KRAFT BANK (KRAB) Q2 2025 earnings summary

Executive summary

• Net profit after tax reached 16.6 MNOK, up from 2.6 MNOK in Q2 2024, with year-to-date profit surpassing all of 2024.

• Return on equity after tax was 14.1%, up from 2.3% year-over-year.

• Interest income from loans grew 27% year-over-year.

• Varde Finans, the wholly owned loan brokerage subsidiary, delivered positive results.

• Focus on helping customers with financial challenges, aiming for improved financial situations post-refinancing.

Financial highlights

• Operating profit before tax was 22.1 MNOK, up from 3.2 MNOK in Q2 2024.

• Net interest income was 44.4 MNOK, compared to 29.8 MNOK a year earlier.

• Book equity per share: 11.22 NOK at quarter end.

• Cost-to-income ratio improved to 48% from 76% year-over-year.

• Earnings per share for the quarter were 0.39 NOK, up from 0.06 NOK in Q2 2024.

Outlook and guidance

• Target for new lending in 2025 is 1,700 MNOK, with expected year-end loan volume of 3.8–3.9 billion NOK.

• Return on equity after tax is expected to reach 14% for 2025, with a year-end run rate above 15%.

• No changes anticipated in capital or buffer requirements for 2025.

• Normal cost development anticipated, aligned with inflation and wage growth.

• Lending rates to increase as interest guarantees expire, supporting higher earnings.