Rogaland Sparebank (ROGS) investor relations material

Executive summary

• Net profit after tax for H1 2025 reached NOK 279.7 million, up from NOK 226.0 million year-over-year, driven by higher net interest income, increased other operating income, and lower tax, partially offset by higher costs and loan losses, with the merger positively impacting results.

• Return on equity after tax was 13.7% for H1 2025 (12.8% in 1H24), including hybrid capital.

• Lending growth over the past 12 months was 8.6%, or 16.9% including the merger, with significant increases in both lending and deposits.

• Merger of Sandnes Sparebank and Hjelmeland Sparebank completed in August 2024, significantly increasing scale and customer satisfaction.

Financial highlights

• Net interest margin stable at 1.94% for H1 2025, unchanged from H1 2024.

• Net interest income for H1 2025 was NOK 392.4 million, up from NOK 337.7 million year-over-year.

• Total operating costs increased to MNOK 208.1 (169.6), mainly due to merger-related and personnel expenses.

• Loan losses and impairments amounted to NOK 23.1 million in H1 2025, up from NOK 20.2 million in H1 2024, but remain low relative to gross lending.

• Total assets at the end of H1 2025 were NOK 41.6 billion, up 16.6% year-over-year, mainly due to the merger and lending growth.

Outlook and guidance

• Financial targets for 2025–2028: ROE >11%, dividend payout 50–100%, CET1 >16.8%, and profitable growth >5%.

• The bank expects continued lending growth, especially in the private market and SMEs, with lower capital requirements and a stable net interest margin if market rates hold.

• Norges Bank reduced the policy rate to 4.25% in June 2025, with further reductions expected, potentially pressuring margins.

• Anticipates a new Pillar 2 capital requirement in 2025 and regulatory changes (CRR3) from April 2025.

• Management highlights ongoing macroeconomic uncertainty and preparedness for future challenges.