Tinde Sparebank (TINDE) Q2 2025 earnings summary

Executive summary

• Result after tax for Q2 2025 was NOK 43.2 million, down from NOK 47.6 million in Q2 2024, mainly due to merger costs and increased credit losses.

• Sunndal Sparebank and Romsdal Sparebank merged on June 2, 2025, forming Tinde Sparebank, aiming for a stronger local bank and improved competitiveness.

• The merger increased the bank's scale, with forretningskapital reaching NOK 19.2 billion at the end of Q2 2025.

Financial highlights

• Net interest income rose by NOK 20.6 million to NOK 111.3 million in H1 2025, a 22.7% increase year-over-year.

• Net commission and other operating income increased by NOK 15.0 million to NOK 40.9 million, up 57.8% year-over-year.

• Operating expenses rose by NOK 25.6 million to NOK 77.0 million, mainly due to merger-related costs and increased staffing.

• Credit losses booked at NOK 21.3 million, up NOK 17.7 million from H1 2024, mainly due to higher impairments on acquired portfolios.

• Cost/income ratio increased to 50.6% from 44.1% year-over-year; adjusted for one-offs, it was 44.5%.

Outlook and guidance

• Additional merger costs of about NOK 12 million are expected in H2 2025; synergy realization mainly from 2026.

• The bank targets a cost/income ratio below 40% and return on equity above 10% by 2030.

• Dividend policy aims for a payout ratio of 70–100%, subject to capital and regulatory considerations.

• Short-term profitability will be under pressure due to temporarily higher costs from the merger.