English summary
| Key figures Q1 (amounts in million NOK) | 2025 | 2024 |
|---|---|---|
| Profit before tax | 74,6 | 78,4 |
| Profit after tax | 56,3 | 59,7 |
| Net interest | 101,5 | 101,5 |
| Net commission | 27,6 | 24,2 |
| Losses and write-downs | -0,3 | -0,2 |
| Net interest in % of ATA | 2,15 % | 2,32 % |
| Net commission in % of ATA | 0,59 % | 0,55 % |
| Operating costs in % of ATA | 1,17 % | 1,16 % |
| Operating costs in % of income | 42,5 % | 39,3 % |
| Deposits to loan ratio | 80,6 % | 81,5 % |
| Transfer ratio Eika Boligkreditt (EBK) | 43,7 % | 42,7 % |
| Core tier 1 capital adequacy (consolidated, without added profit) | 17,5 % | 18,8 % |
| Return on equity before tax | 11,7 % | 12,6 % |
| Return on equity after tax | 8,7 % | 9,5 % |
Quarterly report Q1 2025
Solid core operations and high lending growth
The accounts at the end of Q1 show a reasonably stable development within the bank's core operations. Net interest income is at the same level as last year, while net commissions are slightly up. Defaults are at a low level - the same applies to losses and write-downs. Operating costs show some increase compared to the same period last year - the increase is mainly related to personnel costs.
The growth rate in loans is high compared to credit growth in our primary market area. Total lending growth over the past 12 months is 10,5 % – including the volume transferred to EBK. Overall customer deposits show stable and positive development – growth over the past year amounts to 8,7 %.
Result, Q1 2025
For Q1, the bank achieved a pre-tax profit of NOK 74,6 million, compared with NOK 78,4 million for the previous year. The reduction in profit is mainly due to slightly higher personnel costs and lower income from securities. Defaults are still at a low level - the same applies to losses and write-downs.
Profit after tax was NOK 56,3 million, compared with NOK 59,7 million for the previous year.
The return on equity after tax was 8,7 % (9,5 %). The bank’s long-term goal in a normal situation is a return on equity after tax of at least 11,0 %.
Net interest
Net interest income at the end of Q1 amounted to NOK 101,5 million (NOK 101,5 million).
As a ratio of average total assets (ATA), net interest income amounted to 2,15 % at the end of Q1 (2,32 %). The money market rate has shown a stable development over time - Norges Bank kept the policy rate stable at 4,50 % throughout last year and Q1 this year.
Net commission
Net commission income as at 31.03.2025 amounted to NOK 27,6 million (NOK 24,2 million). Commission from Eika Boligkreditt (EBK) totalled NOK 10,6 million at the end of Q1, an increase from NOK 7,1 million at the same time last year. The margin on the portfolio in EBK stabilized at a normal level during the 1st quarter of 2024 – following a long period of interest rate increases and notification deadlines to customers. The net volume of the EBK portfolio increased by NOK 801,5 million in the past year – corresponding to a growth of 11,8 %. This growth naturally also contributes to higher commissions.
Net income from financial investments
Net income from financial investments as at 31.03.2025 amounted to NOK 0,1 million (NOK 3,1 million). This decline is mainly due to lower returns from securities compared to the same period last year.
Operating expenses
Total operating expenses as at 31.03.2025 were NOK 55,0 million (NOK 50,7 million). The increase amounts to approximately 8,5 % and relates mainly to salaries and personnel. The ratio of operating expenses to ATA was 1,17 % (1,16 %) at the end of Q1. Expenses as a ratio of income were 42,5 % at the end of Q1 (39,3 %). The bank’s long-term target is a cost ratio below 40,0 %.
Compensation in relation to fraud cases has been recognised in the amount of approximately NOK 0,3 million as at the end of Q1. The reduction from the same period last year amounts to approximately NOK 1,4 million. In other words, the development is positive.
Losses and defaults
Write-downs and losses on loans and guarantees as at 31.03.2025 amounted to a net minus of NOK 0,3 million (minus NOK 0,2 million).
Gross non-performing commitments (over 90 days) amounted to NOK 18,2 million (NOK 42,1 million) at the end of Q1. Gross other defaulted exposures (doubtful) amounted to NOK 87,1 million (NOK 75,1 million).
Non-performing commitments and other defaulted exposures (doubtful) thereby totalled NOK 105,3 million (NOK 117,1 million) at the end of Q1. Measured as a percentage of gross lending, including volumes at EBK, this is a reduction from 0,56 % to 0,45 % in the last 12 months.
Provision levels for non-performing commitments and other defaulted exposures (doubtful) were 4,7 % (11,6 %) and 8,2 % (6,4 %) respectively at the end of Q1.
Total write-downs in stage 3 show a decrease from NOK 9,7 million last year to NOK 8,0 million this year.
The sum of write-downs in stage 1+2 shows a decrease from the same period last year and amounts to a total of NOK 24,4 million at the end of Q1 compared with NOK 27,8 million the previous year.
The bank’s balance sheet
The bank’s assets totaled NOK 19,3 billion at the end of Q1. This represents an increase of 8,6 % over the past 12 months. The bank’s total assets included loans transferred to EBK was NOK 26,9 billion at the end of Q1. This represents an increase of 9,5 % over the past 12 months.
Lending via EBK totaled NOK 7,6 billion at the end of Q1. The development in volume terms during the past 12 months shows solid growth of 11,8 %.
Loans on the balance sheet for the past 12 months show an increase from NOK 14,2 billion to NOK 15,6 billion. This corresponds to growth of 9,9 %. Including the transferred volume in EBK, total lending to customers has increased by 10,5 % over the past 12 months.
Deposits from customers show an increase of 8,7 % for the last 12 months, amounting to NOK 12,6 billion at the end of Q1. We continue to see good stability for deposits.
The deposit to loan ratio was 80,6 % at the end of Q1, down from 81,5 % at the same time last year. The deposit to loan ratio, including EBK, was 54,3 % at the end of Q1, down from 55,2 % at the same time last year. The deposit spread is considered to be good, with relatively few large customer deposits in the portfolio.
Key figures
| RESULTS (amounts in thousand NOK) | Q1 2025 | Q1 2024 | Year 2024 |
|---|---|---|---|
| Net interest income | 101 463 | 101 461 | 413 768 |
| Total other operating income | 27 851 | 27 398 | 128 944 |
| Total operating expenses | 54 975 | 50 655 | 212 527 |
| Operating profit before loan losses | 74 339 | 78 204 | 330 186 |
| Write-downs and losses on loans | -283 | -226 | -6 024 |
| Operating profit before tax | 74 623 | 78 430 | 336 210 |
| Tax cost | 18 350 | 18 747 | 61 148 |
| Profit after tax | 56 273 | 59 683 | 275 062 |
| BALANCE SHEET (amounts in thousand NOK) | Q1 2025 | Q1 2024 | Year 2024 |
|---|---|---|---|
| Total assets | 19 290 | 17 760 | 18 853 |
| Average total assets (ATA) | 19 099 | 17 561 | 18 052 |
| Net loans to customers | 15 600 | 14 194 | 15 294 |
| Net loans to customers incl. EBK | 23 169 | 20 961 | 22 684 |
| Net loans to customers via EBK | 7 569 | 6 767 | 7 391 |
| Deposits from customers | 12 608 | 11 602 | 12 248 |
| Certificates and bonds | 1 818 | 1 725 | 1 795 |
| Shares and fund units | 1 025 | 1 021 | 957 |
| Equity capital | 2 668 | 2 572 | 2 609 |
| KEY RATIOS | Q1 2025 | Q1 2024 | Year 2024 |
|---|---|---|---|
| Development during the quarter/year to date | |||
| - Assets | 2,3 % | 2,1 % | 8,4 % |
| - Loans | 2,0 % | 0,9 % | 8,7 % |
| - Loans incl. EBK | 2,1 % | 1,6 % | 10,0 % |
| - Deposits | 2,9 % | 3,4 % | 9,2 % |
| Deposits to loan ratio | 80,6 % | 81,5 % | 79,9 % |
| Profitability | |||
| Net interest income as % of ATA | 2,15 % | 2,32 % | 2,29 % |
| Cost percentage | 42,5 % | 39,3 % | 39,2 % |
| Costs as % of ATA | 1,17 % | 1,16 % | 1,18 % |
| Return on equity before tax | 11,7 % | 12,6 % | 13,5 % |
| Return on equity after tax | 8,7 % | 9,5 % | 10,9 % |
| Losses and non-performing exposures | |||
| Defaulted exposures (>90 past due) as % of gross lending | 0,1 % | 0,3 % | 0,2 % |
| Other non-performing exposures as % of gross lending | 0,6 % | 0,5 % | 0,5 % |
| Solidity (consolidated) | |||
| Capital adequacy | 21,1 % | 22,8 % | 21,7 % |
| Core capital adequacy | 19,1 % | 20,5 % | 19,6 % |
| Core tier 1 capital adequacy | 17,5 % | 18,8 % | 18,0 % |
| Risk-weighted capital | 12 698 | 11 302 | 12 330 |
| Personnel | |||
| Number of man-labour years | 92 | 90 | 94 |
| Equity capital certificates (ECC) | |||
| Equity capital certificate proportion | 52,0 % | 52,1 % | 52,0 % |
| Market price per ECC | 360 | 282 | 328 |
| Market cap (NOK million) | 1 776 | 1 391 | 1 618 |
| Book equity per ECC | 267 | 257 | 260 |
| Result/fully-diluted result per ECC | 5,6 | 6,0 | 27,7 |
| Dividend per ECC | 20,00 | ||
| Price/profit per ECC | 15,8 | 11,8 | 11,8 |
| Price-to-book ratio | 1,35 | 1,1 | 1,26 |
Income Statement
| (amounts in thousand NOK) | Note | Q1 2025 | Q1 2024 | Year 2024 |
|---|---|---|---|---|
| Total income from interest | 29 825 | 26 969 | 110 318 | |
| Total income from interest on lending to customers amortised cost | 233 725 | 219 796 | 912 720 | |
| Sum rentekostnader | 162 086 | 145 304 | 609 270 | |
| Net interest income | 101 463 | 101 461 | 413 768 | |
| Commission income etc. | 30 332 | 26 507 | 115 966 | |
| Commission expenses etc. | 2 734 | 2 301 | 9 833 | |
| Other operating income | 119 | 116 | 467 | |
| Net commission and other income | 27 717 | 24 322 | 106 601 | |
| Dividend and result from investments according to equity method | -673 | 51 | 18 922 | |
| Net value changes per financial instrument at fair value through profit or loss | 6 | 806 | 3 024 | 3 421 |
| Netto inntekter fra finansielle investeringer | 133 | 3 076 | 22 343 | |
| Payroll and social expenses | 31 122 | 26 715 | 115 643 | |
| Depreciations and write-downs on tangible fixed assets and intangible assets | 2 056 | 3 274 | 12 931 | |
| Other operating expenses | 21 797 | 20 666 | 83 952 | |
| Total operating expenses | 54 975 | 50 655 | 212 527 | |
Operating profit before loan losses | 74 339 | 78 204 | 330 186 | |
| Write-downs and losses on loans and guarantees | 2 | -283 | -226 | -6 024 |
| Operating profit before tax | 74 623 | 78 430 | 336 210 | |
| Tax cost | 18 350 | 18 747 | 61 148 | |
| Profit after tax | 56 273 | 59 683 | 275 062 | |
| Other comprehensive income | ||||
| Actuarial gains and losses on defined benefit pensions | 810 | |||
| Tax on actuarial gains and losses on defined benefit pensions | -202 | |||
| Changes in value for financial assets available for sale | 3 037 | -2 638 | -19 432 | |
| Element of profit that will not be reclassified to the income statement, after tax | 3 037 | -2 638 | -18 825 | |
| Comprehensive income for the period | 59 310 | 57 045 | 256 237 | |
Balance Sheet
| (amounts in thousand NOK) | Note | Q1 2025 | Q1 2024 | Year 2024 |
|---|---|---|---|---|
| Cash and receivables with central banks | 31 794 | 33 075 | 32 870 | |
| Loans and receivables with credit institutions | 682 443 | 658 397 | 651 363 | |
| Loans to customers | 2, 3 | 15 599 951 | 14 193 999 | 15 293 838 |
| Certificates and bonds | 1 818 158 | 1 724 542 | 1 794 519 | |
| Shares and fund units (fair value through profit or loss) | 119 510 | 169 815 | 67 963 | |
| Financial instruments with change in value through OCI | 905 223 | 851 180 | 889 159 | |
| Financial derivatives | 6 291 | 4 397 | 6 192 | |
| Ownership interests in associates | 9 | 2 090 | 5 023 | 4 135 |
| Intangible assets | 3 384 | |||
| Tangible fixed assets | 38 668 | 34 483 | 37 932 | |
| Right-of-use assets | 50 245 | 53 243 | 50 034 | |
| Other assets | 10 490 | 6 086 | 5 894 | |
| Advance payments and earned income | 24 816 | 22 730 | 18 741 | |
| TOTAL ASSETS | 19 289 679 | 17 760 353 | 18 852 641 | |
| Deposits from customers | 3 | 12 607 627 | 11 601 778 | 12 247 546 |
| Liabilities for securities | 7 | 3 639 456 | 3 218 774 | 3 622 565 |
| Other liabilities | 50 212 | 31 312 | 22 734 | |
| Accrued costs and income paid in advance | 26 010 | 23 817 | 22 659 | |
| Financial derivatives | 200 | 8 | ||
| Provisions for liabilities | 44 784 | 56 548 | 74 921 | |
| Liabilities relating to right-of-use assets | 52 690 | 55 073 | 52 321 | |
| Subordinated loan capital | 7 | 200 936 | 200 955 | 201 005 |
| Total liabilities | 16 621 715 | 15 188 457 | 16 243 759 | |
| Equity certificate capital | 10 | 123 313 | 123 313 | 123 313 |
| Holdings of own equity certificates | -350 | |||
| Share premium | 425 285 | 425 285 | 425 285 | |
| Hybrid capital | 7 | 150 000 | 150 000 | 150 000 |
| Other paid-in capital | 7 109 | 5 745 | 7 109 | |
| Equalisation reserve | 482 213 | 443 963 | 482 213 | |
| Dividend | 98 650 | 78 920 | 98 650 | |
| Customers dividend and gift fund | 92 144 | 72 164 | 92 434 | |
| Savings bank fund | 946 619 | 911 418 | 946 619 | |
| Other equity | 286 358 | 301 405 | 283 608 | |
| Unappropriated result | 56 273 | 59 683 | ||
| Total equity | 2 667 964 | 2 571 896 | 2 608 882 | |
| TOTAL EQUITY AND LIABILITIES | 19 289 679 | 17 760 353 | 18 852 641 |