Kreditbanken (KRE) Q2 2024 earnings summary

Executive summary

• Pre-tax profit reached DKK 100.6 million in H1 2024, driven by strong customer and business development, higher-than-expected net interest and fee income, and lower-than-expected loan impairments.

• Net interest and fee income increased by DKK 16.8 million year-over-year; positive market value adjustments of DKK 8.0 million were recorded.

• Operating expenses rose by DKK 2.9 million to DKK 74.2 million, mainly due to higher IT and personnel costs.

• Loan impairments turned into a net income of DKK 0.3 million, reflecting full repayment of previously impaired receivables.

• Equity surpassed DKK 1 billion as of June 30, 2024, supporting the bank's position as one of Denmark's most solid institutions.

Financial highlights

• Net interest and fee income: DKK 166.5 million in H1 2024, up from DKK 149.7 million in H1 2023.

• Pre-tax profit: DKK 100.6 million in H1 2024, up from DKK 87.4 million in H1 2023.

• Loans increased by 11.6% year-over-year to DKK 2,548 million; deposits (excl. pool deposits) rose 9.0% to DKK 4,455 million.

• Equity at DKK 1,018 million as of June 30, 2024; total assets at DKK 6,390 million.

• Cost/income ratio improved to 2.35 in H1 2024 from 2.10 in H1 2023.

Outlook and guidance

• 2024 pre-tax profit expected in the range of DKK 155–180 million, with lower earnings anticipated in H2 due to narrowing interest margins and higher expected impairments.

• Forecasts are based on two scenarios for net interest income and loan impairments due to economic uncertainty.