SKUE SPAREBANK (SKUE) Q1 2026 earnings summary

Executive summary

• Result before tax reached NOK 92.3 million, up 0.5% year-over-year, with total comprehensive income at NOK 72.8 million, down 8.5%, and after-tax profit at NOK 66.4 million.

• Technical merger with Tinn Sparebank completed in March 2026; integration effects and synergy extraction progressing as planned.

• Focus remains on extracting synergies from recent mergers and capital optimization.

Financial highlights

• Net interest income rose 14.9% year-over-year to NOK 153.8 million; net interest margin was 2.25%, down from 2.33%.

• Net commission income increased 26.8% to NOK 30.0 million.

• Operating expenses rose to NOK 82.2 million, up NOK 16.1 million year-over-year, impacted by merger-related costs.

• Net loan losses were NOK 10.2 million, with model-based loss provisions increased by NOK 4.4 million.

• Total assets at quarter-end were NOK 27,710 million, up 17.7% year-over-year.

Outlook and guidance

• All merger-related costs will be recognized by Q2; estimated at NOK 15.5 million, NOK 4.5 million below previous estimate.

• Continued focus on capital optimization and increased dividend payouts, targeting a payout ratio of 75-100%.

• Organic loan growth continues, with positive merger effects expected from economies of scale and natural staff attrition.

• Focus on increasing non-interest income, especially from insurance sales.

• Norges Bank kept policy rate at 4.00%; forecast suggests 1-2 hikes in 2026, with inflation expected to fall to 2% by 2029.