SpareBank 1 SR-Bank ASA

SpareBank 1 Sør Norge reported a pre-tax profit of EUR2.82 billion for the second quarter of 2026, up from both the previous quarter and the same period last year. Lending grew 2.6% and deposits rose 6.4% in the quarter, while credit losses were just EUR54 million, or 5 basis points, well below the normalized level of 12 to 15 basis points. Return on equity reached 12.7%, or 13.6% excluding merger goodwill, against a long-term target of 14%, and the cost-to-income ratio was a low 27.8%. Net interest income slipped slightly from the first quarter due to margin pressure from a 33 basis point rise in NIBOR, and the bank said intense competition limits its ability to fully pass on rate hikes to customers. The CET1 ratio stood at 17.51%, including a 45 basis point deduction for a new 1% share buyback program.