SPAREBANK 1 ØSTLANDET (SPOL) Q3 2025 earnings summary

Executive summary

• Achieved a return on equity of 13.5% in Q3 2025, with result after tax of NOK 876 million, exceeding the long-term target of 13%.

• Net interest income showed strong development, with NOK 1,193 million in Q3, and market share increased in the retail segment amid high competition and margin pressure.

• Diversified income grew 7% excluding credit institutions, with increased insurance sales and high income from merged real estate operations.

• Significant investments in 2025 to simplify operations, redesign customer journeys, and modernize the organization, expected to support future profitability.

• Customer satisfaction improved significantly, moving from 14th to 7th place in EPSI's survey.

Financial highlights

• Net interest income including commissions from credit institutions increased by 2.2% from the previous quarter, reaching NOK 1,193 million, and net commissions and other income were NOK 508 million.

• Operating expenses rose to NOK 727 million, mainly due to increased personnel costs from new initiatives and ongoing strengthening.

• High loan loss provisions at NOK 121 million, mainly related to known exposures in the construction sector.

• Return on equity for Q3 2025 was 13.5%, compared to 14.1% for the same quarter last year.

• Cost/income ratio at 37.2%.

Outlook and guidance

• Investments in digitalization and process simplification are expected to improve efficiency and profitability in the coming years.

• The bank maintains a long-term return on equity target of at least 13% and aims for a dividend payout ratio of at least 50% of annual profit.

• Cost efficiency will be a key focus, with new cost targets to be communicated in early 2026.

• Economic outlook is improving, with lower interest rates and higher real wages expected to benefit households and businesses.