SPAREBANKEN MØRE (MORG) Q2 2025 earnings summary

Executive summary

• Net profit after tax for H1 2025 was NOK 475 million, down from NOK 555 million in H1 2024, with ROE at 11.5% versus 14.1% year-over-year.

• Profit before tax for H1 2025 was NOK 619 million, down 14.9% year-over-year; Q2 2025 profit before tax was NOK 317 million, down from NOK 394 million in Q2 2024.

• Cost/income ratio increased to 43.1% in H1 2025 from 40.3% in H1 2024, reflecting higher operating costs.

• Lending grew by 5.1% and deposits by 6.5% over the past 12 months, with strong liquidity and capital ratios.

• Credit losses remained low at NOK 47 million (0.09% of GFK) in H1 2025.

Financial highlights

• Net interest income for H1 2025 was NOK 988 million (1.88% of GFK), down 3.7% year-over-year.

• Other income increased by 13.8% to NOK 182 million, driven by higher commission and fee income.

• Operating expenses rose 5.6% to NOK 504 million in H1 2025.

• Total assets reached NOK 110,978 million, up 11.1% from a year earlier.

• Earnings per equity certificate (EKB) were NOK 4.39 in H1 2025, down from NOK 5.26 in H1 2024.

Outlook and guidance

• Expectation of moderate growth in house prices in coming quarters after a 6.6% national increase in H1 2025.

• Norwegian economy is in cautious upswing, with real wage growth supporting household consumption.

• Lower interest rates anticipated to further stimulate activity, though international uncertainty persists.

• Lending growth expected to remain high, though slightly below 2024 levels; deposit-to-loan ratio remains strong.

• Long-term targets: return on equity above 13% and cost/income ratio below 40%.