Correction: Mistakes have been found in Note 19 “Proforma results from quarterly accounts”. The note has now been updated with corrections. In the presentation on page 17, the text in the introduction has been changed to: “Proforma calculations imply an increase in NII from the previous quarter of 4.7 %, including commissions from covered bond companies.”
SpareBank 1 Østlandet achieved a consolidated profit after tax of NOK 3 356 million (NOK 2 222 million) in 2024. The return on equity was 15.8 % (11.3 %). This is the highest return for the group in 30 years. A solid development in the bank’s core business is behind the good result, in addition to accounting effects from the merger between Fremtind Forsikring and Eika Forsikring.
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In addition to good results, the group also experienced significant events during the past year. The year began with the news on 3 January of a signed letter of intent for a merger with Totens Sparebank. Extensive work on the merger plans was carried out throughout the year, leading to the legal merger being completed as intended on 1 November 2024.
Last autumn, the bank signed a new agreement to be the preferred bank for delivering LOfavør products to LO members. On 1 October, the market area was expanded southwestward by crossing the county borders to Buskerud and establishing an office in Drammen. The group has also decided to merge our three real estate agencies during the first half of 2025 to create a unified effort under the EiendomsMegler 1 Østlandet brand. On 1 April, Klara-Lise Aasen took over as the new Group CEO, succeeding Richard Heiberg.
The group met all its financial targets in 2024. The return on equity exceeded the revised target of 13 %. The bank’s CET-1 capital ratio at the end of 2024 was 16.8 %, compared to a solidity target of 16.1 %. The bank’s Board of Directors proposes a cash dividend of NOK 10.30 (NOK 7.80) per equity capital certificate, which is about 60 % of the owners’ share of the profit – compared to a targeted dividend share of at least 50%.
Furthermore, the Board of Directors is proposing to the Supervisory Board to pay a customer dividend of NOK 470 million (NOK 381 million) and to allocate NOK 42 million (NOK 6 million) for gifts. The bank places great emphasis on distributing significant funds to the local community. Customer dividends are an effective way to give back to the community we are part of, along with gift allocations and the activities of the savings bank foundations.
SpareBank 1 Østlandet’s group profit after tax for the fourth quarter of 2024 was NOK 701 million (NOK 574 million). The return on equity was 11.5 % (11.3 %). The underlying development in the bank’s results was very solid, with good growth in both net interest income and commission income.
The bank experienced solid housing mortgage loan growth during the quarter. Underlying growth in the mortgage portfolio was just below 2 %. The good development seems to have continued into 2025, with a large number of mortgage applications submitted in January. The volume development in the corporate market was weaker in the fourth quarter, reflecting low market growth. However, there are signs of stronger growth in the coming quarters.
The fourth quarter was another quarter with high commission income. Turnover for the real estate agents was helped by good market growth, but also increased market shares. Insurance commissions are at their highest ever, driven by increased insurance premiums, good sales, and lower claims payments.
Loss costs were NOK 122 million (NOK 39 million) in the fourth quarter. As in the previous quarter, a known engagement with previous provisions was the reason for unusually high individual loss provisions.
The group’s operating costs in the fourth quarter were NOK 764 million (NOK 594 million). The increase in operating costs in the parent bank by NOK 100 million from the same quarter in 2023 was mainly due to the inclusion of Totens Sparebank’s cost base and integration costs. There was also high growth in personnel costs outside Totens Sparebank related to increased investments in customer-facing positions primarily made at the beginning of 2024, as well as increased resources related to compliance. In addition, IT costs increased, especially via the alliance. In the subsidiaries, the quarter was characterized by large extraordinary costs, in the form of write-downs and provisions just below NOK 40 million.
“The activity level in our core business has been high also through the last quarter of the year. Commission income from savings, insurance, and real estate brokerage is strong, and at the end of the year, we have volume growth in both deposits and loans that is higher than market growth. We had the pleasure of welcoming 82 new colleagues from Totens Sparebank from 1 November, and we are well underway with the important integration work, which will further strengthen our customer relationships in the Lake Mjøsa-region. In October, we opened a new office in Drammen to strengthen our presence in this growth region. The reception in a city with strong bank competition has exceeded all expectations and yielded good results so far. I am grateful that customers continue to show us trust, also through a good start to 2025,” says CEO Klara-Lise Aasen
Q4 2024 (Consolidated figures. Figures in brackets concern the corresponding period in 2024)
• Profit after tax: NOK 701 (574) million
• Return on equity: 11.5 (11.3) per cent
• Earnings per equity capital certificate: NOK 3.71 (3.32)
• Net interest income: NOK 1 179 (1 005) million
• Net commissions and other operating income: NOK 442 (319) million
• Net income from financial assets and liabilities was NOK 140 (77) million.
• Total operating expenses: NOK 764 (594) million
• Net loan loss provisions were NOK 122 (39) million
• Lending growth in the last quarter, including mortgages transferred to the covered bond companies: 12.3 (1.4) per cent
• Deposit growth in the last quarter: 12.4 (-1.9) per cent
• Common Equity Tier 1 capital ratio: 16.8 (17.0) per cent
• The Bank’s green loans (incl. loans transferred to the covered bond companies) amounted to NOK 44 (39) billion at the end of the fourth 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
This information must be disclosed pursuant to section 5-12 of the Securities Trading Act.
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