SPAREBANK 1 ØSTLANDET (SPOL) investor relations material

Executive summary

• Return on equity reached 13.3% in 2Q26, above the 13% target but down from 14.9% last year, driven by strong commission income, contributions from jointly owned companies, and effective cost control, despite a decline in net interest income and higher loan loss provisions.

• Net profit after tax was NOK 853 million, down from NOK 917 million in Q2 2025 but up from NOK 800 million in Q1 2026.

• The technical merger with Totens Sparebank was completed, resulting in one-off higher costs for the quarter, with integration successful and within cost estimates.

• Loan loss provisions increased to NOK 77 million, mainly due to net write-offs and a single large exposure in SB1 Finans Østlandet.

• Strong customer satisfaction scores in both retail and corporate markets, exceeding industry benchmarks.

Financial highlights

• Net interest income, including commissions from covered bond companies, declined by 4.4% year-over-year to NOK 1,096 million, reflecting margin pressure.

• Commission income grew by 8.3% year-over-year, with strong performance in mutual funds, insurance, credit cards, and real estate brokerage.

• Net profit from financial assets and liabilities was NOK 327.3 million in 2Q26, up from NOK 247.8 million in 2Q25.

• Operating expenses totaled NOK 783.4 million, with merger costs of NOK 55.9 million.

• Earnings per ECC were NOK 8.46, and book equity per ECC was NOK 133.97.

Outlook and guidance

• Management expects continued competitive pressure on margins but anticipates further growth in commission income and volume in both retail and corporate markets.

• The macroeconomic backdrop is gradually improving, with moderate increases in unemployment and bankruptcies, and high activity in the housing market, though the construction sector remains weak.

• Long-term profitability target remains a return on equity of at least 13%, with a cost-to-income ratio target below 40% (excluding merger costs); Q2 2026 achieved 38%.

• Plans to reduce FTEs by 70 between end-2025 and 2027 to maintain cost discipline.

• Dividend payout ratio ambition is at least 50%; for 2025, payout was 70%.