SPAREBANK 1 ØSTFOLD AKERSHUS (SOAG) Q4 2024 earnings summary

Executive summary

• Return on equity reached 14.3% in 2024, exceeding the >10% target and up from 11.4% in 2023.

• Pre-tax profit for 2024 was NOK 795 million, up from NOK 635 million in 2023.

• Net profit after tax for 2024 reached NOK 651 million, up from NOK 493 million year-over-year.

• Strong lending growth in both retail (5.1%) and corporate (10.3%) segments.

• Proposed dividend per equity certificate is NOK 20.10, representing 50% payout of parent bank profit.

Financial highlights

• Net interest income remained strong, with a stable net interest margin of 2.63% in Q4 2024.

• Net interest income including commissions from credit institutions was NOK 827 million, margin stable at 1.93%.

• Net commission and other operating income rose 7% year-over-year, driven by real estate and accounting services.

• Net gains on financial instruments, including shareholdings, totaled NOK 220 million, driven by insurance merger and share sales.

• Operating expenses increased to NOK 521 million, mainly due to higher headcount.

Outlook and guidance

• Targeting return on equity above 10% and CET1 ratio above 16% going forward.

• Dividend policy unchanged: 50% of parent bank profit to be distributed as dividends and gifts.

• Awaiting regulatory clarity on new capital requirements (SREP) and CRR3 implementation, expected to improve CET1 ratio by 1–2 percentage points.

• Lending growth in the retail segment is strong entering 2025; corporate market share gains continue.

• No resolution yet on new Pillar 2 capital requirement for the group.