SpareBank 1 Sør-Norge (SB1NO) Q3 2026 earnings summary

Executive summary

• Q3 pre-tax operating profit was NOK 2,177m and after-tax profit was NOK 1,757m; ROE was 13.2%, or 14.2% excluding merger goodwill.

• Nine-month pre-tax profit was NOK 6,264m; ROE was 12.6%, or 13.5% excluding merger goodwill. Lending growth, cost control and low credit losses supported results, while margin pressure weighed.

Financial highlights

• Net interest income was NOK 2,237m, down NOK 92m YoY and up NOK 91m QoQ; the QoQ increase was NOK 67m adjusted for days.

• Net fee and other income was NOK 771m, down NOK 7m YoY; excluding ECIT Forretningspartner commissions, it rose NOK 32m.

• Net financial investment income was NOK 462m, up NOK 19m YoY, including an NOK 80m gain on the Forretningspartner sale.

• Operating expenses were NOK 1,208m, down NOK 106m YoY; excluding 2025 merger costs and Forretningspartner costs, expenses rose NOK 4m.

• Nine-month net profit was NOK 5,034m, down NOK 68m YoY.

Outlook and guidance

• Long-term targets: ROE above 14%, cost-to-income ratio below 35% and minimum CET1 ratio of 16.71%.

• Dividend policy targets cash distributions of ~50% of annual profit; buybacks may supplement distributions, subject to capital needs and strategic plans.

• Annual merger cost synergies are estimated at NOK 550m from 2027; delivery of funding, operating and cost synergies is on plan.

• Norges Bank expects the 4.50% policy rate to remain for some time; domestic growth is moderate and international conditions uncertain.