Q4 2024

Sparebanken Sør

Bar graph with upward trend with solid fill

Serie 1

Serie 2

Net interest income totaled NOK  829  million in Q4 2024, compared with NOK  815  million in Q4 2023, an increase of NOK  14  million. Net interest income decreased from Q3 2024 by NOK  9  million.

Net commission income totaled NOK  118  million in Q4 2024, compared with NOK  105  million in Q4 2023, an increase of NOK  13  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 and is calculated as follows: Profit after tax for the period (adjusted for interest on hybrid capital) divided by average equity (adjusted for hybrid capital). Average equity is calculated during quarters as (opening balance - closing balance)/2. At year-end, average equity is calculated as the average of the previous quarter’s average equity.

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.

Profit / diluted earnings per equity certificate

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 are 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.

Cost/income ratio (Expenses as % of income)

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.

Losses on loans as % of net loans (annualised)

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.

Gross non-performing loans (over 90 days) as % of gross loans

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 an 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 an interest expense on customer deposits divided by average deposits from customers in the period.

Kristiansand, 31 December 2024 / 6 February 2025

Operating expenses totaled NOK  368  million in Q4 2024, compared with NOK  370 million in Q4 2023, a decrease of NOK  2  million.

Over the past 12 months net loans increased by NOK  5.9  billion to a total of NOK  133.4  billion, representing a growth of  4.6  percent. Growth in lending in Q4 2024 was NOK  1.2  billion, representing an annualized growth of  3.6  percent. The bank is well-positioned for further profitable growth. 

Over the past 12 months, customer deposits including accrued interest have increased by NOK  4.9  billion to NOK  74.2  billion, a growth of  7.1  percent. Annualized deposit growth in Q4 2024 amounted to  10.0  percent. 

NOK million	Q4 2024	Q4 2023	31.12. 2024	31.12. 2023
Income statement
Net interest income	829	815	3 315	3 043
Net commission income	118	105	424	400
Net income from financial instruments	-41	-13	28	3
Income from associated companies	36	33	128	99
Other operating income	11	3	18	29
Total net income	953	943	3 913	3 573
Total operating expenses before losses	368	370	1 380	1 297
Operating profit before losses	585	573	2 532	2 276
Losses on loans. guarantees and unused credit	33	31	75	49
Profit before taxes	552	543	2 457	2 227
Tax expenses	127	116	468	454
Profit for the period	425	426	1 989	1 773
Key figures. income statement
Return on equity after tax (adjusted for hybrid capital)	9.8 %	10.5 %	12.1 %	11.3 %
Costs as % of income	38.6 %	39.2 %	35.3 %	36.3 %
Costs as % of income. excl. net income from financial instruments	37.0 %	38.7 %	35.5 %	36.3 %
Net interest income as % of average assets	1.87 %	2.03 %	1.97 %	1.91 %
Key figures. balance sheet
Total assets	176 509	157 407	176 509	157 407
Average total assets	176 000	159 000	168 000	159 000
Net loans to customers			133 441	127 532
Growth in loans as % last 12 mths.			4.6 %	3.0 %
Customer deposits			74 216	69 272
Growth in loans as % last 12 mths.			7.1 %	5.6 %
Deposits as % of net loans			55.6 %	54.3 %
Equity (incl. hybrid capital)			18 040	16 752
Losses on loans as % of net loans. Annualised			0.06 %	0.04 %
Other key figures
Liquidity reserve (LCR) Group			199 %	156 %
Liquidity reserve (LCR) Group- Euro			471 %	310 %
Liquidity reserve (LCR) Parent Bank			162 %	146 %
Common equity tier 1 capital ratio			16.4 %	16.8 %
Tier 1 capital ratio			18.3 %	18.1 %
Total capital ratio			20.7 %	20.3 %
Total common equity tier 1 capital ratio			14 739	14 178
Tier 1 capital ratio			16 447	15 346
Net subordinated capital			18 674	17 193
Leverage ratio			9.1 %	9.0 %
Number of branches			30	31
Number of FTEs in banking operations			535	505
Key figures. equity certificates
Equity certificate ratio. weighted average over the period			40.0 %	40.0 %
Number of equity certificates issued			41 703 057	41 703 057
Profit/diluted earnings per equity certificate (Parent bank)	5.9	5.7	8.2	15.7
Profit/diluted earnings per equity certificate (Group)	3.8	3.9	18.2	16.4
Proposed dividend last year per equity certificate			12.2	10.0
Paid out dividend last year per equity certificate			10.0	6.0
Book equity per equity certificate			157.8	149.9
Price/book equity per equity certificate			1.25	0.96
Listed price on Oslo Stock Exchange at end of period			197.9	144.0

Q4 2024Unaudited

Key figures Group