SPAREBANK 1 HELGELAND (HELG) Q4 2025 earnings summary

Executive summary

• Result before tax for 2025 was 650 million NOK, down from 743 million NOK the previous year, mainly due to higher loan losses and increased costs.

• Q4 2025 pre-tax profit was 88 million NOK, down from 200 million NOK in Q3, driven by high loan losses, reduced financial investment results, and increased costs.

• Return on equity (ROE) was 9.7%, below the long-term target of 12%.

• The quarter was marked by significant loan losses, reduced results from financial investments, and increased operating expenses.

• Proposed dividend is NOK 7.67 per equity certificate, representing 51.4% of group profit.

Financial highlights

• Net interest income for Q4 2025 was 227 million NOK, a decrease of 8 million NOK from the previous quarter; full-year net interest income was 932 million NOK, down 80 million NOK year-over-year.

• Net commission and other income for Q4 was 53 million NOK, up 3-4 million NOK sequentially; full-year total was 193 million NOK, up 10 million NOK year-over-year.

• Operating expenses rose to 124 million NOK in Q4, representing 42.0% of total income, above the target of 40%; full-year cost/income ratio was 37.2%.

• Loan losses in Q4 were 82 million NOK, up sharply from 6 million NOK in the previous quarter, mainly due to a single large bankruptcy; full-year loan losses were 119 million NOK, up 17 million NOK year-over-year.

• Net profit after tax for Q4 2025 was 56 million NOK.

Outlook and guidance

• Net interest income is expected to decline in 2026 due to potential rate cuts, strong price competition, and higher funding costs.

• Cost reduction measures are being implemented to bring operating expenses below 40% of income.

• Loan losses are expected to decrease in 2026 compared to 2023–2025.

• Commission income is expected to remain stable, with a slight increase in the commission margin.

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