SPAREBANK 1 NORD-NORGE (NONG) investor relations material

Executive summary

• Delivered strong profitability in 2Q26 with ROE at 17.6% and year-to-date ROE at 16.1%, supported by robust retail lending growth, cost discipline, and increased contributions from associates and higher commission income, despite weaker net interest income due to higher funding costs.

• Maintained a solid capital position with CET1 ratio at 16.9% as of 30 June 2026, well above regulatory and internal targets.

• Cost-to-income ratio improved to 32.4% in 2Q26 and 33.8% year-to-date, reflecting ongoing efficiency measures and a reduction in full-time equivalents.

• Lending growth was robust, especially in the retail market, leading to increased market share.

Financial highlights

• Pre-tax profit for 1H26 was NOK 1,986 million, down from NOK 2,178 million in 1H25; result after tax was NOK 1,566 million, down from NOK 1,762 million.

• Net interest income for 1H26 was NOK 1,908 million, compared to NOK 1,963 million in 1H25; 2Q26 net interest income was NOK 970 million.

• Net fee, commission, and other operating income for 1H26 was NOK 823 million, up from NOK 749 million year-over-year.

• Operating expenses for 1H26 were NOK 1,035 million, slightly up from NOK 1,023 million in 1H25.

• Losses on loans and guarantees totaled NOK 39 million in 1H26, up from NOK 27 million in 1H25.

Outlook and guidance

• Lending growth targets for 2026: 6-9% in retail and 2-5% in corporate markets.

• Management expects continued strong competition to pressure net interest margins throughout 2026, though higher policy rates may support net interest income.

• Cost-to-income ratio target remains below 35%, with ongoing efficiency programs expected to reduce annual costs by NOK 40-50 million by 2027.

• CET1 ratio target set at least 0.75 percentage points above the regulatory requirement, currently at 15.56%.

• Northern Norway's economy is expected to outperform the rest of the country, supported by investments and strong regional industries.