Flekkefjord Sparebank (FFSB) Q2 2025 earnings summary

Executive summary

• Net income after tax reached NOK 32.0 million in Q2 2025, up from NOK 26.5 million in Q2 2024, with H1 2025 net profit at NOK 60.7 million and ROE at 9.1% for the quarter and 8.8% year-to-date.

• Loan growth was 15.2% and deposit growth 17.7% year-over-year, reflecting strong business momentum.

• Cost-to-income ratio increased to 49.1% year-to-date, mainly due to one-off IT expenses.

• Credit losses for H1 2025 were NOK 6.8 million, nearly unchanged from NOK 6.6 million in H1 2024.

• Increased net interest and commission income contributed to improved results.

Financial highlights

• Total income in Q2 2025 was NOK 86.5 million, up from NOK 71.4 million in Q2 2024, driven by higher net interest, commission, and financial income.

• Net interest income for H1 2025 was NOK 116.8 million (2.04% of avg. assets), up from NOK 109.9 million (2.22%) in H1 2024.

• Net commission income rose to NOK 20.1 million from NOK 15.1 million year-over-year.

• Financial and dividend income increased by NOK 9.4 million, including NOK 7.0 million from a consolidated subsidiary.

• Operating expenses rose due to higher personnel costs, IT one-offs, and increased depreciation.

Outlook and guidance

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

• Continued emphasis on sustainable community development and competitive, cost-effective operations.

• Market relief followed the postponement of new US/EU/China trade tariffs, stabilizing financial markets.

• Norges Bank cut the policy rate by 0.25 percentage points in May, with further cuts expected, supporting lending growth.

• Continued focus on profitable growth and increasing market share in the core region.