Sparebank 68 Grader Nord (SB68) Q3 2024 earnings summary

Executive summary

• Net profit after tax for Q3 2024 was NOK 98.4 million, up slightly from NOK 97.9 million in Q3 2023.

• Return on equity (annualized) was 8.8%, down from 9.3% year-over-year.

• The board considers the Q3 2024 result satisfactory, with improved net interest income and intensified follow-up on losses and defaults.

Financial highlights

• Operating profit before tax for Q3 2024 was NOK 134.2 million, up from NOK 131.0 million in Q3 2023.

• Net interest income rose to NOK 226.9 million (2.53% of avg. assets), up from NOK 204.3 million (2.38%) year-over-year.

• Net commission and other operating income was NOK 36.9 million, nearly unchanged from NOK 36.8 million last year.

• Operating expenses increased to NOK 111.4 million from NOK 94.9 million, mainly due to wage and price growth, increased staffing, and higher IT costs.

• Loan losses and impairments were NOK 18.1 million, up from NOK 15.2 million year-over-year.

Outlook and guidance

• The bank expects continued pressure on net interest margins due to strong competition and low credit growth.

• The macro environment is marked by ongoing wars in Europe and the Middle East, with declining inflation in Norway and expected rate cuts in 2025.

• The board assesses the bank's core operations as robust and well-positioned to handle future challenges in operations, liquidity, and capital.