Sparebank 1 Smn · OSL:MING
Sparebank 1 Smn — Sparebank 1 Smn Prim Cap — Q1 2025 Earnings Presentation
48 slides from Sparebank 1 Smn's earnings presentation, May 8, 2025
Slide 1: First quarter 2025
First quarter 2025 MÅ FÅ ORGINALBILDE May 8th 2025 Trond Søraas CFO
Slide 2: Q1 2025 Profitable and solid
Q1 2025 Profitable and solid • Return on equity of 14.0 per cent Strong NII, broad growth and reduced costs • Seasonally strong results from subsidiaries YoY top line growth in Regnskapshuset SMN and EM1 Midt-Norge alike. • Increased contribution from SpareBank 1 Gruppen compared to Q1 2024, particu
Slide 3: Prepared to navigate a world of significant uncertainty
Prepared to navigate a world of significant uncertainty Deglobalization Security policy Climate Regulation Unexpected events 3
Slide 4: High value creation over time
High value creation over time 4
Slide 5: The leading finance centre, both physically and digitally
The leading finance centre, both physically and digitally Phygital relationship «One SMN» We offer our customers the best of both worlds: We engage with our customers through personalised service combined with modern and comprehensive journeys that include user-friendly digital solutions products, s
Slide 6: Mortgage customers are choosing SpareBank 1
Mortgage customers are choosing SpareBank 1 Retail market Which bank do you/your household have a mortgage with? If multiple, the largest one Profit before tax (NOKm) Base: Population with a mortgage Household share of mortgage bank SpareBank 1-banks passes DNB in share of mortgage customers SpareBa
Slide 7: Norion Commercial Real Estate becomes part of SpareBank 1 SMN
Norion Commercial Real Estate becomes part of SpareBank 1 SMN Corporate market Profit before tax (NOKm) Expanding nationally after acquiring T ’ largest CRE broker From left: Kjetil Reinsberg, Jan-Frode Janson and Knut Efskin. Adresseavisen, 18.February 2025 Photo: Gunnar Okstad Translated text 7
Slide 8: New division for Economic Crime and Business Support
New division for Economic Crime and Business Support Economic Crime and Business Support Johan-Petter Winsnes Economic crime AML customer mgmt Business deliveries Real estate mgmt, Group quality security, and procurement • Creating better customer experiences with simpler processes • Streamlining wi
Slide 9: The merger in Sunnmøre benefits customers, owners, and the community
The merger in Sunnmøre benefits customers, owners, and the community Customer offer and presence • Enhanced service spectrum and increased lending capacity • Finance centres in Ålesund, Ørsta, Volda, and Sykkylven Return to owners • Capital relief with IRB • Increased return on equity from ~ 9% in S
Slide 10: Financial Information
SpareBank a Bank Realtor Accountin: Financial Information
Slide 11: Q1 2025
Q1 2025 14.0% Lending growth Retail banking 0.2% 0.7% Return on equity Corporate banking -0.9% 1,004 mill Deposit growth 5.2% Profit after tax Retail banking 3.4% Corporate banking 5.5% 18.1% Operating margin subsidiaries CET1-ratio Regnskapshuset SMN 21.3% Eiendomsmegler 1 Midt-Norge 6.1% SB1 Finan
Slide 12: Achieving financial targets
Achieving financial targets Return on equity (per cent) Solidity (per cent) Cost/income bank ex. finance (per cent) Cost/income subsidiaries ex. finance (per cent) 12
Slide 13: Growth and margins in Retail Banking - quarterly
Growth and margins in Retail Banking - quarterly Lending volume (NOKbn) Deposit volume (NOKbn) Margins vs NIBOR3M 13
Slide 14: Growth and margins in Corporate Banking - quarterly
Growth and margins in Corporate Banking - quarterly Lending volume (NOKbn) Deposit volume (NOKbn) Margins vs NIBOR3M 14
Slide 15: Results
Results Change Change from NOK mill Q1 25 Q4 24 Q3 24 Q2 24 Q1 24 from Q4 24 Q1 24 Net interest income 1,321 1,372 1,355 1,310 1,336 -51 -15 Commission income and other income 648 580 553 680 579 68 69 Operating Income 1,969 1,953 1,908 1,990 1,915 17 54 Total operating expenses 859 901 810 801 789
Slide 16: Income
Income Net interest income and other income (NOKm) Commission income NOK mill Q1 25 Q4 24 Q3 24 Q2 24 Q1 24 C ha nge f ro m Q 4 2 4 C ha nge f ro m Q 1 2 4 Payment transmission income 80 107 79 91 77 -27 3 Credit cards 13 18 18 17 18 -5 -5 Commissions savings and asset mgmt 12 13 13 12 11 -1 0 Commi
Slide 17: Costs
Costs Total operating expenses per quarter (NOKm) Costs per category • Total costs decreased by 42NOKm from the previous quarter. Costs in the bank decreased by 54NOKm. Q4 2024 included capital tax costs and higher national insurance contribution account of 60NOKm • Increased costs in EiendomsMegler
Slide 18: Broad product range and a diversified income platform
Broad product range and a diversified income platform Ownership interests Profit after tax (NOKm) 18
Slide 19: Losses
Losses Loan losses (NOKm) Distribution of losses in the quarter (NOKm) 19
Slide 20: Strong liquidity and balanced maturity structure
Strong liquidity and balanced maturity structure • Diversified deposit base with deposit-to-loan ratio of 59 per cent • Solid regulatory headroom Capital markets funding (NOKbn) Maturity structure*) (NOKbn) Liquidity Coverage Ratio (LCR) T T *) SP, SNP. Final maturity 20
Slide 21: Solidity
Solidity CET 1 Leverage ratio q q T T ’ q T -capital. The bank is subject to a provisional add-on of 0.7 per cent to its Pillar 2 requirement. Until the application for adjustment of IRB models has been processed the CET1 requirement is 16.95% 21
Slide 22: 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 23: SpareBank 1 Markets and Swedbank establish new nordic brokerage firm
SpareBank 1 Markets and Swedbank establish new nordic brokerage firm Together with its long-time business partner and international competitor, Swedbank, SpareBank 1 Markets is launching a new initiative in Sweden. Stein Husby, CEO of SpareBank 1 Markets. Photo: Mikaela Bergli Dagens Næringsliv, 4.
Slide 24: 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 25: Appendix
Bank SpareBank 4 teator Sei counting Appendix
Slide 26: Macro in Mid-Norway
Macro in Mid-Norway Unemployment Housing market dynamics Mid-Norway Wholly unemployed as a percentage of the labor force Norge Trøndelag Møre og Romsdal Development in housing prices Number of bankruptcies in Trøndelag, Møre & Romsdal Seasonally adjusted prices T T T 100 2015 Q1 25 Source: NAV, SSB
Slide 27: Profitable and solid
Profitable and solid Return on equity CET1 ratio Result per ECC Loan losses in per cent of total lending 27
Slide 28: Diversified deposit portfolio
Diversified deposit portfolio Deposits by sector (NOKbn) Deposits covered by the deposit Liquidity Coverage Ratio guarantee scheme (NOKbn) (LCR) Public deposits are not covered by the guarantee scheme, but are mostly bound by contractual obligations 28
Slide 29: Well diversified lending portfolio dominated by mortgages
Well diversified lending portfolio dominated by mortgages Loans per sector as at 31st of March 2025 and change last 12 months (NOKbn) T q 29
Slide 30: Commercial property, construction, building
Commercial property, construction, building Share of commercial real estate exposure Rental properties make up 78 % 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 Q125 per Q4 24 *Gross l
Slide 31: Robust mortgage portfolio
Robust mortgage portfolio Loan-to-value ratio in the mortgage portfolio Risk weight mortgages Share of mortgages by LTV T 31
Slide 32: Problem loans
Problem loans BB Lending to customers in stage 3 = % of gross lending 0.99% 0.97% 0.96% wee ee OO wee eee eee te oor 0.92% . 088% eee 08% eee 7” oa ae Tae et ~~. 082% a ~. - Tee 0.78% , % 2,291 2,289 2,260 2,231 2311 i i i i | Q422 Q123 Q223 Q3.23 Q423 Q124 Q2 24 Q3 24 Q4 24 Q125 Bank SpareBank @) R
Slide 33: Subsidiaries
Subsidiaries Change Change NOK mill, SMN's share in parentheses Q1 25 Q4 24 Q3 24 Q2 24 Q1 24 from Q4 24 from Q1 24 EiendomsMegler 1 Midt-Norge (92.4%) 8 -1 8 43 20 8 -12 SpareBank 1 Regnskapshuset SMN (93.3%) 52 -3 -7 54 35 55 17 SpareBank 1 Finans Midt-Norge (64.8%) 69 87 68 76 66 -18 3 SpareBank
Slide 34: Product companies
Product companies Change Change NOK mill, SMN's share in parentheses Q1 25 Q4 24 Q3 24 Q2 24 Q1 24 from Q4 24 from Q1 24 SpareBank 1 Gruppen (19.5%) 59 99 86 1 40 -40 19 Gain from merger between Fremtind/Eika 452 SpareBank 1 Boligkreditt (23.2%) 24 23 37 35 33 0 -9 SpareBank 1 Næringskreditt (12.7%)
Slide 35: Return on financial investments
Return on financial investments Change from Change from NOK mill Q1 25 Q4 24 Q3 24 Q2 24 Q1 24 Q4 24 Q1 24 Net gain/(loss) on stocks 25 44 -1 4 42 -20 -18 Net gain/(loss) on financial instruments -39 -47 -45 -17 -11 8 -28 Net gain/(loss) on forex -2 42 24 11 22 -44 -25 Net return on financial instru
Slide 36: Equity certificate, key figures
Equity certificate, key figures Key figures Q1 2025 2024 2023 2022 2021 ECC ratio 66.8 % 66.8 % 66.8 % 64.0 % 64.0 % Total issued ECCs (mill) 144.17 144.21 144.20 129.29 129.39 ECC price 182.76 171.32 141.80 127.40 149.00 Market value (NOKm) 26,349 24,706 20,448 16,471 19,279 Booked equity capital p
Slide 37: Balance sheet
Balance sheet NOKbn 31.3.25 31.3.24 Cash and receivables from central banks 2.1 2.0 Deposits with and loans to credit institutions 10.3 8.1 Net loans to and receivables from customers 178.9 168.4 Fixed-income CDs and bonds 37.6 36.1 Derivatives 6.6 7.3 Shares, units and other equity interests 1.0 1.
Slide 38: Maturity structure
Maturity structure SP, SNP. Final maturity NOKbn 38
Slide 39: Development in CET1 capital and capital adequacy
Development in CET1 capital and capital adequacy CET1 ratio in per cent q q 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 T 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Q1 2025 CET1 8,254 9,374 10,679 12,192 13,223 13,820 14,727 15,830 17,041 17,790 19,776 21,589 22
Slide 40: Strengthened position in the business market
Strengthened position in the business market Market shares Trøndelag, Møre & Romsdal Accountancy Corporate lending Newly established businesses 40
Slide 41: Development trends in Mid-Norway's business sector
Development trends in Mid-Norway's business sector Regional network, Norges Bank Highly positive economics development Normal situation Highly negative economic development Q3 2024 Q4 2024 Q1 2025 41
Slide 42: Mid-Norway has a diversified economic structure
Mid-Norway has a diversified economic structure Commercial real Construction Retail Offshore services estate Status Sør- Status Status Status Previous Trøndelag ( ) Outlook Outlook Outlook Outlook Previous Sør- Sør- ( ) Trøndelag Trøndelag ( ) Aquaculture Fisheries Agriculture Sør- Trøndelag Sør- St
Slide 43: Staying on course during the transformation of the accounting sector
Staying on course during the transformation of the accounting sector Solid growth in advisory revenus (NOKm) • CAGR of 25 per cent • The share of advisory revenues out of total revenues has increased from 11% to 18% 43
Slide 44: Customer in focus with «Bank in accounting»
Customer in focurs with «Bank in accounting» Development in the share of joint customers over the past two years* Pilot – market area Molde 42 % Joint customers are more satisfied • We coordinate on behalf of the customer, rather than the customer having to coordinate on our behalf • Customer satisf
Slide 45: Close interaction between bank and real estate agent
Close interaction bertween bank and real estate agent Tips from Real Estate Agent to Bank Advisor Synergy from Real Estate Agent to Bank* Market area: Trondheim Market area: Trondheim Synergy: the share of properties sold by EiendomsMegler 1 Midt-Norge that are mortgaged with SpareBank 1 SMN. 45
Slide 46: Movements in the Savings and Investment area
Movements in the Savings and Investment area Net fund subscription by channel As of Q1 2025 (NOKm) Net subscriptions in Active Management • Net subscriptions in active portfolio management totaled 310 NOKm in Q1 • SMN accounted for 40 per cent of net subscriptions among the Alliance banks in Q1 46
Slide 47: Digitalization and the use of AI are critical to delivering on our strategy
Digitalization and the use of AI are critical to delivering on our strategy Easy to meet daily needs Fast and efficient service Competent advisors with AI digitally when needed tools 47
Slide 48: The Group’s AI program has delivered efficiency gains and business value
The Group’s AI program has delivered efficiency gains and business value Enabled large-scale AI development Migration of data and analytics platform to the cloud Efficient searches using AI in internal procedure libraries AI-powered chatbot in the ~ 44.000 queries in Q1 Training on customer customer
Sparebank 1 Smn Prim Cap — Q1 2025 Earnings Presentation on 6ix