Grong Sparebank (GRONG) Q1 2025 earnings summary

Executive summary

• Improved core operations in Q1 2025, with moderate losses despite geopolitical and market turmoil.

• Result before tax was NOK 30.5 million, slightly down from NOK 30.7 million in Q1 2024; net profit after tax was NOK 22.5 million, compared to NOK 23.7 million last year.

• New subsidiaries Kredittbanken and Penni established.

• Continued focus on sustainability and ESG advisory.

Financial highlights

• Net profit after tax of NOK 22.5 million, down from NOK 23.7 million in Q1 2024.

• Net interest income was NOK 59.0 million (2.12% margin), up from NOK 57.4 million (2.28%) in Q1 2024.

• Net commission income reached NOK 24.3 million, mainly from Eika Boligkreditt and insurance commissions.

• Loan losses were NOK 7.2 million, up from NOK 0.9 million in Q1 2024.

• Cost-to-income ratio (excluding securities) at 53%, slightly improved from 54% last year.

Outlook and guidance

• Introduction of a more risk-sensitive standard method in Q2 2025 expected to ease capital requirements and support further growth.

• Continued market and geopolitical uncertainty anticipated, possibly delaying interest rate cuts and keeping credit growth subdued.

• New branch office opening in Mo i Rana in Q2 2025.