Romerike Sparebank (ROMER) Q1 2025 earnings summary

Executive summary

• Pre-tax profit reached NOK 59.1 million in Q1 2025, up from NOK 56.4 million year-over-year, driven by lower loan loss provisions and higher commission income.

• Strong lending growth to retail customers, with gross loans including Eika Boligkreditt up 13.0% year-over-year.

• Solid capital position with a CET1 ratio of 18.9% and a cost/income ratio of 41.2% over the last 12 months.

• Dividend of NOK 10.50 per equity certificate paid in April.

Financial highlights

• Net interest income was NOK 94.1 million, down from NOK 95.7 million due to higher funding costs and lower lending margins.

• Net commission and other operating income increased by NOK 2.9 million, mainly from Eika Boligkreditt and Fremtind Forsikring.

• Operating expenses rose to NOK 51.9 million, reflecting increased staffing and new advisory office openings.

• Net loan loss provisions were a positive NOK 0.8 million, compared to a NOK 4.6 million cost last year.

• Net profit after tax was NOK 44.8 million, with EPS at NOK 2.51, down from NOK 2.58 year-over-year.

Outlook and guidance

• Positioned for further growth, supported by strong capital and a growing customer base in a high-migration region.

• New capital requirements (CRR3) from April 2025 lower capital needs for property-secured portfolios, supporting future expansion.

• Focus on continued lending growth, efficiency improvements, and market share gains in 2025.