SPAREBANK 1 ØSTFOLD AKERSHUS (SOAG) Q3 2024 earnings summary

Executive summary

• Pre-tax profit for Q3 2024 was 288 MNOK, up from 152 MNOK in Q3 2023 and 171 MNOK in Q2 2024.

• Net profit after tax for the first nine months was NOK 526 million, up from NOK 378 million year-over-year.

• Achieved return on equity of 15.7% YTD, exceeding the >10% target.

• Notable one-off gains: 64 MNOK from insurance merger and 51 MNOK from share sale.

• Solid capital position with CET1 ratio at 18.2%, above the 16% target.

Financial highlights

• Net interest income for Q3 2024 was strong, contributing to overall profitability.

• Net commission and other income increased to 284 MNOK YTD.

• Cost/income ratio improved to 36.5% in Q3 2024, down from 41.1% in Q3 2023.

• Loan losses in Q3 2024 totaled 19-23 MNOK, mainly from a single corporate exposure and model adjustments.

• Net return on financial instruments reached 195 MNOK, mainly from insurance merger and share sale.

Outlook and guidance

• No resolution yet regarding new Pillar 2/SREP capital requirements for the group.

• Dividend payout policy remains up to 50% of parent bank profit if capital is sufficient.

• Loan growth in the retail market has picked up, but competition remains strong, putting pressure on margins.