In the second quarter of 2025, Sparebanken Norge reported a pre-tax profit of NOK 2.137 million (NOK 1.412 million). The bank’s reported return on equity was 17.1% (20.1%). On an underlying pro forma basis, the return on equity for the quarter was 15.6%.
“I am very pleased with the bank’s development and the dedication of our employees during a period marked by highly demanding merger processes. I am particularly satisfied that we have gained market share in the first half of the year. There is no doubt that the merger and the Sparebanken Norge name have made us more attractive to customers,” says Jan Erik Kjerpeseth, CEO of Sparebanken Norge.
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Sparebanken Sør and Sparebanken Vest merged with accounting effect from 2 May 2025 to form Sparebanken Norge. This is the first time the merged bank presents its financial results.
Strong lending growth to both retail and corporate customers
Gross lending stood at NOK 463.2 billion (272.9) at the end of the second quarter of 2025. Gross lending to retail customers was NOK 322.0 billion (208.2). Underlying retail lending growth remains strong, supported by increased sales capacity, improved performance, and stronger market growth.
Lending through the Bulder concept totaled NOK 65.4 billion (56.1) at quarter-end, with growth of NOK 9.3 billion (21.6) over the past 12 months and NOK 2.9 billion (3.9) in the quarter. Growth in Bulder was particularly strong at the start of the quarter and again towards the end, following Norges Bank’s reduction of the policy rate.
Gross lending to corporate customers amounted to NOK 141.2 billion (64.7). The bank is seeing strong activity across industries and solid underlying credit demand from corporate clients.
“Underlying lending growth across the Group’s portfolio is strong. Our year-to-date lending growth to both retail and corporate customers is the highest among comparable banks, and we are very pleased with this performance during a period in which we have also merged two large banks,” says Jan Erik Kjerpeseth.
Strong growth in deposits
Customer deposits totaled NOK 220.9 billion (134.2) at the end of the second quarter of 2025, comprising NOK 125.8 billion (78.3) from retail customers and NOK 95.1 billion (55.9) from corporate customers.
Underlying retail deposit growth so far in 2025 is running at a higher level than in previous years.
Within the Bulder concept, deposit volumes increased by NOK 5.9 billion (8.0) over the past 12 months and by NOK 2.4 billion (2.6) in the quarter. An increasing number of customers are using Bulder as their primary bank. Deposit coverage within Bulder alone was 29.7% (24.1) at quarter-end.
Underlying corporate deposit growth is influenced by price competition, particularly on larger deposits. In addition, capital markets financing has become relatively more attractive in recent quarters due to falling credit spreads in the financial markets.
Low cost-to-income ratio despite merger expenses
Operating expenses were NOK 890 million (NOK 459 million) in the second quarter of 2025. Operating expenses as a percentage of net operating income were 27.8% (24.2%). Costs related to the merger with Sparebanken Sør and Oslofjord Sparebank amounted to approximately NOK 56 million in the quarter.
“We are keeping the cost-to-income ratio low despite expenses related to the merger”, says Kjerpeseth.
Continued low risk in the portfolio
At the end of the quarter, retail customers accounted for approximately 70% (76%) of the bank’s credit portfolio. Loans secured by residential property made up 99.6% (99.6%) of this portfolio.
Non-performing and impaired loans to retail customers totalled NOK 761 million (NOK 301 million), equivalent to 0.24% (0.14%) of gross lending to retail customers, underlining the continued low risk in the portfolio.
Non-performing and impaired loans to corporate customers totalled NOK 2,399 million (NOK 1,023 million), equivalent to 1.70% (1.58%) of gross lending to corporate customers. Sound portfolio management, close follow-up, and moderate exposure to cyclical industries help to mitigate credit risk.
For retail and corporate customers combined, non-performing and impaired loans represented 0.68% (0.49%) of total gross lending.
Solid capital position
The bank’s consolidated Common Equity Tier 1 (CET1) capital ratio was 18.4% (17.8%) at the end of the quarter.
The bank’s current CET1 capital requirement is 14.9%, comprising a combined minimum and buffer requirement of 14.0% and a regulatory Pillar 2 requirement of 0.9%. With a CET1 ratio of 18.4%, the bank had a margin of 3.5 percentage points above the requirement at the end of the quarter.
The Board of Directors has set a CET1 capital target of 16.0%, which includes a margin of 1.1 percentage points above all minimum, buffer, and Pillar 2 requirements. At the end of the quarter, the bank had a margin of approximately 2.4 percentage points above this target.
“We are delivering an underlying strong return on equity combined with a solid margin to regulatory capital requirements. Going forward, we plan to deploy surplus capital for both growth and competitive dividends,” says Kjerpeseth.
New financial targets
In connection with the presentation of the second quarter 2025 results, the Board of Directors of Sparebanken Norge has adopted changes to the bank’s financial targets.
The Board has set a target for return on equity after tax of 13%, along with a relative target to be among the top three savings banks. In addition, the Board has set a target for Return on Tangible Equity (ROTE) of 15%, with a relative ambition to be among the top two savings banks on this measure.
Furthermore, the Board has set a Group cost-to-income target, excluding merger costs, of below 30%, and a payout ratio target of approximately 50%. The CET1 capital ratio target is set at 1.1 percentage points above the sum of all minimum and buffer requirements, currently 16.0% based on prevailing requirements.
Significant operational cost and capital synergies have been targeted for Sparebanken Norge. The Board has set these synergy targets at NOK 425 million and NOK 3.4 billion, respectively. In addition to previously communicated targets, the merger with Oslofjord Sparebank is now also included. The bank’s clear ambition is to deliver on its operational objectives while realising synergies according to plan. Cost synergies are expected to be fully realised by the end of 2027, while capital synergies are expected to be fully phased in by 2028.
Integration costs are expected to be incurred through 2027, which will have a dampening effect on the bank’s overall return on equity. The bank’s ambition is to keep integration costs below NOK 380 million, with costs related to Oslofjord Sparebank now also included in this estimate.
“Sparebanken Norge’s new financial targets are ambitious alongside our stated growth strategy, but achievable if we execute well. I am confident we have the right people in place to deliver on our strategy in the years ahead,” says Jan Erik Kjerpeseth
Second quarter 2025
• Return on equity of 17.1% (20.1%) in the quarter
• Net interest income of NOK 2,365 million (NOK 1,536 million) in the quarter
• Net commission income of NOK 437 million (NOK 266 million) in the quarter
• Low cost-to-income ratio of 27.8% (24.2%) despite approximately NOK 53 million in expenses related to the merger between Sparebanken Vest and Sparebanken Sør in the quarter
• Loan and guarantee impairment charges of NOK 180 million (NOK 25 million) in the quarter, of which NOK 114 million is a one-off accounting effect related to the merger
• Common Equity Tier 1 (CET1) capital ratio of 18.4% (17.8%), well above the capital target of 16.0%
Sparebanken Norge to Host Capital Markets Day and present second quarter 2025 results
The joint presentation of the quarterly results and the Capital Markets Day can be followed here: Webcast | Sparebanken Norge
Questions related to the quarterly presentation may be sent to: investorrelations@spv.no
A recording of the presentation will be made available at the same link later on 12 August. An English-subtitled version will be available later in the week.
For further information, please contact:
• Jan Erik Kjerpeseth, CEO, tel.: +47 951 98 430
• Hans Olav Ingdal, CFO, tel.: +47 948 09 328
• Brede Borgen Kristiansen, Director Finance and Investor Relations, tel.: +47 479 06 402
• Hanne Dankertsen, EVP Communications, tel.: +47 994 49 173
Sparebanken Norge is the largest savings bank in Norway, serving more than 800,000 retail and corporate customers, with gross lending of NOK 463 billion, Norway’s best mobile banking app, more than 1,600 full-time equivalents, and 69 branches across the country. Since 1823, we have built a strong position of trust with our customers, giving us a solid market position.
Through our affiliated product companies, we offer a complete range of financial services for all our retail and corporate customers. We take pride in being an independent financial group with headquarters in Bergen and Kristiansand, playing a central role in much of the value creation taking place in Norway.
This information is subject to the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act.
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