Sparebank 1 Ostlandet · OSL:SPOL
Sparebank 1 Ostlandet — SpareBank 1 Østlandet — Q1 2025 Earnings Presentation
53 slides from Sparebank 1 Ostlandet's earnings presentation, 2025
Slide 1: Company presentation First quarter 2025
1Q Company presentation First quarter 2025
Slide 2: Agenda
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: 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 7: Bank takes a wide-reaching social responsibility
Bank takes a wide-reaching social responsibility Sustainable local communities are central to the strategy. Bank contributes through customer dividends, gifts, scholarships, and sponsorships. The foundations, as the largest owners, distribute large funds from their ownership. Paid customer dividends
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: Agenda
1 Introduction 2 Macroeconomic backdrop and main financials 3 Asset quality and funding plans 4 Appendix 9
Slide 10: Global turmoil, but regional signs of improvement
Global turmoil, but regional signs of improvement Norges Bank’s regional indicators Number of bankruptcies, year-to-date (1Q each year), market area Unemployment (registered), % Source: Regional Network from Norges Bank 10
Slide 11: Still high activity levels in the housing market
Still high activity levels in the housing market Credit growth, 12-month in % Existing home sales (no. of homes), monthly, market area Unsold homes (std. deviations) and sales prices vs asking prices (%), market area 11
Slide 12: Long history of solid returns…
Long history of solid returns… Return on equity (%) and total assets (NOK bn) 2 1 1 1 10 20 2000 2002 200 200 200 2010 2012 201 201 201 2020 2022 202 1 202 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 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 Leverage Ratio 2000 2001 2002 2003 200 200 200 200 200 200 2010 2011 2012 2013 201 201 201 201 201 201 2020
Slide 14: … and low loan losses
… and low loan losses Impairments on loans as a percentage of gross loans * 30 20 10 00 00 0 03 10 1 1 1 1 1 3 1 1 1 2001 2003 200 200 200 2011 2013 201 201 201 2021 2023 202 202 S are ank 1 stlandet Peers Source: Bank reports and SpareBank 1 Markets. Peers: NONG, SRBANK, MING, MORG, SVEG (*) Includ
Slide 15: Agenda
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 28.5 % / 66,186 1.0 rans ort and communication 1.0 1. Power and water su ly ther 1. 1. holesale and retail trade 1. 3. uilding and constructions 3.1 3.2 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 3.0 3 (2 ) slo .0 30 2 (2 ) Akershus 3. 0 02 ( ) ther areas 1 . 1 3 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 3.0 2 (2 ) slo 1 3 .2 1 3 (31 ) Akershus 1 .2 1 r ndelag estfold estland 10 ther areas ( ) 1 ther areas 13 M re og Romsdal 12. 13 1 2 Rogaland 32 uskerud 2 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 3.1 2 (33 ) slo 2. 21 1 (1 ) Akershus 0. 10 ( ) ther areas 1 . 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 0.22 12 0.20 13 1 33 0.1 1 22 23 202 10 0 1 03 321 2 0 22 4 3 33 2 1 133 11 0 21 0 12 0 3 1 21 3 21 1 22 3 22 1 23 3 23 3 2 1 2
Slide 21: Retail: Mortgage collateral
Retail: Mortgage collateral * Including loans transferred to SpareBank 1 Boligkreditt. Share of LTV by exposure – retail mortgages* Share of lending according to LTV - retail mortgages* . . 1 3 . 12.2 3.3 . 0. 3 0.3 nder 0 L 0 L 100 L ver 100 L 0 0 0 0 0 0 21
Slide 22: Stable low LTVs in new mortgage approvals
Stable low LTVs in new mortgage approvals Based on numbers for parent bank excl. Toten portfolio. Oslo Akershus Hedmark Oppland Other 1 2 2 3 1 1 2 2 1 0 0 0 0 3 3 0 1 Share of new mortgage a rovals (volume) Average L at the time of a roval 31 31 31 31 32 32 2 30 30 30 31 31 2 2 2 2 2 2 2 2 2 201 20
Slide 23: 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 0 13 2 10 0 3 1 1 32 203 332 11 0 10 13 3 0 201 2020 2021 2022 2023 202 1 2 2 2 3 2 2 1 2 se of o erating credit facility Annual average 30 0 days Arrea
Slide 24: CRE: Attractive, diversified portfolio
CRE: Attractive, diversified portfolio Rental space attractivity Geographical distribution of rental space LTV for CRE portfolio Acce table slo 1 Normal Inland 20 33 Central 20 Akershus 3 est ther 32 3 2 4 Share of rental space according to type Share of rental space at different indexation .2 Resid
Slide 25: CRE: Solid collateral
CRE: Solid collateral Share of LTV by exposure – CRE* Share of lending according to LTV – CRE* 1.0 0. 20.3 1 . . .2 3. 0.2 0. 0 0 30 30 0 0 0 0 0 0 0 0 Loan portfolio is well positioned for higher yields in the commercial real estate market. * Based on numbers for parent bank excl. Toten portfolio,
Slide 26: 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 .0 1 .1 1 . 2 12.3 .3 . 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
Slide 27: Loan loss provisions
Loan loss provisions Proforma Quarterly loan loss provisions 03 0 30 0 31 02 an ss s ns n 01 0 13 0 13 0 11 0 12 Retail market 1. 10. 3.1 1 Cor orate market .3 102.2 23.2 123 120 S are ank 1 inans stlandet . . 1 . an ss s ns n 1 2 Change in model based loss rovisions 33.0 1 .3 0.1 Change individual
Slide 28: Exposures per stage and credit loss provision ratio in stage 3
Exposures per stage and credit loss provision ratio in stage 3 Exposure by stages (% of gross loans)* Loans in Stage 3 (NOK mill.) 2 . 2 2 .2 23 3 3.1 3.2 2.2 2.2 1. 1 .1 21 20 1 .2 1 3 1 . 10. 10. 10. 10.0 .3 0 3 1. 2 322 1. 1. 1. 1. 1 2 2 2 3 2 2 1 2 1 2 2 2 3 2 2 1 2 Stage 1 (L S) Stage 2 (R S) S
Slide 29: 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: • “Strong capital levels provide a good loss absorbing • Moody’s has upgraded the BCAs and deposit/debt ratings with buffer” stable outlook for SpareBank 1 Østlandet a
Slide 30: Funding
Funding Funding mix Funding profile excl. covered bonds. MNOK 30
Slide 31: Subordination cap also in Norway
Subordination cap also in Norway MREL and Subordination Requirement 3 3 1 3 3 3 31 2 3 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 31
Slide 32: Good feedback on our work on ESG
Good feedback on our work on ESG 32
Slide 33: Green lending
Green lending Green loans per 31 March 2025, MNOK Share of green* lending, % Residential mortgages Commercial real estate Residential buildings 31 0 45.0% 21.4% 42.7% 42.3% 42.1% 41.9% 21.2% 21.1% 40.5% 20.8% 39.4% Commercial buildings 23 20.7% 38.6 % 20.0% 36.5 % 19.8% 19.6% 19.3 % 33.7% Renewable
Slide 34: Allocation Report 1Q2025
Allocation Report 1Q2025 Portfolio date: 31 March 2025 Eligible Green Loan Portfolio Green Financing Amount Portfolio Amount (NOK Growth Instrument (NOK million) 1Q 2025 (ISIN) Rank Currency Issue Date Due Date million) Residential buildings (Top 15 % and EPC A for buildings buildt after 1.1.2021) 1
Slide 35: Positioned for more Green Bonds
Positioned for more Green Bonds • Green Bond Framework updated in April 2024 30 000 27 974 Clean Transportation • 67 % of the Green Loan 25 000 Renewable energy Portfolio allocated Forestry Grandfathered renovated buildings 20 000 • 57 % Taxonomy alignment YE 18 721 2024 on all parameters (TSC, Comm
Slide 36: Framework for transition finance
Framework for transition finance Transition finance is essential for accelerating the green transition. It encompasses not only funding activities and objects that already meet the criteria for sustainability but also supporting initiatives that drive sustainable transformation. The bank finance gre
Slide 37: Agenda
1 Introduction 2 Macroeconomic backdrop and main financials 3 Asset quality and funding plans 4 Appendix 37
Slide 38: 1Q: Solid banking operations
1Q: Solid banking operations Return on equity (%) Return on equity of 14.1 %. The first full quarter as a merged 20. bank. Overall, a solid result with good income growth, 1 . moderate impairments, and somewhat lower cost growth. 13. 1 .2 1 .1 12.2 11.3 11. Increased net interest income from the sam
Slide 39: Financial targets
Financial targets > 13 % > 50 % 16.1 % Profitability Dividends Solidity Achievements year-to-date 14.1 % 62 % 17.1 % 39
Slide 40: Retail market: Unusually strong first quarter
Retail market: Unusually strong first quarter Proforma excl. margins Loan volume and growth (NOK bill. and %)* Loan volume and growth (NOK bill. and %) Deposit volume and growth (NOK bill. and %) Margins, parent bank (%)** .1 . . . . . . . .2 3. 1.1 0. 1 3. 1 . 1 .3 1 . 1 1. 3.2 2. 1. 1. 2.1 1.3 .1
Slide 41: Still strong development in commission income
Still strong development in commission income Commission income, MNOK per quarter 100 Mutual funds Life insurance 0 Non life insurance 2 0 2020 2021 2022 2023 202 Significant growth in fund and insurance commissions, the result of a powerful combination of Norway's best mobile bank, a na tional camp
Slide 42: Physically present, leading on customer service
Physically present, leading on customer service Illustration by Vitreo New office in Drammen will open on 12 May. Initiative in Drammen has yielded excellent results so far, similar to Økern. Strengthening the customer service team has meant the bank is leading in customer service within banking. 42
Slide 43: Corporate market: Strong competition
Corporate market: Strong competition Proforma excl. margins Loan volume and growth (NOK bill. and %)* Loan volume and growth (NOK bill. and %) Deposit volume and growth (NOK bill. and %) Margins, parent bank (%)** 2. 1 . 2. .3 13. 2.3 12. . . . .3 3. .1 .2 . 0. .2 3. 3. .3 . . .2 0.1 3. 1.1 4 1.0 0.
Slide 44: Income statement
Income statement Proforma Chg. in operating profit after tax (NOK mill.), from last year Chg. in operating profit after tax (NOK mill.), from previous quarter Chg. in operating profit after tax (NOK mill.), from last year 1 000 0 00 0 00 2 0 00 10 3 121 0 0 00 2 0 00 100 0 2 Net interest Net Net rof
Slide 45: Net interest income
Net interest income Proforma Good underlying development. Change from Q4-24 affected by interest income from problem engagements in 4Q (30 MN ) new income model in covered bond com anies in 1 2 (10 MN ) and two fewer interest days (≈ 2 MN ). Net interest income incl. commissions from covered bond co
Slide 46: Commission income
Commission income Proforma Net commissions and other income (NOK million) n 3 3 Commission income from credit cards . 1 . 1 . 3 0 3 0 3 1 Payment services 3.0 100. 2. Commissions from insurance 3. 0.0 333 Commissions from savings 11. 13. 13.1 Commission from real estate brokerage 10 .3 .2 . 31 Incom
Slide 47: Profits in subsidiaries
Profits in subsidiaries Proforma Profits after tax in subsidiaries (NOK million) n a a s 0 S arebank 1 inans stlandet AS Grou . . . otens oligkreditt AS 3. . .2 31 1 EiendomsMegler 1 Innlandet AS 0. 1. 3.0 EiendomsMegler 1 slo Akershus AS Grou . 1. 0. S are ank 1 orretningsPartner stlandet AS Grou 3
Slide 48: Profits in joint ventures
Profits in joint ventures Profits after tax in joint ventures (NOK million) 11 s s a n a a s n s S are ank 1 Gru en AS Grou 12. 3 .3 3.1 2 . S are ank 1 orvaltning AS .3 . .0 2. S are ank 1 oligkreditt AS 23.2 23. 23. 32. S are ank 1 N ringskreditt AS 10. 2. 3. 3. redittbanken ASA 20. 0. . 3. 10 S a
Slide 49: Net income from financial assets and liabilities
Net income from financial assets and liabilities Proforma Net income from finance (NOK million) n 2 ividends from shares and other e uity instruments 1. 1 . .2 Share of rofit or loss of associates and oint ventures . 10 . .2 1 1 1 1 1 0 Net rofit from other financial assets and liabilities . 1 .1 10
Slide 50: Capital levels
Capital levels Common equity Tier 1 capital ratio 1 .0 1 . 1 . 1 .0 1 .1 1 . 1 .1 1.0 CE 1 ca ital ratio 1 .1 1 . 1 .0 ier 1 ca ital ratio 1 .0 1 . 1 . 1 .1 Ca ital ade uacy ratio 21.3 20. 20. Leverage Ratio . .3 .2 2020 2021 2022 2023 202 1 2 Re uirement er 1 2 Common e uity ier 1 ca ital ratio Man
Slide 51: Expected effects of new capital adequacy regulation
Expected effects of new capital adequacy regulation Estimated effects on CET-1 of changes in capital adequacy regulations, based on balance sheet at 4Q24 ESTIMATE 03 0 1 0 1 1 CE 1 at 1 2 CRR 3 e cl.. otens CRR 3 otens e cl. Eika oligkreditt New risk weight floor for housing Estimated new CE 1 mortg
Slide 52: SPOL Ownership structure
SPOL Ownership structure ILLUSTRATION Profit after tax ECC Owners Primary capital 73 % 27 % Dividend Dividend equalisation fund (retained) Totens Sparebank- Primary capital Customer Other owners Sparebank- stiftelsen provision dividends/gifts 46.9 % stiftelse Hedmark (retained) 8.6 % 44.5 % Gifts an
Slide 53: 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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