Morrow Bank (MORROW) Q4 2025 earnings summary

Executive summary

• Achieved profit before tax of NOK 369–370 million in 2025, up 31% year-over-year, with NOK 100 million in Q4.

• Loan book reached SEK 17 billion, growing 21% year-over-year, driven by strong demand, organic growth, and acquisitions.

• Completed redomiciliation to Sweden and Nasdaq Stockholm listing, reducing capital requirements and improving capital efficiency.

• Cost/income ratio improved to 25% in Q4 2025, down from 26% in Q4 2024, reflecting increased operational efficiency.

• Earnings per share for 2025 was NOK 1.13.

Financial highlights

• Total income for Q4 2025 was NOK 378 million, up 7–10% year-over-year, driven by organic growth and portfolio acquisitions.

• Net interest margin for performing consumer loans was 10.6% in Q4, stable quarter-over-quarter.

• Loan loss ratio declined to 3.9% in Q4 2025 from 4.6% in Q4 2024, reflecting improved credit quality.

• Cost/income ratio was 24.9–25% in Q4 2025, targeting 23% by end 2026.

• Profit after tax for Q4 was NOK 75.6 million, up from NOK 60.4 million in Q4 2024.

Outlook and guidance

• Year-end 2026 loan book target raised to SEK 19 billion, with long-term ambition of SEK 23 billion by 2028.

• Annual organic loan growth of at least 10% expected for the next three years.

• Return on target equity guided at 17% for 2026 and ~20% by 2028.

• Cost/income ratio target of ~23% for 2026 and ~22% for 2028; loan loss ratio target of ~4%.

• 2028 profit after tax ambition of SEK 400–500 million, with potential for SEK 700–800 million in excess capital.