SpareBank 1 Sør-Norge (SB1NO) Q2 2025 earnings summary

Executive summary

• Achieved strong operational results in Q2 2025, with robust lending and deposit growth, and high activity across segments.

• Integration of SpareBank 1 Sør - Norge is progressing as planned, with technical merger set for September 2025.

• Return on equity after tax reached 13.3% for H1 2025 and 12.9% for Q2 2025, or up to 14.9%/14.4% excluding one-off effects.

• Earnings per share for Q2 2025 was NOK 5.0 (NOK 4.23 reported in some statements).

• Merger synergies on track, NOK 60 million annualized by Q2 2025, targeting NOK 300 million annually by 2027.

Financial highlights

• Pre-tax profit for H1 2025 was NOK 4,236 million; Q2 2025 profit after tax was NOK 1,668 million.

• Net interest income for Q2 2025 was NOK 2,310 million, up NOK 48 million year-over-year.

• Net commission and other income rose to NOK 858 million in Q2 2025, up 10% from Q2 2024.

• Operating expenses were NOK 1,414 million, up NOK 221 million year-over-year, including NOK 68 million in merger costs and NOK 74 million for a legal case.

• Impairments on loans and financial commitments at NOK 76 million in Q2 2025, 0.08% of gross lending.

Outlook and guidance

• Maintains long-term targets: ROE >14%, CET 1 capital ratio >17.55%, cost/income <40%, and dividend share ~50%.

• Expects stable earnings and profitable growth, with strong position in Southern Norway and reduced uncertainty from trade agreements.

• CET1 capital ratio target is a minimum of 17.55%, expected to reduce to 17.08% following regulatory changes.

• Dividend policy aims to distribute around 50% of annual profit, with a share buy-back program planned.