SpareBank 1 Sør-Norge (SB1NO) investor relations material

Executive summary

• Pre-tax profit for Q1 2026 was NOK 2,005 million, with return on equity after tax of 11.8% (12.7% excluding merger goodwill).

• Lending and deposit growth continued, with lending up 1.3% in the quarter and deposits up 4% year-over-year.

• Operational efficiency improved through ongoing FTE reductions and realization of merger synergies.

• Maintained strong cost control, with cost to income ratio at 38.3%.

Financial highlights

• Net interest income for Q1 2026 was NOK 2,180 million, down from NOK 2,323 million in Q4 2025 and NOK 130 million year-over-year.

• Net commission and other income totaled NOK 799 million, with strong performance in real estate agency operations.

• Net income on financial investments was NOK 368 million, up NOK 49 million sequentially.

• Earnings per share for the quarter were NOK 4.1.

• Impairment losses on loans and financial commitments were NOK 59 million, with an impairment ratio of 0.06%.

Outlook and guidance

• The Norwegian economy is expected to grow moderately in 2026, with inflation above target and policy rates forecasted to rise to 4.25-4.5% by year-end.

• Long-term targets include ROE above 14%, CET1 capital ratio above 16.74%, cost to income below 35%, and operational synergies exceeding NOK 550 million by 2027.

• Dividend policy targets ~50% payout of annual profit, supplemented by a share buyback program.

• Uncertainty remains due to trade policy, geopolitical tensions, and macroeconomic developments.