SPAREBANKEN ØST (SPOG) investor relations material

Executive summary

• Q3 net income was NOK 84.6m, down from NOK 109.5m YoY, as competition, margin pressure and higher funding costs weighed on net interest income.

• Credit risk remained low and capital solid; management expected no major portfolio losses despite economic uncertainty.

Financial highlights

• Q3 net interest income was NOK 192.1m, down from NOK 220.6m YoY but up NOK 7.0m QoQ; YTD was NOK 573.3m vs NOK 655.7m.

• Q3 net other operating income was NOK 15.6m vs NOK 22.0m YoY; YTD was NOK 85.5m vs NOK 157.0m, including an NOK 80.1m prior-year gain on Eksportfinans shares.

• Q3 operating costs were NOK 95.9m and 46.15% of income; YTD costs were NOK 280.0m vs NOK 276.3m, amid wage, price and IT cost increases.

• Q3 profit before tax was NOK 106.8m and tax expense NOK 22.2m; YTD profit before tax was NOK 365.3m and net income NOK 290.1m.

Outlook and guidance

• Loan and deposit rate adjustments following Norges Bank’s September increase to 4.50% are expected to affect results from December.

• Lending margins are expected to remain under pressure; business lending growth will be selective, prioritizing property-secured loans and risk-aligned returns.

• Low LTVs, good repayment capacity and a predominantly residential loan portfolio support the expectation of no major credit losses.

• Cost control remains important as inflation, wage growth and IT expenses weigh on costs.