SpareBank 1 Østlandet’s consolidated profit after tax for the second quarter of 2025 was NOK 917 (716) million. The return on equity was 14.9 (14.2) percent.
Strong returns were driven by solid contributions from all income lines and very low loan losses.
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«In the first half of the year, we achieved a return on equity well above the target of 13 percent. In the retail market, we are once again delivering one of our best quarters. We have strong underlying growth in loans and deposits, as well as increased non-interest income, particularly in insurance and real estate», says Group CEO Klara-Lise Aasen.
Net interest income including commissions from the covered bond companies was NOK 1,283 million, an increase of 3.2 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 that were initiated in the first half of the year quarter was about 80 per cent higher than in the same period last year. In the corporate market, activity is lower and the bank’s loan portfolio has remained stable. However, interest rate cuts from Norges Bank could help increase activity among our customers. With very high customer satisfaction among our corporate clients, the bank is well positioned for growth when the market turns.
The bank’s commission income continues to increase, by 7.3 percent from the second quarter last year, excluding commissions from the covered bond companies and on a pro forma basis. Commission income from insurance has shown particularly strong development, but commissions from the recently merged real estate agency have also increased significantly over the past year, with high sales of both used homes and housing projects.
The bank’s impairment charges in the second quarter were NOK 1 million, which is very low. There has been targeted and effective work over time to deal with a small number of problem loans. The quality of the loan portfolio generally remains solid.
Costs in the second quarter of 2025 were NOK 786 million, representing an increase so far this year of 11.8 percent compared to the same period last year (pro forma). Some of the increase was due to one-off effects, including provisions related to the court ruling between SpareBank 1 Utvikling DA and Tietoevry Norway AS, as well as an exit agreement with Eika Gruppen, but cost growth also comes from new initiatives and continuous strengthening of business development, regulatory compliance, and quality initiatives.
“We are continuously working to improve SpareBank 1 Østlandet. During the spring, we have worked on a strategy for the group. The overarching vision and mission for our financial house have been merged into ‘Together we develop Eastern Norway’. This is our guiding star going forward. During the autumn, we will develop operational strategic plans and concrete goals, so that it is not just fine words, but also actions”, says Aasen.
Capital adequacy was significantly strengthened through the implementation of CRR3 and the contribution from the period’s results. With the implementation of increased risk weight floors for housing mortgages in the third quarter of 2025, a significant reduction in capital adequacy is expected. However, the total regulatory changes in 2Q and 3Q are estimated to have a small positive net effect, supporting the bank’s lending and dividend capacity.
Q2 2025 (Consolidated figures. Figures in brackets concern the corresponding period in 2024)
• Profit after tax: NOK 917 (716) million
• Return on equity: 14.9 (14.2) per cent
• Earnings per equity capital certificate: NOK 4.71 (4.09)
• Net interest income: NOK 1,159 (1,008) million
• Net commissions and other operating income: NOK 519 (446) million
• Net income from financial assets and liabilities was NOK 248 (142) million.
• Total operating expenses: NOK 785 (636) million
• Net loan loss provisions were NOK 1 (39) million
• Lending growth in the last quarter, including mortgages transferred to the covered bond companies: 1.4 (2.1) per cent
• Deposit growth in the last quarter: 5.4 (6.6) per cent
• Common Equity Tier 1 capital ratio: 18.3 (16.8) per cent
• The Bank’s green loans (incl. loans transferred to the covered bond companies) amounted to NOK 45 (43) 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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