Sparebank 1 Smn · OSL:MING

Sparebank 1 Smn — Debt Investor Presentation (2025)

48 slides from Sparebank 1 Smn's debt investor presentation, 2025

  1. Slide 1: Debt Presentation Second quarter 2025

    Debt Presentation Second quarter 2025 MÅ FÅ ORGINALBILDE

  2. 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

  3. Slide 3: Content debt presentation

    Content debt presentation 1 Norwegian Economic Overview 2 About SpareBank 1 SMN 3 Second quarter 2025 4 Capital and Funding 5 Appendix 3

  4. Slide 4: Norwegian Economic Overview

    Norwegian Economic Overview 4

  5. Slide 5: Robust Norwegian economy

    Robust Norwegian economy GDP Mainland Norway. Growth Unemployment rate 5 Source: Macrobond, Statistics Norway, NAV

  6. Slide 6: Inflation is down, but still above target

    Inflation is down, but still above target CPI and CPI-ATE Key policy rate 6 Source: Macrobond, Statistics Norway, Norges Bank

  7. Slide 7: Overview and price development housing market

    Overview and price development housing market • Total size approximately NOK 3,900 billion 4Q 2024 (€350 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 •

  8. Slide 8: Macro in Mid-Norway

    Macro in Mid-Norway Unemployment Housing market dynamics Mid-Norway Wholly unemployed as a percentage of the labor force er enta e i eren e in listin sellin pri e nsol properties n 23 n 24 n 25 9 20 5 3 Norge Trøndelag Møre og Romsdal Q4 5 Q4 Q4 Q4 Q4 9 Q4 20 Q4 2 Q4 22 Q4 23 Q4 24 Q2 25 Development

  9. Slide 9: About SpareBank 1 SMN

    About SpareBank 1 SMN Bank SpareBank 4 | seaitor Sh Accounting

  10. 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

  11. 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

  12. Slide 12: SpareBank 1 SMN

    SpareBank 1 SMN City of Trondheim The Norw. Uni. of Science and Tech Main industries Region • T e re ion’s onsists 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 historic

  13. Slide 13: 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

  14. Slide 14: Strategic positions for further growth in the corporate market

    Strategic positions for further growth in the corporate market Commercial real estate brokerage • Market leader in Trøndelag and Møre & Romsdal • Strong local presence and market insight • Ambition to establish a national position Accounting and advisory services • One-stop shop – seamless delivery

  15. Slide 15: The leading finance centre, both physically and digitally

    The leading finance centre, both physically and digitally Comprehensive Reliable, smart, and Strong presence with Skilled advisors with a financial service user-friendly digital 26 finance centres solid local presence offering solution 15

  16. Slide 16: Second quarter 2025

    Second quarter 2025 tlalelst tetetetetetals| ie WEL eee UB ML Lal Tel | = Bank SpareBank 4 | seaitor Sh) Accounting

  17. Slide 17: Q2 2025 First half 2025

    Q2 2025 First half 2025 16.2 % Lending growth Retail banking 1.2% 1.4% 15.0% Return on equity Corporate banking 0.9% Return on equity NOK 1,131 mill Deposit growth Retail banking 0.9% 6.2% NOK 2,134 mill Profit after tax Corporate banking - 1.1% Profit after tax Operating margin subsidiaries 18.8% R

  18. Slide 18: Achieving financial targets

    Achieving financial targets Return on equity (per cent) 2 44 23 2022 2023 2024 Q2 25 Cost/income bank ex. finance (per cent) Cost/income subsidiaries ex. finance (per cent) en oms e ler i t Nor e pare ank e nskaps set N 9 0 5 90 42 50 3 2 3 3 2 2 34 5 30 34 2022 2023 2024 Q2 25 2022 2023 2024 Q2 25

  19. Slide 19: Growth and margins in Retail Banking - quarterly

    Growth and margins in Retail Banking - quarterly Lending volume (NOKbn) Deposit volume (NOKbn) Margins vs NIBOR3M en in ol me (NOKbn) eposit ol me (NOKbn) en in mar in Q arterly ro t Q arterly ro t eposit mar in 5 2 3 0 4 0 2 2 2 34 2 59 4 2 50 09 5 5 3 44 9 3 55 0 09 0 94 09 0 Q2 24 Q3 24 Q4 24 Q 2

  20. Slide 20: Growth and margins in Corporate Banking - quarterly

    Growth and margins in Corporate Banking - quarterly Lending volume (NOKbn) Deposit volume (NOKbn) Margins vs NIBOR3M en in ol me (NOKbn) eposit ol me (NOKbn) Q arterly ro t Q arterly ro t 5 55 24 2 42 02 09 0 09 25 24 24 2 43 0 3 40 33 39 5 4 2 34 0 0 0 9 0 0 0 0 0 0 44 04 0 45 0 44 0 45 Q2 24 Q3 24

  21. Slide 21: Results

    Results Change Change from NOK mill Q2 25 Q1 25 Q4 24 Q3 24 Q2 24 from Q1 25 Q2 24 Net interest income 1.335 1.321 1.372 1.355 1.309 14 26 Commission income and other income 730 648 580 553 681 82 49 Operating Income 2.065 1.969 1.953 1.908 1.990 96 75 Total operating expenses 917 859 901 810 800 59

  22. Slide 22: Income

    Income Net interest income and other income (NOKm) Commission income ommission in ome oli o N rin skre Net interest in ome 2,0 5 ,990 ,952 ,9 9 ,90 C ha nge C ha nge NOK mill Q2 25 Q1 25 Q4 24 Q3 24 Q2 24 f ro m Q 1 2 5 f ro m Q 2 2 4 25 599 4 9 52 5 0 Payment transmission income 80 80 107 79 91 0 -

  23. Slide 23: Broad product range and a diversified income platform

    Broad product range and a diversified income platform Ownership interests Profit after tax (NOKm) ro it rom ins ran e mer er remtin ika Ot er asso iate ompanies pare ank arkets pare ank or altnin N ank pare ank r ppen 5 452 2 0 40 22 3 23 9 3 9 20 2 3 4 9 5 4 35 2 4 3 99 4 3 59 Q2 24 Q3 24 Q4 24 Q 2

  24. Slide 24: Costs

    Costs Total operating expenses per quarter (NOKm) Costs per category • The accrual for incurred costs to Tietoevry for the period 2023 through ank bsi iaries bank Q2 2025, amounting to NOK 47 million, increases IT expenses for the quarter • Costs in the bank are in line with Q1, adjusted for the abo

  25. Slide 25: Well diversified lending portfolio dominated by mortgages

    Well diversified lending portfolio dominated by mortgages Loans per sector as at 30 of June 2025 and change last 12 months (NOKbn) ort a es 02 5 ort a es n e by o bon s ommer ial real estate 24 0 ri lt re an orestry 33 05 orporate stomers Transport an ot er ser i es 2 03 32 siness ser i es 5 onstr t

  26. Slide 26: Robust mortgage portfolio

    Robust mortgage portfolio Loan-to-value ratio in the mortgage portfolio Risk weight mortgages Share of mortgages by LTV T 0 isk ei t mort a es 0 5 isk ei t loor e e ts 5 45 2 4 20 0 20 0 20 5 20 0 02 29 2 9 20 5 2 4 20 0 9 3 5 0 Q2 24 Q2 25 Q2 24 Q3 24 Q4 24 Q 25 Q2 25 26

  27. Slide 27: Commercial property, construction, building

    Commercial property, construction, building Share of commercial real estate exposure Rental properties make up 75 per cent of the banks CRE in the corporate lending book* exposure, mainly to retail trade, industry/storage and offices Distribution of property per Distribution of area Q2 25 per Q4 24

  28. Slide 28: Losses

    Losses Loan losses (NOKm) Distribution of losses in the quarter (NOKm) 5 4 etail bankin 2 35 30 32 29 24 20 2 orporate bankin 2 Q2 23 Q3 23 Q4 23 Q 24 Q2 24 Q3 24 Q4 24 Q 25 Q2 25 pare ank inans i t Nor e 9 oan losses in per ent o len in (ann alise ) 0 2 00 00 0 05 0 05 0 05 0 03 0 04 0 03 Q2 23 Q3

  29. Slide 29: Problem loans

    Problem loans en in to stomers in sta e 3 o ross len in 0 99 09 09 09 0 92 09 0 0 9 0 4 0 2 0 2,29 2,2 9 2,2 0 2,23 2,3 2,0 5 2,0 5 2, 3 2,044 ,9 4 , Q4 22 Q 23 Q2 23 Q3 23 Q4 23 Q 24 Q2 24 Q3 24 Q4 24 Q 25 Q2 25 29

  30. Slide 30: Capital & Funding

    Capital & Funding Bank SpareBank 4 | seaitor Sh) Accounting

  31. Slide 31: Moody’s rating Aa3 (outlook stable)

    Moody’s rating Aa3 (outlook stable) Aa2 Aa3 A1 A2 A3 2021 2022 2023 2024 2025 31

  32. Slide 32: Solidity

    Solidity CET 1 Leverage ratio 9 3 25 25 ilar 2 i an e 00 ilar 2 2 0 0 2 50 o nter y li al b er 2 50 apital onser ation b er 4 50 ystemi risk re irement 4 50 illar min re irement 2022 2023 2024 Q2 25 Tar et 2022 2023 2024 Q2 25 T e ro ps’ pillar 2 re irement is , per enta e points, ereby ,0 pp m st b

  33. Slide 33: Development in CET1 capital and capital adequacy

    Development in CET1 capital and capital adequacy CET1 ratio in per cent 3 9 3 0 2 25 49 4 4 25 ilar 2 i an e 3 00 ilar 2 2 50 o nter y li al b er 2 00 2 50 apital onser ation b er 4 50 ystemi risk re irement 4 50 illar min re irement 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Tar et

  34. Slide 34: Strong liquidity and funding structure

    Strong liquidity and funding structure Capital markets funding (NOKbn) Maturity structure*) (NOKbn) Liquidity Coverage Ratio (LCR) *) SP, SNP. Final maturity T T2 9 N NOK 25 29 0 23 N rr 2 3 0 2025 202 202 202 2029 rr 2 0 9 9 o ere 4 3 9 5 09 03 00 NOK Q3 25 Q4 25 Q 2 Q2 2 Q3 2 Q4 2 Q 2 Q2 2 Q2 24 Q

  35. Slide 35: EUR Issuance history

    EUR Issuance history EUR mln NOK bn 500 300 450 250 400 Total lending, rhs Issued Amount, lhs 350 200 300 250 150 200 100 150 100 50 50 - - 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Q2 2025 Dots show timing and size of all MINGNO EU

  36. Slide 36: MREL requirement fulfilled with a solid buffer

    MREL requirement fulfilled with a solid buffer MREL FULFILMENT SUBORDINATION MREL FULFILMENT Total e irement li ible instr ments Total e irement li ible instr ments 36

  37. Slide 37: Diversified deposit portfolio

    Diversified deposit portfolio Deposits by sector (NOKbn) Deposits covered by the deposit guarantee scheme as at 30.06.25 a e earners (NOKbn) bli se tor orporate 49 4 33 22 9 9 3 9 5 0 4 45 4 20 22 9 4 3 3 20 5 2 0 50 52 44 4 Q4 20 Q4 2 Q4 22 Q4 23 Q4 24 Q2 25 a e earners orporate bli se tor Public s

  38. Slide 38: 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 •

  39. Slide 39: 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 ential b il in s b

  40. Slide 40: 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

  41. Slide 41: 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

  42. Slide 42: Reporting – Allocation (30 June 2025)

    Reporting – Allocation (30 June 2025) 1 2 3 4 EU Taxonomy Use of Proceeds Reporting External Review Alignment Eligible Green Loan Portfolio (30 June 2025) Green Funding (30 June 2025) Amount Instrument Due Amount Issuance Date (NOK m) (ISIN) Date (NOK m)* XS2051032444 sep-19 sep-26 5,913 Green Resid

  43. Slide 43: Appendix

    Appendix 43

  44. Slide 44: High value creation over time

    High value creation over time mpli it market al e (NOKbn) O ( ) 50 44 3 35 22 23 42 3 5 0 3 00 30 3 2 20 20 3 0 20 5 20 20 20 20 9 2020 202 2022 2023 2024 T Q225 44

  45. Slide 45: Subsidiaries

    Subsidiaries Change Change NOK mill, SMN's share in parentheses Q2 25 Q1 25 Q4 24 Q3 24 Q2 24 from Q1 25 from Q2 24 EiendomsMegler 1 Midt-Norge (92.4%) 42 8 -1 8 43 34 -2 SpareBank 1 Regnskapshuset SMN (93.3%) 57 52 -3 -7 54 5 4 SpareBank 1 Finans Midt-Norge (64.8%) 68 69 87 68 76 -1 -9 SpareBank 1

  46. Slide 46: Product companies

    Product companies Change Change NOK mill, SMN's share in parentheses Q2 25 Q1 25 Q4 24 Q3 24 Q2 24 from Q1 25 from Q2 24 SpareBank 1 Gruppen (19.5%) 114 59 99 86 1 55 113 Gain from merger between Fremtind/Eika 452 SpareBank 1 Boligkreditt (23.2%) 16 24 23 37 35 -8 -19 SpareBank 1 Næringskreditt (12.

  47. Slide 47: Return on financial investments

    Return on financial investments Change from Change from NOK mill Q2 25 Q1 25 Q4 24 Q3 24 Q2 24 Q1 25 Q2 24 Net gain/(loss) on stocks 23 25 44 -1 4 -2 19 Net gain/(loss) on financial instruments -3 -39 -47 -45 -17 35 13 Net gain/(loss) on forex -5 -2 42 24 11 -3 -17 Net return on financial instrument

  48. Slide 48: Balance sheet

    Balance sheet NOKbn 30.6.25 30.6.24 Cash and receivables from central banks 2,4 1,5 Deposits with and loans to credit institutions 11,5 12,4 Net loans to and receivables from customers 182,1 172,5 Fixed-income CDs and bonds 36,1 36,2 Derivatives 6,1 6,1 Shares, units and other equity interests 1,0 1

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