Voss Veksel- og Landmandsbank (VVL) Q2 2024 earnings summary

Executive summary

• Result before losses for Q2 2024 reached NOK 60.1 million, up NOK 15.7 million year-over-year.

• Profit before tax was NOK 59.0 million (NOK 42.2 million in Q2 2023); profit after tax was NOK 44.2 million (NOK 32.4 million in Q2 2023).

• Total comprehensive income for H1 2024 was NOK 41.3 million, up from NOK 32.2 million last year.

• Strong underlying operations, loan growth, cost control, and increased other income contributed to improved results.

Financial highlights

• Net interest and credit commission income for H1 2024 was NOK 67.3 million, up NOK 5.1 million year-over-year.

• Net other operating income was NOK 25.3 million, up NOK 8.3 million from Q2 2023, mainly due to higher financial instrument gains.

• Operating expenses decreased to NOK 32.4 million (NOK 34.7 million in Q2 2023), with lower other operating costs offsetting higher personnel expenses.

• Net loan losses and impairments were NOK 1.2 million, down from NOK 2.2 million in Q2 2023.

• Customer deposits at quarter-end were NOK 4,496 million, up 6.6% year-over-year; deposit coverage ratio was 80.9%.

• Gross loans including Eika Boligkreditt reached NOK 6,157 million, up 4.2% year-over-year.

Outlook and guidance

• The board expects continued satisfactory results, supported by solid core operations and a stable local market.

• Ongoing high inflation and interest rates, as well as geopolitical uncertainty, are expected to delay rate cuts until 2025.

• Conservative risk profile in securities portfolio has ensured low losses.