SPAREBANK 1 ØSTLANDET (SPOL) Company presentation summary

Strategic positioning and market overview

• Fourth largest savings bank in Norway, focused on Eastern Norway with 41 branches and 1,300 FTEs as of December 2024.

• Member of the SpareBank 1 Alliance, benefiting from economies of scale and a diversified product offering.

• Maintains a strong brand with high customer satisfaction and a clear focus on sustainability.

• Recognized for social responsibility, distributing significant customer dividends and foundation grants.

Financial performance and profitability

• Achieved a return on equity of 14.1% in Q1 2025, with solid income growth and moderate impairments.

• Net interest income increased year-over-year, supported by high retail activity and commission income growth over 14%.

• Cost growth moderated to 6.9% y/y in the parent bank, with group costs up 10.1% y/y due to higher real estate commissions.

• Loan loss provisions totaled NOK 51 million, mainly due to a known problem loan.

• Financial targets include profitability above 13% ROE and CET1 ratio above 16.1%.

Asset quality and risk management

• Maintains a well-diversified loan portfolio, with 72% retail share and low loan losses over time.

• Retail mortgage portfolio shows stable low LTVs, with 94.5% of exposures under 70% LTV.

• Corporate lending is geographically diversified, with low size concentration risk in the lending book.

• CRE portfolio is attractive and diversified, with 90.7% of exposures under 70% LTV.

• Impairments and arrears remain low, reflecting strong credit quality.