Sparebanken Norge · OSL:SBNOR
Sparebanken Norge — Sparebanken Vest — Q1 2025 Earnings Presentation
37 slides from Sparebanken Norge's earnings presentation, Apr 30, 2025
Slide 1: Presentation of accounting figures Q1 2025
Presentation of accounting figures Q1 2025 Bergen, 30 April 2025 JAN ERIK KJERPESETH
Slide 2: Questions will be addressed after the presentation
Presentation of accounting figures, Q1 2025 Questions will be addressed after the presentation. Please send questions to: investorrelations@spv.no
Slide 3: On track to reach financial targets in 2025
On track to reach financial targets in 2025 Target Result ROE after tax > 13.0% 21.3% Common Equity Tier 1 (CET1) ratio > 16.05%* 17.9% Cost-to-income ratio < 30% 27.7% * 16,05 % is the sum of all CET1 minimum, buffer and pillar 2 requirements in addition to 1.25 percentage points pillar 2 guidance
Slide 4: Leading the field in ROE over time
Leading the field in ROE over time The target is to be among the two best savings banks on ROE over time 13,4 % 13,7 % 12,7 % 12,8 % 12,2 % 11,5 % 11,6 % 10,9 % 10,0 % 9,3 % 8,4 % Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 10 SVEG Peers: DNB, NONG, MING, SRBNK, MORG, SPOG, S
Slide 5: High return on equity above target in the entire period
High return on equity above target in the entire period ROE target has been increased from 11 to 13 percent during the period 21,3 % 20,1 % 16,5 % 14,2 % 14,6 % 13,7 % 13,5 % 14,0 % 13,1 % 12,2 % 11,9 % 12,3 % 11,0 % 13,0 % 13,0 % 11,5 % 12,0 % 11,0 % 2013 2014 2015 2016 2017 2018 2019 2020 2021 202
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Slide 7: Agenda
Agenda • Sound banking operations • Conservative loan book • Sparebanken Norge
Slide 8: Strong ROE and solid CET1 ratio
Strong ROE and solid CET1 ratio ROE Profit per equity certificate (NOK) 21,6 % 20,1 % 21,4 % 21,3 % 17,6 % 4,78 4,40 4,45 3,93 3,87 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 CET1 ratio1 Book value per equity certificate (NOK) 17,8 % 18,0 % 17,9 % 89,1 17,5 % 17,7 % 84,9 84,9 80,5 7
Slide 9: Good lending and deposit growth increases net interest income
Good lending and deposit growth over the past 12 months increases net interest income Nominal net interest income (NOK million) Net interest income as % of total assets 1,85% 1,85% 1,83% 1,88% 1,87% 1,84% 1574 1586 1536 1 533 1,77% 1462 1,73% 1,73% 1442 1393 1232 1 175 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24
Slide 10: Solid lending growth to both retail and corporate customers
Solid lending growth to both retail and corporate customers Retail customers1 Corporate customers 13,3 % 15,6 % 15,0 % 15,9 % 14,0 % 11,1 % 11,5 % 11,2 % 9,3 % 15,6 % 12,0 % 10,0 % 10,5 % 10,8 % 220,3 9,6 % 9,1 % 211,1 216,4 7,4 % 7,7 % 201,5 207,3 189,3 194,6 69,7 173,8 181,9 63,9 65,6 66,1 66,8 59
Slide 11: Good growth in deposits within the personal customer segment
Good growth in deposits within the personal customer segment Lower credit spreads over time has made capital market financing more attractive Retail customers1 Corporate customers 16,1 % 15,2 % 15,2 % 29,0 % 27,6 % 13,3 % 13,8 % 11,5 % 21,2 % 9,0 % 9,6 % 8,1 % 10,7 % 79,0 82,1 6,3 % 78,3 77,4 2,1 %
Slide 12: Underlying cost growth is about 4.8% over the past 12 months
Underlying cost growth is about 4.8% over the past 12 months 18 547 50 11 24 443 Operating costs Consolidation Merger costs Increased in costs in Other cost movements Operating costs Q1 2024 Frende Eiendomsmegler Vest Q1 2025 Kapitalforvaltning - variable with sale
Slide 13: Sparebanken Norge chooses Tietoevry
Bedriftsinternt Sparebanken Norge chooses Tietoevry Sparebanken Norge has entered into a long-term and strategic partnership agreement with Tietoevry • Goal: Strengthen our position as the most cost-effective bank in Norway • The agreement gives us the opportunity to strengthen our digital capacity
Slide 14: Improvement in all result lines except costs
Improvement in all result lines except costs, which are characterized by merger costs and consolidation of Frende Kapitalforvaltning 38 40 33 1 415 80 70 - 104 1 256 Net interest income Associated Operating costs Pre-tax result Q1 25 companies Pre-tax result Q1 24 Commission income Finance result Wr
Slide 15: Lending growth in Bulder of NOK 10.3bn
Lending growth in Bulder of NOK 10.3bn last 12 months1 64.0 bn. 42% 65% Housing loan volume (NOK) Average loan-to-value Knowledge of the concept 117 400 27.5% Total number of Deposits-to-loans ratio customers 1 Lending growth of NOK 10.3 billion is between Q1 2024 and Q1 2025. Other figures are per
Slide 16: Good growth combined with good profitability
Good growth combined with good profitability Marginal return on equity is between 13 and 14% in Q1 2025 – compared to a target of 9-11% Targeted lending development (NOK billion) and targeted marginal return on equity in the Bulder concept (in percent) 83 73 60 Q2 2023 2023 2024 2025 2026
Slide 17: Eiendomsmegler Vest with significant profit improvement
Eiendomsmegler Vest with significant profit improvement • Eiendomsmegler Vest has brokered about 40% more homes in the quarter compared to the first quarter of 2024 • In the market area, the market share in the quarter is 13.1%, compared to 11.9% in the first quarter of 2024 • Increased sales and im
Slide 18: Resilient liquidity portfolio and well diversified maturity profile
Resilient liquidity portfolio and well diversified maturity profile Sparebanken Vest Boligkreditt issued a covered bond of EUR 750 million in March 2025 Resilient liquidity portfolio of 41 bn. Diversified maturity profile – with an average duration of 3.0 years Liquid Bonds in addition to the munici
Slide 19: Significant margin to regulatory capital requirements
Significant margin to regulatory capital requirements Sparebanken Norge proposed as systemically important (SIFI) - entry into force of buffer requirements after 1 January 2027 CET1 ratio1 Leverage Ratio2 17,5 % 17,8 % 18,0 % 17,7 % 17,9 % 6,2 % 6,2 % 6,3 % 6,1 % 6,3 % Solvency target 16.05% Require
Slide 20: Agenda
Agenda • Sound banking operations • Conservative loan book • Sparebanken Norge
Slide 21: Conservative loan portfolio dominated by retail customers
Conservative loan portfolio dominated by retail customers 99.7% of retail portfolio is mortgages Low-risk loan book consisting of residential mortgages Our customers come from our primary market area¹. Other exposures are primarily in Bulder-segment Other Øvrig Corporate 8% customers Oslo Osloand og
Slide 22: Low default rate in retail market
Low default rate in retail market The need for installment exemptions is at moderate levels Late payments for mortgages, 90 days Interest-only mortgages, above 60% LTV* (percentage of gross lending) (NOK million) 0,20 % 3 500 3 000 0,15 % 2 500 2 000 0,10 % 1 500 1 000 0,05 % 500 0,00 % - * Loans wh
Slide 23: Corporate customers well-positioned in macroeconomic and geopolitical uncertainty
Corporate customers are well-positioned in increased macroeconomic and geopolitical uncertainty Other Offshore • The bank has low exposure to exporters to the USA, where 7% tariff risk is highest. Hotels and restaurants 2% Farming 3% • Salmon farming is considered the most vulnerable, but 3% the tar
Slide 24: Defaults at a low level
Defaults at a low level Together with robust provisions, this provides a good starting point for continued low losses Stage 3 loans Lowest share of total stage 3 loans in the sector 1,79% 1,68% 1,60% 1,52% 1,29% 1,19% 1,21% 1,16% 1,11% 1,06% 1,03% 0,89% 0,73% 0,71% 0,69% 0,57% 0,58% 0,50% 0,37% 0,37
Slide 25: Agenda
Agenda • Sound banking operations • Conservative loan book • Sparebanken Norge
Slide 26: Customers, FTEs, Gross loans
Customers FTEs Gross loans 797 500 1 604 453 bn. Numbers as of Q1 2025 including Brage Finans and Borea Asset Management
Slide 27: Our ambition: Build Norway's largest and best savings bank
OUR AMBITION: Build Norway's largest and best savings bank at a time when the savings bank map is being redrawn. Through strong performance, ensure that we stand strong as an alliance-free bank where decisions and expertise are built within the bank.
Slide 28: Norway's best savings bank
Strategy hierarchy for Sparebanken Norge Sparebanken Norges vision Norway’s best savings bank Among the best Norwegian Among the most attractive Best customer experiences and Long-term savings banks in terms of banking customer satisfaction in Norway expertise environments in the goals operations an
Slide 29: Norway's largest savings bank
Norway’s largest savings bank 444 405 249 231 153 Sparebanken SpareBank 1 SpareBank 1 SpareBank 1 SpareBank 1 Norge Sør-Norge SMN Østlandet SNN Gross lending (billion) as of Q4 2024, including Brage Finans for Sparebanken Norge
Slide 30: Process towards legal merger on 2 May 2025
Process towards legal merger on 2 May 2025 2 October 2024 29 November 2024 14 March 2025 10 April 2025 The merger was unanimously The merger has been New logo and Completed organization approved by the general meetings. cleared by the Norwegian profile ready of the Group Executive Legal Technical Co
Slide 31: Sparebanken Norge's group management takes office on 2 May
Sparebanken Norge's group management takes office on May 2
Slide 32: Group Management of Sparebanken Norge
Group Management of Sparebanken Norge CEO Jan Erik Kjerpeseth OSLO AND NEW MARKET AREAS Arild Andersen COMPLIANCE EIENDOMSMEGLER NORGE Bjørg Beate Kristiansen TBA GROUP SERVICES STRATEGY AND PROJECTS Therese Linn Arentsen Steinar Breen DIRECT BANKING RETAIL FINANCE AND CORPORATE Hans Olav Ingdal Ben
Slide 33: Together we will build Norway's best savings bank
Together we will build Norway’s best savings bank Leading in customer satisfaction Low complexity and low risk in the loan portfolio Proud performance culture and two strong headquarters New strong brand built on savings bank values Significant gifts and high customer dividends Leading the field on
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Slide 35: Investor contacts
Investor contacts Jan Erik Kjerpeseth CEO Tel.: (+47) 951 98 430 jan.kjerpeseth@spv.no Frank Johannesen CFO / EVP Tel.: (+ 47) 952 65 971 frank.johannesen@spv.no Brede Borgen Kristiansen Director Finance, Operations and Investor Relations Tel.: (+47) 479 06 402 brede.kristiansen@spv.no
Slide 36: Questions may be sent to investorrelations@spv.no
Questions may be sent to: investorrelations@spv.no
Slide 37: Disclaimer
Disclaimer The statements in this presentation may include forward-looking statements, e.g. about expectations of the future. These statements are based on the management’s current views and assumptions and involve both known and unknown risks and uncertainties. Although Sparebanken Vest believes th