Pareto Bank Asa · OSL:PARB
Pareto Bank Asa — Q3 2025 Earnings Presentation
37 slides from Pareto Bank Asa's earnings presentation, Oct 30, 2025
Slide 1: Pareto Bank Financial Results – Third Quarter 2025
PARETO BANK Financial Results – Third Quarter 2025
Slide 2: Highlights, Financials, Business Area Update & Outlook
Highlights Financials Business Area Update & Outlook 2
Slide 3: Third Quarter 2025 Highlights
THIRD QUARTER 2025 Highlights • Profit after tax NOK 176.8m (NOK 173.2m in Q3-24). • Return on equity after tax 13.0% (13.6%). • Net interest income down to NOK 287.2m (NOK 313.1m). • Lending at the end of the quarter stood at NOK 18,983m (NOK 19,419m). Average lending was down 7% q/q with lower cre
Slide 4: Key Figures
KEY FIGURES Profit after tax (NOKm) Return on Equity * CET1 ratio 200.7 21.3% 173.2 178.5 176.8 19.9% 159.8 15.1% 13.6% 13.5% 18.3% 13.0% 12.1% 17.2% 17.1% Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 Net interest income (NOKm) Cost/Income ratio Loss rati
Slide 5: Financials
Highlights Financials Business Area Update & Outlook 5
Slide 6: Income Statement
INCOME STATEMENT P&L (NOKm) Q3-25 Q3-24 YTD-25 YTD-24 • Interest income down with average lending volumes Net interest income 287.2 313.1 921.5 915.8 down 7% y/y. Net other operating income 18.4 2.1 59.6 17.0 Total net income 305.6 315.1 981.1 932.8 • Net interest margins weakened by lower fees and
Slide 7: Change in Quarterly Net Interest Income
CHANGE IN QUARTERLY NET INTEREST INCOME (NOKm) 319.0 2.5 287.2 3.8 9.2 - 30.1 5.6 - 16.0 1.6 - 8.5 200.0 Q2-25 Lending volume Fee income Lending rate Depost rate Surplus liquidity Deposit volume Market funding Interest days Q3-25 7
Slide 8: Interest Margins
INTEREST MARGINS Lending and deposit margin 5.7% 5.8% 5.7 % 5.6% 5.6% 4.6% 4.7% 4.6% 4.6% 4.2% 0.5% 0.4% 0.2% 0.2% -0.1% Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 Lending margin Deposit margin Net interest margin Note: Lending and deposit margins relative to average 3M NIBOR. Net interest margin is total net in
Slide 9: Quarterly Change in Stage 2, 3 and Impairments
QUARTERLY CHANGE IN STAGE 2, 3 AND IMPAIRMENTS Stage 2 and 3 and provisions for stage 3 lending (NOKm) Impairments and losses on loans and guarantees (NOKm) 55.3 1,012 37.1 626 739 643 761 30.9 17.1 1,138 15.1 1,013 940 1,033 975 224 255 272 162 195 Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 Stage 3 Stage 2 Stag
Slide 10: Solidity and Capital Requirements
SOLIDITY AND CAPITAL REQUIREMENTS Per cent 2200.00% • Long-term CET1 target of 0.3 21.3 16.3%, in line with the 2100.00% 0.7 NFSA expectation. 0.4 2000.00% 19.9 • Pareto Bank holds a buffer above this target. 1900.00% • Continued reduction in 18.0 lending and exposure 1800.00% adds to capital positi
Slide 11: Business Area Update & Outlook
Highlights Financials Business Area Update & Outlook 11
Slide 12: A Niche Player Financing Medium-Sized Enterprises
A NICHE PLAYER FINANCING MEDIUM-SIZED ENTERPRISES Exposure (NOKm) SHIP FINANCING NOK 1,262m 5% RESIDENTIAL FINANCING NOK 3,229m 14% 42% COMMERCIAL PROPERTY 12% RESIDENTIAL DEVELOPMENT FINANCING FINANCING NOK 2,699m NOK 9,742m 28% CORPORATE FINANCING NOK 6,474m 12
Slide 13: Quarterly Exposure Per Business Area
QUARTERLY EXPOSURE PER BUSINESS AREA (NOKbn) 10.9 11.0 9.9 9.7 8.7 7.3 7.1 6.4 6.6 6.5 3.7 3.1 3.3 3.2 3.1 3.0 3.0 2.8 2.7 2.7 2.0 2.0 1.8 1.4 1.3 Residential development financing Residential financing Commercial property financing Corporate financing Ship financing Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 13
Slide 14: Residential Property Financing
RESIDENTIAL PROPERTY FINANCING Residential property exposure (NOKm) Total NOK 12,971m LOWER LENDING VOLUME AND UNCERTAIN FORECAST ON EXPOSURE IN Q4-25. 1,233 Land w/ houses • Lower than expected exposure growth in Q3-25 due to delayed opening of several large building facilities, earlier completion
Slide 15: Commercial Property Financing
COMMERCIAL PROPERTY FINANCING Commercial property exposure (NOKm) Total NOK 2,699m FLAT VOLUME TO CONTINUE IN Q4-25. • Low activity in the transaction market as long-term rate outlook remain high despite the recent rate cuts. • Low risk appetite and financing demand. 2,699 Commercial Q3-25 Q2-25 15
Slide 16: Corporate Financing
CORPORATE FINANCING Corporate exposure (NOKm) Total NOK 6,474m (Q2-25: NOK 6,571m) 12% Real Estate SOME EXPOSURE GROWTH EXPECTED FOR Q4-25. 3% Investment Company 4% IT/Telecommunications 4% 41% • Relatively flat volume in Q3-25 as loan redemptions Retail 4% materialized as expected. Logistics 7% Hea
Slide 17: Ship Financing
SHIP FINANCING Exposure (NOKm) Total NOK 1,262m (Q2-25: NOK 1,358m) SOME VOLUME GROWTH EXPECTED FOR Q4-25. Offshore Accommodation 249 LTV 5%* Offshore Subsea 244 LTV 35%* • Low financing demand in shipping and competition among offshore lenders led to an expected minor volume reduction in Product 18
Slide 18: Total Return
TOTAL RETURN Price Annual Equity Total Return Change Return Pareto 179 % 330 % 16 % Bank OSEBX 143 % 143 % 9% Index 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 OSEBX PARB 18 Bloomberg as of 04.10.2025.
Slide 19: Appendix
APPENDIX (Pareto bank
Slide 20: Long-Term Ambitions
LONG-TERM AMBITIONS ROE Dividend 15% min. 50% 14.63% 52.9% 13.99% 49.4% 50.1% 50.0% 13.75% 13.56% 2021 2022 2023 2024 2021 2022 2023 2024 20
Slide 21: ROE and Leverage Ratio
ROE AND LEVERAGE RATIO Profitability with increasing solidity 16.0 % 15.9 % 16.0 % 15.6 % 14.8 % 15.0 % 25.0 % 14.3 % 14.6 % 14.0 % 14.0 % 13.8 % 13.6 % 12.7 % 13.0 % 13.0 % 12.0 % 20.0 % 18.2 % 18.0 % 17.1 % 17.1 % 16.5 % 10.0 % 15.7 % 16.3 % 16.0 % 14.3 % 14.6 % 15.0 % 8.6 % 13.7 % 8.0 % 12.4 % 11
Slide 22: Lending Growth
LENDING GROWTH Per business area (NOKm) 20,000 Ship Financing 15,000 Corporate Financing * Commercial Residential Financing ** 10,000 Commercial Property Financing 5,000 Residential Property Financing - 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 *) Including
Slide 23: Largest Shareholders
LARGEST SHAREHOLDERS 30 September 2025 Name Shares % Total • The Company has 76,782,423 shares outstanding. One class 1 Pareto AS 15,356,484 20.00 % of shares where each share carries one voting right. 2 Société Générale 6,456,149 8.41 % • Diversified investor base with 4,273 shareholders. 3 AWC AS
Slide 24: The Share
THE SHARE Earnings per share (NOK) Book value per share (NOK) 2.44 2.16 2.13 2.08 66.21 1.91 65.79 64.07 63.64 61.74 Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 24
Slide 25: Quarterly Income Statement
QUARTERLY INCOME STATEMENT P&L (NOKm) Q3-25 Q2-25 Q1-25 Q4-24 Q3-24 Net interest income 287.2 319.0 315.4 311.4 313.1 Net other operating income 18.4 24.3 16.9 8.9 2.1 Total net income 305.6 343.2 332.3 320.4 315.1 Total operating expenses 59.2 62.9 61.5 55.7 57.7 Operating profit before 246.4 280.4
Slide 26: Quarterly Balance Sheet
QUARTERLY BALANCE SHEET (NOKm) Q3-25 Q2-25 Q1-25 Q4-24 Q3-24 Loans to credit institutions 1,841 3,214 2,144 2,640 1,930 Loans to customers 18,983 19,249 20,864 20,713 19,419 Bonds and other securities 5,692 4,897 5,158 3,659 4,240 Shareholdings in associated companies 34 34 34 34 22 Other assets 210
Slide 27: Margins and Interest Contribution
MARGINS AND INTEREST CONTRIBUTION Margins per business area Interest contribution per business area Estimated annualized margins including commissions, excluding front and back-end fees over 3M NOKm, estimated interest contribution including commissions, excluding front and back-end fees over 3M Nib
Slide 28: Real Estate Financing Exposure
REAL ESTATE FINANCING EXPOSURE Geographical residential property exposure Total NOK 12,971m* Geographical commercial property exposure Total NOK 2,699m* 12% 9% 6% 6% 7% 38% Oslo Oslo 6% 41% Akershus Sweden Vestfold Vestland Sweden Akershus 9% Buskerud 12% Vestfold Others Others 29% 24% 28 *) Residen
Slide 29: Sweden
SWEDEN Exposure in Sweden (NOKm) Total NOK 2,748m Stable Exposure • High deal flow throughout 2024 ensured strong volume growth towards year-end. 2,778 • Stable exposure YTD. Volume growth expected in Q4-25. 2,748 • High focus on expanding network and customer base. • Good credit quality ensures an
Slide 30: Liquidity Buffer
LIQUIDITY BUFFER Low credit and market risk (NOKm) Comments • Cash on hand. 608 • Highly liquid bonds. 1,549 • Low credit risk. • No interest rate or foreign exchange risk. Cash (Norges Bank & DNB) • Access to central bank Bonds issued by government & PSEs facilities and repo market. Covered bonds I
Slide 31: Funding
FUNDING Sources (NOKm) Deposits & senior debt NOKm, Deposits 13,227 Percent customer deposits of net lending to customers Senior debt 6,737 71.2% 68.7% 69.7% AT1 & T2 debt 1,250 64.0% 62.1% 7,336 Other debt 464 7,348 7,347 6,737 7,284 Equity capital 5,084 Key funding and liquidity ratios 14,324 13,7
Slide 32: Customer Deposits
CUSTOMER DEPOSITS Deposits by size (NOKm) Deposits by product (NOKm) > NOK 20m 2,827 369 NOK 10 - 20m 1,053 245 168 NOK 5 - 10m 808 385 Floating rate retail 198 NOK 2 - 5m 1,227 2,270 2,362 NOK 0 - 2m 1,195 2,671 Floating rate corporate 1,852 - 1,000 2,000 3,000 4,000 5,000 Floating rate Fixed rate
Slide 33: Market Funding
MARKET FUNDING Market funding maturities (NOKm) * Cost of new market funding ** 250 124 121 575 94 120 300 72 2,000 0 46 1,400 1,400 1,250 32 31 25 24 750 2026 2027 2028 2029 2030 3M 6M 12M 2Y 3Y 5Y Senior Call on Subordinated Capital 30.06.2025 30.09.2025 *) Net of own holdings as of 30.09.2025. 33
Slide 34: Commitments by Size
COMMITMENTS BY SIZE Commitment size per customer (NOKm) Distribution of commitments by size (NOKm) 524 2% < 10 433 18% 5,187 25% 10 - 50 4,334 5,250 50 - 100 < 10 4,644 10 - 50 1,870 50 - 100 100 - 150 2,646 100 - 150 150 - 200 2,810 150 - 200 8% 200 - 250 3,777 20% > 250 2,388 200 - 250 1,781 5,447
Slide 35: Commitments by Risk Classification
COMMITMENTS BY RISK CLASSIFICATION Risk classification (NOKm) * Risk classification 4% 5,772 Low risk 8% 4,902 21% 16,044 Moderate risk 15,732 Low risk Moderate risk High risk 1,967 High risk Impaired 1,914 1,033 Impaired 975 67% Q2-25 Q3-25 35 *) Risk classification of credit exposure according to
Slide 36: Proven Track Record for Credit Quality
PROVEN TRACK RECORD FOR CREDIT QUALITY • No losses from 2008 to 2012. 2008 0.00% 2009 0.00% • Total confirmed losses limited to NOK 203m during 18 years of 2010 0.00% operation. 2011 0.00% • Accumulated lending amounted to approx. NOK 193 billion during 2012 0.00% the past 18 years. Total confirmed
Slide 37: Pareto Bank
( Pareto bank