SpareBank 1 Østlandet's consolidated profit after tax for the fourth quarter of 2023 wasNOK 574 (622) million. The quarterly results show good growth in net interest income, while reductions in contributions from financial assets and liabilities pull in the other direction. "The Bank's results for 2023 reflect the troubled year that has just ended, in which some customers in vulnerable industries had a tougher year," says Group CEORichard Heiberg . "We have worked hard to find long-term solutions with customers, which means that impairment charges in the fourth quarter were significantly lower than in the preceding quarters," he says. Consolidated profitSpareBank 1 Østlandet's consolidated profit after tax for 2023 wasNOK 2 222 (1 948) million. The Bank saw good growth in lending and deposits throughout the year and this contributed to the increase in the Bank's net interest income in 2023. It was largely interest income that contributed to higher profits for the Group, while increased loan losses, higher operating expenses and reduced commission income from the covered bond companies pulled in the opposite direction. Customers still need loans for their various projects, and the Group's overall lending growth for the past 12 months was 5.3 per cent. Saving by customers remained good despite somewhat tighter finances for both households and businesses, and deposit growth was 7.8 per cent over the past 12 months. Dividend and customer dividendsSpareBank 1 Østlandet's Board of Directors is proposing to distribute 60 per cent of the Group's profit to owners and customers. The decision on profit sharing will be made by the Bank's Supervisory Board on21 March 2024 . The Board of Directors is proposing a dividend ofNOK 903 million for the owners, meaning a cash dividend ofNOK 7.80 per equity capital certificate. The Bank's largest owner,Sparebankstiftelsen Hedmark , which is the largest contributor to good causes in the former county of Hedmark, will receive the largest dividend from the Bank, ofNOK 471 million . Furthermore, the Board of Directors is proposing to the Supervisory Board that customer dividends ofNOK 381 (306) million be paid out, the highest amount since customer dividends were launched in 2017. In the years since then, the Bank has paid out more thanNOK 1.8 billion in customer dividends. "I am pleased and proud of our innovative bank customer dividends. It is especially satisfying for me in my last year at the Bank to announce what we are distributing to customers," says Group CEORichard Heiberg . This will be the last set of annual results that he presents. He will retire on01 April 2024 after almost 30 years as a board member, Chair of theBoard and Group CEO. On that day he will hand over the helm to the Bank's new Group CEO,Klara Lise Aasen . Stronger presence in Oppland and Øvre Romerike On15 January 2024 , the boards ofSpareBank 1 Østlandet andTotens Sparebank decided to merge the two banks so they could focus more strongly together on the best interests of customers, employees, owners, and local communities in the Inland region. Final decisions will be made in the banks' General Meeting and Supervisory Board on22 February 2024 . Approvals from supervisory authorities must also be given before the legal merger can be completed.SpareBank 1 Østlandet also refers to the merger plan's regulation of dividends, which implies that dividends inSparebank 1 Østlandet shall guide the distribution of the profit that can be approved byTotens Sparebank . Establishing a branch office in DrammenSpareBank 1 Østlandet has decided to establish a branch office in Drammen. The branch will have a central location and the plan is to open it in the autumn of 2024. Drammen is an attractive and growing region and opening a branch here will strengthen the bank's presence in the region southwest ofOslo . Key figures for Q4 and the full year 2023 Q4 2023 (Consolidated figures. Figures in brackets concern the corresponding period in 2022) o Profit after tax:NOK 574 (622) million o Return on equity: 11.3 (12.9) per cent o Earnings per equity capital certificate:NOK 3.32 (3.61) o Net interest income:NOK 1 005 (789) million o Net commissions and other operating income:NOK 319 (370) million o Net income from financial assets and liabilities wasNOK 77 (172) million. o Total operating expenses:NOK 594 (517) million o Net loan loss provisions wereNOK 39 (63) million. o Lending growth in the last quarter, including mortgages transferred to the covered bond companies: 0.9 (1.1) per cent o Deposit growth in the last quarter: 2.6 (-0.1) per cent o Common Equity Tier 1 capital ratio: 17.0 (17.7) per cent o The Bank's green loans (incl. loans transferred to the covered bond companies) amounted toNOK 39 (33) billion at the end of the fourth quarter Provisional annual results for 2023 (Consolidated figures. Figures in brackets concern the corresponding period in 2022) o Profit after tax:NOK 2 222 (1 948) million o Return on equity: 11.3 (10.5) per cent o Earnings per equity capital certificate:NOK 12.99 (11.37) o Net interest income:NOK 3 655 (2 693) million. o Net commissions and other operating income:NOK 1 455 (1 588) million o Net income from financial assets and liabilities:NOK 233 (162) million o Total operating expenses:NOK 2 191 (2 037) million o Net loan loss provisions wereNOK 307 (27) million. o Lending growth in the past 12 months, including mortgages transferred to the covered bond companies: 5.3 (8.7) per cent o Deposit growth in the past 12 months: 7.8 (7.2) per cent o The Board of Directors is proposing to the Supervisory Board of the Bank a cash dividend ofNOK 7.80 (6.80) per equity capital certificate, totallingNOK 903 (788) million. Customer dividends ofNOK 381 (306) million and a provision ofNOK 6 (31) million for gifts are also proposed. Contact information:Richard Heiberg , Group CEO, Tel.: +47 902 06 018Geir-Egil Bolstad , CFO, Tel.: +47 918 82 071 Bjørn-Erik Orskaug, Head of Investor Relations, Tel.: +47 922 39 185Siv Stenseth , EVP Communication and Social Affairs, Tel.: +47 958 46 991 This information must be disclosed pursuant to section 5-12 of the Securities Trading Act.
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