SPAREBANK 1 ØSTLANDET (SPOL) Q4 2025 earnings summary

Executive summary

• Achieved all financial targets for 2025, with return on equity of 13.9% for the year and 13.3% for Q4, both above the long-term target of 13%.

• Profit after tax for 2025 was NOK 3,549 million, up from NOK 3,356 million in 2024.

• Board proposes a record dividend of NOK 12.7 per equity certificate and NOK 582 million in customer dividends.

• Merger with Totens Sparebank completed, strengthening market position in the Mjøs region.

• Customer satisfaction remains high, with the bank ranking best among large banks in the 2025 EPSI survey.

Financial highlights

• Net interest income for 2025 was NOK 4,711 million, up from NOK 4,213 million in 2024.

• Net commission and other operating income increased to NOK 2,155 million, driven by a NOK 163 million gain from the sale of Youngstorget 5 AS.

• Cost/income ratio for 2025 was 40.2%, up from 37.4%.

• CET1 capital ratio at year-end was 17.6%, up from 16.8%.

• Earnings per equity certificate for 2025 was NOK 18.19.

Outlook and guidance

• 2026 is expected to be a year of consolidation, with a focus on cost efficiency and maintaining profitability above 13% ROE.

• Cost/income ratio target set below 40% (excluding merger costs), with 2027 costs not to exceed 2025 levels.

• Dividend payout ratio ambition of at least 50%, with 70% proposed for 2025 due to strong capital position.

• Board notes regulatory uncertainty regarding capital structure for Norwegian savings banks.

• Gradual improvement expected in household and business financial conditions, but construction sector remains weak.