SpareBank 1 Sør-Norge (SB1NO) Q3 2025 earnings summary

Executive summary

• Achieved a return on equity after tax of 13.1% (14.7% excluding special items) as of September 30, 2025, with strong underlying operations and successful merger integration.

• Technical merger completed in September, migrating 335,000 customers to a unified platform, enhancing efficiency and scalability.

• Pre-tax profit for Q3 2025 was NOK 6,356 million, with net interest income of NOK 2,328 million and net commission/other income of NOK 778 million.

• Cost/income ratio at 37.0%, with cost control maintained despite merger-related expenses.

• Synergy effects from the merger are expected to reach NOK 450 million annually from 2027.

Financial highlights

• Net interest income was NOK 2,328 million, and net commission/other income was NOK 778 million in Q3 2025.

• Earnings per share for Q3 2025 was NOK 4.4, with a book value per share of NOK 133.34.

• Dividend per share for 2025 is NOK 8.50.

• Loan loss provisions were 0.12% of gross loans, with NOK 115 million in write-downs.

• Gross loans to customers were NOK 393,747 million, with customer deposits at NOK 223,294 million.

Outlook and guidance

• Strong position in Southern Norway with growth opportunities and robust credit quality.

• Uncertainty remains due to global trade policy and geopolitical tensions.

• Norges Bank has reduced the policy rate, with further cuts expected by 2028.

• The group targets return on equity above 14% and cost/income ratio below 40%.

• The board expects profitable growth and strong capital distribution.