Tysnes Sparebank (TYSB) Q1 2025 earnings summary

Executive summary

• Result before losses and tax was NOK 10.6 million, down NOK 5.9 million year-over-year, mainly due to reduced net interest income from a deliberate reduction in the loan portfolio to strengthen solidity.

• Net loss after tax was NOK -17.6 million, driven by a NOK 35 million loss provision related to the revised merger plan and confirmed losses on property projects.

• The bank is progressing toward a merger with Haugesund Sparebank, expected to complete on September 1, 2025.

Financial highlights

• Net interest income fell by NOK 6.4 million year-over-year; net interest margin at 2.31%.

• Net commission income increased by NOK 1 million to NOK 3.99 million, mainly from Eika Boligkreditt and insurance.

• Total operating costs rose by NOK 1.3 million to NOK 13.5 million; cost/income ratio at 55.2%.

• Credit losses totaled NOK 34.4 million, with 7.3% of total loans classified as credit-impaired.

• Return on equity was -18.7% for the quarter.

Outlook and guidance

• Focus remains on maintaining solid operations, monitoring credit growth, and ensuring liquidity and capital adequacy.

• The underlying banking operations are stable despite significant loss provisions.

• The merger with Haugesund Sparebank is expected to provide a strong foundation for future development.