JÆREN SPAREBANK (JAREN) Q2 2025 earnings summary

Executive summary

• Achieved 11.1% loan growth and 9.8% deposit growth year-over-year as of Q2 2025.

• Maintained stable net interest income and low loan losses, with continued market share gains in key regions.

• Return on equity after tax was 19.6% in Q2 and 14.2% YTD, up from 16.4% and 13.0% last year.

• Cost-to-income ratio improved to 29.5% in Q2 and 35.0% YTD, reflecting operational efficiency.

• Dividend payout ratio for 2024 was 72%, exceeding the minimum target of 60%.

Financial highlights

• Net interest income for Q2 was NOK 103.9 million and for H1 NOK 205.4 million, stable year-over-year.

• Net profit after tax reached NOK 124.5 million in Q2 and NOK 275.1 million YTD.

• Return on equity was 19.6% in Q2 and 14.2% YTD, up from 16.4% and 13.0% last year.

• Cost-to-income ratio improved to 29.5% in Q2 and 35.0% YTD.

• Loan losses remained minimal, with reversals in provisions and a problem loan ratio of 0.45%.

Outlook and guidance

• Expectation of continued stable net interest and commission income in H2 2025.

• Anticipate further reduction in policy rates in H2, which may impact margins.

• Strategic focus on maintaining cost discipline, high capital ratios, and above-market growth in core regions.

• The bank is well-positioned in terms of market, liquidity, and solidity, with a strong foundation for continued development.