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Introduction & Market Context
SpareBank 1 Nordmøre (OB:SNOR) presented its second quarter 2025 results on August 15, showcasing strong financial performance amid stable regional economic conditions. The Norwegian regional bank, which traces its roots back to 1835 and operates eight branches across Central Norway, has demonstrated consistent growth across key metrics while advancing its sustainability initiatives.
The presentation, delivered by CEO Allan Troelsen and CFO Steinar Sogn, highlighted the bank’s continued expansion in both personal and business markets despite ongoing macroeconomic uncertainty. With a business capital of 42 billion Norwegian kroner and over 60,000 customers, SpareBank 1 Nordmøre has strengthened its position in its home market spanning from Ålesund to Trondheim.
Quarterly Performance Highlights
SpareBank 1 Nordmøre reported a substantial 71% year-over-year increase in quarterly profit before tax, reaching 200 million NOK in Q2 2025 compared to 117 million NOK in Q2 2024. The year-to-date profit before tax rose to 318 million NOK, up from 246 million NOK in the same period last year, representing a 29% increase.
As shown in the following chart of quarterly profit growth:
The bank’s return on equity has improved significantly, reaching 12.7% in 2025, up from 5.5% in 2021, demonstrating the bank’s enhanced profitability over the past four years. This improvement in profitability metrics is illustrated in the key performance indicators:
Cost efficiency has also improved markedly, with the cost-to-income ratio decreasing to 39.6% in the first half of 2025, compared to 58.6% in the same period of 2021. Even excluding financial revenues, the cost-to-income ratio improved to 40.1% from 63.0% over the same period, indicating substantial operational efficiency gains.
Detailed Financial Analysis
SpareBank 1 Nordmøre’s total loan portfolio grew to 35.6 billion NOK, representing a twelve-month growth rate of 5.88%. The personal market segment showed a 5.24% growth rate, while the business market segment demonstrated stronger growth at 7.68%.
The bank’s loan growth across both segments is illustrated in the following chart:
Net interest income reached 350 million NOK year-to-date, a substantial increase from 146 million NOK in the first half of 2021. The net interest margin as a percentage of funds under management was 2.39% for the first half of 2025, up from 1.15% in the same period of 2021, though slightly down from 2.50% a year ago.
The following chart shows the development of net interest income:
Capital adequacy remains strong, with the consolidated Core Equity Tier 1 (CET1) ratio at 17.72%, well above regulatory requirements. The parent bank’s CET1 ratio stands even higher at 21.79%, providing a substantial buffer against potential economic downturns.
Strategic Initiatives
SpareBank 1 Nordmøre has placed increasing emphasis on sustainability, as evidenced by the growth in its green loan portfolio. Green loans in the personal market have more than doubled from 553 million NOK in Q3 2023 to 1,262 million NOK in Q2 2025.
The bank’s green business market portfolio has also seen growth, particularly in commercial buildings and transport sectors, as shown in the following breakdown:
The bank’s strategic vision centers around "making a difference" and being "always attractive," supported by core values of being innovative, honest, and generous. Its mission focuses on creating value and sustainable development for customers, owners, and local communities.
In December 2024, Scope Ratings affirmed SpareBank 1 Nordmøre’s A- issuer rating with a stable outlook, highlighting the bank’s focused business model, supportive operating environment, and developing long-term sustainability assessment.
Forward-Looking Statements
SpareBank 1 Nordmøre’s stock price has shown strong performance, reaching 161 NOK as of June 30, 2025, up from 122 NOK a year earlier. This represents a 32% increase, significantly outperforming its relatively flat stock price performance between 2021 and 2024.
The bank’s funding structure is well-diversified, with a maturity profile extending into 2030 and 2031, including green bonds that align with its sustainability focus. The bank noted that while it continues to experience stable lending growth and good underlying operations, there remains macroeconomic uncertainty in the market.
Regional economic indicators from Norges Bank’s regional network suggest wage growth of 4.5% in 2025 and 4.0% in 2026, providing context for the bank’s operating environment. With low unemployment in its market area and a strong capital position, SpareBank 1 Nordmøre appears well-positioned to navigate potential economic challenges while continuing its growth trajectory.
Full presentation:
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