Skjern Bank (SKJE) Q2 2025 earnings summary

Executive summary

• Result before tax for H1 2025 was DKK 168.7 million, down 10.7% year-over-year, but considered satisfactory given interest rate declines.

• Net profit after tax delivered a return on equity of 13.1% p.a.

• Customer growth and increased business activity led to a 5.9% rise in loans and 12.6% increase in deposits compared to H1 2024.

• The bank was named Financial Company of the Year for small institutions in Q2 2025.

• The CEO transitioned at the end of June 2025, with Thomas Baun appointed as the new CEO.

Financial highlights

• Net interest and fee income rose 2.9% year-over-year to DKK 337.5 million.

• Net interest income fell by DKK 10.7 million to DKK 201.2 million compared to H1 2024.

• Net fee and commission income increased to DKK 111.6 million from DKK 99.5 million year-over-year.

• Dividend income grew to DKK 24.7 million from DKK 16.4 million year-over-year.

• Operating expenses rose by DKK 25.5 million (18.5%) to DKK 163.2 million.

Outlook and guidance

• Full-year basis result guidance maintained at DKK 290–310 million; pre-tax result expected at the top of DKK 280–310 million range.

• Loan growth for the full year is expected at 4–6%.

• Continued pressure on interest margins anticipated due to competition and potential rate cuts.