Sunndal Sparebank (SUNSB) investor relations material

Executive summary

• Net profit after tax for Q1 2025 was NOK 15.4 million, down from NOK 20.7 million in Q1 2024, mainly due to lower net interest income and higher costs.

• Return on equity after tax was 7.7% compared to 10.5% a year earlier.

• Cost/income ratio increased to 56.9% from 46.4% due to higher personnel and merger-related costs.

• Loan growth over 12 months was 2.0%, while deposit growth was negative at -1.8%.

• The merger with Romsdal Sparebank is progressing, aiming for legal completion by June 2, 2025.

Financial highlights

• Result before tax was NOK 20.5 million, down from NOK 27.6 million in Q1 2024.

• Net interest income fell by NOK 3 million to NOK 33.3 million, mainly due to lower lending margins and volume changes in the corporate segment.

• Net commission income remained stable; other operating income decreased by NOK 1.4 million.

• Operating expenses increased by NOK 2.6 million to NOK 25.6 million, mainly from wage adjustments and merger costs.

• Earnings per equity certificate (before OCI) was NOK 2.13, down from NOK 2.98.

Outlook and guidance

• Norges Bank is expected to lower the policy rate in H2 2025, with a year-end target of 4%.

• Cost levels are expected to remain temporarily high in 2025 due to the merger, with new long-term financial targets to be set for the combined bank.

• The merged bank will have a business capital of about NOK 19 billion, equity of NOK 1.9 billion, 104 employees, and 9 offices.