Norway · Delayed Price · Currency is NOK SpareBank 1 Sør-Norge ASA Earnings Call Transcripts
Fiscal Year 2026
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Q3 pre-tax profit was NOK 2.177bn, with 14.2% ROE excluding merger goodwill and a 34.8% cost-to-income ratio. Retail and corporate lending grew faster than their markets; low impairments and ongoing merger synergies supported performance.
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Q2 pre-tax profit was NOK 2.092bn, with 2.6% lending growth, 6.4% deposit growth and 5 bps credit losses. Merger synergies are advancing, while margin pressure and delayed funding benefits remain key considerations.
Fiscal Year 2025
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Delivered strong full-year results with 12.8% ROE (14.1% adjusted), a 38% cost-income ratio, and a CET1 ratio of 17.57%. Dividend increased to NOK 12 per share, with a new buyback program and higher synergy targets. Positioned for further profitable growth.
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Delivered 13% ROE despite merger costs, with strong lending and deposit growth in retail. CET1 ratio at 18.5% supports increased dividend and buyback policy, while operational synergies and cost efficiency drive profitability.
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Q2 saw strong profit, high capital ratios, and robust retail growth, with merger integration on track. Operational synergies and a share buyback program are expected to enhance returns, while margin pressure and regulatory changes remain key watchpoints.
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Adjusted ROE was 13.5%, with strong capital, low impairments and 6.5% annual lending growth. Merger integration remains on plan, with NOK 300 million in operational synergies targeted and a September 2025 systems integration ahead.
Fiscal Year 2024
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Merger with SpareBank 1 Sørøst-Norge drove diversification and strong growth, with full-year ROE at 13.4% and Q4 at 10.9%. Operational synergies target doubled to NOK 300 million, and a 14% long-term ROE target was set, with cost efficiency and profitability prioritized.
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Q3 saw strong lending growth, a 17.5% ROE (13.6% adjusted), and a CET1 ratio of 17.8%, with the merger completed as planned. Loan losses were slightly higher but remain within normalized levels, and operational synergies and further integration are expected to drive future profitability.
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Strong loan growth, improved cost efficiency, and robust credit quality drove a 14.6% ROE and 20.4% H1 profit growth. The upcoming merger will create Norway's largest savings bank, with significant synergies and a strengthened capital position.