SpareBank 1 Østlandet’s consolidated profit after tax for the third quarter of 2025 was NOK 876 (1,080) million. The return on equity was 13.5 (20.4) percent.
Strong returns were driven by solid contributions from all income lines.
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«We delivered a return on equity of 13.5% for the quarter and 14.1% year-to-date, which is above our long-term return target of 13%. The retail market as a whole experienced yet another quarter of very strong results. In October, we also marked the first full year of operations for our new initiative with an office in Drammen — which has performed significantly better than expected», says Group CEO Klara-Lise Aasen.
Net interest income including commissions from covered bond companies amounted to NOK 1,311 million, an increase of 4.4 percent compared to the same quarter last year (pro forma). In the retail market, the bank’s lending volume increased by 5.2 percent. New mortgage originations over the past 12 months are near the record levels of 2021. Competition for mortgage customers remains intense, but we see that our offering — with competitive terms, fast response times, and skilled advisors — is yielding strong results. In the corporate market, activity remains lower than normal, although the outlook appears somewhat better than in the previous quarter. Many of our corporate clients have exciting projects they wish to realize, but several also remain cautious.
The bank’s impairment charges in the third quarter were NOK 121 million, with increased individual loss provisions. Higher-than-normal loan loss provisions are primarily due to a small number of problematic exposures in the construction sector, where the bank has previously made provisions. The quality of the loan portfolio generally remains solid.
The bank’s commission income is increasing strongly, by 7.0 percent from the same quarter last year, excluding commissions from the covered bond companies and on a pro forma basis. The development is particularly strong on insurance activities, with significantly improved profitability. Activity in the recently merged real estate agency is also high, with good development in all of the company’s regions and increased market shares.
Costs in the third quarter of 2025 were NOK 727 million. Costs in the first three quarters of the year were 11.7 percent higher than in the same period last year (pro forma). Underlying cost growth comes from new customer-oriented initiatives and continuous strengthening of business development, regulatory compliance, and quality initiatives. Although annual cost growth is somewhat lower than in the previous quarter, it remains higher than desired.
“In the coming years, we will improve our operational efficiency. We will continue our efforts in simplification, service redesign, and modernization. This must take place both internally within the group and in collaboration with the SpareBank 1 Alliance. Cost targets for the upcoming strategy period will be communicated at the beginning of 2026”, says Aasen.
Capital adequacy fell as expected from the second to the third quarter, due primarily to the implementation of increased risk weight floors for real estate. Capital adequacy levels are still well above target, supporting the bank’s lending and dividend capacity.
3Q 2025 (Consolidated figures. Figures in brackets concern the corresponding period in 2024)
• Profit after tax: NOK 876 (1,080) million
• Return on equity: 13.5 (20.4) per cent
• Earnings per equity capital certificate: NOK 4.48 (6.24)
• Net interest income: NOK 1,193 (1,021) million
• Net commissions and other operating income: NOK 508 (433) million
• Net income from financial assets and liabilities was NOK 252 (530) million.
• Total operating expenses: NOK 727 (596) million
• Net loan loss provisions were NOK 121 (106) million
• Lending growth in the last quarter, including mortgages transferred to the covered bond companies: 1.1 (1.1) per cent
• Deposit growth in the last quarter: -2.0 (-1.0) per cent
• Common Equity Tier 1 capital ratio: 17.3 (16.9) per cent
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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