Skjern Bank (SKJE) Q1 2025 earnings summary

Executive summary

• Result before tax for Q1 2025 was DKK 85.7 million, down 16.6% year-over-year, but up DKK 5.3 million sequentially from Q4 2024, in line with expectations amid lower interest rates.

• Net profit after tax was DKK 57.9 million, a decrease of DKK 18.2 million compared to Q1 2024, attributed to lower interest income and higher costs.

• Lending grew by 4.0% to DKK 6,994 million, and total guarantees increased to DKK 1,884 million.

• Customer activity and business volume continued to rise, supporting stable net interest and fee income.

Financial highlights

• Net interest income fell by 6.9% year-over-year to DKK 100.2 million.

• Net fee and commission income increased by 10.9% to DKK 61.5 million.

• Operating expenses rose 13.1% to DKK 80.6 million, mainly due to staff expansion and IT investments.

• Loan impairment charges increased to DKK 4.8 million from DKK 3.1 million in Q1 2024.

• Basis result was DKK 82.8 million, down 11.6% year-over-year.

Outlook and guidance

• Full-year 2025 guidance maintained: basis result expected in the DKK 290–310 million range, and pre-tax profit in the DKK 280–310 million range.

• Management expects continued pressure on interest margins and further declines in lending and deposit rates in coming quarters.