Sparebank 1 Sor-norge Asa · OSL:SB1NO
Sparebank 1 Sor-norge Asa — SpareBank 1 Sør-Norge — Q2 2025 Earnings Presentation
49 slides from Sparebank 1 Sor-norge Asa's earnings presentation, June 2025
Slide 1: Quarterly presentation 2025 Q2
Quarterly presentation 2025 Q2 SB1NO/SRBANK SR-Boligkreditt
Slide 2: Agenda
1 SpareBank 1 Sør-Norge 2 SR-Boligkreditt 3 Norwegian economy 4 Sustainability and Green Bond framework 5 Appendix SB1NO/SRBANK SR-Boligkreditt
Slide 3: Market overview
Market overview Banks in Norway Alliances Largest banks by lending volume (2023) Savings bank • All credit decisions are made at the local banks, no cross • Multiple alliances and Market share (lending volume) independent banks guarantees SpareBank 1 Alliance, • Economies of scale related 12 indepen
Slide 4: SpareBank 1 Sør-Norge
SpareBank 1 Sør-Norge Lending volume in NOK billion % CAGR *Pro forma 4 SB1NO/SRBANK SR-Boligkreditt
Slide 5: Solid result driven by good operations, growth and high activity
Solid result driven by good operations, growth and high activity Result 30 June 2025 Result 2. quarter 2025 12.9% 5.5% 39.9% 13.3% 14.9% excl. one-off effects* 14.9% excl. one-off effects* Return on equity after tax 12 months lending growth Retail market 7.0% 35.9% excl. one-off effects* Cost to inc
Slide 6: Key figures – quarterly development
Key figures – quarterly development Return on equity CET 1 capital ratio Cost to income ratio Earnings per share (NOK) Target: > 14.0% Target: > 17.55% Target: < 40% Target: ~ 50% dividend share * Pro forma *CET 1 capital ratio SpareBank 1 SR-Bank ASA. 6 SB1NO/SRBANK SR-Boligkreditt
Slide 7: Financial targets
Financial targets Long-term target ROE > 14% Cost- and capital Customer growth in Growth in other Joint effort in the Diversified effective South of Norway income SpareBank 1 alliance portfolio > 17,55% < 40% ~ 50% > NOK 300 million CET 1 Cost to income Dividend share Operational synergies Capital r
Slide 8: Good underlying operations
Good underlying operations Group Income statement Change from last quarter (MNOK) Change from Q2 2024 (MNOK) *Pro forma 8 SB1NO/SRBANK SR-Boligkreditt
Slide 9: Group
Group Lending volume Deposit volume Margins in customer- Net interest margin segments *Pro forma Definition margins: Average customer rate measured against money market rates. The figures include loans transferred to credit institutions and commission recevied. 9 SB1NO/SRBANK SR-Boligkreditt
Slide 10: Well-diversified lending portfolio
Well-diversified lending portfolio • Gross loans increased to NOK 413 billion from NOK 391 billion year over year • 12 months lending growth is 5.5% • Low offshore, oil and gas exposure • Commercial real estate – low concentration risk and good credit quality Loans before impairments, nominal amount
Slide 11: Net commission and other income
Net commission and other income Change from previous quarter (MNOK) 74 74 Change from Q2 2024 (MNOK) *Pro forma 11 SB1NO/SRBANK SR-Boligkreditt
Slide 12: Operating expenses
Operating expenses Operating expenses Change from previous quarter (parent bank) (MNOK) Change from Q2 2024 (parent bank) (MNOK) *Pro forma 12 SB1NO/SRBANK SR-Boligkreditt
Slide 13: Merger costs
Merger costs Total merger cost (MNOK) ~ 400 • Estimated merger costs have been increased by NOK 30 million as a result of updated estimates • The majority of remaining merger costs will occur in the third quarter in connection with the technical merger 2023 – 2024* Accrued Jun 25 Est. Q3 – Q4 25 Tot
Slide 14: Loans and financial commitments
Loans and financial commitments Change in gross loans and financial Impairments on loans and Changes in gross loans and commitments financial commitments financial commitments defined as Stage 3 *Pro forma 14 SB1NO/SRBANK SR-Boligkreditt
Slide 15: Capital adequacy
Capital adequacy Solid capital ratio Capital ratios • The CET 1 capital ratio is 18.63% as of 30 June 2025 • The minimum requirement for the CET 1 capital ratio is 17.55% as of 30 June 2025, including a temporary Pillar 2 requirement of 0.28% and a Pillar 2 guidance Tier 2 2.80% requirement of 1.25%
Slide 16: Strong liquidity
Strong liquidity Key figures Bonds and certificates • LCR 209% • The average duration of the portfolio • NSFR 135% is 2 years • Average duration of funding is 3.6 years • All fixed interest exposure is hedged to floating rate • NOK 25.4 billion net refinancing need over the next 12 months • Deposit
Slide 17: Funding
Funding • LCR 209%, NSFR 135% EUR Benchmarks • NOK 25.4 billion net refinancing need over the next 12 months • Deposit to loan ratio 54.1% • MREL-requirement 39.2%, MREL-subordination requirement 31.3% • As of 30 June 2025, SpareBank 1 Sør-Norge has issued NOK 22.9 billion in senior non-preferred. T
Slide 18: SR-Boligkreditt
1 SpareBank 1 Sør-Norge 2 SR-Boligkreditt 3 Norwegian economy 4 Sustainability and Green Bond framework 5 Appendix SB1NO/SRBANK SR-Boligkreditt
Slide 19: Overview SR-Boligkreditt
Overview SR-Boligkreditt • SR-Boligkreditt is a wholly owned subsidiary of SpareBank 1 Sør-Norge and a dedicated covered bond company. Its objective is to purchase mortgages and to finance these by issuing covered bonds (European Covered Bond Premium). • Loans are transferred to SR-Boligkreditt as t
Slide 20: Cover pool characteristics
Cover pool characteristics Assets/status • 100 % mortgages on Norwegian private residential properties • 100 % performing loans Cover pool • NOK 121.9 bn: Residential mortgages 119.0 (97.6%), Substitute assets 2.9 bn (2.4%) Mortgages and rate • 56,170 loans at a weighted average interest rate of 5.6
Slide 21: Eligibility criteria
Eligibility criteria Type of properties • Primary residential property in Norway (including detached houses, terraced houses, apartments and cooperative housing units) • The mortgage property shall not be "buy-to- “ (mortgages to individuals owning more than 3 properties) Collateral • LTV-limits at
Slide 22: Cover pool characteristics
Cover pool characteristics Current LTV Loan performance 0% 0% 24,7 % 22,6 % 21,6 % Performing loans 18,5 % 100 % Delinquent loans (arrears 31 11,2 % to 90 days) Gross non performing loans 1,2 % (arrears 90 days +) 0,2 % 0-40 % 40-50 % 50-60 % 60-70 % 70-80 % 80-100 % 100 % + Geography Property type
Slide 23: Norwegian economy
1 SpareBank 1 Sør-Norge 2 SR-Boligkreditt 3 Norwegian economy 4 Sustainability and Green Bond framework 5 Appendix SB1NO/SRBANK SR-Boligkreditt
Slide 24: Key economic indicators
Key economic indicators Sources: Statistics Norway and Norges Bank Norges Bank 27 March 2025 & Statistics Norway 17 June 2025. 24 SB1NO/SRBANK SR-Boligkreditt
Slide 25: Macro in Southern Norway
Macro in Southern Norway SpareBank 1 Sør- ’ business Unemployment rate Number of bankruptcies survey Main index of 53 percent as of the 2 quarter of 2025 House price development Index change 12 month (%) Prices by city per square meter Norwegian house prices have increased by 5.1 % the (EUR) last 12
Slide 26: Market – Commercial real estate
Market – Commercial real estate Office vacancy Prime yield Rental prices Transaction volume (TNOK per sq.m) (NOK billion) Source: Entra, WPS, og EM1 SR-Eiendom AS 26 SB1NO/SRBANK SR-Boligkreditt
Slide 27: Sustainability and Green Bond framework
1 SpareBank 1 Sør-Norge 2 SR-Boligkreditt 3 Norwegian economy 4 Sustainability and Green Bond framework 5 Appendix SB1NO/SRBANK SR-Boligkreditt
Slide 28: Sustainable financing
Sustainable financing Target: Sustainable lending constitutes 25% of the group’ l Sustainable lending constitutes 17.6% of total lending volume lending volume by the end of 2030* Target Total lending 388 bill NOK Retail market • Green residential buildings SpareBank 1 Sør-Norge among top 9 % of bank
Slide 29: Climate Transition Plan
Climate Transition Plan The first climate transition plan of SpareBank 1 SR-Bank launched in Q1-2024 The plan includes industry targets and trajectories for commercial real estate, shipping, oil and gas and agriculture 29 SB1NO/SRBANK SR-Boligkreditt
Slide 30: Green Bond Framework Highlights
Green Bond Framework Highlights Projects Manage- Use of Evaluation External ment of Reporting Proceeds and Review Proceeds Selection Green Bond committee SR-Bank intends to make and The Green Bonds proceeds will ISS has issued a Second Party Green buildings, renewable established. Evaluation and kee
Slide 31: Appendix
1 SpareBank 1 Sør-Norge 2 SR-Boligkreditt 3 Norwegian economy 4 Sustainability and Green Bond framework 5 Appendix SB1NO/SRBANK SR-Boligkreditt
Slide 32: Lending to commercial real estate
Lending to commercial real estate Commercial real estate portfolio 11.6% of total lending Commercial real estate for lease volum Low concentration risk 92% of volume has a PD under 2.5% Commercial real estate for lease Commercial real estate NOK Bill (NOK billion) for sale Well differentiated across
Slide 33: Our customers are doing well
Our customers are doing well Corporate market - Drawn amount on credit facilities Retail market – Avg. number of applications for interest-only per month Retail market – Drawn amount on interest only loans Retail market – Share of exposure (EAD)* with payment remarks *Proportion of Exposure of defau
Slide 34: Loan to value ratio and RWA on home mortgage loans
Loan to value ratio and RWA on home mortgage loans Loan to value ratio on home mortgage loans Risk weight home mortgages* • The proforma figures for SpareBank 1 Sør-Norge show that • RWA on home mortgages reflects a solid portfolio with a 93.3% of the exposure is within 85% of the assessed value of
Slide 35: Profile of the loan portfolio
Profile of the loan portfolio Loan portfolio distributed Loan portfolio distributed by size of loan by risk class • SpareBank 1 Sør-Norge has a solid loan portfolio. • The loan portfolio consists Probability of mainly of small and medium- Default (PD) % sized loans. Probability of default (PD) throu
Slide 36: Risk profile – loan portfolio
Risk profile – loan portfolio - Portfolio distributed by risk class Retail SME & Agriculture Corporate 14.6% 14.1% 15.2% 14.1% 15.0% 14.0% 14.6% 16.5% 14.0% 13,8 % 14,4 % 14,8 % 43.1% 44.7% 46.5% 54.9% 52.9% 57.5% • The quality of the retail market portfolio is • The quality of the SME and Agricultu
Slide 37: Retail market
Retail market Lending volume** Deposit volume** Margins *Pro forma **Including loans and deposits to employees. Definition margins: Average customer rate measured against money market rates. The figures include loans transferred to credit institutions and commission recevied. 37 SB1NO/SRBANK SR-Boli
Slide 38: Corporate market
Corporate market Lending volume Deposit volume Margins v *Pro forma **12 months lending growth in Corporate market excluding currency effect is -0.6%. Definition margins: Average customer rate measured against money market rates. The figures include loans transferred to credit institutions and commi
Slide 39: SME and Agriculture
SME and Agriculture Lending volume Deposit volume Margins *Pro forma Definition margins: Average customer rate measured against money market rates. The figures include loans transferred to credit institutions and commission recevied. 39 SB1NO/SRBANK SR-Boligkreditt
Slide 40: Net income on financial investments
Net income on financial investments Change from previous quarter (MNOK) 74 74 Change from Q2 2024 (MNOK) When a basisswap is defined as a hedging instrument, changes in “basis spread” is recognized through other comprehensive income. *Pro forma 40 SB1NO/SRBANK SR-Boligkreditt
Slide 41: Impairments on loans and financial commitments
Impairments on loans and financial commitments Impairments on loans and financial commitments in the Impairments on loans and financial income statement commitments in the income statement (MNOK) Impairments on loans and financial commitments in the balance sheet *Pro forma 41 SB1NO/SRBANK SR-Boligk
Slide 42: Income from ownership interests
Income from ownership interests Ownership interests MARKETS FORSIKRING FACTORING FORVALTNING *Pro forma 42 SB1NO/SRBANK SR-Boligkreditt
Slide 43: Synergies
Synergies Capital synergies Personnel synergies The introduction of new capital requirements in 2025 for A-IRB Full-time equivalents have been reduced according to plan, and banks has reduced the previously assumed capital synergies the technical merger in September 2025 will release additional from
Slide 44: SpareBank 1 Sør-Norge ASA
Owners of SB1 Gruppen Owners of the alliance SpareBank 1 Sør-Norge ASA Parent bank • All credit decisions are made at the local banks SpareBank 1 Nord Norge 19.5% • Economies of scale related SpareBank 1 SMN SR-Boligkreditt SpareBank 1 EiendomsMegler 1 to expenses, IT solutions, 19.5% Covered Bond F
Slide 45: Balance sheet
Balance sheet *Pro forma 45 SB1NO/SRBANK SR-Boligkreditt
Slide 46: SB1NO
SB1NO • International ownership Development in Price/Book Relative share price development is 16.1% per 2. quarter 2025 • Total market value at 2. quarter 2025 is NOK 69,6 billion F F Trading volume development 1,2 4,0 Volume (# shares) (r.s.) 3,5 1,0 Volume (20 days moving average)(l.s.) 3,0 0,8 2,
Slide 47: SB1NO
SB1NO • Number of shares issued 375.46 million • Trading volume in Q2 2025: 5.0% (4.0%) Figures in parentheses as at 30 June 2024. 47 SB1NO/SRBANK SR-Boligkreditt
Slide 48: 20 largest shareholders as at 30 June 2025
20 largest shareholders as at 30 June 2025 • Ownership interests: • International: 16.1% (20.7%) • 10 largest: 55.1% (50.5%) • 20 largest: 63.2% (58.4%) • Number of shareholders: 24.023 (18.943) • Employees owning 1.5% (1.8%) as at 30 June 2025 Figures in parentheses as at 30 June 2024. 48 SB1NO/SRB
Slide 49: Disclaimer
Disclaimer This presentation contains forward looking statements that reflect ’ potential financial performance. Although SpareBank 1 Sør-Norge believes that the expectations reflected in such forward looking statements are reasonable, no assurance can be given that such expectations will prove to h
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