SPAREBANK 1 HELGELAND (HELG) Q3 2025 earnings summary

Executive summary

• Pre-tax profit for the first nine months of 2025 was NOK 561 million, slightly down from NOK 565 million year-over-year, with a return on equity of 11.7% adjusted for hybrid capital.

• Q3 2025 pre-tax profit was NOK 200 million, up NOK 29 million from the previous quarter, driven by lower loan losses, higher financial investment results, and reduced costs.

• Annualized return on equity after tax (excluding hybrid capital) was 12.3% in Q3, up from 10.7% in Q2.

• Cost/income ratio improved to 33.8% in Q3, and was 35.7% YTD, both below the 40% target.

Financial highlights

• Net interest and credit commission income in Q3 2025 was NOK 235 million, nearly unchanged from the previous quarter, representing 2.31% of average total assets.

• Net commission and other income remained stable at NOK 50 million in Q3, with NOK 140 million for the first nine months, up NOK 6 million year-over-year.

• Net result from financial assets and liabilities was NOK 27 million in Q3, up NOK 6 million sequentially, and NOK 85 million for the first nine months, up NOK 15 million year-over-year.

• Operating costs were NOK 105 million in Q3, a reduction of NOK 17 million, mainly due to periodization effects and corrections from previous quarters.

• Loan losses were NOK 6 million in Q3 2025, down from NOK 12 million in Q2, and NOK 37 million for the period, down from NOK 76 million last year.

• Total assets under management reached NOK 40.5 billion, up from NOK 37.3 billion year-over-year.

Outlook and guidance

• Net interest income is expected to decline due to rate cuts, strong price competition, and higher funding costs, while commission income is projected to remain stable.

• Operating costs are expected to stay within the target of below 40% of total income.

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

• The bank maintains a long-term return on equity target of 12%.