Pareto Bank posts strong Q3 profit despite lending volume drop

Pareto Bank ASA announced a net profit after tax of NOK 176.8 million for Q3 2025, a slight increase from NOK 173.2 million in Q3 2024. This performance translated to a return on equity of 13.0% and earnings per share of NOK 2.13. Net interest income, however, decreased to NOK 287.2 million, down NOK 25.8 million year-over-year, primarily due to lower average lending volumes, which fell by 7% quarter-on-quarter.

Lending to customers stood at NOK 18,983 million by quarter-end, a reduction of NOK 266 million from the previous quarter. The bank's common equity tier 1 (CET1) ratio strengthened to 21.3%, significantly above its long-term target of 16.3%, supported by reduced lending exposure and improved liquidity.

Pareto Bank anticipates a flat development in exposure for Q4, with continued pressure on new lending volumes in the challenging new-build housing market despite recent interest rate cuts.