Haugesund Sparebank (HGSB) Q1 2025 earnings summary

Executive summary

• Solid core operations and continued strong loan growth in Q1 2025, with stable net interest income and low loan losses and impairments.

• Pre-tax profit reached NOK 62.97 million, up from NOK 59.4 million year-over-year, driven by higher lending volumes, dividends from Eika, and financial instrument gains.

• Net profit after tax was NOK 48.67 million, compared to NOK 44.58 million in Q1 2024.

• Total comprehensive income was NOK 55.94 million, up from NOK 51.84 million, mainly due to value changes in Eika Group shares.

• The merger process with Tysnes Sparebank is ongoing, with completion expected by September 2025.

Financial highlights

• Net interest income for Q1 was NOK 89.27 million, up from NOK 87.91 million year-over-year.

• Net commission and other operating income totaled NOK 18.83 million, up from NOK 16.23 million.

• Net income from financial investments was NOK 7.7 million, up from NOK 5.9 million.

• Operating expenses were NOK 44.67 million, slightly higher than NOK 43.6 million last year, mainly due to merger preparations.

• Cost/income ratio (excl. securities) was 44.49%, nearly unchanged from 44.38% last year.

Outlook and guidance

• The bank is well positioned in terms of market, liquidity, and capital strength, with a solid foundation for further development as a local bank.

• The merger with Tysnes Sparebank is expected to be completed in September 2025, following renegotiation of the exchange ratio.