SPAREBANKEN ØST (SPOG) investor relations material

Executive summary

• ROE rose to 8.22% in Q1 2026, up from the previous quarter but below the long-term target; profit after tax was NOK 92.6 million, down from NOK 107.4 million year-over-year.

• Net interest income declined to NOK 196.1 million from NOK 219.9 million due to strong competition and margin pressure.

• Cost-to-income ratio increased to 46.4% from 39.8% year-over-year, driven by higher wage and IT costs.

• Loan growth remained flat in the quarter, with a 12-month decline of 1.7%.

• Capital adequacy and leverage ratios remain high, supporting growth and dividend capacity.

Financial highlights

• Net interest income for Q1 2026 was NOK 196.1 million, down from NOK 219.9 million in Q1 2025.

• Profit after tax: NOK 92.6 million (down from NOK 107.4 million year-over-year).

• Operating expenses increased to NOK 97 million, representing 38.8% of income.

• Net loan losses: NOK 2.8 million, representing 0.03% of net loans.

• Customer deposits: NOK 17.4 billion, up 3.1% in the quarter.

Outlook and guidance

• Loan growth is expected to align with national credit growth over time.

• High competition in the mortgage market is expected to pressure lending margins.

• Deposit margins remain high but are expected to come under pressure.

• Cost control remains a focus, but wage and IT cost increases are anticipated.

• Losses are expected to remain low, and the group is well positioned for macroeconomic uncertainty.