Meny

Strong performance in second quarter

– Sparebanken Sør had a strong second quarter, with solid results and very good return on equity. It is also positive to see that we continue the positive development in non-interest income.

Administrerende direktør Geir Bergskaug ved roret

This was stated by CEO Geir Bergskaug, who presented the results for the second quarter of 2023 on Tuesday. A profit before tax of NOK 550 million is an increase from NOK 351 million in the same period in 2022.

– The results are characterized by positive contributions from associated companies, low loan losses and strong growth in the corporate market. In addition, the interest rate changes we have seen in the past year, have had a positive impact on net interest income.

Customers investing in mutual funds

Sparebanken Sør has an ambition to increase the bank's other income. We see a positive development, especially in leasing to the business sector and the savings area through Norne Fund Portal.

– There has been a positive development in 2023. We are seeing growth in the number of customers investing in mutual funds. Where we observed a flattening in 2022, we now see growth in 2023, explains Bergskaug.

Solid loan portfolio

Despite a turbulent macro environment and rising interest rates, there were no major losses recorded in the quarter, and there was a low proportion of non-performing loans. The bank had a net entry on losses of NOK 11 million in the second quarter, compared to a net loan loss of NOK 9 million in the same period in 2022.

– Sparebanken Sør has a high proportion of personal customers, a low risk profile, and a solid collateral in the loan portfolio, explains Bergskaug.

Positive earnings development

Net interest income was NOK 732 million in the second quarter of 2023, compared to NOK 555 million in the second quarter of 2022. Bergskaug reports strong growth in the corporate market and increased net interest income.

– With a significant equity and as interest rates rise, the net interest income also increases. This has contributed to a very positive development in earnings for Sparebanken Sør.

Highlights from Q2 2023 (Q2 2022 in parenthesis)

  • Profit before tax: NOK 550 mill. (NOK 351 mill.)
  • Return on equity: 11.0 percent (7.2 percent)
  • Net interest income: NOK 732 mill. (NOK 555 mill.)
  • Net profits financial instruments: NOK 0 mill. (NOK -33 mill.)
  • Income from associated companies and subsidiaries: MOK 25 mill. (NOK 24 mill.)
  • Opertating expenses: NOK 326 mill. (NOK 293 mill.)
  • Net loss on loans: NOK -9 mill. (NOK 11 mill.)

The entire quarterly report can be found here.