SpareBank 1 Sør-Norge (SB1NO) investor relations material

Executive summary

• Q3 pre-tax profit was NOK 2,177m, up NOK 57m YoY and NOK 95m QoQ; lending growth, lower costs, investment income and low impairments supported results.

• After-tax ROE was 13.2%, or 14.2% excluding merger goodwill; cost-to-income was 34.8% and CET1 was 17.70%.

Financial highlights

• Q3 net interest income was NOK 2,237m, up 4.2% QoQ and down NOK 92m YoY; day-adjusted NII rose NOK 67m QoQ, primarily on lending growth.

• Q3 operating expenses fell 2.3% YoY adjusted for prior-year merger one-offs, despite 4.3% salary growth.

• Q3 impairments were NOK 85m, versus NOK 54m in Q2; net financial investment income included an NOK 80m Forretningspartner sale gain.

• 9M pre-tax profit was NOK 6,264m, down NOK 92m YoY; 9M operating expenses declined NOK 222m to NOK 3,788m.

Outlook and guidance

• Long-term targets remain ROE above 14%, cost-to-income below 35% and CET1 above 16.71%; dividend policy targets cash distribution of ~50% of annual profit.

• Annual merger synergies are estimated at NOK 550m from 2027; 87% were realized, operational synergies completed in Q2, and the 150-FTE reduction plan remains on track.

• 80 of 150 targeted FTE reductions remained for Q4; further technology-led efficiency gains are planned without a specific FTE target or timeline.

• Normalized impairment guidance is 12–15 bps; year-to-date impairments were six bps.