SpareBank 1 Sør-Norge (SB1NO) investor relations material

Executive summary

• Pre-tax profit for Q1 2026 was NOK 2,005 million, with return on equity after tax at 11.8% (12.7% excluding merger goodwill).

• Lending volume increased by 3% year-over-year to NOK 424 billion, with deposit growth at 4.0%.

• Quarterly lending grew 1.3%, with 0.9% growth in Retail and 1.9% in Corporate segments.

• Cost to income ratio improved to 38.3%, reflecting effective cost management and ongoing FTE reductions.

• Cost reductions and synergy realization contributed to improved results.

Financial highlights

• Net interest income for Q1 2026 was NOK 2,180 million, down from NOK 2,323 million in Q4 2025, with a net interest margin of 1.71%.

• Net commission and other income totaled NOK 799 million, with strong performance in real estate agencies.

• Net income on financial investments was NOK 368 million, up NOK 49 million sequentially but down NOK 27 million year-over-year.

• Operating expenses were NOK 1,282 million, down NOK 47 million from Q4 2025; cost to income ratio was 38.3%.

• Impairment losses on loans and financial commitments were NOK 59 million, with an impairment ratio of 0.06%.

Outlook and guidance

• Norwegian economy shows resilience, with moderate growth expected in 2026; inflation remains above target and policy rate is forecast to rise to 4.25–4.5% by year-end.

• Financial targets include ROE >14%, CET1 capital ratio >16.74%, cost to income <35%, and operational synergies >NOK 550 million by 2027.

• Dividend policy targets ~50% payout of annual profit, supplemented by a share buyback program.

• Uncertainty remains due to trade policy, geopolitical tensions, and macroeconomic factors.