SpareBank 1 Østlandet’s consolidated profit after tax for the first quarter of 2025 was NOK 867 (860) million. The return on equity was 14.1 (17.4) percent.
This was the first full quarter as a merged bank with Totens Sparebank. The financial results were overall very solid, with good income growth, moderate impairments, and somewhat lower cost growth.
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“SpareBank 1 Østlandet delivers a strong first quarter in 2025. In the retail market, we experienced one of our best first quarters ever, with unusually high activity. Real estate brokerage has contributed very well so far in 2025, and other broad-based income in our underlying core business is also solid”, says Group CEO Klara-Lise Aasen.
Net interest income including commissions from the covered bond companies was NOK 1,278 million, an increase of 4.8 percent from the same quarter last year (pro forma). In the retail market, the bank’s loan volume increased by 4.9 percent. The number of mortgage applications created in the first quarter was about twice as many as in the same period last year. In the corporate market, demand is lower and competition is increasing. The loan volume to businesses is 3.7 percent higher than at the same time last year but has been roughly unchanged over the past couple of quarters.
The bank’s commission income is rising well, with 14.3 percent from the first quarter last year, excluding commissions from the covered bond companies and on a pro forma basis. Real estate brokerage commissions have increased significantly due to high activity in the existing housing market. Commission income from insurance is also growing well, driven by low claims payments, good sales, and price adjustments. The bank has experienced strong growth in the volume of savings agreements, with more customers saving in mutual funds and with increased average saving.
«Many of our customers are affected by the uncertainty that this year has been characterized by so far, with increasing trade conflict and turmoil in the financial markets. We find that our advisory role is important, and that customers appreciate good relationships and knowledgeable advisors, perhaps especially on savings and mutual funds. Being able to talk to the bank when feeling uncertain is reassuring. We will meet customers with knowledge, respect, and dignity», says Aasen.
The bank’s impairment charges in the first quarter were NOK 51 million. One larger write-off was recognized, which was offset by lower individual provisions. The credit quality of the portfolio appears robust, which was also reflected in lower model-based provisions in the first quarter.
Costs in the first quarter of 2025 were NOK 720 million and increased by 10.1 percent from the same quarter last year (pro forma). In the parent bank, costs increased by 6.9 percent. In 2025, the merger with Totens (with the expected technical merger in June 2026), the merger of the real estate brokerage companies into EiendomsMegler 1 Østlandet, an increased focus on Private Banking, the opening of a new office in Drammen, and strengthening the work against financial crime will be examples of offensive and defensive investments that will contribute to increased costs. With this background, the bank plans to communicate a cost target at the beginning of 2026.
Q1 2025 (Consolidated figures. Figures in brackets concern the corresponding period in 2024)
• Profit after tax: NOK 867 (860) million
• Return on equity: 14.1 (17.4) per cent
• Earnings per equity capital certificate: NOK 4.44 (5.03)
• Net interest income: NOK 1,173 (1,004) million
• Net commissions and other operating income: NOK 457 (370) million
• Net income from financial assets and liabilities was NOK 100 (230) million.
• Total operating expenses: NOK 720 (599) million
• Net loan loss provisions were NOK 51 (33) million
• Lending growth in the last quarter, including mortgages transferred to the covered bond companies: 0.6 (0.4) per cent
• Deposit growth in the last quarter: 2.3 (1.6) per cent
• Common Equity Tier 1 capital ratio: 17.1 (17.0) per cent
• The Bank’s green loans (incl. loans transferred to the covered bond companies) amounted to NOK 45 (41) billion at the end of the fourth quarter
Contact information:
Klara-Lise Aasen, Group CEO, Tel.: +47 476 35 583
Geir-Egil Bolstad, CFO, Tel.: +47 918 82 071
Bjørn-Erik Orskaug, Head of Investor Relations, Tel.: +47 922 39 185
This information must be disclosed pursuant to section 5-12 of the Securities Trading Act.
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