Sparebank 1 Smn · OSL:MING
Sparebank 1 Smn — Debt Investor Presentation (2025)
57 slides from Sparebank 1 Smn's debt investor presentation, 2025
Slide 1: Debt Presentation Fourth quarter 2024
Debt Presentation Fourth quarter 2024 MÅ FÅ ORGINALBILDE
Slide 2: Disclaimer
Disclaimer This presentation contains certain forward-looking statements relating to the business, financial performance and results of SpareBank 1 SMN and/or the industry in which it operates. Forward- looking statements concern future circumstances and results and other statements that are not his
Slide 3: Content debt presentation
Content debt presentation 1 About SpareBank 1 SMN 2 Norwegian Economic Overview 3 Fourth quarter 2024 4 Capital and Funding 5 Appendix Appendix
Slide 4: About SpareBank 1 SMN
About SpareBank 1 SMN Bank SpareBank 4 | seaitor Sh Accounting
Slide 5: SpareBank 1 SMN
SpareBank 1 SMN City of Trondheim The Norw. Uni. of Science and Tech Main industries Region • The region’s consists of two counties in the middle of Norway: Trøndelag and Møre and Romsdal • Population is approx. 750,000 people or 14 % of the Norwegian total • The main town of Trondheim is an histori
Slide 6: Our history through two centuries
Our history through two centuries SpareBank 1 Midt-Norge SpareBank 1 SMN SpareBank 1 SMN Trondheim Sparebank Listed on Oslo Stock acquires Romsdals merges with SpareBank established Fellesbank Exchange 1 Søre Sunnmøre 1823 1994 2005 2023 1985 1996 2009 23 savings banks merge A number of savings Spar
Slide 7: SpareBank 1 SMN Financial Group
SpareBank 1 SMN Financial Group Retail banking Corporate Banking Support and development Subsidiaries Related companies and the SpareBank 1 Alliance Leading real estate agent in Mid Norway SpareBank 1 Sparebank 1 Boligkreditt Gruppen FACTORING SpareBank 1 FORSIKRING SpareBank 1 Næringskreditt Market
Slide 8: The finance centres are the core of our local presence
The finance centres are the core of our local presence 26 finance centres where the customer Complete financial product and service range meets «One SMN», with expertise in banking, accounting and real estate brokerage Pension Insurance Accounting Real estate agency Financing Collections Payments Sa
Slide 9: Leading in Central Norway, among the top performers in the Nordic region
29.3 % Leading in Central Norway MING total return including dividend 2024 Among the top performers in the Nordic region 41.1 % Norway’s best mobile bank 95 % Of loans to businesses Owned by the society «A good and user-friendly mobile bank that takes care of everyone» scored on ESG criteria Cicero
Slide 10: SpareBank 1 Alliance Banks – local presence and national integration
SpareBank 1 Alliance Banks – local presence and national integration The Alliance was founded in 1996 and • SpareBank 1 Nord Norge (1836) consists of 12 Tromsø banks Moodys: Aa3 • SpareBank 1 SMN (1823) Trondheim Moodys: Aa3 + 8 further banks • SpareBank 1 Østlandet (1845) Hamar Moodys: Aa3 • SpareB
Slide 11: Part of the SpareBank 1 Alliance
Part of the SpareBank 1 Alliance Other SpareBank 1 SpareBank 1 SpareBank 1 SpareBank 1 SpareBank 1 SMN Sør-Norge SNN Østlandet Banks Retail and corporate banking in Norway; approx. 1.1 mill retail and 100,000 corporate/SMEs exclusively in Norway SpareBank 1 Group SpareBank 1 Development Direct opera
Slide 12: «One SMN 2.0» – a new step in the same direction
«One SMN 2.0» – a new step in the same direction Increase digitalisation Head up the development Integrate sustainability Exploit the power in our Create One SMN and use of insights of Norway’s savings banks into the business ownership model 12
Slide 13: Realised effects from «One SMN» in 2024
Realised effects from «One SMN» in 2024 Strengthened market position across all business areas* Retail banking EM1 Midt-Norge Corporate banking SpareBank 1 Regnskapshuset SMN Market share mortgages Market share house sales Market share corporate loans Market share businesses * Market shares in Centr
Slide 14: Growth from synergies and strategic initiatives
Growth from synergies and strategic initiatives Growth in 2024 Merger with SB1 Søre Sunnmøre Private Banking Deposits Advisory services Lending growth in Net subscription for funds and asset Deposit growth retail banking Revenue growth advisory services Sunnmøre and Fjordane (NOKbn) management (NOKb
Slide 15: SMN builds structure proactively, whilst also believing in alliances
SMN builds structure proactively, whilst also believing in alliances and cooperation • SMN has critical mass and is large enough to be independent • We actively invite mergers in Central Norway and the expansion of the region, and have a strong value proposition for potential partners • We have valu
Slide 16: Achieving financial targets
Achieving financial targets Return on equity (per cent) Solidity (per cent) T r tio o t r tio Cost/income bank ex. finance (per cent) Cost/income subsidiaries ex. finance (per cent) i t orge egns sh set 16
Slide 17: Q4 2024 and 2024 highlights
Q4 2024 2024 14.4 % 16.6 % Lending growth Retail banking 5,5 % 5,0 % Return on equity Return on equity Corporate banking 7,5 % 1,052 mill 4,591 mill Deposit growth Retail banking 6,0 % 7,5 % Profit after tax Profit after tax Corporate banking 10,7 % Operating margin subsidiaries 18.3 % 176 mill Regn
Slide 18: Norwegian Economic Overview
Norwegian Economic Overview 18
Slide 19: Robust Norwegian economy
Robust Norwegian economy GDP Mainland Norway. Growth Unemployment rate 19 Source: Macrobond, Statistics Norway, NAV
Slide 20: Inflation is down, but still above target
Inflation is down, but still above target CPI and CPI-ATE Key policy rate Source: Macrobond, Statistics Norway, Norges Bank
Slide 21: Overview and price development housing market
Overview and price development housing market • Tot l size roxim tel OK , billion Q € bn Residential real estate price, 12 months change • Scheduled repayment mortgages: ca.85% MORTGAGE MARKET • Typical maturity: 25 years • First priority security market, thorough documentation • Over 82% of househo
Slide 22: Macro in Mid-Norway
Macro in Mid-Norway Unemployment Housing market dynamics Mid-Norway Wholly unemployed as a percentage of the labor force ercent ge i erence in listing selling rice nsol ro erties ec ec ec Norge Trøndelag Møre og Romsdal Q Q Q Q Q Q Q Q Q Q Development in housing prices Number of bankruptcies in Trøn
Slide 23: Fourth quarter 2024
Fourth quarter 2024 tlalelst tetetetetetals| ie WEL eee UB ML Lal Tel | = Bank SpareBank 4 | seaitor Sh) Accounting
Slide 24: Profitable and solid
Profitable and solid Return on equity CET1 ratio Q Q Q Q Q Q Q Q Q Q Result per ECC Loan losses in per cent of total lending Q Q Q Q Q Q Q Q Q Q 24
Slide 25: Growth and margins in Retail Banking - quarterly
Growth and margins in Retail Banking - quarterly Lending volume (NOKbn) Deposit volume (NOKbn) Margins vs NIBOR3M en ing ol me OKbn e osit ol me OKbn en ing m rgin Q rterl gro th Q rterl gro th e osit m rgin Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q 25
Slide 26: Growth and margins in Corporate Banking - quarterly
Growth and margins in Corporate Banking - quarterly Lending volume (NOKbn) Deposit volume (NOKbn) Margins vs NIBOR3M en ing ol me OKbn e osit ol me OKbn Q rterl gro th Q rterl gro th Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q * Lending margin for Q4 23 is adjusted for previously unrecognised interest due to rede
Slide 27: Results
Results Change Change from NOK mill 2024 2023 Q4 24 Q3 24 Q2 24 Q1 24 Q4 23 from Q3 24 Q4 23 Net interest income 5.373 4.732 1.372 1.355 1.310 1.336 1.345 17 27 Commission income and other income 2.392 2.085 580 553 680 579 498 27 82 Operating Income 7.766 6.816 1.953 1.908 1.990 1.915 1.844 45 109
Slide 28: Income
Income Net interest income and other income (NOKm) Commission income ommission income olig og rings re et interest income , , , , , NOK mill 2024 2023 Change Q4 24 Q3 24 Q2 24 Q1 24 Q4 23 Payment transmission income 354 330 24 107 79 91 77 101 Credit cards 71 61 10 18 18 17 18 14 Commissions savings
Slide 29: Costs
Costs Total operating expenses per quarter (NOKm) Costs per category • Costs in the bank increased by 78NOKm from the previous quarter of n bsi i ries b n which capital tax and higher national insurance contributions account for 60NOKm • When adjusted for higher capital tax and the one-time expense
Slide 30: Well diversified lending portfolio dominated by mortgages
Well diversified lending portfolio dominated by mortgages Loans per sector as at 31st of December 2024 and change last 12 months (NOKbn) ortg ges ortg ges n e b co bon s ommerci l re l est te gric lt re n orestr or or te c stomers Tr ns ort n other ser ices onstr ction, b il ing isheries siness ser
Slide 31: Commercial property, construction, building
Commercial property, construction, building Share of commercial real estate exposure Rental properties make up 77 % of the banks CRE exposure, in the corporate lending book* mainly to retail trade, industry/storage and offices Distribution of property per Distribution of area Q4 24 per Q4 24 o sing
Slide 32: Robust mortgage portfolio
Robust mortgage portfolio Loan-to-value ratio in the mortgage portfolio Granted interest-only periods Share of mortgages by LTV Number of loans granted interest-only periods in the Retail Banking portfolio T months months months , , , , , , , , , ec ec Q Q Q Q Q Q Q Q Q 32
Slide 33: Losses
Losses Loan losses (NOKm) Distribution of losses Q4 (NOKm) et il b n ing or or te b n ing re n in ns i t orge Q Q Q Q Q Q Q Q Q 33
Slide 34: Problem loans
Problem loans en ing to c stomers in st ge o gross len ing , , , , , , , , , Q Q Q Q Q Q Q Q Q 34
Slide 35: MING – an attractive investment
MING – an attractive investment Profitable, solid and with a shareholder-friendly dividend policy Market leader in Central Norway High share of commission income from subsidiaries and product companies Significant value from ownership within and outside the SpareBank 1 Alliance Well-positioned for s
Slide 36: Capital & Funding
Capital & Funding Bank SpareBank 4 | seaitor Sh) Accounting
Slide 37: Moody's rating Aa3 (outlook stable)
Moody’s rating Aa3 (outlook stable) Aa2 Aa3 A1 A2 A3 2021 2022 2023 2024 37
Slide 38: Solidity
Solidity CET 1 Leverage ratio il r g i nce il r o nterc clic l b er it l conser tion b er stemic ris re irement ill r min re irement Q T rget Q The gro s’ ill r re irement is , ercent ge oints, hereb , m st be co ere b T -capital. The bank is subject to a provisional add-on of 0.7 per cent to its Pi
Slide 39: Development in CET1 capital and capital adequacy
Development in CET1 capital and capital adequacy CET1 ratio in per cent il r g i nce il r o nterc clic l b er it l conser tion b er stemic ris re irement ill r min re irement 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 T rget 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 202
Slide 40: Funding and liquidity
Funding and liquidity Capital markets funding (NOKbn) • oo ’s r ting o tloo st ble • LCR: 183 per cent. NSFR: 125 per cent • Deposit-to-loan ratio: 57 per cent • Covered bonds issued through SPABOL • SpareBank 1 SMN issues senior and subordinated debt in NOK and other currencies • The bank has an es
Slide 41: MREL and subordination requirement
MREL and subordination requirement MREL REQUIREMENT SUBORDINATION REQUIREMENT 52.8% 35.8% Tot l e irement ligible instr ments Tot l e irement ligible instr ments 41
Slide 42: Diversified deposit portfolio
Diversified deposit portfolio Deposits by sector (NOKbn) Deposits covered by the deposit LCR guarantee scheme (NOKbn) as at 31.12.2024 ge e rners blic sector ot co ere or or te o ere b the g r ntee scheme Q Q Q Q Q ge e rners or or te blic sector Q Q Public deposits are not covered by the guarantee
Slide 43: SMN Green Finance Framework
SMN Green Finance Framework • Structured and aligned with the four core components of the Green Bond Principles 2021 and the Green Loan Principles 2023 • Second Party Opinion and EU taxonomy assessment provided by Sustainalytics • Eligible categories • Residential buildings • Commercial buildings •
Slide 44: Use of Proceeds: Eligible Assets (1/2)
Use of Proceeds: Eligible Assets (1/2) 1 2 3 4 EU Taxonomy Use of Proceeds Reporting External Review Alignment Green Buildings Renewable Energy Clean Transportation • Residential buildings • Loans to finance or refinance equipment, • Loans to finance or refinance production, – esi enti l b il ings b
Slide 45: Use of Proceeds: Eligible Assets (2/2)
Use of Proceeds: Eligible Assets (2/2) 1 2 3 4 External Review EU Taxonomy Use of Proceeds Reporting Alignment Environmentally Sustainable Management of Living Natural Eco-efficient and Circular Economy adapted Products, Resources and Land Use Production Technologies and Processes Companies must ben
Slide 46: Second Party Opinion
Second Party Opinion 1 2 3 4 EU Taxonomy Use of Proceeds Reporting External Review Alignment • “Sustainalytics is of the opinion that the SpareBank 1 SMN Green Finance Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2021 and the Green Loan Pr
Slide 47: Reporting – Allocation (FY2024)
Reporting – Allocation (FY2024) 1 2 3 4 EU Taxonomy Use of Proceeds Reporting External Review Alignment Eligible Green Loan Portfolio (FY24) Green Funding (Pro Forma FY24) Amount Instrument Due Amount Issuance Date (NOK m) (ISIN) Date (NOK m)* XS2051032444 sep-19 sep-26 5,902 Green Residential Build
Slide 48: Double materiality analysis
Double materiality analysis 48
Slide 49: Science-based climate targets and reporting
Science-based climate targets and reporting 49
Slide 50: Appendix
Appendix 50
Slide 51: High value creation over time allows for record-high dividends
High value creation over time allows for record-high dividends o t r tio i i en er OK , , , , , 12.50 NOK dividend per ECC 61 % pay-out ratio 896 NOKm community dividends 51
Slide 52: Growth and margins in Retail Banking - Yearly
Growth and margins in Retail Banking - Yearly Lending volume (NOKbn) Deposit volume (NOKbn) Margins vs NIBOR3M en ing ol me OKbn e osit ol me OKbn en ing m rgin month gro th month gro th e osit m rgin Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q 52
Slide 53: Growth and margins in Corporate Banking - Yearly
Growth and margins in Corporate Banking - Yearly Lending volume (NOKbn) Deposit volume (NOKbn) Margins vs NIBOR3M en ing m rgin en ing ol me OKbn e osit ol me OKbn e osit m rgin month gro th month gro th e osit m rgin ex blic sector Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q 53
Slide 54: Subsidiaries
Subsidiaries Change Change NOK mill, SMN's share in parentheses Q4 24 Q3 24 Q2 24 Q1 24 Q4 23 from Q3 24 from Q4 23 EiendomsMegler 1 Midt-Norge (92.4%) -1 8 43 20 -7 -9 6 SpareBank 1 Regnskapshuset SMN (93.3%) -3 -7 54 35 8 4 -11 SpareBank 1 Finans Midt-Norge (56.5%) 87 68 76 66 12 19 76 SpareBank 1
Slide 55: Product companies
Product companies Change Change NOK mill, SMN's share in parentheses Q4 24 Q3 24 Q2 24 Q1 24 Q4 23 from Q3 24 from Q4 23 SpareBank 1 Gruppen (19.5%) 99 86 1 40 -51 13 150 Gain from merger between Fremtind/Eika 452 -452 SpareBank 1 Boligkreditt (23.7%) 23 37 35 33 30 -14 -7 SpareBank 1 Næringskreditt
Slide 56: Return on financial investments
Return on financial investments Change from Change from NOK mill Q4 24 Q3 24 Q2 24 Q1 24 Q4 23 0 Q3 24 Q4 23 Net gain/(loss) on stocks 44 -1 4 42 472 0 45 -427 Net gain/(loss) on financial instruments -47 -45 -17 -11 -41 0 -2 -6 Net gain/(loss) on forex 42 24 11 22 27 0 17 15 Net return on financial
Slide 57: Balance
Balance NOKbn 31.12.24 31.12.23 Cash and receivables from central banks 0,7 1,2 Deposits with and loans to credit institutions 9,2 8,7 Net loans to and receivables from customers 179,3 169,0 Fixed-income CDs and bonds 36,7 34,2 Derivatives 7,2 6,7 Shares, units and other equity interests 1,0 1,1 Inv