SKUE SPAREBANK (SKUE) Q2 2025 earnings summary

Executive summary

• Strong lending growth in the retail market continued, with increased market share in core areas and significant contribution from Eika Gruppen.

• Pre-tax profit reached NOK 220.0 million for H1 2025, up 41.8% year-over-year; net profit after tax was NOK 174.8 million.

• The merger with Tinn Sparebank is progressing as planned, pending regulatory approval, with completion targeted for November 2025.

• Increased solidity and capital strength following the implementation of CRR3.

• Both organic and strategic growth are evident, supported by solid financial results.

Financial highlights

• Net interest income increased by 32.3% to NOK 270.2 million; net commission income rose 47.7% to NOK 48.3 million.

• Dividend income totaled NOK 41.6 million, mainly from Eika Gruppen.

• Cost/income ratio was 37.0%, slightly higher than 36.1% last year; adjusted ratio improved to 37.0% from 39.3%.

• Net loan losses were NOK 9.5 million YTD, with increased impairments mainly tied to a leisure property project.

• Operating expenses increased by NOK 41.4 million, partly due to merger-related one-off costs.

Outlook and guidance

• The merger with Tinn Sparebank is expected to be completed around November 3, 2025, subject to regulatory approval.

• Continued focus on lending growth in the retail segment and maintaining strong capital ratios.

• Merger expected to enhance local market presence and operational efficiency.

• Norges Bank's rate cut to 4.25% and higher real income expected to support moderate consumption growth.

• Challenging conditions persist for construction and leisure property sectors, but retail lending growth remains robust.