SPAREBANKEN NORGE (SBNOR) Investor Presentation summary

Strategic rationale and market context

• Sparebanken Sør and Sparebanken Vest are merging to form Sparebanken Norge, aiming to become Norway's largest savings bank and the first with a nationwide presence.

• The merger responds to industry trends of consolidation, regulatory demands, and the need for digital transformation.

• The combined entity will have 773,000 customers, 1,554 employees, and NOK 435 billion in gross loans as of Q3 2024.

• The new bank will operate 68 non-overlapping branches, enhancing local presence while scaling nationally.

• The merger received unanimous approval from both banks' general assemblies and regulatory clearance, with legal completion targeted for May 2, 2025.

Financial and operational highlights

• Estimated annual cost synergies of NOK 350–400 million from 2027–2028 and net capital synergies of NOK 2 billion, with additional Basel IV effects.

• Transaction and integration costs are projected at NOK 250–300 million.

• Financial targets include a payout ratio of about 50%, CET1 ratio above 16.05%, and return on equity above 13%.

• The bank aims to remain among the top two Norwegian savings banks for return on equity over time.

• The merged bank is committed to high customer satisfaction, with both legacy banks leading in customer and business client satisfaction.

Growth strategy and national ambitions

• Sparebanken Norge will pursue both structural and organic growth to establish a presence in major Norwegian cities within 5–10 years.

• The first step is establishing offices in Oslo and Viken, with experienced leadership recruited from Handelsbanken.

• The merger is seen as a strategic move to move beyond regional constraints and enable further expansion.

• Technology and digital solutions are prioritized to support scalable national operations, leveraging a shared platform with Bulder.

• Bulder, a digital banking brand, has surpassed NOK 61 billion in mortgage volume and serves over 109,000 customers.