SPAREBANK 1 HELGELAND (HELG) Q2 2025 earnings summary

Executive summary

• Pre-tax profit for H1 2025 was 361 million NOK, down 3 million NOK year-over-year, with Q2 profit at 171 million NOK, impacted by higher costs and lower investment income despite reduced loan losses and increased commission income.

• Return on equity (ROE) for H1 was 11.5% (adjusted), down from 12.0% last year; Q2 annualized ROE was 10.7%.

• Loan growth over 12 months was 4.6%, with personal market up 7.4% and business market down 2.7%.

• Cost increases were mainly due to a legal judgment, resulting in a 10 million NOK provision for IT-related expenses.

• Credit losses decreased to 12 million NOK in Q2 2025 from 19 million NOK in the previous quarter; H1 loan losses were 31 million NOK, down from 59 million NOK last year.

Financial highlights

• Net interest income for Q2 2025 was 234 million NOK, down 2 million NOK sequentially; H1 net interest income was 471 million NOK, down 32 million NOK year-over-year.

• Net commission and other income rose to 50 million NOK in Q2, up 9 million NOK from the previous quarter; H1 commission income was 90 million NOK, up 4 million NOK year-over-year.

• Operating expenses increased to 122 million NOK in Q2, up 16 million NOK, mainly due to the TietoEvry legal case; H1 cost/income ratio was 36.6%.

• Net profit after tax for Q2 2025 was 136 million NOK.

• Earnings per equity certificate (EKB) for H1 was 8.1 NOK, unchanged year-over-year.

Outlook and guidance

• Net interest margin is expected to decline further in 2025 due to lower rates, competition, and higher funding costs.

• Commission income and operating costs are projected to remain stable, with cost/income ratio below 40%.

• Loan losses are expected to decrease in 2025 compared to 2023 and 2024.

• Long-term ROE target remains at 12% after tax.

• Expectation of increased business market activity and credit growth in line with the regional market.