SPAREBANK 1 ØSTLANDET (SPOL) Investor presentation summary

Financial performance and profitability

• Achieved a return on equity of 20.4%, with strong contributions from both core banking and the Fremtind/Eika merger.

• Net interest income increased 0.6% quarter-on-quarter, supported by healthy loan growth in both retail and corporate segments.

• Commission income remained robust, driven by high activity in real estate, savings, and insurance.

• Cost growth reached 11.9%, influenced by inflation, investments, and integration with Totens.

• Higher than normal impairment charges of NOK 106 million, mainly due to challenges with a single customer.

Strategic initiatives and market positioning

• Profitability target raised to over 13%, with a dividend policy aiming for more than 50% payout.

• Focus on customer-centric growth, cost efficiency, and strong asset-liability management.

• Strategic tools include simplifying processes, redesigning customer journeys, alliance collaboration, and modernization.

• Market strategy targets all of Eastern Norway, maintaining leadership in the Inland and pursuing growth in the capital region.

Merger and integration

• Merger with Totens Sparebank progressing well, with integration of staff, offices, and products.

• Expected capital synergies of approximately NOK 300 million, with integration costs of NOK 32 million to date and an additional NOK 60 million anticipated.

• Merger strengthens position in the Inland region and provides a solid foundation for increased income.