Q1 2024

Sparebanken Sør

Serie 2

Net interest income totaled NOK 824 million in Q1 2024, compared with NOK 712 million in Q1 2023, an increase of NOK 113 million. 

Serie 1

Net commission income totaled NOK 85 million in Q1 2024, compared with NOK 86 million in Q1 2023. 

Operating expenses totaled NOK 330 million in Q1 2024, an increase of NOK 26 million compared to the same period in 2023.

Over the past 12 months net loans increased by NOK 4.3 billion to a total of NOK 128.9 billion, representing a growth of 3.5 percent. Growth in lending in Q1 2024 was NOK 1.3 billion, representing a growth of 4.2 percent. The bank is well-positioned for further profitable growth. 

Over the past 12 months, customer deposits increased by NOK 3.7 billion to NOK 70.5 billion, a growth of 5.5 percent. Annualized deposit growth in Q1 2024 amounted to 7.3 percent. 

ROE provides relevant information on Sparebanken Sør’s profitability by measuring the ability to generate profits from the shareholders’ investments. ROE is one of the Group’s most important financial APMs and is calculated as: Profit after tax for the period (adjusted for interest on hybrid capital) divided by average equity (adjusted for hybrid capital).

Book equity per equity certificate (including dividend)

This key figure provides information on the value of book equity per equity certificate. This enables the reader to assess the reasonableness of the market price of the equity certificate. Book equity per equity certificate is calculated as the equity certificate holders’ share of the equity (excluding hybrid capital) at the end of the period divided by the total number of outstanding certificates.

This key figure provides information on the profit/diluted earnings per equity certificate in the period. Profit per equity certificate is calculated by multiplying profit after tax by the equity certificate ratio, divided by the number of equity certificates issued. Diluted earnings per equity certificate is calculated by multiplying majority interests by the equity certificate ratio, divided by the number of equity certificates issued.

Growth in lending over the last 12 months is a performance measure that provides information on the level of activity and growth in the bank’s lending business. The bank uses Sparebanken Sør Boligkreditt (SSBK) as a source of funding, and this key figure includes loans transferred to SSBK since this better reflects the relevant comparable level of growth. Lending growth is calculated as gross loans incl. loans transferred to SSBK at period-end minus gross loans incl. loans transferred to SSBK as at the same date in the previous year, divided by gross loans incl. loans transferred to SSBK as at the same date.

Growth in deposits over the last 12 months provides information on the level of activity and growth in the bank’s financing of lending activities that is not established in the financial market. Deposit growth is calculated as total deposits at period-end minus total deposits at the same date in the previous year, divided by total deposits at the same date in the previous year.

This ratio is included to provide information on the correlation between income and expenses and is considered to be one of Sparebanken Sør’s most important performance measures. It is calculated as total operating expenses divided by total income.

This measure is used to compare the company’s current market price to its book value. It is frequently used to compare banks and is calculated as Sparebanken Sør’s closing equity certificate price at the end of the period

divided by the book value per equity certificate.

This key figure indicates losses on loans as a percentage of net loans. It is calculated as losses on loans (including losses on loans transferred to SSBK) divided by net loans (including loans transferred to SSBK) at period-end. Where information is disclosed on loan-loss ratios for periods shorter than one year, the ratios are annualised.

This ratio provides relevant information on the bank’s credit exposure. It is calculated as total non-performing exposure (over 90 days) divided by total loans, including loans transferred to SSBK, at period-end.

Measures the group’s average margin on loans, calculated as average lending rate in the period less average 3-month NIBOR for the period. The average lending rate is calculated as interest income from loans to customers divided by average loans to customers in the period.

Measures the group’s average margin on deposits, calculated as the average 3-month NIBOR in the period less average deposit rate in the period. The average deposit rate is calculated as interest expense on customer deposits divided by average deposits from customers in the period.

Bar graph with upward trend with solid fill

NOK million	Q1 2024	Q1 2023	31.12.2023
Income statement
Net interest income	824	712	3 043
Net commission income	85	86	400
Net income from financial instruments	39	-4	3
Income from associated companies	5	34	99
Other operating income	3	1	29
Total net income	956	828	3 573
Total operating expenses before losses	330	304	1 297
Operating profit before losses	626	525	2 276
Losses on loans. guarantees and unused credit	6	-5	49
Profit before taxes	620	529	2 227
Tax expenses	47	67	454
Profit for the period	573	462	1 773
Key figures. income statement
Return on equity after tax (adjusted for hybrid capital)	14.4 %	12.5 %	11.3 %
Costs as % of income	34.5 %	36.7 %	36.3 %
Costs as % of income. excl. net income from financial instruments	36.0 %	36.5 %	36.3 %
Net interest income as % of average assets	2.07 %	1.85 %	1.91 %
Key figures. balance sheet
Total assets	161 902	154 406	157 407
Average total assets	160 000	156 100	159 000
Net loans to customers	128 869	124 558	127 532
Growth in loans as % last 12 mths.	3.5 %	5.6 %	3.0 %
Customer deposits	70 527	66 857	69 272
Growth in loans as % last 12 mths.	5.5 %	3.3 %	5.6 %
Deposits as % of net loans	54.7 %	53.7 %	54.3 %
Equity (incl. hybrid capital)	16 862	15 857	16 752
Losses on loans as % of net loans. Annualised	0.02 %	-0.01 %	0.04 %
Other key figures
Liquidity reserve (LCR) Group	150 %	145 %	156 %
Liquidity reserve (LCR) Group- Euro	239 %	210 %	310 %
Liquidity reserve (LCR) Parent Bank	134 %	134 %	146 %
Common equity tier 1 capital ratio	16.6 %	17.1 %	16.8 %
Tier 1 capital ratio	18.6 %	18.7 %	18.1 %
Total capital ratio	20.7 %	21.1 %	20.3 %
Total common equity tier 1 capital ratio	14 428	13 888	14 178
Tier 1 capital ratio	16 110	15 144	15 346
Net subordinated capital	17 967	17 097	17 193
Leverage ratio	9.3 %	9.2 %	9.0 %
Number of branches	31	31	31
Number of FTEs in banking operations	511	491	505
Key figures. equity certificates
Equity certificate ratio. weighted average over the period	40.0 %	40.0 %	40.0 %
Number of equity certificates issued	41 703 057	41 703 057	41 703 057
Profit/diluted earnings per equity certificate (Parent bank)	4.6	3.5	15.7
Profit/diluted earnings per equity certificate (Group)	5.3	4.3	16.4
Proposed dividend last year per equity certificate	10.0	6.0	10.0
Paid out dividend last year per equity certificate			6.0
Book equity per equity certificate	145.2	139.2	149.9
Price/book equity per equity certificate	0.96	0.92	0.96
Listed price on Oslo Stock Exchange at end of period	139.0	128.0	144.0

Q1 2024

Key figures Group