SpareBank 1 Sør-Norge (SB1NO) Q4 2025 earnings summary

Executive summary

• Achieved strong annual and quarterly results despite market volatility, with robust profitability and capital position.

• Q4 2025 pre-tax profit was NOK 1,993 million, up NOK 253 million year-over-year, driven by strong net interest income and higher financial investment returns.

• Completed significant organizational changes, including leadership restructuring and major technical and legal mergers.

• Launched new digital initiatives, including generative AI in mobile banking and a new credit platform for corporate advisors.

Financial highlights

• Full-year 2025 pre-tax profit was NOK 8,349 million, up NOK 392 million from 2024, with growth across all income lines.

• Return on equity after tax was 12.8% (14.1% excluding special items) for the year.

• Cost/income ratio at 38.0% for the year; Q4 2025 at 38.4%, improved from 42.9% a year earlier.

• Earnings per share reached NOK 17.0, with a proposed dividend of NOK 12.0 per share (71% payout ratio).

• Net interest income for 2025 was NOK 9,271 million, up NOK 152 million year-over-year.

Outlook and guidance

• Financial ambitions remain high, targeting top-tier performance and continued growth in Southern Norway.

• The bank targets a long-term return on equity above 14% and a cost/income ratio below 35%.

• Dividend policy is to distribute at least 50% of annual profit as cash dividend, supplemented by share buybacks.

• Optimism in the region supports growth opportunities, but uncertainty persists due to geopolitical and trade risks.

• Economic outlook for 2026 is positive, with expectations of increased activity, employment, and profitability in the region, though construction remains weak.