SPAREBANKEN ØST (SPOG) investor relations material

Executive summary

• Return on equity (ROE) reached 9.82% in Q2 2026, up from the previous quarter but down from 18.34% last year, and close to the long-term target.

• Net profit for Q2 2026 was NOK 112.9 million, lower than Q2 2025 due to a one-off gain last year.

• Net interest income declined to NOK 185.1 million, impacted by competition and higher funding costs, but financial instruments contributed solidly.

• Cost reductions achieved despite inflation, but cost-to-income ratio increased to 35.52% from 25.64% year-over-year.

• Loan losses and non-performing loans remain at very low levels, with high capital adequacy and leverage ratios.

Financial highlights

• Net interest income for Q2 2026 was NOK 185.1 million (1.61% of avg. assets), down from NOK 215.2 million in Q2 2025 and NOK 240 million in Q2 2023.

• Net commission and other operating income totaled NOK 12 million; net financial income was NOK 24 million.

• Operating costs fell to NOK 82 million (25.6% of income), but cost-to-income ratio rose to 35.52%.

• Net profit after tax: NOK 112.9 million (Q2 2025: NOK 208.7 million).

• Loan losses remained low at NOK 2–5.7 million (0.02–0.06% of net loans).

Outlook and guidance

• Loan growth expected to align with national credit growth over time, with continued pressure on lending margins due to high competition.

• Norges Bank raised the policy rate to 4.25% in May 2026, with further adjustments expected to impact net interest income.

• Cost control remains strong, but inflation and rising IT costs are expected to impact future expenses.

• Loan losses are expected to remain low; the group is well-capitalized and positioned for growth and dividends.

• The bank maintains a selective and risk-aware lending strategy, especially in the corporate segment.