KRAFT BANK (KRAB) Q1 2025 earnings summary

Executive summary

• Net profit after tax reached 12.7 MNOK, up from 4.2 MNOK in Q1 2024, reflecting strong earnings growth and profitability.

• Return on equity after tax was 11.1%, compared to 3.8% in Q1 2024.

• Net interest income grew 29% year-over-year.

• 2,093 customers have been "cured" since 2018, with 162 in the last quarter; 82% success rate since inception.

• Varde Finans, the wholly owned loan brokerage subsidiary, continued positive operations.

Financial highlights

• Total assets at quarter-end were 4,610 MNOK, up from 4,049 MNOK a year earlier.

• Net lending to customers was 3,625 MNOK, up from 3,328 MNOK year-over-year.

• Net interest income was 40.1 MNOK, up from 30.5 MNOK in Q1 2024.

• Cost/income ratio improved to 54.9% from 70.5% in Q1 2024.

• No realized loan losses in the quarter; total loss provisions increased to 48.6 MNOK.

Outlook and guidance

• Loan portfolio expected to reach 3.9–4.2 billion NOK by end of 2025.

• Targeting 13–15% return on equity by end of 2025.

• Normal cost development expected, with planned system upgrades in 2025.

• Capital and buffer requirements expected to remain unchanged in 2025.

• Ongoing customer inflow anticipated due to high household debt and fewer competitors.