NIDAROS SPAREBANK (NISB) Q3 2025 earnings summary

Executive summary

• Ordinary profit after tax for Q3 2025 was NOK 28.6 million, up from NOK 25.8 million year-over-year, with annualized return on equity at 7.44% versus 6.54% last year.

• Gross lending growth including mortgage credit was 12.9% year-over-year, and business capital reached NOK 6.7 billion, up from NOK 6.3 billion.

• The bank is part of the LOKALBANK alliance, which expanded to 16 banks after a merger effective January 2025.

Financial highlights

• Net interest income for Q3 2025 was NOK 83.8 million, stable year-over-year, with a net interest margin of 2.30% (down from 2.45%).

• Net commission and other operating income increased to NOK 20.6 million from NOK 18.1 million, driven by higher mortgage credit commissions.

• Operating expenses rose to NOK 66.5 million (from NOK 64 million), with a cost/income ratio of 63.7%.

• Customer deposits increased by NOK 133 million (4%) to NOK 3,238 million over the last 12 months.

• Total assets under management at Q3 2025 were NOK 5,031 million, up 0.5% year-over-year.

Outlook and guidance

• Lending growth in both personal and business markets is expected to drive future earnings, though the effect is cumulative and gradual.

• The bank expects increased costs in the short term due to the acquisition of Personellservice Trøndelag, but anticipates significant growth and higher earnings from this transaction.

• Lower interest rates from August 2025 are expected to reduce net interest income by about NOK 100,000 per month.