ABG Sundal Collier (ABG) Q1 2025 earnings summary

Executive summary

• Revenues reached NOK 407 million in Q1 2025, up 1% year-over-year, with net profit at NOK 50 million, down from NOK 56 million.

• Diluted EPS was NOK 0.09, compared to NOK 0.11 in Q1 2024.

• Strong performance in debt capital markets and brokerage offset weaker equity capital markets and M&A activity.

• Private Banking launched, with first clients onboarded and broader rollout planned, positioning as the only independent Nordic investment bank with private banking services.

• Market volatility and geopolitical uncertainty shaped the quarter, but Nordic markets remained resilient.

Financial highlights

• Operating margin at 15%, negatively impacted by cost inflation and new business initiatives; would have been 3.7 percentage points higher excluding these.

• Initial costs of NOK 15 million for new business initiatives negatively impacted margin by ~3.7pp and EPS by ~NOK 0.3.

• Operating profit was NOK 59 million, down from NOK 72 million year-over-year.

• Cash and cash equivalents at period end were NOK 659 million, down from NOK 775 million in Q1 2024.

• Compensation/revenue ratio stable at 57%; non-compensation costs rose due to inflation and FX.

Outlook and guidance

• Short-term visibility reduced due to ongoing market turmoil, but confidence remains in adapting to new conditions.

• M&A activity expected to improve once markets stabilize.

• Private Banking launch expected to contribute to margin improvement and future growth.

• Continued focus on client support, independence, and agile execution in uncertain markets.