SPAREBANK 1 ØSTLANDET (SPOL) Q2 2025 earnings summary

Executive summary

• Return on equity reached 14.9% in Q2 2025, with profit after tax of NOK 917 million, supported by strong income growth and minimal loan losses.

• Net interest income grew solidly, driven by high retail activity, moderate corporate growth, and a new income model in covered bond companies.

• Non-interest income saw strong growth, especially in insurance and real estate brokerage, with record earnings in real estate brokering.

• High cost growth was driven by IT, merger-related expenses, and increased staffing, with some one-off effects.

• Merger with Totens Sparebank completed, including integration milestones and new customer service center.

Financial highlights

• Net interest income for Q2 2025 was NOK 1,159 million, up from NOK 1,008 million year-over-year.

• Net profit from financial assets and liabilities rose to NOK 248 million in Q2 2025 from NOK 142 million in Q2 2024.

• Total operating expenses increased to NOK 785 million in Q2 2025, mainly due to merger and personnel costs.

• Impairment losses on loans and guarantees were NOK 1 million, down from NOK 39 million year-over-year.

• Earnings per equity capital certificate reached NOK 4.71 in Q2 2025, up from NOK 4.09 year-over-year.

Outlook and guidance

• Rate cut from Norges Bank is expected to positively impact rate-sensitive sectors and support market activity.

• Management targets a return on equity of at least 13% long-term, with cost efficiency and capital adequacy as strategic priorities.

• Board notes regulatory uncertainty and geopolitical risks but expects improved household finances and continued growth opportunities.