SPAREBANK 1 SMN (MING) investor relations material

Executive summary

• Return on equity declined to 11.3% in Q1 2026 from 14.0% in Q1 2025, reflecting lower net interest income, higher credit losses, and weaker contributions from ownership interests due to market value adjustments to securities.

• Net profit after tax was NOK 849 million, down from NOK 1,004 million in Q1 2025.

• Seasonally high activity in subsidiaries, with Regnskapshuset SMN and EiendomsMegler 1 Midt-Norge delivering revenue growth year-over-year.

• Maintained high credit quality and a solid capital position, supported by a diversified loan portfolio.

• Pre-tax profit for Q1 2026 was NOK 1,055 million, down from NOK 1,269 million year-over-year.

Financial highlights

• Total operating income was NOK 2,071 million, with net profit after tax at NOK 849 million and operating expenses at NOK 916 million, up 3.7% year-over-year.

• Net interest income fell to NOK 1,220 million, down NOK 101 million from Q1 2025, and net commission and other income rose to NOK 685 million.

• Loan losses increased to NOK 100 million, with the loss ratio rising to 0.15% of total lending.

• Cost/income ratio (Group) rose to 48% from 44% year-over-year.

• Profit per equity certificate (ECC): NOK 3.66.

Outlook and guidance

• Financial targets include ROE above 13%, cost/income ratio below 40% for the parent bank, and CET1 ratio at 15.9%.

• Board expects stronger financial results for the remainder of 2026, supported by robust underlying operations.

• Less than half of departing employees will be replaced in 2026, aiming for lower cost growth.

• Continued focus on technology, AI, and sustainable community development as part of the 2026-2028 strategy.

• Macroeconomic uncertainty and expectations of higher interest rates may cause short-term earnings volatility.