Spar Nord Reports Positive Q1 2025 Financial Results
Profit after tax of DKK 491 million and return on equity of 14.0%
Spar Nord has kicked off 2025 with a robust profit after tax of DKK 491 million, demonstrating a notable return on equity of 14.0%. While this performance marks a promising start for the year, it has been influenced by declining interest rates impacting the Bank’s earnings. The decrease in net interest income compared to last year is attributed to lower returns on the Bank’s significant excess liquidity, resulting in a core income decline of DKK 136 million versus the prior year.
Banking Business Growth and Asset Management
Amidst these economic adjustments, Spar Nord's banking operations have showcased a healthy momentum moving from Q1 2024 into Q1 2025. The Bank reported an impressive annual growth in lending by 10% and deposits by 6%. This reflects a total business volume increase of 4% within the same timeframe. In terms of Q1 2025 performance specifically, lending surged by DKK 1.3 billion while deposits also rose by DKK 0.7 billion, underscoring the Bank’s strong market presence.
Positive Trends in Asset Management
The first quarter has also seen considerable activity in asset management, with indications that the housing market is recovering and gaining traction. Moreover, the credit quality remains robust, allowing for limited impairment charges during this period.
Nykredit Takeover Offer Update
In connection with Nykredit’s takeover offer, the Bank reports that two out of the three necessary conditions have been satisfied. However, the final approval from the Danish Competition and Consumer Authority is still pending, leading to an extension of the offer period now set to conclude on 20 May 2025. CEO Lasse Nyby has communicated that Nykredit is optimistic about completing the takeover within the first half of 2025.
Contact Information and Further Inquiries
For additional inquiries regarding this financial release, feel free to reach out to Lasse Nyby, Chief Executive Officer, directly at tel. +45 9634 4011, or contact Rune Brandt Børglum, Chief Financial Officer, at tel. +45 9634 4236.
Yours faithfully,
Rune Brandt Børglum
CFO
Frequently Asked Questions
What were Spar Nord's profits for Q1 2025?
Spar Nord reported a profit after tax of DKK 491 million for Q1 2025.
How has the lending business performed?
The lending business saw a 10% annual growth, with an increase of DKK 1.3 billion in Q1 2025.
What is the current status of the Nykredit takeover offer?
Two of the three conditions needed for the takeover offer have been met, pending final approval.
Who can I contact for more information about Spar Nord's results?
For more information, you can contact Lasse Nyby, CEO, or Rune Brandt Børglum, CFO.
What impact did interest rate changes have on Spar Nord's revenue?
The decline in interest rates has contributed to lower net interest income, affecting overall core income.
