Sparebank 68 Grader Nord (SB68) Q2 2024 earnings summary

Executive summary

• Net profit after tax for Q2 2024 was NOK 66.7 million, slightly down from NOK 68.1 million in Q2 2023.

• Return on equity annualized at 9.0% versus 9.9% in the same period last year.

• The bank's board considers the Q2 2024 result satisfactory, with improved net interest income and intensified monitoring of credit losses.

• The bank remains well-capitalized and continues to focus on local presence and customer advisory services.

Financial highlights

• Net interest and credit commission income for H1 2024 was NOK 148.7 million, up from NOK 129.9 million year-over-year.

• Operating expenses increased to NOK 72.3 million from NOK 63.1 million, mainly due to wage and price growth, increased staffing, and higher IT costs.

• Net loan losses were NOK 9.2 million for H1 2024, up from NOK 1.5 million in H1 2023.

• Total assets at June 30, 2024, were NOK 11,962 million, a 4.0% increase over the past 12 months.

• Customer deposits at quarter-end were NOK 7,922 million, up NOK 51 million year-over-year.

Outlook and guidance

• The board expects continued pressure on net interest margins due to strong competition and lower market growth.

• The personal banking portfolio remains robust, but uncertainty is highest in commercial real estate, construction, and retail sectors.

• The bank is committed to strengthening its role in sustainability and expects challenges in achieving growth and margins during the transition to a greener loan portfolio.

• The bank is well-positioned to handle future challenges in operations, liquidity, and capital adequacy.