Slide 1: Financial Results – Second Quarter 2026
PARETO BANK Financial Results – Second Quarter 2026
Slide 2: Highlights
Highlights Financials Business Area Update & Outlook 2
Slide 3: Second Quarter 2026 Highlights
SECOND QUARTER 2026 Highlights • Profit after tax NOK 36.9m (NOK 200.7m in Q2-25). • Return on equity after tax 2.0% (15.1%). • Total impairments and losses of NOK 201.0m (NOK 17.1m). Individual impairments NOK 129.6m (NOK 31.3m) mainly within residential property development. Write downs of NOK 28.
Slide 4: Highlights
Highlights Financials Business Area Update & Outlook 4
Slide 5: Key Figures
KEY FIGURES Profit after tax (NOKm) Return on Equity * CET1 ratio 200.7 21.3% 176.8 19.9% 20.2% 19.8% 19.7% 15.1% 13.0% 119.7 8.3% 76.7 5.0% 36.9 2.0% Q2-25 Q3-25 Q4-25 Q1-26 Q2-26 Q2-25 Q3-25 Q4-25 Q1-26 Q2-26 Q2-25 Q3-25 Q4-25 Q1-26 Q2-26 Net interest income (NOKm) Cost/Income ratio Loss ratio **
Slide 6: Income Statement
INCOME STATEMENT P&L (NOKm) Q2-26 Q2-25 H1-26 H1-25 • Interest income down with lower margins and activity Net interest income 288.0 335.5 587.4 664.9 driven fees. Net other operating 10.8 7.8 21.8 10.6 income • Fair value gains up from last year, other fees in line Total net income 298.8 343.2 609.
Slide 7: Change in Quarterly Net Interest Income
CHANGE IN QUARTERLY NET INTEREST INCOME (NOKm) 5.0 299.4 -1.3 2.5 288.0 - 9.6 3.3 - 5.9 - 0.1 - 5.2 - 0.2 Q1-26 Lending volume Deposit volume Market funding Surplus liquidity Fee income Lending rate Deposit rate Other Interest days Q2-26 7
Slide 8: Interest Margins
INTEREST MARGINS Lending and deposit margin 5.8% 5.7% 5.6% 5.4% 4.9 % 4.8% 4.7% 4.9% 4.7% 4.4% 0.4% 0.2% 0.1% -0.1% 0.0% Q2-25 Q3-25 Q4-25 Q1-26 Q2-26 Lending margin Deposit margin Net interest margin 8 Note: Lending and deposit margins relative to average 3M NIBOR. Net interest margin is total net
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) 201.0 155.9 1,120 872 722 105.5 643 761 1,555 1,652 1,322 594 1,033 975 464 343 255 272 17.1 15.1 Q2-25 Q3-25 Q4-25 Q1-26 Q2-26 Stage 3 Stage 2
Slide 10: Solidity and Capital Requirements
SOLIDITY AND CAPITAL REQUIREMENTS Per cent 2100.00% • Long-term CET1 target of 15.8%, in line with the 2000.00% 19.8 NFSA expectation. 19.7 - 0.1 • Pareto Bank holds a 18.8 1900.00% buffer above this target. 1800.00% • Limited retained profits during Q1-Q3’26 due to high 2025 dividends. 1700.00% • L
Slide 11: Financials
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 1,605m 6% RESIDENTIAL FINANCING NOK 4,173m 14% 32% COMMERCIAL PROPERTY RESIDENTIAL DEVELOPMENT FINANCING FINANCING NOK 3,528m 17% NOK 7,878m 31% CORPORATE FINANCING NOK 7,660m 12
Slide 13: Quarterly Exposure per Business Area
QUARTERLY EXPOSURE PER BUSINESS AREA (NOKbn) 11.0 9.7 8.1 8.2 7.9 7.7 7.0 6.6 6.5 6.6 4.7 4.3 4.2 3.4 3.4 3.5 3.0 3.2 2.7 2.7 1.4 1.6 1.4 1.3 1.3 Residential development financing Residential financing Commercial property financing Corporate financing Ship financing Q2-25 Q3-25 Q4-25 Q1-26 Q2-26 13
Slide 14: Ship Financing
SHIP FINANCING Exposure (NOKm) Total NOK 1,605m (Q1-26: NOK 1,268m) INCREASED EXPOSURE EXPECTED FOR Q3-26. Offshore Subsea 351 LTV 42% • Good activity YTD and growth materialized as expected in Q2-26. Ind. Shipping 296 LTV 53% • Activity to continue in Q3-26, but loan redemptions may have effect on
Slide 15: Corporate Financing
CORPORATE FINANCING Corporate exposure (NOKm) Total NOK 7,660m (Q1-26: NOK 7,037m) GROWTH EXPECTED TO CONTINUE IN Q3-26 10% Real Estate 2% 2% Investment Company 4% Retail • Higher than expected growth in Q2-26 due to strong 42% 8% IT/Telecommunications deal flow and few loan redemptions. Health Serv
Slide 16: Residential Property Financing
RESIDENTIAL PROPERTY FINANCING Residential property exposure (NOKm) Total NOK 12,051m FLAT VOLUME EXPECTED IN Q3-26 NORWAY 523 • Rising interest rates, labor costs and material costs lead to a Land w/ houses historically low new-build activity. Growth in material costs to continue. • Projects are po
Slide 17: Commercial Property Financing
COMMERCIAL PROPERTY FINANCING Commercial property exposure (NOKm) Total NOK 3,528m FLAT TO SLIGHTLY FALLING EXPOSURE IN Q3-26 NORWAY • Continued low transaction activity as long-term rate outlook remains high. • Low risk appetite and financing demand. 3,528 SWEDEN Commercial • High transaction activ
Slide 18: Sweden
SWEDEN Exposure Sweden branch (NOKm) Total NOK 5,899m Real Estate Corporate CONTINUED GROWTH AND STEADY DEAL FLOW • Solid growth materialised in Q2-26. Good deal flow and loan commitments opened as planned within both Real Estate and 2,556 Corporate Lending. • Stable exposure projected in Q3-26 due
Slide 19: Total Return
TOTAL RETURN 980 Price Annual Equity Total Return Change Return 780 Pareto 242% 515 % 16 % Bank OSEBX 262 % 262 % 11 % 580 Index 380 180 -20 OSEBX PARB 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 19 Bloomberg as of 01.07.2026.
Slide 20: Appendix
APPENDIX (Pareto bank
Slide 21: Long-Term Ambitions
LONG-TERM AMBITIONS ROE Dividend 15% min. 50% 14.6 % 14.0 % 98.4% 13.8 % 13.6 % 12.4 % 52.9% 49.4% 50.1% 50.0% 2021 2022 2023 2024 2025 2021 2022 2023 2024 2025 21
Slide 22: 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 % 12.4 % 12.0 % 18.8 % 20.0 % 18.2 % 18.2 % 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
Slide 23: Lending Growth
LENDING GROWTH Per business area (NOKm) 25,000 Ship 20,000 Corporate * 15,000 Commercial 10,000 Residential ** 5,000 Residential development 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 *) Including securities financing 23 **) Residential financing repo
Slide 24: Largest Shareholders
LARGEST SHAREHOLDERS 30 June 2026 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 6,156,149 8.02 % • Diversified investor base with 6,376 shareholders. 3 AWC AS 5,182
Slide 25: The Share
THE SHARE Earnings per share (NOK) Book value per share (NOK) 2.44 2.13 68.45 67.60 66.21 1.39 64.07 0.84 60.77 0.32 Q2-25 Q3-25 Q4-25 Q1-26 Q2-26 Q2-25 Q3-25 Q4-25 Q1-26 Q2-26 25
Slide 26: Quarterly Income Statement
QUARTERLY INCOME STATEMENT P&L (NOKm) Q2-26 Q1-26 Q4-25 Q3-25 Q2-25 Net interest income 288.0 299.4 310.6 304.4 335.5 Net other operating income 10.8 10.9 3.7 1.2 7.8 Total net income 298.8 310.3 314.3 305.6 343.2 Total operating expenses 52.9 56.3 54.0 59.2 62.9 Operating profit before 245.9 254.1
Slide 27: Quarterly Balance Sheet
QUARTERLY BALANCE SHEET (NOKm) Q2-26 Q1-26 Q4-25 Q3-25 Q2-25 Loans to credit institutions 1,677 2,213 1,589 1,841 3,214 Loans to customers 19,406 19,249 18,774 18,983 19,249 Bonds and other securities 2,862 2,861 4,668 5,692 4,897 Shareholdings in associated companies 33 33 33 34 34 Other assets 279
Slide 28: 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 29: Real Estate Financing Exposure
REAL ESTATE FINANCING EXPOSURE Geographical residential property exposure Total NOK 12,051m* Geographical commercial property exposure Total NOK 3,528m* 8% 14% 3% 3% 5% 5% 37% Oslo Sweden 6% Akershus Oslo Sweden Akershus Vestfold Vestfold Buskerud 57% Vestland 11% Others Others 23% 27% 29 *) Residen
Slide 30: Sweden
SWEDEN Exposure Sweden branch (NOKm) Total NOK 5,899m Lending Sweden branch (NOKm) Total NOK 4,314m 2,556 1,639 Corporate financing Corporate financing 1,912 1,475 Commercial property 2,017 Commercial property 1,720 financing 1,724 financing 1,429 481 475 Residential financing Residential financing
Slide 31: Liquidity Buffer
LIQUIDITY BUFFER Low credit and market risk (NOKm) Comments • Cash on hand. • Highly liquid bonds. • Low credit risk. • No interest rate or foreign 1 677 exchange risk. 1 879 Cash (Norges Bank & DNB) • Access to central bank Bonds issued by government & PSEs facilities and repo market. Covered bonds
Slide 32: Funding
FUNDING Sources (NOKm) Deposits & senior debt NOKm, Deposits 10,858 Percent customer deposits of net lending to customers Senior debt 7,250 71.2% 69.7% AT1 & T2 debt 1,251 62.2% Other debt 233 7,348 55.9% 6,737 53.6% Equity capital 4,666 6,743 7,250 7,582 Key funding and liquidity ratios • Deposits
Slide 33: Customer Deposits
CUSTOMER DEPOSITS Deposits by size (NOKm) Deposits by product (NOKm) > NOK 20m 2,669 270 NOK 10 - 20m 614 225 236 NOK 5 - 10m 622 248 Floating rate retail 170 NOK 2 - 5m 1,118 1,881 2,142 NOK 0 - 2m 1,087 2,002 Floating rate corporate 1,302 0 1,000 2,000 3,000 4,000 Floating rate Fixed rate 3,949 Sa
Slide 34: Market Funding
MARKET FUNDING Market funding maturities (NOKm) * Cost of new market funding ** 129 300 111 95 250 80 75 575 63 2,850 120 53 42 43 2,000 37 0 33 1,400 28 1,200 750 2026 2027 2028 2029 2030 3M 6M 12M 2Y 3Y 5Y Senior Call on Subordinated Capital 31.03.2026 30.06.2026 *) Net of own holdings as of 30.06
Slide 35: Commitments by Size
COMMITMENTS BY SIZE Commitment size per customer (NOKm) Distribution of commitments by size (NOKm) 423 2% < 10 433 21% 18% 4,586 10 - 50 4,440 4,728 50 - 100 < 10 3,978 10 - 50 2,645 50 - 100 100 - 150 3,689 100 - 150 12% 16% 150 - 200 3,810 150 - 200 200 - 250 4,257 > 250 1,123 200 - 250 2,883 7,50
Slide 36: Commitments by Risk Classification
COMMITMENTS BY RISK CLASSIFICATION Risk classification (NOKm) * Risk classification 7% 5,772 Low risk 7% 5,476 22% 16,044 Moderate risk 16,123 Low risk Moderate risk High risk 1,967 High risk Impaired 1,739 1,033 Impaired 1,652 65% Q2-25 Q2-26 36 *) Risk classification of credit exposure according t
Slide 37: 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 280m during 19 years of 2010 0.00% operation. 2011 0.00% 2012 0.00% • Accumulated lending amounted to approx. NOK 213 billion during 2013 0.28% Commercial the past 19 y
Slide 38: Pareto Bank
( Pareto bank