SKUE SPAREBANK (SKUE) Q3 2025 earnings summary

Executive summary

• Legal merger between Skue Sparebank and Tinn Sparebank completed on November 3, 2025, with regulatory approval and establishment of five new foundations.

• Strong lending growth in the retail segment and continued market share gains in core areas.

• New dividend strategy introduced, targeting 75-100% payout of annual results as gifts and dividends, replacing the previous minimum 50% payout.

• IFRS accounting standards applied; Q3 2025 pre-tax profit of NOK 299.3 million, down 8.7% year-over-year due to one-off effects from prior mergers.

• Net profit after tax was NOK 233.6 million, with a return on equity (excl. hybrid capital) of 9.95%.

Financial highlights

• Net interest income for the period was NOK 404.6 million, up 22.5% year-over-year, but down 1.3% from the previous quarter.

• Net commission income increased by 40.2% year-over-year to NOK 75.5 million.

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

• Profit before tax was NOK 299.3 million, a decrease of 8.7% compared to the same period last year.

• Operating expenses were NOK 204.7 million, up NOK 141.4 million year-over-year, affected by prior year negative goodwill from merger.

Outlook and guidance

• Strengthened capital position post-merger enables further lending growth in the bank's market area.

• The new dividend policy aims to optimize capital and maintain ownership structure.

• Norges Bank reduced policy rate to 4.00% in September; gradual rate reduction expected through 2028.

• Focus on optimizing organization post-mergers and targeting increased market share in the corporate segment.

• Challenging period expected for some customers in construction and leisure property sectors.