SPAREBANKEN MØRE (MORG) investor relations material

Executive summary

• Q1 2026 saw stable operations with moderate growth in lending and deposits year-over-year, but profitability declined compared to Q1 2025 due to lower net interest income and higher loan losses.

• Profit before tax was NOK 275 million (1.03% of avg. assets), down from NOK 302 million (1.16%) in Q1 2025; profit after tax was NOK 211 million (0.79% of avg. assets), compared to NOK 232 million (0.89%) a year earlier.

• Return on equity was 9.9% (down from 11.2%), and cost/income ratio rose to 45.7% from 44.3%.

• The region remains robust, supported by export-oriented industries, but faces some labor market pressures.

Financial highlights

• Net interest income was NOK 469 million (down 3.3% year-over-year), with lower margins in both retail and corporate deposits.

• Profit after tax was NOK 211 million, a 9% decrease from Q1 2025.

• Other income increased by 2.4% year-over-year, mainly from asset management, insurance sales, and financial instruments.

• Operating expenses increased slightly to NOK 253 million, driven by higher personnel costs.

• Net lending to customers grew 3.3% year-over-year to NOK 91,701 million; deposits rose 2.7% to NOK 52,665 million.

Outlook and guidance

• Regional economic activity is stable but slightly weaker than in 2025, with uncertainty in global markets due to Middle East conflict and volatile commodity prices.

• Norges Bank signals two interest rate hikes in 2026, reversing earlier expectations of cuts.

• Export-oriented industries provide resilience, but labor shortages persist in some sectors.

• Commercial real estate faces rising interest rates and construction costs, with limited new supply.

• Fisheries expect weaker results due to resource constraints, partially offset by strong prices; aquaculture and shipbuilding show solid, stable outlooks with high demand and structural improvements.