JÆREN SPAREBANK (JAREN) Q4 2025 earnings summary

Executive summary

• Achieved annual net profit of MNOK 307.2, up from MNOK 275.1 year-over-year, with Q4 profit at MNOK 66.4 compared to MNOK 51.9 in Q4 last year.

• Solid core operations and high lending growth, with positive results driven by dividends and securities performance.

• Strong growth in both lending and deposits, with 10.9% loan growth and 10.4% deposit growth over the last 12 months.

• Maintained a stable and solid capital position, with a consolidated CET1 ratio of 18.1% at year-end.

• Continued market leadership in the Jæren region, especially in residential mortgages and agricultural lending.

Financial highlights

• Net interest income for the year was MNOK 409.1, with a margin of 2.06% (down from 2.29% last year).

• Net commission income reached MNOK 115.5, with a margin of 0.58%.

• Cost/income ratio improved to 39.0% for the year (from 39.2%).

• Return on equity after tax was 11.7% for the year, up from 10.9%.

• Loan losses and impairments were reversed, contributing positively to results.

Outlook and guidance

• Strategic targets for 2026–2028 include minimum 11% return on equity, maximum 40% cost/income ratio, minimum 16% CET1, and minimum 7% loan growth.

• Expectation of stable interest rate environment and continued solid performance in core markets.

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

• Ongoing global uncertainty, high domestic prices, weak currency, and elevated interest rates present challenges, but interest rates are trending downward.