Haugesund Sparebank (HGSB) Q2 2025 earnings summary

Executive summary

• Delivered pre-tax profit of NOK 142.9m for H1 2025, up from NOK 114.3m year-over-year, driven by higher lending volumes, dividends from Eika, and value gains on financial instruments.

• Net profit after tax reached NOK 115.8m for Q2, compared to NOK 86.0m last year, reflecting strong post-tax performance.

• Total comprehensive income for the quarter was NOK 123.8m, up from NOK 88.1m, mainly due to value changes in Eika Group shares.

• Lending growth remains robust at 8.37% on balance and 5.20% including transferred volume to Verd Boligkreditt.

• The ongoing merger process with Tysnes Sparebank is expected to complete by September 1, 2025.

Financial highlights

• Net interest income for H1 2025 was NOK 178.4m, up from NOK 172.5m year-over-year.

• Net commission and other operating income totaled NOK 62.9m in Q2, up from NOK 45.2m.

• Net income from financial investments reached NOK 39.9m, mainly from Eika Group dividends.

• Operating expenses decreased to NOK 89.0m from NOK 95.4m, with cost-to-income ratio (excl. securities) at 44.23% versus 49.43%.

• Total assets at period end were NOK 17.0bn, up 9.4% year-over-year.

• Customer deposits grew 12.45% to NOK 10.36bn.

Outlook and guidance

• Well positioned in terms of market, liquidity, and solidity, with a strong foundation for further development as a local bank.

• Merger with Tysnes Sparebank progressing as planned, with completion targeted for September 2025.