Haugesund Sparebank (HGSB) investor relations material

Growth and market position

• Achieved steady growth above market average, especially notable in 2023 and 2024, with a significant market share increase projected for Q3 2025 after expanding the market area.

• Private market employees have contributed to market share gains, maintaining strong growth and competitiveness.

• Total assets and lending have grown consistently, with a boost from the Tysnes merger, reaching NOK 24.7 billion and a clear path to the NOK 30 billion target by 2032.

• Lending portfolio now stands at approximately NOK 22 billion, with a balanced split between personal and business markets.

Financial performance and profitability

• Net profit exceeded NOK 200 million as of Q3 2024, a significant increase from the previous year.

• Net interest income has risen steadily, though it has recently plateaued due to fewer-than-expected rate cuts.

• Operating costs increased during the merger process but are now trending down, with cost-to-income ratio improving.

• Dividend income and value changes from Eika holdings have positively impacted results.

• Return on equity reached 11.5%, surpassing the long-term 10% target.

Capital, liquidity, and risk

• Capital adequacy improved after regulatory changes and the Eika alliance, with CET1 ratio at 21.24%, well above the 16.71% requirement.

• Deposit growth has been strong in 2024, with deposit coverage rising to 77.84%, exceeding the 70% target.

• Credit losses remain low at 0.06% of gross loans, and non-performing loans are stable at 0.86%.

• The bank maintains a solid buffer, with no immediate need to raise additional capital for growth.