According to a report by Norway's Financial Supervisory Authority, banks in the country experienced a mild decline in their profits and returns in 2025. The collective pre-tax profit for Norwegian banks was 1.4 percent of average managed capital, which is a slight decrease of 0.1 percentage points compared to the previous year. This indicates a stable financial performance despite the minor downturn.

The report highlights that the increase in loan losses, although modest, contributed to this decline in profits. Two smaller banks reported losses in 2025, showcasing that the pressure on the banking sector is not uniform and that smaller institutions may be more vulnerable to economic fluctuations. However, the overall banking sector remains resilient.

The implications of these results suggest that while the banking sector in Norway continues to perform well, there are emerging challenges that could affect profitability in the future. The need for banks to manage risk in their loan portfolios is becoming increasingly crucial as economic conditions fluctuate and competition intensifies, particularly for smaller banks that may struggle more during downturns.