SPAREBANKEN NORGE (SBNOR) Q1 2025 earnings summary

Executive summary

• Achieved strong Q1 2025 results with ROE at 21.3%, well above the >13% target, and pre-tax profit of NOK 1,415 million, up from NOK 1,256 million.

• Maintained robust capital position, with CET1 ratio at 17.9%, exceeding the 16.05% target.

• Continued growth in lending and deposits, with solid performance across personal and corporate segments.

• Completed legal merger to form Sparebanken Norge, now the largest savings bank in Norway.

• Net commission income rose to NOK 298 million, supported by higher activity in payments and real estate brokerage.

Financial highlights

• Net interest income increased to NOK 1,586 million in Q1 2025, up from NOK 1,462 million in Q1 2024.

• Cost/income ratio improved to 27.7%, below the 30% target, including NOK 50 million in merger costs.

• Earnings per equity certificate (EPC) at NOK 4.78 in Q1 2025.

• Lending growth over 12 months was 9.2%, with customer deposits up 6.0%.

• Liquidity Coverage Ratio (LCR) at quarter-end was 194%.

Outlook and guidance

• On track to meet 2025 financial targets for ROE, CET1 ratio, and cost efficiency.

• Strategic focus on digitalization, cost synergies, and market share growth in both personal and business markets.

• Merger with Sparebanken Sør creates the largest Norwegian savings bank, with over NOK 450 billion in loans.

• Annual lending growth targets: 4–5% for retail, 6% for corporate; deposit growth: 4–5% retail, 5% corporate.

• Market outlook is cautiously optimistic, with expectations of lower inflation, potential rate cuts, and real wage growth, but global trade tensions may increase uncertainty.