HØLAND OG SETSKOG SPAREBANK (HSPG) Q1 2025 earnings summary

Executive summary

• Net profit after tax for Q1 2025 was NOK 11.6 million, down from NOK 12.5 million in Q1 2024, with solid underlying banking operations and stable profitability.

• Total business volume including EBK financing reached NOK 9.7 billion, with gross loans up 7% year-over-year and customer deposits down 2.12% over the same period.

• The bank remains primarily exposed to residential mortgages and housing construction, with a strong used housing market but weak new housing starts.

Financial highlights

• Net interest income was NOK 29.1 million (NOK 32.8 million in Q1 2024), with net commission income at NOK 8.9 million (NOK 8.8 million last year).

• Operating expenses totaled NOK 23.3 million, nearly unchanged from Q1 2024.

• Cost/income ratio (adjusted) increased to 57.69% from 54.34% year-over-year.

• Result before losses was NOK 18.7 million (NOK 20.1 million in Q1 2024).

• Losses and provisions on loans were NOK 3.07 million, unchanged from last year.

Outlook and guidance

• Uncertainty remains high due to global geopolitical tensions, inflation, and interest rate developments.

• The bank expects continued slow new housing market activity, but anticipates increased construction in the medium term.

• Focus remains on customer service, competence development, and efficiency to ensure long-term profitability.