Sparebank 68 Grader Nord (SB68) Q4 2024 earnings summary

Executive summary

• Net profit after tax for 2024 was NOK 141.1 million, up from NOK 127.7 million in 2023, driven by improved core operations and higher net interest income.

• Return on equity after tax reached 9.4% in 2024, compared to 9.1% in 2023.

• Total assets increased to NOK 12,118 million, a 3.2% rise from the previous year.

• The bank maintained strong community engagement, with NOK 37.4 million distributed in sponsorships and grants.

• The board proposes a dividend of NOK 12.0 per equity certificate for 2024.

Financial highlights

• Net interest and credit commission income rose to NOK 305.7 million (2.56% of avg. assets), up from NOK 282.6 million (2.48%) in 2023.

• Net other operating income was NOK 53.6 million, mainly from gains on currency, financial instruments, and fees.

• Total operating expenses increased to NOK 154.1 million, up from NOK 135.0 million, due to inflation, higher staffing, and increased costs in foreign currency.

• Net loan losses and provisions were NOK 15.8 million, down from NOK 20.6 million in 2023.

• Customer deposits grew by 3.4% to NOK 7,947 million; loan portfolio (net) increased by 2.88% to NOK 10,354 million.

Outlook and guidance

• Norwegian interest rates are expected to decrease in 2025, but uncertainty remains due to global economic developments and US policy.

• The bank anticipates continued low unemployment and stable economic activity in its core regions, with some recovery expected in the construction sector.

• The bank’s diversified loan portfolio and strong capital position support continued growth and resilience.