SKUE SPAREBANK (SKUE) investor relations material

Executive summary

• Achieved solid organic growth in both personal, retail, and business markets, with all merger costs from the Tinn Sparebank merger now fully expensed and results impacted by increased loan losses compared to last year.

• Result before tax for H1 2026 was NOK 219.3 million, down 0.3% year-over-year, mainly due to merger and increased loan loss costs.

• Net profit after tax for H1 2026 was NOK 173.9 million, nearly unchanged from NOK 174.8 million last year, with a return on equity (excluding hybrid capital) of 9%.

• Total comprehensive income was NOK 134.2 million, down NOK 6.6 million from last year.

Financial highlights

• Net interest income rose 14.1% year-over-year to NOK 308.4 million, with a net interest margin of 2.24%.

• Net commission income increased 21.7% year-over-year to NOK 58.7 million.

• Customer deposits grew 25.9% year-over-year to NOK 19.2 billion.

• Dividend income reached NOK 51.4 million, up from NOK 41.6 million.

• Operating expenses increased by NOK 47.7 million to NOK 182.2 million, mainly due to merger costs.

Outlook and guidance

• Focus remains on capital optimization, leveraging merger synergies, and maintaining high payout ratios (75-100% of annual profit as dividends and gifts).

• All merger costs from the Tinn Sparebank integration are now recognized; synergy effects are being realized as planned.

• Norges Bank kept the policy rate at 4.25% but signals possible hikes; inflation expected to gradually fall to 2% by 2029.

• Weak housing construction and high costs expected to persist, with housing investments to recover from 2027.

• Continued organic growth is expected, supported by strong market positions in key regions.