Grong Sparebank (GRONG) investor relations material

Executive summary

• YTD pretax profit was NOK 164.5m vs NOK 163.1m; net profit rose to NOK 139.7m from NOK 133.0m, supported by financial-asset income and lower loan losses, offset by higher costs and lower net interest income.

• Annualized return on equity was 12.88% vs 13.67% YoY; results included a NOK 48.6m Q3 upward valuation of Eika Gruppen shares.

Financial highlights

• YTD net interest income was NOK 176.6m vs NOK 183.0m; Q3 net interest income rose to NOK 62.2m from NOK 57.2m in Q2.

• Net fee and other operating income, excluding financial-asset income, was NOK 76.3m vs NOK 75.5m; net income from financial assets rose to NOK 65.2m from NOK 42.8m.

• Operating costs increased 13.81% YoY to NOK 146.2m; staff costs rose 14.12% to NOK 80.7m.

• YTD net loan and guarantee losses were NOK 7.4m vs NOK 9.8m; tax expense was NOK 24.8m, leaving net profit of NOK 139.7m.

Outlook and guidance

• Priorities include profitable growth within risk, capital and funding capacity; stronger recurring earnings, cost discipline, improved capacity utilization and processes, and technology use without weakening service or controls.

• Plans include broader insurance, savings and service relationships; accounting services have started positively, with customer acquisition and development as a standalone business and broader offering.

• A transition plan for ESG risk began in Q3, with completion targeted by year-end; payout ratio target is 50–80%, with assessment at year-end.