Lollands Bank has presented an annual report for 2024 with a profit before tax of 131.3 million DKK. This is a decrease from 142.3 million DKK the previous year, but still a satisfactory result according to bank director Allan Aaskov. After tax, the profit amounts to 99.0 million DKK.
The bank's core earnings, which cover ongoing operations, fell from 110.4 million DKK in 2023 to 90.2 million DKK in 2024. The reason is higher expenses for personnel and administration as well as a larger write-down on the headquarters in Nakskov.
The return on equity also fell in 2024. Before tax, the return was 15.0 percent compared to 18.2 percent the previous year, while after tax it ended at 11.3 percent compared to 14.1 percent in 2023.
Fees for 83 million DKK
The bank's interest income rose to 222.9 million DKK, while interest expenses amounted to 30.4 million DKK. This resulted in a net interest income of 192.6 million DKK, a slight increase from 190.8 million DKK in 2023. At the same time, the bank earned 83.1 million DKK from fees and commissions, which is a slight decrease from 83.6 million DKK the previous year.
Despite the decline in core earnings, the bank experienced growth in loans and deposits. Loans increased by 9.5 percent, equivalent to 193 million DKK, while deposits grew by 4.3 percent, equivalent to 177 million DKK. The bank was also able to reverse previous impairments of 9.7 million DKK, indicating a healthy economy among the customers.
The board proposes a dividend of 15 DKK per share of 20 DKK, equivalent to 16.2 million DKK.
For 2025, Lollands Bank expects a pre-tax profit in the range of 60-80 million DKK, as lower market interest rates are expected to negatively impact earnings.
