Sparebank 1 Ostlandet · OSL:SPOL
Sparebank 1 Ostlandet — SpareBank 1 Østlandet — Q4 2024 Earnings Presentation
52 slides from Sparebank 1 Ostlandet's earnings presentation, 2025
Slide 1: 4Q Company presentation
4Q Company presentation Fourth quarter 2024
Slide 2: Introduction, macro and financials, asset quality and funding
1 Introduction 2 Macroeconomic backdrop and main financials 3 Asset quality and funding plans 4 Appendix 2
Slide 3: The bank in brief
The bank in brief • Norway’s fourth largest savings bank • Operations in Eastern Norway, focusing on the Inland and extended capital regions • Head office in Hamar (90 minutes drive north of Oslo) – 41 bank branches and appr. 1,300 FTEs as of 31 Dec-24. • Long history of being among the best capital
Slide 4: Eastern Norway is our home market
Eastern Norway is our home market 4
Slide 5: Straightforward banking, diversified income stream
Straightforward banking, diversified income stream Core banking Subsidiaries Alliance and brands 5
Slide 6: Merger with Totens has been completed
Merger with Totens has been completed Legal merger was completed on 1 November. The integration work continues, with a special focus on taking care of customers and employees in the new bank. • Toten portfolio developing well despite strong competition. SpareBank 1 platform provides a good basis for
Slide 7: Part of the SpareBank 1 Alliance
Part of the SpareBank 1 Alliance Provides operational and financial economies of scale as well as diversified product offering SpareBank 1 Sør- SpareBank 1 Other SpareBank 1 SpareBank 1 SMN SpareBank 1 SNN Norge Østlandet Banks Retail and corporate banking in Norway – second largest financial group
Slide 8: 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 9: Macroeconomic backdrop and main financials
1 Introduction 2 Macroeconomic backdrop and main financials 3 Asset quality and funding plans 4 Appendix 9
Slide 10: Challenging macroeconomic backdrop
Challenging macroeconomic backdrop Improvement in sentiment halted after summer. More bankruptcies, to pre-pandemic levels, as in the rest of the country. The unemployment rate has also increased, but to still moderate levels and in line with the rest of the country. SpareBank Norges Banks 1 Østland
Slide 11: Healthy activity levels in the housing market
Healthy activity levels in the housing market Increased demand for loans, especially evident among households. Activity in the housing market has been high throughout the fourth quarter and into 2025. Price growth is also high, particularly in the capital region. Existing home sales (no. of homes),
Slide 12: Long history of solid returns…
Long history of solid returns… Return on equity (%) and total assets (NOK bn) 2 2 1 10 20 2000 2002 200 200 200 2010 2012 201 201 201 2020 2022 202 R E Average R E otal Assets 12
Slide 13: … high capital levels…
… high capital levels… Capital adequacy, % 1 1 0 1 1 2 1 2 1 0 1 1 1 1 1 1 2 1 1 1 1 1 1 3 1 1 2 1 1 1 1 1 1 Actual CE 1 13 1 13 2 Pillar 1 11 Pillar 2 uffer Re uirements Management uffer 3 Leverage Ratio 2000 2001 2002 2003 200 200 200 200 200 200 2010 2011 2012 2013 201 201 201 201 201 201 2020 20
Slide 14: … and low loan losses
… and low loan losses Impairments on loans as a percentage of gross loans * 30 20 10 0 13 00 00 10 1 1 1 1 1 3 1 1 1 2001 2003 200 200 200 2011 2013 201 201 201 2021 2023 202 S are ank 1 stlandet Peers Source: Bank reports and SpareBank 1 Markets. Peers: NONG, SRBANK, MING, MORG, SVEG (*) Included l
Slide 15: Asset quality and funding plans
1 Introduction 2 Macroeconomic backdrop and main financials 3 Asset quality and funding plans 4 Appendix 15
Slide 16: Well diversified loan portfolio
Well diversified loan portfolio Lending to customers per sector (in %) 0.2 Corporate market otel and restaurants 0.2 28.8 % / 66,654 1.0 rans ort and communication 1.0 1. Power and water su ly ther 1. 1. holesale and retail trade 1. 3.1 uilding and constructions 3.2 3. Commercial services Public sec
Slide 17: 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 (%) (3 ) Inland 2 .0 (2 ) slo .2 1 1 (2 ) Akershus 1 . 0 ( ) ther areas 1 . 1 11 17
Slide 18: Mortgage loans by geography
Mortgage loans by geography Retail lending by county (share in %/NOK million) Change last 12 months (%) (3 ) Inland 2 . (2 ) slo 0 . 0 (31 ) Akershus 13 3 1 . 13 3 r ndelag estland estfold 10 ( ) 1 ther areas ther areas 13 21 M re og Romsdal 1 .3 13 21 2 Rogaland 30 2 uskerud stfold 18
Slide 19: Corporate market lending by geography
Corporate market lending by geography Corporate lending by county (share in %/NOK million) Change last 12 months (%) ( ) Inland 23. 31 031 (32 ) slo 1. 21 0 3 (1 ) Akershus 20. 2 1 ( ) ther areas 1 .3 2 0 19
Slide 20: 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.** 0 23 12 0 22 1 2 0 20 31 222 13 1 33 01 2 3 2 1 22 23 2 202 1 03 321 22 4 1 30 1 133 11 0 0 12 0 2020 2021 2022 2023 202 3 1 1 20 3
Slide 21: Retail: Mortgage collateral
Retail: Mortgage collateral Share of LTV by exposure – retail mortgages* Share of lending according to LTV - retail mortgages* . .2 3 .0 11. .1 2. 0. 0.2 nder 0 L 0 L 100 L ver 100 L 0 0 0 0 0 0 * Including loans transferred to SpareBank 1 Boligkreditt. 21
Slide 22: Mortgage collateral, Toten portfolio
Mortgage collateral, Toten portfolio Share of LTV by exposure – retail mortgages* Share of lending according to LTV - retail mortgages* 2 3 1 20 22 02 01 nder 0 L 0 0 L 0 0 L 0 100 L ver 100 L 0 0 0 0 0 0 * Excluding loans transferred to Eika Boligkreditt and Totens Sparebank Boligkreditt. 22
Slide 23: 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 1 2 2 1 1 1 2 0 0 0 0 0 3 3 1 1 Share of new mortgage a rovals (volume) Average L at the ti
Slide 24: 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.)* 1 1 0 2 10 0 10 2 3 1 3 1 32 203 332 11 0 10 13 3 201 2020 2021 2022 2023 202 23 1 2 2 2 3 2 2 se of o erating credit facility Annual average 30 0 days Arrear
Slide 25: CRE: Attractive, diversified portfolio
CRE: Attractive, diversified portfolio 97 % of tenants have contracts that are 100 % indexed (to CPI). * Rental space attractivity Geographical distribution of rental space LTV for CRE portfolio Acce table slo 1 Normal Inland 1 3 Central 20 Akershus 1 est ther 31 3 2 2 4 Share of rental space accord
Slide 26: 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* 1.0 0. 20.2 1 . . . 3. 0. 0.2 0 0 30 30 0 0 0 0 0 0 0 0 * Based on numbers for parent bank excl. Toten portfolio, w
Slide 27: Size concentration risk in the lending book is low
Size concentration risk in the lending book is low Retail and corporate loans by size (% share)* Retail market Corporate market 0.2 23. 21. 2 . 1 . 1 .2 1 . 0 11. .2 . 1 . 1 MN 1 2 MN 2 MN 10 MN 10 MN 10 MN 10 0 MN 0 100 MN 100 300 MN 300 00 MN 00 MN * Including loans transferred to the covered bond
Slide 28: Loan loss provisions
Loan loss provisions Quarterly loan loss provisions an l ss s ns ll n 0 1 0 31 0 31 02 Retail market 11.3 2. .0 01 01 0 12 0 10 0 11 Cor orate market 1.0 1.1 30. 13 122 S are ank 1 inans stlandet . 11. 12. 10 3 an l ss s ns ll n 3 3 Change in model based loss rovisions 1 .0 1 .1 . 33 Change individu
Slide 29: 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.) 2 . 2 3. 3.1 3.2 2.2 1. 1 .1 21 20 1 .2 1 3 1 . 13
Slide 30: Aa3 Moody’s Senior Unsecured rating with stable outlook
Aa3 Moody’s Senior Unsecured rating with stable outlook Main takeaways from the latest Credit Opinion: Rating Action – 5 March 2020: • “Solid asset quality on the back of a relatively low- • Moody’s has upgraded the BCAs and deposit/debt ratings with risk retail mortgage portfolio” stable outlook fo
Slide 31: Funding
Funding Funding mix Funding profile excl. covered bonds 31
Slide 32: Subordination cap also in Norway
Subordination cap also in Norway MREL and Subordination Requirement 3 3 1 3 3 3 2 3 30 1 1 0 Loss Absorbing Reca italisation otal MREL Status MREL Pilar 1 2 Pilar 2 2 Combined buffer otal Subordination Status amount amount re uirement re uirement re uirement subordination 32
Slide 33: Good feedback on our work on CSR
Good feedback on our work on CSR 33
Slide 34: Green lending
Green lending Green share of lending is important to reach our net zero emissions objective.* Green loans per 31 December 2024, MNOK Share of green lending, % Residential buildings 30 00 Residential mortgages Commercial real estate 21.2 21.1 20. 2.3 Commercial buildings 0 20. 1. 2.1 2.3 0. 0.0 20.0
Slide 35: Allocation Report 4Q2024
Allocation Report 4Q2024 Portfolio date 31 December 2024 Eligible Green Loan Portfolio Green Financing Amount RANDI oppdaterer Portfolio Amount (NOK Growth Instrument (NOK million) 4Q 2024 (ISIN) Rank Currency Issue Date Due Date million) Residential buildings (Top 15 % and EPC A for buildings build
Slide 36: Appendix
1 Introduction 2 Macroeconomic backdrop and main financials 3 Asset quality and funding plans 4 Appendix 36
Slide 37: 4Q: An eventful quarter
4Q: An eventful quarter Return on equity (%) • Return on equity of 11.5 %. The quarter was characterized by higher than normal impairment charges and merger- 20. related expenses, but underlying profitability otherwise 1 . developed well. 1 .2 13. 12. 12.2 11.3 11. • Good growth in net interest inco
Slide 38: 2024: Strong profitability and high cash dividends
2024: Strong profitability and high cash dividends Board of Directors is proposing a cash dividend to owners of 10.3 NOK per ECC. Return on equity per year, % Cash dividend and dividend share, NOK and % 2 1 . 0 0 10.30 1 0 0 12. 11. 11.3 . 0 10. 10. 0 10.2 10.1 . 0 ividend er ECC .00 ividend share .
Slide 39: Financial targets
Financial targets And achievements in 2024. > 13 % > 50 % 16.1 % Profitability Dividends Solidity Achievements year-to-date 15.8 % 62 % 16.8 % 39
Slide 40: Retail market: Strong growth
Retail market: Strong growth Record strong volume growth in Oct-Nov. Strong development continues into 2025, with a doubling of the number of mortgage applications in January. Solid development in commission income, across the board. Loan volume and growth (NOK bill. and %)* Deposit volume and growt
Slide 41: 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 give to high commissions. Real estate commissions also rising strongly. The group is merging its three brokers into EiendomsMegler 1 Østlandet. Portfolio and
Slide 42: Corporate market: Margin improvement
Corporate market: Margin improvement Low general market growth and nearly flat development in the loan portfolio excluding Totens. High competition characterizes the market. Margin improvement on the loan portfolio and good underlying risk development. Loan volume and growth (NOK bill. and %)* Depos
Slide 43: Income statement
Income statement Chg. in operating profit after tax (NOK mill.), from previous quarter Chg. in operating profit after tax (NOK mill.), from last year 3 1 0 1 0 10 0 3 0 2 01 230 1 1 01 1 2 01 3 2 Net interest Net Net rofit otal Im airment on a e ense 2 23 Net interest Net Net rofit otal Im airment o
Slide 44: Net interest income
Net interest income Good underlying development in net interest income. Proforma calculations imply an increase in NII from the previous quarter of 4.7 %, including commissions from covered bond companies. Net interest income incl. commissions from covered bond companies (MNOK and %) 2.31 2.2 2.2 2.
Slide 45: Commission income
Commission income Net commissions and other income (NOK million) 3 3 3 3 ll n Commission income from credit cards 1 . 1 .2 1 .1 Payment services .3 .2 .3 32 320 Commissions from insurance . 0.1 Commissions from savings 12. 11. .0 Commission from real estate brokerage .2 103. 3. 2 2 2 Income from acc
Slide 46: Profits in subsidiaries
Profits in subsidiaries Profits after tax in subsidiaries (NOK million) ll n a te ta es S arebank 1 inans stlandet AS Grou . 3. 3 . 1 1 otens oligkreditt AS .0 2 23 1 EiendomsMegler 1 Innlandet AS 1. 2. 0. EiendomsMegler 1 slo Akershus AS Grou 1. .0 .2 S are ank 1 orretningsPartner stlandet AS Grou
Slide 47: Profits in joint ventures
Profits in joint ventures Profits after tax in joint ventures (NOK million) 11 es lt s a e ll n a te ta es ne s S are ank 1 Gru en AS Grou 12. 3.1 3 .3 32.2 S are ank 1 orvaltning AS .3 .0 3. 3. S are ank 1 oligkreditt AS 23.2 23. 3 .1 2 .1 S are ank 1 N ringskreditt AS 10. 3. 2. 1.0 redittbanken AS
Slide 48: Net income from financial assets and liabilities
Net income from financial assets and liabilities Net income from finance (NOK million) 30 ll n ividends from shares and other e uity instruments 1 . 0. 0. Share of rofit or loss of associates and oint ventures 10 . 11.3 0. 230 1 2 1 0 11 Net rofit from other financial assets and liabilities 1 . 11 .
Slide 49: Operating expenses
Operating expenses Operating expenses (NOK million) 1 332 1 22 1 22 1 23 ll n 11 11 1 11 11 2 1 121 Personnel e enses 3 3. 3 3.2 31 . e reciation amortisation . 2 . 3 . 3 IC e enses 11 . 101.3 . Marketing e enses 30. 23.2 23.0 2 3 33 1 erating e enses real estate 1 .2 1 . 1 . Merger costs 1 .3 .3 .1
Slide 50: Capital levels
Capital levels Well above regulatory requirements. Common equity Tier 1 capital ratio 1 .0 1 . 1 . 1 .0 1 . 1 .1 1.0 CE 1 ca ital ratio 1 . 1 . 1 .0 ier 1 ca ital ratio 1 . 1 . 1 .2 1 .1 Ca ital ade uacy ratio 20. 21.0 1 . Leverage Ratio .3 .2 .0 2020 2021 2022 2023 202 Re uirement er 2 Common e uit
Slide 51: Expected effects of new capital adequacy regulation
Expected effects of new capital adequacy regulation ESTIMATE Estimated effects on CET-1 of changes in capital adequacy regulations, based on balance sheet at 4Q24 03 0 1 0 0 1 CE 1 at 2 CRR 3 e cl.. otens CRR 3 otens e cl. Eika oligkreditt New risk weight floor for housing Estimated new CE 1 mortgag
Slide 52: Contact details
Contact details investor@sb1ostlandet.no Cathrine Mordal Head of Treasury +47 480 02 537 cathrine.mordal@sb1ostlandet.no Randi Nordstad Portfolio Manager Treasury +47 453 92 808 randi.nordstad@sb1ostlandet.no Geir-Egil Bolstad CFO +47 918 82 071 geir-egil.bolstad@sb1ostlandet.no Bjørn-Erik R. Orskau
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