SPAREBANK 1 NORD-NORGE (NONG) Q4 2025 earnings summary

Executive summary

• Pre-tax profit for 2025 was 4,279 MNOK, down from 4,512 MNOK in 2024, with profit after tax at 3,457 MNOK, and ROE at 18.1% versus 21.8% last year.

• Lending growth accelerated, especially in retail, with annualized growth of 11.2% in Q4 and 9.8% year-over-year.

• Deposit growth was strong, with total deposits up 7.7% year-over-year.

• CET1 ratio at year-end was 16.2%, above regulatory and internal targets, reflecting a strong capital base.

• Outlook for 2026 is positive, with expectations of continued lending growth and stable profitability.

Financial highlights

• Net interest income for 2025 was 4,030 MNOK, stable year-over-year.

• Total income for 2025 was 6,460 MNOK, with total costs at 2,100 MNOK and a cost/income ratio of 32.5%.

• Net fee and other operating income declined 5.3% to 1,459 MNOK due to a one-off gain in 2024.

• Net income from financial investments was 971 MNOK, down from 1,056 MNOK.

• Loan losses remained low at 81 MNOK for the year.

Outlook and guidance

• Net interest income expected to remain under pressure in 2026 due to strong competition and limited rate cuts.

• Lending growth ambitions for 2026: 6–9% in retail, 2–5% in corporate markets.

• ROE target remains above 14%, with expectations to achieve this in 2026.

• Cost/income ratio target adjusted to below 35% from 2026 onward.

• Dividend payout ratio for 2025 is proposed at 55.6% of group profit.