Sparebank 1 Sor-norge Asa · OSL:SB1NO
Sparebank 1 Sor-norge Asa — SpareBank 1 Sør-Norge — Q3 2025 Earnings Presentation
44 slides from Sparebank 1 Sor-norge Asa's earnings presentation, 2025
Slide 1: Quarterly presentation 2025 Q3
Quarterly presentation 2025 Q3
Slide 2: 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 > 17,53% < 40% > 50% > NOK 450 million CET 1 Cost to income Dividend share Operational synergies Capital r
Slide 3: Well positioned for strong capital distribution
Well positioned for strong capital distribution New dividend policy Dividend policy The group’s dividend policy is to distribute above 50% in cash dividend of the profit The group’s dividend policy has been to distribute around for the year 50% of the profit for the year Established a share buyback
Slide 4: Successful integration
Successful integration 1 October 2024 1 April 2025 1 October 2025 Next step → SpareBank 1 ForretningsPartner EiendomsMegler 1 SpareBank 1 Sør-Norge Sør-Norge Sør-Norge Sør-Norge ✓ Legal merger 1 • Realization of ✓ Legal merger 1 October 2024 ✓ Legal merger 1 April synergies October 2025 2025 ✓ Techn
Slide 5: Businesses expects increased growth
Businesses expects increased growth SpareBank 1 Sør-Norge’s business survey • Expects growth, but reduced investments • Corporates expect growth and more employees • Unemployment remains low g r og s so r s o us ru ur o • Trade policies and global tensions linked to Trump continue to create uncertai
Slide 6: Expectations among oil companies
Expectations among oil companies Expectations among companies with higher vs lower • High optimism among oil companies over oil-related revenue the next 12 months Main index: Share of positive companies in percent • Most oil companies expect to hire • Investments on the Norwegian continental shelf r
Slide 7: SpareBank Sør-Norge
SpareBank 1 Sør-Norge Lending volume in NOK billion % CAGR *Pro forma 7
Slide 8: Synergy estimate raised after solid quarter
Synergy estimate raised after solid quarter Result 30 September 2025 Result 3. quarter 2025 13.0% 4.4% 37.0% 13.1% 14.7% excl. one-off effects** 14.5% excl. one-off effects* Return on equity after tax 12 months lending growth Retail market 6.1% Cost to income ratio Corporate market -2.3% Return on e
Slide 9: 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: > 17.53% Target: < 40% Target: > 50% dividend share * Pro forma *CET 1 capital ratio SpareBank 1 SR-Bank ASA. 9
Slide 10: Good underlying operations
Good underlying operations Group Income statement Change from last quarter (MNOK) Change from Q3 2024 (MNOK) *Pro forma 10
Slide 11: 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. 11
Slide 12: 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. 12
Slide 13: Corporate market
Corporate market Lending volume Deposit volume Margins v *Pro forma **12 months lending growth in Corporate market excluding currency effect is -1.8%. Definition margins: Average customer rate measured against money market rates. The figures include loans transferred to credit institutions and commi
Slide 14: 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. 14
Slide 15: Well-diversified lending portfolio
Well-diversified lending portfolio • Gross loans increased to NOK 415 billion from NOK 397 billion year over year • 12 months lending growth is 4.4% • Low offshore, oil and gas exposure • Commercial real estate – low concentration risk and good credit quality p p Loans before impairments, nominal am
Slide 16: Net commission and other income
Net commission and other income Change from previous quarter (MNOK) 74 74 Change from Q3 2024 (MNOK) *Pro forma 16
Slide 17: Net income on financial investments
Net income on financial investments Change from previous quarter (MNOK) 74 74 Change from Q3 2024 (MNOK) When a basisswap is defined as a hedging instrument, changes in “basis spread” is recognized through other comprehensive income. *Pro forma 17
Slide 18: Income from ownership interests
Income from ownership interests Ownership interests FORSIKRING FACTORING FORVALTNING *Pro forma 18
Slide 19: Operating expenses
Operating expenses Operating expenses Change from previous quarter (parent bank) (MNOK) rso p r g r p s s p s s p s s p s s Change from Q3 2024 (parent bank) (MNOK) rso p r g r p s s p s s p s s p s s *Pro forma 19
Slide 20: Synergies
Synergies Capital synergies Personnel synergies Capital synergies from the merger are approximately NOK 1.7 billion. Approval of IRB for previous portfolios from SpareBank 1 Sørøst-Norge amounted to approximately NOK 0,9 billion in the third quarter. Synergies The Group is on track in realisation of
Slide 21: Successful technical merger – a major milestone
Successful technical merger – a major milestone Total merger cost (MNOK) • Successful technical merger completed in mid-September • 335,000 customers migrated to a shared banking system • The bank is now positioned for the future • A unified platform • Improved scalability • Increased efficiency 202
Slide 22: 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 oss pro s o s s s r o gross o s g o s o s g *Pro forma 22
Slide 23: Capital adequacy
Capital adequacy Solid capital ratio Capital ratios • The CET 1 capital ratio is 18.51% as of 30 September 2025 Tier 2 • The minimum requirement for the CET 1 capital ratio is 17.53% as of 30 2.71% September 2025, including a temporary Pillar 2 requirement of 0.28% and a Tier 1 Pillar 2 guidance req
Slide 24: Solid liquidity
Solid liquidity Key figures Bonds and certificates • LCR 148% • The average duration of the portfolio • NSFR 133% is 2 years • Average duration of funding is 3.3 years • All fixed interest exposure is hedged to floating rate • NOK 24.5 billion net refinancing need over the next 12 months • Deposit t
Slide 25: Outlook
Outlook • Strong position in Southern Norway with growth opportunities • Good prospects for the group • Solid underlying credit quality • Uncertainty related to trade policy and geopolitical tension 25
Slide 26: APPENDIX
APPENDIX 1) Macro 2) Loan portfolio 3) Risk 4) SB1NO 26
Slide 27: Macro in Southern Norway
Macro in Southern Norway SpareBank 1 Sør-Norges’s business Unemployment rate Number of bankruptcies survey Main index of 55 percent as of the 3 quarter of 2025 og s g r so r us ru g r og s so p p p s o r us ru ur o s o House price development Index change 12 month (%) Prices by city per square meter
Slide 28: APPENDIX
APPENDIX 1) Macro 2) Loan portfolio 3) Risk 4) SB1NO 28
Slide 29: 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 29
Slide 30: Lending to commercial real estate
Lending to commercial real estate Commercial real estate portfolio 11.5% of total lending Commercial real estate for lease volum Low concentration risk 91% 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 31: APPENDIX
APPENDIX 1) Macro 2) Loan portfolio 3) Risk 4) SB1NO 31
Slide 32: 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 91.9% of the exposure is within 85% of the assessed value of m
Slide 33: Profile of the loan portfolio
Profile of the loan portfolio • SpareBank 1 Sør-Norge has a solid loan portfolio. Loan portfolio distributed Loan portfolio distributed by risk class by size of loan • The loan portfolio consists mainly of small and medium- sized loans. Probability of Default (PD) % Probability of default (PD) throu
Slide 34: Risk profile
Risk profile - 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 Agriculture market • The q
Slide 35: 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 orpor r gr u ur r *Pro forma 35
Slide 36: APPENDIX
APPENDIX 1) Macro 2) Loan portfolio 3) Risk 4) SB1NO 36
Slide 37: Sustainable financing
Sustainable financing Target: Sustainable lending constitutes 25% of the group’s total Sustainable lending constitutes 18.3% of total lending volume lending volume by the end of 2030* Target Total lending 394 bill NOK Retail market • Green residential buildings SpareBank 1 Sør-Norge among top 9 % of
Slide 38: SpareBank 1 Sør-Norge ASA
SpareBank 1 Sør-Norge ASA Fully owned companies Partly owned companies BN Bank SB1 Markets EiendomsMegler 1 SpareBank 1 SR-Boligkreditt Sør-Norge Sør-Norge ForretningsPartner 42.5% 28.1% Real estate agency Accounting and advisory Covered Bond Funding EiendomsMegler 1 FinStart Nordic Kreditt- SpareBa
Slide 39: Balance sheet
Balance sheet Balance sheet (MNOK) 2024* Cash and balances with central banks 787 Balances with credit institutions 11,093 9,954 Loans to customers 392,208 366,283 Certificates and bonds 73,554 65,201 Financial derivatives 10,015 11,881 Shares, ownership stakes and other securities 2,286 3,182 Inves
Slide 40: SB1NO
SB1NO • International ownership Development in Price/Book Relative share price development is 16.8% per 3. quarter 2025 200 1,5 200 190 1,4 Index 100 = sep 30th 2024 180 • Total market value at 180 170 1,3 160 1,2 3. quarter 2025 is NOK 160 1,1 140 NOK p/B 150 66,8 billion 140 1,0 120 0,9 100 130 Pr
Slide 41: SB1NO
SB1NO • Number of shares issued 375.46 million • Trading volume in Q3 2025: 2.5% (3.5%) Figures in parentheses as at 30 September 2024. 41
Slide 42: 20 largest shareholders as at 30 September 2025
20 largest shareholders as at 30 September 2025 • Ownership interests: • International: 16.8% (22.7%) • 10 largest: 54.9% (50.5%) • 20 largest: 63.0% (59.5%) • Number of shareholders: 22.791 (19.504) • Employees owning 1.5% (1.8%) as at 30 September 2025 Figures in parentheses as at 30 September 202
Slide 43: Disclaimer
Disclaimer This presentation contains forward looking statements that reflect g ’s urr s r sp o r u ur s 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 exp
Slide 44: Contact Details
Contact Details Management Christen Tranes Gate 35 Tel: +47 915 02002 Inge Reinertsen Postboks 250 www.sb1sornorge.no CEO 4068 Stavanger +47 909 95 033 inge.reinertsen@sb1sornorge.no Eirik Børve Monsen CFO +47 916 39 831 eirik.monsen@sb1sornorge.no Investor Relations Morten Forgaard Investor Relatio
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