Q3 2024

Sparebanken Sør

Bar graph with upward trend with solid fill

Serie 1

Serie 2

Net interest income totaled NOK  838  million in Q3 2024, compared with NOK  783  million in Q3 2023, an increase of NOK  55  million. Net interest income also increased from Q2 2024 by NOK  15  million.

Net commission income totaled NOK  104  million in Q3 2024, compared with NOK  101  million in Q3 2023, an increase of NOK  3  million.

Operating expenses totaled NOK  338  million in Q3 2024, compared with NOK  298 million in Q3 2023, an increase of NOK  40  million.

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.

Over the past 12 months net loans increased by NOK  6.2  billion to a total of NOK  132.3  billion, representing a growth of  4.9  percent. Growth in lending in Q3 2024 was NOK  1.1  billion, representing an annualized growth of  3.3  percent. The bank is well-positioned for further profitable growth. 

Over the past 12 months, customer deposits including accrued interest have increased by NOK  3.7  billion to NOK  72.4  billion, a growth of  5.4  percent. Annualized deposit growth in Q3 2024 amounted to -8.2  percent. 

NOK million	Q3 2024	Q3 2023	30.09. 2024	30.09. 2023	31.12. 2023
Income statement
Net interest income	838	783	2 486	2 227	3 043
Net commission income	104	101	305	295	400
Net income from financial instruments	10	20	70	16	3
Income from associated companies	42	6	92	66	99
Other operating income	3	23	7	26	29
Total net income	997	935	2 960	2 630	3 573
Total operating expenses before losses	338	298	1 013	928	1 297
Operating profit before losses	660	637	1 947	1 702	2 276
Losses on loans. guarantees and unused credit	23	32	43	18	49
Profit before taxes	637	605	1 905	1 684	2 227
Tax expenses	150	148	341	338	454
Profit for the period	487	457	1 564	1 346	1 773
Key figures. income statement
Return on equity after tax (adjusted for hybrid capital)	11.7 %	11.5 %	12.6 %	11.6 %	11.3 %
Costs as % of income	33.9 %	31.9 %	34.2 %	35.3 %	36.3 %
Costs as % of income. excl. net income from financial instruments	34.2 %	32.6 %	35.0 %	35.5 %	36.3 %
Net interest income as % of average assets	1.96 %	1.95 %	2.02 %	1.87 %	1.91 %
Key figures. balance sheet
Total assets	170 282	158 238	170 282	158 238	157 407
Average total assets	170 000	159 000	166 000	159 000	159 000
Net loans to customers			132 257	126 098	127 532
Growth in loans as % last 12 mths.			4.9 %	2.8 %	3.0 %
Customer deposits			72 413	68 698	69 272
Growth in loans as % last 12 mths.			5.4 %	5.1 %	5.6 %
Deposits as % of net loans			54.8 %	54.5 %	54.3 %
Equity (incl. hybrid capital)			17 808	16 466	16 752
Losses on loans as % of net loans. Annualised			0.04 %	0.01 %	0.04 %
Other key figures
Liquidity reserve (LCR) Group			173 %	155 %	156 %
Liquidity reserve (LCR) Group- Euro			434 %	243 %	310 %
Liquidity reserve (LCR) Parent Bank			144 %	141 %	146 %
Common equity tier 1 capital ratio			16.7 %	17.2 %	16.8 %
Tier 1 capital ratio			18.9 %	18.6 %	18.1 %
Total capital ratio			21.9 %	20.8 %	20.3 %
Total common equity tier 1 capital ratio			14 774	14 207	14 178
Tier 1 capital ratio			16 648	15 376	15 346
Net subordinated capital			19 294	17 252	17 193
Leverage ratio			9.3 %	9.1 %	9.0 %
Number of branches			31	31	31
Number of FTEs in banking operations			531	489	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)	3.5	3.5	8.2	6.5	15.7
Profit/diluted earnings per equity certificate (Group)	4.4	4.2	14.4	12.5	16.4
Proposed dividend last year per equity certificate					10.0
Paid out dividend last year per equity certificate			10.0	6.0	6.0
Book equity per equity certificate			154.1	146.5	149.9
Price/book equity per equity certificate			1.14	0.87	0.96
Listed price on Oslo Stock Exchange at end of period			175.0	128.0	144.0

Q3 2024Unaudited

Key figures Group