Ringkjøbing Landbobank (RILBA) Q1 2025 earnings summary

Executive summary

• Net profit after tax was DKK 616 million, unchanged from Q1 2024, with a return on equity of 22% p.a.

• EPS increased by 5% to DKK 24.5 in the quarter; basis earnings rose 2% to DKK 1,056 million.

• Strong customer growth, with loans up 10% and deposits up 8% year-over-year.

• Credit quality remains robust, with net reversals on loan impairments of DKK 24 million.

• New share buyback program of DKK 1 billion announced; 2025 net profit guidance maintained at DKK 1.8–2.2 billion.

Financial highlights

• Net interest income fell to DKK 638 million from DKK 691 million in Q1 2024 due to margin pressure.

• Fee, commission, and FX income rose 16% to DKK 327 million; sector share income included an extraordinary DKK 34 million gain.

• Operating expenses increased 5% to DKK 259 million, mainly from higher personnel and IT costs.

• Basis result before impairments was DKK 797 million; basis result after impairments was DKK 821 million, up 4% year-over-year.

• Negative trading result of DKK -6 million due to rising long-term mortgage rates.

Outlook and guidance

• 2025 net profit after tax is expected in the range of DKK 1.8–2.2 billion, unchanged from previous guidance.

• Full-year operating expenses are expected to rise by about 4% compared to 2024.