Pareto Bank (PARB) investor relations material

Executive summary

• Profit after tax reached NOK 200.7m in Q2-25, up from NOK 178.2m in Q2-24, with ROE after tax at 15.1% versus 14.3% year-over-year.

• Earnings per share rose to NOK 2.44 from NOK 2.15 year-over-year.

• Lending volume decreased by NOK 1,614m from the previous quarter, with net loans to customers at NOK 19,249m, down 2% year-over-year.

• Cost/income ratio remained strong at 18.3% in Q2-25, reflecting continued operational efficiency.

• Reporting under CRR3 and lower lending volumes strengthened the capital position.

Financial highlights

• Net interest income for Q2-25 was NOK 319.0m, up from NOK 303.0m in Q2-24; total net income reached NOK 343.2m.

• Operating profit before impairments was NOK 280.4m, with pre-tax profit at NOK 263.3m.

• Operating expenses were NOK 62.9m, up from NOK 56.3m year-over-year.

• Net gains on financial instruments at fair value were NOK 5.3m in Q2-25.

• Net commission income from banking services and guarantees was NOK 3.2m, slightly down from NOK 3.4m.

Outlook and guidance

• Lending volumes are expected to remain subdued or slightly decrease in Q3-25 due to significant redemptions and lower credit demand.

• Residential property financing faces a weak market with record low starts and slow pre-sales; policy rate cuts may have limited short-term effect.

• Credit losses and impairments may remain elevated in coming quarters due to market conditions.

• The long-term profitability target of 15% ROE and dividend policy of 50% or more annual payout remain unchanged.

• The bank sees stable credit exposure but prioritizes profitability and quality over growth.