In This Article:
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Loan Book: NOK285 billion at the end of Q2 2024.
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Loan Growth: 7.5% over the last 12 months, equivalent to NOK20 billion.
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Return on Equity: 14.6% in Q2 2024.
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Result Before Tax: NOK1.472 billion, up 10.2% compared to the same period last year.
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First Half Result Increase: 20.4% to NOK2.971 billion.
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Cost-to-Income Ratio: 34.9% for the group, down from 39.6% last year.
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Loan Loss Provision: NOK103 million, equivalent to 15 basis points.
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Core Capital Requirement: 16.4%, with current standing at 17.7%.
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Earnings Per Share: NOK4.20 per share.
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Profit After Tax: NOK1.162 billion.
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Net Interest Income: Down NOK3 million compared to the previous quarter.
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Net Commission and Other Income: Increase of 13% quarter on quarter and 4% year on year.
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Net Income on Financial Investment: NOK148 million.
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Real Estate Broker Income: Increased from NOK91 million last quarter to NOK134 million this quarter.
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Stage 3 Commitments: Continuous downward trend, indicating strong credit quality.
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Capital Ratio: 126 basis points above the requirement, with an expected increase during the quarter.
Release Date: August 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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SpareBank 1 Sor Norge ASA (FRA:B4M1) reported a strong return on equity of 14.6% for the second quarter, surpassing their target of 13%.
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The company achieved a loan growth of 7.5% over the last 12 months, equivalent to NOK20 billion, indicating solid growth across all market segments.
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The merger with SpareBank 1 Srst-Norge is expected to create significant synergies, including NOK2.5 billion in capital synergies and NOK150 million annually in cost synergies.
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The bank's cost-to-income ratio improved to 34.9%, down from 39.6% the previous year, reflecting enhanced operational efficiency.
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SpareBank 1 Sor Norge ASA (FRA:B4M1) maintained a strong capital position with a core capital ratio of 17.7%, above the current requirement of 16.4%.
Negative Points
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Net interest income decreased by NOK3 million despite significant growth, due to dividend payments and tax obligations requiring market funding.
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The bank experienced some pressure on deposit margins, which could impact future profitability.
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Loan loss provisions amounted to NOK103 million, primarily due to one specific engagement, indicating potential risk exposure.
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The merger, while promising synergies, is subject to regulatory conditions that need to be lifted before completion.
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Increased presence and activity in Oslo led to higher costs, which could affect the bank's cost management efforts.