Romerike Sparebank (ROMER) Q2 2025 earnings summary

Executive summary

• Pre-tax profit reached 154.3 MNOK for H1 2025, up from 138.5 MNOK year-over-year, driven by lower loan loss provisions and higher commission income.

• Net profit after tax was 123.4 MNOK, with annualized ROE at 10.9%, adjusted for hybrid capital.

• Strong lending growth to retail customers, surpassing 20 BNOK in total loans.

• Cost/income ratio improved to 40.4% over the last 12 months, down from 43.2% a year ago.

• New CRR3 standard method has strengthened capital adequacy and growth capacity.

Financial highlights

• Net interest income for H1 2025 was 188.5 MNOK, slightly down from 193.5 MNOK year-over-year due to higher funding costs and lower lending margins.

• Net commission and other operating income increased by 20.9 MNOK, mainly from higher dividends and positive financial instrument revaluations.

• Operating expenses rose to 95.9 MNOK from 89.8 MNOK, mainly due to increased staffing.

• Loan loss provisions dropped to 3.1 MNOK from 9.1 MNOK year-over-year.

• Total assets reached 18.9 BNOK, up 2.0 BNOK over 12 months.

Outlook and guidance

• Well-capitalized for further organic growth, with focus on expanding in the Romerike region.

• New offices in Lørenskog and planned branch in Jessheim to enhance regional presence.

• Continued emphasis on digitalization and operational efficiency to boost competitiveness.

• Norges Bank reduced policy rate to 4.25% in June, with expectations for further cuts if economic conditions allow.