SPAREBANK 1 RINGERIKE HADELAND (RING) Q2 2025 earnings summary

Executive summary

• Strong underlying banking operations and financial gains led to robust results for H1 and Q2 2025, with net profit of NOK 391 million for H1 and significant year-over-year growth in ROE.

• One-time gain from the sale of SamSpar holdings and increased contributions from SpareBank 1 Gruppen boosted results.

• Loan growth remained subdued, especially in retail, due to competition, while deposit and diversified income growth were strong.

• High cost growth was driven by new hires, IT/alliance costs, and a NOK 8 million provision related to the TietoEvry legal case.

• The bank remains well-capitalized, benefiting from regulatory changes and a favorable market position.

Financial highlights

• Net profit after tax for H1 2025 was NOK 391 million; Q2 2025 net profit was NOK 244 million, up from NOK 141 million in Q2 2024.

• ROE reached 15.8% for H1 2025 (19.7% in Q2 2025), both significantly higher than prior year.

• CET1 ratio increased to 19.5%, up 2.7 percentage points in Q2, with 1.9 points from CRR3 rules and 0.6 from SamSpar sales.

• Cost/income ratio was 30.7% for H1 and improved to 33.8% in Q2 2025.

• Net interest income grew by 1.7% year-over-year; deposit growth was robust at 6.4%.

Outlook and guidance

• Mortgage demand is picking up, but competition remains high; business optimism is subdued but activity is improving.

• Norges Bank's rate cut in June and further expected reductions are anticipated to stimulate the housing market and local economy.

• The bank targets ROE above 11% and aims to distribute at least 60% of net profit as dividends and gifts.