Voss Veksel- og Landmandsbank (VVL) investor relations material

Executive summary

• Net profit after tax for Q1 2026 was NOK 16.3 million, down from NOK 20.0 million in Q1 2025, reflecting margin pressure and increased costs from recent investments in customer-facing staff.

• Profit before tax was NOK 21.7 million (Q1 2025: NOK 26.6 million).

• Total comprehensive income for Q1 2026 was NOK 17.4 million, compared to NOK 22.6 million last year.

• Return on equity after tax (adjusted for hybrid capital) was 7.8% (Q1 2025: 10.4%).

• Solid loan growth partially offset lower net interest margins, with a 10.6% increase in gross loans year-over-year.

Financial highlights

• Net interest and credit commission income for Q1 2026 was NOK 32.1 million, a decrease of NOK 1.0 million year-over-year.

• Total operating income before losses was NOK 21.1 million, down NOK 5.0 million from Q1 2025.

• Operating expenses increased to NOK 22.5 million (Q1 2025: NOK 19.6 million), mainly due to higher personnel costs.

• Cost-to-income ratio increased to 48.4% from 40.6% in Q1 2025.

• Earnings per share for Q1 2026 was NOK 7.02, compared to NOK 8.50 in Q1 2025.

Outlook and guidance

• Continued focus on growth, with recent staff investments expected to support future expansion, though cost effects are immediate while income benefits are delayed.

• Results are expected to strengthen throughout the year as new hires contribute to revenue.

• The bank maintains a solid core business and expects to deliver satisfactory results going forward.

• Ongoing geopolitical tensions and high inflation increase uncertainty, but the bank has taken this into account in its loan loss assessments.