SpareBank 1 Østlandet’s profit after tax for the second quarter of 2024 was NOK 716 (579) million. Return on equity was 14.2 (12.2) percent.
Strong growth in interest income contributed to the solid improvement in results from last year. Net interest income, including commissions from covered bond companies, was NOK 1 098 million, an increase of 19.9 percent compared to the same quarter last year.
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The improvement in net interest income is supported by the development in the bank’s lending volume. Compared to the first quarter, loans to retail and corporate customers grew by 2.1 and 2.2 percent, respectively, and for the first time, SpareBank 1 Østlandet’s total lending volume exceeded NOK 200 billion.
«The good results are due to the dedicated efforts of everyone who works in the Group. SpareBank 1 Østlandet has increased the number of customers in both the retail and corporate markets over the past quarter. In June, SpareBank 1 Østlandet was ranked in the top three on customer service, and I want to thank all our customers for the trust you demonstrate in us every day» says Group CEO Klara-Lise Aasen.
The underlying development in commission income is also good, partly driven by strong results in the bank’s subsidiaries. Commissions from the real estate agents were at their highest ever in the second quarter, with increased activity in the existing housing market. The acquisition of the accounting and advisory firm Siffer continues to result in improved results for SpareBank 1 ForretningsPartner Østlandet AS.
The group’s operating expenses in the second quarter were NOK 636 million. The figures are affected by a NOK 30 million fine from the Norwegian Financial Supervisory Authority, the purchase of Siffer, increased commission-based pay for real estate agents, and a reclassification of the bank’s share of alliance costs. Nevertheless, underlying cost growth is higher than desirable, and the upcoming integration with Totens Sparebank will contribute to further cost pressure in the short term.
«In order to continue to win the trust of customers, we must have the capacity to develop further in order to meet their future needs. Loyal, satisfied customers are developed through long-term efforts, forward-thinking digital solutions and capable, committed and locally-based advisers. Customers must experience safe, simple solutions and feel that we always focus on what is in the customer’s best interests» says Aasen.
The Board of Directors of SpareBank 1 Østlandet has decided to increase the bank’s target for profitability, from at least 12 to at least 13 percent return on equity. This is a more ambitious target than previously. The adjustment requires increased efficiency across all operational areas. A strengthened cost focus will be a central element of the bank’s strategic work going forward. In order to clarify the flexibility of the bank’s dividend policy and as a natural consequence of an increased target for return on equity, the bank also adjusts its dividend policy, so that the long-term ambition is now for a payout ratio of at least 50 percent.
«Together with our customers, we want to create value for society, employees and owners and contribute to sustainable development» says Group CEO Klara-Lise Aasen.
Q2 2024 (Consolidated figures. Figures in brackets concern the corresponding period in 2023)
• Profit after tax: NOK 716 (579) million
• Return on equity: 14.2 (12.2) per cent
• Earnings per equity capital certificate: NOK 4.09 (3.37)
• Net interest income: NOK 1 008 (852) million
• Net commissions and other operating income: NOK 446 (412) million
• Net income from financial assets and liabilities: NOK 142 (117) million
• Total operating expenses: NOK 636 (534) million
• Net loan loss provisions were NOK 39 (86) million.
• Lending growth in the last quarter, including mortgages transferred to the covered bond companies: 2.1 (2.0) per cent
• Deposit growth in the last quarter: 6.6 (5.5) per cent
• CET1 capital ratio: 16.8 (17.9) per cent
• The Bank’s green loans (incl. loans transferred to the covered bond companies) amounted to NOK 42.6 (36.1) billion at the end of the second quarter
Contact information:
Klara-Lise Aasen, Group CEO, Tel.: +47 476 35 583
Geir-Egil Bolstad, CFO, Tel.: +47 918 82 071
Bjørn-Erik Orskaug, Head of Investor Relations, Tel.: +47 922 39 185
Siv Stenseth, EVP Communication and Social Affairs, Tel.: +47 958 46 991
This information must be disclosed pursuant to section 5-12 of the Securities Trading Act.
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