Rogaland Sparebank (ROGS) Q3 2025 earnings summary

Executive summary

• Achieved return on equity of 13% for the quarter and 12.5% for the first nine months of 2025, with after-tax profit of NOK 390.6 million, supported by strong retail lending and cost efficiency.

• Increased operational synergy target to NOK 450 million after successful technical merger and integration, with merger costs of NOK 400 million fully recognized.

• Maintained high customer satisfaction and loyalty, with a strong local presence and focus on sustainability, including doubling green retail lending.

• Enhanced dividend policy to at least 50% in cash, established a share buyback program, and paid NOK 9.50 per equity certificate.

• The group includes the parent bank and wholly owned subsidiaries, fully consolidated under IFRS.

Financial highlights

• Pre-tax profit reached NOK 2,120 million, with net interest income stable and up 12% YoY to NOK 590 million for 9M25.

• Cost-to-income ratio improved to 37% for the quarter and 38–39.4% for 9M25, reflecting strong cost control.

• Loan losses and impairments remained low at NOK 22.4 million for 9M25, with non-performing loans at 1.09% of net loans.

• Financial investments increased by NOK 70 million quarter-over-quarter, driven by higher fair value in bond and derivative portfolios.

• EPS increased to 10.3 kroner for 9M25.

Outlook and guidance

• Well positioned for profitable organic lending growth, with a focus on capital discipline and efficiency improvements.

• Financial targets for 2025–2028: ROE above 11%, gross lending growth above 5%, CET1 above 16.15%, and dividend payout 50–100%.

• Expectation to reach full synergy run rate by 2025–2026, with 14% ROE ambition for 2027.

• Anticipate reduction in Pillar 2 capital requirements by year-end, further strengthening capital position.

• The board highlights uncertainty in all future estimates, despite a solid base for continued profitable growth.