Flekkefjord Sparebank (FFSB) investor relations material

Executive summary

• Net profit after tax for Q1 2026 was MNOK 29.2, up from MNOK 28.7 in Q1 2025, reflecting continued growth in both lending and deposits.

• Return on equity (ROE) for the quarter was 8.1%.

• The quarter was marked by increased margin pressure and higher funding costs, leading to lower net interest income and a higher cost-to-income ratio.

• Credit quality remains strong, with low loan losses and a reduction in non-performing and impaired loans.

Financial highlights

• Consolidated income for Q1 2026 was MNOK 82.8, up from MNOK 74.2 in Q1 2025.

• Net commission income rose to MNOK 13.1 from MNOK 9.1 year-over-year, with positive contributions from payment services, insurance, and product companies.

• Net financial and other income increased to MNOK 14.1 from MNOK 6.7.

• Cost-to-income ratio for the quarter was 55.3%, up from 49.3% in Q1 2025.

• Credit losses year-to-date were MNOK 0.7, down from MNOK 2.3 last year.

Outlook and guidance

• International environment remains mixed with ongoing geopolitical and trade tensions, persistent inflation, and rising interest rates expected to maintain margin pressure and high funding costs throughout 2026.

• Norwegian interest rates have increased due to persistent inflation and wage growth, with further hikes expected.

• Investments in lending and deposit portfolios are anticipated to gradually improve profitability.

• Ongoing focus on cost efficiency and maintaining a competitive cost-to-income ratio.