Pareto Bank ASA (0RI3) Q4 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Welcome, everyone. Welcome to the fourth quarter of the year. We start with the main features in the accounting. After that, the bank CFO, Vegard Toverud, will give us more details. Finally, I will give a status on our business areas and tell you a little about market views. We are happy to answer questions. Finally, for those of you who participate digitally, you can send questions to the chat. Pareto Bank received a tax return of NOK 675.6 million for 2025. The result was a decrease of 2% from 2024, as a result of a reduction in the volume of loans by 9% year-on-year, and higher loss costs. Self-inflation after tax was 12.4% and was affected by both the loss costs and a strong solidity. Several of the bank's property customers are still experiencing demanding times. This also means that the loss cost ended at 0.89% of net payments last year against 0.65% the year before. In the fourth quarter, there was a large increase in the loss costs, and this was mainly due to several commitments within housing development. the operational efficiency was still high, expressed through a good cost percentage. This also means that in addition to good cost control, the costs are reduced because we have a model for surplus distribution that is directly linked to profitability. This means that lower self-inflation contributes to a lower bonus salary, and thus also reduced personnel costs. For the first time in the bank's history, the year's result was lowered compared to the previous year. The result was 2% lower in 2025 compared to 2024. We delivered 676 in the result last year, compared to 687 million in 2024. The annual results reflect the challenges that several of the bank's housing development customers still experience. On the basis of the decline in loan volume and the stron...