SPAREBANK 1 ØSTLANDET (SPOL) investor relations material

Executive summary

• Return on equity was 12.4% in 1Q26, impacted by a NOK 80 million severance provision, and profit after tax was NOK 800 million, down from NOK 867 million year-over-year.

• Net interest income including commissions from covered bond companies declined 6.4% quarter-over-quarter to NOK 1,118 million, affected by margin pressure and fewer interest days.

• Fee and commission income grew 8.7% year-over-year, with net commission and other operating income at NOK 476 million, driven by high activity in payment services, mutual funds, insurance, credit cards, and real estate brokerage.

• Operating expenses rose 2.9% year-over-year to NOK 829 million, including NOK 80 million in severance provisions; cost efficiency initiatives are underway.

• The bank distributed NOK 1,725 million in dividends and NOK 582 million in customer dividends in April 2026.

Financial highlights

• Net interest income (incl. covered bond commissions) fell 6.4% quarter-over-quarter to NOK 1,220 million; net interest margin at 2.11%.

• Fee and commission income (excl. covered bond companies) reached NOK 382 million in 1Q26, up from NOK 351 million in 1Q25.

• Operating expenses totaled NOK 829 million, up from NOK 720 million in 1Q25, with NOK 80 million provision for severance.

• Loan loss provisions at NOK 41 million, with higher retail losses due to two individual exposures; impairment losses down from NOK 128 million in Q4 2025.

• CET1 capital ratio at 17.8% as of 1Q26.

Outlook and guidance

• 2026 is expected to be a transition year for cost efficiency, with full-year effects from 2027.

• Group cost level in 2027 targeted not to exceed 2025 levels, with a reduction of 70 FTEs planned.

• Profitability target remains above 13% ROE, cost/income below 40%, and dividend payout above 50%; payout ratio for 2025 set at 70%.

• The bank expects moderate credit demand due to high interest rates, inflation, and geopolitical uncertainty, but maintains strong long-term growth prospects.