SPAREBANK 1 ØSTFOLD AKERSHUS (SOAG) Q1 2025 earnings summary

Executive summary

• Lending grew 1.5% in retail and 3.3% in corporate segments in Q1 2025.

• Net interest margin and profit declined due to increased competition and higher costs.

• Net profit after tax was NOK 114 million, down from NOK 146 million in Q1 2024.

• ROE was 9.4%, below the new 11% target; about 50% of profit to be distributed as dividends and gifts.

• New Pillar 2 capital requirement set at 1.9%.

Financial highlights

• Pre-tax profit for Q1 2025 was NOK 145 million, down from NOK 180 million in Q1 2024.

• Net interest income was NOK 205 million, margin 1.87% (down from 1.94%).

• Net commission and other income rose to NOK 96 million, mainly from insurance, real estate, and accounting services.

• Operating expenses increased by NOK 41 million, up 8.6% year-over-year.

• Loan losses were NOK 13 million, mainly from a few exposures.

Outlook and guidance

• Expects to deliver on the 11% ROE target for the year.

• Strong competition anticipated, but aims to continue gaining market share.

• Capital gain of NOK 48 million from SamSpar/joint venture divestment expected in Q2 2025.

• Welcomes CRR3 regulatory changes, expected to improve capital requirements.

• Ongoing preparations for CSRD sustainability reporting, with likely postponement.