SPAREBANK 1 RINGERIKE HADELAND (RING) investor relations material

Executive summary

• Net profit after tax for Q1 2026 was NOK 165 million, up 12% year-over-year and from NOK 148 million in Q1 2025, with annualized ROE of 13.0%, exceeding the >11% target.

• Earnings per equity certificate reached NOK 10.26, and the cost/income ratio for the group was 42.3%.

• Strong growth in non-interest income, especially from payment and insurance, offset lower net interest income and higher operating costs.

• The bank reversed NOK 12.5 million in discretionary loss provisions due to improved credit risk and reduced project finance exposure.

• Dag Tjernsmo appointed as new chair of the board.

Financial highlights

• Net interest income declined 2.9% year-over-year to NOK 196 million, with margin pressure.

• Net commission and other income increased to NOK 99 million, up 11% year-over-year.

• Net profit after tax for Q1 2026 was NOK 165 million, up from NOK 148 million in Q1 2025.

• EPS for Q1 2026 was NOK 10.26.

• Cost growth moderated to 5.9% year-over-year, with operating expenses at NOK 141 million.

Outlook and guidance

• High competition in the mortgage market; demand is picking up, but corporate lending remains cautious.

• Norges Bank signaled possible rate hikes in 2026 to curb inflation, which may dampen consumption and investment.

• The bank aims for a minimum ROE of 11% and to distribute at least 60% of profit to equity certificate holders.

• Low credit losses and delinquencies expected to persist, though some increase possible due to high rates and inflation.

• Continued focus on balancing solidity, profitability, cost, and growth.