Spar Nord's 2024 Annual Report Reflects Strong Financial Growth

Author: Dylan Bailey Updated: 02-05-2025 02:30 AM

Spar Nord's Remarkable Financial Performance in 2024

Net profit of DKK 2,222 million and return on equity after tax of 16.6%

Spar Nord has reported an impressive profit after tax of DKK 2,222 million for the year 2024, translating into a robust return on equity after tax of 16.6%. This result marks the second-best in the bank's rich history spanning over two centuries, showcasing exceptional financial management and strategy.

Growth in Business Volume

The total business volume as of December 31, 2024, reached DKK 379 billion, reflecting an increase of DKK 21 billion compared to the previous year. This growth is attributed to a significant rise in assets under management and bank loans, which increased by 16% and 7%, respectively, compared to the prior year. Such substantial growth is a testament to Spar Nord's effective business strategies and customer engagement.

Stable Financial Returns Amidst Market Fluctuations

Despite fluctuations in market conditions and policies, the bank has maintained satisfactory returns from its excess liquidity. This consistent performance led to net interest income in 2024 remaining on par with the previous year. In addition, the bank experienced a 4% increase in net fee income, primarily from assets under management, payment services, insurance, cards, and pensions. However, this positive outcome was somewhat offset by lower market value adjustments and rising operational costs, leading to a final profit before impairment of DKK 2,881 million—7% lower than last year.

Impact of Loan Impairment Charges

The final net profit for the year was positively influenced by loan impairment charges, which resulted in an income of DKK 25 million. This aspect of financial performance underscores the bank's prudence in managing its credit risks and operational efficiency.

Dividend Recommendations for 2024

In light of the ongoing developments surrounding Nykredit’s takeover offer, Spar Nord’s Board of Directors has opted not to recommend the distribution of dividends for the year 2024. CEO Lasse Nyby highlighted this decision, emphasizing that it aligns with the current market dynamics and the bank's strategic objectives.

CEO Insights

Lasse Nyby, the Chief Executive Officer of Spar Nord, has encouraged stakeholders to view the financial results within the broader context of the bank's commitment to sustainable growth and risk management. His remarks affirm the bank's readiness to navigate future challenges while maintaining a strong financial footing.

Contact Information

For any inquiries regarding this announcement, interested parties are encouraged to reach out to Lasse Nyby at +45 9634 4011, or Rune Brandt Børglum, Chief Financial Officer, at +45 9634 4236. The management's dedication to transparency and communication underscores their commitment to their stakeholders.

Frequently Asked Questions

What was Spar Nord's net profit in 2024?

Spar Nord achieved a net profit of DKK 2,222 million in 2024.

How does the 2024 profit compare historically?

This profit represents the second-best year in the company’s 200-year history.

What initiatives led to increased business volume?

The increase in business volume was supported by significant growth in assets under management and higher bank loans.

Why didn't Spar Nord distribute dividends for 2024?

The Board of Directors decided against recommending dividends due to Nykredit’s takeover offer, aligning with their strategic vision.

Who can I contact for more information on this report?

Questions can be directed to Lasse Nyby or Rune Brandt Børglum using the provided phone numbers.

About The Author

My name is Dylan Bailey, and I am 28 years old. I am an author and an expert on the stock market who specializes in publicly traded companies. Early fascination with the stock market inspired me to seek a finance degree and then delve deeply into the world of stocks. I have developed over the years my abilities to spot investment prospects, assess business performance, and analyze market trends.

My books and articles try to help regular investors understand the nuances of the stock market. Anyone can, in my opinion, make wise investment choices and succeed financially if they have the correct information and resources. In my writing, I combine in-depth research with practical insights and advice that can be put into action. This is done with the intention of assisting readers in navigating the constantly shifting landscape of publicly traded companies.

In addition to writing, I also host webinars and workshops, where I give presentations and share my knowledge with a wider audience. I also write for top financial journals and show up as a guest analyst on financial news shows. I like to travel, spend time with my family, and keep active by playing different sports when I'm not buried in market research.

My goal is to enable people to choose wisely and consciously in their investments, so taking charge of their financial futures. By my work, I hope to create a community of informed and self-assured investors prepared to take advantage of the chances presented by the stock market.

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