SpareBank 1 Sør-Norge (SB1NO) Q2 2026 earnings summary

Executive summary

• Q2 pre-tax profit was NOK 2,082m, up NOK 76m QoQ and NOK 32m YoY; ROE was 12.7%, or 13.6% excluding merger goodwill.

• Lending grew 2.6% in Q2; deposit growth was 6.4%.

• Merger synergies are progressing ahead of plan, with the annual target raised to NOK 550m by 2027.

• Merger with EM1 Telemark was completed; operational and management structures were unified.

• Agreed to sell 55.2% of Forretningspartner to focus on core operations and improve capital efficiency.

Financial highlights

• Net interest income was NOK 2,146m, down NOK 34m QoQ and NOK 164m YoY amid margin pressure.

• Net commission and other income was NOK 888m, up NOK 89m QoQ and NOK 30m YoY, led by real estate and payment facilities.

• Operating expenses were NOK 1,298m, up NOK 16m QoQ and down NOK 116m YoY, reflecting cost control and the absence of prior-year one-offs.

• Impairment losses were NOK 54m, or 5 bps, below the stated normal-quarter range of 12–15 bps.

• Net income on financial investments was NOK 400m, up NOK 32m QoQ, mainly from higher income from ownership interests.

Outlook and guidance

• Long-term ROE target is above 14%; targets also include cost-to-income below 35% and CET1 above 16.74%.

• Annual dividend payout policy is ~50% of net profit, supplemented by share buybacks; a new buyback of up to 1% of shares was approved.

• Annual operational synergy target is NOK 550m by 2027.

• Funding synergies are expected to progress in H2 as public deposits decline and lending growth supports more certificate issuance; full effect expected from 2027.

• The EUR certificate program had issued EUR 1bn by Q2-end, against a guided ending range of EUR 2bn–EUR 3bn.