Annual Report 2022 of Spar Nord

Company announcement no. 07

Net profit of DKK 1,417 million and return on equity of 12.5%

Reporting a net profit of DKK 1,417 million after tax, Spar Nord today announced the best financial performance in the Bank’s 198-year history.

From a business perspective, 2022 was characterised by a high level of customer activity, continued business growth and further investment in the Bank’s distribution capability through the opening of new banking areas and branches. As a result, the bank realized a very satisfactory growth of 13% in 2022 from both bank deposits and bank loans corresponding to a increase in business volume of DKK 14.6 billion.

The profit for the year was especially impacted by the sharp increase in money market and policy rates. The higher level of interest rates resulted in an increase in net interest income from the Bank’s deposits and lending and significantly higher net interest income from the placement of the Bank’s excess liquidity. In addition, the increase in interest rates resulted in strong remortgaging activity, which contributed favourably to developments in the Bank’s net fee income. Overall, the positive performance of the Bank's core business resulted in core earnings before impairment of DKK 1,808 million, which was 14% higher than last year.

Finally, the profit for the year was to a small extent impacted by loan impairment charges, which amounted to DKK 78 million in 2022. On the basis of an increase in management estimates and model-calculated impairments of DKK 212 million in 2022, the Bank is well prepared for the coming years, which, all else being equal, is expected to bring higher losses and impairment charges.

On the basis of the highly satisfactory results for 2022, the Board of Directors recommends to the shareholders at the Annual General Meeting that a dividend of DKK 4.5 per share be distributed. In addition, the Board of Directors will launch a share buyback programme of DKK 300 million, equal to a total distribution of 60%.

Lastly, in the Annual Report 2022, the Bank has also announced expectations for 2023 where profit after tax is expected to be in the DKK 1.5-1.8 billion range, says Lasse Nyby, CEO.

Please direct any questions regarding this release to Rune Brandt Børglum, Head of Investor Relations, on tel. + 45 9634 4236, or by e-mail at rsn@sparnord.dk.

Rune Brandt Børglum
Head of Investor Relations

Attachment

• Annual Report 2022 of Spar Nord - UK