JÆREN SPAREBANK (JAREN) investor relations material

Executive summary

• Achieved net profit of MNOK 111.1 in Q2 and MNOK 163.1 YTD, down from MNOK 124.5 and MNOK 180.8 in the prior year.

• Maintained strong market position in Jæren, with 10.7% PM loan growth year-over-year, outpacing local credit growth.

• Loan book quality remains high, with low levels of non-performing loans and minimal credit losses.

• Cost-to-income ratio increased to 40.1% YTD from 35.0% last year, reflecting higher operating expenses.

• Operating costs rose mainly due to higher personnel expenses linked to new branch expansion.

Financial highlights

• Net interest margin declined to 1.84% in Q2 (1.83% YTD), down from 2.13%/2.14% last year.

• Return on equity was 16.8% in Q2 and 12.2% YTD, compared to 19.6%/14.2% last year.

• Loan growth was 2.9% in Q2 and 11.1% over 12 months; deposit growth was 3.9% in Q2 and 7.8% over 12 months.

• Non-performing loans at 0.32% of gross loans including EBK, down from 0.45% a year ago.

• Operating expenses H1: NOK 116.4m (H1 2025: NOK 107.3m), up 8.5%.

Outlook and guidance

• Strategic targets for 2026–2028: minimum 11% ROE, maximum 40% cost-to-income, minimum 16% CET1 ratio, and >7% loan growth.

• Expectation of continued moderate increase in interest rates and stable margins from EBK.

• Continued uncertainty due to geopolitical instability and high price/rate levels; further rate increases expected in H2.

• Bank is well-positioned in terms of market, liquidity, and solidity, with a strong foundation for further local growth.

• Ambition to maintain higher growth than the market in the primary region.