HØLAND OG SETSKOG SPAREBANK (HSPG) Q2 2025 earnings summary

Executive summary

• Net profit after tax reached NOK 30.5 million for Q2 2025, up from NOK 21.4 million year-over-year, with solid underlying banking operations and profitability.

• Total business capital, including EBK financing, increased to NOK 10.3 billion, up 8.6% over the past 12 months.

• Customer deposits grew 1.1% to NOK 5,156 million, while gross loans including EBK rose 9.6% to NOK 8.1 billion year-over-year.

• 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 for Q2 was NOK 61.1 million, down from NOK 65.6 million year-over-year; net commission income (excl. EBK) was NOK 17.0 million, up from NOK 16.5 million.

• Operating expenses increased to NOK 50.2 million from NOK 46.1 million, mainly due to new premises and a 9% rise in personnel costs.

• Cost/income ratio (adjusted for VP) was 60.41%, up from 53.11% year-over-year.

• Loan losses and provisions totaled NOK 13.15 million, down from NOK 23.85 million year-over-year.

• Return on equity (annualized) was 7.5% versus 3.2% in Q2 2024.

Outlook and guidance

• Global uncertainty persists due to geopolitical tensions and new US trade policies; inflation and interest rates are declining, with further rate cuts expected in Norway.

• No increase in problem loans in the retail segment, but the new housing market remains slow, impacting corporate customers.

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