Grong Sparebank (GRONG) investor relations material

Executive summary

• Net profit after tax was NOK 23.2 million, up from NOK 22.5 million year-over-year.

• Strong customer growth and strategic expansion into accounting services, including a new company in Steinkjer.

• Result before tax was NOK 30.4 million in Q1 2026, nearly unchanged from NOK 30.5 million in Q1 2025.

• Strategic investments and acquisitions, such as Forsikring Helgeland, led to higher costs.

• Persistent competition and margin pressure, but non-performing loans decreased.

Financial highlights

• Net interest income was NOK 57.3 million (1.97% margin), down from NOK 59.0 million (2.11%) in Q1 2025.

• Net commission and other operating income increased to NOK 26.6 million from NOK 24.3 million, mainly from insurance and asset management.

• Operating expenses rose to NOK 52.4 million from NOK 44.2 million year-over-year; cost/income ratio (ex. securities) increased to 62.49% from 53.04%.

• Loan losses were NOK 2.5 million (0.10% of gross loans), down from NOK 7.2 million (0.31%) last year.

• Gross lending grew 8.81% year-over-year to NOK 9,993 million; customer deposits rose 2.81% to NOK 8,247 million.

Outlook and guidance

• Macroeconomic uncertainty persists, with risks from interest rates, inflation, and geopolitical instability.

• Cost efficiency expected to improve as recent investments yield results; continued focus on process optimization.

• New accounting services company launched to diversify income and strengthen regional presence.

• Board assesses outlook as positive, citing strong core banking, diversified income, and solid capitalization.

• Strengthened push into accounting services expected to diversify income streams.