Flekkefjord Sparebank (FFSB) investor relations material

Executive summary

• Net profit after tax for Q2 2026 was 28.6 MNOK, down from 32.0 MNOK in Q2 2025, reflecting margin pressure and high funding costs, with continued strong lending and deposit growth.

• Return on equity (ROE) for Q2 2026 was 7.7%, and for H1 2026, 7.9%, both lower than the previous year.

• Lending growth over the past 12 months reached 15.0%, and deposit growth was 8.2%.

• Credit losses remain low, with improved credit quality and a reduction in non-performing loans.

Financial highlights

• Consolidated income for Q2 2026 was 87.1 MNOK, slightly up from 86.5 MNOK in Q2 2025.

• Net interest income for Q2 2026 was 58.1 MNOK, marginally lower than 58.3 MNOK in Q2 2025, with net interest margin at 1.73% versus 2.04% last year.

• Net commission income was 10.6 MNOK, down from 11.1 MNOK, mainly due to reduced income from Verd Boligkreditt.

• Net financial and other income increased to 18.4 MNOK from 17.1 MNOK.

• Operating expenses rose, with personnel costs at 28.4 MNOK (up from 26.3 MNOK) and other operating costs at 19.4 MNOK (up from 15.4 MNOK).

Outlook and guidance

• Margin pressure and high funding costs persisted in Q2, but gradual margin improvement is expected in H2 2026 following recent central bank rate decisions.

• The bank anticipates better prospects for Q3 and Q4 2026.

• Cost efficiency remains a priority, with ongoing monitoring to maintain a prudent cost-to-income ratio.

• Economic conditions remain mixed, with persistent inflation and potential for further interest rate hikes.