MELHUS SPAREBANK (MELG) Q2 2026 earnings summary

Executive summary

• Result after tax for Q2 2026 was 68.1 MNOK, down from 76.6 MNOK in Q2 2025, mainly due to lower net interest income and reduced commission from Eika Boligkreditt.

• Strong loan growth in the retail segment (8.5% YoY), while corporate lending declined slightly.

• Deposit growth was robust at 8.17% YoY, with a deposit coverage ratio of 85.34%.

Financial highlights

• Net interest income for Q2 2026 was 117.7 MNOK, down from 127.8 MNOK in Q2 2025; net interest margin fell to 1.93% from 2.25%.

• Total operating income (excluding securities) was 51.8 MNOK, nearly unchanged YoY.

• Operating expenses increased to 82.6 MNOK from 77.6 MNOK YoY; cost/income ratio rose to 48.8% from 43.1%.

• Loan losses and impairments were 1.4 MNOK, down from 6.4 MNOK YoY.

• Earnings per equity certificate (EKB) for Q2 2026 was 6.69 NOK.

Outlook and guidance

• Long-term targets remain: ROE above 10%, credit growth between 6–8%, and cost/income ratio below 45%.

• ROE and cost ratio are under pressure due to competition and margin compression.

• The bank expects continued solid growth and profitability, supported by a robust local economy.