Sparebank 68 Grader Nord (SB68) Q1 2025 earnings summary

Executive summary

• Net profit after tax for Q1 2025 was NOK 26.8 million, down from NOK 31.9 million in Q1 2024.

• Return on equity (annualized) was 6.9%, compared to 8.7% a year earlier.

• Total assets increased to NOK 12.4 billion, up from NOK 11.7 billion year-over-year.

• Loan growth (including brokered loans) was 5.5% over 12 months.

Financial highlights

• Operating profit before tax was NOK 35.8 million, down from NOK 43.6 million in Q1 2024.

• Net interest income was NOK 73.2 million (2.42% of avg. assets), nearly flat year-over-year.

• Other operating income fell to NOK 9.4 million from NOK 11.5 million, mainly due to lower gains on securities.

• Operating expenses rose to NOK 43.4 million from NOK 38.7 million, mainly due to changes in profit-sharing accruals.

• Cost/income ratio increased to 52.5% from 45.5% in Q1 2024.

• Net loan losses were NOK 3.5 million, up from NOK 2.7 million a year ago.

Outlook and guidance

• Management expects improved return on equity and a lower cost/income ratio going forward, supported by strong core operations and lower future loan losses.

• The bank is well positioned to handle future challenges, with robust liquidity and capital buffers.

• Interest rates in Norway are expected to be cut one to two times during the year as inflation trends lower.

• Customers have adapted to higher interest rates, with positive trends in delinquencies and requests for payment holidays.