SPAREBANK 1 NORD-NORGE (NONG) Q1 2026 earnings summary

Executive summary

• Pre-tax profit for 1Q26 was NOK 924 million, down from NOK 1,008 million in 1Q25, reflecting lower net interest income and financial investments.

• Result after tax for 1Q26 was NOK 719 million, down from NOK 811 million in 1Q25, mainly due to negative fair value adjustments and weaker net interest income, partially offset by increased commission income, including a NOK 52 million one-off effect.

• Return on equity (ROE) was 14.9% in 1Q26, compared to 17.4% in 1Q25, but remains above the long-term target of 14%.

• Cost/income ratio increased to 35.3% from 31.6% year-over-year, broadly in line with targets.

• Lending growth annualised at 5.5%, with the Group gaining market share and maintaining low credit losses.

Financial highlights

• Net interest income for 1Q26 was NOK 938 million (2.62% of average assets), down from NOK 986 million (2.91%) in 1Q25.

• Net fee, commission, and other operating income rose to NOK 434 million from NOK 360 million, boosted by a NOK 52 million one-off effect.

• Net income from financial investments dropped to NOK 94 million from NOK 211 million, mainly due to negative fair value changes.

• Operating expenses increased to NOK 518 million from NOK 492 million in 1Q25.

• Result for the period was NOK 719 million, with EPS at NOK 3.15 (down from NOK 3.57).

Outlook and guidance

• Interest rate expectations reversed in 1Q26, with anticipated hikes supporting net interest income.

• Lending growth is expected to continue in both Retail (6–9%) and Corporate (2–5%) markets for 2026.

• Net interest income is expected to remain under pressure due to weak loan growth and intense competition, with no improvement in interest margin despite higher policy rates.

• ROE target of above 14% is considered achievable for 2026, supported by cost discipline and low credit losses.

• CET1 ratio target set at 15.56%, with actual CET1 at 16.5% as of 31 March 2026.

• Dividend payout ratio policy remains above 50%, with 2025 payout at 55.6%.