Gold bars to be exempt from tariffs, White House clarifies
Introduction & Market Context
SpareBank 1 SMN delivered strong second-quarter results for 2025, as presented by CFO Trond Søraas on August 7, 2025. The Norwegian regional bank reported a return on equity of 16.2% for the quarter, demonstrating continued momentum in its business operations across Mid-Norway. The market responded positively to the presentation, with the bank’s stock (MING) rising 1.44% to 196.00 NOK on the day of the announcement.
The presentation highlighted SpareBank 1 SMN’s position as the leading financial group in Mid-Norway, with a comprehensive range of financial services, market-leading digital solutions, and strong regional presence through 26 finance centers.
Quarterly Performance Highlights
SpareBank 1 SMN reported a profit after tax of NOK 1,131 million for Q2 2025, compared to NOK 1,015 million in the same quarter last year, representing an 11.4% increase. For the first half of 2025, profit after tax reached NOK 2,134 million with a return on equity of 15.0%.
The bank maintained a strong capital position with a CET1 ratio of 18.8% after CRR3 implementation, well above regulatory requirements and providing capacity for continued growth and dividends.
As shown in the following chart of key financial metrics, the bank has consistently improved its return on equity over recent years while maintaining solid capital ratios:
Lending growth was 1.2% in the quarter (1.4% in retail banking and 0.9% in corporate banking), while deposit growth was 0.9% (6.2% in retail banking, offset by a 1.1% decline in corporate banking). Loan losses remained low at NOK 52 million for the first half of 2025.
The bank’s subsidiaries delivered strong operational results, with Regnskapshuset SMN achieving an operating margin of 22.8% and Eiendomsmegler 1 Midt-Norge reaching 24.2%.
Detailed Financial Analysis
The bank’s quarterly results show stable growth in both retail and corporate banking segments. Retail banking lending volume increased from NOK 157.5 billion in Q2 2024 to NOK 167.0 billion in Q2 2025, while deposits grew from NOK 66.1 billion to NOK 73.1 billion over the same period.
The following chart illustrates the growth in retail banking lending and deposits over the past year:
Similarly, corporate banking showed positive momentum with lending volume increasing from NOK 70.8 billion in Q2 2024 to NOK 73.9 billion in Q2 2025, and deposits growing from NOK 70.6 billion to NOK 74.8 billion.
The corporate banking segment’s growth and margins are visualized in this chart:
The bank’s comprehensive income statement reveals consistent performance across key metrics, with net interest income and commission income showing resilience:
SpareBank 1 SMN has maintained a diversified income platform through its ownership interests, which contributed significantly to the quarterly results. The profit contribution from these interests is illustrated in the following chart:
Loan losses have remained low and stable, reflecting the bank’s prudent risk management and the relatively strong economic conditions in its core markets:
Strategic Initiatives and Market Position
SpareBank 1 SMN has strengthened its market position in Trondheim’s retail banking sector, as demonstrated by increasing market share over time. The bank has also made significant inroads in the high-net-worth segment, with lending at NOK 3.0 billion, deposits at NOK 5.6 billion, and assets under management at NOK 12.0 billion.
In the SME segment, the bank increased its market share of corporate loans from 32.3% in 2023 to 33.5% in 2024, while also growing its share of newly established companies from 26.4% to 27.1% over the same period.
The bank’s long-term value creation is evident in the following chart, which shows the growth in implicit market value from NOK 10 billion in 2015 to NOK 42 billion by Q2 2025, alongside the consistent improvement in return on equity:
SpareBank 1 SMN’s strategic ownership interests, particularly in SB1 Gruppen (which holds a 51.44% stake in Fremtind), have provided robust returns. The profit contribution from SB1 Gruppen has recovered strongly in 2025 after a challenging 2023, as shown in this chart:
Forward-Looking Statements
Looking ahead, SpareBank 1 SMN highlighted its strong capital position with a CET1 ratio of 18.8% and a leverage ratio of 7.0%, providing a solid foundation for future growth and shareholder returns:
The bank emphasized its strategic positions for further growth in the corporate market, focusing on commercial real estate brokerage through Norion, accounting and advisory services, and the agricultural sector. SpareBank 1 SMN aims to provide seamless banking, accounting, and advisory services while also focusing on sustainable operations.
Management expressed a positive outlook for continued growth and dividend capacity, supported by the bank’s leading position in Mid-Norway, high share of commission income from subsidiaries and product companies, and significant value from ownership interests within and outside the SpareBank 1 Alliance.
With its solid financial performance, strengthened market position, and diversified income sources, SpareBank 1 SMN appears well-positioned to maintain its growth trajectory and deliver value to shareholders in the coming quarters.
Full presentation:
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.