SPAREBANKEN NORGE (SBNOR) investor relations material

Executive summary

• Achieved all 2025 financial targets, including ROE of 15.5–15.9% and CET1 ratio of 17.5%, driven by strong growth, profitability, and successful mergers.

• Completed mergers with Sparebanken Sør and Oslofjord Sparebank, consolidating market position and expanding operations.

• Strong lending and deposit growth in both retail and corporate segments, with increased market share and nationwide expansion.

• Maintained a conservative lending portfolio, dominated by retail mortgages and diversified geographically.

• Successful integration and synergy realization from recent mergers, with significant cost and capital synergies.

Financial highlights

• Net interest income for 2025 reached NOK 9,400 million, with Q4 at NOK 2,800 million.

• Net commission income for 2025 was NOK 1,743 million, with robust growth from broker commissions, insurance, and asset management.

• Cost/income ratio for 2025 was 29.6–29.8% (excluding merger costs), reflecting strong cost control.

• Full-year pre-tax profit was NOK 8,110 million, up from NOK 5,641 million YoY.

• Dividend per equity certificate proposed at NOK 12.0 for 2025, with payout ratio between 73% and 81.7%.

Outlook and guidance

• Financial targets for 2026–2028 include ROE >13%, ROTE >15%, CET1 >15.9%, and cost/income <30%.

• Ambitious growth expectations: 6–8% annual loan growth in retail, 8–10% in corporate, and Bulder targeting NOK 86–100bn in mortgages by 2028.

• Integration and synergy targets: NOK 425 million in operating cost synergies and NOK 3.4 billion in capital synergies by 2027/2028.

• Ongoing technical integration and synergy realization expected to drive further efficiency.

• Integration costs expected to remain below NOK 380 million.