Voss Veksel- og Landmandsbank (VVL) investor relations material

Investment highlights

• Delivers robust returns with low risk, targeting ROE of 11.1% and CET1 ratio of 21.3% in 2025.

• Dividend payout of 18.75 NOK per share, with a payout ratio of 49.9% and direct yield of 4.6% at year-end price.

• Maintains strong funding and liquidity with deposit coverage at 82.3%, LCR at 291%, and NSFR at 137%.

• Demonstrates disciplined growth: loan growth of 10.5% and deposit growth of 8.7% in 2025.

• Price/book ratio at 1.13, with book value per share of 358.55 NOK and share price of 404 NOK at year-end 2025.

Market position and customer base

• Operates as a leading local bank in Voss and Hardanger, with a diversified business model including banking and real estate brokerage.

• Serves a core market of about 35,000 inhabitants, emphasizing proximity, accessibility, and high service.

• Main competitors in the region are Sparebanken Norge and Voss Sparebank.

• Achieves top customer satisfaction scores nationally among personal market clients.

• Staff engagement index of 88, outperforming both Eika group average and external benchmarks.

Financial performance and development

• Return on equity remains attractive compared to peers, with low loan losses and above-market loan growth.

• Net interest margin under pressure but offset by growth in commission income.

• Operating costs rise in 2025 due to planned staff increases and IT investments, not structural inefficiency.

• Pre-tax profit stable at 115.9 MNOK in 2025, with steady net interest income and rising commission income.

• Cost increase attributed to capacity building for future growth.