Sparebank 1 Smn · OSL:MING
Sparebank 1 Smn — Debt Investor Presentation (2025)
48 slides from Sparebank 1 Smn's debt investor presentation, 2025
Slide 1: Debt Presentation First quarter 2025
Debt Presentation First quarter 2025 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 First quarter 2025 4 Capital and Funding 5 Appendix 3
Slide 4: Norwegian Economic Overview
Norwegian Economic Overview 4
Slide 5: Robust Norwegian economy
Robust Norwegian economy GDP Mainland Norway. Growth Unemployment rate 5 Source: Macrobond, Statistics Norway, NAV
Slide 6: 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 7: Overview and price development housing market
Overview and price development housing market • Total size approximately NOK 3,800 billion 4Q 2023 (€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 •
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 ar 23 ar 24 ar 25 20 2 8 8 8 5 Norge Trøndelag Møre og Romsdal Q4 5 Q4 Q4 Q4 8 Q4 Q4 20 Q4 2 Q4 22 Q4 23 Q4 24 Developmen
Slide 9: About SpareBank 1 SMN
About SpareBank 1 SMN Bank SpareBank 4 | seaitor Sh Accounting
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: 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
Slide 13: Mid Norway has a diversified industry structure
Mid Norway has a diversified industry structure Construction Commercial real estate Retail Offshore service Status Sør- Status Status Status Last Trøndelag ( ) Prospects Prospects Prospects Prospects Last Sør- Sør- Last ( ) Trøndelag Trøndelag ( ) Aquaculture Fisheries Agriculture Sør- Trøndelag Sør
Slide 14: 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 15: The leading finance centre, both physically and digitally
The leading finance centre, both physically and digitally Pension Insurance Norway’s best mobile bank Accounting Real estate agency Financing Collections Payments Saving Physical and digital relationship «One SMN» We offer our customers the best of both worlds: We engage with our customers through p
Slide 16: First Quarter 2025
First Quarter 2025 | aaae lela oleletteltat me See ibis aleiay | seiciti ame) UB MME tGt = : Bank SpareBank 4 | seaitor Sh) Accounting
Slide 17: 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 %
Slide 18: Achieving financial targets
Achieving financial targets Return on equity (per cent) Solidity (per cent) Solidity oli itet tDistribution elin s ra 0 44 40 0 23 50 8 88 83 8 2022 2023 2024 Q 25 2022 2023 2024 Q 25 Cost/income bank ex. finance (per cent) Cost/income subsidiaries ex. finance (per cent) en oms e ler i t Nor e pare
Slide 19: Profitable and solid
Profitable and solid Return on equity CET1 ratio 2 0 85 85 82 83 8 0 54 44 40 Q 24 Q2 24 Q3 24 Q4 24 Q 25 Q 24 Q2 24 Q3 24 Q4 24 Q 25 Result per ECC Loan losses in per cent of total lending 42 0 2 4 8 4 43 4 43 0 08 0 05 0 04 0 03 Q 24 Q2 24 Q3 24 Q4 24 Q 25 Q 24 Q2 24 Q3 24 Q4 24 Q 25 19
Slide 20: 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 rowt Q arterly rowt eposit mar in 0 5 2 3 0 85 0 2 2 34 2 , 2, 0 0 55,3 5 ,5 5 ,4 8 38 55 24 0 0 4 0 0 88 0 83 Q 24 Q2 24
Slide 21: 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 rowt Q arterly rowt 5 55 24 33 5 28 42 02 0 0 25 25 24 3,8 4,0 24 2 43 0,8 3,3 5, 8, 0, 0, ,8 ,2 08 0 0 0 0 0 8 05 04 0 44 0 45 0 44
Slide 22: 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 23: Income
Income Net interest income and other income (NOKm) Commission income ommission in ome oli o N rin skre Net interest in ome , 0 , 52 , , 5 , 08 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 5 5 4 52 5 0 Payment transmission income 80 107 79 91 77 -27 3 4 8 Cre
Slide 24: Costs
Costs Total operating expenses per quarter (NOKm) Costs per category • Total costs decreased by 42NOKm from the previous quarter. Costs in the ank bsi iaries bank bank decreased by 54NOKm. Q4 2024 included capital tax costs and higher national insurance contribution account of 60NOKm • Increased cos
Slide 25: 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) ort a es ort a es n e by o bon s 88 5 ommer ial real estate 24 23 ri lt re an orestry 3 08 orporate stomers Transport an ot er ser i es 2 02 33 onstr tion, b il in 4
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 0 85 85 2 2 2 4 20 5 20 0 20 5 8 30 4 2 4 8 0 Q 24 Q 25 Q 24 Q2 24 Q3 24 Q4 24 Q 25 26
Slide 27: 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 Q1 25 per Q4 24 5 o sin
Slide 28: Losses
Losses Loan losses (NOKm) Distribution of losses in the quarter (NOKm) 5 4 35 2 30 20 24 2 etail bankin 4 orporate bankin 5 Q 23 Q2 23 Q3 23 Q4 23 Q 24 Q2 24 Q3 24 Q4 24 Q 25 pare ank inans i t Nor e oan losses in per ent o len in (ann alise ) 0 2 0 08 0 05 00 0 05 0 03 0 04 0 03 0 3 Q 23 Q2 23 Q3 2
Slide 29: Problem loans
Problem loans en in to stomers in sta e 3 o ross len in 0 0 8 0 0 0 2 0 0 88 08 0 82 0 8 2,2 2,28 2,2 0 2,23 2,3 2,044 2,0 5 2,085 , 4 ,888 Q4 22 Q 23 Q2 23 Q3 23 Q4 23 Q 24 Q2 24 Q3 24 Q4 24 Q 25 29
Slide 30: Capital & Funding
Capital & Funding Bank SpareBank 4 | seaitor Sh) Accounting
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
Slide 32: Solidity
Solidity CET 1 Leverage ratio 8 88 83 8 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 Q 25 Tar et 2022 2023 2024 Q 25 T e ro ps’ pillar 2 re irement is , per enta e points, w ereby ,0 pp
Slide 33: Development in CET1 capital and capital adequacy
Development in CET1 capital and capital adequacy CET1 ratio in per cent 83 8 88 83 80 8 2 25 4 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
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 8 N NOK 23 0 0 N rr 23 2 4 2025 202 202 2028 202 rr 2 0 o ere 4 5 05 0 03 00 NOK Q2 25 Q3 25 Q4 25 Q 2 Q2 2 Q3 2 Q4 2 Q 2 Q 24 Q 25 • Div
Slide 35: EUR Issuance history
EUR Issuance history EUR mln NOK bn 500 250 450 400 200 350 300 150 250 200 100 150 100 50 50 - - 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Q1 2025 04.01.2003 04.01.2004 03.01.2005 03.01.2006 03.01.2007 03.01.2008 02.01.2009 02.01.2
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
Slide 37: Diversified deposit portfolio
Diversified deposit portfolio Deposits by sector (NOKbn) Deposits covered by the deposit guarantee scheme (NOKbn) a e earners bli se tor Not o ere orporate o ere by t e arantee s eme 48 4 33 22 5 5 5 3 8 58 48 45 4 50 22 3 5 2 5 50 52 5 44 5 Q4 20 Q4 2 Q4 22 Q4 23 Q4 24 Q 25 a e earners orporate bli
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 •
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
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
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
Slide 42: Reporting – Allocation (31 March 2025)
Reporting – Allocation (31 March 2025) 1 2 3 4 EU Taxonomy Use of Proceeds Reporting External Review Alignment Eligible Green Loan Portfolio (31 March 2025) Green Funding (31 March 2025) Amount Instrument Due Amount Issuance Date (NOK m) (ISIN) Date (NOK m)* XS2051032444 sep-19 sep-26 5,700 Green Re
Slide 43: Appendix
Appendix 43
Slide 44: High value creation over time
High value creation over time , mpli it market al e (NOKbn) O ( ) 4,4 4,0 3, 3,5 2,2 2,3 ,5 3 ,3 3 0, 0,0 30 3 2 20 20 3 0 20 5 20 20 20 8 20 2020 202 2022 2023 2024 Q 25 44
Slide 45: 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 (56.5%) 69 87 68 76 66 -18 3 SpareBank
Slide 46: 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 47: 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 48: 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,