Morrow Bank (MORROW) Q4 2025 earnings summary

Executive summary

• Achieved profit before tax of NOK 369 million for 2025, up 31% year-over-year, with NOK 100 million in Q4.

• Completed redomiciliation to Sweden and Nasdaq Stockholm listing, reducing capital requirements and improving capital efficiency.

• Loan book grew 21% year-over-year to NOK 18.5 billion (SEK 17 billion), driven by organic growth and portfolio acquisitions.

• Cost/income ratio improved to 25% in Q4 2025 (excluding one-offs), reflecting increased operational efficiency.

• Focus remains on organic growth, accretive M&A, and capital efficiency, with ambitions for continued Nordic expansion.

Financial highlights

• Total income for Q4 2025 was NOK 378 million, up 7% year-over-year, with net interest income at NOK 360.6 million.

• Earnings per share for 2025 was NOK 1.13.

• Loan loss ratio improved to 3.9% in Q4 2025 from 4.6% a year ago.

• Profit after tax for Q4 was NOK 75.6 million, up from NOK 60.4 million in Q4 2024.

• Cost/income ratio at 25% in Q4, with a target of 23% by end of 2026.

Outlook and guidance

• End-2026 loan book target raised to SEK 19 billion, with ambitions for >10% annual organic growth and ~20% ROTE by 2028.

• Return on target equity guided at 17% for 2026 and 20% by 2028.

• Cost/income ratio target of ~23% for 2026 and ~22% for 2028; loan loss ratio target of ~4%.

• Dividend decision for 2025 pending, to be communicated with AGM notice in March 2026.

• 2028 profit after tax ambition of SEK 400-500 million, with potential for SEK 700-800 million in excess capital.