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SpareBank 1 SMN
Quarterly Report • Aug 7, 2025
3751_rns_2025-08-07_60897c53-be17-400f-8404-9745cde151f3.pdf
Quarterly Report
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Second quarter Report 2025
Foto:
Bondhusvatnet i Sunndal, Møre og Romsdal
Contents
| Main figures | 3 |
|---|---|
| Report of the Board of Directors | 5 |
| Income statement | 15 |
| Balance sheet | 17 |
| Cash flow statement | 19 |
| Changes in equity | 21 |
| Notes | 25 |
| Results from quarterly accounts | 61 |
| Key figures from quarterly accounts | 62 |
| Equity capital certificates | 64 |
| Auditor's report | 66 |
Main figures
| First half | 2nd quarter | ||||
|---|---|---|---|---|---|
| From the income statement (NOKm) | 2025 | 2024 | 2025 | 2024 | 2024 |
| Net interest | 2,657 | 2,646 | 1,335 | 1,309 | 5,373 |
| Net commission income and other income | 1,378 | 1,259 | 730 | 681 | 2,392 |
| Net return on financial investments | 468 | 404 | 289 | 153 | 1,357 |
| Total income | 4,502 | 4,309 | 2,354 | 2,143 | 9,123 |
| Total operating expenses | 1,776 | 1,589 | 917 | 800 | 3,300 |
| Results before losses | 2,727 | 2,720 | 1,437 | 1,343 | 5,823 |
| Loss on loans, guarantees etc | 52 | 70 | 32 | 47 | 176 |
| Results before tax | 2,674 | 2,649 | 1,405 | 1,296 | 5,647 |
| Tax charge | 532 | 549 | 270 | 276 | 1,054 |
| Result investment held for sale, after tax | -8 | -2 | -5 | -5 | -2 |
| Net profit | 2,134 | 2,098 | 1,131 | 1,015 | 4,591 |
| Interest Tier 1 Capital | 81 | 70 | 31 | 29 | 146 |
| Net profit excl. Interest Tier 1 Capital | 2,054 | 2,028 | 1,100 | 986 | 4,446 |
| Balance sheet figures (NOKm) | 30/06/2025 | 30/06/2024 | 31/12/2024 | ||
| Gross loans to customers | 182,990 | 173,440 | 180,102 | ||
| Gross loans to customers incl. SB1 Boligkreditt and SB1 Næringskreditt | 252,890 | 241,832 | 249,350 | ||
| Deposits from customer s |
149,446 | 139,661 | 140,897 | ||
| Average total assets | 251,186 | 237,267 | 246,825 | ||
| Total assets | 254,836 | 243,450 | 247,699 |
Key figures
| First half | 2nd quarter | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | 2024 | Solidity | 30/06/2025 | 30/06/2024 | 31/12/2024 | |
| 1) Profitability |
Capital ratio | 23.4 % |
23.1 % |
22.8 % |
|||||
| Return on equity | 15.0 % |
15.6 % |
16.2 % |
15.4 % |
16.6 % |
Tier 1 capital ratio | 20.8 % |
20.4 % |
20.2 % |
| Cost-income ratio (Group) | 44 % | 41 % | 44 % | 40 % | 42 % | Common equity Tier 1 capital ratio | 18.8 % |
18.5 % |
18.3 % |
| Cost-income ratio (Parent bank) | 37 % | 33 % | 38 % | 33 % | 35 % | Tier 1 capital | 25,866 | 24,216 | 24,769 |
| Deposit-to-loan ratio excl. SB1 Boligkreditt and SB1 | 82 % | 81 % | 82 % | Total eligible capital | 29,209 | 27,474 | 28,004 | ||
| Næringskreditt | 81 % 78 % |
Liquidity Coverage Ratio (LCR) | 196 % | 188 % | 183 % | ||||
| Deposit-to-loan ratio incl. SB1 Boligkreditt and SB1 Næringskreditt |
59 % | 58 % | 59 % | 58 % | 57 % | Leverage Ratio | 7.0 % |
7.1 % |
7.0 % |
| Growth in loans (gross) last 12 months (incl. SB1 | MREL | 52.6 % |
58.6 % |
52.8 % |
|||||
| Boligkreditt and SB1 Næringskreditt) | 4.6 % |
3.2 % |
1.2 % |
1.5 % |
5.5 % |
MREL, substituted | 36.0 % |
36.4 % |
35.8 % |
| Growth in deposits last 12 months | 7.0 % |
1.0 % |
0.9 % |
3.9 % |
6.0 % |
NSFR | 127 % | 132 % | 125 % |
| Losses in % of gross loans incl. SB1 Boligkreditt and | Branches and staff | ||||||||
| 1) SB1 Næringskreditt |
Number of branches | 47 | 46 | 47 | |||||
| Impairment losses ratio | 0.04 % | 0.06 % | 0.05 % | 0.08 % | 0.07 % | No. Of full-time positions | 1,704 | 1,637 | 1,660 |
| Stage 3 as a percentage of gross loans | 0.84 % | 0.82 % | 0.84 % | 0.82 % | 0.89 % |
| Key figures (ECC) | 30/06/2025 | 30/06/2024 | 31/12/2024 | 31/12/2023 | 31/12/2022 | 31/12/2021 |
|---|---|---|---|---|---|---|
| ECC ratio | 67 % | 67 % | 67 % | 67 % | 64 % | 64 % |
| Number of certificates issued, millions 1) | 144.18 | 144.17 | 144.21 | 144.20 | 129.29 | 129.39 |
| ECC share price at end of period (NOK) | 193.94 | 151.12 | 171.32 | 141.80 | 127.40 | 149.00 |
| Stock value (NOKm) | 27,962 | 21,787 | 24,706 | 20,448 | 16,471 | 19,279 |
| Booked equity capital per ECC (including dividend) 1) | 130.34 | 117.31 | 128.09 | 120.48 | 109.86 | 103.48 |
| Profit per ECC, majority 1) | 9.31 | 9.14 | 20.10 | 16.88 | 12.82 | 13.31 |
| Dividend per ECC | 12.50 | 12.00 | 6.50 | 7.50 | ||
| Price-Earnings Ratio 1) | 10.33 | 8.26 | 8.32 | 8.40 | 9.94 | 11.19 |
| Price-Book Value Ratio 1) | 1.49 | 1.29 | 1.34 | 1.18 | 1.16 | 1.44 |
1) Defined as alternative performance measures, see attachment to quarterly report
Report of the Board of Directors
Second quarter 2025
(Consolidated figures. Figures in parenthesis refer to the same period of 2024 unless otherwise stated.)
- • Pre-tax profit NOK 1,405m (1,296m)
- • Net profit NOK 1,131m (1,015m)
- • Return on equity 16.2 per cent (15.4 per cent)
- • CET1 ratio 18.8 per cent (18.5 per cent)
- • Growth in lending 1.2 per cent (1.5 per cent) and in deposits 0.9 per cent (3.9 per cent)
- • Lending to the bank's retail customers rose 1.4 per cent in the quarter (1.5 per cent), 0.7 percentage points higher growth than in the first quarter. Lending to the bank's corporate clients rose 0.9 per cent (2.8 per cent growth) which was 1.8 percentage point higher growth than in the first quarter.
- • Deposits from retail customers rose 6.2 per cent (6.0 per cent), 2.8 percentage points higher growth than in the first quarter. Deposits from corporate clients were reduced by 1.1 per cent (5.1 per cent). This is 6.6 percentage points lower growth than in the previous quarter.
- • Net result of ownership interests was NOK 271m (148m)
- • Net result of financial instruments (incl. dividends) was NOK 19m (minus 5m)
- • Losses on loans and guarantees: NOK 32m (47m)
- • Earnings per equity certificate (EC): NOK 4.99 (4.43)
- • Book value per EC: NOK 130.34 (117.31)
First half 2025
(Consolidated figures. Figures in parenthesis refer to the same period of 2024 unless otherwise stated.)
- • Pre-tax profit NOK 2.674 m (2.649m)
- • Net profit NOK 2.134m (2.098m)
- • Return on equity 15.0 per cent (15.6 per cent)
- • CET1 Ratio 18.8 per cent (18.5 per cent)
- • Growth in lending was 4.6 per cent (4.2 per cent) and in deposits 7.0 per cent (minus 0.4 per cent)
- • Lending to the bank's retail customers rose 4.7 per cent in the last 12 months. Lending to the bank's corporate clients rose 4.4 per cent in the same period.
- • Deposits from retail customers rose 10.6 per cent and deposits from corporate clients by 6.0 per cent in the last 12 months.
- • Net result of ownership interests was NOK 462m (342m)
- • Net result of financial instruments (incl. dividends) was NOK 6m (62m)
- • Losses on loans and guarantees: NOK 52m (70m)
- • Earnings per equity certificate (EC): NOK 9.31 (9.14)
5
Events in the quarter
Base rate reduction and volatility related to customs tariffs
Financial markets in the second quarter were affected by volatility triggered by the USA's announcement of new customs tariffs on 2 April. Equity and bond markets both reacted negatively to the proposed tariffs. The final tariffs are not yet known, and the consequences for the global economy are uncertain. The markets have largely settled during the quarter.
Norges Bank, the central bank, lowered its base rate from 4.50 per cent to 4.25 per cent in June 2025. Inflation has neared the central bank's target of 2 per cent, and the need for monetary policy tightening seen in the last few years has diminished. Norges Bank's monetary policy report released in June signals two further base rate reductions over the year.
The 12-month rate of growth in the consumer price index (CPI) was 3.0 per cent at the end of the second quarter 2025. Underlying inflation in the same period in terms of the consumer price index adjusted for changes in indirect taxes and excluding energy products (CPI-ATE) was 3.1 per cent. The wholly unemployed share of the labour force remains at a low level according to Norway's Labour and Welfare Administration (NAV). The wholly unemployed share is 1.8 per cent in Trøndelag and 1.7 per cent in Møre og Romsdal. At national level, the share is 2.0 per cent.
The 12-month rate of growth in credit to households was 4.2 per cent as of June 2025. The corresponding figure for non-financial undertakings was 2.4 per cent. Norges Bank revised its estimate for household debt growth for 2025 upwards from 3.8 per cent in March to 4.1 per cent as of June 2025.
The indicator in Norges Bank's Regional Network survey declined to weakly negative for Mid Norway and revised upwards somewhat for Region North West, which retains a positive regional indicator. In the aftermath of the turbulence sparked by customs tariffs, queries were raised regarding adjustments to and consequences of increased barriers to trade. Few companies in the Regional Network expect the customs barriers to dampen export activity in the short term. This is primarily because exports to the USA are low. Any weakening of the European market will affect companies to a far larger degree. Investment plans for 2025 and 2026 are little changed by the increased uncertainty, according to the Regional Network. The Regional Network's signals as to the effects of trade barriers accord with surveys of the bank's corporate customers.
Adjustment of fixed-price agreement between SpareBank 1 Alliance and TietoEvry
Borgarting Court of Appeal's delivered on 3 June 2025 judgment in the court case involving SpareBank 1 Utvikling DA and TietoEvry Norway AS. The judgment entails an adjustment of about NOK 100m per year to the fixed price paid by the banks making up the SpareBank 1 Alliance. In the second quarter of 2025 SpareBank 1 SMN made provision of NOK 47m for accrued expenses for the period 2023 to and including the second quarter of 2025.
New Capital Requirements Regulation, CRR3
The EU Capital Requirements Regulation, CRR3, was implemented in Norwegian law on 1 April 2025. Parts of the Regulation will be phased in gradually, including a transitional period for calculation of the output floor for risk-weighted assets. The output floor will ensure that risk-weighted assets measured using internal models are not lower than 72.5 per cent as measured by the standardised approach. The output floor will be phased in on a gradual basis, from 50 per cent in 2025 to 72.5 per cent by 2030. The Ministry of Finance's decision to raise the risk weight for residential mortgages from 20 to 25 per cent applies as from 1 July 2025.
The second quarter 2025 was a further strong quarter for SpareBank 1 SMN. The net profit of NOK 1,131m was driven by continued strong net interest income, high commission income and good contributions from ownership interests. Return on equity in the quarter was 16.2 per cent.
Net interest income rose from the preceding quarter, driven in part by additonal interest days and high fee income in the quarter.
SpareBank 1 Regnskapshuset SMN and EiendomsMegler 1 Midt-Norge delivered turnover growth measured against the same quarter of 2024. The second quarter reflects a high activity level in keeping with seasonal variations in the respective segments, with particularly high activity noted in the housing market.
Strong results at Fremtind Forsikring contributed to higher profit contributions from related companies compared with the previous quarter and last year's second quarter. Group expenses in the quarter reflect additional payments related to the TietoEvry case and a high activity level in the housing market bringing increased expenses at EiendomsMegler 1 Midt-Norge.
Losses on loans in the second quarter remain on a low level. The CET1 ratio at quarter-end was 18.8 per cent, which is well above the Group's own target and regulatory requirements.
Net interest income
At the start of the quarter, three-month NIBOR was 4.57 per cent. After the announcement of customs tariffs by the USA, market interest rates rose until Norges Bank's base rate reduction brought a cut in NIBOR to 4.34 per cent at the end of the quarter. Three-month NIBOR averaged 4.57 per cent in the second quarter, an increase of 0.03 percentage points over the previous quarter.
Net interest income totalled NOK 1,335m (1,309m) compared with NOK 1,321m in the first quarter 2025, corresponding to an increase of 1.0 per cent. Net interest income and commissions from the mortgage companies increased by a total of NOK 30m from the first quarter, corresponding to 2.2 per cent. When adjusted for the number of interest days and increased fee income, overall net interest income and commissions from the mortgage companies were approximately unchanged.
In the wake of the central bank's base rate reduction in June, SpareBank 1 SMN has given notice of a reduction of up to 0.25 percentage point in mortgage and deposit rates. The rate changes will become effective on 25 August for existing customers.
Commission income and other operating income
SpareBank 1 SMN's strategy of exploiting the breadth present in the Group and expanding synergy outputs across the respective business lines stands firm. This is achieved inter alia through co-location of services in finance centres. A high proportion of multi-product
customers contributes to a capital-efficient, diversified income flow and high customer satisfaction.
| Commission income (NOKm) | 2Q 2025 | 1Q 2025 | 2Q 2024 |
|---|---|---|---|
| Payment transfers | 80 | 80 | 91 |
| Creditcard | 9 | 13 | 17 |
| Saving products | 17 | 12 | 12 |
| Insurance | 76 | 71 | 65 |
| Guarantee commission | 21 | 17 | 17 |
| Real estate agency | 173 | 125 | 151 |
| Accountancy services | 232 | 225 | 228 |
| Other commissions | 18 | 18 | 19 |
| Commissions ex SB1 Boligkreditt and SB1 Næringskreditt | 625 | 560 | 599 |
| Commissions SB1 Boligkreditt | 101 | 84 | 78 |
| Commissions SB1 Næringskreditt | 4 | 4 | 4 |
| Total commission income | 730 | 648 | 680 |
Commission income excluding the mortgage companies rose NOK 65m from the previous quarter, and by NOK 26m from the second quarter of 2024. Income from estate agency and accounting services alike rose from the same quarter last year, with income from estate agency services in particular benefiting from a good quarter in the housing market. Commission income excluding mortgage companies rose 4.4 per cent measured against the second quarter 2024.
Following the establishment of Kredittbanken, a change was made to the commission model for credit cards and unsecured debt to enable a larger share of the net profit to be retained by Kredittbanken.
In the case of loans sold to SpareBank 1 Boligkreditt and SpareBank 1 Næringskreditt the bank receives a commission corresponding to the loan interest less the funding and operating expenses of those companies.
Return on financial investments
Return on financial investments was NOK 14m (minus NOK 1m) in the quarter. The gain of NOK 23m on shares in the quarter is related to the sale of Eksportfinans shares and unrealised gains in the wider portfolio. Financial instruments, including bonds and CDs, showed a capital loss of NOK 3m (capital loss of 17m) while income from forex transactions came to minus NOK 5m (11m).
| Return on financial investments (NOKm) |
2Q 2025 | 1Q 2025 | 2Q 2024 |
|---|---|---|---|
| Capital gains/losses shares | 23 | 25 | 4 |
| Gain/(loss) on financial instruments | -3 | -39 | -17 |
| Foreign exchange gain/(loss) | -5 | -2 | 11 |
| Net return on financial instruments | 14 | -17 | -1 |
Related companies
SpareBank 1 SMN has a broad and well-diversified income platform. The Group offers its customers a broad product range from various companies. These companies are owned either directly or indirectly through ownership of SpareBank 1 Gruppen. This provides both commission income and a share of the net profit of the respective companies.
The overall profit share from the product companies and other related companies was NOK 271m (148m) in the quarter. In the first quarter the corresponding figure was NOK 191m.
Income from investment in associated companies
| (NOKm) | 2Q 2025 | 1Q 2025 | 2Q 2024 |
|---|---|---|---|
| SpareBank 1 Gruppen (19.5%) | 114 | 59 | 1 |
| SpareBank 1 Boligkreditt (23.6%) | 16 | 24 | 35 |
| SpareBank 1 Næringskreditt (12.7%) | 3 | 3 | 3 |
| BN Bank (35.0%) | 85 | 74 | 73 |
| SpareBank 1 Markets (39.9%) | 18 | 19 | 26 |
| Kredittbanken (15.1%) | 3 | -1 | 1 |
| SpareBank 1 Betaling (20.9%) | -7 | -4 | -2 |
| SpareBank 1 Forvaltning (21.5%) | 13 | 14 | 13 |
| Other companies | 26 | 4 | -3 |
| Income from investment in associated companies | 271 | 191 | 148 |
SpareBank 1 Alliance
The SpareBank 1 Alliance is Norway's second largest financial services grouping. It is a banking and product collaboration designed to ensure the banks in the SpareBank 1 Alliance economies of scale and access to competitive financial services and products. The Alliance collaboration is driven through its ownership of SpareBank 1 Gruppen which owns and manages a number of the product companies, and through its participation in SpareBank 1 Utvikling which develops and delivers shared products and services.
SpareBank 1 Gruppen posted a net profit of NOK 1,034m (145m) in the second quarter, of which SpareBank 1 SMN's share of the controlling interest's net profit was NOK 114m (1m).
The most important companies in SpareBank 1 Gruppen (SpareBank 1 Gruppen's holding in parenthesis):
- • Fremtind Forsikring (51.4 per cent) offers non-life and personal insurance coverage and is headquartered in Oslo. The company posted a profit of NOK 850m (388m) after tax in the second quarter.
- • SpareBank 1 Forsikring (100 per cent) is a pension company headquartered in Oslo. The company mainly offers contribution-based occupational pensions, collective disability insurance and private pension saving. SpareBank 1 Forsikring reported a net profit of NOK 117m (78m) in the quarter.
- • SpareBank 1 Factoring (100 per cent) offers administrative and financial factoring services. The company is headquartered in Ålesund. The company posted a net profit of NOK 20m (23m) in the quarter.
- • Kredinor (69.0 per cent) is Norway's largest debt collection company and a subsidiary of SpareBank 1 Gruppen. Kredinor's profit contribution to SpareBank 1 Gruppen in the quarter was NOK 117m.
SpareBank 1 Boligkreditt is a mortgage company that issues covered bonds secured by residential mortgages with a view to stable financing and low financing costs. SpareBank 1 SMN's profit share was NOK 16m (35m) in the quarter.
SpareBank 1 Næringskreditt is a mortgage company that issues covered bonds secured by commercial mortgages with a view to stable financing and low financing costs. SpareBank 1 SMN's profit share was NOK 3m (3m) in the quarter.
BN Bank offers residential mortgages and loans to commercial property and its main market is south-eastern Norway. SpareBank 1 SMN's share of BN Bank's net profit was NOK 85m (73m) in the quarter.
SpareBank 1 Markets is a leading Norwegian investment firm. The company offers services in the fields of equity and credit analysis, equity and bond trading and services in the corporate finance area. SpareBank 1 SMN's share of SpareBank 1 Markets' profit was NOK 18m (26m) in the second quarter.
Kredittbanken offers unsecured finance to retail customers. SpareBank 1 SMN's profit share in the second quarter was NOK 3m (1m).
SpareBank 1 Betaling is the SpareBank 1 banks' parent company in Vipps AS. SpareBank 1 SMN's profit share was minus NOK 7m (minus NOK 2m) in the second quarter.
SpareBank 1 Forvaltning delivers products and services to a broad range of clients in the field of capital management and securities services. SpareBank 1 SMN's profit share in the second quarter was NOK 13m (13m).
Operating expenses
The Group aims for a cost-income ratio below 40 per cent at the bank and below 85 per cent at the subsidiaries EiendomsMegler 1 Midt-Norge and SpareBank 1 Regnskapshuset SMN. The cost-income ratio is defined as the ratio of operating expenses to net interest income and commission and other income.
The bank's cost-income ratio was 37.8 per cent in the quarter (33.0 per cent). The corresponding figures for EiendomsMegler 1 Midt-Norge and SpareBank 1 Regnskapshuset SMN were 75.8 (71.8) and 77.2 (78.4) per cent respectively.
| Operating expenses (NOKm) | 2Q 2025 | 1Q 2025 | 2Q 2024 |
|---|---|---|---|
| Staff costs | 526 | 532 | 484 |
| IT costs | 161 | 109 | 109 |
| Marketing | 24 | 25 | 25 |
| Ordinary depreciation | 47 | 46 | 44 |
| Operating expenses, real estate | 11 | 16 | 12 |
| Purchased services | 74 | 64 | 66 |
| Other operating expense | 74 | 67 | 61 |
| Total operating expenses | 917 | 859 | 800 |
Overall Group expenses rose NOK 58m from the previous quarter. Compared with the same quarter last year expenses rose NOK 117m, an increase of 14.6 per cent. When adjusted for the increased fixed price to TietoEvry, the Group's expenses rose by 8.7 per cent compared with the same quarter last year.
The bank's expenses rose by NOK 49m compared with the first quarter of 2025. The increase in expenses is mainly due to the Borgarting Court of Appeal's judgment delivered in the case involving SpareBank 1 Utvikling and TietoEvry. SpareBank 1 SMN has in the second quarter made provision of NOK 47m for accrued expenses for the period 2023 to the second quarter 2025.
Compared with the second quarter of 2024, the bank's expenses rose by NOK 92m. In addition to the above-mentioned provision of NOK 47m, the increase in expenses is driven by higher personnel expenses and general price growth.
The subsidiaries' expenses rose NOK 9m from the first quarter. This is mainly down to EiendomsMegler 1 Midt-Norge's performance which brought increased commission earnings in the quarter.
The subsidiaries' expenses rose NOK 25m compared with the same quarter of 2024. The increase was primarily driven by higher staffing costs at EiendomsMegler 1 Midt-Norge and increased expenses at SpareBank 1 Finans Midt-Norge. Expenses reported by SpareBank 1 Regnskapshuset SMN are unchanged from the same quarter last year.
Losses on loans and guarantees
The Group's losses on loans and guarantees totalled NOK 32m (NOK 47m) in the second quarter 2025.
| Losses (NOKm) | 2Q 2025 | 1Q 2025 | 2Q 2024 |
|---|---|---|---|
| Retail market (parent bank) | 2 | -4 | 9 |
| Corporate market (parent bank) | 21 | 15 | 30 |
| SpareBank 1 Finans Midt-Norge | 9 | 9 | 7 |
| Total losses | 32 | 21 | 47 |
Losses in the quarter break down to a net recovery of NOK 3m in Stages 1 and 2, and a loss of NOK 34m in Stage 3. Losses in the period measured 0.05 per cent of total outstanding loans (0.06 per cent).
Overall impairment write-downs on loans and guarantees as of 30 June 2025 amount to NOK 879m (955m), corresponding 0.35 per cent (0.39 per cent) of total outstanding loans.
The bank's loan portfolio is of good credit quality. The portfolio comprises NOK 170,597m (165,821m) in Stages 1 and 2, and NOK 2,136m (1,888m) in Stage 3. Stage 3 accounts for 0.84 per cent of gross outstanding loans.
Results from business lines
Retail Banking, Corporate Banking and subsidiaries of key significance are defined as business lines in the SpareBank 1 SMN Group. SpareBank 1 SMN's strategy of exploiting the breadth present in the Group and expanding interaction across the respective business lines stands firm. Agriculture has been transferred from Retail Banking to Corporate Banking as from the first quarter 2025. Historical figures are restated.
Personal market
The bank's Retail Banking Division achieved a pre-tax profit of NOK 421m (433m) in the second quarter 2025.
The retail banking portfolio consists of wage earners and sole proprietorships.
| 2Q 2025 | 1Q 2025 | 2Q 2024 |
|---|---|---|
| 565 | 521 | 512 |
| 233 | 216 | 232 |
| 798 | 737 | 744 |
| 375 | 336 | 307 |
| 423 | 401 | 437 |
| 2 | -4 | 4 |
| 421 | 405 | 433 |
| 164,978 | 162,739 | 157,537 |
| -68,077 | -68,231 | -66,425 |
| 73,100 | 68,864 | 66,106 |
| 0.96 | 1.01 | 0.94 |
| 1.44 | 1.38 | 1.72 |
Lending growth in the quarter was 1.4 per cent and deposit growth 6.2 per cent. Corresponding figures in the second quarter 2024 were 1.5 and 6.0 per cent respectively.
The Retail Banking Division has given added focus to deposits in its advisory services, as reflected in the 10.6 per cent growth in deposits in the last 12 months. Lending growth in the last 12 months was 4.7 per cent. Norges Bank's base rate reduction and the prospect of further base rate reductions, along with low unemployment in the region, make for a positive outlook for the Division.
The cost trend in the Division is driven by the aforementioned provisions related to Tietoevry, an increase in operational losses, and general cost growth.
The distribution model is enhanced by co-location of services in finance centres, a transition from personal advisers to customer teams and a closer interplay between the physical and digital advisory channels. In a move to enhance the quality of the customer conversation, AI has been taken into use to generate minutes. Investing in the digital advisory services channel has led to a higher share of digital sales among personal customers.
EiendomsMegler 1 Midt-Norge is the market leader in Trøndelag and in Møre og Romsdal. Pre-tax profit was NOK 42m (43m) in the second quarter.
| EiendomsMegler 1 Midt-Norge (92.4%) | 2Q 2025 | 1Q 2025 | 2Q 2024 |
|---|---|---|---|
| Total income | 172 | 126 | 154 |
| Total operating expenses | 131 | 118 | 111 |
| Result before tax (NOKm) | 42 | 8 | 43 |
| Operating margin | 24% | 6% | 28% |
Activity is high at EiendomsMegler 1 Midt-Norge, which sold about the same number of residential properties as in the same quarter last year. Expenses have risen by NOK 20m compared with the last year's second quarter. The change over and above price growth is due essentially to revised accounting of commission-based remuneration at EiendomsMegler 1 Midt-Norge entailing that the second quarter of 2025 includes commission-based remuneration for the month of June, which is a strong month for sales.
2,171 properties were sold in the quarter (2,177) and new assignments totalled 2,366 (2,407). The company's market share thus far in 2025 was 38.0 per cent, compared with 37.5 per cent.
Corporate market
The bank's Corporate Banking Division achieved a pre-tax profit of NOK 542m (491m) in the quarter.
The corporate portfolio comprises businesses and agricultural customers.
| CM, Profit and loss account (NOKm) | 2Q 2025 | 1Q 2025 | 2Q 2024 |
|---|---|---|---|
| Net interest | 655 | 611 | 605 |
| Comission income and other income | 107 | 96 | 91 |
| Total income | 762 | 707 | 696 |
| Total operating expenses | 200 | 187 | 170 |
| Ordinary operating profit | 563 | 520 | 526 |
| Loss on loans, guarantees etc. | 21 | 15 | 35 |
| Result before tax including held for sale | 542 | 505 | 491 |
| Balance | |||
|---|---|---|---|
| Loans and advances to customers | 73,931 | 73,267 | 70,817 |
| Adv.of this sold to SB1 Boligkreditt and SB1 Næringskreditt | -1,823 | -1,945 | -1,967 |
| Deposits to customers | 74,831 | 75,682 | 70,582 |
| Key figures | |||
| Lending margin | 2.34 | 2.43 | 2.51 |
| Deposit margin | 0.45 | 0.44 | 0.44 |
The Corporate Banking Division's loan volume increased by 0.9 per cent in the second quarter (2.8 per cent) while the deposit volume declined by 1.1 per cent (growth of 5.1 per cent).
The credit quality of the loan portfolio is good. The number of bankruptcies in SpareBank 1 SMN's catchment area increased somewhat from the previous quarter but remains at a lower level than prior to 2020. Losses on loans and guarantees have been moderate in recent quarters.
A strengthened resource input in Trondheim and greater coordination with SpareBank 1 Regnskapshuset SMN spurs Corporate Banking's acquisition of market shares in Mid Norway. The establishment of a presence in Oslo has developed as expected, contributing to lending growth in selected segments where SpareBank 1 SMN offers competencies and experience.
SpareBank 1 Regnskapshuset SMN is the market leader in Trøndelag and in Møre og Romsdal. The company posted a pre-tax profit of NOK 57m (54m).
| SpareBank 1 Regnskapshuset SMN (93.3%) | 2Q 2025 | 1Q 2025 | 2Q 2024 |
|---|---|---|---|
| Total income | 250 | 244 | 248 |
| Total operating expenses | 193 | 192 | 194 |
| Result before tax (NOKm) | 57 | 52 | 54 |
| Operating margin | 23% | 21% | 22% |
SpareBank 1 Regnskapshuset SMN has continued its change programme to develop accounting advisers for the future, combined with the implementation of new cloud-based solutions. Substantial investments in the adviser segment are essential to achieving the goal of remaining firms' closest sparring partner.
Alongside the development of accounting advisers, expanded collaboration with business advisers in the bank will be crucial for capturing synergies.
SpareBank 1 Finans Midt-Norge's focal areas are leasing and invoice purchasing services to businesses and car loans to personal customers. SpareBank 1 Finans Midt-Norge recorded a pre-tax profit of NOK 68m (76m).
| SpareBank 1 Finans Midt-Norge (64.8%) | 2Q 2025 | 1Q 2025 | 2Q 2024 |
|---|---|---|---|
| Total income | 111 | 115 | 111 |
| Total operating expenses | 34 | 37 | 27 |
| Loss on loans, guarantees etc. | 9 | 9 | 7 |
| Result before tax (NOKm) | 68 | 69 | 76 |
SpareBank 1 Finans Midt-Norge has a market share of about 10 per cent in vendor's liens in the counties where parent banks are represented. Sales via SpareBank 1 Sørøst-Norge ceased to be part of SpareBank 1 Finans Midt-Norge's offering as from 1 October 2024.
SpareBank 1 SMN Invest owns shares and units in regional growth companies and funds. The portfolio is managed together with other long-term shareholdings of the bank and will be scaled down over time. The company's securities portfolio is worth NOK 616m (577m) as of 30 June 2025.
The company's pre-tax profit in the second quarter 2025 was NOK 26m (minus 13m)
11
The net increase in the customer base in the quarter was 22 (12).
SpareBank 1 SMN posted a net profit of NOK 2,134m (2,098m), and a return on equity of 15.0 per cent (15.6 per cent) in the first half of 2025. Earnings per equity certificate (EC) were NOK 9.31 (9.14).
Net interest income came to NOK 2,657m (2,646m). This is an increase of 0.4 per cent compared with the first half of 2024, which contained an extra interest day. Norges Bank lowered its base rate to 4.25 per cent in June 2025. SpareBank 1 SMN has given notice of a base rate change effective from 25 August for existing customers.
Net commission and other income totalled NOK 1,378m (1,259m). Income from accounting and estate agency services rose by NOK 29m and 32m respectively measured against the first half of 2024. An increased volume sold to SpareBank 1 Boligkreditt, higher margins on appurtenant loans and changes to the commission model have brought an increase of NOK 48m in commissions from the mortgage companies so far this year.
The net result from ownership interests came to NOK 462m (342m) in the first half-year. The increased net profit from related companies is mainly attributable to stronger profit contributions from SpareBank 1 Gruppen. The net result from financial instruments including dividends was NOK 6m in the first half-year (62m).
Group expenses were NOK 1,776m (1,589m) in the first half of 2025. NOK 132m of the expense growth of NOK 187m refers to the bank. Last year's figures reflect a NOK 30m expenses reduction due to agreement reached on an insurance settlement. Moreover, expenses in 2025 have risen by NOK 47m due to provision made for expenses accrued for the period 2023 to the second quarter of 2025 related to TietoEvry.
Losses on loans and guarantees remain at a moderate level, amounting to NOK 52m thus far this year (70m). NOK 2m has been recovered on loans to retail customers so far this year. For the bank's corporate customers and SpareBank 1 Finans Midt-Norge, losses on loans and guarantees come to NOK 36m and 18m respectively thus far this year.
Lending growth recorded in the Group was 4.6 per cent (4.2 per cent) in the last 12 months. Lending to the bank's retail customers rose 4.7 per cent, while lending to the bank's corporate customers rose 4.4 per cent in the same period. Deposits grew 7.0 per cent (minus 0.4 per cent) in the last 12 months. Deposits from retail customers increased by 10.6 per cent while deposits from corporate customers rose 6.0 per cent in the last 12 months.
Balance sheet, funding and liquidity
Total assets
The Group's total assets as of the second quarter of 2025 were NOK 254.8bn (243.5bn), having increased by 4.7 per cent over the last 12 months.
As of 30 June 2025, loans totalling NOK 69.9bn (68.4bn) had been sold from SpareBank 1 SMN to the mortgage companies SpareBank 1 Boligkreditt and SpareBank 1 Næringskreditt. These loans do not figure as loans in the bank's balance sheet. The comments covering lending growth take account of loans sold to SpareBank 1 Boligkreditt and SpareBank 1 Næringskreditt.
Loans
Gross outstanding loans rose in the last 12 months by NOK 11.1bn, or 4.6 per cent, and stood at NOK 252.9bn (241.8bn) at the end of the quarter. Lending growth in the quarter was 1.2 per cent.
Lending to the bank's retail customers climbed NOK 2.2bn in the quarter (2.3bn). This corresponds to a lending growth of 1.4 per cent (1.5 per cent). Lending growth over the last 12 months was 4.7 per cent. Total lending to the bank's retail customers came to NOK 165.0bn (157.5bn) at the end of the second quarter of 2025.
Lending to the bank's corporate segment rose by NOK 0.7bn in the quarter (1.9bn), corresponding to 0.9 per cent (2.8 per cent). Growth in lending in the last 12 months was 4.4 per cent. Overall lending to the bank's corporate customers came to NOK 73.9bn (70.8bn) as of 30 June 2025.
SpareBank 1 Finans Midt-Norge's gross outstanding loan volume was NOK 13.2bn (12.7bn) at the end of the second quarter 2025. Lending growth in the last 12 months was 3.8 per cent.
(For breakdown by sector – see note 5).
Deposits
Customer deposits totalled NOK 149.4bn (139.7bn) as of 30 June 2025. Deposit growth in the quarter was 0.9 per cent.
Personal deposits rose NOK 4.2bn in the quarter (3.7bn), corresponding to deposit growth of 6.2 per cent (6.0 per cent). Deposit growth in the last 12 months was 10.6 per cent. Total deposits from personal customers came to NOK 73.1bn (66.1bn) at the end of the quarter.
Deposits from the bank's corporate segment were reduced by NOK 0.9bn in the quarter (growth of 3.4bn), corresponding to a decline of 1.1 per cent (5.1 per cent growth). Deposit growth over the last 12 months was 6.0 per cent. Total deposits from the bank's corporate segment were NOK 74.8bn (70.6bn) as of 30 June 2025.
Customer deposits also include about NOK 2bn as part of the bank's liquidity management.
(For breakdown by sector – see note 9).
Funding and liquidity
SpareBank 1 SMN has ample liquidity and good access to funding. The bank follows a conservative liquidity strategy, with liquidity reserves that ensure the bank's survival for 12 months of ordinary operation without need of fresh external funding.
The bank is required to maintain sufficient liquidity buffers to withstand periods of limited access to market funding. The liquidity coverage ratio (LCR) measures the size of banks' liquid assets relative to net liquidity outflow 30 days ahead given a stressed situation. The LCR was calculated at 196 per cent (188 per cent) as of 30 June 2025.
The Group's deposit-to-loan ratio including SpareBank 1 Boligkreditt and SpareBank 1 Næringskreditt was 59 per cent (58 per cent) at the end of the quarter.
The bank's funding sources and products are amply diversified. The share of the bank's overall money market funding with a maturity above one year was 78 per cent (83 per cent) at the end of the quarter.
SpareBank 1 Boligkreditt and Næringskreditt are important funding sources for the bank, and loans totalling NOK 70bn (68bn) had been sold to these mortgage companies as of 30 June 2025.
In the second quarter SpareBank 1 SMN issued senior non-preferred debt (SNP) worth NOK 1,150m and held NOK 14.7bn in SNP debt instruments at the end of the quarter. SNP debt measured 36.0 per cent as of 30 June 2025, and SpareBank 1 SMN met the MREL requirement by an ample margin.
Rating
The bank has a rating of Aa3 (stable outlook) with Moody's.
Financial soundness
The CET1 ratio as of 30 June 2025 was 18.8 per cent (18.5 per cent) compared with 18.1 per cent as of 30 June 2025.
The EU Capital Requirements Regulation, CRR3, was implemented in Norwegian law on 1 April 2025. Parts of the Regulation will be phased in on a gradual basis, in part involving a transitional period for calculation of the output floor for risk-weighted assets. The output floor will ensure that risk-weighted assets measured using internal models are not lower than 72.5 per cent, measured using the standardised approach. The output floor will be phased in gradually, from 50 per cent in 2025 to 72.5 per cent by 2030.
The Ministry of Finance's decision to raise the risk weight floor for residential mortgages from 20 to 25 per cent applies as from 1 July 2025. The estimated effect of this decision for SpareBank 1 SMN is estimated to be 1.3 percentage points reduction in CET1 ratio.
SpareBank 1 SMN received its current Pillar 2 requirement in the fourth quarter of 2023. The requirement was reduced to 1.7 percentage point and must be met with a minimum of 56.25 per cent CET1 capital. As a result of this change the Group's long-term CET1 target is
revised to 16.3 per cent, including a Pillar 2 guidance. The bank is subject to a provisional add-on of 0.7 per cent to its Pillar 2 requirement until its application for adjustment of IRB models has been processed. The provisional add-on of 0.7 per cent is not included in the bank's long-term capital target.
A leverage ratio of 7.0 per cent as of 30 June 2025 (7.1 per cent) shows the bank to be very solid. See note 4 for details.
The bank's equity certificate (MING)
The book value per EC as of 30 June 2025 was NOK 130.34 (117.31) and earnings per EC in the quarter were NOK 4.99 (4.43).
The Price / Income ratio was 10.33 (8.26) and the Price / Book ratio was 1.49 (1.29).
At the end of the second quarter 2025 holders of the bank's ECs totalled 19,066. 29.2 per cent of the ECs are held by foreign investors. 25.2 per cent of the ECs are held by investors in Mid Norway.
Sustainability
During the quarter SpareBank 1 SMN published the results of the year's sustainability barometer, showing that profitability and economics are the key driver for green transition among the region's businesses, households, and local authorities. The results are available on the Group's webpages.
SpareBank 1 SMN continues its work to align with the requirements of the Corporate Sustainability Reporting Directive (CSRD). A number of initiatives are under way, including preparation of the Group's climate and nature transition plan.
The overall transition plan is expected to reach completion in the course of 2025. The transition plan for commercial real estate was updated in the second quarter as a step in this process. It contains clearer criteria and expectations regarding energy efficiency and the transition of the Group's commercial real estate portfolio.
Outlook
SpareBank 1 SMN delivered a strong profit performance in the second quarter of 2025 driven by solid underlying operations and good results from owner interests.
The Group's ambition to expand its market shares stands firm. The bank's growth aspirations will be realised in selected geographical locations and industries, supported by synergies across the Group's business lines. This focus is expected to contribute further to the Group's well-diversified income platform and to strengthen profitability in the years ahead.
The cost-income ratio is one of the Group's most important key ratios, and the bank's cost growth, adjusted for the additional payment to TietoEvry, is expected to be moderate in
- Among the subsidiaries the cost trend is to a greater degree driven by activity levels and will vary with market conditions.
The uncertainty regarding macroeconomic developments has grown due to global trade restrictions. This widens the range of possible outcomes for economic growth, inflation and interest rates. SpareBank 1 SMN has a diversified and robust loan portfolio of good credit quality, of which 68 per cent is exposure to households. The bank has ample liquidity and access to funding. There are for the time being few signs of reduced credit quality, as reflected in continued low losses.
The Group's long-term CET1 target is 16.3 per cent. At the end of the second quarter the CET1 ratio was 18.8 per cent. SpareBank 1 SMN is well positioned to deliver on its growth aspirations while at the same time maintaining good dividend capacity.
SpareBank 1 SMN aspires to be among the best performers in the Nordic region, and the Group's overriding financial goal of delivering a return on equity above 13 per cent over time stands firm. The main pillars of the Group's strategy are unchanged, and the focus is on implementation and realisation of desired effects.
The Group is well equipped to strengthen its market position with its efficient distribution of products and services. The Board of Directors expects 2025 to be a good year for the Group despite increased uncertainty.
| Trondheim, 6 August 2025 The Board of Directors in SpareBank 1 SMN |
||
|---|---|---|
| Kjell Bjordal Board Chair |
Christian Stav Deputy chair |
Mette Kamsvåg |
| Freddy Aursø | Nina Olufsen | Ingrid Finboe Svendsen |
| Kristian Sætre | Inge Lindseth Employee rep. |
Christina Straub Employee rep. |
Jan-Frode Janson
Group CEO
Income statement
| Parent bank | Group | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| 2nd quarter First half |
First half 2nd quarter |
||||||||||
| 2024 | 2024 | 2025 | 2024 | 2025 | (NOKm) | Note | 2025 | 2024 | 2025 | 2024 | 2024 |
| 11,122 | 2,742 | 2,821 | 5,435 | 5,568 | Interest income effective interest method | 5,850 | 5,712 | 2,961 | 2,881 | 11,685 | |
| 1,883 | 447 | 535 | 901 | 1,049 | Other interest income | 1,045 | 897 | 533 | 444 | 1,875 | |
| 8,180 | 2,014 | 2,154 | 3,957 | 4,231 | Interest expenses | 4,239 | 3,963 | 2,159 | 2,016 | 8,187 | |
| 4,824 | 1,175 | 1,202 | 2,380 | 2,386 | Net interest | 10 | 2,657 | 2,646 | 1,335 | 1,309 | 5,373 |
| 1,315 | 336 | 375 | 635 | 705 | Commission income | 875 | 794 | 473 | 427 | 1,611 | |
| 135 | 27 | 39 | 59 | 66 | Commission expenses | 110 | 103 | 62 | 51 | 224 | |
| 65 | 17 | 15 | 35 | 31 | Other operating income | 612 | 569 | 319 | 305 | 1,006 | |
| 1,245 | 325 | 351 | 611 | 670 | Commission income and other income | 11 | 1,378 | 1,259 | 730 | 681 | 2,392 |
| 361 | 141 | 472 | 256 | 791 | Dividends | 9 | 9 | 5 | 6 | 33 | |
| - | - | - | - | - | Income from investment in related companies | 3 | 462 | 342 | 271 | 148 | 1,254 |
| 45 | 1 | 6 | 24 | -10 | Net return on financial investments | 13 | -3 | 52 | 14 | -1 | 70 |
| 406 | 142 | 478 | 280 | 781 | Net return on financial investments | 468 | 404 | 289 | 153 | 1,357 | |
| 6,475 | 1,643 | 2,031 | 3,271 | 3,837 | Total income | 4,502 | 4,309 | 2,354 | 2,143 | 9,123 | |
| 1,012 | 233 | 261 | 485 | 539 | Staff costs | 1,058 | 967 | 526 | 484 | 1,981 | |
| 1,084 | 262 | 325 | 506 | 585 | Other operating expenses | 12 | 717 | 622 | 391 | 316 | 1,319 |
| 2,096 | 495 | 587 | 992 | 1,124 | Total operating expenses | 1,776 | 1,589 | 917 | 800 | 3,300 | |
| 4,379 | 1,148 | 1,444 | 2,280 | 2,713 | Result before losses | 2,727 | 2,720 | 1,437 | 1,343 | 5,823 | |
| 156 | 40 | 22 | 61 | 34 | Loss on loans, guarantees etc. | 6, 7 | 52 | 70 | 32 | 47 | 176 |
| 4,223 | 1,108 | 1,422 | 2,219 | 2,679 | Result before tax | 3 | 2,674 | 2,649 | 1,405 | 1,296 | 5,647 |
| 940 | 235 | 229 | 477 | 459 | Tax charge | 532 | 549 | 270 | 276 | 1,054 | |
| - | - | - | - | - | Result investment held for sale, after tax | 2, 3 | -8 | -2 | -5 | -5 | -2 |
| 3,283 | 873 | 1,193 | 1,742 | 2,220 | Net profit | 2,134 | 2,098 | 1,131 | 1,015 | 4,591 | |
| 137 | 26 | 29 | 66 | 77 | Attributable to additional Tier 1 Capital holders | 81 | 70 | 31 | 29 | 146 | |
| 2,101 | 566 | 777 | 1,120 | 1,432 | Attributable to Equity capital certificate holders | 1,342 | 1,318 | 719 | 639 | 2,899 | |
| 1,044 | 281 | 386 | 557 | 712 | Attributable to the saving bank reserve | 667 | 656 | 357 | 317 | 1,441 | |
| - | - | - | - | - | Attributable to non-controlling interests | 45 | 54 | 23 | 30 | 106 | |
| 3,283 | 873 | 1,193 | 1,742 | 2,220 | Net profit | 2,134 | 2,098 | 1,131 | 1,015 | 4,591 | |
| Profit/diluted profit per ECC | 19 | 9.31 | 9.15 | 4.99 | 4.43 | 20.11 |
Other comprehensive income
| Parent bank | Group | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2nd quarter | First half | First half | 2nd quarter | |||||||
| 2024 | 2024 | 2025 | 2024 | 2025 | (NOKm) Note |
2025 | 2024 | 2025 | 2024 | 2024 |
| 3,283 | 873 | 1,193 | 1,742 | 2,220 | Net profit | 2,134 | 2,098 | 1,131 | 1,015 | 4,591 |
| Items that will not be reclassified to profit/loss | ||||||||||
| 70 | - | - | - | - | Actuarial gains and losses pensions | - | - | - | - | 70 |
| -17 | - | - | - | - | Tax | - | - | - | - | -17 |
| - | - | - | - | - | Share of other comprehensive income of associates and joint venture | 5 | 3 | 4 | 2 | 9 |
| 52 | - | - | - | - | Total | 5 | 3 | 4 | 2 | 62 |
| Items that will be reclassified to profit/loss | ||||||||||
| - | - | - | - | - | Fair value change on financial assets through other comprehensive income | - | - | - | - | - |
| -4 | -3 | -1 | -2 | -4 | Value changes on loans measured at fair value | -4 | -3 | -1 | -3 | -4 |
| - | - | - | - | - | Share of other comprehensive income of associates and joint venture | 30 | -62 | -5 | -29 | -148 |
| - | - | - | - | - | Tax | - | - | - | - | - |
| -4 | -3 | -1 | -2 | -4 | Total | 26 | -65 | -5 | -32 | -153 |
| 48 | -3 | -1 | -25 | -4 | Net other comprehensive income | 31 | -62 | -1 | -30 | -91 |
| 3,331 | 871 | 1,192 | 1,717 | 2,216 | Total comprehensive income | 2,165 | 2,036 | 1,129 | 985 | 4,500 |
| 137 | 26 | 29 | 66 | 77 | Attributable to additional Tier 1 Capital holders | 81 | 70 | 31 | 29 | 146 |
| 2,134 | 564 | 777 | 1,118 | 1,429 | Attributable to Equity capital certificate holders | 1,363 | 1,277 | 718 | 619 | 2,909 |
| 1,060 | 280 | 386 | 556 | 710 | Attributable to the saving bank reserve | 677 | 635 | 357 | 308 | 1,339 |
| Attributable to non-controlling interests | 45 | 54 | 23 | 30 | 106 | |||||
| 3,331 | 871 | 1,192 | 1,740 | 2,216 | Total comprehensive Income | 2,165 | 2,036 | 1,129 | 985 | 4,500 |
Balance sheet
| Parent bank | Group | ||||||
|---|---|---|---|---|---|---|---|
| 31/12/2024 | 30/06/2024 | 30/06/2025 | (NOKm) | Note | 30/06/2025 | 30/06/2024 | 31/12/2024 |
| 654 | 1,468 | 2,368 | Cash and receivables from central banks | 2,368 | 1,468 | 654 | |
| 19,785 | 22,905 | 22,587 | Deposits with and loans to credit institutions | 11,470 | 12,444 | 9,166 | |
| 166,312 | 159,950 | 168,884 | Net loans to and receivables from customers | 5 | 182,138 | 172,518 | 179,254 |
| 36,649 | 36,247 | 36,058 | Fixed-income CDs and bonds | 17 | 36,059 | 36,248 | 36,650 |
| 7,231 | 6,056 | 6,093 | Derivatives | 17 | 6,093 | 6,056 | 7,231 |
| 587 | 670 | 531 | Shares, units and other equity interests | 17 | 1,020 | 1,122 | 1,050 |
| 6,789 | 6,548 | 7,507 | Investment in related companies | 10,709 | 9,042 | 10,084 | |
| 2,225 | 2,187 | 2,358 | Investment in group companies | - | - | - | |
| 98 | 98 | 98 | Investment held for sale | 2 | 184 | 196 | 190 |
| 797 | 803 | 782 | Intangible assets | 1,257 | 1,228 | 1,230 | |
| 1,599 | 2,394 | 2,773 | Other assets | 14 | 3,537 | 3,127 | 2,189 |
| 242,726 | 239,327 | 250,038 | Total assets | 254,836 | 243,450 | 247,699 |
| Parent bank | Group | ||||||
|---|---|---|---|---|---|---|---|
| 31/12/2024 | 30/06/2024 | 30/06/2025 | (NOKm) | Note | 30/06/2025 | 30/06/2024 | 31/12/2024 |
| 13,940 | 13,927 | 12,880 | Deposits from credit institutions | 12,880 | 13,927 | 13,941 | |
| 141,485 | 140,170 | 149,908 | Deposits from and debt to customers 9 |
149,446 | 139,661 | 140,897 | |
| 36,570 | 35,308 | 35,898 | Debt created by issue of securities | 16 | 35,898 | 35,308 | 36,570 |
| 13,352 | 13,617 | 14,723 | Subordinated debt | 14,723 | 13,617 | 13,352 | |
| 6,152 | 6,316 | 4,784 | Derivatives | 17 | 4,784 | 6,316 | 6,152 |
| 2,673 | 3,085 | 3,780 | Other liabilities | 15 | 4,605 | 3,863 | 3,527 |
| - | - | - | Investment held for sale 2 |
1 | 2 | 2 | |
| 2,656 | 2,672 | 2,771 | Subordinated loan capital | 16 | 2,850 | 2,753 | 2,735 |
| 216,829 | 215,095 | 224,744 | Total liabilities | 225,187 | 215,446 | 217,175 | |
| 2,884 | 2,884 | 2,884 | Equity capital certificates |
2,884 | 2,884 | 2,884 | |
| -0 | -1 | -0 | Own holding of ECCs | -0 | -1 | -0 | |
| 2,422 | 2,422 | 2,422 | Premium fund | 2,422 | 2,422 | 2,422 | |
| 8,721 | 8,480 | 8,719 | Dividend equalisation fund | 8,719 | 8,480 | 8,721 | |
| 1,803 | - | - | Recommended dividends | - | - | 1,803 | |
| 896 | - | - | Provision for gifts | - | - | 896 | |
| 6,984 | 6,865 | 6,984 | Ownerless capital | 6,984 | 6,865 | 6,984 | |
| 245 | 106 | 245 | Unrealised gains reserve | 245 | 106 | 245 | |
| - | -2 | -3 | Other equity capital | 3,700 | 2,605 | 3,709 | |
| 1,943 | 1,734 | 1,823 | Additional Tier 1 Capital | 1,915 | 1,825 | 2,039 | |
| 1,742 | 2,220 | Profit for the period |
2,134 | 2,098 | |||
| Non-controlling interests | 646 | 718 | 821 | ||||
| 25,898 | 24,232 | 25,294 | Total equity | 29,649 | 28,004 | 30,523 | |
| 242,726 | 239,327 | 250,038 | Total liabilities and equity | 254,836 | 243,450 | 247,699 |
Cash flow statement
| Parent bank | Group | |||||||
|---|---|---|---|---|---|---|---|---|
| First half | First half | |||||||
| 2024 | 2024 | 2025 | (NOKm) | 2025 | 2024 | 2024 | ||
| −9,987 | −3,534 | −2,623 | Decrease/(increase) loans to customers | −2,965 | −3,620 | −10,458 | ||
| 10,324 | 5,028 | 5,229 | Interest receipts from loans to customers | 5,559 | 5,343 | 10,961 | ||
| −538 | −3,657 | −2,783 | Decrease/(increase) loans credit institutions | −2,284 | −3,204 | −414 | ||
| 1,017 | 479 | 543 | Interest receipts from loans to credit institutions | 495 | 428 | 919 | ||
| 8,048 | 5,937 | 7,071 | Increase/(decrease) deposits from customers | 7,197 | 6,001 | 8,034 | ||
| −4,974 | −1,618 | −1,278 | Interest payment on deposits from customers | −1,260 | −1,599 | −4,926 | ||
| 748 | 768 | −1,087 | Increase/(decrease) debt to credit institutions | −1,087 | 768 | 748 | ||
| −551 | −310 | −231 | Interest payment on debt to credit institutions | −231 | −310 | −551 | ||
| −1,902 | −1,913 | 880 | Increase/(decrease) in short term investments | 887 | −1,842 | −1,765 | ||
| 1,579 | 774 | 821 | Interest receipts from short term investments | 792 | 708 | 1,466 | ||
| −766 | −89 | −216 | Increase/(decrease) in derivatives | −216 | −89 | −766 | ||
| −837 | −500 | −425 | Interest receipts from derivatives | −425 | −500 | −837 | ||
| 1,221 | −327 | −458 | Increase/(decrease) in other claims | 180 | 310 | 2,424 | ||
| −2,737 | −687 | −520 | Increase/(decrease) in other debts | −1,532 | −1,460 | −3,959 | ||
| 646 | 350 | 4,923 A) Net change in liquidity from operations | 933 | 877 | ||||
| −176 | −132 | −41 | Gross investment buildings/operating assets | −74 | −640 | −241 | ||
| - | - | - | Sale of buildings/operating assets | - | - | - | ||
| 117 | 38 | 196 | Dividends from subsidiaries | - | - | - | ||
| −37 | - | - | Paid-in capital from reduction in ownership of subsidiaries | - | - | - | ||
| −97 | −97 | −134 | Payment of capital due to increase in shareholding in subsidiaries | - | - | - | ||
| - | - | - | Dividends from associated companies and joint ventures | 583 | 204 | 201 | ||
| 200 | 43 | - | Proceeds from sale of shares of associated companies and joint ventures | - | 42 | 198 | ||
| −717 | −319 | −717 | Payment for purchase of shares of associated companies and joint ventures | −717 | −319 | −717 | ||
| - | - | - | Proceeds from shares held for sale | −3 | −85 | −80 | ||
| 43 | 14 | 12 | Dividends from other businesses | 9 | 8 | 33 | ||
| 1,411 | 929 | 318 | Reduction/sale of shares and ownership interests | 337 | 903 | 1,382 |
19
| −1,175 | −843 | −240 | Increase/purchase of shares and ownership interests | −260 | −843 | −1,208 |
|---|---|---|---|---|---|---|
| −432 | −367 | −606 | B) Net change in liquidity from investments | −126 | −729 | −432 |
| 7,589 | 6,814 | 1,400 | Debt raised by issuance of covered bonds | 1,400 | 6,814 | 7,589 |
| −4,820 | −3,838 | −1,063 | Repayment of issued covered bonds | −1,063 | −3,838 | −4,820 |
| −1,430 | −628 | −732 | Interest payment on covered bonds issued | −732 | −628 | −1,430 |
| 900 | 500 | 100 | Debt raised by issuance of subordinated debt | 100 | 502 | 902 |
| −400 | - | - | Payments of issued subordinated debt | - | - | −400 |
| −187 | −81 | −71 | Interest payment on subordinated debt | −74 | −84 | −194 |
| 1 | −2 | −2 | Proceeds from sale or issue of treasury shares | −2 | −2 | 1 |
| −1,730 | −1,730 | −1,803 | Dividends cleared | −1,803 | −1,730 | −1,730 |
| 201 | 204 | 583 | Dividends paid to non-controlling interests | −77 | −4 | −9 |
| −860 | −860 | −896 | Disbursed from gift fund | −896 | −860 | −860 |
| 143 | 0 | 150 Additional Tier 1 Capital issued | 150 | 0 | 450 | |
| 0 | - | −193 Repayment of Additional Tier 1 Capital | −193 | −8 | −315 | |
| −137 | −66 | −77 Interest payments Additional Tier 1 capital | −81 | −70 | −146 | |
| −731 | 313 | −2,604 C) Net change in liquidity from financial activities | −3,271 | 92 | −962 | |
| −517 | 296 | 1,713 A) + B) + C) Net changes in cash and cash equivalents | 1,713 | 296 | −517 | |
| 1,172 | 1,172 | 654 Cash and cash equivalents at 1.1 | 654 | 1,172 | 1,172 | |
| 654 | 1,468 | 2,368 Cash and cash equivalents at end of the year | 2,368 | 1,468 | 654 | |
| −517 | 296 | 1,713 Net changes in cash and cash equivalents | 1,713 | 296 | −517 |
Changes in equity
Parent bank (2024)
| Issued equity | Earned equity | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| (NOKm) | EC capital | Premium fund |
Ownerless capital |
Equalisation fund |
Dividend and gifts |
Un-realised gains reserve |
Other equity | Additional Tier 1 Capital |
Total equity |
| Equity at 1 January 2024 | 2,884 | 2,422 | 6,865 | 8,482 | 2,591 | 106 | - | 1,800 | 25,150 |
| Net profit | - | - | 119 | 239 | 2,698 | 139 | -49 | 137 | 3,283 |
| Other comprehensive income | |||||||||
| Financial assets through OCI | - | - | - | - | - | - | -4 | - | -4 |
| Actuarial gains (losses), pensions | - | - | - | - | - | - | 52 | - | 52 |
| Other comprehensive income | - | - | - | - | - | - | 48 | - | 48 |
| Total comprehensive income | - | - | 119 | 239 | 2,698 | 139 | -1 | 137 | 3,331 |
| Transactions with owners | |||||||||
| Dividend declared for 2023 | - | - | - | - | -1,730 | - | - | - | -1,730 |
| To be disbursed from gift fund | - | - | - | - | -860 | - | - | - | -860 |
| Additional Tier 1 Capital | - | - | - | - | - | - | - | 450 | 450 |
| Buyback additional Tier 1 Capital issued | - | - | - | - | - | - | - | -307 | -307 |
| Interest payments additional Tier 1 capital | - | - | - | - | - | - | - | -137 | -137 |
| Purchase and sale of own ECCs | 0 | - | - | 1 | - | - | - | - | 1 |
| Direct recognitions in equity | - | - | - | - | - | - | 1 | - | 1 |
| Total transactions with owners | 0 | - | - | 1 | -2,591 | - | 1 | 6 | -2,583 |
| Equity at 31 December 2024 | 2,884 | 2,422 | 6,984 | 8,721 | 2,698 | 245 | -0 | 1,943 | 25,898 |
Parent bank (first half 2025)
| Issued equity | Earned equity | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Premium | Ownerless | Equalisation | Dividend | Un-realised gains |
Additional | ||||
| (NOKm) | EC capital | fund | capital | fund | and gifts | reserve | Other equity | Tier 1 Capital | Total equity |
| Equity at 1 January 2025 | 2,884 | 2,422 | 6,984 | 8,721 | 2,698 | 245 | -0 | 1,943 | 25,898 |
| Net profit | - | - | - | - | - | - | 2,220 | - | 2,220 |
| Other comprehensive income | |||||||||
| Value changes on loans measured at fair value | - | - | - | - | - | - | -4 | - | -4 |
| Actuarial gains (losses), pensions | - | - | - | - | - | - | - | - | - |
| Other comprehensive income | - | - | - | - | - | - | -4 | - | -4 |
| Total comprehensive income | - | - | - | - | - | - | 2,216 | - | 2,216 |
| Transactions with owners | |||||||||
| Dividend declared for 2024 | - | - | - | - | -1,803 | - | - | - | -1,803 |
| To be disbursed from gift fund | - | - | - | - | -896 | - | - | - | -896 |
| Additional Tier 1 Capital | - | - | - | - | - | - | - | 150 | 150 |
| Buyback Additional Tier 1 Capital issued | - | - | - | - | - | - | - | -193 | -193 |
| Interest payments additional Tier 1 capital | - | - | - | - | - | - | - | -77 | -77 |
| Purchase and sale of own ECCs | -0 | - | - | -2 | - | - | - | - | -2 |
| Direct recognitions in equity | - | - | - | - | - | - | 1 | - | 1 |
| Total transactions with owners | -0 | - | - | -2 | -2,698 | - | 1 | -120 | -2,820 |
| Equity at 30 June 2025 | 2,884 | 2,422 | 6,984 | 8,719 | - | 245 | 2,217 | 1,823 | 25,294 |
Group (2024)
| Attributable to parent company equity holders | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Issued equity Earned equity |
||||||||||
| Un-realised | Additional | |||||||||
| Premium | Ownerless | Equalisati | Dividend | gains | Other | Tier 1 | Total | |||
| (NOKm) | EC capital | fund | capital | on fund | and gifts | reserve | equity | Capital | NCI1) | equity |
| Equity at 1 January 2024 | 2,884 | 2,422 | 6,865 | 8,482 | 2,591 | 106 | 2,677 | 1,903 | 666 | 28,597 |
| Net Profit | - | - | 119 | 239 | 2,698 | 139 | 1,145 | 146 | 106 | 4,591 |
| Other comprehensive income | ||||||||||
| Share of other comprehensive income of associates and joint ventures |
- | - | - | - | - | - | -139 | - | - | -139 |
| Value changes on loans measured at fair value | - | - | - | - | - | - | -4 | - | - | -4 |
| Actuarial gains (losses), pensions | - | - | - | - | - | - | 52 | - | - | 52 |
| Other comprehensive income | - | - | - | - | - | - | -91 | - | - | -91 |
| Total comprehensive income | - | - | 119 | 239 | 2,698 | 139 | 1,053 | 146 | 106 | 4,500 |
| Transactions with owners | ||||||||||
| Dividend declared for 2023 | - | - | - | - | -1,730 | - | - | - | - | -1,730 |
| To be disbursed from gift fund | - | - | - | - | -860 | - | - | - | - | -860 |
| Additional Tier 1 Capital issued | - | - | - | - | - | - | - | 450 | - | 450 |
| Buyback Additional Tier 1 Capital issued | - | - | - | - | - | - | - | -315 | - | -315 |
| Interest payments additional Tier 1 capital | - | - | - | - | 0 | - | - | -146 | - | -146 |
| Purchase and sale of own ECCs | 0 | - | - | 1 | - | - | - | - | - | 1 |
| Direct recognitions in equity | - | - | - | - | - | - | 0 | - | - | 0 |
| Share of other transactions from associates and joint ventures | - | - | - | - | - | - | -21 | - | - | -21 |
| Change in non-controlling interests | - | - | - | - | - | - | - | - | 48 | 48 |
| Total transactions with owners | 0 | - | - | 1 | -2,591 | - | -21 | -10 | 48 | -2,573 |
| Equity at 31 December 2024 | 2,884 | 2,422 | 6,984 | 8,721 | 2,698 | 245 | 3,709 | 2,039 | 821 | 30,523 |
1) Non-controlling interests
Group (first half 2025)
| Attributable to parent company equity holders | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Issued equity | Earned equity | |||||||||
| Un-realised | Additional | Total | ||||||||
| Premium | Ownerless | Equalisati | Dividend | gains | Other | Tier 1 | ||||
| (NOKm) | EC capital | fund | capital | on fund | and gifts | reserve | equity | Capital | NCI1) | equity |
| Equity at 1 January 2025 | 2,884 | 2,422 | 6,984 | 8,721 | 2,698 | 245 | 3,709 | 2,039 | 821 | 30,523 |
| Net profit | - | - | - | - | - | - | 2,090 | - | 45 | 2,134 |
| Other comprehensive income | ||||||||||
| Share of other comprehensive income of associates and joint | - | - | - | - | - | - | 35 | - | - | 35 |
| ventures | ||||||||||
| Value changes on loans measured at fair value | - | - | - | - | - | - | -4 | - | - | -4 |
| Actuarial gains (losses), pensions | - | - | - | - | - | - | - | - | - | - |
| Other comprehensive income | - | - | - | - | - | - | 31 | - | - | 31 |
| Total comprehensive income | - | - | - | - | - | - | 2,121 | - | 45 | 2,165 |
| Transactions with owners | ||||||||||
| Dividend declared for 2024 | - | - | - | - | -1,803 | - | - | - | - | -1,803 |
| To be disbursed from gift fund | - | - | - | - | -896 | - | - | - | - | -896 |
| Additional Tier 1 Capital issued | - | - | - | - | - | - | - | 150 | - | 150 |
| Buyback Additional Tier 1 Capital issued | - | - | - | - | - | - | - | -193 | - | -193 |
| Interest payments additional Tier 1 capital | - | - | - | - | 0 | - | - | -81 | - | -81 |
| Purchase and sale of own ECCs | -0 | - | - | -2 | - | - | - | - | - | -2 |
| Direct recognitions in equity | - | - | - | - | - | - | 3 | - | - | 3 |
| Share of other transactions from associates and joint ventures | - | - | - | - | - | - | 2 | - | - | 2 |
| Change in non-controlling interests | - | - | - | - | - | - | - | - | -220 | -220 |
| Total transactions with owners | -0 | - | - | -2 | -2,698 | - | 5 | -124 | -220 | -3,040 |
| Equity at 30 June 2025 | 2,884 | 2,422 | 6,984 | 8,719 | - | 245 | 5,835 | 1,915 | 646 | 29,649 |
1) Non-controlling interests
Foto:
Bondhusvatnet i Sunndal, Møre og Romsdal
Notes
| Note 1: Accounting principles | 26 |
|---|---|
| Note 2: Critical estimates and assessment concerning the use of | |
| accounting principles | 27 |
| Note 3: Operating segments | 29 |
| Note 4: Capital adequacy | 32 |
| Note 5: Distribution of loans by sector/industry | 36 |
| Note 6: Losses on loans and guarantees | 37 |
| Note 7: Provision for losses on loans and guarantees | 38 |
| Note 8: Gross loans | 46 |
| Note 9: Distribution of customer deposits by sector/industry | 48 |
| Note 10: Net interest income | 49 |
| Note 11: Net commission income and other income | 50 |
| Note 12: Operating expenses | 51 |
| Note 13: Net return on financial investments | 52 |
| Note 14: Other assets | 53 |
| Note 15: Other liabilities | 54 |
| Note 16: Debt created by issue of securities and subordinated debt | 55 |
| Note 17: Measurement of fair value of financial instruments | 56 |
| Note 18: Liquidity risk | 59 |
| Note 19: Earnings per ECC | 60 |
Note 1: Accounting principles
SpareBank 1 SMN prepares and presents its quarterly accounts in compliance with the Stock Exchange Regulations, Stock Exchange Rules and International Financial Reporting Standards (IFRS) approved by EU, including IAS 34, Interim Financial Reporting. The quarterly accounts do not include all the information required in a complete set of annual financial statements and should be read in conjunction with the annual accounts for 2024. The Group has in this quarterly report used the same accounting principles and calculation methods as in the latest annual report and accounts.
26
Note 2: Critical estimates and assessment concering the use of accounting principles
When it prepares the consolidated accounts the management team makes estimates, discretionary assessments and assumptions which influence the application of accounting principles. This accordingly affects recognised amounts for assets, liabilities, revenues and expenses. Last year's annual accounts give a closer explanation of significant estimates and assumptions in Note 3 Critical estimates and assessments concerning the use of accounting principles.
Investments held for sale
SpareBank 1 SMN's strategy is that ownership due to defaulted exposures should at the outset be of brief duration, normally not longer than one year. Investments are recorded at fair value in the Parent bank's accounts, and is classified as investment held for sale.
| Liabili | Owners | |||||
|---|---|---|---|---|---|---|
| First half (2025) | Assets | ties | Revenue | Expenses | Profit | hip share |
| Mavi XV AS Group | 184 | 1 | 7 | -15 | -8 | 100% |
| Total held for sale | 184 | 1 | 7 | -15 | -8 |
Losses on loans and guarantees
For a detailed description of the bank's model for expected credit losses, refer to note 10 in the annual accounts for 2024.
Measurement of expected credit loss for each stage requires both information on events and current conditions and information on expected events and future economic conditions. Estimation and use of forward-looking information requires a high degree of discretionary judgement. Each macroeconomic scenario that is utilised includes a projection for a five-year period. For credits where credit risk is assessed to have increased significantly since loan approval (stage 2), loss estimates for the period after year 5 are based on year 5 as regards level of PD and LGD.
Our estimate of expected credit loss at stage 1 and 2 is a probability-weighted average of three scenarios: Base Case, Best Case and Worst Case. The model that computes model write-downs is based on two macro variables – interest rate level (three-month NIBOR) and unemployment (Statistics Norway's Labour Force Survey, AKU). The assumptions in the baseline scenario are based on the assumptions in Norges Bank's Monetary Policy Report 2/25, but the bank makes its own assessments of the assumptions. The downside scenario features high interest rates and high unemployment, which are largely based on Finanstilsynet's stress test reported in Financial Outlook, June 2025. The upside scenario features low interest rates and low unemployment.
Calculation of the Group's overall model write-downs is based on calculations of expected credit loss (ECL) for each of five portfolios below. For each portfolio, separate assumptions are defined with regard to how the macro variables 'interest rate' and 'unemployment' impact PD and LGD. The relationships between the macro variables are developed using of regression analysis and simulation, while the relationships between the macro variables and LGD are based largely on expert assessments and discretionary judgement. The five portfolios are:
- • Residental mortgages
- • Other retail loans
- • Agriculture
- • Industries with large balance sheets / high long-term debt ratios (real estate, shipping, offshore, aquaculture, fishery)
- • Industries with smaller balance sheets / low long-term debt ratios (other industries)
The criteria for classification in stage 2 ("significantly increased credit risk since approval") have not been changed in the quarter. The customers in building and construction industry (including industries closely linked to the building and construction sector) and some fishery segments are generally considered to have acquired significantly increased credit risk since loan approval and customers in this industry are accordingly classified to stage 2 or 3.
ECL as at 30 June 2025 is calculated as a combination of 80 per cent expected scenario, 10 per cent downside scenario and 10 per cent upside scenario (80/10/10 pct).
The effect of the change in assumptions in the second quarter of 2025 is presented on the line "Change due to updated assumptions in the impairment model" in Note 7. The updated macroeconomic assumptions this quarter, in isolation, lead to a somewhat reduced level of impairments for the Group, although there are differences between portfolios. In the base case-scenario, the interest rate path is slightly lower early in the simulation period, while the unemployment estimate has been increased in line with the latest figures from Statistics Norway (SSB). The downside scenario has been replaced with the Financial Supervisory Authority's updated stress scenario described in the "Financial Outlook" from June 2025. This is a scenario characterised by sharply higher interest rates and reduced growth in what constitutes a stagflation scenario – partly caused by significant international trade barriers. Compared with last quarter's downside scenario, the updated scenario entails higher interest rates and higher unemployment over the longer term (but not in the first year) of the simulation period. As in the previous quarter, our assumption is a long-term NIBOR interest rate level of 3.5 per cent, which is higher than Norges Bank's estimate. Combined with a higher unemployment estimate, this results in a weaker base scenario than that assumed by Norges Bank.
For the Group as a whole, model-based impairments increased somewhat during the quarter. The overall level is driven up by portfolio growth and a higher volume in Stage 2. At the same time, updated model correlations between macroeconomic variables and PD levels—based on 2024 default statistics—and the new macroeconomic assumptions described above contribute to a slightly lower impairment level. In total, for the first half of 2025, this amounts to NOK 99 million in increased impairments for the bank and NOK 80 million for the Group.
Sensitivities
The first part of the table below show total calculated expected credit loss as of 30 June 2025 in each of the three scenarios, distributed in the portfolios retail market (RM) corporate market (CM), and agriculture which adds up to parent bank. In addition the subsidiary SpareBank 1 Finans Midt-Norge (SB1 Finans MN) is included. ECL for the parent bank and the subsidiary is summed up in the column "Group".
The second part of the table show the ECL distributed by portfolio using the scenario weight applied, in addition to a alternative weighting where worst case have been doubled.
If the downside scenario's probability were doubled at the expense of the baseline scenario at the end of June 2025, this would have entailed an increase in loss provisions of NOK 122 million for the parent bank and NOK 148 million for the Group.
| CM | RM | Agriculture | Total Parent | SB 1 Finans MN CM |
SB 1 Finans MN RM |
Total Group | |
|---|---|---|---|---|---|---|---|
| ECL base case | 602 | 97 | 79 | 778 | 41 | 11 | 830 |
| ECL worst case | 1 486 |
325 | 184 | 1 995 |
235 | 78 | 2 309 |
| ECL best case | 456 | 75 | 59 | 589 | 25 | 8 | 622 |
| ECL with scenario weights used 80/10/10 | 676 | 118 | 88 | 881 | 58 | 17 | 957 |
| ECL alternative scenario weights 70/20/10 | 764 | 140 | 98 | 1 003 |
78 | 24 | 1 105 |
| Changes in ECL due to alternative weights | 88 | 23 | 10 | 122 | 19 | 7 | 148 |
The table reflects that there are some significant differences in underlying PD and LGD estimates in the different scenarios and that there are differentiated levels and level differences between the portfolios. At Group level, the ECL in the upside scenario, which largely reflects the loss and default picture in recent years, is about 75 per cent of the ECL in the expected scenario. The downside scenario gives more than double the ECL than in the expected scenario. Applied scenario weighting gives about 15 per cent higher ECL than in the expected scenario.
Note 3: Operating segments
For the subsidiaries the figures refer to the respective company accounts, while for joint ventures incorporated by the equity method the Group's profit share is stated, after tax.
Group 2nd quarter 2025
| Corporate | SB 1 Finans | SB 1 Regnskapshuset | ||||||
|---|---|---|---|---|---|---|---|---|
| Income statement (NOKm) | Retail market | market | EM 1 | MN | SMN | Other | Uncollated | Total |
| Net interest | 473 | 585 | -1 | 136 | 1 | - | 142 | 1,335 |
| Interest from allocated capital | 92 | 70 | - | - | - | - | -162 | - |
| Total interest income | 565 | 655 | -1 | 136 | 1 | - | -20 | 1,335 |
| Comission income and other income | 234 | 105 | 173 | -25 | 249 | - | -5 | 730 |
| Net return on financial investments 1) | -1 | 3 | 1 | - | - | 271 | 16 | 289 |
| Total income | 798 | 762 | 172 | 111 | 250 | 271 | -10 | 2,354 |
| Total operating expenses | 375 | 200 | 131 | 34 | 193 | - | -15 | 917 |
| Ordinary operating profit | 423 | 563 | 42 | 77 | 57 | 271 | 5 | 1,437 |
| Loss on loans, guarantees etc. | 2 | 21 | - | 9 | - | - | 0 | 32 |
| Result before tax | 421 | 542 | 42 | 68 | 57 | 271 | 5 | 1,405 |
Group 2nd quarter 2024
| Corporate | SB 1 Finans | SB 1 Regnskapshuset | ||||||
|---|---|---|---|---|---|---|---|---|
| Income statement (NOKm) | Retail market | market | EM 1 | MN | SMN | Other | Uncollated | Total |
| Net interest | 437 | 542 | 2 | 136 | 1 | - | 192 | 1,309 |
| Interest from allocated capital | 75 | 63 | - | - | - | - | -138 | - |
| Total interest income | 512 | 605 | 2 | 136 | 1 | - | 54 | 1,309 |
| Comission income and other income | 232 | 88 | 151 | -26 | 247 | - | -12 | 681 |
| Net return on financial investments 1) | 0 | 3 | 1 | - | - | 148 | 1 | 153 |
| Total income | 744 | 696 | 154 | 111 | 248 | 148 | 43 | 2,143 |
| Total operating expenses | 307 | 170 | 111 | 27 | 194 | - | -8 | 800 |
| Ordinary operating profit | 437 | 526 | 43 | 84 | 54 | 148 | 50 | 1,343 |
| Loss on loans, guarantees etc. | 4 | 35 | - | 7 | - | - | -0 | 47 |
| Result before tax | 433 | 491 | 43 | 76 | 54 | 148 | 50 | 1,296 |
Group first half 2025
| Corporate | SB 1 Finans | SB 1 Regnskapshuset | ||||||
|---|---|---|---|---|---|---|---|---|
| Income statement (NOKm) | Retail market | market | EM 1 | MN | SMN | Other | Uncollated | Total |
| Net interest | 915 | 1,132 | -0 | 274 | 2 | - | 334 | 2,657 |
| Interest from allocated capital | 171 | 134 | - | - | - | - | -305 | - |
| Total interest income | 1,086 | 1,266 | -0 | 274 | 2 | - | 29 | 2,657 |
| Comission income and other income | 448 | 196 | 298 | -49 | 492 | - | -8 | 1,378 |
| Net return on financial investments 1) | 0 | 6 | 1 | - | - | 462 | -1 | 468 |
| Total income | 1,534 | 1,469 | 298 | 225 | 494 | 462 | 20 | 4,502 |
| Total operating expenses | 710 | 387 | 249 | 71 | 385 | - | -26 | 1,776 |
| Ordinary operating profit | 824 | 1,082 | 49 | 155 | 109 | 462 | 46 | 2,727 |
| Loss on loans, guarantees etc. | - 2 |
36 | - | 18 | - | - | -0 | 52 |
| Result before tax | 826 | 1,046 | 49 | 136 | 109 | 462 | 46 | 2,674 |
Group first half 2024
| Corporate | SB 1 Finans | SB 1 Regnskapshuset | ||||||
|---|---|---|---|---|---|---|---|---|
| Income statement (NOKm) | Retail market | market | EM 1 | MN | SMN | Other | Uncollated | Total |
| Net interest | 885 | 1,071 | 3 | 266 | 1 | - | 419 | 2,646 |
| Interest from allocated capital | 138 | 118 | - | - | - | - | -256 | - |
| Total interest income | 1,023 | 1,189 | 3 | 266 | 1 | - | 163 | 2,646 |
| Comission income and other income | 405 | 172 | 266 | -48 | 463 | - | 2 | 1,259 |
| Net return on financial investments 1) | -0 | 6 | 1 | - | - | 342 | 55 | 404 |
| Total income | 1,428 | 1,366 | 271 | 218 | 465 | 342 | 220 | 4,309 |
| Total operating expenses | 604 | 341 | 207 | 66 | 376 | - | - 4 |
1,589 |
| Ordinary operating profit | 824 | 1,025 | 63 | 152 | 89 | 342 | 224 | 2,720 |
| Loss on loans, guarantees etc. | 9 | 52 | - | 10 | - | - | -0 | 70 |
| Result before tax | 815 | 973 | 63 | 143 | 89 | 342 | 224 | 2,649 |
Group 2024
| Corporate | SB 1 Finans | SB 1 Regnskapshuset | ||||||
|---|---|---|---|---|---|---|---|---|
| Income statement (NOKm) | Retail market | market | EM 1 | MN | SMN | Other | Uncollated | Total |
| Net interest | 1,888 | 2,219 | 6 | 549 | 4 | - | 708 | 5,373 |
| Interest from allocated capital | 282 | 242 | - | - | - | - | -524 | - |
| Total interest income | 2,170 | 2,461 | 6 | 549 | 4 | - | 184 | 5,373 |
| Comission income and other income | 800 | 346 | 505 | -96 | 804 | - | 33 | 2,392 |
| Net return on financial investments 1) | -3 | 7 | 1 | - | - | 1,254 | 98 | 1,357 |
| Total income | 2,967 | 2,814 | 512 | 453 | 808 | 1,254 | 314 | 9,123 |
| Total operating expenses | 1,277 | 700 | 442 | 136 | 730 | - | 15 | 3,300 |
| Ordinary operating profit | 1,689 | 2,114 | 71 | 317 | 78 | 1,254 | 299 | 5,823 |
| Loss on loans, guarantees etc. | 18 | 138 | - | 20 | - | - | -0 | 176 |
| Result before tax | 1,671 | 1,976 | 71 | 298 | 78 | 1,254 | 299 | 5,647 |
| Second quarter | First half | ||||
|---|---|---|---|---|---|
| 1) Specification of other (NOKm) | 2025 | 2024 | 2025 | 2024 | 2024 |
| SpareBank 1 Gruppen | 114 | 1 | 173 | 41 | 226 |
| Gain from Fremtind/Eika merger | - | - | - | - | 452 |
| SpareBank 1 Boligkreditt | 16 | 35 | 40 | 68 | 129 |
| SpareBank 1 Næringskreditt | 3 | 3 | 6 | 7 | 14 |
| BN Bank | 85 | 73 | 159 | 157 | 302 |
| SpareBank 1 Markets | 2 | 26 | 2 | 51 | 89 |
| Kredittbanken | 18 | 1 | 37 | -2 | -10 |
| SpareBank 1 Betaling | -7 | -2 | -11 | -14 | -19 |
| SpareBank 1 Forvaltning | 14 | 13 | 27 | 23 | 54 |
| Other companies | 25 | -3 | 29 | 10 | 15 |
| Income from investment in associates and joint ventures | 271 | 148 | 462 | 342 | 1,254 |
Note 4: Capital adequacy
Capital adequacy is calculated and reported in accordance with the EU capital requirements regulations for banks and investment firms (CRR/CRD IV). SpareBank 1 SMN utilises the Internal Rating Based Approach (IRB) for credit risk. Advanced IRB approach is used for the corporate portfolios. Use of IRB imposes wide-ranging requirements on the bank's organisational set-up, competence, risk models and risk management systems.
As of 30 June 2025 the overall minimum requirement on CET1 capital is 14.0 per cent. The capital conservation buffer requirement is 2.5 per cent, the systemic risk requirement for Norwegian IRB-banks is 4.5 per cent and the Norwegian countercyclical buffer is 2.5 per cent. These requirements are additional to the requirement of 4.5 per cent CET1 capital. In addition the financial supervisory authority has set a Pillar 2 requirement for SpareBank 1 SMN. From 31 December 2023, the requirement is 1.7 per cent and must be met with a minimum of 56.25 per cent. In addition the bank must have an additional 0.7 per cent in Pillar 2 requirements until the application for adjusting IRB-models has been processed.
Under the CRR/CRDIV regulations the average risk weighting of exposures secured on residential property in Norway cannot be lower than 20 per cent. As of 30 June 2025, the average risk weights have been adjusted upwards to 20 per cent for both the parent bank and the Group.
The systemic risk buffer stands at 4.5 per cent for the Norwegian exposures. For exposures in other countries, the particular country's systemic buffer rate shall be employed. As of 30 June 2025 the effective rate for the group is 4.45 per cent.
The countercyclical buffer is calculated using differentiated rates. For exposures in other countries the countercyclical buffer rate set by the authorities in the country concerned is applied. If that country has not set a rate, the same rate as for exposures in Norway is applied unless the Ministry of Finance sets another rate. As of 30 June 2025 both the parent bank and the Group is below the capital deduction threshold such that the Norwegian rate is applied to all relevant exposures.
| Parent bank | Group | |||||
|---|---|---|---|---|---|---|
| 31/12/2024 | 30/06/2024 | 30/06/2025 | (NOKm) | 30/06/2025 | 30/06/2024 | 31/12/2024 |
| 25,898 | 24,232 | 25,294 | Total book equity | 29,649 | 27,879 | 30,523 |
| -1,943 | -1,734 | -1,823 | Additional Tier 1 capital instruments included in total equity | -1,915 | -1,825 | -2,039 |
| -771 | -803 | -758 | Deferred taxes, goodwill and other intangible assets | -1,677 | -1,697 | -2,272 |
| -2,698 | - | - | Deduction for allocated dividends and gifts | - | - | -2,698 |
| - | - | - | Non-controlling interests recognised in other equity capital | -646 | -718 | -821 |
| - | - | - | Non-controlling interests eligible for inclusion in CET1 capital | 530 | 700 | 700 |
| - | -1,742 | -2,220 | Net profit | -2,134 | -2,098 | - |
| - | 203 | 897 | Year-to-date profit included in core capital (39 per cent (27 per cent) pre tax of group profit) | 807 | 555 | - |
| -58 | -54 | -54 | Value adjustments due to requirements for prudent valuation | -75 | -74 | -78 |
| -407 | -277 | -313 | Positive value of adjusted expected loss under IRB Approach | -474 | −500 | -641 |
| - | - | - | Cash flow hedge reserve | - | −4 | -2 |
| -350 | -350 | -350 | Deduction for common equity Tier 1 capital in significant investments in financial institutions | -664 | -266 | -264 |
| 19,670 | 19,474 | 20,672 | Common equity Tier 1 capital | 23,402 | 21,951 | 22,409 |
| 1,800 | 1,800 | 1,900 | Additional Tier 1 capital instruments | 2,513 | 2,313 | 2,409 |
| -49 | -48 | -49 | Deduction for significant investments in financial institutions | -49 | -48 | -49 |
| 21,422 | 21,226 | 22,523 | Tier 1 capital | 25,866 | 24,216 | 24,769 |
| Supplementary capital in excess of core capital | ||||||
| 2,650 | 2,650 | 2,750 | Subordinated capital | 3,573 | 3,473 | 3,465 |
| -230 | -216 | -230 | Deduction for significant investments in financial institutions | -230 | -216 | -230 |
| 2,420 | 2,434 | 2,520 | Additional Tier 2 capital instruments | 3,343 | 3,257 | 3,235 |
| 23,842 | 23,660 | 25,043 | Total eligible capital | 29,209 | 27,474 | 28,004 |
SECOND QUARTER 2025
| Morbank | Konsern | |||||
|---|---|---|---|---|---|---|
| 31/12/2024 | 30/06/2024 | 30/06/2025 | (NOKm) | 30/06/2025 | 30/06/2024 | 31/12/2024 |
| Risk weighted assets (RWA) | ||||||
| 17,015 | 17,581 | 15,725 | Specialised enterprises | 18,730 | 21,001 | 20,514 |
| 12,252 | 11,219 | 16,165 | Corporate | 17,284 | 11,483 | 12,422 |
| 21,185 | 20,177 | 19,517 | Mass market exposure, property | 37,296 | 37,820 | 39,806 |
| 1,498 | 1,563 | 1,766 | Other mass market | 1,925 | 1,615 | 1,540 |
| 19,411 | 19,137 | - | Equity positions IRB | - | - | - |
| 71,361 | 69,677 | 53,173 | Total credit risk IRB | 75,235 | 71,919 | 74,283 |
| 15 | 25 | 15 | Central government | 299 | 377 | 324 |
| 1,450 | 1,213 | 1,464 | Covered bonds | 1,983 | 2,000 | 2,100 |
| 4,540 | 4,358 | 5,530 | Institutions | 3,137 | 2,993 | 3,327 |
| 1,032 | 1,557 | 941 | Local and regional authorities, state-owned enterprises | 1,080 | 1,742 | 1,177 |
| 3,145 | 3,258 | 1,689 | Corporate | 4,040 | 6,460 | 6,895 |
| 216 | 258 | 17 | Mass market | 8,698 | 8,776 | 8,745 |
| 840 | 678 | 3,058 | Exposures secured on real property | 4,631 | 1,631 | 1,592 |
| - | - | 64 | Defaulted exposures | 515 | 342 | 396 |
| 889 | 889 | 14,020 | Equity positions | 6,908 | 6,009 | 5,946 |
| 1,682 | 1,560 | 1,167 | Other assets | 2,345 | 3,195 | 2,734 |
| 13,810 | 13,798 | 27,965 | Total credit risk standardised approach | 33,635 | 33,525 | 33,235 |
| 409 | 587 | 642 | Debt risk | 628 | 588 | 405 |
| - | - | 320 | Equity risk | 831 | 111 | 137 |
| - | - | - | Currency risk and risk exposure for settlement/delivery | 29 | 42 | 13 |
| 7,859 | 6,810 | 8,295 | Operational risk | 12,658 | 11,273 | 13,125 |
| 463 | 380 | 512 | Credit value adjustment risk (CVA) | 1,623 | 1,383 | 1,424 |
| 93,902 | 91,252 | 90,907 | Risk weighted assets (RWA) | 124,640 | 118,842 | 122,622 |
| 7,512 | 7,300 | 7,273 | Minimum requirements subordinated capital | 9,971 | 9,507 | 9,810 |
| 4,226 | 4,106 | 4,091 | Minimum requirement on CET1 capital, 4.5 per cent | 5,609 | 5,348 | 5,518 |
| Capital Buffer s |
||||||
|---|---|---|---|---|---|---|
| 2,348 | 2,281 | 2,273 | Capital conservation buffer, 2.5 per cent | 3,116 | 2,971 | 3,066 |
| 4,179 | 4,070 | 4,045 | Systemic risk buffer, 4.45 per cent | 5,534 | 5,268 | 5,444 |
| 2,348 | 2,281 | 2,273 | Countercyclical buffer, 2.5 per cent | 3,116 | 2,971 | 3,066 |
| 8,874 | 8,632 | 8,591 | Total buffer requirements on CET1 capital | 11,766 | 11,210 | 11,576 |
| 6,571 | 6,735 | 7,991 | Available CET1 capital after buffer requirements | 6,027 | 5,393 | 5,315 |
| Capital adequacy | ||||||
| 20.9 % |
21.3 % |
22.7 % |
Common equity Tier 1 capital ratio | 18.8 % |
18.5 % |
18.3 % |
| 22.8 % |
23.3 % |
24.8 % |
Tier 1 capital ratio | 20.8 % |
20.4 % |
20.2 % |
| 25. 4 % |
25.9 % |
27.5 % |
Capital ratio | 23. 4 % |
23.1 % |
22.8 % |
| Leverage ratio | ||||||
| 235,069 | 228,597 | 240,307 | Balance sheet items | 353,006 | 333,472 | 342,557 |
| 8,473 | 8,313 | 16,565 | Off-balance sheet items | 18,506 | 9,939 | 10,145 |
| -513 | -380 | -417 | Regulatory adjustments | -598 | -622 | -768 |
| 243,028 | 236,530 | 256,455 | Calculation basis for leverage ratio | 370,914 | 342,789 | 351,934 |
| 21,422 | 21,226 | 22,523 | Core capital | 25,866 | 24,216 | 24,769 |
| 8.8 % |
9.0 % |
8.8 % |
Leverage Ratio | 7.0 % |
7.1 % |
7.0 % |
35
Note 5: Distribution of loans by sector/industry
| Parent bank | Group | |||||
|---|---|---|---|---|---|---|
| 31/12/2024 | 30/06/2024 | 30/06/2025 | (NOKm) | 30/06/2025 | 30/06/2024 | 31/12/2024 |
| 13,029 | 12,270 | 12,766 | Agriculture and forestry | 13,300 | 12,756 | 13,519 |
| 6,055 | 5,626 | 5,866 Fisheries and hunting | 5,898 | 5,655 | 6,085 | |
| 3,835 | 2,346 | 4,072 | Sea farming industries | 4,509 | 2,650 | 4,144 |
| 3,697 | 3,328 | 2,818 | Manufacturing | 3,494 | 3,934 | 4,362 |
| 4,996 | 6,073 | 4,952 | Construction, power and water supply | 6,298 | 7,367 | 6,332 |
| 3,266 | 3,062 | 3,796 | Retail trade, hotels and restaurants | 4,733 | 3,993 | 4,201 |
| 4,043 | 4,850 | 4,211 | Maritime sector | 4,211 | 4,850 | 4,043 |
| 24,845 | 23,543 | 24,569 | Property management | 24,683 | 23,658 | 24,964 |
| 4,965 | 4,612 | 5,720 | Business services | 6,506 | 5,406 | 5,701 |
| 6,099 | 5,875 | 5,779 | Transport and other services provision | 6,990 | 7,044 | 7,311 |
| 37 | 10 | 12 | Public administration | 36 | 35 | 62 |
| 1,548 | 1,571 | 1,213 | Other sectors | 1,130 | 1,339 | 1,466 |
| 76,414 | 73,167 | 75,774 Gross loans in Corporate market | 81,788 | 78,687 | 82,191 | |
| 159,911 | 155,970 | 163,778 Wage earners | 171,102 | 163,146 | 167,159 | |
| 236,326 | 229,137 | 239,553 Gross loans incl. SB1 Boligkreditt /SB1 Næringskreditt | 252,890 | 241,832 | 249,350 | |
| 67,830 | 66,786 | 68,622 | - of which SpareBank 1 Boligkreditt | 68,622 | 66,786 | 67,830 |
| 1,419 | 1,606 | 1,278 | - of which SpareBank 1 Næringskreditt | 1,278 | 1,606 | 1,419 |
| 167,077 | 160,745 | 169,653 Total Gross loans to and receivables from customers | 182,990 | 173,440 | 180,102 | |
| 641 | 666 | 642 | - Loan loss allowance on amortised cost loans | 725 | 793 | 724 |
| 124 | 129 | 127 | - Loan loss allowance on loans at FVOCI | 127 | 129 | 124 |
| 166,312 | 159,950 | 168,884 Net loans to and receivables from customers | 182,138 | 172,518 | 179,254 |
Note 6: Losses on loans and guarantees
Parent bank
| First half | 2nd quarter | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | 2024 | |||||||||||
| (NOKm) | RM 1) | CM 1) | Total | RM 1) | CM 1) | Total | RM 1) | CM 1) | Total | RM 1) | CM 1) | Total | RM 1) | CM 1) | Total |
| Change in provision for expected credit losses | −1 | 28 | 27 | 21 | 33 | 54 | 2 | 16 | 18 | 11 | 22 | 33 | 38 | 28 | 65 |
| Actual loan losses on commitments exceeding provisions made | 1 | 16 | 17 | 2 | 11 | 13 | 1 | 12 | 13 | 0 | 9 | 9 | 3 | 105 | 109 |
| Recoveries on commitments previously written-off | −3 | −7 | −10 | −3 | −4 | −6 | −2 | −7 | −9 | −2 | −1 | −2 | −5 | −13 | −18 |
| Losses for the period on loans and guarantees | −2 | 36 | 34 | 21 | 40 | 61 | 2 | 21 | 22 | 9 | 30 | 40 | 36 | 120 | 156 |
1) RM = Retail market, CM = Corporate market
Group
| First half | 2nd quarter | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | 2024 | |||||||||||
| (NOKm) | RM 1) | CM 1) | Total | RM 1) | CM 1) | Total | RM 1) | CM 1) | Total | RM 1) | CM 1) | Total | RM 1) | CM 1) | Total |
| Change in provision for expected credit losses | −2 | 30 | 27 | 16 | 34 | 50 | 3 | 14 | 18 | 10 | 23 | 34 | 33 | −14 | 19 |
| Actual loan losses on commitments exceeding provisions made | 6 | 29 | 36 | 2 | 11 | 13 | 5 | 18 | 23 | −1 | 4 | 2 | 9 | 166 | 175 |
| Recoveries on commitments previously written-off | −3 | −7 | −10 | 2 | 6 | 7 | −2 | −7 | −9 | 3 | 9 | 11 | −5 | −14 | −19 |
| Losses for the period on loans and guarantees | 1 | 51 | 52 | 20 | 51 | 70 | 6 | 25 | 32 | 12 | 35 | 47 | 37 | 139 | 176 |
1) RM = Retail market, CM = Corporate market
Note 7: Provision for losses on loans and guarantees
| Parent bank (NOKm) | 01/01/2025 1) | Change in provision | Net write-offs /recoveries | 30/06/2025 |
|---|---|---|---|---|
| Loans as amortised cost (CM) | 718 | 27 | -35 | 710 |
| Loans as amortised cost (RM) | 27 | 1 | -2 | 26 |
| Loans at fair value over OCI (RM) | 97 | -1 | - | 95 |
| Loans at fair value over OCI (CM) | 57 | 0 | - | 57 |
| Provision for expected credit losses on loans and guarantees | 899 | 27 | -37 | 888 |
| Presented as | ||||
| Provision for loan losses | 765 | 42 | -37 | 769 |
| Other debt- provisons | 102 | -10 | - | 92 |
| Other comprehensive income - fair value adjustment | 31 | -4 | - | 27 |
1) The opening balance as of 01/01/25 is adjusted to match the closing balance as of 31/12/24 due to the transfer of the Agriculture segment from RM to CM. This change took effect from 01/01/25, and historical figures have not been restated.
| Parent bank (NOKm) | 01/01/2024 | Change in provision | Net write-offs /recoveries | 30/06/2024 |
|---|---|---|---|---|
| Loans as amortised cost (CM) | 671 | 30 | -11 | 690 |
| Loans as amortised cost (RM) | 43 | 15 | - | 58 |
| Loans at fair value over OCI (RM) | 137 | 6 | - | 144 |
| Loans at fair value over OCI (CM) | 13 | 3 | - | 16 |
| Provision for expected credit losses on loans and guarantees | 864 | 54 | -11 | 908 |
| Presented as | ||||
| Provision for loan losses | 776 | 29 | -11 | 795 |
| Other debt- provisons | 53 | 27 | - | 80 |
| Other comprehensive income - fair value adjustment | 36 | -2 | - | 33 |
| Parent bank (NOKm) | 01/01/2024 | Change in provision | Net write-offs /recoveries | 31/12/2024 |
|---|---|---|---|---|
| Loans as amortised cost (CM) | 671 | 37 | -31 | 677 |
| Loans as amortised cost (RM) | 43 | 26 | -0 | 69 |
| Loans at fair value over OCI (RM) | 137 | 12 | - | 149 |
| Loans at fair value over OCI (CM) | 13 | -9 | - | 4 |
| Provision for expected credit losses on loans and guarantees | 864 | 65 | -31 | 899 |
| Presented as | ||||
| Provision for loan losses | 776 | 20 | -31 | 765 |
| Other debt- provisons | 53 | 50 | - | 102 |
| Other comprehensive income - fair value adjustment | 36 | -4 | - | 31 |
| Group (NOKm) | 01/01/2025 1) | Change in provision | Net write-offs /recoveries | 30/06/2025 |
|---|---|---|---|---|
| Loans as amortised cost (CM) | 780 | 27 | -33 | 774 |
| Loans as amortised cost (RM) | 48 | -1 | -2 | 45 |
| Loans at fair value over OCI (RM) | 97 | -1 | - | 95 |
| Loans at fair value over OCI (CM) | 57 | 0 | - | 57 |
| Provision for expected credit losses on loans and guarantees | 981 | 25 | -35 | 971 |
| Presented as | ||||
| Provision for loan losses | 848 | 39 | -35 | 852 |
| Other debt- provisons | 102 | -10 | - | 92 |
| Other comprehensive income - fair value adjustment | 31 | -4 | - | 27 |
1) The opening balance as of 01/01/25 is adjusted to match the closing balance as of 31/12/24 due to the transfer of the Agriculture segment from RM to CM. This change took effect from 01/01/25, and historical figures have not been restated.
| Group (NOKm) | 01/01/2024 | Change in provision | Net write-offs /recoveries | 30/06/2024 |
|---|---|---|---|---|
| Loans as amortised cost (CM) | 777 | 33 | -12 | 798 |
| Loans as amortised cost (RM) | 68 | 9 | - | 77 |
| Loans at fair value over OCI (RM) | 137 | 6 | - | 144 |
| Loans at fair value over OCI (CM) | 13 | 3 | - | 16 |
| Provision for expected credit losses on loans and guarantees | 995 | 52 | -12 | 1,034 |
| Presented as | ||||
| Provision for loan losses | 907 | 27 | -12 | 922 |
| Other debt- provisons | 53 | 27 | - | 80 |
| Other comprehensive income - fair value adjustment | 36 | -2 | - | 33 |
| Group (NOKm) | 01/01/2024 | Change in provision | Net write-offs /recoveries | 31/12/2024 |
|---|---|---|---|---|
| Loans as amortised cost (CM) | 777 | 39 | -77 | 739 |
| Loans as amortised cost (RM) | 68 | 21 | -0 | 89 |
| Loans at fair value over OCI (RM) | 137 | 12 | - | 149 |
| Loans at fair value over OCI (CM) | 13 | -9 | - | 4 |
| Provision for expected credit losses on loans and guarantees | 995 | 63 | -77 | 981 |
| Presented as | ||||
| Provision for loan losses | 907 | 18 | -77 | 848 |
| Other debt- provisons | 53 | 50 | - | 102 |
| Other comprehensive income - fair value adjustment | 36 | -4 | - | 31 |
Accrual for losses on loans
Parent bank
| 30/06/2025 | 30/06/2024 | 31/12/2024 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (NOKm) | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total |
| Retail market | ||||||||||||
| Opening balance 1) | 22 | 53 | 44 | 119 | 38 | 95 | 45 | 179 | 38 | 95 | 45 | 179 |
| Transfer to (from) stage 1 | 8 | -8 | -0 | - | 16 | -16 | -0 | - | 16 | -16 | -0 | - |
| Transfer to (from) stage 2 | -1 | 1 | -0 | - | -2 | 2 | -1 | - | -4 | 5 | -1 | - |
| Transfer to (from) stage 3 | -0 | -4 | 4 | - | -1 | -6 | 7 | - | -1 | -9 | 10 | - |
| Net remeasurement of loss allowances | -13 | -6 | 0 | -19 | -17 | 32 | 20 | 35 | -16 | 36 | 25 | 45 |
| Originations or purchases | 4 | 4 | 1 | 9 | 9 | 8 | 1 | 18 | 14 | 20 | 2 | 36 |
| Derecognitions | -4 | -9 | -1 | -14 | -7 | -15 | -3 | -25 | -12 | -26 | -5 | -42 |
| Changes due to changed input assumptions | 5 | 22 | -3 | 24 | -1 | -6 | -0 | -7 | 1 | -3 | -4 | -6 |
| Actual loan losses | - | - | -2 | -2 | - | - | - | - | - | - | -0 | -0 |
| Closing balance | 21 | 53 | 43 | 116 | 36 | 95 | 69 | 200 | 36 | 103 | 72 | 211 |
| Corporate market | ||||||||||||
| Opening balance 1) | 169 | 328 | 180 | 678 | 160 | 267 | 205 | 633 | 160 | 267 | 205 | 633 |
| Transfer to (from) stage 1 | 30 | -30 | -0 | - | 35 | -35 | -0 | - | 29 | -29 | -0 | - |
| Transfer to (from) stage 2 | -11 | 14 | -3 | - | -6 | 8 | -2 | - | -9 | 11 | -2 | - |
| Transfer to (from) stage 3 | -0 | -8 | 8 | - | -7 | -2 | 8 | - | -7 | -19 | 26 | - |
| Net remeasurement of loss allowances | -57 | 16 | 23 | -18 | -39 | 77 | 24 | 62 | -23 | 90 | -49 | 18 |
| Originations or purchases | 42 | 22 | 0 | 64 | 41 | 17 | 6 | 64 | 70 | 57 | 3 | 131 |
| Derecognitions | -22 | -51 | -6 | -78 | -22 | -80 | -13 | -115 | -60 | -108 | -14 | -181 |
| Changes due to changed input assumptions | 3 | 54 | 13 | 70 | -5 | 8 | -8 | -5 | -7 | 8 | 14 | 15 |
| Actual loan losses | - | - | -35 | -35 | - | - | -11 | -11 | - | - | -31 | -31 |
| Closing balance | 154 | 345 | 182 | 681 | 157 | 261 | 210 | 628 | 155 | 278 | 152 | 585 |
| Total accrual for loan losses | 174 | 397 | 225 | 797 | 193 | 356 | 279 | 828 | 191 | 382 | 224 | 796 |
1) The opening balance as of 01/01/25 is adjusted to match the closing balance as of 31/12/24 due to the transfer of the Agriculture segment from RM to CM. This change took effect from 01/01/25, and historical figures have not been restated.
41
Group
| 30/06/2025 | 30/06/2024 | 31/12/2024 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (NOKm) | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total |
| Retail market | ||||||||||||
| Opening balance 1) | 28 | 66 | 45 | 139 | 46 | 111 | 46 | 204 | 46 | 111 | 46 | 204 |
| Transfer to (from) stage 1 | 10 | -10 | -0 | - | 21 | -21 | -0 | - | 19 | -19 | -1 | - |
| Transfer to (from) stage 2 | -1 | 1 | -1 | - | -2 | 3 | -1 | - | -5 | 6 | -1 | - |
| Transfer to (from) stage 3 | -0 | -5 | 5 | - | -1 | -7 | 9 | - | -1 | -11 | 12 | - |
| Net remeasurement of loss allowances | -15 | -4 | -0 | -19 | -20 | 35 | 19 | 34 | -19 | 41 | 25 | 47 |
| Originations or purchases | 5 | 4 | 1 | 11 | 11 | 9 | 1 | 21 | 17 | 23 | 2 | 42 |
| Derecognitions | -5 | -10 | -1 | -16 | -8 | -17 | -3 | -28 | -14 | -29 | -5 | -48 |
| Changes due to changed input assumptions | 2 | 19 | 1 | 22 | -3 | -9 | -0 | -12 | -1 | -7 | -4 | -13 |
| Actual loan losses | - | - | -2 | -2 | - | - | - | - | - | - | -0 | -0 |
| Closing balance | 25 | 61 | 48 | 135 | 44 | 105 | 70 | 219 | 43 | 116 | 73 | 232 |
| Corporate market | ||||||||||||
| Opening balance 1) | 181 | 363 | 196 | 740 | 172 | 299 | 268 | 739 | 172 | 299 | 268 | 739 |
| Transfer to (from) stage 1 | 33 | -33 | -0 | - | 37 | -37 | -0 | - | 34 | -33 | -0 | - |
| Transfer to (from) stage 2 | -12 | 15 | -3 | - | -7 | 9 | -2 | - | -10 | 13 | -3 | - |
| Transfer to (from) stage 3 | -0 | -8 | 9 | - | -7 | -3 | 10 | - | -7 | -20 | 27 | - |
| Net remeasurement of loss allowances | -58 | 26 | 28 | -4 | -39 | 83 | 26 | 69 | -25 | 98 | -46 | 27 |
| Originations or purchases | 46 | 26 | 1 | 73 | 44 | 22 | 6 | 72 | 75 | 70 | 4 | 149 |
| Derecognitions | -22 | -52 | -6 | -80 | -24 | -82 | -13 | -119 | -62 | -112 | -14 | -188 |
| Changes due to changed input assumptions | 2 | 47 | 3 | 53 | -6 | 2 | -10 | -14 | -10 | -1 | 9 | -2 |
| Actual loan losses | - | - | -37 | -37 | - | - | -12 | -12 | - | - | -77 | -77 |
| Closing balance | 169 | 384 | 191 | 744 | 170 | 293 | 272 | 735 | 166 | 313 | 168 | 647 |
| Total accrual for loan losses | 194 | 445 | 240 | 879 | 214 | 398 | 343 | 955 | 209 | 429 | 241 | 879 |
1) The opening balance as of 01/01/25 is adjusted to match the closing balance as of 31/12/24 due to the transfer of the Agriculture segment from RM to CM. This change took effect from 01/01/25, and historical figures have not been restated.
Accrual for losses on guarantees and unused credit lines
Parent bank and Group
| 30/06/2025 | 30/06/2024 | 31/12/2024 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (NOKm) | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total |
| Opening balance | 26 | 26 | 50 | 102 | 18 | 27 | 8 | 53 | 18 | 27 | 8 | 53 |
| Transfer to (from) stage 1 | 2 | -2 | -0 | - | 11 | -11 | -0 | - | 12 | -12 | -0 | - |
| Transfer to (from) stage 2 | -1 | 2 | -0 | - | -0 | 1 | -0 | - | -1 | 1 | -0 | - |
| Transfer to (from) stage 3 | -0 | -1 | 1 | - | -0 | -0 | 1 | - | -0 | -0 | 1 | - |
| Net remeasurement of loss allowances | -9 | -7 | -6 | -22 | -13 | 0 | 30 | 18 | -11 | 9 | 44 | 41 |
| Originations or purchases | 9 | 1 | 0 | 11 | 11 | 3 | 0 | 14 | 18 | 4 | 2 | 23 |
| Derecognitions | -2 | -2 | -0 | -5 | -3 | -2 | -0 | -5 | -6 | -4 | -2 | -12 |
| Changes due to changed input assumptions | -1 | 6 | 0 | 5 | -0 | 1 | -0 | 1 | -3 | 2 | -2 | -3 |
| Actual loan losses | - | - | - | - | - | - | - | - | - | - | - | - |
| Closing balance | 23 | 24 | 45 | 92 | 23 | 18 | 38 | 80 | 26 | 26 | 50 | 102 |
| Of which | ||||||||||||
| Retail market | 5 | 1 | 6 | |||||||||
| Corporate Market | 87 | 78 | 96 |
Provision for credit losses specified by industry
Parent bank
| 30/06/2025 | 30/06/2024 | 31/12/2024 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (NOKm) | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | ||
| Agriculture and forestry | 2 | 50 | 20 | 72 | 3 | 43 | 25 | 71 | 2 | 49 | 28 | 80 | ||
| Fisheries and hunting | 6 | 64 | 17 | 87 | 6 | 78 | 0 | 84 | 9 | 65 | 18 | 92 | ||
| Sea farming industries | 8 | 15 | 10 | 34 | 8 | 0 | 8 | 16 | 7 | 2 | 1 | 9 | ||
| Manufacturing | 7 | 33 | 12 | 52 | 13 | 33 | 25 | 71 | 11 | 26 | 14 | 51 | ||
| Construction, power and water supply | 23 | 35 | 44 | 102 | 26 | 25 | 29 | 80 | 28 | 37 | 43 | 108 | ||
| Retail trade, hotels and restaurants | 16 | 35 | 2 | 52 | 17 | 24 | 11 | 51 | 14 | 34 | 14 | 63 | ||
| Maritime sector | 5 | 1 | 25 | 30 | 7 | 11 | 101 | 119 | 3 | 2 | 25 | 30 | ||
| Property management | 45 | 84 | 23 | 152 | 39 | 58 | 19 | 116 | 41 | 86 | 28 | 156 | ||
| Business services | 21 | 24 | 23 | 68 | 23 | 24 | 5 | 51 | 22 | 22 | 2 | 46 | ||
| Transport and other services | 14 | 6 | 2 | 22 | 18 | 11 | 8 | 37 | 22 | 7 | 3 | 32 | ||
| Public administration | 0 | 0 | - | 0 | 0 | - | - | 0 | 0 | 0 | - | 0 | ||
| Other sectors | 1 | 0 | - | 1 | 1 | 1 | 0 | 2 | 1 | 0 | 0 | 1 | ||
| Wage earners | 1 | 50 | 48 | 99 | 1 | 48 | 48 | 97 | 1 | 50 | 48 | 99 | ||
| Total provision for losses on loans | 147 | 397 | 225 | 769 | 160 | 356 | 279 | 795 | 160 | 382 | 224 | 765 | ||
| Loan loss allowance on loans at FVOCI | 27 | - | - | 27 | 33 | - | - | 33 | 31 | - | - | 31 | ||
| Total loan loss allowance | 174 | 397 | 225 | 797 | 193 | 356 | 279 | 828 | 191 | 382 | 224 | 796 |
Group
| 30/06/2025 | 30/06/2024 | 31/12/2024 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (NOKm) | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total |
| Agriculture and forestry | 3 | 52 | 20 | 75 | 3 | 44 | 26 | 74 | 3 | 51 | 29 | 83 |
| Fisheries and hunting | 6 | 64 | 17 | 87 | 6 | 78 | 0 | 85 | 9 | 65 | 18 | 92 |
| Sea farming industries | 9 | 16 | 11 | 37 | 8 | 0 | 8 | 17 | 8 | 2 | 2 | 11 |
| Manufacturing | 9 | 39 | 13 | 61 | 16 | 36 | 28 | 80 | 13 | 31 | 17 | 61 |
| Construction, power and water supply | 23 | 52 | 46 | 121 | 27 | 45 | 31 | 103 | 28 | 55 | 45 | 129 |
| Retail trade, hotels and restaurants | 19 | 38 | 4 | 61 | 19 | 26 | 11 | 56 | 17 | 36 | 14 | 67 |
| Maritime sector | 5 | 1 | 25 | 30 | 7 | 11 | 101 | 119 | 3 | 2 | 25 | 30 |
| Property management | 45 | 85 | 23 | 153 | 39 | 58 | 19 | 117 | 41 | 87 | 28 | 156 |
| Business services | 24 | 28 | 27 | 79 | 25 | 25 | 60 | 111 | 24 | 24 | 10 | 58 |
| Transport and other services | 17 | 12 | 4 | 33 | 20 | 15 | 9 | 45 | 25 | 13 | 4 | 42 |
| Public administration | 0 | 0 | - | 0 | 0 | 0 | - | 0 | 0 | 0 | - | 0 |
| Other sectors | 1 | 0 | 0 | 1 | 1 | 1 | 0 | 2 | 1 | 0 | 0 | 1 |
| Wage earners | 7 | 58 | 49 | 114 | 8 | 58 | 49 | 115 | 7 | 62 | 49 | 117 |
| Total provision for losses on loans | 167 | 445 | 240 | 852 | 181 | 398 | 343 | 922 | 178 | 429 | 241 | 848 |
| Loan loss allowance on loans at FVOCI | 27 | - | - | 27 | 33 | - | - | 33 | 31 | - | - | 31 |
| Total loan loss allowance | 194 | 445 | 240 | 879 | 214 | 398 | 343 | 955 | 209 | 429 | 241 | 879 |
Note 8: Gross loans
Parent bank
| 30/06/2025 | 30/06/2024 | 31/12/2024 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (NOKm) | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total |
| Retail Market | ||||||||||||
| Opening balance 1) | 80,631 | 3,410 | 736 | 84,777 | 90,901 | 4,553 | 725 | 96,178 | 90,901 | 4,553 | 725 | 96,178 |
| Transfer to stage 1 | 924 | -880 | -44 | - | 1,024 | -1,009 | -15 | - | 986 | -955 | -32 | - |
| Transfer to stage 2 | -932 | 970 | -38 | - | -1,415 | 1,457 | -41 | - | -1,808 | 1,852 | -44 | - |
| Transfer to stage 3 | -31 | -103 | 134 | - | -51 | -146 | 197 | - | -125 | -211 | 336 | - |
| Net increase/decrease amount existing loans | -1,331 | -43 | -13 | -1,387 | -1,585 | -34 | -7 | -1,626 | -2,207 | -94 | -37 | -2,337 |
| New loans | 24,739 | 511 | 70 | 25,320 | 27,414 | 609 | 183 | 28,206 | 44,893 | 1,607 | 360 | 46,860 |
| Derecognitions | -20,010 | -729 | -110 | -20,849 | -24,225 | -1,010 | -171 | -25,405 | -41,895 | -2,003 | -320 | -44,218 |
| Financial assets with actual loan losses | - | - | -3 | -3 | - | -0 | -1 | -1 | - | - | -1 | -1 |
| Closing balance | 83,990 | 3,135 | 732 | 87,857 | 92,063 | 4,419 | 870 | 97,351 | 90,744 | 4,749 | 988 | 96,481 |
| Corporate Market | ||||||||||||
| Opening balance 1) | 62,596 | 7,876 | 1,258 | 71,730 | 47,327 | 6,988 | 1,165 | 55,480 | 47,327 | 6,988 | 1,165 | 55,480 |
| Transfer to stage 1 | 992 | -979 | -14 | - | 1,208 | -1,206 | -2 | - | 1,259 | -1,258 | -1 | - |
| Transfer to stage 2 | -1,942 | 1,963 | -20 | - | -1,615 | 1,758 | -143 | - | -2,487 | 2,631 | -144 | - |
| Transfer to stage 3 | -48 | -90 | 138 | - | -24 | -27 | 51 | - | -44 | -342 | 386 | - |
| Net increase/decrease amount existing loans | -2,781 | -69 | -60 | -2,911 | -622 | -82 | -23 | -727 | -1,780 | -253 | 0 | -2,033 |
| New loans | 12,201 | 633 | 195 | 13,030 | 11,581 | 642 | 182 | 12,405 | 19,037 | 971 | 272 | 20,281 |
| Derecognitions | -9,109 | -946 | -313 | -10,368 | -7,465 | -1,822 | -446 | -9,734 | -10,827 | -2,202 | -627 | -13,655 |
| Financial assets with actual loan losses | -0 | -2 | -45 | -47 | - | 0 | -15 | -15 | - | - | -46 | -46 |
| Closing balance | 61,910 | 8,386 | 1,140 | 71,435 | 50,391 | 6,249 | 770 | 57,410 | 52,484 | 6,536 | 1,006 | 60,026 |
| Closing balance amortized cost and FV through P&L | 145,900 | 11,521 | 1,872 | 159,293 | 142,453 | 10,668 | 1,640 | 154,761 | 143,228 | 11,286 | 1,994 | 156,508 |
| Fixed interest loans at FV | 10,360 | 5,984 | 10,570 | |||||||||
| Total gross loans at the end of the period | 169,653 | 160,745 | 167,077 |
1) The opening balance as of 01/01/25 is adjusted to match the closing balance as of 31/12/24 due to the transfer of the Agriculture segment from RM to CM. This change took effect from 01/01/25, and historical figures have not been restated.
Group
| 30/06/2025 | 30/06/2024 | 31/12/2024 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (NOKm) | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | |
| Retail Market | |||||||||||||
| Opening balance 1) | 86,807 | 4,358 | 855 | 92,021 | 96,963 | 5,474 | 825 | 103,263 | 96,963 | 5,474 | 825 | 103,263 | |
| Transfer to stage 1 | 1,161 | -1,113 | -48 | - | 1,387 | -1,368 | -18 | - | 1,229 | -1,193 | -36 | - | |
| Transfer to stage 2 | -1,179 | 1,230 | -52 | - | -1,635 | 1,682 | -47 | - | -2,267 | 2,322 | -55 | - | |
| Transfer to stage 3 | -40 | -159 | 198 | - | -68 | -197 | 264 | - | -152 | -267 | 419 | - | |
| Net increase/decrease amount existing loans | -1,275 | -67 | -17 | -1,359 | -1,558 | -51 | -12 | -1,622 | -2,191 | -170 | -52 | -2,414 | |
| New loans | 26,536 | 570 | 73 | 27,179 | 29,187 | 659 | 185 | 30,031 | 47,975 | 1,825 | 371 | 50,171 | |
| Derecognitions | -21,078 | -902 | -166 | -22,146 | -25,795 | -1,137 | -198 | -27,130 | -44,637 | -2,293 | -364 | -47,294 | |
| Financial assets with actual loan losses | - | - | -3 | -3 | - | -0 | -1 | -1 | - | - | -1 | -1 | |
| Closing balance | 90,934 | 3,918 | 840 | 95,692 | 98,480 | 5,062 | 997 | 104,540 | 96,920 | 5,698 | 1,107 | 103,725 | |
| Corporate Market | |||||||||||||
| Opening balance 1) | 66,375 | 9,864 | 1,375 | 77,614 | 51,327 | 8,533 | 1,259 | 61,119 | 51,327 | 8,533 | 1,259 | 61,119 | |
| Transfer to stage 1 | 1,209 | -1,194 | -15 | - | 1,317 | -1,309 | -7 | - | 1,419 | -1,412 | -6 | - | |
| Transfer to stage 2 | -2,196 | 2,226 | -30 | - | -1,800 | 1,947 | -148 | - | -2,835 | 2,995 | -161 | - | |
| Transfer to stage 3 | -55 | -125 | 180 | - | -45 | -66 | 111 | - | -79 | -378 | 458 | - | |
| Net increase/decrease amount existing loans | -2,770 | -95 | -63 | -2,928 | -659 | -99 | -28 | -786 | -1,867 | -286 | -14 | -2,167 | |
| New loans | 12,932 | 853 | 202 | 13,987 | 12,348 | 895 | 188 | 13,431 | 20,250 | 1,664 | 304 | 22,218 | |
| Derecognitions | -10,044 | -1,234 | -308 | -11,586 | -8,037 | -2,074 | -470 | -10,581 | -11,953 | -2,591 | -670 | -15,214 | |
| Financial assets with actual loan losses | -0 | -2 | -45 | -47 | - | 0 | -15 | -15 | - | - | -46 | -46 | |
| Closing balance | 65,451 | 10,294 | 1,295 | 77,040 | 54,451 | 7,827 | 891 | 63,169 | 56,263 | 8,524 | 1,123 | 65,910 | |
| Closing balance amortized cost and FV through P&L | 156,385 | 14,212 | 2,136 | 172,733 | 152,932 | 12,889 | 1,888 | 167,709 | 153,182 | 14,222 | 2,231 | 169,635 | |
| Fixed interest loans at FV | 10,257 | 5,732 | 10,467 | ||||||||||
| Total gross loans at the end of the period | 182,990 | 173,440 | 180,102 |
1) The opening balance as of 01/01/25 is adjusted to match the closing balance as of 31/12/24 due to the transfer of the Agriculture segment from RM to CM. This change took effect from 01/01/25, and historical figures have not been restated.
47
Note 9: Distribution of customer deposits by sector/industry
| Parent bank | Group | |||||
|---|---|---|---|---|---|---|
| 31/12/2024 | 30/06/2024 | 30/06/2025 | (NOKm) | 30/06/2025 | 30/06/2024 | 31/12/2024 |
| 2,638 | 2,888 | 3,093 | Agriculture and forestry | 3,093 | 2,888 | 2,638 |
| 1,658 | 1,172 | 1,500 | Fisheries and hunting | 1,500 | 1,172 | 1,658 |
| 1,538 | 846 | 905 | Sea farming industries | 905 | 846 | 1,538 |
| 3,041 | 2,382 | 3,182 | Manufacturing | 3,182 | 2,382 | 3,041 |
| 3,833 | 3,846 | 3,518 Construction, power and water supply | 3,518 | 3,846 | 3,833 | |
| 5,707 | 5,000 | 4,866 Retail trade, hotels and restaurants | 4,866 | 5,000 | 5,707 | |
| 1,373 | 1,444 | 1,110 | Maritime sector | 1,110 | 1,444 | 1,373 |
| 7,503 | 7,296 | 8,594 | Property management | 8,507 | 7,209 | 7,413 |
| 13,004 | 12,504 | 13,229 | Business services | 13,229 | 12,504 | 13,004 |
| 14,119 | 12,885 | 11,857 Transport and other services provision | 11,499 | 12,482 | 13,641 | |
| 16,535 | 21,506 | 19,893 | Public administration | 19,893 | 21,506 | 16,535 |
| 7,954 | 6,243 | 9,064 | Other sectors | 9,047 | 6,224 | 7,933 |
| 78,904 | 78,013 | 80,810 Total corporate | 80,349 | 77,504 | 78,316 | |
| 62,581 | 62,157 | 69,098 | Wage earners | 69,098 | 62,157 | 62,581 |
| 141,485 | 140,170 | 149,908 Total deposits | 149,446 | 139,661 | 140,897 |
Note 10: Net interest income
| Parent bank | Group | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2nd quarter | First half | First half | 2nd quarter | |||||||
| 2024 | 2024 | 2025 | 2024 | 2025 | (NOKm) | 2025 | 2024 | 2025 | 2024 | 2024 |
| Interest income | ||||||||||
| 1,045 | 260 | 298 | 496 | 572 | Interest income from loans to and claims on central banks and credit institutions (amortised cost) |
274 | 199 | 148 | 107 | 443 |
| 5,621 | 1,370 | 1,430 | 2,731 | 2,818 | Interest income from loans to and claims on customers (amortised cost) | 3,386 | 3,293 | 1,715 | 1,655 | 6,763 |
| 4,456 | 1,112 | 1,092 | 2,209 | 2,178 | Interest income from loans to and claims on customers (FVOCI) | 2,178 | 2,209 | 1,092 | 1,112 | 4,456 |
| 269 | 54 | 107 | 104 | 212 | Interest income from loans to and claims on customers (FVPL) | 212 | 104 | 107 | 54 | 269 |
| 1,614 | 392 | 428 | 797 | 836 | Interest income from money market instruments, bonds and other fixed income securities |
833 | 793 | 426 | 390 | 1,606 |
| - | - | - | - | - | Other interest income | 12 | 12 | 6 | 6 | 24 |
| 13,005 | 3,189 | 3,355 | 6,336 | 6,616 | Total interest income | 6,895 | 6,608 | 3,494 | 3,325 | 13,560 |
| Interest expense | ||||||||||
| 628 | 162 | 142 | 331 | 279 | Interest expenses on liabilities to credit institutions | 279 | 331 | 142 | 162 | 628 |
| 4,949 | 1,223 | 1,349 | 2,389 | 2,628 | Interest expenses relating to deposits from and liabilities to customers | 2,610 | 2,369 | 1,340 | 1,210 | 4,900 |
| 2,324 | 558 | 594 | 1,100 | 1,187 | Interest expenses related to the issuance of securities | 1,187 | 1,100 | 594 | 558 | 2,324 |
| 175 | 44 | 43 | 84 | 86 | Interest expenses on subordinated debt | 89 | 88 | 44 | 46 | 180 |
| 12 | 3 | 3 | 6 | 7 | Other interest expenses | 30 | 28 | 17 | 16 | 62 |
| 93 | 23 | 22 | 47 | 44 | Guarantee fund levy | 44 | 47 | 22 | 23 | 93 |
| 8,180 | 2,014 | 2,154 | 3,957 | 4,231 | Total interest expense | 4,239 | 3,963 | 2,159 | 2,016 | 8,187 |
| 4,824 | 1,175 | 1,202 | 2,380 | 2,386 | Net interest income | 2,657 | 2,646 | 1,335 | 1,309 | 5,373 |
Note 11: Net commission income and other income
| Parent bank | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2nd quarter First half |
2nd quarter | |||||||||
| 2024 | 2024 | 2025 | 2024 | 2025 | (NOKm) | 2025 | 2024 | 2025 | 2024 | 2024 |
| Commission income | ||||||||||
| 73 | 19 | 24 | 36 | 43 | Guarantee commission | 43 | 36 | 24 | 19 | 73 |
| - | - | - | - | - | Broker commission | 175 | 163 | 101 | 92 | 304 |
| 62 | 15 | 27 | 30 | 41 | Portfolio commission, savings products | 41 | 30 | 27 | 15 | 62 |
| 272 | 78 | 101 | 136 | 185 | Commission from SpareBank 1 Boligkreditt | 185 | 136 | 101 | 78 | 272 |
| 14 | 4 | 4 | 7 | 7 | Commission from SpareBank 1 Næringskreditt | 7 | 7 | 4 | 4 | 14 |
| 550 | 133 | 125 | 256 | 241 | Payment transmission services | 240 | 254 | 124 | 132 | 546 |
| 263 | 65 | 76 | 128 | 147 | Commission from insurance services | 147 | 128 | 76 | 65 | 263 |
| 80 | 24 | 19 | 41 | 41 | Other commission income | 37 | 39 | 17 | 23 | 76 |
| 1,315 | 336 | 375 | 635 | 705 | Total commission income | 875 | 794 | 473 | 427 | 1,611 |
| Commission expenses | ||||||||||
| 120 | 24 | 35 | 52 | 57 | Payment transmission services | 58 | 52 | 35 | 24 | 121 |
| 15 | 4 | 4 | 7 | 9 | Other commission expenses | 52 | 51 | 27 | 28 | 103 |
| 135 | 27 | 39 | 59 | 66 | Total commission expenses | 110 | 103 | 62 | 51 | 224 |
| Other operating income | ||||||||||
| 45 | 11 | 12 | 22 | 24 | Operating income real property | 20 | 20 | 10 | 10 | 41 |
| - | - | - | - | - | Property administration and sale of property | 122 | 103 | 72 | 59 | 201 |
| - | - | - | - | - | Accountant's fees | 457 | 428 | 232 | 228 | 733 |
| 21 | 5 | 3 | 13 | 8 | Other operating income | 13 | 19 | 5 | 8 | 32 |
| 65 | 17 | 15 | 35 | 31 | Total other operating income | 612 | 569 | 319 | 305 | 1,006 |
| 1,245 | 325 | 351 | 611 | 670 | Total net commission income and other operating income | 1,378 | 1,259 | 730 | 681 | 2,392 |
Note 12: Operating expenses
| Parent bank | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2nd quarter First half |
First half | 2nd quarter | ||||||||
| 2024 | 2024 | 2025 | 2024 | 2025 | (NOKm) | 2025 | 2024 | 2025 | 2024 | 2024 |
| 338 | 90 | 139 | 181 | 229 | IT costs 1) | 270 | 219 | 161 | 109 | 410 |
| 11 | 4 | 2 | 7 | 5 | Postage and transport of valuables | 6 | 8 | 2 | 5 | 13 |
| 84 | 19 | 18 | 39 | 37 | Marketing | 48 | 51 | 24 | 25 | 104 |
| 138 | 33 | 35 | 70 | 70 | Ordinary depreciation | 93 | 91 | 47 | 44 | 183 |
| 51 | 12 | 12 | 24 | 28 | Operating expenses, real estate | 27 | 24 | 11 | 12 | 48 |
| 252 | 54 | 58 | 114 | 105 | Purchased services | 138 | 139 | 74 | 65 | 298 |
| 211 | 50 | 61 | 71 | 111 | Other operating expense | 135 | 89 | 72 | 57 | 262 |
| 1,084 | 262 | 325 | 506 | 585 | Total other operating expenses | 717 | 622 | 391 | 316 | 1,319 |
1) The Court of Appeal delivered its judgment on 3 June 2025 in the case between SpareBank 1 Utvikling DA and Tietoevry Norway AS. The judgment entails an adjustment to the fixed price paid by the banks in the SpareBank 1 Alliance, amounting to approximately NOK 100 million per year. In the second quarter of 2025, SpareBank 1 SMN made a provision of NOK 47 million for the accrued cost for the period from 2023 to the second quarter of 2025.
51
Note 13: Net return on financial investments
| Parent bank | Group | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2nd quarter | First half | First half | 2nd quarter | |||||||||
| 2024 | 2024 | 2025 | 2024 | 2025 | (NOKm) | 2025 | 2024 | 2025 | 2024 | 2024 | ||
| Valued at fair value through profit and loss | ||||||||||||
| -291 | -37 | 139 | -163 | 126 | Value change in interest rate instruments | 126 | -163 | 139 | -39 | -293 | ||
| Value change in derivatives/hedging | ||||||||||||
| 8 | -2 | -11 | 4 | -13 | Net value change in hedged bonds and derivatives 1) | -13 | 4 | -11 | -2 | 8 | ||
| 27 | 13 | -1 | 25 | 20 | Net value change in hedged fixed rate loans and derivatives | 20 | 25 | -1 | 13 | 27 | ||
| 142 | 11 | -130 | 107 | -175 | Other derivatives | -175 | 107 | -130 | 11 | 142 | ||
| Income from equity instruments | ||||||||||||
| - | - | - | - | - | Income from ownership interests | 462 | 342 | 271 | 148 | 1,254 | ||
| 318 | 133 | 419 | 242 | 733 | Dividend from ownership interests | - | - | - | - | - | ||
| 1 | - | - | 1 | - | Value change and gain/loss on owner instruments | -0 | 1 | - | - | 1 | ||
| 43 | 8 | 7 | 14 | 12 | Dividend from equity instruments | 9 | 8 | 4 | 6 | 33 | ||
| 60 | 5 | 15 | 16 | 40 | Value change and gain/loss on equity instruments | 47 | 45 | 22 | 4 | 87 | ||
| 308 | 131 | 439 | 247 | 743 | Total net income from financial assets and liabilities at FV through P&L | 476 | 369 | 295 | 141 | 1,259 | ||
| Valued at amortized cost | ||||||||||||
| -2 | -0 | -0 | 0 | -1 | Value change in interest rate instruments held to maturity | -1 | 0 | -0 | -0 | -2 | ||
| -2 | -0 | -0 | 0 | -1 | Total net income from financial assets and liabilities at amortised cost | -1 | 0 | -0 | -0 | -2 | ||
| 99 | 11 | -7 | 34 | -8 | Total net gain from currency trading | -8 | 34 | -7 | 11 | 100 | ||
| 406 | 142 | 432 | 280 | 735 | Total net return on financial investments | 467 | 404 | 288 | 153 | 1,357 | ||
| 1) Fair value hedging | ||||||||||||
| 513 | 1 | 273 | -184 | 313 | Changes in fair value on hedging instrument | 313 | -184 | 273 | 1 | 513 | ||
| -505 | -4 | -284 | 187 | -326 | Changes in fair value on hedging item | -326 | 187 | -284 | -4 | -505 | ||
| 8 | -2 | -11 | 4 | -13 | Net gain or loss from hedge accounting | -13 | 4 | -11 | -2 | 8 |
Note 14: Other assets
| Parent bank | Group | |||||
|---|---|---|---|---|---|---|
| 31/12/2024 | 30/06/2024 | 30/06/2025 | (NOKm) | 30/06/2025 | 30/06/2024 | 31/12/2024 |
| - | - | - | Deferred tax asset | 1 | 6 | 1 |
| 188 | 177 | 197 | Fixed assets | 297 | 282 | 290 |
| 297 | 318 | 275 | Right-of-use assets | 429 | 472 | 447 |
| 187 | 148 | 149 | Earned income not yet received | 185 | 190 | 211 |
| 221 | 1,020 | 1,655 | Accounts receivable, securities | 1,655 | 1,020 | 221 |
| 296 | 221 | 296 | Pension assets | 296 | 221 | 296 |
| 408 | 511 | 201 | Other assets | 674 | 936 | 722 |
| 1,599 | 2,394 | 2,773 | Total other assets | 3,537 | 3,127 | 2,189 |
Note 15: Other liabilities
| Parent bank | Group | |||||
|---|---|---|---|---|---|---|
| 31/12/2024 | 30/06/2024 | 30/06/2025 | (NOKm) | 30/06/2025 | 30/06/2024 | 31/12/2024 |
| 202 | 158 | 202 | Deferred tax | 290 | 216 | 290 |
| 958 | 476 | 620 | Payable tax | 695 | 546 | 1,042 |
| 30 | 22 | 30 | Capital tax | 30 | 22 | 30 |
| 178 | 150 | 140 | Accrued expenses and received, non-accrued income | 495 | 498 | 541 |
| 378 | 477 | 475 | Provision for accrued expenses and commitments | 475 | 477 | 378 |
| 101 | 79 | 91 | Losses on guarantees and unutilised credits | 91 | 79 | 101 |
| 8 | 9 | 8 | Pension liabilities | 8 | 9 | 8 |
| 307 | 326 | 286 | Lease liabilities | 445 | 483 | 460 |
| 1 | 4 | 1 | Drawing debt | 1 | 4 | 1 |
| 76 | 32 | 13 | Creditors | 57 | 81 | 149 |
| 251 | 1,004 | 1,245 | Debt from securities | 1,245 | 1,004 | 251 |
| 183 | 349 | 667 | Other liabilities | 773 | 444 | 276 |
| 2,673 | 3,085 | 3,780 | Total other liabilites | 4,605 | 3,863 | 3,527 |
Note 16: Debt created by issue of securities and subordinated debt
Group
| Change in securities debt (NOKm) | 01/01/2025 | Issued | Fallen due/ Redeemed |
Other changes |
30/06/2025 |
|---|---|---|---|---|---|
| Bond debt, nominal value | 37,204 | - | 1,014 | 65 | 36,255 |
| Value adjustments | -878 | 262 | -615 | ||
| Accrued interest | 244 | 15 | 259 | ||
| Total | 36,570 | - | 1,014 | 343 | 35,898 |
| Change in Senior Non-preferred debt (NOKm) | 01/01/2025 | Issued | Fallen due/ Redeemed |
Other changes |
30/06/2025 |
|---|---|---|---|---|---|
| Senior non preferred, nominal value | 13,386 | 1,400 | 71 | -48 | 14,667 |
| Value adjustments | -167 | 97 | -71 | ||
| Accrued interest | 134 | -7 | 126 | ||
| Total | 13,352 | 1,400 | 71 | 42 | 14,723 |
| Change in subordinated debt (NOKm) | 01/01/2025 | Issued | Fallen due/ Redeemed |
Other changes |
30/06/2025 |
|---|---|---|---|---|---|
| Ordinary subordinated loan capital, nominal value | 2,728 | 100 | - | - | 2,828 |
| Value adjustments | - | - | |||
| Accrued interest | 7 | 15 | 21 | ||
| Total | 2,735 | 100 | - | 15 | 2,850 |
55
Note 17: Measurement of fair value of financial instruments
Financial instruments at fair value are classified at various levels.
Level 1: Valuation based on quoted prices in an active market
Fair value of financial instruments that are traded in the active markets is based on market price on the balance sheet date. A market is considered active if market prices are easily and regularly available from a stock exchange, dealer, broker, industry group, price-setting service or regulatory authority, and these prices represent actual and regularly occurring market transactions at an arm's length. This category also includes quoted shares and Treasury bills.
Level 2: Valuation based on observable market data
Consists of instruments that are valued by the use of information that does not consist in quoted prices, but where the prices are directly or indirectly observable for the assets or liabilities concerned, and which also include quoted prices in non-active markets.
Level 3: Valuation based on other than observable data
If valuation data are not available for level 1 and 2, valuation methods are applied that are based on non-observable information.
Group's assets and liabilities measured at fair value at 30 June 2025:
| Assets (NOKm) | Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|
| Financial assets at FV through P&L | ||||
| - Derivatives | - | 6,093 | - | 6,093 |
| - Bonds and money market certificates | 3,170 | 32,889 | - | 36,059 |
| - Equity instruments | 272 | 101 | 647 | 1,020 |
| - Fixed interest loans | - | 10,259 | 10,259 | |
| Financial assets through other comprehensive income | ||||
| - Loans at fair value through other comprehensive income |
- | - | 96,175 | 96,175 |
| Total assets | 3,443 | 39,083 | 107,080 | 149,606 |
| Liabilities | ||||
| Financial liabilities at FV through P&L | ||||
| - Derivatives | - | 4,784 | - | 4,784 |
| Total liabilities | - | 4,784 | - | 4,784 |
Group's assets and liabilities measured at fair value at 30 June 2024:
| Assets (NOKm) | Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|
| Financial assets at FV through P&L | ||||
| - Derivatives | - | 6,056 | - | 6,056 |
| - Bonds and money market certificates | 2,706 | 33,542 | - | 36,248 |
| - Equity instruments | 378 | 74 | 671 | 1,122 |
| - Fixed interest loans | - | - | 5,881 | 5,881 |
| Financial assets through other comprehensive income | ||||
| - Loans at fair value through other comprehensive income |
- | - | 93,793 | 93,793 |
| Total assets | 3,084 | 39,672 | 100,345 | 143,101 |
| Liabilities | ||||
| Financial liabilities at FV through P&L | ||||
| - Derivatives | - | 6,316 | - | 6,316 |
| Total liabilities | - | 6,316 | - | 6,316 |
Group's assets and liabilities measured at fair value at 31 December 2024:
| Assets (NOKm) | Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|
| Financial assets at FV through P&L | ||||
| - Derivatives | - | 7,231 | - | 7,231 |
| - Bonds and money market certificates | 2,680 | 33,971 | - | 36,650 |
| - Equity instruments | 280 | 107 | 663 | 1,050 |
| - Fixed interest loans | - | - | 10,468 | 10,468 |
| Financial assets through other comprehensive income | ||||
| - Loans at fair value through other comprehensive income |
- | - | 92,738 | 92,738 |
| Total assets | 2,959 | 41,309 | 103,870 | 148,137 |
| Liabilities | ||||
Financial liabilities at FV through P&L - Derivatives - 6,152 - 6,152 Total liabilities - 6,152 - 6,152
Changes in the instruments classified in level 3 as at 30 June 2025:
| (NOKm) | Equity instruments through profit/loss |
Fixed interest loans | Loans at fair value through OCI |
Total |
|---|---|---|---|---|
| Opening balance | 663 | 10,468 | 92,738 | 103,870 |
| Investment in the period | 21 | 361 | 25,259 | 25,641 |
| Disposals in the period | −43 | −567 | −21,820 | −22,430 |
| Expected credit loss | - | - | 2 | 2 |
| Gain or loss on financial instruments | 7 | −3 | −4 | −1 |
| Closing balance | 647 | 10,258 | 96,175 | 107,081 |
Changes in the instruments classified in level 3 as at 30 June 2024:
| (NOKm) | Equity instruments through profit/loss |
Fixed interest loans | Loans at fair value through OCI |
Total |
|---|---|---|---|---|
| Opening balance | 622 | 5,480 | 92,263 | 98,365 |
| Investment in the period | 21 | 987 | 26,047 | 27,054 |
| Disposals in the period | −1 | −574 | −24,505 | −25,080 |
| Expected credit loss | - | - | −12 | −12 |
| Gain or loss on financial instruments | 29 | −11 | 0 | 18 |
| Closing balance | 671 | 5,881 | 93,793 | 100,345 |
Changes in the instruments classified in level 3 as at 31 December 2024:
| (NOKm) | Equity instruments through profit/loss |
Fixed interest loans | Loans at fair value through OCI |
Total |
|---|---|---|---|---|
| Opening balance | 622 | 5,480 | 92,263 | 98,365 |
| Investment in the period | 38 | 5,995 | 40,293 | 46,327 |
| Disposals in the period | −4 | −814 | −39,808 | −40,626 |
| Expected credit loss | - | - | −6 | −6 |
| Gain or loss on financial instruments | 7 | −194 | −4 | −192 |
| Closing balance | 662 | 10,468 | 92,738 | 103,870 |
Valuation method
The valuation method applied is adapted to each financial instrument, and is intended to utilise as much of the information that is available in the market as possible.
The method for valuation of financial instruments in level 2 and 3 is described in the following:
Fixed interest loans to customers (level 3)
The loans consist for the most part of fixed interest loans denominated in Norwegian kroner. The value of the fixed interest loans is determined such that agreed interest flows are discounted over the term of the loan by a discount factor that is adjusted for margin requirements. The discount factor is raised by 10 points when calculating sensitivity.
Loans at fair value through other comprehensive income (level 3)
Property Loans at floating interest classified at fair value over other comprehensive income is valued based on nominal amount reduced by expected credit loss. Loans with no significant credit risk detoriation since first recognition is assessed at nominal amount. For loans with a significant increase in credit risk since first recognition or objective evidence of loss, the calculation of expected credit losses over the life of the asset is in line with loan losses for loans at amortised cost. Estimated fair value is the nominal amount reduced by expected lifetime credit loss. If the likelihood of the worst case scenario in the model is doubled, fair value is reduced by NOK 3 million.
Short-term paper and bonds (level 2 and 3)
Valuation on level 2 is based for the most part on observable market information in the form of interest rate curves, exchange rates and credit margins for the individual credit and the bond's or certificate's characteristics. For papers valued under level 3 the valuation is based on indicative prices from a third party or comparable paper.
Equity instruments (level 3)
Shares that are classified to level 3 include essentially investments in unquoted shares. Among other a total of NOK 616 million in Private Equity investments, property funds, hedge funds and unquoted shares through the company SpareBank 1 SMN Invest. The valuations are in all essentials based on reporting from managers of the funds who utilise cash flow based models or multiples when determining fair value. The Group does not have full access to information on all the elements in these valuations and is therefore unable to determine alternative assumptions.
Financial derivatives (level 2)
Financial derivatives at level 2 include for the most part currency futures and interest rate and exchange rate swaps. Valuation is based on observable interest rate curves. In addition the item includes derivatives related to FRAs. These are valued with a basis in observable prices in the market. Derivatives classified to level 2 also include equity derivatives related to SpareBank 1 Markets' market-making activities. The bulk of these derivatives refer to the most sold shares on Oslo Børs, and the valuation is based on the price of the actual/underlying share and observable or calculated volatility.
Sensitivity analyses, level 3 as at 30 June 2025:
| (NOKm) | Book value | Effect from change in reasonable possible alternative assumptions |
|---|---|---|
| Fixed interest loans | 10,258 | −22 |
| Equity instruments through profit/loss 1) | 647 | |
| Loans at fair value through other comprehensive income | 96,175 | −3 |
1) As described above, the information to perform alternative calculations are not available
Note 18: Liquidity risk
Liquidity risk is the risk that the Group will be unable to refinance its debt or to finance asset increases. Liquidity risk management starts out from the Group's overall liquidity strategy which is reviewed and adopted by the board of directors at least once each year. The liquidity strategy reflects the Group's moderate risk profile.
The Group reduces its liquidity risk through guidelines and limits designed to achieve a diversified balance sheet, both on the asset and liability side. Preparedness plans have been drawn up both for the Group and the SpareBank 1 Alliance to handle the liquidity situation in periods of turbulent capital markets. The bank's liquidity situation is stress tested on a monthly basis using various maturities and crisis scenarios: bank-specific, for the financial market in general or a combination of internal and external factors. The Group's objective is to survive twelve months of ordinary operations without access to fresh external funding while housing prices fall 30 per cent. In the same period minimum requirements to LCR shall be fulfilled.
The average residual maturity on debt created by issue of securities at the end of the second quarter 2025 was 2.6 years. The overall LCR at the same point was 196 per cent and the average overall LCR in the second quarter was 207 per cent. The LCR in Norwegian kroner and euro at quarter-end was 189 and 1,065 per cent respectively.
Note 19: Earnings per ECC
ECC owners share of profit have been calculated based on net profit allocated in accordance to the average number of certificates outstanding in the period. There is no option agreements in relation to the equity capital certificates, diluted net profit is therefore equivalent to Net profit per ECC.
| First half | |||
|---|---|---|---|
| (NOKm) | 2025 | 2024 | 2024 |
| Adjusted Net Profit to allocate between ECC owners and Savings Bank Reserve 1) | 2,009 | 1,974 | 4,339 |
| Allocated to ECC Owners 2) | 1,342 | 1,319 | 2,899 |
| Issues ECC adjusted for own certificates | 144,179,069 | 144,174,352 | 144,172,426 |
| Earnings per ECC | 9.31 | 9.15 | 20.11 |
| First half | |||
|---|---|---|---|
| 1) Adjusted Net Profit | 2025 | 2024 | 2024 |
| Net Profit for the group | 2,134 | 2,098 | 4,591 |
| Adjusted for non-controlling interests share of net profit | -45 | -54 | -106 |
| Adjusted for Tier 1 capital holders share of net profit | -81 | -70 | -146 |
| Adjusted Net Profit | 2,009 | 1,974 | 4,339 |
| 2) Equity capital certificate ratio (parent bank) | 30/06/2025 | 30/06/2024 | 31/12/2024 |
|---|---|---|---|
| ECC capital | 2,884 | 2,884 | 2,884 |
| Dividend equalisation reserve | 8,719 | 8,480 | 8,721 |
| Premium reserve | 2,422 | 2,422 | 2,422 |
| Unrealised gains reserve | 164 | 71 | 164 |
| Other equity capital | -2 | -1 | 2,478 |
| A. The equity capital certificate owners' capital | 14,187 | 13,856 | 16,669 |
| Ownerless capital | 6,984 | 6,865 | 6,984 |
| Unrealised gains reserve | 81 | 35 | 81 |
| Other equity capital | -1 | -1 | 1,231 |
| B. The saving bank reserve | 7,064 | 6,900 | 8,297 |
| To be disbursed from gift fund | - | - | 896 |
| Dividend declared | - | - | 1,803 |
| Equity ex. profit | 21,251 | 20,756 | 27,664 |
| Equity capital certificate ratio A/(A+B) | 66.8 % |
66.8 % |
66.8 % |
Results from quarterly accounts
| 2Q | 1Q | 4Q | 3Q | 2Q | 1Q | 4Q | 3Q | 2Q | |
|---|---|---|---|---|---|---|---|---|---|
| Group (NOKm) | 2025 | 2025 | 2024 | 2024 | 2024 | 2024 | 2023 | 2023 | 2023 |
| Interest income effective interest method | 3,494 | 3,401 | 3,483 | 3,469 | 3,325 | 3,283 | 3,297 | 3,029 | 2,654 |
| Interest expenses | 2,159 | 2,080 | 2,110 | 2,114 | 2,016 | 1,947 | 1,951 | 1,803 | 1,544 |
| Net interest | 1,335 | 1,321 | 1,372 | 1,355 | 1,309 | 1,336 | 1,345 | 1,226 | 1,110 |
| Commission income | 473 | 402 | 411 | 407 | 427 | 367 | 325 | 336 | 367 |
| Commission expenses | 62 | 48 | 53 | 68 | 51 | 51 | 40 | 58 | 51 |
| Other operating income | 319 | 294 | 223 | 214 | 305 | 264 | 213 | 206 | 245 |
| Commission income and other income | 730 | 648 | 580 | 553 | 681 | 579 | 498 | 484 | 561 |
| Dividends | 5 | 4 | 16 | 8 | 6 | 3 | −10 | 16 | 18 |
| Income from investment in related companies | 271 | 191 | 227 | 685 | 148 | 194 | 90 | −2 | 85 |
| Net return on financial investments | 14 | −17 | 40 | −22 | −1 | 54 | 458 | 48 | −16 |
| Net return on financial investments | 289 | 179 | 283 | 670 | 153 | 251 | 538 | 62 | 86 |
| Total income | 2,354 | 2,148 | 2,235 | 2,578 | 2,143 | 2,166 | 2,382 | 1,772 | 1,757 |
| Staff costs | 526 | 532 | 516 | 498 | 484 | 482 | 476 | 435 | 383 |
| Other operating expenses | 391 | 326 | 384 | 312 | 316 | 306 | 390 | 306 | 300 |
| Total operating expenses | 917 | 859 | 901 | 810 | 800 | 789 | 866 | 741 | 683 |
| Result before losses | 1,437 | 1,289 | 1,335 | 1,769 | 1,343 | 1,377 | 1,517 | 1,032 | 1,074 |
| Loss on loans, guarantees etc. | 32 | 21 | 30 | 75 | 47 | 24 | 20 | 35 | 29 |
| Result before tax | 1,405 | 1,269 | 1,305 | 1,693 | 1,296 | 1,353 | 1,496 | 996 | 1,045 |
| Tax charge | 270 | 262 | 253 | 252 | 276 | 273 | 262 | 278 | 159 |
| Result investment held for sale, after tax | −5 | −3 | −1 | 0 | −5 | 3 | 12 | 22 | 37 |
| Net profit | 1,131 | 1,004 | 1,052 | 1,441 | 1,015 | 1,084 | 1,247 | 740 | 923 |
Key figures from quarterly accounts
| 2Q | 1Q | 4Q | 3Q | 2Q | 1Q | 4Q | 3Q | 2Q | |
|---|---|---|---|---|---|---|---|---|---|
| Group (NOKm) | 2025 | 2025 | 2024 | 2024 | 2024 | 2024 | 2023 | 2023 | 2023 |
| Profitability | |||||||||
| Return on equity per quarter 1) | 16.2 % |
14.0 % |
14.4 % |
21.0 % |
15.4 % |
16.0 % |
18.3 % |
11.1 % |
15.1 % |
| Cost-income ratio 1) | 44.4 % |
43.6 % |
46.1 % |
42.4 % |
40.8 % |
41.0 % |
47.0 % |
43.3 % |
40.9 % |
| Balance sheet figures | |||||||||
| Gross loans to customers | 182,990 | 179,729 | 180,102 | 179,590 | 173,440 | 169,326 | 169,862 | 168,940 | 166,819 |
| Gross loans incl. SB1 Boligkreditt and SB1 Næringskreditt | 252,890 | 249,905 | 249,350 | 247,148 | 241,832 | 238,270 | 236,329 | 234,316 | 232,100 |
| Deposit from customers | 149,446 | 148,169 | 140,897 | 138,042 | 139,661 | 134,395 | 132,888 | 138,230 | 140,164 |
| Total assets | 254,836 | 251,025 | 247,699 | 245,951 | 243,363 | 235,721 | 232,717 | 243,472 | 248,806 |
| Quarterly average total assets | 246,825 | 246,825 | 246,825 | 244,657 | 239,542 | 234,219 | 238,095 | 246,139 | 238,507 |
| Growth in loans incl. SB1 Boligkreditt and SB1 Næringskredtt last 12 months 1) |
1.4 % |
0.2 % |
0.9 % |
2.2 % |
1.5 % |
0.8 % |
0.9 % |
1.0 % |
8.5 % |
| Growth in deposits last 12 months | 6.1 % |
5.2 % |
2.1 % |
−1.2 % | 3.9 % |
1.1 % |
−3.9 % | −1.4 % | 13.5 % |
| Losses in % of gross loans incl. SB1 Boligkreditt and SB1 Næringskreditt | |||||||||
| Impairment losses ratio 1) | 0.05 % | 0.03 % | 0.05 % | 0.12 % | 0.08 % | 0.04 % | 0.03 % | 0.06 % | 0.05 % |
| Stage 3 as a percentage of gross loans 1) | 0.84 % | 0.92 % | 0.89 % | 0.91 % | 0.78 % | 0.82 % | 0.88 % | 0.98 % | 0.99 % |
| Solidity | |||||||||
| Common equity Tier 1 capital ratio | 18.8 % |
18.1 % |
18.3 % |
18.2 % |
18.5 % |
18.5 % |
18.8 % |
19.7 % |
19.1 % |
| Tier 1 capital ratio | 20.8 % |
20.0 % |
20.2 % |
20.2 % |
20.4 % |
20.4 % |
20.8 % |
21.3 % |
21.0 % |
| Capital ratio | 23.4 % |
22.6 % |
22.8 % |
23.1 % |
23.1 % |
23.1 % |
23.0 % |
23.7 % |
23.5 % |
| Tier 1 capital | 25,866 | 24,936 | 24,769 | 24,097 | 24,216 | 24,073 | 23,793 | 24,283 | 24,192 |
| Total eligible capital | 29,209 | 28,172 | 28,004 | 27,557 | 27,474 | 27,250 | 26,399 | 26,950 | 27,106 |
| Liquidity Coverage Ratio (LCR) | 196 % | 186 % | 183 % | 172 % | 188 % | 160 % | 175 % | 173 % | 188 % |
| Leverage Ratio | 7.0 % |
7.0 % |
7.0 % |
6.9 % |
7.1 % |
7.1 % |
7.2 % |
7.3 % |
7.2 % |
| 2Q | 1Q | 4Q | 3Q | 2Q | 1Q | 4Q | 3Q | 2Q | |
|---|---|---|---|---|---|---|---|---|---|
| Group (NOKm) | 2025 | 2025 | 2024 | 2024 | 2024 | 2024 | 2023 | 2023 | 2023 |
| Key figures ECC | |||||||||
| ECC share price at end of period (NOK) | 193.9 | 182.8 | 171.3 | 153.5 | 151.1 | 137.8 | 141.8 | 137.2 | 141.0 |
| 1) Number of certificates issued, millions |
144.18 | 144.17 | 144.19 | 144.21 | 144.19 | 144.13 | 144.20 | 143.82 | 143.80 |
| 1) Booked equity capital per ECC (NOK) |
130.34 | 122.57 | 128.09 | 124.05 | 117.31 | 113.24 | 120.48 | 116.39 | 112.81 |
| 1) Profit per ECC, majority (NOK) |
4.99 | 4.32 | 4.67 | 6.42 | 4.43 | 4.68 | 5.62 | 3.28 | 4.21 |
| Price-Earnings Ratio (annualised) 1) | 10.33 | 10.43 | 9.17 | 5.97 | 8.53 | 7.36 | 6.31 | 10.47 | 8.38 |
| Price-Book Value Ratio 1) | 1.49 | 1.49 | 1.34 | 1.24 | 1.29 | 1.22 | 1.18 | 1.18 | 1.25 |
1) Defined as alternative performance measures, see attachment to the quarterly report
Equity capital certificates
Stock price compared with OSEBX and OSEEX
1 July 2023 to 30 June 2025
OSEBX = Oslo Stock Exchange Benchmark Index , OSEEX = Oslo Stock Exchange ECC Index
Trading statistics
1 June 2024 to 30 June 2025
| 20 largest ECC holders | No. Of ECCs | Holding |
|---|---|---|
| Sparebankstiftinga Søre Sunnmøre | 10,471,224 | 7.26% |
| Sparebankstiftelsen SMN | 6,470,110 | 4.49% |
| KLP | 5,224,741 | 3.62% |
| VPF Eika Egenkapitalbevis | 4,323,458 | 3.00% |
| State Street Bank and Trust Comp | 3,400,149 | 2.36% |
| Skandinaviska Enskilda Banken AB | 3,098,362 | 2.15% |
| VPF Alfred Berg Gamba | 3,015,315 | 2.09% |
| Pareto Aksje Norge VPF | 2,523,350 | 1.75% |
| J. P. Morgan SE | 2,298,783 | 1.59% |
| State Street Bank and Trust Comp | 2,202,081 | 1.53% |
| Spesialfondet Borea Utbytte | 2,116,490 | 1.47% |
| VPF Holberg Norge | 2,080,000 | 1.44% |
| The Northern Trust Comp | 2,053,400 | 1.42% |
| Forsvarets personellservice | 2,018,446 | 1.40% |
| VPF Odin Norge | 1,997,177 | 1.38% |
| RBC Investor Services Trust | 1,870,694 | 1.30% |
| J. P. Morgan SE | 1,827,776 | 1.27% |
| J. P. Morgan Chase Bank, N.A., London | 1,758,857 | 1.22% |
| MP Pensjon PK | 1,412,140 | 0.98% |
| J. P. Morgan SE | 1,388,677 | 0.96% |
| The 20 largest ECC holders in total | 61,551,230 | 42.68% |
| Others | 82,664,360 | 57.32% |
| Total issued ECCs | 144,215,590 | 100.00% |
SpareBank 1 SMN aims to manage the Group's resources in such a way as to provide equity certificate holders with a good, stable and competitive return in the form of dividend and a rising value of the bank's equity certificate.
The net profit for the year will be distributed between the owner capital (the equity certificate holders) and the ownerless capital in accordance with their respective shares of the bank's total equity capital.
SpareBank 1 SMN's intention is that about one half of the owner capital's share of the net profit for the year should be disbursed in dividends and, similarly, that about one half of the owner capital's share of the net profit for the year should be disbursed as gifts or transferred to a foundation. This is on the assumption that capital adequacy is at a satisfactory level. When determining dividend payout, account will be taken of the profit trend expected in a normalised market situation, external framework conditions and the need for tier 1 capital.
To the Board of Directors of SpareBank 1 SMN
Report on Review of Interim Financial Information
Introduction
We have reviewed the accompanying consolidated balance sheet of SpareBank 1 SMN as at 30 June 2025, and the related consolidated income statement, the statement of comprehensive income, the statement of changes in equity and the cash flow statement for the six-month period then ended, and a summary of significant accounting policies and other explanatory notes. Management is responsible for the preparation of this interim financial information that gives a true and fair view in accordance with IAS 34 Interim Financial Reporting. Our responsibility is to express a conclusion on this interim financial information based on our review.
Scope of Review
We conducted our review in accordance with International Standard on Review Engagements 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (ISAs), and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the accompanying consolidated interim financial information does not, in all material respects, give a true and fair view of the financial position of the entity as at 30 June 2025, and of its financial performance and its cash flows for the six-month period then ended in accordance with IAS 34 Interim Financial Reporting.
Trondheim, 6 August 2025 PricewaterhouseCoopers AS
Rune Kenneth S. Lædre State Authorised Public Accountant
Note: This translation from Norwegian has been prepared for information purposes only.
SpareBank 1 SMN Søndre gate 4 7011 Trondheim Company number: NO 937901003 Switchboard: 915 03900 E-mail: [email protected]
