SpareBank 1 Sør-Norge (SB1NO) investor relations material

Executive summary

• Achieved strong financial results in 2025, maintaining high growth and profitability post-merger, with ongoing organizational streamlining and increased synergy ambitions.

• Completed significant mergers and organizational changes, reducing group management size by 50% and targeting a reduction of 150 FTEs by end of 2026.

• Launched a share buyback program and proposed a NOK 12 per share dividend, reflecting a 71% payout ratio.

• Maintained a well-diversified loan portfolio with low risk and high credit quality.

• Southern Norway remains economically strong, with low unemployment and positive business sentiment.

Financial highlights

• Full-year 2025 return on equity was 12.8%, or 14.1% excluding one-off merger and goodwill costs.

• Pre-tax profit for 2025 reached MNOK 8,349, up from MNOK 7,957 in 2024.

• Cost-income ratio for the year was 38%.

• CET1 capital ratio at 17.57%, 85 bps above regulatory requirements.

• Earnings per share increased to NOK 17.0.

Outlook and guidance

• Confident in achieving a 14% long-term return on equity target, with cost-to-income ratio target lowered from below 40% to below 35%.

• No explicit guidance on future dividend or buyback mix, but cash dividends prioritized.

• Well positioned for profitable growth regardless of central bank rate cuts, with a positive 2026 outlook.

• Sustainable lending target set at 25% of total lending by 2030.