Pareto Bank ASA (0RI3) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Hello everyone. Welcome to the second quarter of the year. We start with the main attraction in the accounting. After that, the CEO of the bank, Vegard Tovre, will give us more details. Then I will give a status on our business areas and comment on market views. As usual, we will answer questions at the end. For those of you who participate digitally, just send questions in the chat to the meeting. Pareto Bank received a tax return of NOK 207 million in Q2. The result was a self-inflation after taxes of 15.1%, in line with the bank's long-term interest rate of 15%. The net income increased to 319 million, and the total net profit ended at 19.2 billion. After high activity and strong growth last year and into the first quarter, we had a decline in the volume of payments in the second quarter. The average volume of payments in the second quarter was around 1% lower than in the first quarter. The decline was due to the lack of new credit commitments and a large volume of loan exemptions. We are now experiencing increased insecurity, a decrease in risk and investment will and therefore activity among customers, and the new housing market is still weak with low demand, and few new projects are being launched. We are a project bank, and we are dependent on activity for growth. The sum of deductions and loss of outlay ended at 17.1 million in the second quarter. The individual deductions amounted to a total of 31.3 million, and are still primarily within housing development. As I said, this market is still weak, and we repeat the message that it takes time to work through the demanding projects. We must therefore assume that in the next quarter we will also be able to see declines and losses abroad at a higher level than what has been normal for Pareto Bank. In the second q...