SPAREBANK 1 NORD-NORGE (NONG) Q3 2025 earnings summary

Executive summary

• Pre-tax profit year-to-date was 3,296 MNOK, down from 3,441 MNOK year-over-year, with a return on equity (ROE) of 18.9% compared to 22.9% last year.

• Profit after tax for 3Q25 was NOK 903 million, down from NOK 1,344 million in 3Q24, with a return on equity of 19.3% for the quarter and 18.9% year-to-date, reflecting strong underlying banking operations and low losses.

• CET1 ratio stands at 16.2%, up from 15.7% last year, indicating strong capital adequacy and above regulatory requirements.

• Cost/income ratio increased to 31.5% year-to-date and was 31.1% for 3Q25, reflecting higher costs but continued cost discipline.

• Net losses remain low at 23 MNOK year-to-date, a significant reduction from 86 MNOK last year.

Financial highlights

• Net interest income for 3Q25 was 1,016 MNOK, stable compared to 1,020 MNOK in 3Q24, with year-to-date at 3,026 MNOK.

• Net fee and other operating income reached 364 MNOK in 3Q25, up from 352 MNOK in 3Q24; net commission and other income was 1,080 MNOK year-to-date.

• Result after tax for 3Q25 was 903 MNOK, down from 1,344 MNOK in 3Q24.

• Net income from financial investments was 237 MNOK in 3Q25, down from 689 MNOK in 3Q24.

• Net loan losses were reversed by 4 MNOK in 3Q25, reflecting continued low credit risk.

Outlook and guidance

• Net interest margin is expected to come under pressure due to strong competition and anticipated rate reductions.

• Lending growth expectations for the retail market have been raised to 7–10% for 2025, while corporate market growth is adjusted down to 2–5%.

• Cost control measures are in place, aiming for a cost reduction of 40-50 MNOK by 2027, with main effects expected from 2026.

• Dividend payout ratio is expected to remain above 50%, though a more moderate dividend is likely for the current year.

• The economic outlook for Northern Norway remains positive, with lower unemployment, strong key industries, and significant infrastructure investments expected to drive growth.