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 regional presence and over 40 branches and 1,300 FTEs.

• Maintains a diversified business model with core banking, subsidiaries, and alliance partnerships, contributing to a stable income stream.

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

• Holds a strong ESG profile, rated AAA by MSCI and recognized as an ESG Industry Top Rated company by Sustainalytics.

• Strategic vision emphasizes regional development and social responsibility, with significant customer dividends and community contributions.

Financial performance and profitability

• Achieved a return on equity of 14.9% in Q2 2025, with strong contributions from all income lines and very low loan losses.

• Net interest income increased by 3.2% year-over-year, supported by a new income model in covered bond companies.

• Non-interest income saw robust growth, especially from insurance and real estate brokerage activities.

• Maintains high capital adequacy with a CET1 ratio of 18.3% and a leverage ratio of 7.2%.

• Cost/income ratio remains competitive, though cost growth is driven by IT, merger-related expenses, and business development initiatives.

Asset quality and risk management

• Loan portfolio is well-diversified across sectors and geographies, with 72% retail share and low concentration risk.

• Maintains low loan losses and impairments, with a long history of stable asset quality.

• Retail mortgages exhibit strong collateralization, with over 95% of exposures under 70% LTV.

• Commercial real estate loans are well-collateralized, with 91% of exposures under 70% LTV.

• Credit quality indicators remain solid in both retail and corporate segments, with low arrears and stable risk metrics.