NIDAROS SPAREBANK (NISB) Q1 2025 earnings summary

Executive summary

• Net profit after tax for Q1 2025 was NOK 10.4 million, down from NOK 12.3 million year-over-year.

• Return on equity annualized at 7.42%, compared to 9.36% in Q1 2024.

• Gross lending growth including covered bonds was 5.5% year-over-year.

• Total assets at NOK 4.7 billion, a 0.5% decrease from Q1 2024.

• Cost-to-income ratio increased to 63.6% from 53.6% year-over-year.

Financial highlights

• Net interest income for Q1 2025 was NOK 27.1 million, down from NOK 28.6 million year-over-year; net interest margin at 2.29% (2.54%).

• Other operating income rose to NOK 7.7 million from NOK 6.8 million, driven by higher dividends and gains on financial instruments.

• Operating expenses increased to NOK 22.1 million from NOK 19.9 million, mainly due to higher personnel and other operating costs.

• Customer deposits grew by NOK 42 million (1.37%) over the last 12 months.

• Net loan losses and provisions totaled NOK 14.0 million, up from NOK 13.3 million year-over-year.

Outlook and guidance

• Organizational changes and new strategies have started to yield positive effects, with significant new loans approved for Q2.

• Increased demand for corporate loans, especially in partially sold housing projects, signals likely growth ahead.

• Liquidity portfolio remains low-risk and is closely monitored amid geopolitical uncertainty.

• Continued growth on the current cost base is necessary to significantly improve earnings.