SPAREBANK 1 ØSTLANDET (SPOL) investor relations material

Executive summary

• Q3 profit after tax was NOK 756 million, down from NOK 876 million YoY and NOK 853 million in Q2; ROE was 11.2%, versus 13.5% and 13.3%, respectively.

• Weaker returns from financial assets and liabilities weighed on profit; higher net interest income and lower operating expenses QoQ partly offset the decline.

• Lending growth accelerated in the corporate market while Greater Oslo retail growth remained strong; CET1 was 17.9%.

Financial highlights

• Total income was NOK 1,773 million, down from NOK 1,953 million YoY; operating profit before loan losses was NOK 1,048 million versus NOK 1,227 million.

• Net interest income was NOK 1,156 million, up from NOK 1,096 million QoQ but below NOK 1,193 million YoY; net interest income including covered bond commissions rose 4.5% YoY, and reported NIM was 2.11%.

• Commission and other operating income excluding covered bond companies was NOK 426.7 million, versus NOK 390.1 million YoY; net commissions and other operating income were NOK 481 million.

• Net income from financial assets and liabilities was NOK 135.2 million, versus NOK 327.3 million QoQ and NOK 251.8 million YoY; loan impairment was NOK 91.7 million, versus NOK 76.7 million QoQ.

• Operating expenses were NOK 725.1 million, versus NOK 783.4 million QoQ and NOK 726.5 million YoY; cost/income ratio was 40.8% excluding merger costs and 40.9% reported.

Outlook and guidance

• Long-term targets include ROE of at least 13% and cost/income below 40%, excluding merger costs; YTD results were 12.2% and 42.2%, respectively.

• Costs are targeted not to exceed 2025 levels in 2027, excluding merger expenses; planned workforce reduction is 70 FTEs from year-end 2025 to 2027.

• Severance programme personnel-cost effects are expected during 2027; the programme is expected to reduce parent-bank staffing by ~40 FTEs in Q4 2026.

• Long-term dividend ambition is at least 50% of annual after-tax profit; capital target is regulatory requirements plus a 1.0 percentage-point management buffer.

• Credit demand outlook is moderate amid weak construction activity and elevated rates; longer-term growth prospects are supported by market position, customer satisfaction and digital investment.