SpareBank 1 Sogn og Fjordane reported strong financial results for 2025, despite a slight dip in annual profit compared to the previous year. The bank announced a profit after tax of NOK 886 million for the full year, with a fourth-quarter profit of NOK 195 million, as revealed during a capital markets day on .
While the 2025 result is lower than the NOK 992 million achieved in 2024, the bank clarified that this is largely due to the 2024 sale of Frende Holding AS. Adjusting for this one-time event, underlying performance actually improved by NOK 42 million. This indicates a continued positive trajectory for the bank’s core operations.
Net interest income for the fourth quarter reached NOK 372 million, though this figure was impacted by the ongoing transfer of NOK 10 billion in loans to SpareBank 1 Boligkreditt. This strategic move, aimed at streamlining mortgage operations, is reshaping the bank’s revenue streams, with the expectation that income from the transferred volume will return in the form of commission fees.
The bank demonstrated robust lending growth, particularly within the business sector, which experienced a 6.8% increase over the last 12 months, reaching a total of NOK 17.4 billion. This growth suggests a healthy demand for credit among businesses in the region served by SpareBank 1 Sogn og Fjordane.
Operating expenses for the quarter rose to NOK 202 million, driven by a NOK 10 million provision for voluntary redundancies affecting approximately 20 positions. This restructuring is intended to generate annual cost savings of NOK 11–13 million, beginning in . The bank is proactively managing its cost base to improve efficiency and profitability.
SpareBank 1 Sogn og Fjordane maintains a strong capital adequacy ratio, with a Common Equity Tier 1 (CET1) ratio of 17.8%, comfortably exceeding the regulatory requirement of 16.0%. This financial strength provides a buffer against potential economic headwinds and allows the bank to continue supporting its customers and communities.
The board of directors has proposed a dividend of NOK 30 per equity certificate, representing a high payout ratio of 90.2%. This demonstrates the bank’s commitment to returning value to its shareholders.
Looking ahead, SpareBank 1 Sogn og Fjordane implemented a new organizational structure on , designed to enhance its market position and operational efficiency. This restructuring is a key component of the bank’s strategy for future growth and success.
In the third quarter of 2025, SpareBank 1 Sogn og Fjordane reported a profit after tax of NOK 290 million and an equity return of 15.8%, a level the board deemed “very satisfactory.” Net interest income for Q3 was NOK 394 million, a decrease of NOK 11 million from the same quarter in 2024, but an increase of NOK 14 million from the previous quarter. The reduction from the prior year is attributed to the transfer of loans to SpareBank 1 Boligkreditt, with corresponding commission income expected to offset this.
By the end of the third quarter, the bank had transferred approximately NOK 9.2 billion in housing loans to SpareBank 1 Boligkreditt. Lending to the private market grew by 6.0% over the last 12 months, including the transferred volume. Corporate market lending increased by 7.1% over the same period. Other operating income, excluding financial items, increased by NOK 13 million to NOK 55 million, driven by commission income from loans transferred to SpareBank 1 Boligkreditt and strong growth in other commission income, such as insurance product sales.
Financial items generated a net positive result of NOK 106 million in the third quarter, contributing significantly to the overall result. This was driven by positive value development in interest rate instruments and strong performance in jointly controlled entities, including Fremtind Forsikring and SpareBank 1 Gruppen.
Operating costs were NOK 177 million in the third quarter, a reduction of NOK 4 million or 2.5% compared to the same quarter last year. The bank has indicated that there will be further restructuring and potential redundancies in and , though no severance packages are currently planned for this next round of personnel reductions.
SpareBank 1 Sogn og Fjordane continues to prioritize financial stability and shareholder value, while adapting to a changing economic landscape and evolving regulatory requirements. The bank’s strategic focus on lending growth, cost management, and operational efficiency positions it for continued success in the years ahead.
