SPAREBANK 1 ØSTLANDET (SPOL) Investor Presentation summary

Financial performance and profitability

• Achieved a return on equity of 20.4%, with strong underlying profitability and positive impact from the Fremtind/Eika merger.

• Net interest income increased by 0.6% quarter-over-quarter, supported by loan growth in both personal and corporate markets.

• Cost growth reached 11.9%, influenced by integration with Totens and investments, with ongoing efforts to realize efficiency gains.

• Credit losses were higher than normal at 106 MNOK, mainly due to challenges with a single customer.

• CET1 capital ratio stands at 16.9%, reflecting strong capital adequacy.

Strategic ambitions and market positioning

• Aims to be among the top three most attractive equity certificates, benchmarking price/book ratios against leading peers.

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

• Focused on customer-centric growth, cost efficiency, and robust balance sheet management to drive profitability.

• Pursues a comprehensive market strategy across Innlandet and the broader Østlandet region, leveraging 125 years of experience.

Operational initiatives and integration

• Implements strategic levers: process simplification, customer journey redesign, alliance-based organization, and modernization for efficiency.

• Integration with Totens Sparebank progressing well, with expected capital synergies of about 300 MNOK and integration costs of 32 MNOK to date.

• Anticipates further integration costs of 60 MNOK in Q4, with a portion capitalized as part of the acquisition accounting.

• Organization is being restructured for agility, digitalization, and effective collaboration within the alliance.