Flekkefjord Sparebank (FFSB) Q1 2025 earnings summary

Executive summary

• Net income after tax reached NOK 28.7 million in Q1 2025, up from NOK 26.9 million in Q1 2024, driven by higher net interest and commission income, and low credit losses, partially offset by higher costs including one-time IT expenses.

• Return on equity (ROE) for the quarter was 9.2%, compared to 9.9% in the same period last year.

• Strong lending growth of 15.9% and deposit growth of 12.1% year-over-year, with business capital at NOK 16.3 billion.

• Forretningskapital (business volume) rose to NOK 16.3 billion from NOK 12.9 billion.

Financial highlights

• Total income for Q1 2025 was NOK 74.2 million, up from NOK 67.9 million in Q1 2024.

• Net interest income increased to NOK 58.5 million, mainly due to higher loan volumes.

• Net commission income rose to NOK 9.0 million, mainly from payment services, insurance, and mortgage credit commissions.

• Net financial income was NOK 6.5 million, up from NOK 6.2 million, attributed to the liquidity portfolio.

• Credit losses for the quarter were NOK 2.3 million, down from NOK 3.2 million in Q1 2024.

Outlook and guidance

• Management expects lower inflation and slightly reduced economic growth ahead, with the first interest rate cut anticipated in H2 2025.

• Focus remains on being the leading local bank in Dalane, Lister, and Lindesnes regions, with strong local knowledge and strategic partnerships.

• The bank aims to continue profitable growth, maintain strong market positions, and focus on risk management, ESG, and anti-fraud initiatives.

• The upcoming CRRIII regulation in Q2 2025 is expected to release significant capital.