SPAREBANK 1 HELGELAND (HELG) investor relations material

Executive summary

• Pre-tax profit for H1 2026 was NOK 331 million, down NOK 30 million year-over-year, mainly due to lower net interest income and higher loan loss provisions.

• Q2 2026 pre-tax profit was NOK 171 million, up NOK 11 million from Q1, driven by higher commission income and lower loan losses.

• Annualized return on equity (ROE) was 10.3% for H1 2026, below the long-term target of 12%.

• The bank maintains a strong market position in the Helgeland region, focusing on sustainable growth and community engagement.

Financial highlights

• Net interest income in Q2 2026 was NOK 206 million (1.98% of avg. assets), down NOK 2 million sequentially; year-to-date NOK 414 million, down NOK 57 million year-over-year.

• Net commission and other income rose to NOK 49 million in Q2, up NOK 5 million from Q1; year-to-date NOK 93 million, up NOK 3 million year-over-year.

• Loan loss provisions were NOK 17 million in Q2 2026, down from NOK 32 million in Q1; year-to-date NOK 49 million, up NOK 18 million year-over-year.

• Cost/income ratio for Q2 was 36.9%, slightly up from 36.0% in Q1; year-to-date 36.5%, well below the target of 40%.

• Net impaired and defaulted loans at quarter-end were NOK 940 million, down NOK 23 million from Q1.

Outlook and guidance

• The market outlook remains challenging due to global uncertainty, persistent cost pressures, and higher-than-expected interest rates.

• Expectation of increased business activity and credit growth in line with the Helgeland market.

• Continued price pressure and competition expected to negatively impact net interest income, but potential rate hikes could offset this.

• Cost discipline to remain strong, with costs expected to stay below 40% of income.

• Loan losses for 2026 anticipated to decline compared to previous years, with targeted efforts to reverse negative trends in corporate lending.