Sparebank 68 Grader Nord (SB68) investor relations material

Executive summary

• Net profit after tax for Q1 2026 was NOK 38.1 million, up from NOK 26.8 million in Q1 2025, with annualized return on equity at 9.5% versus 6.9% last year.

• Result before tax increased to NOK 51.1 million from NOK 35.8 million year-over-year, driven by higher net value changes on financial instruments, increased operating costs, and reduced loss provisions.

• Total comprehensive income reached NOK 39.0 million, up from NOK 27.4 million in Q1 2025.

Financial highlights

• Net interest and credit commission income was NOK 72.2 million (2.24% of average assets), slightly down from NOK 73.2 million (2.42%) year-over-year.

• Net other operating income rose to NOK 15.6 million from NOK 9.4 million, mainly due to higher commission income and positive value changes on securities.

• Operating expenses increased to NOK 46.9 million from NOK 43.4 million, mainly due to costs related to the upcoming core banking system change.

• Cost/income ratio (K/I) was 53.4%, up from 52.5% in Q1 2025.

• Net reversal of loss provisions amounted to NOK 10.1 million, compared to a loss of NOK 3.5 million last year.

Outlook and guidance

• The board expects the cost/income ratio to decrease over the year, though temporarily elevated due to the core banking system transition.

• The bank is considered financially solid and well-positioned for continued profitable growth in both retail and corporate markets.

• High interest rates and international uncertainty are expected to persist, impacting inflation and market volatility.