SPAREBANK 1 ØSTLANDET (SPOL) Company presentation summary

Strategic positioning and market overview

• Operates as Norway's fourth largest savings bank, focused on Eastern Norway with a strong presence in the Inland and capital regions.

• Maintains a diversified income stream through core banking, subsidiaries, and alliances, including real estate, insurance, and asset management.

• Holds a leading position in customer satisfaction among large banks and benefits from a strong relationship with trade unions, driving retail loan growth.

• Market area covers nearly half of Norway’s population, with above-average population growth expected.

• Strategic vision centers on developing Eastern Norway and building robust communities through partnerships and social initiatives.

Financial performance and targets

• Achieved a return on equity of 13.3% in Q4 2025, meeting revised profitability targets of over 13%.

• Maintains high capital adequacy with a CET1 ratio of 17.6% and a management buffer above regulatory requirements.

• Dividend share exceeds 50%, with a proposed customer dividend of NOK 582 million for 2025.

• Demonstrates a long history of solid returns and stable dividend payouts.

• Cost/income ratio remains a focus, with 2026 set as a year of consolidation to address elevated costs.

Asset quality and risk management

• Maintains a low-risk loan book, with over 70% of lending to retail customers and stable, low loan losses.

• Loan loss provisions in Q4 2025 were NOK 128 million, mainly related to the construction sector.

• Well-diversified loan portfolio by sector and geography, with low size concentration risk.

• Retail mortgage portfolio features low loan-to-value ratios, with 95% of exposures under 70% LTV.

• Commercial real estate portfolio is diversified, with 98% of tenants on CPI-indexed contracts and strong collateral positions.