Slides
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Quarterly presentation 2025 Q3
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Financial targets Cost to income < 40% Dividend share > 50% CET 1 Capital ratio > 17,53% Long-term target ROE Customer growth in South of Norway Growth in other income Joint effort in the SpareBank 1 alliance Diversified portfolio > 14% Cost- and capital effective Operational synergies > NOK 450 million
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Dividend policy The group’s dividend policy has been to distribute around 50% of the profit for the year New dividend policy The group’s dividend policy is to distribute above 50% in cash dividend of the profit for the year Established a share buyback program as a supplement to cash dividends Well positioned for strong capital distribution
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SpareBank 1 Sør-Norge ✓ Legal merger 1 October 2024 ✓ Technical merger in September ✓ 335,000 customers migrated EiendomsMegler 1 Sør-Norge ✓ Legal merger 1 October 2025 ✓ Technical merger in December SpareBank 1 Sør-Norge • Realization of synergies • Harmonization of products and work processes • Increase efficiency and competitiveness ForretningsPartner Sør-Norge ✓ Legal merger 1 April 2025 ✓ Technical merger in May 1 October 2024 1 April 2025 1 October 2025 Next step → Successful integration
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5 SpareBank 1 Sør-Norge’s business survey Unemployment rate (Percent) g r og s s o r us ru s o u r o • Expects growth, but reduced investments • Corporates expect growth and more employees • Unemployment remains low • Trade policies and global tensions linked to Trump continue to create uncertainty Businesses expects increased growth
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6 • High optimism among oil companies over the next 12 months • Most oil companies expect to hire • Investments on the Norwegian continental shelf remain at a high level • Companies are better prepared than they were during the 2014 crisis Source: SpareBank 1 Sør-Norge Business Survey u r u r o o r u r u o r u Expectations among companies with higher vs lower oil-related revenue Main index: Share of positive companies in percent Expectations among oil companies
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7 SpareBank 1 Sør-Norge Lending volume in NOK billion % CAGR *Pro forma
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Synergy estimate raised after solid quarter 37.0% Cost to income ratio 18.5% CET 1 capital ratio 13.0% 14.5% excl. one-off effects* Result 30 September 2025 13.1% 14.7% excl. one-off effects** MNOK 6,356 Pre-tax profit 8 4.4% 12 months lending growth *Adjusted for merger costs (MNOK 78) and goodwill from merger (3.6 NOK billion) **Adjusted for cost related to verdict in legal case against Tietoevry Norway AS (MNOK 74), merger costs (YTD MNOK 168) and goodwill from merger (3.6 NOK billion) **12 month deposit growth including deposits in treasury is 9.7% Return on equity after tax Retail market 6.1% Corporate market -2.3% SME and Agriculture 9.1% 10.9%** 12 months deposit growth Retail market 10.4% Corporate market 14.6% SME and Agriculture 5.9% Result 3. quarter 2025 MNOK 115 Impairments on lending and financial commitments 0.12% of gross lending Return on equity after tax
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Earnings per share (NOK) Cost to income ratio CET 1 capital ratio 9 Key figures – quarterly development Return on equity Target: > 50% dividend shareTarget: > 14.0% Target: > 17.53% Target: < 40% *CET 1 capital ratio SpareBank 1 SR-Bank ASA. * Pro forma
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10 Good underlying operations Group Income statement Change from last quarter (MNOK) Change from Q3 2024 (MNOK) *Pro forma
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11 Group Lending volume Margins in customer- segments Deposit volume Net interest margin *Pro forma Definition margins: Average customer rate measured against money market rates. The figures include loans transferred to credit institutions and commission recevied.
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12 Retail market Lending volume** MarginsDeposit volume** **Including loans and deposits to employees. Definition margins: Average customer rate measured against money market rates. The figures include loans transferred to credit institutions and commission recevied. *Pro forma
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v 13 Corporate market **12 months lending growth in Corporate market excluding currency effect is -1.8%. Lending volume Deposit volume Margins *Pro forma Definition margins: Average customer rate measured against money market rates. The figures include loans transferred to credit institutions and commission recevied.
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14 SME and Agriculture Lending volume Deposit volume Margins *Pro forma Definition margins: Average customer rate measured against money market rates. The figures include loans transferred to credit institutions and commission recevied.
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• Gross loans increased to NOK 415 billion from NOK 397 billion year over year • 12 months lending growth is 4.4% • Low offshore, oil and gas exposure • Commercial real estate – low concentration risk and good credit quality 15 Well-diversified lending portfolio Loans before impairments, nominal amounts. Industry distribution based on standard division from Statistics Norway (SSB). *Pro forma p p
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74 16 Net commission and other income 74 Change from previous quarter (MNOK) (MNOK) Change from Q3 2024 *Pro forma
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74 17 Net income on financial investments 74 Change from previous quarter When a basisswap is defined as a hedging instrument, changes in “basis spread” is recognized through other comprehensive income. (MNOK) (MNOK) Change from Q3 2024 *Pro forma
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18 Income from ownership interests Ownership interests FORVALTNING FACTORING FORSIKRING *Pro forma
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19 Operating expenses Operating expenses r p s s p s s rso p s s p r g p s s Change from previous quarter (parent bank) r p s s p s s rso p s s p r g p s s (MNOK) (MNOK) Change from Q3 2024 (parent bank) *Pro forma
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Synergies 20 Capital synergies Capital synergies from the merger are approximately NOK 1.7 billion. Approval of IRB for previous portfolios from SpareBank 1 Sørøst-Norge amounted to approximately NOK 0,9 billion in the third quarter. Synergies The Group is on track in realisation of funding, operational and personnel synergies. Total synergies are updated and estimated at NOK 450 million annually by 2027. o u g s rg s rso s rg s p r o s rg s u s rg s o s rg s o s por r p o s por r or rs Personnel synergies *Excl. Temporary summer employees
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Successful technical merger– a major milestone 21 • Successful technical merger completed in mid-September • 335,000 customers migrated to a shared banking system • The bank is now positioned for the future • A unified platform • Improved scalability • Increased efficiency 2023 – 2024* 2025 Total Total merger cost (MNOK) *Pro forma
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22 Loans and financial commitments Change in gross loans and financial commitments Impairments on loans and financial commitments Changes in gross loans and financial commitments defined as Stage 3 oss pro s o s s s r o gross o s g o s o s g *Pro forma
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v 23 Capital adequacy Solid capital ratio • The CET 1 capital ratio is 18.51% as of 30 September 2025 • The minimum requirement for the CET 1 capital ratio is 17.53% as of 30 September 2025, including a temporary Pillar 2 requirement of 0.28% and a Pillar 2 guidance requirement of 1.25% • The leverage ratio is 7.44% as of 30 September 2025, well above the minimum requirement at 3.0% • In connection with this r’s SREP process, the Norwegian ’s preliminary assessment is that the Pillar 2 Premium in the CET 1 capital will be reduced from 1.35 to 1.13 percent and the expectation for the Pillar 2 Guidance will be changed from 1.25 to 1.00 percent • Based on expected effects of regulatory changes, SpareBank 1 Sør-Norge ASA is well positioned for profitable growth and strong capital distribution v p r os p r u r u r r gu or u r u r s p o s r o u r s r s u r s por u r ou r u r r r u r u Capital ratios Tier 2 2.71% CET 1 18.51% Tier 1 1.97%
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24 Solid liquidity • LCR 148% • NSFR 133% • Average duration of funding is 3.3 years • NOK 24.5 billion net refinancing need over the next 12 months • Deposit to loan incl. transfers to credit institutions ratio 53.9% • MREL-requirement 39.2%, MREL-subordination requirement 31.3% • As of 30 September 2025, SpareBank 1 Sør-Norge has issued NOK 21.8 billion in senior non-preferred Key figures o r o s u g Nok billion o r g upr s g s o r o s u p s Bonds and certificates • The average duration of the portfolio is 2 years • All fixed interest exposure is hedged to floating rate Annual funding maturity
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25 • Strong position in Southern Norway with growth opportunities • Good prospects for the group • Solid underlying credit quality • Uncertainty related to trade policy and geopolitical tension Outlook
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APPENDIX 1) Macro 2) Loan portfolio 3) Risk 4) SB1NO 26
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Unemployment rate CET 1 capital 27 Macro in Southern Norway SpareBank 1 Sør-Norges’s business survey Main index of 55 percent as of the 3 quarter of 2025 Number of bankruptcies p p p g r rg r s s s o org og s g r s o r us ru s o g r r g o rg r s s s o or Index change 12 month (%) Prices by city per square meter (EUR) House price development Norwegian house prices have increased by 5.5 % the last 12 months g r og s s o r us ru s o u r o Sources: Eiendom Norge, Eiendomsverdi, NAV, Brønnøysundregisteret, SB1 Sør-Norge Business survey
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APPENDIX 1) Macro 2) Loan portfolio 3) Risk 4) SB1NO 28
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Market – Commercial real estate Office vacancy Prime yield Rental prices (TNOK per sq.m) Transaction volume (NOK billion) 29 Source: Entra, WPS, og EM1 SR-Eiendom AS
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30 Lending to commercial real estate Commercial real estate for lease Well differentiated across regions 91% of volume has a PD under 2.5%Low concentration risk Commercial real estate portfolio 11.5% of total lending volum • Lending volume for commercial real estate for lease is NOK 44 billion, 10.7% of the ’s total lending volume • The portfolio is characterized by lending to commercial properties for lease with long-term conctracts and financially solid tenants. NOK Bill Commercial real estate for lease Commercial real estate for sale NOK Bill (NOK billion)
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APPENDIX 1) Macro 2) Loan portfolio 3) Risk 4) SB1NO 31
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32 Loan to value ratio and RWA on home mortgage loans • The proforma figures for SpareBank 1 Sør-Norge show that 91.9% of the exposure is within 85% of the assessed value of collateral. • RWA on home mortgages reflects a solid portfolio with a moderate loan-to-value ratio and low potential loss. • Risk weights on home mortgage loans are subject to a regulatory floor of 25%. Loan to value ratio on home mortgage loans Risk weight home mortgages In a total-distributed loan to value ratio, the entire loan is allocated to one and the same interval. Home mortgages as defined in the Norwegian IRB framework; the value of the residential property must be at least 30% of a loan’s security. Historical figures before 31.12.2024 are pro forma 18,5 % 18,1 % 18,5 % 18,7 %18,5 % 18,1 % 18,5 % 18,7 % ou r gu or oor
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Loan portfolio distributed by risk class Loan portfolio distributed by size of loan 33 Profile of the loan portfolio • SpareBank 1 Sør-Norge has a solid loan portfolio. • The loan portfolio consists mainly of small and medium- sized loans. Probability of default (PD) through a full cycle of loss. Probability of Default (PD) %
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Corporate SME & Agriculture 34 Risk profile • The quality of the retail market portfolio is considered to be very good and has low potential losses. • The low risk profile is achieved through prudent costumer selection and requirements for moderate LTV. Most of the portfolio is secured against a mortgage on real estate, and lending is overall moderate compared to asset value. Probability of default (PD) through a full cycle of loss. - Portfolio distributed by risk class Retail • The quality of the SME and Agriculture market portfolio is considered to be good. • There is a clearly defined framework that sets limits on what is funded and conditions for particular funding purposes. This ensures a robust portfolio. • The quality of the corporate market portfolio is good. • There is a clearly defined framework that sets limits on what is funded and conditions for particular funding purposes. This ensures a robust portfolio. 13,8 % 14,4 % 14,8 % 44.7% 14.1% 43.1% 15.0% 14.0% 46.5% 16.5% 52.9% 14.6% 54.9% 57.5% 14.0%14.6% 14.1% 15.2%
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35 Impairments on loans and financial commitments Impairments on loans and financial commitments in the income statement Impairments on loans and financial commitments in the balance sheet Impairments on loans and financial commitments in the income statement (MNOK) orpor r gr u ur r *Pro forma
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APPENDIX 1) Macro 2) Loan portfolio 3) Risk 4) SB1NO 36
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Sustainable financing 37 Sustainable lending constitutes 18.3% of total lending volume Target: Sustainable lending constitutes 25% of the group’s total lending volume by the end of 2030* Target Total lending 394 bill NOK SpareBank 1 Sør-Norge among top 9 % of banks globally (MSCI ACWI Index constituents, Banks, n=203) MSCI has maintained SpareBank 1 Sør- org ’s AAA ESG rating *Sustainable lending according to the internal sustainable product framework Retail market • Green residential buildings • Green car loans Corporate market • Lending to the corporate market which qualifies as sustainable according to the internal sustainable product framework • Sustainability-linked lending
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38 SpareBank 1 Sør-Norge ASA . Fully owned companies Partly owned companies EiendomsMegler 1 Sør-Norge Real estate agency SR-Boligkreditt Covered Bond Funding FinStart Nordic Investmentportfolio FinTec BN Bank 42.5% Kreditt- banken ASA 23.3% SpareBank 1 Betaling* 26.7% SB1 Markets 28.1% SpareBank 1 Forvaltning 42.0% SpareBank 1 Gruppen 19.5% SpareBank 1 Sør-Norge ForretningsPartner Accounting and advisory EiendomsMegler 1 Sørøst-Norge Real estate agency EiendomsMegler 1 Telemark Real estate agency *Owns 25 % in Vipps AS
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39 Balance sheet *Pro forma
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• International ownership is 16.8% per 3. quarter 2025 • Total market value at 3. quarter 2025 is NOK 66,8 billion 40 SB1NO Development in Price/Book Relative share price development Trading volume development 0,6 0,7 0,8 0,9 1,0 1,1 1,2 1,3 1,4 1,5 100 110 120 130 140 150 160 170 180 190 200 Sep. 24 Nov. 24 Jan. 25 Mar. 25 May. 25 Jul. 25 Sep. 25 p/B NOK Price P/B 40 60 80 100 120 140 160 180 200 Sep. 24 Nov. 24 Jan. 25 Mar. 25 May. 25 Jul. 25 Sep. 25 Index 100 = sep 30th 2024 OSEBX SB1NO 0,0 0,5 1,0 1,5 2,0 2,5 3,0 3,5 4,0 0,0 0,2 0,4 0,6 0,8 1,0 1,2 Sep. 20 Mar. 21 Sep. 21 Mar. 22 Sep. 22 Mar. 23 Sep. 23 Mar. 24 Sep. 24 Mar. 25 Sep. 25 Millions Millions Volume (# shares) (r.s.) Volume (20 days moving average)(l.s.)
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• Number of shares issued 375.46 million • Trading volume in Q3 2025: 2.5% (3.5%) 41 SB1NO Figures in parentheses as at 30 September 2024.
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• Ownership interests: • International: 16.8% (22.7%) • 10 largest: 54.9% (50.5%) • 20 largest: 63.0% (59.5%) • Number of shareholders: 22.791 (19.504) • Employees owning 1.5% (1.8%) as at 30 September 2025 42 20 largest shareholders as at 30 September 2025 Figures in parentheses as at 30 September 2024.
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Disclaimer This presentation contains forward looking statements that reflect g ’s urr s r sp o r u ur s potential financial performance. Although SpareBank 1 Sør-Norge believes that the expectations reflected in such forward looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ materially from those set out in the forward looking statements as a result of various factors. Important factors that may cause such a difference for SpareBank 1 Sør- Norge include, but are not limited to: (i) the macroeconomic development, (ii) change in the competitive climate, (iii) change in the regulatory environment and other government actions and (iv) change in interest rate and foreign exchange rate levels. This presentation does not imply that SpareBank 1 Sør-Norge has undertaken to revise these forward looking statements, beyond what is required by applicable law or applicable stock exchange regulations if and when circumstances arise that will lead to changes compared to the date when these statements were provided. 43
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Contact Details Management Inge Reinertsen CEO +47 909 95 033 inge.reinertsen@sb1sornorge.no Eirik Børve Monsen CFO +47 916 39 831 eirik.monsen@sb1sornorge.no Morten Forgaard Investor Relations +47 916 21 425 morten.forgaard@sb1sornorge.no Christen Tranes Gate 35 Postboks 250 4068 Stavanger Tel: +47 915 02002 www.sb1sornorge.no Investor Relations