SpareBank 1 Nord-Norge

Latest Results (09.12.2025):

SpareBank 1 Nord‑Norge — 2. quarter 2025: the Group delivered a strong quarter with profit after tax of NOK 951 million (2Q24: NOK 753m), a quarterly return on equity of 20.3% and a cost/income ratio of 31.8%. Net interest income was NOK 1,003m and net income from financial investments NOK 298m. Underlying loan losses remained low (net loan losses NOK -30m) and the Group reports positive ECL migration; however 2Q25 includes one‑off costs totalling NOK 46m. The bank continues to gain market share, with robust liquidity and capital metrics.

Profitability

Profit after tax for 2Q25 was NOK 951 million (vs NOK 753m in 2Q24). Return on equity for the quarter was 20.3% and result per EC improved; the Group targets a long‑term ROE among the highest peers (board target ≈13%+).

Income and margins

Total income was strong: net interest income NOK 1,003m (interest margin 2.88% of ATA) and net income from financial investments NOK 298m. Net commission and other income rose to NOK 370m.

Costs and one‑offs

Operating costs in 2Q25 were NOK 531m (up vs prior periods). The quarter included one‑off costs of NOK 34m related to the SpareBank 1 Utvikling / TietoEvry court ruling and NOK 12m from an internal property transaction — total one‑offs NOK 46m. Adjusted for one‑offs, underlying costs were reduced versus 1Q25.

Loan growth and deposits

The Group reports strong loan momentum and market share gains: total loan growth in the quarter (annualised) 6.9%, Retail Market annualised 9.3% (12‑month RM growth 7.8%), Corporate Market annualised ~2.4%. Deposits remain a key funding source and deposit coverage was 89%.

Credit quality and provisions

Net loan losses were low at NOK -30m in 2Q25. IFRS 9 (ECL) effects were net positive (portfolio migration gave ~NOK 50m benefit). Total loan loss provisions stood at NOK 825m (≈0.78% of gross loans); Stage 3 provisions NOK 359m.

Capital and liquidity

Capital ratios are solid under CRR3: CET1 16.2% (down 0.2 pp), Tier 1 ~18.1%, total capital ~20.6%. Leverage ratio ~7.0%. Liquidity metrics: LCR 142% and NSFR 117%; deposit coverage and market funding remain satisfactory.

Associated companies & investment income

Contributions from associated companies and JVs were meaningful (SpareBank 1 Gruppen, Fremtind etc.). Group share of associated/company results for the quarter totalled NOK 138m; equities and bond portfolios saw positive value developments.

Macro & outlook

Management notes Norges Bank’s 0.25 pp policy‑rate cut in June and expects further cuts in 2025, supporting cautious optimism for corporate lending late 2025–2026. The Group expects to continue gaining market share and targets profitable, balanced growth while closely monitoring vulnerable sectors (commercial real estate, construction, parts of fisheries and retail).