SPAREBANK 1 ØSTLANDET (SPOL) Company presentation summary

Strategic positioning and market overview

• Operates as Norway's fourth largest savings bank, focused on Eastern Norway with a strong regional presence and over 40 branches.

• Maintains a diversified business model with subsidiaries in finance, real estate, and alliances within the SpareBank 1 group.

• Market area covers nearly half of Norway’s population, with above-average population growth expected.

• Recognized for strong ESG credentials, including top ratings from Sustainalytics and MSCI.

• Strategic vision centers on regional development and sustainable transition.

Financial performance and profitability

• Achieved a return on equity of 13.5% in Q3 2025, with strong net interest income and growing non-interest income.

• Net interest income rose by 2.2% quarter-on-quarter, driven by volume growth and improved margins.

• Cost/income ratio at 37.2%, with cost growth mainly from personnel expenses and merger-related costs.

• High impairment charges of NOK 121 million, mainly from exposures in the construction sector.

• Maintains a stable dividend policy, with a payout ratio above 50%.

Asset quality and risk management

• Loan portfolio is well-diversified across sectors and geographies, with 72% retail share and low concentration risk.

• Retail mortgages show 95% of exposures under 70% LTV, and arrears remain low.

• Commercial real estate loans are highly collateralized, with over 90% below 70% LTV.

• Loan loss provisions increased in Q3 2025, but overall asset quality remains strong.

• Moody’s rates the bank Aa3 with a stable outlook, citing strong capital and robust profitability.