, with full integration expected by autumn 2025.

• Achieved strong Q3 2024 results with robust underlying operations, high lending growth, and significant one-off gains from the Eika Forsikring and Fremtind Forsikring merger.

• Lending volumes and market share continue to grow, supported by positive business sentiment and geographic diversification.

• Appointment of Inge Reinertsen as new CEO effective October 1, 2024.

Financial highlights

• Q3 2024 return on equity after tax was 17.5% (13.6% excluding one-offs); profit after tax was NOK 1,450 million on a standalone basis.

• Net interest income for Q3 2024 was NOK 1,768 million, up NOK 173 million year-over-year.

• Cost-to-income ratio improved to 32.3%, well below the 40% target.

• CET1 capital ratio at 17.8% as of Q3 2024, exceeding requirements.

• Impairments on loans and financial liabilities were NOK 160 million (0.22% of gross lending).

Outlook and guidance

• Confident in continued profitable growth in a strong market area, with subdued housing price growth expected.

• Full system integration targeted for autumn 2025.

• Operational and capital synergies expected, with NOK 2.5 billion in capital synergies identified for 2025.

• Group targets a minimum 13% long-term ROE and cost/income ratio below 40%.