Kvartalsrapport3. kvartal 2025

The accounts at the end of Q3 show a reasonably stable development within the bank's core operations. Net interest income is at the same level as last year. Net commissions are somewhat up, mainly due to strong growth and increased margins in the EBK loan portfolio. Defaults remain at a low level – the same applies to losses and write-downs. Operating costs show some increase compared to the same period last year – primarily related to personnel expenses.

The growth rate in loans remains high compared to credit growth in our primary market area. Total lending growth over the past 12 months is 12,0 % – including the volume transferred to EBK. Overall customer deposits show stable and positive development – growth over the past year amounts to 10,1 %.

The bank aims to continue its annual savings scheme in equity capital certificates in Jæren Sparebank for 2026. The savings scheme is designed so that all permanent employees are given the opportunity to purchase equity capital certificates at a discount of 30 %. The savings scheme is limited to the purchase of equity certificates worth between NOK 12 000 and NOK 60 000. The equity certificates will be allotted during January 2026. The term of the allotted equity certificates will be 12 months.

For Q3, the bank achieved a pre-tax profit of NOK 78,5 million, compared with NOK 83,3 million for the previous year. The reduction in profit is mainly due to somewhat higher operating costs this year compared to last year. Defaults remain at a low level – the same applies to losses and write-downs.

Profit after tax was NOK 60,0 million, compared with NOK 63,0 million for the previous year.

As at 30.09.2025, the bank’s pre-tax profit was NOK 278,5 million, compared with NOK 267,0 million last year. Higher dividends from Eika Gruppen and higher tax reductions from customer dividends paid out, are significant factors explaining the positive development from last year. Operating costs as of the end of the third quarter are somewhat higher compared to the same period last year. We also see a continued reversal in losses and write-downs as of the end of the third quarter.

Profit after tax was NOK 240,8 million, compared with NOK 223,2 million for the previous year.

The return on equity after tax was 12,4 % (12,0 %). The bank’s long-term goal in a normal situation is a return on equity after tax of at least 11,0 %.

Net interest income at the end of Q3 amounted to NOK 308,2 million (NOK 308,2 million).

As a ratio of average total assets (ATA), net interest income amounted to 2,10 % at the end of Q3 (2,31 %). The money market rate has shown a stable development over a long period – Norges Bank kept the policy rate stable at 4,50 % throughout last year and into 2025. Somewhat unexpectedly, the policy rate was reduced by 0,25 percentage points to 4,25 % at the last rate meeting before the summer. The policy rate was further reduced to 4,00 % at the rate meeting in September.

Net commission income as at 30.09.2025 amounted to NOK 86,5 million (NOK 77,6 million). Commission from Eika Boligkreditt (EBK) totaled NOK 35,7 million at the end of Q3, an increase from NOK 25,9 million at the same time last year. The margin on the portfolio in EBK stabilized at a normal level during the 2nd 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 1 055,9 million in the past year – corresponding to a growth of 14,7 %. This growth naturally also contributes to higher commissions.

Net income from financial investments as at 30.09.2025 amounted to NOK 46,2 million (NOK 25,9 million). This increase is mainly due to higher dividends from Eika Gruppen, higher returns from securities compared to the same period last year, as well as gains from the sale of buildings.

Total operating expenses as at 30.09.2025 were NOK 166,0 million (NOK 153,3 million). The increase amounts to approximately 8,3 % and relates mainly to salaries and personnel. The ratio of operating expenses to ATA was 1,13 % (1,15 %) at the end of Q3. Expenses as a ratio of income were 37,6 % at the end of Q3 (37,2 %). The bank’s long-term target is a cost ratio below 40,0 %.

Write-downs and losses on loans and guarantees as at 30.09.2025 amounted to a net minus of NOK 3,2 million (minus NOK 8,2 million).

Gross non-performing commitments (over 90 days) amounted to NOK 21,1 million (NOK 38,0 million) at the end of Q3. Gross other defaulted exposures (doubtful) amounted to NOK 78,5 million (NOK 68,0 million).

Non-performing commitments and other defaulted exposures (doubtful) thereby totaled NOK 99,6 million (NOK 106,0 million) at the end of Q3. Measured as a percentage of gross lending, including volumes at EBK, this is a reduction from 0,48 % to 0,41 % in the last 12 months.

The provision rate for non-performing commitments and other defaulted exposures (doubtful) were 12,5 % (4,8 %) and 6,8 % (6,8 %) respectively at the end of Q3.

Total write-downs in stage 3 show an increase from NOK 6.4 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 21,2 million at the end of Q3 compared with NOK 22,5 million the previous year.

The bank’s assets totaled NOK 20,4 billion at the end of Q3. This represents an increase of 10,8 % over the past 12 months. The bank’s total assets, including loans transferred to EBK, were NOK 28,6 billion at the end of Q3. This represents an increase of 11,9 % over the past 12 months.

Lending via EBK totaled NOK 8,2 billion at the end of Q3. The development in volume during the past 12 months shows solid growth of 14,7 %. So far this year, the growth is 11,3 %.

Loans on the balance sheet for the past 12 months show an increase from NOK 14,7 billion to NOK 16,3 billion. This corresponds to growth of 10,7 %. Including the transferred volume in EBK, total lending to customers has increased by 12,0 % over the past 12 months. So far this year, the growth is 8,0 %.

Deposits from customers show an increase of 10,1 % for the last 12 months, amounting to NOK 13,2 billion at the end of Q3. So far this year, the growth is 7,4 %. We continue to see good stability for deposits.

The deposit to loan ratio was 80,7 % at the end of Q3, slightly down from 81,1 % at the same time last year. The deposit-to-loan ratio, including EBK, was 53,6 % at the end of Q3, down from 54,3 % at the same time last year. The deposit spread is good, with relatively few large customer deposits in the portfolio.