HØLAND OG SETSKOG SPAREBANK (HSPG) Q4 2025 earnings summary

Executive summary

• Net profit after tax was NOK 47.4 million for 2025, down from NOK 55.0 million the previous year, with results before losses at NOK 90.5 million, slightly below expectations.

• Total business capital, including EBK financing, reached NOK 10.5 billion, up 9.9% year-over-year.

• Loan growth including EBK was 9.96% over 12 months, while customer deposits grew by 1%.

• The bank remains primarily exposed to the residential mortgage market, with a strong used-home market but weak new-home construction.

Financial highlights

• Net interest income was NOK 133.0 million (NOK 132.7 million last year), with an extraordinary Q4 boost due to reclassification of liquidity fund interest.

• Net commission income (excluding EBK) was NOK 38.2 million, down from NOK 41.6 million.

• Operating expenses increased to NOK 105.2 million (NOK 94.5 million), mainly due to new premises and a 5.7% rise in personnel costs.

• Cost/income ratio (adjusted) rose to 58.29% from 51.79%.

• Return on equity was 9.24%, up from 5.95% last year.

Outlook and guidance

• The global environment is marked by geopolitical uncertainty, but no increase in problem loans in the retail segment is observed.

• The bank expects a significant reduction in non-performing exposures in the first half of 2026.

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