SPAREBANK 1 ØSTFOLD AKERSHUS (SOAG) CMD 2024 summary

Financial performance and targets

• Achieved return on equity of 12.6% in H1 2024, exceeding the >10% target.

• Common equity tier 1 ratio at 17.7%, above the >16% target.

• Dividend payout set at up to 50% of parent bank profits.

• Pre-tax profit for H1 2024 reached 351 million NOK, up from 338 million NOK in H1 2023.

• Net interest margin remains strong and stable at 2.57% in Q2 2024.

Business development and market position

• Strong growth in the corporate market, with the bank gaining regional market share.

• Private market lending grew 2.8% in H1 2024, with 6.8% growth over the last 12 months.

• Corporate lending increased 17.4% in H1 2024, with 16.9% growth over the last 12 months.

• 75.7% of the loan portfolio is in the private market, with a diversified corporate segment.

• Subsidiary EiendomsMegler 1 is gaining market share despite a challenging real estate market.

Cost and risk management

• Cost/income ratio stable at around 42% in H1 2024.

• Loan losses remain low, with only 3 million NOK in losses in H1 2024.

• Portfolio quality is high, with 90% of loans in the lowest risk category.

• Provisions and loss ratios have remained at minimal levels over recent quarters.

• Ongoing dialogue with the Financial Supervisory Authority regarding new Pillar 2 requirements.