SPAREBANK 1 RINGERIKE HADELAND (RING) Q3 2025 earnings summary

Executive summary

• Return on equity for Q3 2025 was 14.8% (13.3% adjusted for extraordinary income), with net profit after tax of NOK 141 million and strong financial gains, high dividend capacity, and solid capital adequacy.

• Result after tax for Q3 2025 was NOK 161 million, down from NOK 249 million in Q3 2024, mainly due to fewer one-off financial gains.

• Cost/income ratio ranged from 32% to 39.1%, reflecting operational efficiency.

• The bank remains well-capitalized and plans to propose a 100% dividend payout for 2025, subject to Q4 results.

Financial highlights

• Earnings per share (EPS) reached NOK 34.32 for the period, while earnings per equity certificate for the quarter was NOK 9.99.

• Net interest income increased by 0.8% year-over-year but was NOK 203 million for Q3 2025, slightly down from NOK 211 million in Q3 2024.

• Net commission and other income increased to NOK 101 million from NOK 91 million year-over-year, with high growth in commission income from insurance, real estate, and accounting services.

• Loan losses were NOK 2 million, down from NOK 11 million in Q3 2024, with low loan losses and stable portfolio quality.

• Total income for the quarter was NOK 336 million, down from NOK 443 million in Q3 2024.

Outlook and guidance

• Expectation to pay out 100% of profit for 2025 as dividends, subject to financial development in Q4.

• The bank aims for a minimum ROE of 11% over time and expects continued solid capitalization.

• Norges Bank reduced the policy rate by 0.5 percentage points in 2025, with further cuts signaled, potentially stimulating local economic growth.

• Continued strong competition in the mortgage market and subdued credit demand in the corporate segment.

• Low default and loss levels expected to persist, but may rise slightly due to higher interest rates and inflation.