MELHUS SPAREBANK (MELG) Q1 2025 earnings summary

Executive summary

• Result after tax for Q1 2025 was NOK 28.5 million, up from NOK 25.2 million in Q1 2024, driven by higher lending volumes, stable net interest, and increased commission income.

• Return on equity reached 7.9% (Q1 2024: 7.4%), with a long-term target of over 10%.

• Lending growth including EBK was 4.25% year-over-year, and deposit growth was 4.36%.

Financial highlights

• Net interest income for Q1 2025 was NOK 63.8 million, up from NOK 63.1 million in Q1 2024; net interest margin was 2.30% (Q1 2024: 2.28%).

• Other operating income increased to NOK 18.3 million (Q1 2024: NOK 14.6 million), mainly from higher commissions.

• Operating expenses rose to NOK 40.4 million (Q1 2024: NOK 36.8 million), mainly due to increased personnel costs.

• Cost/income ratio was 49.2% (Q1 2024: 47.3%).

• Loan losses and impairments were NOK 3.8 million, down from NOK 7.3 million in Q1 2024.

Outlook and guidance

• The bank maintains a solid foundation for continued profitable growth, with a focus on both private and corporate segments.

• Long-term financial targets include return on equity above 10%, credit growth of 6–8%, and cost/income ratio below 45%.

• The bank expects increased activity and growth in the corporate segment for the remainder of 2025.