Sparebank 1 Ostlandet · OSL:SPOL
Sparebank 1 Ostlandet — Q2 2025 Earnings Presentation
47 slides from Sparebank 1 Ostlandet's earnings presentation, Aug 7, 2025
Slide 1: Quarterly presentation Second quarter 2025
2Q Quarterly presentation Second quarter 2025
Slide 2: Strong profitability
2Q: Strong profitability Return on equity (%) • Return on equity of 14.9 %. Strong contributions from all income lines and very low loan losses. • Solid growth in net interest income. Continued high activity in the retail market with intense competition. More moderate corporate market activity, but
Slide 3: Financial targets
Financial targets > 13 % > 50 % 16.1 % Profitability Dividends Solidity Achievements year-to-date 14.4 % 62 % 18.3 % 3
Slide 4: Global turmoil, but regional signs of improvement
Global turmoil, but regional signs of improvement Activity in market area has been lower than elsewhere in Norway, but looks to be recovering. Rate cut from Norges Bank will help rate-sensitive sectors. Activity in housing market is still high. Norges Banks regional indicators Number of bankruptcies
Slide 5: Retail market: Another strong quarter
Retail market: Another strong quarter Proforma excl. margins High activity with large number of mortgage applications. The best union offers in the market contributes especially positively and market share has increased. Strong non-interest income, especially from insurance sales. Loan volume and gr
Slide 6: Lower interest rates sharpens focus on commissions
Lower interest rates sharpens focus on commissions Bank is leading in insurance sales. Good sales, insurance price adjustments, and low claims contributes positively. Merged real estate company delivers strong first half year, with increasing market shares. Insurance commissions, 4Q rolling sum, NOK
Slide 7: Corporate market: Moderate activity levels
Corporate market: Moderate activity levels Proforma excl. margins Moderate growth in market area and the loan portfolio has been stable. Signs of increased investment appetite in interest-sensitive sectors. Very high CM customer satisfaction, which will benefit the bank when the market turns. Loan v
Slide 8: New initiatives and leading customer service
New initiatives and leading customer service Opening of finance centre in Drammen Developing strong finance centre in Gjøvik Leading customer service New and important market area Opening of new customer service centre Ranked top-3 for the Real estate branches being Important element in growth initi
Slide 9: Revised strategic vision and ambition
Revised strategic vision and ambition Together we develop Eastern Norway 9
Slide 10: Financial accounts
2Q Financial accounts Second quarter 2025 10
Slide 11: Income statement
Income statement Proforma Chg. in operating profit after tax (NOK mill.), from previous quarter Chg. in operating profit after tax (NOK mill.), from last year * Net interest income includes commission fees from covered bond companies. 11
Slide 12: Net interest income
Net interest income Proforma NII incl. commission fees from the covered bond companies rose by 3.2 % from the same period in 2024. New income model in covered bond companies contributed 19 MNOK in increased income in 2Q-25. Net interest income incl. commissions from covered bond companies (MNOK and
Slide 13: Commission income
Commission income Proforma Net commissions and other income (NOK million) * Excludes commission income from the covered bond companies. 13
Slide 14: Profits in subsidiaries
Profits in subsidiaries Proforma Profits after tax in subsidiaries (NOK million) * EiendomsMegler 1 Oslo Akershus AS, and EiendomsMegler 1 Innlandet AS merged with accounting effect from January 1, 2025. Comparative figures are shown aggregated. 14
Slide 15: Profits in joint ventures
Profits in joint ventures Profits after tax in joint ventures (NOK million) 15
Slide 16: Net income from financial assets and liabilities
Net income from financial assets and liabilities Proforma Net income from finance (NOK million) 16
Slide 17: Operating expenses
Operating expenses Proforma 40 MNOK in increased ICT expenses from court ruling in the case b/w SpareBank 1 Utvikling and Tietoevry. In addition, running ICT expenses Operating expenses (NOK million) will increase by about 15 MNOK annually going forward. 17
Slide 18: Operating expenses
Operating expenses Changes in operating expenses (NOK million), from last year Quarterly cost income ratios, excl. financial items Proforma 18
Slide 19: Loan loss provisions
Loan loss provisions Proforma Quarterly loan loss provisions 19
Slide 20: Exposures per stage and credit loss provision ratio in stage 3
Exposures per stage and credit loss provision ratio in stage 3 Merger with Totens contributed in isolation to an increase in gross loans in stage 3 loans of just above NOK 650 mill. Exposure by stages (% of gross loans)* Loans in Stage 3 (NOK mill.) * Excluding loans transferred to covered bond comp
Slide 21: A solid loan portfolio
A solid loan portfolio Bank closely follows up payment problems, but far fewer customers than expected have problems. Share of retail customers with interest-only mortgage, %* Mortgages to debt collection (volume)* Use of corporate credit facilities (parent bank)* LTV commercial real estate* * Based
Slide 22: Capital levels
Capital levels Larger positive effect from CRR3 on CET-1 than originally estimated, but larger negative effect in 3Q than previously estimated from higher Common equity Tier 1 capital ratio risk weight floor. Net effect of regulatory changes is estimated to be somewhat smaller than previously though
Slide 23: Together we develop Eastern Norway
Together we develop Eastern Norway
Slide 24: Why invest in SPOL?
Why invest in SPOL? UNCOMPLICATED \/, Uncomplicated bank | [ | — BRAND — O Strong and distinct brand with low credit risk with high customer satisfaction SOLID Solid bank with significant growth / \ capacity ~~) SUSTAINABILITY Recognised and clear driver of sustainable transition PROFITABLE High ear
Slide 25: Contact details
Contact details Klara-Lise Aasen CEO klara-lise.aasen@sb1ostlandet.no investor@sb1ostlandet.no Geir-Egil Bolstad CFO +47 918 82 071 geir-egil.bolstad@sb1ostlandet.no Bjørn-Erik R. Orskaug Head of Investor Relations +47 922 39 185 bjorn-erik.orskaug@sb1ostlandet.no 25
Slide 26: Disclaimer
Disclaimer This presentation contains forward- ’ events and potential financial performance. Although SpareBank 1 Østlandet believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Ac
Slide 27: Appendix
Appendix 27 reBank q @STLANDET
Slide 28: Green lending
Green lending Green share of lending is important to reach our net zero emissions objective.* Green loans per 30 June 2025, MNOK Share of green lending, % Residential mortgages Commercial real estate = (Green ratio) * Green loans are defined on page 122 in 2024 Annual report. 28
Slide 29: Good feedback on our work on CSR
Good feedback on our work on CSR 29
Slide 30: Headcount
Headcount Full-time equivalents in parent bank and subsidiaries • * EM1 Innlandet and EM1 Oslo/Akershus merged with accounting effect on January 1, 2025. In the figure, EM1 Østlandet corresponds to EM1 Oslo/Akershus 30 before January 1.
Slide 31: Group volume growth and margin development
Group volume growth and margin development Proforma excl. margins Loan volume and growth (NOK bill. and %)* Deposit volume and growth (NOK bill. and %) Margins, parent bank (%)** 4 * Includes loans transferred to the covered bond companies. ** Based on allocation of customer loans between retail and
Slide 32: Well diversified loan portfolio
Well diversified loan portfolio Lending to customers per sector (in %) Corporate market 28.1 % / 66,243 Retail market 71.9 % / 169,484 32
Slide 33: The Group's lending by geography
The Group’s lending by geography Lending to customers per county (share in %/NOK million) Change last 12 months (%) 33
Slide 34: Mortgage loans by geography
Mortgage loans by geography Retail lending by county (share in %/NOK million) Change last 12 months (%) 34
Slide 35: Corporate market lending by geography
Corporate market lending by geography Corporate lending by county (share in %/NOK million) Change last 12 months (%) 35
Slide 36: Rate sensitive volume
Rate sensitive volume Loans and deposits, NOK bill. Securities, NOK bill.* * Covered bonds refer to loans transferred to covered bond companies. 36
Slide 37: Rate fixings of funding and security holdings
Rate fixings of funding and security holdings Net rate fixings per month, share of quarter** NIBOR and commission rate SB1 Boligkreditt, % * Includes rate fixings on liquidity portfolio, debt securities issued on own balance, and interest rate/cross currency basis swaps. 37
Slide 38: Retail: Indicators of underlying credit quality
Retail: Indicators of underlying credit quality Retail customers with interest-only mortgage* Mortgages to debt collection (volume)* Arrears retail market, NOK mill.** 4 * Based on numbers for parent bank excl. Toten. ** Does not include loans transferred to SpareBank 1 Boligkreditt. 38
Slide 39: Retail: Mortgage collateral
Retail: Mortgage collateral Share of LTV by exposure – retail mortgages* Share of lending according to LTV - retail mortgages* * Including loans transferred to SpareBank 1 Boligkreditt. 39
Slide 40: Stable low LTVs in new mortgage approvals
Stable low LTVs in new mortgage approvals Share of new mortgage approvals and average LTV per period and county (Inland county divided b/w old Hedmark and Oppland counties) Oslo Akershus Hedmark Oppland Other Based on numbers for parent bank excl. Toten portfolio. 40
Slide 41: Corporate: Indicators of underlying credit quality
Corporate: Indicators of underlying credit quality Use of corporate credit facilities (parent bank)* Corp. arrears below 90 days (NOK mill.)* * Based on numbers for parent bank excl. Toten portfolio, with exposures of at least NOK 10 mill. 41
Slide 42: CRE: Attractive, diversified portfolio
CRE: Attractive, diversified portfolio 96 % of tenants have contracts that are 100 % indexed (to CPI). * Rental space attractivity Geographical distribution of rental space LTV for CRE portfolio 4 Share of rental space according to type Share of rental space at different indexation 42 * Based on num
Slide 43: CRE: Solid collateral
CRE: Solid collateral Loan portfolio is well positioned for higher yields in the commercial real estate market. Share of LTV by exposure – CRE* Share of lending according to LTV – CRE* * Based on numbers for parent bank excl. Toten portfolio, with exposures of at least NOK 10 mill. 43
Slide 44: Projects: Low activity for building projects
Projects: Low activity for building projects Required pre-sales normally 60 %, depending for example on equity, experience and complexity. Loans to real estate projects, building and construction, NOK bill.* Draw on construction loans, volume-weighted, share in %, * * Based on numbers for parent ban
Slide 45: Profit allocation for 2024
Profit allocation for 2024 In line with dividend policy, for owners and society (through primary capital) ILLUSTRATION Gifts and donations Profit after controlling interest The foundations NOK 3,206 mill. Totens Sparebank- Sparebank- stiftelsen stiftelse Hedmark Owners Primary capital NOK 121 mill.
Slide 46: SPOL
SPOL Price development (dividend adjusted), index = 100 pr 30 Jun-23 Turnover and SPOL price, monthly 1) SpareBank 1 Østlandet was listed on 13 June 2017. 2) APMs are defined in the quarterly report and the factbook. 3) Profit after tax for controlling interests x Equity capital certificate ratio*/
Slide 47: Together we develop Eastern Norway
Together we develop Eastern Norway
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