Bustadkreditt Sogn og Fjordane reports strong Q3 profit despite dip in net interest income

Bustadkreditt Sogn og Fjordane (BSF) released its unaudited interim report for Q3 2025, revealing a pre-tax profit of NOK 181 million and a profit after tax of NOK 141.2 million. This translates to an annualised return on equity of 8.25%. While net interest income decreased by 8.2% to NOK 187.1 million compared to the first nine months of the previous year, the company maintained a strong capital adequacy ratio of 38.86%.

The company's total assets stood at NOK 21.4 bn as of September 30, 2025, marking a 19.1% decline over the past 12 months. Gross loans to customers totaled NOK 20.7 bn, with 88.6% being variable-rate loans and 16.1% flexible mortgages. The weighted average loan-to-value ratio was 50.2%, and 70% of the loan portfolio had a loan-to-value ratio below 60%, indicating a low-risk profile.

Operating expenses increased slightly to NOK 11.3 million from NOK 10.8 million in Q3 2024, resulting in a cost-to-income ratio of 5.96%. The company recognized a NOK 2.5 million impairment gain for changes in expected credit losses, with total loss allowance at NOK 25.7 million. BSF issued NOK 16.7 bn in covered bonds and had NOK 109.6 million in substitute assets at quarter-end.