SPAREBANK 1 RINGERIKE HADELAND (RING) Q1 2025 earnings summary

Executive summary

• Net income reached NOK 148 million in Q1 2025, with EPS of 9.18 and return on equity at 12.2%, though income growth slowed to 2.6% year-over-year.

• Cost-to-income ratio ranged from 34.6% to 40.8%, reflecting efficient operations but higher personnel and alliance costs.

• Loan growth matched or slightly exceeded market at 2.8%, with deposit growth accelerating to 7.0–8.5%.

• Credit quality remained strong with low loan losses and delinquencies, but higher provisions due to macroeconomic uncertainty.

• Strategic reallocation and sale of SamSpar stakes expected to yield a Q2 gain of NOK 58 million and improve CET1 by up to 1.0 percentage point.

Financial highlights

• Net income: NOK 148 million in Q1 2025, up from NOK 145 million in Q1 2024.

• Net interest income was NOK 198 million; net commission and other income totaled NOK 93 million.

• Costs rose 6.4% to NOK 133 million, mainly due to new hires and higher alliance costs.

• CET1 ratio at 16.8%; cost-to-income ratio between 34.6% and 40.8%.

• EPS: 9.18; Price/Book: 1.03–1.22.

Outlook and guidance

• Norges Bank expected to cut rates twice in 2025; housing prices forecast to rise, especially in central regions.

• Bank targets lending growth 1–1.5 percentage points above market, minimum 11% ROE, and at least 60% payout ratio.

• New capital requirements (CRR3) effective April 2025 will improve CET1 by 0.5–1.0 percentage points.

• Continued focus on cost control, digitalization, and strengthening customer concepts.

• Delinquencies and losses may rise due to persistent high interest rates and inflation.