Annual Report 2023 of Spar Nord

Net profit of DKK 2,421 million and return on equity of 19.7%

Spar Nord achieved a record-breaking net profit of DKK 2,421 million in 2023, which corresponds to an annualised return on equity of 19.7%. The profit was DKK 1,004 million, or 71%, higher than in 2022 and is considered highly satisfactory.

Total business volume amounted to DKK 358 billion at 31 December 2023,
which was DKK 9.5 billion higher than at end-2022. Of this, bank and leasing loans grew by DKK 2.2 billion, driven primarily by growth in bank mortgage loans to retail customers and in leasing for business customers.

2023 was widely characterised by central bank rate hikes in the efforts to curb inflation. During the year, rate hikes caused uncertainty with respect to future economic growth, resulting in a generally lower level of activity than in the preceding years. At the same time, the rising interest rates through 2023 were the principal reasons for the Bank’s record-breaking result, and the overall higher level of interest resulted in a much better return on the Bank’s significant excess liquidity. Core earnings before impairment amounted to DKK 3,107 million, which was 72% higher than last year.

Finally, the net profit for the year was favourably impacted by loan impairment charges, which represented an income of DKK 33 million.

Spar Nord’s effective tax rate was 23%, equal to a total tax expense of DKK 720 million, of which DKK 100 million was ascribable to the special tax for financial enterprises of 3.2%.

On the basis of the highly satisfactory results for 2023, the Board of Directors recommends to the shareholders at the Annual General Meeting on 19 March 2024 that a dividend of DKK 10 per share be distributed. In addition, the Board of Directors will launch a share buyback programme of DKK 500 million, equal to a total distribution of 69%, says Lasse Nyby, CEO.

Please direct any questions regarding this release to Lasse Nyby, Chief Executive Officer, on tel. +45 9634 4011, or Rune Brandt Børglum, Head of Investor Relations, on tel. + 45 9634 4236.

Rune Brandt Børglum
Head of Investor Relations

Attachment

• No. 08 - Annual report 2023 - UK