Flekkefjord Sparebank (FFSB) Q4 2025 earnings summary

Executive summary

• Net profit after tax for 2025 was NOK 126.9 million, with Q4 net income at NOK 33.1 million, down from NOK 37.7 million in Q4 last year.

• Return on equity (ROE) for Q4 was 9.1%, and 9.0% for the full year.

• Strong growth in lending (17.3%) and deposits (14.1%) year-over-year.

• Credit losses for the year were low at NOK 9.5 million, down from NOK 12.7 million last year; credit quality remains solid.

Financial highlights

• Net interest income for the year was NOK 246.8 million, up from NOK 233.6 million last year, driven by lending and deposit growth.

• Net commission income increased to NOK 47.5 million from NOK 33.2 million year-over-year, mainly from payment services, insurance, and Verd Boligkreditt.

• Cost-to-income ratio for the year was 48.4%, up from 46.4% last year; Q4 ratio was 47.7%.

• LCR at 195% and NSFR at 205% indicate strong liquidity.

• Earnings per equity certificate was NOK 7.93; proposed dividend is NOK 6.40 per EC (81% payout ratio).

Outlook and guidance

• Global economy remains resilient, but geopolitical and trade policy risks persist.

• Norges Bank is not expected to cut rates soon; further pressure on net interest margin anticipated.

• Increased competition and potential rate cuts in 2026 may pressure net interest margins.

• Focus remains on organic, profitable growth, long-term investments, and increasing non-interest income.

• Regulatory changes in capital requirements have freed up capital for growth and dividends.