JÆREN SPAREBANK (JAREN) investor relations material

Executive summary

• Achieved strong growth in core markets, with a 12.0% year-over-year increase in total lending including EBK volume and a 10.1% rise in deposits over the same period.

• Maintained stable net interest income and increased net commissions, mainly from growth and higher margins in the EBK loan portfolio.

• Defaults and loan losses remain low, while operating costs increased, primarily due to higher personnel expenses.

• Cost-to-income ratio improved to 37.6% year-to-date, reflecting continued cost discipline.

• Return on equity reached 12.4% year-to-date, exceeding the strategic minimum target.

Financial highlights

• Net interest income was MNOK 60.0 in Q3 and MNOK 240.8 year-to-date, with a margin of 2.10% year-to-date.

• Net commission income increased, with EBK commissions at MNOK 12.2 in Q3, up from MNOK 9.3 in Q3 last year; YTD net commission income was NOK 86.5 million.

• Net profit after tax for Q3 was MNOK 60.0, and MNOK 275.1 for the last twelve months.

• Operating expenses YTD: NOK 166.0 million, up 8.3% year-over-year.

• Net income from financial investments YTD: NOK 46.2 million.

Outlook and guidance

• Expectation of a stable interest rate environment going forward, with Norges Bank's policy rate anticipated to remain steady until summer 2026.

• Margin on EBK loans and commission income expected to remain stable.

• Continued focus on cost efficiency, with further IT savings anticipated from the new core banking solution.

• Strategic targets for 2025–2027 include minimum 11% ROE, maximum 40% cost-to-income, and minimum 16% CET1 ratio.

• Uncertainties remain due to geopolitical instability, high price levels, weak NOK, and elevated interest rates, though rates are now declining.