SpareBank 1 Ostlandet

Latest Results (17.01.2026):

SpareBank 1 Ostlandet — Q1 2025 update (covering results for the year ended Q4 2024). Moody’s April 25, 2025 credit-update reflects the bank’s strong full‑year 2024 financial performance: robust profitability, solid capital and sound asset quality, supporting an Aa3 long‑term rating (BCA a3) with a stable outlook. The report highlights 2024 net profit growth, high capital buffers, continued reliance on market funding, and the completed merger with Totens Sparebank on 1 Nov 2024.

Profit / earnings

2024 profit after tax NOK 3,356m (vs NOK 2,222m in 2023). Moody’s‑adjusted return on tangible assets ~1.2% (Net Income / Tangible Assets ~0.9% reported in Moody’s table) and net interest margin 1.8%, driven by higher NII (+15% year‑on‑year).

Capital strength

Tangible common equity (TCE) ratio 18.7% and reported CET1 16.8% at year‑end 2024, comfortably above the bank’s CET1 requirement of 15.1%; leverage ratio ~7.3%. Moody’s notes strong buffers but applies a negative adjustment for the equity certificate (ECC) ownership structure.

Asset quality

Problem loans 1.1% of gross loans at Dec‑2024 (slight rise from 1.0% in 2023 following Totens consolidation), retail mortgages ~70% of loans and ~96% with LTV <70%, supporting generally low loss rates.

Profitability / efficiency

Cost-to-income ratio improved to 37.4% in 2024 (from 41.0% in 2023). Moody’s expects continued NII support in 2025 but warns of temporary higher operating costs from duplicate IT systems until the technical merger completes (expected early 2026) and margin pressure when rates normalise.

Funding and liquidity

Market funding ~30.8% of tangible banking assets (including covered bonds); deposits ~45% of funding (57% retail). Liquid banking assets ~13.9% of tangible banking assets and LCR ~172% — Moody’s calls liquidity sound but flags reliance on market funding as a vulnerability.

Funding structure & LGF

Moody’s advanced Loss‑Given‑Failure analysis yields three notches of uplift from the BCA to an Aa3 senior/ deposit rating. The bank participates in SpareBank 1 covered bond vehicles (SpaBol / SpaCom) and the SpareBank 1 EMTN program for diversification.

Growth / strategic developments

Total assets NOK 282.4bn at Dec‑2024 (up from NOK 241.3bn in 2023); tangible common equity NOK 22.2bn. Merger with Totens Sparebank completed 1 Nov 2024 to strengthen presence in Inland region; new branch opened in Drammen to expand near Oslo‑Akershus.

Key risks & outlook

Credit challenges: geographic concentration in Inland and Oslo‑Akershus, moderate CRE concentration (~13% of loans), and reliance on market funding. Outlook: Stable — Moody’s expects performance, capital and liquidity to remain robust over next 12–18 months; downgrade risks include materially higher problem‑loan ratios, weaker profitability, or materially tighter funding conditions.