SPAREBANK 1 SMN (MING) Q3 2024 earnings summary

Executive summary

• Q3 2024 delivered a net profit after tax of NOK 1,441 million, with return on equity at 21.0%, driven by lending growth, robust net interest income, and a NOK 452 million one-time gain from the Fremtind/Eika Insurance merger.

• Pre-tax profit for Q3 2024 was NOK 1,693 million, up from NOK 996 million year-over-year.

• Lending grew 2.2% in Q3, with retail up 1.3% and corporate up 4.6%; deposits declined 1.2%.

• The bank maintains a leading position in Mid-Norway, offering a full suite of financial services with a strong regional presence.

• For the first nine months, net profit was NOK 3,540 million, with ROE at 17.4%.

Financial highlights

• Net interest income reached NOK 1,355 million in Q3 2024, up NOK 129 million year-over-year.

• Total income was NOK 2,578 million, with operating expenses at NOK 810 million.

• Net return on financial investments was NOK 670 million, including the NOK 452 million insurance merger gain.

• Loan losses rose to NOK 75 million in Q3 2024, with an annualized loss ratio of 0.12%.

• Earnings per equity certificate (EC) was NOK 6.42; book value per EC was NOK 124.05.

Outlook and guidance

• Management expects continued growth and strong dividend capacity, supported by a robust and diversified lending portfolio.

• Group targets ROE of at least 13% over time and maintains a long-term CET1 target of 16.3%.

• Norges Bank base rate held at 4.5%; earliest reduction expected in 2025.

• The bank remains focused on digitalization, sustainability, and leveraging its ownership model for future development.

• Expense growth expected to normalize after one-time effects in 2023.