SPAREBANK 1 SMN (MING) Q2 2025 earnings summary

Executive summary

• Net profit for Q2 2025 was NOK 1,131 million, up from NOK 1,015 million in Q2 2024, with return on equity at 16.2% versus 15.4% last year.

• Pre-tax profit for Q2 2025 was NOK 1,405 million, and for H1 2025 NOK 2,674 million, both higher than prior year periods.

• Lending grew 1.2% and deposits 0.9% in Q2; 12-month growth in lending was 4.6% and deposits 7.0%.

• Losses on loans and guarantees remained low at NOK 32 million for Q2, representing 0.03% of lending (annualised).

• Earnings per equity certificate for H1 2025 were NOK 9.31, up from NOK 9.14.

Financial highlights

• Operating income reached NOK 2,065 million, a year-over-year increase of NOK 75 million.

• Net interest income in Q2 2025 was NOK 1,335 million, up 1.0% sequentially; total income for Q2 was NOK 2,354 million.

• Total operating expenses rose to NOK 917 million, up NOK 117 million from Q2 2024, mainly due to Tietoevry-related IT costs.

• Group cost-income ratio in Q2 was 44%, up from 41% in Q2 2024; parent bank ratio was 37.8%.

• Return on financial investments in Q2 was NOK 14 million, with NOK 23 million capital gains on shares.

Outlook and guidance

• Outlook indicates continued growth and strong dividend capacity, supported by a robust capital position.

• The group expects moderate cost growth adjusted for the TietoEvry provision; cost-income ratio remains a key focus.

• Macroeconomic uncertainty has increased due to global trade restrictions, but the loan portfolio remains robust.

• The group maintains a long-term CET1 target of 16.3% and aims for a return on equity above 13% over time.

• The board expects 2025 to be a good year despite increased uncertainty.