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 retail presence and over 40 branches.

• Maintains a leading position in customer satisfaction, ranking best among large banks in the 2025 EPSI survey.

• Benefits from a strong relationship with the LO trade union, driving significant retail loan growth and access to large customer groups.

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

• Part of the SpareBank 1 Alliance, providing access to a broad range of financial products and economies of scale.

Financial performance and targets

• Achieved a return on equity of 12.4% in Q1 2026, with solid volume growth in the retail market.

• Net interest income declined 6.4% quarter-on-quarter due to strong competition, but fee and commission income grew 8.7% year-on-year.

• Maintains high capital adequacy with a CET1 ratio of 17.8% and a long history of solid returns.

• Operating expenses rose 2.9% year-on-year, with cost efficiency initiatives underway and full effects expected from 2027.

• Financial targets for 2026 include ROE >13%, cost/income <40%, dividend payout >50%, and CET1 >15.9%.

Asset quality and risk management

• Loan losses remain low, with Q1 2026 provisions at NOK 41 million and low individual provisions.

• Loan book is well-diversified across sectors and geographies, with over 70% retail share and low concentration risk.

• Retail mortgages show strong collateralization, with 95% of exposures under 70% LTV.

• Commercial real estate portfolio is diversified, with 91% of exposures under 70% LTV and high indexation to CPI.

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