Pareto Bank Asa · OSL:PARB
Pareto Bank Asa — Q2 2025 Earnings Presentation
37 slides from Pareto Bank Asa's earnings presentation, Jul 18, 2025
Slide 1: Financial Results – Second Quarter 2025
PARETO BANK Financial Results – Second Quarter 2025
Slide 2: Highlights, Financials, Business Area Update & Outlook
Highlights Financials Business Area Update & Outlook 2
Slide 3: Second Quarter 2025 Highlights
SECOND QUARTER 2025 Highlights • Profit after tax NOK 200.7m (NOK 178.2m in Q2-24). • Return on equity after tax 15.1% (14.3%). • Net interest income up to NOK 319.0m (NOK 303.0m). • Lending at the end of the quarter stood at NOK 19,249m (NOK 19,585m). Average lending was down 1% q/q with significan
Slide 4: Key Figures
KEY FIGURES Profit after tax (NOKm) Return on Equity * CET1 ratio 200.7 19.9% 178.2 173.2 178.5 18.3% 159.8 15.1% 17.9% 14.3% 13.6% 17.2% 17.1% 13.5% 12.1% Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 Net interest income (NOKm) Cost/Income ratio Loss rati
Slide 5: Financials
Highlights Financials Business Area Update & Outlook 5
Slide 6: Income Statement
INCOME STATEMENT P&L (NOKm) Q2-25 Q2-24 H1-25 H1-24 • Interest income up with average lending volumes up Net interest income 319.0 303.0 634.3 602.8 8% y/y. However, at the end of the quarter lending was Net other operating income 24.3 12.5 41.2 14.9 down 2% y/y. Total net income 343.2 315.5 675.5 6
Slide 7: Change in Quarterly Net Interest Income
CHANGE IN QUARTERLY NET INTEREST INCOME (NOKm) 4.7 2.7 319.0 4.5 0.9 315.4 2.3 -- - 4.4 - 0.8 -- - 6.4 200.0 Q1-25 Lending volume Lending rate Fee income Surplus liquidity Deposit volume Depost rate Market funding Interest days Q2-25 7
Slide 8: Interest Margins
INTEREST MARGINS Lending and deposit margin 5.7% 5.8 % 5.6% 5.6% 5.5% 4.6% 4.7% 4.6% 4.6% 4.5% 0.5% 0.5% 0.4% 0.2% 0.2% Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 Lending margin Deposit margin Net interest margin 8 Note: Lending and deposit margins relative to average 3M NIBOR. Net interest margin is total net i
Slide 9: Quarterly Change in Stage 2, 3 and Impairments
QUARTERLY CHANGE IN STAGE 2, 3 AND IMPAIRMENTS Stage 2 and 3 and provisions for stage 3 lending (NOKm) Impairments and losses on loans and guarantees (NOKm) 55.3 1,012 37.1 626 739 643 30.9 734 26.0 17.1 1,138 1,013 940 1,033 836 224 255 162 195 134 Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 Stage 3 Stage 2 Stag
Slide 10: Solidity and Capital Requirements
SOLIDITY AND CAPITAL REQUIREMENTS Per cent 2200.00% • Long-term CET1 target of 16.3%, in line with the 19.9 NFSA expectation. 2000.00% 1.4 • Pareto Bank holds a 1.1 buffer above this target. 1800.00% 0.3 17.1 17.0 • CRR3 supports capital 16.3 position: Lower capital 1600.00% NFSA expectation require
Slide 11: Business Area Update & Outlook
Highlights Financials Business Area Update & Outlook 11
Slide 12: A Niche Player Financing Medium-Sized Enterprises
A NICHE PLAYER FINANCING MEDIUM-SIZED ENTERPRISES Exposure (NOKm) SHIP FINANCING NOK 1,358m 6% RESIDENTIAL FINANCING NOK 3,016m 12% 45% 11% COMMERCIAL PROPERTY RESIDENTIAL DEVELOPMENT FINANCING FINANCING NOK 2,717m NOK 11,001m 27% CORPORATE FINANCING NOK 6,571m 12
Slide 13: Quarterly Exposure per Business Area
QUARTERLY EXPOSURE PER BUSINESS AREA (NOKbn) 10.9 11.0 9.9 9.2 8.7 7.3 7.1 6.3 6.4 6.6 3.7 3.2 3.1 3.3 3.2 3.1 3.0 3.0 2.8 2.7 1.8 2.0 2.0 1.8 1.4 Residential development financing Residential financing Commercial property financing Corporate financing Ship financing Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 13
Slide 14: Residential Property Financing
RESIDENTIAL PROPERTY FINANCING Residential property exposure (NOKm) Total NOK 14,017m STABLE EXPOSURE, BUT DECREASED LOAN VOLUME EXPECTED IN Q3-25. 1,385 Land w/ houses • Relatively uncertain growth forecast. Variations in volume is in the nature of project financing. 2,297 Land wo/ houses • A presi
Slide 15: Commercial Property Financing
COMMERCIAL PROPERTY FINANCING Commercial property exposure (NOKm) Total NOK 2,717m SUBDUED VOLUME GROWTH TO CONTINUE IN Q3-25. • Low transaction volumes. • Long-term rate outlook remain high despite the recent rate cut. • Low risk appetite and financing demand. 2,717 Commercial Q2-25 Q1-25 15
Slide 16: Corporate Financing
CORPORATE FINANCING Corporate exposure (NOKm) Total NOK 6,571m (Q1-25: NOK 7,086m) 13% Real Estate FLAT VOLUME EXPECTED FOR Q3-25. 3% Investment Company 3% IT/Telecommunications 4% 41% • Loan redemptions led to a reduction in volume in Q2-25 Retail 5% Logistics and is expected to affect net lending
Slide 17: Ship Financing
SHIP FINANCING Exposure (NOKm) Total NOK 1,358m (Q1-25: NOK 1,810m) FLAT VOLUME EXPECTED FOR Q3-25. Offshore Accommodation 336 LTV 7%* Offshore Subsea 251 LTV 35%* • After significant redemptions in H1-25, a flat volume development is expected for Q3-25 with low shipping Product 191 LTV 42% financin
Slide 18: Total Return
TOTAL RETURN Price Annual Equity Total Return Change Return Pareto 341 % 620 % 19 % Bank OSEBX 202 % 202 % 10 % Index 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 OSEBX PARB 18 Bloomberg as of 09.07.2025.
Slide 19: Appendix
APPENDIX (Pareto bank
Slide 20: Long-Term Ambitions
LONG-TERM AMBITIONS ROE Dividend 15% min. 50% 14.63% 52.9% 13.99% 49.4% 50.1% 50.0% 13.75% 13.56% 2021 2022 2023 2024 2021 2022 2023 2024 20
Slide 21: ROE and Leverage Ratio
ROE AND LEVERAGE RATIO Profitability with increasing solidity 16.0 % 15.9 % 16.0 % 15.6 % 14.8 % 15.0 % 15.1 % 25.0 % 14.3 % 14.6 % 14.0 % 14.0 % 13.8 % 13.6 % 12.7 % 13.0 % 12.0 % 20.0 % 18.2 % 17.1 % 17.1 % 17.0 % 16.5 % 10.0 % 15.7 % 16.3 % 16.0 % 14.3 % 14.6 % 15.0 % 8.6 % 13.7 % 8.0 % 12.4 % 11
Slide 22: Lending Growth
LENDING GROWTH Per business area (NOKm) 20,000 Ship Financing 15,000 Corporate Financing * Commercial Residential Financing ** 10,000 Commercial Property Financing 5,000 Residential Property Financing - 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 *) Including
Slide 23: Largest Shareholders
LARGEST SHAREHOLDERS 30 June 2025 Name Shares % Total • The Company has 76,782,423 shares outstanding. One class 1 Pareto AS 15,356,484 20.00 % of shares where each share carries one voting right. 2 Société Générale 6,943,049 9.04 % • Diversified investor base with 4,018 shareholders. 3 AWC AS 5,212
Slide 24: The Share
THE SHARE Earnings per share (NOK) Book value per share (NOK) 2.44 2.15 2.16 2.08 65.79 1.91 64.07 63.64 61.74 59.67 Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 24
Slide 25: Quarterly Income Statement
QUARTERLY INCOME STATEMENT P&L (NOKm) Q2-25 Q1-25 Q4-24 Q3-24 Q2-24 Net interest income 319.0 315.4 311.4 313.1 303.0 Net other operating income 24.3 16.9 8.9 2.1 12.5 Total net income 343.2 332.3 320.4 315.1 315.5 Total operating expenses 62.9 61.5 55.7 57.7 56.3 Operating profit before 280.4 270.8
Slide 26: Quarterly Balance Sheet
QUARTERLY BALANCE SHEET (NOKm) Q2-25 Q1-25 Q4-24 Q3-24 Q2-24 Loans to credit institutions 3,214 2,144 2,640 1,930 1,432 Loans to customers 19,249 20,864 20,713 19,419 19,585 Bonds and other securities 4,897 5,158 3,659 4,240 5,331 Shareholdings in associated companies 34 34 34 22 22 Other assets 212
Slide 27: Margins and Interest Contribution
MARGINS AND INTEREST CONTRIBUTION Margins per business area Interest contribution per business area Estimated annualized margins including commissions, excluding front and back-end fees over 3M NOKm, estimated interest contribution including commissions, excluding front and back-end fees over 3M Nib
Slide 28: Real Estate Financing Exposure
REAL ESTATE FINANCING EXPOSURE Geographical residential property exposure Total NOK 14,017m* Geographical commercial property exposure Total NOK 2,717m* 13% 11% 4% 3% 6% 37% 7% Oslo 38% Oslo Akershus Sweden Vestfold Vestland 7% Sweden Akershus Østfold Telemark 15% Others Others 34% 24% 28 *) Residen
Slide 29: Sweden
SWEDEN Exposure in Sweden (NOKm) Total NOK 2,859m Stable Exposure • High deal flow throughout 2024 ensured strong volume growth towards year-end. Relatively unchanged exposure in Q2-25. • Volume growth is expected at year-end 2025. 2,778 2,859 • High focus on expanding network and customer base. • G
Slide 30: Liquidity Buffer
LIQUIDITY BUFFER Low credit and market risk (NOKm) Comments • Cash on hand. 250 • Highly liquid bonds. • Low credit risk. 2,504 • No interest rate or foreign exchange risk. Cash (Norges Bank & DNB) • Access to central bank Bonds issued by government & PSEs 3,227 facilities and repo market. Covered b
Slide 31: Funding
FUNDING Sources (NOKm) Deposits & senior debt NOKm, Deposits 13,711 Percent customer deposits of net lending to customers Senior debt 7,348 71.2% 68.7% 66.4% AT1 & T2 debt 1,250 64.0% 62.1% 7,336 Other debt 378 7,348 7,366 7,347 7,284 Equity capital 4,919 Key funding and liquidity ratios 14,324 • De
Slide 32: Customer Deposits
CUSTOMER DEPOSITS Deposits by size (NOKm) Deposits by product (NOKm) > NOK 20m 3,092 447 NOK 10 - 20m 1,000 228 193 NOK 5 - 10m 928 406 Floating rate retail 236 NOK 2 - 5m 1,135 2,386 2,989 NOK 0 - 2m 1,128 2,815 Floating rate corporate 2,142 - 1,000 2,000 3,000 4,000 5,000 Floating rate Fixed rate
Slide 33: Market Funding
MARKET FUNDING Market funding maturities (NOKm) * Cost of new market funding ** 127 121 250 575 101 94 300 81 120 72 2,250 54 1,975 46 0 0 1,520 1,550 38 30 31 25 750 750 2025 2026 2027 2028 2029 2030 3M 6M 12M 2Y 3Y 5Y Senior Call on Subordinated Capital 31.03.2025 30.06.2025 *) Net of own holdings
Slide 34: Commitments by Size
COMMITMENTS BY SIZE Commitment size per customer (NOKm) Distribution of commitments by size (NOKm) 546 2% < 10 423 18% 5,138 10 - 50 4,586 30% 5,100 50 - 100 < 10 4,728 10 - 50 2,119 50 - 100 100 - 150 2,645 100 - 150 150 - 200 3,399 150 - 200 200 - 250 3,810 19% > 250 2,192 5% 200 - 250 1,123 5,461
Slide 35: Commitments by Risk Classification
COMMITMENTS BY RISK CLASSIFICATION Risk classification (NOKm) * Risk classification 4% 6,389 Low risk 8% 5,772 23% 16,890 Moderate risk 16,044 Low risk Moderate risk High risk 2,232 High risk Impaired 1,967 940 Impaired 1,033 65% Q1-25 Q2-25 35 *) Risk classification of credit exposure according to
Slide 36: Proven Track Record for Credit Quality
PROVEN TRACK RECORD FOR CREDIT QUALITY • No losses from 2008 to 2012. 2008 0.00% 2009 0.00% • Total confirmed losses limited to NOK 194m during 17 years of 2010 0.00% operation. 2011 0.00% • Accumulated lending amounted to approx. NOK 193 billion during 2012 0.00% the past 17 years. Total confirmed
Slide 37: Pareto Bank
( Pareto bank