Sparebank 68 Grader Nord (SB68) investor relations material

Executive summary

• Ordinary profit after tax reached NOK 87.8 million, up from NOK 71.8 million year-over-year.

• Return on equity (annualized) increased to 10.7% from 9.2% year-over-year.

• Profit before tax was NOK 117.2 million, up from NOK 95.9 million year-over-year.

• Strong result driven by reversal of previous loan loss provisions and positive value changes on financial instruments.

Financial highlights

• Net interest and credit commission income was NOK 148.9 million, slightly down from NOK 149.3 million year-over-year.

• Net other operating income increased to NOK 35.9 million from NOK 23.5 million, mainly due to higher commission income and value changes on securities.

• Operating expenses rose to NOK 91.7 million from NOK 77.4 million, mainly due to costs related to the upcoming core banking system change.

• Net loan loss provisions resulted in income of NOK 24 million, compared to a loss of NOK 0.5 million last year.

• Cost/income ratio (excl. value changes) was 52.7%, up from 45.1% year-over-year.

Outlook and guidance

• The board expects the cost/income ratio to decrease through the year, but remain temporarily elevated due to the core banking system transition.

• The bank is well positioned for continued profitable growth in both retail and corporate markets, supported by strong liquidity and capital adequacy.

• The strategic shift to a new core banking provider is expected to enhance competitiveness and efficiency, despite short-term higher costs.