Political moves and the prospect of a possible trade war have led to speculation and concern about developments in the global economy and how it will affect the market in Norway. No matter where crises of confidence occur, whether it is between great powers, ethnic groups, partners or people, it can be challenging to find the way out of them. An important tool is knowledge and the ability to listen and talk to each other, even if the situation is complicated or difficult. It's universal.  

Free and independent – but collaborates with many

If we focus on Norway and the banking industry, 2024 was a year of many changes. Sparebanken Møre is one of the few non-aligned banks, and last year several banks joined forces and several new merger agreements were signed. The changes bring us up to 6th place on the list of Norway's largest savings banks. Although our strategy is to be non-aligned and independent, we collaborate on products and services with many people.  

We balance interests and find forms of cooperation that bring benefits to our customers, owners and the communities we are a part of.

Relational banking

For us as a regional bank, Menon Economics' report from November 2024 made for interesting reading. It confirms that the savings banks have a crucial role in the access to capital to the business sector, especially outside the cities. The report shows that savings banks lend somewhat higher to firms than other banks, and that lending practices do not increase risk or result in poorer profitability for the bank.  

Being close to the business community and the local community provides valuable insight, and according to the report, this is an important reason why savings banks provide more credit in rural areas. "Close" is one of Sparebanken Møre's core values, and here lies some of the DNA for the savings banks and the key to what Menon Economics refers to as relational banking. It is about understanding how the world economy affects regional business, and seeing the ripple effects this has on local housing development and family incomes. Being close and having robust relationships increases the ability to tolerate good discussions and to find solutions. In ups and downs.

Increased market share 

In 2024, we passed the milestone of NOK 100 billion in total assets, and in the second quarter, lending growth in the retail market was close to NOK 1.5 billion. This is the highest quarterly growth in the bank's history. The investment in local bank branches and advisers who are close to the customers' situation is yielding good results, and in 2024 we increased our market share in the retail market to over 26 per cent. In the corporate market, we had a record year for the number of new and active customers in 2023, and it is gratifying to see that we continue at approximately the same level in 2024. The growth rate over the past five years has been significantly higher than in previous years, and even though more and more customers are using our self-service digital solutions, committed and knowledgeable advisors make up our front line.  

When customers in 2024 vote us for first place in the national Customer Service Award for the banking industry for the sixth year in a row, it gives motivation. We are building a strong team in Team Møre.

Close to the business community in the northwest

The level of activity in the business sector in Northwest Norway was high in 2024, and export-oriented companies and tourism in particular have had a positive development as a result of a weak Norwegian krone. The shipbuilding industry also has a high level of activity, and the same can be said for the offshore industry, which has virtually all vessels on contract with good rates. A report from Nofima shows that in 2023, Møre og Romsdal is at the top of value creation in the fishing industry nationally, and is, according to the report, in a class of its own compared to the rest of the coast. The fishing industry is a cyclical industry, and in 2024, quota reductions, higher costs and less access to personnel have had an impact on profitability. Throughout history, experienced and energetic professionals in the business community in Northwest Norway have lived with fluctuations in the market, and they have the ability and willingness to adapt to these. The bank's industry expertise has also been built up over a long period of time with specialists who are close and who contribute to a collaboration that is valuable and predictable for all parties.  

The engine of sustainability

Today, sustainability is an engine for innovation, and an integral part of what we do and the decisions we make. We are facing a changing world, and a business sector that does not succeed in adapting will lose competitiveness in the long run. In this year's EPSI survey for banking, customers voted us the best in sustainability for the fourth year in a row. According to EPSI, the bank retains its position because we are able to adapt the theme to different customer segments. Many companies find sustainability challenging to work with, and we as a financial institution want to ensure that our customers are aware of developments, and prepared for requirements that come so that they can act accordingly. Northwest Norway has one of the country's most energy-intensive business sectors, and if we are to succeed in meeting future needs, we must take the right steps that, among other things, reduce both energy consumption and provide room for development. One project that engages is GrønnArena Møre, a three-year program that will result in more energy-efficient commercial buildings for the participants. In 2025, the program will expand to even more parts of our market area.

Expectations of interest rate cuts and increased purchasing power

According to Statistics Norway's (SSB) living conditions survey, the conditions in Northwest Norway are good, and if we look towards 2025, the outlook is positive for our part of the country. While large cities such as Oslo and Stavanger have high house prices and rising rental costs, figures from Statistics Norway show that the inhabitants of Møre og Romsdal have among the lowest housing costs in the country. Unemployment that is lower in Møre og Romsdal than in the country as a whole also makes a positive contribution to household finances. With expectations of more interest rate cuts and real wage increases in 2025, it promises increased purchasing power – also for people in the Northwest.

Engaged in the community

In 2024, NOK 376 million of the surplus was allocated to gifts for charitable purposes. Of this, NOK 150 million was transferred to the newly established Sparebankstiftelsen Sparebanken Møre, and the rest was distributed to charitable purposes in our region. The bank has over 300 cooperation agreements with teams and organisations, and in 2024 we entered into over 50 new cooperation agreements that provide predictability for bands throughout the county. This autumn, the campaign "Kulturscene" also gave over 100 small and large cultural venues the opportunity to realize technical and physical upgrades. To stimulate the interest of children, young people and students in science, innovation and entrepreneurship, we engage in Newton Rooms, the Researcher Factory, the First Lego League, Young Entrepreneurship and practical collaboration between business and academia. One of the highlights last year was "Dale Oen Inspire 2024", which brought together 11,000 children and young people for Europe's largest research and technology conference for young people. The message from the stage was that dreaming is important, making mistakes is natural and that resilience is the result of many uphills. Good attitudes we should carry with us into our own everyday lives.

Agile digital solutions 

In the time ahead, the banking industry will have to adapt to lower interest income, and our focus is on efficient operations and profitable growth. Our region is known for innovation and cost-effectiveness, and we will continue to use our flair for simplification and improvement. The engine of our work is our people, and their ability to innovate, to take initiative and the commitment they have to continuous improvement. They are the most important resource when we are to utilize existing and new digital technology, and apply artificial intelligence to practical tasks in everyday life. We hunt daily for agile solutions that provide value for our customers, and that free up time to be good advisors. Satisfied customers are fertile ground for growth, and this is how we want to retain existing customers and win new ones.

And in the middle of this are those who want to make the difference  "Our people.  

Trond Lars Nydal

Managing Director