SPAREBANK 1 NORD-NORGE (NONG) Q1 2025 earnings summary

Executive summary

• Pre-tax profit reached 1,008 MNOK in 1Q25, up from 916 MNOK in 1Q24, with strong underlying operations and no extraordinary effects.

• Profit after tax was NOK 811 million in 1Q25, up NOK 97 million year-over-year, with ROE at 17.2%.

• Cost/income ratio improved to 31.6% in 1Q25 from 33.2% in 1Q24, reflecting effective cost control.

• CET1 ratio stood at 16.3% as of 31.03.25, well above the regulatory minimum and target.

• Lending growth of 3.8% year-over-year, with retail loans up 6.5% and corporate loans up 2.4%.

Financial highlights

• Net interest income was 1,061 MNOK in 1Q25, up from 1,046 MNOK in 1Q24, but down 1% sequentially.

• Net fee and other operating income totaled 345 MNOK in 1Q25, up from 320 MNOK in 1Q24.

• Net income from financial investments rose to NOK 204 million from NOK 119 million year-over-year.

• Total costs were 492 MNOK in 1Q25, up from 473 MNOK in 1Q24, but down from 596 MNOK in 4Q24.

• Loan loss provisions increased to 57 MNOK in 1Q25 from 36 MNOK in 1Q24, mainly due to higher ECL model provisions.

Outlook and guidance

• Net interest income expected to remain strong through 2025, supported by high deposit margins and stable lending margins.

• Loan growth guidance for 2025: 4–7% in retail and 3–6% in corporate markets.

• ROE is expected to remain above 13% target, with a payout ratio above 50% and solid dividend prospects for 2025.

• CET1 ratio target is at least 15.8%, with current levels providing a buffer for growth and regulatory changes.

• Main uncertainty is the long-term impact of new US policies and potential global recession.