SOGN SPAREBANK (SOGN) Q1 2025 earnings summary

Executive summary

• Achieved strong financial performance in Q1 2025, with increased income and continued positive result development year-over-year.

• Result before losses reached NOK 32.0 million, up NOK 3.1 million from Q1 2024.

• Return on equity after tax was 8.57% as of March 31, 2025.

• Total comprehensive income was NOK 28.8 million, up from NOK 18.3 million in Q1 2024.

• Main income source remains net interest income, with stable growth despite strong competition.

Financial highlights

• Net interest income: NOK 47.1 million (2.33% of avg. assets), up from NOK 45.6 million (2.37%) in Q1 2024.

• Net commission and other operating income: NOK 6.5 million (0.32% of avg. assets), up from NOK 5.2 million (0.27%).

• Net return on financial investments: NOK 6.9 million, up from NOK 3.9 million.

• Operating expenses: NOK 28.5 million (1.41% of avg. assets), up from NOK 25.8 million (1.34%).

• Net loan loss reversals: NOK 1.19 million, compared to NOK 3.6 million in losses last year.

• Net profit after tax: NOK 25.2 million (1.25% of avg. assets), up from NOK 19.0 million (0.99%).

Outlook and guidance

• Bank expects to continue as a strong local partner, focusing on risk management, capital strength, and liquidity.

• Interest rate market has been stable, but Norges Bank signals possible rate cuts by end of 2025.

• Global economic uncertainty and geopolitical tensions may impact the interest rate path in Norway.

• No events after the reporting period requiring adjustments or additional disclosures.