SpareBank 1 Østlandet reported a profit after tax of 3,549 million kroner in 2025 and is proposing a record customer dividend payout of 582 million kroner.
“The result was driven by solid development in core operations, with strong net interest income, growth in commission income, and good contributions from equity holdings,” said CEO Klara-Lise Aasen.
EiendomsMegler 1 Østlandet and SpareBank 1 Finans Østlandet both contributed strongly to the final result, according to a press release. The newly merged real estate agency delivered record turnover and a strong operating result.
SpareBank 1 Finans Østlandet achieved its best result ever.
Record Results
The positive results will benefit owners, customers, and the local community through a record-high dividend, the bank stated in its release.
The board proposes a cash dividend of 12.7 kroner per equity certificate, representing a dividend ratio of 70 percent.
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According to the press release, this is the highest dividend in the bank’s listed history and well above the target of at least 50 percent.
The board also proposes paying a customer dividend of 582 million kroner and allocating 51 million kroner to donations.
“We place great emphasis on distributing significant funds to the local community. Customer dividends are an effective way to give back to the community we are a part of, along with gift allocations and the activities of the savings bank foundations,” said Aasen.
Despite the strong results, the bank is taking steps to reduce costs.
COSTS MUST BE CUT: Costs and man-years will be reduced. The bank aims to have 70 fewer employees by the finish of 2027. Photo: Jo E. Brenden
Staff Reduction Planned
The bank implemented a hiring freeze at the end of 2025.
“Together with natural attrition, this will lead to a reduction in the number of man-years,” said Aasen.
The bank plans to reduce the number of full-time equivalents by 70 from its current level, with the goal of completing this by the end of 2027.
“Redundancy packages will be considered,” Aasen stated.
According to Aasen, 2026 will be a year of consolidation where the bank will begin to reap the benefits of its investments. In light of the bank’s cost development in the past year and the profitability target, the bank’s board emphasizes the demand for good cost control.
The board aims for a cost ratio of under 40 percent for the group, excluding merger costs.
Focus on Cost Control
“2026 will be a year of consolidation where we begin to reap the benefits of the investments,” said Aasen.
In light of the bank’s cost development in the past year and the established profitability target, the bank’s board emphasizes the importance of good cost control. The board has therefore adopted a target of a long-term cost ratio of under 40 percent for the group, excluding merger costs.
The board also expects that the group’s costs in 2027 will not exceed the costs in 2025, again excluding merger costs.
In working to achieve the cost target, the bank will work with several measures. Technological improvements that will increase efficiency, as well as adjustments in operations along the way. Further such adjustments are now being announced.
“In the fourth quarter, the division structure of the bank was changed, resulting in fewer divisions and a reduction in the number of members in the group management from eleven to eight. The bank has also adjusted the office structure and made changes to the customer center, which includes consolidating the teams at the customer center in fewer locations,” said Aasen.
Loss costs were 128 million kroner in the fourth quarter, SpareBank 1 Østlandet stated in the press release. This is primarily due to a few problematic engagements in the construction industry, where the bank has previously made provisions.
Operating expenses in the fourth quarter of 2025 were 842 million kroner. This is partly due to merger costs and one-off costs, but also an increase in IT costs. Costs in 2025 were 8.3 percent higher than in 2024.
First Full Year Post-Merger
2025 has been a year of investment for the bank. During the year, a permanent office was opened in Drammen.
“The focus on Private Banking has been strengthened both in the capital region and Inland Norway, and we are ready to take an increasing share of this important and growing market,” said CEO Aasen.
The merger with Totens Sparebank has also gone well, and technical merger is planned for June, they stated in the press release.
“We have rounded our first year as a merged bank with Totens Sparebank. The merger has gone beyond expectations, and we are on track to deliver on the promises in the merger plan. At the same time, the merger provides very good business opportunities. To take advantage of this potential, we are strengthening our presence in the Gjøvik region,” said Aasen.
