SPAREBANK 1 NORD-NORGE (NONG) Q3 2026 earnings summary

Executive summary

• 9M26 pre-tax profit was NOK 2,996m vs NOK 3,296m, with ROE at 16.0% vs 19.0%; 3Q26 profit after tax was NOK 812m vs NOK 903m YoY.

• Lending grew 8.2% in RM and 10.0% in CM over 12 months, within 2026 growth ambitions.

• Underlying banking activity and alliance contributions supported results, while lower investment income and higher credit losses weighed on YTD earnings.

Financial highlights

• 9M26 operating income was NOK 4,626m vs NOK 4,845m; operating costs were NOK 1,529m vs NOK 1,526m.

• 9M26 net interest income was NOK 2,926m vs NOK 2,950m; net fee, commission and other operating income rose to NOK 1,197m from NOK 1,136m.

• YTD net income from financial investments was NOK 503m vs NOK 759m; net losses were NOK 101m vs NOK 23m, and profit after tax was NOK 2,378m vs NOK 2,665m.

• 3Q26 net interest income was NOK 1,018m vs NOK 987m YoY, up NOK 48m QoQ; full effect of rate changes expected from late November.

Outlook and guidance

• 2026 lending growth expectations are 6–9% in RM and 7–10% in CM; profitable lending growth and alliance/subsidiary contributions are expected to support income.

• Favorable ROE outlook is supported by cost control, low credit losses, alliance contributions and retail lending growth; long-term ROE target is >14%.

• Intense pricing competition and NIBOR repricing faster than customer rates pressure 2026 margins; higher policy rates are expected to help as the curve flattens.

• Efficiency programme expected to deliver NOK 40–50m in annual savings from 2027 vs 2025; management remains confident of meeting the 2026 C/I target.

• Long-term targets: C/I ratio <35%, ROE >14%, dividend payout >50%, and CET1 ratio 15.56%.