SPAREBANKEN ØST (SPOG) Q3 2025 earnings summary

Executive summary

• Delivered satisfactory ordinary banking results in Q3 2025, with high capital adequacy and low risk in lending portfolios, ranking among Norway's most solid larger banks.

• Return on equity (ROE) annualized at 13.4% for Q3 2025, with profit after tax of 120 million NOK.

• Net interest income for Q3 2025 reached 240 million NOK, representing 2.07% of average total assets.

• Stable deposit and lending volumes, with low losses and delinquencies.

• No significant events or one-off effects in the quarter.

Financial highlights

• Net interest income for Q3 2025: 240 million NOK, up from 239 million NOK in Q2 2025, and 220.6 million NOK in another report.

• Operating expenses were 97 million NOK, representing 36.2% of income.

• Loan losses were 2.8 million NOK (0.06% of net loans) in one report and 6.7 million NOK (0.07% of net loans) in another.

• Return on equity (Q3 2025): 13.4% in one report, 8.90% in another.

• Net commission and other operating income remained stable, with minor fluctuations in financial income.

Outlook and guidance

• Loan growth is expected to align with national credit growth over time.

• High competition in the mortgage market is expected to pressure lending margins.

• Deposit margins are expected to decline further with lower interest rates and increased competition.

• Cost control remains good, but rising wages and IT costs are anticipated.

• Interest rate cuts by Norges Bank in June and September 2025 are expected to impact net interest income in Q4 and beyond.