Kreditbanken (KRE) Q3 2024 earnings summary

Executive summary

• Profit before tax for Q1–Q3 2024 reached DKK 150.4 million, driven by high loan demand and significant customer growth.

• Net interest and fee income increased by DKK 17.3 million year-over-year, exceeding expectations.

• Positive bond market developments led to DKK 30.6 million in fair value gains.

• Operating expenses rose by DKK 4.8 million to DKK 109.4 million, mainly due to higher staff and IT costs.

• Loan loss provisions decreased to DKK 12.2 million, reflecting strong local employment and customer financial health.

Financial highlights

• Net interest and fee income: DKK 242.3 million (up from DKK 224.9 million in Q1–Q3 2023).

• Profit before tax: DKK 150.4 million (up from DKK 130.1 million year-over-year).

• Loans: DKK 2,672 million (up 17.9% year-over-year); deposits: DKK 4,513 million (up 9.8%).

• Equity: DKK 1,053 million as of September 30, 2024.

• Average number of employees increased to 97.5 from 92.7.

Outlook and guidance

• Full-year 2024 pre-tax profit expected at DKK 165–180 million, narrowed from previous DKK 155–180 million.

• Bank expects results at the higher end of the range, but maintains two scenarios due to geopolitical uncertainty.