Introduction & Market Context
SpareBank 1 Nordmøre, a Norwegian regional bank with 190 years of history, presented its Q1 2025 results on May 9, 2025, describing the quarter as a "satisfactory start to the year." The bank, which operates nine branches across Central Norway from Ålesund to Trondheim, serves more than 60,000 customers and is listed on the Oslo Stock Exchange under the ticker SNOR.
The presentation highlighted stable loan growth and satisfied customers despite continued macroeconomic uncertainty. The bank’s stock has performed well, trading at NOK 166.02 as of May 8, 2025, representing a 2.46% increase on the day and significantly higher than its 52-week low of NOK 119.
Quarterly Performance Highlights
SpareBank 1 Nordmøre reported a profit before tax of NOK 119 million for Q1 2025, down from NOK 129 million in the same period last year. This resulted in a return on equity of 9.0%, compared to 11.3% in Q1 2024. Despite this decline, the bank maintained solid capital ratios with core equity capital (consolidated) at 17.13%, slightly improved from 16.99% a year earlier.
As shown in the following chart of key financial figures, the bank has demonstrated consistent growth in equity while maintaining strong capital ratios:
The bank’s business capital continued its steady growth trajectory, reaching NOK 40.5 billion, up from NOK 37.7 billion in Q1 2024. This represents a 7.6% increase year-over-year, demonstrating the bank’s continued expansion despite challenging market conditions.
The following chart illustrates the consistent growth in business capital over the past five years:
Detailed Financial Analysis
Net interest income for Q1 2025 was NOK 165 million, slightly down from NOK 168 million in Q1 2024. As a percentage of average total assets, net interest income decreased to 2.31% from 2.45% a year earlier, reflecting margin pressure in a competitive environment.
The following chart shows the quarterly development of net interest income:
The bank’s cost-to-income ratio increased to 45% in Q1 2025 from 41% in Q1 2024, indicating some pressure on operational efficiency. Excluding financial income, the ratio was 46%, up from 42% in the same period last year.
Total (EPA:TTEF) loans grew to NOK 34.9 billion as of March 31, 2025, up from NOK 32.3 billion a year earlier, representing a 8.1% increase. The loan portfolio remains well-diversified, with personal market loans accounting for approximately 74% of total lending.
The following chart shows the development of total loans over the past five years:
Strategic Initiatives & Sustainability
A key focus of SpareBank 1 Nordmøre’s strategy is sustainability, with significant growth in green loans across both personal and business markets. Green loans in the personal market reached NOK 1,188 million in Q1 2025, up from NOK 774 million in Q1 2024, representing a 53.5% increase year-over-year.
The business market also showed strong growth in green loans across various sectors, including fisheries and aquaculture, commercial buildings, transportation, and renewable energy. This aligns with the bank’s sustainability strategy, which focuses on its own organization, products and services, and community engagement.
The following chart illustrates the bank’s comprehensive approach to sustainability:
The bank’s credit rating from SCOPE Ratings remains at A- with a Stable outlook as of December 2024. The rating agency highlighted the bank’s focus on personal customers and mortgage lending as positive factors, along with Norway’s strong government fiscal position and the bank’s solid profitability.
Regional Economic Outlook
SpareBank 1 Nordmøre operates in a region with favorable economic conditions. The Northwest region of Norway was reported as the most economically positive in the country, influenced by the energy sector, deliveries to the maritime industry, and increased tourism.
The following map highlights the bank’s regional presence and economic context:
The bank noted low unemployment in its market area, strong household economy, but indicated that interest rate cuts might be delayed. While there is significant variation between industries and regions, the outlook for oil and gas and export sectors remains positive, though there is more concern in the construction sector.
Property prices are rising, though sales times are increasing. The bank expects higher demand for mortgages as households have increasingly positive expectations for the economy.
In conclusion, SpareBank 1 Nordmøre delivered a stable performance in Q1 2025 despite a slight decline in profitability. The bank continues to grow its business capital and loan portfolio while maintaining strong capital ratios and advancing its sustainability initiatives. The positive regional economic outlook provides a favorable backdrop for continued growth, though macroeconomic uncertainties remain.
Full presentation:
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