Street Calls of the Week
Investing.com -- Norion Bank on Friday reported a 10% increase in net profit for the third quarter of 2025 and said its board plans to launch a new share buyback program of up to SEK 500 million, subject to approval from the Swedish Financial Supervisory Authority.
Net profit rose to SEK 340 million from SEK 309 million in the same quarter last year. Operating profit increased to SEK 434 million from SEK 393 million, while total income grew 3% to SEK 919 million from SEK 895 million. Earnings per share were SEK 1.70, up from SEK 1.50.
The bank said credit losses declined to 1.7% from 2.1%. The cost-to-income ratio increased to 30% from 27.6%.
Return on equity was 14% compared with 14.4% a year earlier. The Common Equity Tier 1 ratio was unchanged at 16.1%, and the total capital ratio rose to 18.1% from 16.7%.
For the first nine months of 2025, total income amounted to SEK 2.92 billion, up 5% from SEK 2.77 billion in the corresponding period of 2024.
Operating profit for the period was SEK 1.43 billion, compared with SEK 1.23 billion last year.
Net profit increased to SEK 1.12 billion from SEK 964 million. Earnings per share rose to SEK 5.52 from SEK 4.62, and return on equity reached 16%, up from 15.3%.
The loan portfolio totaled SEK 49.05 billion at the end of the quarter, compared with SEK 48.46 billion a year earlier.
Deposits and borrowings from the public rose to SEK 54.98 billion from SEK 45.75 billion, an increase of 20%. Debt securities in issue decreased to SEK 1.80 billion from SEK 2.27 billion.
In September, Norion Bank completed an issuance of Tier 2 capital totaling SEK 500 million. During the quarter, it also completed a previously announced share buyback program of SEK 500 million, repurchasing about 8.3 million shares.
The bank’s liquidity coverage ratio was 404% at the end of September, compared with 397% a year earlier.
The net stable funding ratio stood at 126%, down from 141%. Total liquidity amounted to SEK 19.17 billion, up from SEK 9.66 billion.
The Corporate loan portfolio amounted to SEK 10.96 billion, an increase of 2% from a year earlier.
The Real Estate portfolio was SEK 21.01 billion, down 7%. The Consumer segment increased its loan book 11% to SEK 13.30 billion, and the Payments segment rose 23% to SEK 3.39 billion, supported by the completed acquisition of Verkkokauppa.com’s consumer financing business in Finland.
The acquisition expanded the bank’s payment operations under the Walley brand. The Consumer segment’s growth was partly attributed to the acquisition of DNB Sweden’s credit card portfolio, which added approximately SEK 650 million in credit volume.
Norion Bank’s share closed at SEK 67.70 on Sept. 30, corresponding to a market capitalization of about SEK 14 billion. The largest shareholders were Fastighets AB Balder with 44.1% and Erik Selin with 20%.
The bank said it had an average of 420 full-time employees during the quarter, compared with 389 in the same period last year.