Sparekassen Sjælland-Fyn (SPKSJF) Q1 2025 earnings summary

Executive summary

• Pre-tax profit rose 2% year-over-year to DKK 230.0 million, with a 19.1% annualized return on opening equity.

• Net profit increased 3% to DKK 181.1 million, corresponding to a 15.1% return on equity.

• Total business volume grew 4% year-over-year, driven mainly by the corporate segment.

• Credit quality remains strong, with loan impairment reversals of DKK 6.6 million.

• The bank maintains its full-year pre-tax profit guidance of DKK 625–750 million.

Financial highlights

• Net interest income fell 4% year-over-year to DKK 228.5 million due to lower interest rates.

• Net fee and commission income rose 3% to DKK 169.2 million, reflecting higher customer activity.

• Operating expenses increased 7% to DKK 245.8 million, mainly from higher staff and IT costs.

• Cost/income ratio was 54.5%, above the strategic target of below 50% by 2026.

• Basic earnings declined 7% to DKK 205.1 million, impacted by rising costs.

• Total lending increased 2% to DKK 13.1 billion; deposits grew 6% to DKK 22.3 billion.

• Total credit intermediation (loans plus mortgage lending) rose 4% to DKK 64.9 billion.

Outlook and guidance

• Full-year pre-tax profit guidance maintained at DKK 625–750 million, reflecting Q1 performance and macro uncertainties.

• Management expects continued business growth, especially in the corporate and mortgage segments.