Trøndelag Sparebank (TRSB) Q1 2025 earnings summary

Executive summary

• Net profit after tax for Q1 2025 was NOK 17.3m, down from NOK 19.3m in Q1 2024.

• Achieved strong growth as a local bank on the Trøndelag coast, with business capital of NOK 10.9bn and equity of NOK 1.1bn.

• Listed on Euronext Oslo Børs main list since December 2024, increasing liquidity and capital access; holds BBB+ rating with negative outlook as of May 2025.

• Net interest income for Q1 2025 was NOK 51.4m (NOK 50.8m in Q1 2024); net interest margin at 2.19% (2.36%).

• Return on equity (ROE) after hybrid capital interest was 6.0% (8.0% in Q1 2024).

Financial highlights

• Lending portfolio including Eika Boligkreditt reached NOK 9.2bn; 12-month loan growth at 9.9%.

• Customer deposits increased 9.9% year-over-year to NOK 6.3bn; deposit coverage ratio at 79.3%.

• Total operating costs for Q1 2025 were NOK 41.2m (NOK 39.7m in Q1 2024); cost/income ratio at 63.9% (62.6%).

• Consolidated capital adequacy: 21.29% (up from 21.03% year-over-year).

• Liquidity Coverage Ratio (LCR): 285%, well above the 100% requirement.

Outlook and guidance

• Management expects continued strong growth in 2025, supported by high activity in key sectors.

• New capital requirements (CRR3) from April 2025 expected to increase core capital ratio by about 2.0%.

• Internal capital target for consolidated CET1 ratio set at 16.46% including buffer.

• Anticipated interest rate cuts in 2025 may reduce income but ease customer burdens, especially in commercial real estate.

• Ongoing focus on maintaining capital adequacy above regulatory thresholds.