Voss Veksel- og Landmandsbank (VVL) Q4 2024 earnings summary

Executive summary

• Delivered best annual pre-tax profit in nominal terms, with pre-tax profit for 2024 at NOK 118.0 million, up from NOK 101.1 million in 2023.

• Net profit after tax for 2024 was NOK 90.8 million, up from NOK 77.7 million in 2023.

• Total comprehensive income for Q4 2024 was NOK 87.7 million, compared to NOK 84.6 million last year.

• Return on equity after tax (adjusted for hybrid capital) was 12.3%, up from 11.3% last year, driven by strong core operations and loan growth.

Financial highlights

• Net interest and credit commission income for Q4 was NOK 47.2 million, up from NOK 36.7 million in Q4 2023; for the year, NOK 138.7 million, up NOK 5.7 million year-over-year.

• Net other operating income totaled NOK 53.0 million, up NOK 10.4 million from last year.

• Operating expenses were NOK 71.7 million, with personnel costs rising and other operating costs falling.

• Total assets increased to NOK 6,492.9 million at year-end, up NOK 225.1 million from 2023; total assets under management including loans transferred to Eika Boligkreditt reached NOK 7,316 million, up NOK 446 million (+6.5%).

• Earnings per share for 2024 were NOK 38.91, compared to NOK 33.04 in 2023.

Outlook and guidance

• Underlying operations show positive development, supporting continued growth and profitability.

• The board expects continued satisfactory results, supported by solid core operations, a stable local market, and strategic focus on quality growth, increased other income, and cost reductions.

• Ongoing geopolitical tensions and high inflation increase uncertainty, but the bank maintains a conservative risk profile and has adjusted loan loss provisions accordingly.

• Dividend payout ratio guidance remains at 40–50% of annual profit, subject to capital adequacy.