SPAREBANKEN NORGE (SBNOR) Investor Presentation summary

Strategic merger overview

• Sparebanken Sør and Sparebanken Vest are merging to form Norway's largest savings bank, with combined gross lending of NOK 429 billion and 760,000 customers across 67 non-overlapping branches.

• The merger aims to enhance local presence with dual headquarters in Kristiansand and Bergen, strengthening regional expertise and service offerings.

• All employees will continue in the new entity, which aspires to be the most attractive employer in Norwegian finance.

• The new bank will be a key partner and driving force for Frendegruppen, providing strategic clarity and increased resources for product companies.

• The integration process is set to complete by the end of the first half of 2025, pending approvals from general assemblies and regulatory authorities.

Financial and operational highlights

• The merged bank targets a return on equity above 13%, a payout ratio of 50%, and a CET1 ratio above 16.05%.

• Estimated annual cost synergies are NOK 350–400 million, with net capital synergies of NOK 2 billion plus a Basel IV effect of NOK 2.1 billion.

• The equity certificate exchange ratio is set at 64.3% for Sparebanken Vest and 35.7% for Sparebanken Sør, with a pro forma equity certificate ratio of 40.44%.

• The merged bank will be among the best in Norway for equity returns, with a strong, liquid equity certificate and significant institutional and employee ownership.

• The bank will maintain a low-risk loan portfolio and a strong brand built on traditional savings bank values.

Value proposition for stakeholders

• Customers will benefit from increased competitiveness, innovative products, and the ability to support business growth.

• Employees gain access to larger, more dynamic competence environments and leadership development opportunities.

• The bank will provide strong local ownership, significant community contributions, and support for regional business development.

• Investors are offered leading returns on equity, cost synergies, capital efficiency, and attractive dividends.

• The new structure ensures robust governance, with a combined board and general assembly, and a clear succession plan for leadership roles.