SKUE SPAREBANK (SKUE) Q4 2025 earnings summary

Executive summary

• Achieved strong loan growth in the retail market and continued to gain market share in core areas.

• Completed technical and legal mergers with Hjartdal, Gransherad, and Tinn Sparebank, and established five new foundations.

• Proposed 100% distribution of 2025 annual profit as gifts and dividends, totaling NOK 22.27 per equity certificate.

• Significant value creation from Eika ownership, with increased value and dividends impacting extended results.

Financial highlights

• Net interest income rose 19% year-over-year to NOK 561.5 million; net commission income up 35.4%.

• Result before tax for 2025 was NOK 391.8 million, with total comprehensive income at NOK 439.8 million, up 40.2%.

• Return on equity (ROE) from total result was 13.4%; ROE excluding hybrid capital was 9.1%.

• One-off merger costs were NOK 22.9 million in 2025.

• Net loan losses totaled NOK 29.7 million; net non-performing loans increased to NOK 132.9 million.

Outlook and guidance

• Focus on capital optimization through organic growth and increased dividends.

• Continued efficiency improvements expected after two years of mergers; further merger costs anticipated in H1 2026.

• New dividend strategy targets 75-100% payout of annual profit.

• Norges Bank expected to lower policy rate 1-2 times in 2026, with moderate economic growth and sector-specific challenges.