Pareto Bank (PARB) Q3 2025 earnings summary

Executive summary

• Profit after tax for Q3-25 was NOK 176.8m, up from NOK 173.2m in Q3-24, with a return on equity of 13.0% compared to 13.6% last year.

• Earnings per share for Q3-25 was NOK 2.13, up from NOK 2.08 in Q3-24.

• Net interest income declined to NOK 287.2m from NOK 313.1m year-over-year, reflecting lower lending volumes and weaker margins.

• Cost/income ratio increased to 19.4% from 18.3% year-over-year.

• Lending at quarter-end was NOK 18,983m, down from NOK 19,419m, with average lending down 7% quarter-over-quarter due to lower credit demand.

Financial highlights

• Total net income for Q3-25 was NOK 305.6m, down from NOK 315.1m in Q3-24.

• Net other operating income rose to NOK 18.4m from NOK 2.1m in Q3-24.

• Operating profit before impairments was NOK 246.4m, compared to NOK 257.4m last year.

• Operating expenses were NOK 59.2m, up from NOK 57.7m.

• Losses and impairments on loans and guarantees were NOK 15.1m, down from NOK 30.9m in Q3-24.

Outlook and guidance

• Lending volume is expected to remain flat or slightly decrease in Q4, with continued uncertainty in the new housing market.

• Policy rate cuts are expected to support activity, but limited effect is anticipated in Q4-25.

• Loan losses and impairments may remain elevated in coming quarters due to ongoing uncertainty in property development.

• Commercial property financing volume is expected to remain flat in Q4-25 amid low transaction activity.

• Corporate and ship financing segments anticipate some exposure growth in Q4-25.