JÆREN SPAREBANK (JAREN) Q1 2025 earnings summary

Executive summary

• Achieved strong lending and deposit growth, with market share gains and stable financial performance year-over-year.

• Maintained solid capital and liquidity positions, with low levels of problem loans and stable net interest income.

• Profit before tax for Q1 2025 was NOK 74.6 million, down from NOK 78.4 million in Q1 2024, mainly due to higher personnel costs and lower securities income.

• Continued focus on cost control, digitalization, and sustainability, including green bond issuance and a new core banking solution.

• Return on equity after tax was 8.7% in Q1 2025, below the long-term target of 11%.

Financial highlights

• Net interest income was NOK 101.5 million in Q1 2025, unchanged year-over-year.

• Net profit after tax was NOK 56.3 million in Q1 2025, down from NOK 59.7 million in Q1 2024.

• Cost/income ratio increased to 42.5% in Q1 2025 from 39.3% in Q1 2024.

• Net commission income rose to NOK 27.6 million from NOK 24.2 million year-over-year.

• Operating expenses increased to NOK 55.0 million, mainly due to higher personnel costs.

Outlook and guidance

• Expects stable net interest margins and continued growth in lending and deposits, with focus on maintaining strong capital and liquidity.

• Anticipates gradual reduction in policy rates from H2 2025, supporting margin stability.

• Strategic goals for 2025–2027 include cost/income below 40%, ROE above 11%, and lending growth above market.

• External uncertainties remain due to geopolitical instability, high prices, and a weak NOK.