Sparebank 68 Grader Nord (SB68) investor relations material

Executive summary

• Net profit after tax for Q2 2025 was NOK 71.8 million, up from NOK 66.7 million in Q2 2024, with annualized return on equity at 9.2% versus 9.0% last year.

• Total assets reached NOK 12.6 billion, a 5.3% increase year-over-year; business volume including brokered loans was NOK 13.9 billion.

• Twelve-month loan growth, including brokered loans, was 6.3%, and deposit growth was 5.75%.

• The bank reported lower loan losses and higher operating costs, mainly due to changes in profit-sharing expense recognition.

• The bank remains well-capitalized and considers its core operations robust amid economic uncertainty.

Financial highlights

• Profit before tax for Q2 2025 was NOK 95.9 million, up from NOK 90.9 million in Q2 2024.

• Net interest income was NOK 149.3 million (2.43% of average assets), nearly flat year-over-year.

• Net commission and other operating income totaled NOK 23.4 million, slightly down from NOK 23.7 million last year.

• Operating expenses increased to NOK 77.4 million from NOK 72.3 million, mainly due to higher personnel costs.

• Net loan loss provisions were a positive NOK 0.5 million, compared to a NOK 9.2 million expense last year.

Outlook and guidance

• The bank expects further interest rate cuts in 2025, following a 0.25 percentage point reduction in June.

• Customers have adapted to higher rates, with fewer seeking payment holidays or entering default.

• The board views the bank as well-prepared for future challenges, with strong liquidity and capital buffers.

• Uncertainty remains highest in commercial real estate, construction, and property development sectors.