Sparebank 1 Smn Prim Cap (SRMGF) Q1 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good afternoon and a warm welcome to this short presentation of the results for the first quarter of 2026 for Sparebank 1 SMN. My name is Trond Søros, I'm the CFO here at SMN and I will walk you through the main characteristics of the results for the first quarter. We delivered a solid result for the first quarter of 2026, though it is a result below our ambitions. But the picture is nuanced. The quarter was a quarter where all things didn't fall our way, and several factors hit at the same time. The result ended at 849 million, with a return on equity of 11.3%. This mainly reflects lower net interest income, higher losses in the quarter and also weaker contributions from equity investments. At the same time, we are very satisfied with the underlying development. We deliver good growth in both lending and deposits. We have a strong CET1 ratio of 17.1%, which gives us significant financial flexibility going forward. The subsidiaries contributed seasonally well this quarter as well, even though the results are somewhat lower than the same quarter last year. So overall, a very solid result, though a little bit below our ambitions, but we believe we are very well positioned for improving the results in the coming quarters. Our long-term target of 13% return on equity remains unchanged, and the ambition to be among the top performers each quarter stands firm. We do not fully reach our return target or a top ranking this quarter, but has the expectations of being back on target quickly. At the same time, we deliver within our other financial targets and maintain solid control over both capital strength and cost development. Looking more closely at the retail market, we saw a quarterly lending growth of 1.1%, which corresponds to a 12-month growth of 5.1%, which means we ar...