Grong Sparebank (GRONG) Q2 2025 earnings summary

Executive summary

• Net profit after tax reached NOK 100.5 million for H1 2025, up from NOK 70.7 million year-over-year; profit before tax was NOK 100.5 million, up from NOK 73.0 million.

• Return on equity rose to 12.6% from 8.8% in the same period last year.

• Core operations improved, driven by higher commission income and strong customer growth.

• Customer deposits grew by NOK 668 million (8.8%) and gross lending increased by NOK 1.3 billion (10.6%) over the past 12 months.

• Opened a new branch in Mo i Rana and announced plans for a new branch in Sandnessjøen; strengthened partnership with Helgeland Boligbyggerlag.

Financial highlights

• Net interest income increased by NOK 3.1 million year-over-year to NOK 119.5 million (2.13% margin).

• Net commission income rose to NOK 49.6 million from NOK 41.6 million, mainly from Eika Boligkreditt and insurance commissions.

• Dividend income from Eika Gruppen contributed NOK 21.7 million; net gains from financial assets improved by NOK 17.3 million.

• Operating expenses increased to NOK 82.8 million, mainly due to higher personnel costs and expansion.

• Cost-to-income ratio (excluding securities) at 48.93%; including securities, improved to 43.18%.

Outlook and guidance

• Interest rate reduction planned for Q3; Norges Bank reduced policy rate to 4.25%.

• Significant improvement in capital position following adoption of a new standard method, supporting continued growth strategy.

• Moderate loan losses expected to remain stable; close monitoring of risk exposures continues.

• Plans to obtain an external credit rating in line with industry peers.