SPAREBANKEN ØST (SPOG) investor relations material

Executive summary

• Annual profit after tax for 2025 is NOK 523 million, matching last year's record, with high return on equity and strong capital adequacy maintained.

• Dividend proposal for 2025 is NOK 6.90 per equity certificate, totaling NOK 143 million, with a record-high allocation of NOK 357.3 million to charitable purposes.

• Gain from sale of Eksportfinans shares contributed positively, generating a one-time gain of NOK 80.1 million.

• Slight reduction in lending volume and a modest increase in costs observed.

• Very low loan losses and defaults, with robust liquidity and funding structure.

Financial highlights

• Net interest income for 2025 was NOK 867.5 million, down from NOK 931.6 million in 2024, with Q4 2025 at NOK 211.8 million.

• Net commission and other operating income stable; financial income supported by gains from equity sales.

• Cost-to-income ratio at 36.0% for 2025, improved from 34.6% in 2024.

• Return on equity for 2025 at 11.8%, exceeding the long-term target of 10%.

• Net loans to customers decreased by 2.2% year-over-year to NOK 36.2 billion.

Outlook and guidance

• Lending growth expected to align with national credit growth over time, with loan growth in 2026 in line with market.

• High competition in mortgage market to pressure lending margins; deposit margins to remain high but may decrease with lower market rates.

• Cost control remains strong, but inflation and wage growth will impact future costs.

• Loan losses expected to remain low; bank is well positioned for macroeconomic uncertainty.

• Norwegian economy expected to see moderate growth, with stable employment and gradual reduction in inflation.