HØLAND OG SETSKOG SPAREBANK (HSPG) investor relations material

Executive summary

• Net profit after tax was NOK 5.9 million, down from NOK 11.6 million year-over-year, with pre-loss profit at NOK 10.6 million versus NOK 18.7 million last year.

• Total business volume, including EBK financing, reached NOK 10.5 billion, up 8.5% over 12 months.

• Customer deposits grew 1.9% to NOK 4.9 billion, while gross loans including EBK rose 7.8% to NOK 8.5 billion.

• Cost-to-income ratio (excl. value changes) increased to 71.93% from 57.69% year-over-year.

Financial highlights

• Net interest income was NOK 30.2 million (NOK 29.1 million last year), with total net interest including EBK at NOK 32.0 million.

• Net commission income (excl. EBK) was NOK 9.24 million, nearly flat year-over-year.

• Operating expenses rose to NOK 29.8 million from NOK 23.3 million, mainly due to external resources for handling distressed exposures.

• Loan losses and provisions totaled NOK 2.4 million (NOK 3.1 million last year).

Outlook and guidance

• No increase in problem loans in the retail segment, but the new housing market remains slow, impacting corporate customers.

• Continued focus on customer service, competence development, and efficiency to ensure long-term profitability.

• Further reduction in distressed exposures expected during 2026.