Grong Sparebank (GRONG) investor relations material

Executive summary

• Net profit after tax for Q4 2025 reached 196.1 million NOK, up from 111.1 million NOK in Q4 2024, with annual profit at 196 million NOK versus 112 million NOK last year.

• Result before tax reached 229.8 million NOK for Q4 2025, up from 147.5 million NOK in Q4 2024.

• Strong customer growth, high activity, and strengthened market position reported.

• Significant value write-up in Eika Gruppen contributed 36.6 million NOK in Q4.

• First official credit rating received: A-.

Financial highlights

• Return on equity for 2025 was 14.8%, up from 9% the previous year.

• Net interest income increased to 244.2 million NOK (2.16% margin), up from 240.8 million NOK (2.31%).

• Net commission income rose to 101.6 million NOK from 89.5 million NOK, mainly due to Eika Boligkreditt and payment services.

• Net income from financial assets was 90.6 million NOK, up from -3.6 million NOK, driven by Eika Gruppen dividend and revaluation.

• Operating costs increased to 187.4 million NOK, with a cost index (excl. securities) at 42.93% versus 50.28% last year.

• Loan losses amounted to 19.3 million NOK (0.20% of gross loans), up from 14.9 million NOK (0.16%) last year.

Outlook and guidance

• Focus on stability, local presence, and risk management amid geopolitical and market uncertainty.

• Challenging to maintain net interest income due to low market growth.

• Target for return on equity raised from 9% to 10.5% due to regulatory and efficiency improvements.

• Norges Bank is expected to lower interest rates 1-2 times in 2026, potentially boosting economic activity.

• Credit losses are expected to remain moderate, with stable levels of non-performing and at-risk loans.