MELHUS SPAREBANK (MELG) Q2 2025 earnings summary

Executive summary

• Result after tax for Q2 2025 was NOK 76.6 million, up from NOK 67.6 million in Q2 2024, driven by increased lending volume, stable net interest, higher commission income, and dividends.

• Return on equity reached 10.51% versus 9.81% a year earlier, exceeding the long-term target of 10%.

• Lending growth including transferred portfolios was 6.21% over 12 months, with customer deposits up 2.31%.

• Cost/income ratio improved to 43.1% from 44.5% in Q2 2024.

Financial highlights

• Net interest income was NOK 127.8 million, nearly unchanged from NOK 127.9 million in Q2 2024; net interest margin was 2.25%.

• Other operating income rose to NOK 52.3 million from NOK 41.4 million, with higher commissions from insurance and fund sales.

• Operating expenses increased to NOK 77.6 million, mainly due to higher personnel costs from planned hiring.

• Loan losses and impairments were NOK 6.4 million, down from NOK 6.8 million a year ago.

• Earnings per equity certificate were NOK 8.03, up from NOK 7.47 in Q2 2024.

Outlook and guidance

• The bank maintains a solid foundation for continued profitable growth, targeting ROE above 10%, credit growth of 6–8%, and cost/income below 45% for 2025.

• Management expects stable operations, strong liquidity, and robust capital going forward.