KRAFT BANK (KRAB) Q3 2025 earnings summary

Executive summary

• Focuses on refinancing for customers with financial challenges, aiming to improve their financial situation and help them return to mainstream banking.

• Unique in Norway for exclusively serving this segment, emphasizing social responsibility and preventing forced home sales.

• Since 2018, 2,411 customers have been rehabilitated, with 167 in the last quarter.

• Net profit after tax reached NOK 16.1 million, up from NOK 10.2 million in Q3 2024, marking a 65% increase year-to-date over the full year 2024.

• Return on equity after tax was 13.5%, compared to 9.2% in the same quarter last year.

Financial highlights

• Net profit after tax reached 16.1 MNOK, up from 10.2 MNOK in the same period 2024.

• Net interest income rose to NOK 50.7 million from NOK 35.4 million year-over-year.

• Book equity per share at quarter-end was NOK 11.60.

• Cost-to-income ratio improved to 45% from 57% in Q3 2024.

• Earnings per share for the quarter were NOK 0.38, up from NOK 0.24 in Q3 2024.

Outlook and guidance

• Expects loan portfolio at year-end 2025 to be in the NOK 3.7–3.8 billion range.

• Expectation for new loan sales in 2025 is NOK 1,800 million, above the initial target.

• Maintains target of 15% return on equity, expected to be reached during 2025.

• Anticipates normal cost development in line with inflation and wage growth.

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