JÆREN SPAREBANK (JAREN) investor relations material

Executive summary

• Achieved strong lending growth of 11.2% year-over-year and deposit growth of 8.4%, with increased market share in core regions and leadership in personal and agricultural segments.

• Profit before tax for Q1 2026 was NOK 67.5 million, down from NOK 74.6 million last year, mainly due to lower net interest income and higher personnel costs.

• Maintained solid capital and liquidity positions, with low levels of problem loans and stable core operations.

• Return on equity after tax was 7.7% in Q1 2026, down from 8.7% in Q1 2025; long-term target is at least 11%.

• Defaults and loan losses remain low, with net write-downs of NOK 1.1 million.

Financial highlights

• Net interest income for Q1 2026 was NOK 95.5 million, down from NOK 101.5 million in Q1 2025, representing 1.83% of average total assets.

• Net commission income was NOK 27.8 million, slightly up from NOK 27.6 million year-over-year.

• Operating expenses rose to NOK 57.9 million from NOK 55.0 million, mainly due to increased personnel costs; cost/income ratio at 45.7% (up from 42.5%).

• Profit after tax was NOK 52.0 million, down from NOK 56.3 million last year.

• Lending growth was 2.5% in Q1 and 11.2% year-over-year; deposit growth was 0.9% in Q1 and 8.4% year-over-year.

Outlook and guidance

• Strategic targets for 2026–2028 include minimum 11% return on equity, maximum 40% cost/income ratio, minimum 7% lending growth, and minimum 16% core capital.

• Continued uncertainty due to geopolitical instability and high price/rate levels, but the bank is well-positioned in terms of market, liquidity, and solidity.

• Norges Bank policy rate held steady at 4.00% in Q1; some rate increase expected ahead.

• Ambition to maintain higher growth than market average in core regions and further develop market presence.