Pareto Bank (PARB) Q3 2026 earnings summary

Executive summary

• Q3 profit after tax was NOK 27.7m versus NOK 176.8m a year earlier; profit attributable to shareholders was NOK 14.5m versus NOK 163.7m, mainly reflecting higher credit losses.

• Quarter-end net loans were NOK 17,934m, down 7.6% from Q2 and from NOK 18,983m in Q3-25; further contraction is expected in Q4, while Swedish exposures are expected to grow.

• Long-term ROE ambition remains 15%, with an annual dividend policy of distributions of 50% or more.

Financial highlights

• Q3 net interest income was NOK 285.2m versus NOK 304.4m; total net income was NOK 279.0m versus NOK 305.6m.

• Operating expenses were NOK 50.7m versus NOK 59.2m; operating profit before impairments and losses was NOK 228.3m.

• Q3 pre-tax profit was NOK 32.5m versus NOK 231.3m; EPS was NOK 0.19 versus NOK 2.13.

• Impairments and losses were NOK 195.8m versus NOK 15.1m; recognized losses were NOK 134.3m versus NOK 8.5m.

• For 9M, net interest income was NOK 872.6m versus NOK 969.3m; profit after tax was NOK 555.9m versus NOK 675.6m, while profit attributable to shareholders was NOK 103.1m versus NOK 516.9m.

Outlook and guidance

• Q4 total loan volumes are expected to decline further, led by Norwegian property financing; business financing is expected flat, shipping flat to lower, and Sweden to grow.

• Commercial property exposure is expected flat to slightly lower; residential property financing volume is expected to keep declining.

• Credit quality remains uncertain in parts of the property-development portfolio; resolving projects and mitigating losses are priorities amid weak sales.

• Swedish activity and deal flow are expected to remain steady; approved commitments and a solid pipeline support growth through year-end and into 2027.