Increased market shares for Sparebanken Møre

30 Jan 2025 07:00 CET

The bank enjoyed a year of good lending growth and increased market shares. The
preliminary financial figures for 2024 show a profit after tax for the year of
NOK 1,086 million. The return on equity was 13.7 per cent and the bank is
financially solid with a Common Equity Tier 1 capital ratio of 17.2 per cent.

The Board of Directors is planning to propose a cash dividend per equity
certificate for the 2024 financial year of NOK 6.25, NOK 311 million in total.
The corresponding provisions for dividend funds for local communities will
amount to NOK 332 million.

Increased market shares
Sparebanken Møre is a market leader in our region Nordvestlandet and further
strengthened its position in 2024. Its share of the county’s retail market had
increased to 26.2 per cent at the end of 2024.

“We have left behind a busy year with solid increases in market shares in the
region. While a steadily increasing number of people are comfortable using our
digital solutions, our frontline consists of committed and knowledgeable
advisers. Rapid response times and good expertise are noticed by everyone and
appreciated by customers,” says Nydal, pointing out that in 2024 the bank won
the national Customer Service Award for banking for the sixth year in a row.

The bank’s overall lending growth remains satisfactorily high and is markedly
above the national market growth rate. The 12-month growth rate was 6.5 per cent
at the end of 2024, while the deposit growth was 4.5 per cent.

Low losses and credit-impaired commitments
Compared with 2023, the number of payment deferrals in the retail market
decreased in 2024. The ‘Grep’ unit was established in 2023 to assist mortgage
customers who require closer follow-up in order to sort out their personal
finances. Losses and credit-impaired commitments were low and stable in most
sectors in the corporate market. The total loss figure for the year was low at
NOK 20 million.

“Close follow-up from advisers with specialist expertise in both the retail and
corporate markets contribute to low level of losses and credit-impaired
commitments” says Nydal.

Efficient operations
Using digital solutions and more AI in routine tasks are important areas for
streamlining processes and reducing expenses. Operating expenses were lower in
the fourth quarter than in the corresponding period in 2023.

“At the end of the year, around half of our customers were applying for loans
digitally. We will continue to simplify solutions that provide value for
customers and streamline operations in the future,” says Nydal.

High levels of activity in Nordvestlandet
The overall picture for the Norwegian economy remains relatively solid, and the
levels of activity in Nordvestlandet are relatively high compared with other
parts of the country. This is in part due to the weak Norwegian krone exchange
rate, which has boosted activity in export industries and tourism.

Gradually falling interest rates combined with better household purchasing power
are expected to contribute to a modest rise in the growth rate over the next few
years. At the same time, there is some uncertainty surrounding the international
picture. However, the outlook for the Norwegian economy, and not least
Nordvestlandet, is still considered good.

Increases long-term profitability target
For the strategy period up to 2028, the Board of Directors of Sparebanken Møre
increases the long-term target of Return on Equity from 12 to 13 per cent, while
other long-term financial targets are kept unchanged.


Key figures – Q4 2024
• Net interest income: NOK 522 million/2.04 per cent (NOK 506 million/2.11 per
cent)
• Profit before loss: NOK 354 million (NOK 335 million)
• Profit after tax: NOK 251 million (NOK 340 million)
• Return on equity: 12.2 per cent (17.8 per cent)
• Cost income ratio: 40.0 per cent (42.0 per cent)
• Earnings per equity certificate (Group): NOK 2.03 (NOK 3.28)

Comparable figures for Q4 2023 in brackets.


Key figures – preliminary financial statements for 2024
• Net interest income: NOK 2,071 million/2.08 per cent (NOK 1,900 million/2.02
per cent)
• Profit before loss: NOK 1,446 million (NOK 1,336 million)
• Profit after tax: NOK 1,086 million (NOK 1,055 million)
• Return on equity: 13.7 per cent (14.0 per cent)
• Cost/income ratio: 39.8 per cent (39.2 per cent)
• The earnings per equity certificate (Group): NOK 9.95 (NOK 10.12).
• Common Equity Tier 1 capital ratio: 17.2 per cent (18.2 per cent)
• Lending growth in the past 12 months: 6.5 per cent (7.2 per cent)
• Deposit growth in the past 12 months: 4.5 per cent (8.0 per cent)

Comparable figures for 2023 in brackets.


Contacts
• Trond Lars Nydal, CEO, Mobile: +47 951 79 977
• John Arne Winsnes, CFO, Mobile: +47 462 80 999
• Trine Kvalheim, Chief Information Officer, Mobile: +47 454 65 680


This information is subject to the disclosure requirements pursuant to section
5-12 of the Securities Trading Act.

More information:
Access the news on Oslo Bors NewsWeb site

637377_SBM Press Release Q4 2024.pdf
637377_SBM Quarterly report Q4 2024.pdf
637377_SBM Presentation Q4 2024.pdf