Slides
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Financial Results – Third Quarter 2026 1 PARETO BANK
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2 Highlights Financials Business Area Update & Outlook
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• Profit after tax NOK 27.7m (NOK 176.8m in Q3-25). • Return on equity after tax 1.2% (13.0%). • Total impairments and losses of NOK 195.8m (NOK 15.1m). Individual impairments NOK 130.2m (NOK 16.6m) mainly within residential property development. Write downs of NOK 134.3m. • Lending at the end of the quarter stood at NOK 17,934m (NOK 18,983m). Average lending was down 3.4% q/q. Highlights 3 THIRD QUARTER 2026 Speaker notes
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4 Highlights Financials Business Area Update & Outlook
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*) Return to shareholders after AT1 interest costs. **) Quarterly impairments over average net loans.5 Profit after tax (NOKm) CET1 ratio KEY FIGURES Return on Equity * Net interest income (NOKm) Loss ratio **Cost/Income ratio 176.8 119.7 76.7 36.9 27.7 Q3-25 Q4-25 Q1-26 Q2-26 Q3-26 21.3% 20.2% 19.8% 19.7% 21.0% Q3-25 Q4-25 Q1-26 Q2-26 Q3-26 304.4 310.6 299.4 288.0 285.2 Q3-25 Q4-25 Q1-26 Q2-26 Q3-26 0.08% 0.56% 0.82% 1.04% 1.05% Q3-25 Q4-25 Q1-26 Q2-26 Q3-26 13.0% 8.3% 5.0% 2.0% 1.2% Q3-25 Q4-25 Q1-26 Q2-26 Q3-26 19.4% 17.2% 18.1% 17.7% 18.2% Q3-25 Q4-25 Q1-26 Q2-26 Q3-26
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6 Q3-26 Q3-25 YTD-26 YTD-25 Net interest income 285.2 304.4 872.6 969.3 Net other operating income -6.2 1.2 15.6 11.8 Total net income 279.0 305.6 888.2 981.1 Total operating expenses 50.7 59.2 159.9 183.5 Operating profit before impairments and losses 228.3 246.4 728.3 797.6 Impairments and losses on loans and guarantees 195.8 15.1 552.7 69.3 Pre-tax operating profit 32.5 231.3 175.6 728.2 Tax expense 4.8 54.6 34.4 172.3 Interest hybrid capital 13.2 13.0 38.1 39.0 Profit to shareholders 14.5 163.7 103.1 516.9 Earnings per share (NOK) 0.19 2.13 1.34 6.73 Cost/income ratio (%) 18.2 % 19.4 % 18.0 % 18.7 % • Interest income down with lower lending volumes and activity driven fees. • Fair value losses higher than last year, with losses on both bond holdings and issued fixed rate debt. • Continued strong operational efficiency, with a cost/income ratio of 18.2% (19.4%). Third consecutive quarter with no bonus allocation. • Continued high level of impairments. P&L (NOKm) INCOME STATEMENT
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(NOKm) 7 CHANGE IN QUARTERLY NET INTEREST INCOME 288.0 285.2 - 1.2 1.7 1.0 - 5.0 - 6.6 2.5 12.9 4.7 3.2 Q2-26 Lending volume Deposit volume Market funding Surplus liquidity Fee income Lending rate Deposit rate Other Interest days Q3-26
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5.7% 5.3% 5.4 %5.6% 5.7% 5.5% -0.1% 0.0% 0.1% 0.4% 0.4% 4.4 % 4.7 % 4.9 % 4.8 % 4.8 % Q3-25 Q4-25 Q1-26 Q2-26 Q3-26 Lending margin NO Lending margin SE Deposit margin Net interest margin Lending and deposit margins Note: Lending and deposit margins relative to average 3M NIBOR and 3M STIBOR. Net interest margin is total net interest income on average assets.8 INTEREST MARGINS Ok.
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9 Stage 2 and 3 and provisions for stage 3 lending (NOKm) Impairments and losses on loans and guarantees (NOKm) 975 1,322 1,555 1,652 2,259 761 722 872 1,120 405 272 343 464 594 724 Q3-25 Q4-25 Q1-26 Q2-26 Q3-26 Stage 3 Stage 2 Stage 3 provisions QUARTERLY CHANGE IN STAGE 2, 3 AND IMPAIRMENTS 15.1 105.5 155.9 201.0 195.8 Q3-25 Q4-25 Q1-26 Q2-26 Q3-26
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* Only 1,6 % of year-to-date profits to be included in Q1-Q3’26 due to DPS’25. No impact on Q4’26 capital position.10 19.7 21.0 15.7 20.4 1.3 1200.00% 1300.00% 1400.00% 1500.00% 1600.00% 1700.00% 1800.00% 1900.00% 2000.00% 2100.00% 2200.00% CET1 30.06.2026 Retained profits* Growth Other CET1 30.09.2026 Long-term CET1 target Leverage Ratio 30.09.2026 Per cent SOLIDITY AND CAPITAL REQUIREMENTS • Long-term CET1 target of 15.7%, in line with the NFSA expectation. • Pareto Bank holds a buffer above this target. • Limited retained profits during Q1-Q3’26 due to high 2025 dividends. • Reduction in capital requirements with negative growth and limited other effects in the quarter. Minimum requirement 14.7% NFSA expectation 15.7%
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11 Highlights Financials Business Area Update & Outlook
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Exposure (NOKm) Note: Excludes a limited amount of mortgages.12 A NICHE PLAYER FINANCING MEDIUM-SIZED ENTERPRISES 32% 32% 14% 17% 6% RESIDENTIAL FINANCING NOK 3,811m RESIDENTIAL DEVELOPMENT FINANCING NOK 7,351m CORPORATE FINANCING NOK 7,257m SHIP FINANCING NOK 1,333m COMMERCIAL PROPERTY FINANCING NOK 3,200m Speaker notes
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(NOKbn) Note: Credit portfolio was recategorized in Q3-25, which makes comparison between Q1- to Q2-25 challenging. Excludes a limited amount of mortgages. 13 QUARTERLY EXPOSURE PER BUSINESS AREA 9.7 3.2 2.7 6.5 1.3 8.1 4.7 3.4 6.6 1.4 8.2 4.3 3.4 7.0 1.3 7.9 4.2 3.5 7.7 1.6 7.4 3.8 3.2 7.3 1.3 Residential development financing Residential financing Commercial property financing Corporate financing Ship financing Q3-25 Q4-25 Q1-26 Q2-26 Q3-26 Speaker notes
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*) Offshore Accommodation credit exposure : Super Senior Revolving credit facility. FLAT TO DECREASING EXPOSURE EXPECTED FOR Q4-26. • Volume decline in Q3-26 with some projects that did not materialize as expected. • Stable activity in Q4-26 with continued tough competition. • Risk and uncertainty persist in the Strait of Hormuz. While Arabian Gulf traffic has improved, trade flows remain inefficient, supporting demand across several shipping segments. • The remainder of 2026 looks promising for most shipping segments, driven by strong ton-mile demand, slow steaming and congestion. Accelerating fleet growth could soften market conditions in 2027. • Oil prices remain volatile and are largely driven by geopolitical developments. Extensive supply disruptions have pushed prices higher, and the rebalancing of oil markets is expected to take time. Oil prices are expected to remain at elevated levels also in 2027. • Offshore vessel markets remain robust, supported by increasing E&P activity, limited fleet growth and generally low orderbooks. Fleet utilization is expected to remain at healthy levels. SHIP FINANCING Exposure (NOKm) Total NOK 1,333m (Q2-26: NOK 1,605m) LTV 34% LTV 52% LTV 5%* 15 67 68 164 198 240 278 304 Chemicals Container Bulk Product Offshore Supply Offshore Accommodation Ind. Shipping Offshore Subsea Speaker notes 14
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15 FLAT EXPOSURE EXPECTED FOR Q4-26. • Volume down in Q3-26 as some processes did not materialize as expected. • Good activity, but high competition and flat volume expected for Q4-26. Increased risk appetite among banks and both price and structures are being challenged. • Increased efforts in Sweden will contribute to long-term growth. CORPORATE FINANCING Corporate exposure (NOKm) Total NOK 7,257m (Q2-26: NOK 7,660m) Speaker notes 43% 21% 9% 8% 4% 2%2% 10% Real Estate Investment Company Retail IT/Telecommunications Health Services Financial Services Industry Others 64% 17% 17% 2% Investment Loans Corporate Loans Working Capital Facilities Guarantees
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16 FLAT TO SLIGHTLY FALLING EXPOSURE IN Q4-26. NORWAY • Risk appetite remains low and demand limited. • Transaction volumes are primarily driven by unleveraged buyers as long-term interest rates have risen. SWEDEN • Strong transaction activity and good financing demand for new-builds and existing assets. • Strong lender competition from both banks and more specialized lenders. • Good appetite for light industrial, warehouses and logistics. High vacancy limits office appetite. Vacancy risk and tenant quality remain key priorities. • Volatile long-term rates may slow transactions, demand and investor risk appetite. COMMERCIAL PROPERTY FINANCING Commercial property exposure (NOKm) Total NOK 3,200m 3,200 Commercial Q3-26 Q2-26 Speaker notes
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* Residential includes financing of residential units for sale or rental and unsold units in newbuild projects.17 DECREASE IN VOLUME EXPECTED TO CONTINUE IN Q4-26. NORWAY • Volume is expected to decline as projects are completed and pipeline of new projects as well as risk appetite are low. • A continued weak newbuild market with very few project starts as the large price difference between new and second-hand housing persists. • Increased risk in the sales market and a build-up of completed unsold units. • A strict credit practice is continued. SWEDEN • Rising building starts and financing needs. Low rates and easing mortgage amortization requirements lift new-build sales volumes and prices. • Strong lender competition from both banks and more specialized lenders. • Volatile long-term rates may slow transactions, demand and investor risk appetite. RESIDENTIAL PROPERTY FINANCING Residential property exposure (NOKm) Total NOK 11,162m 3,811 5,799 1,125 427 Residential* Building facilities Land wo/ houses Land w/ houses Q3-26 Q2-26 Speaker notes
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MODERATE GROWTH AND STEADY DEAL FLOW IN Q4-26. • Stable exposure in Q3-26, as expected. • Approved commitments and solid pipeline of ongoing processes support continued growth through year-end and into 2027. • Network and customer base growth remain high priorities. • Team strengthened with first local hire. • Professional clients, strong credit quality and lower capital requirements in Sweden support an attractive risk-return profile. • ROE target above long-term ambition of 15%. SWEDEN Exposure Sweden branch (NOKm) Total NOK 5,501m 262 430 1,224 1,390 1,584 1,455 2,298 2,925 1,323 1,836 2,576 2019 2020 2021 2022 2023 2024 2025 Q3-26 Real Estate Corporate Speaker notes 18 Note: From 2024 onwards, exposure is split between real estate financing and corporate financing. Approx. 39% of corporate financing in Q3-26 has underlying real estate exposure.
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Bloomberg as of 30.09.2026.19 TOTAL RETURN Equity Price Change Total Return Annual Return Pareto Bank 171 % 388 % 13 % OSEBX Index 291 % 291 % 11 % Speaker notes -20 180 380 580 780 980 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 OSEBX PARB
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APPENDIX 2 0
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21 LONG-TERM AMBITIONS ROE 15% Dividend min. 50% 14.0 % 14.6 % 13.8 % 13.6 % 12.4 % 2021 2022 2023 2024 2025 49.4% 50.1% 52.9% 50.0% 98.4% 2021 2022 2023 2024 2025
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18.2 % 11.7 % 11.4 % 12.3 % 12.4 % 10.2 % 11.9 % 13.7 % 14.3 % 14.6 % 15.7 % 16.3 % 16.0 % 16.5 % 17.1 % 17.1 % 18.2 % 20.4 % 1.2 % 1.7 % 3.0 % 6.3 % 8.6 % 12.7 % 15.6 % 14.8 % 15.9 % 16.0 % 15.0 % 14.3 % 13.0 % 14.0 % 14.6 % 13.8 % 13.6 % 12.4 % 2.8 % 0.0 % 5.0 % 10.0 % 15.0 % 20.0 % 25.0 % 0.0 % 2.0 % 4.0 % 6.0 % 8.0 % 10.0 % 12.0 % 14.0 % 16.0 % 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 YTD'26 Leverage Ratio * ROE Profitability with increasing solidity *) Leverage Ratio between 2008-2015 is estimated as core capital divided by total assets. After 2015 Leverage Ratio is defined according to CRR / CRR2.22 ROE AND LEVERAGE RATIO
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0 5,000 10,000 15,000 20,000 25,000 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Corporate * Residential development Commercial Ship Per business area (NOKm) *) Including securities financing **) Residential financing reported from 201723 LENDING GROWTH Residential **
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30 September 2026 24 LARGEST SHAREHOLDERS • The Company has 76,782,423 shares outstanding. One class of shares where each share carries one voting right. • Diversified investor base with 6,088 shareholders. • The Top 10 and 20 investors hold 56% and 68% of the shares respectively. • Employees in Pareto Bank own 1.6%. • All employees are covered by an annual bonus compensation scheme settled 50% in Pareto Bank shares. Name Shares % Total 1 Pareto AS 15,356,484 20.00 % 2 Société Générale 6,156,149 8.02 % 3 AWC AS 5,182,451 6.75 % 4 Hjellegjerde Invest AS 4,276,921 5.57 % 5 Verdipapirfondet Holberg Norge 2,420,856 3.15 % 6 Kolberg Motors AS 2,350,000 3.06 % 7 Salt value AS 2,070,080 2.70 % 8 Stenshagen Invest AS 2,059,730 2.68 % 9 Landkreditt Utbytte 2,041,801 2.66 % 10 OM Holding AS 1,261,512 1.64 % 11 RB Investor AS 1,243,802 1.62 % 12 Verdipapirfondet Fondsfinans Norge 1,106,000 1.44 % 13 Catilina Invest AS 1,034,950 1.35 % 14 Verdipapirfondet Heimdal Utbytte 1,000,000 1.30 % 15 As Straen 929,252 1.21 % 16 Skandinaviska Enskilda Banken AB 900,820 1.17 % 17 DnB Bank ASA 857,539 1.12 % 18 Varde Norge AS 770,000 1.00 % 19 Elgar Kapital AS 600,000 0.78 % 20 Rikter-Svendsen AS 595,000 0.77 % Sum TOP 20 52,213,347 68.00 % Other shareholders 24,569,076 32.00 % Total 76,782,423 100.00 %
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25 Earnings per share (NOK) Book value per share (NOK) THE SHARE 2.13 1.39 0.84 0.32 0.19 Q3-25 Q4-25 Q1-26 Q2-26 Q3-26 66.21 67.60 68.45 60.77 61.03 Q3-25 Q4-25 Q1-26 Q2-26 Q3-26
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P&L (NOKm) 26 QUARTERLY INCOME STATEMENT Q3-26 Q2-26 Q1-26 Q4-25 Q3-25 Net interest income 285.2 288.0 299.4 310.6 304.4 Net other operating income -6.2 10.8 10.9 3.7 1.2 Total net income 279.0 298.8 314.3 314.3 305.6 Total operating expenses 50.7 52.9 56.3 54.0 59.2 Operating profit before impairments and losses 228.3 245.9 254.1 260.3 246.4 Impairments and losses on loans and guarantees 195.8 201.0 155.9 105.5 15.1 Pre-tax operating profit 32.5 44.9 98.2 154.8 231.3 Tax expense 4.8 8.1 21.5 35.1 54.6 Interest hybrid capital 13.2 12.6 12.3 12.7 13.0 Profit for the period 27.7 36.9 76.7 119.7 176.8 Earnings per share (NOK) 0.19 0.32 0.84 1.39 2.13 Return on equity 1.2 % 2.0 % 5.0 % 8.3 % 13.0 % Cost/income ratio 18.2 % 17.7 % 18.1 % 17.2 % 19.4 %
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(NOKm) 27 QUARTERLY BALANCE SHEET Q3-26 Q2-26 Q1-26 Q4-25 Q3-25 Loans to credit institutions 1,636 1,677 2,213 1,589 1,841 Loans to customers 17,934 19,406 19,249 18,774 18,983 Bonds and other securities 2,861 2,862 2,861 4,668 5,692 Shareholdings in associated companies 33 33 33 33 34 Other assets 319 279 324 273 210 Total assets 22,783 24,257 24,680 25,337 26,761 Deposits from customers and institutions 10,280 10,881 10,351 11,758 13,297 Senior securities issued 6,535 7,250 7,582 6,743 6,737 Other liabilities 152 209 241 395 394 Tier 2 subordinated securities issued 579 701 700 700 700 Additional tier 1 capital 550 550 550 550 550 Other equity 4,686 4,666 5,256 5,191 5,084 Total liabilities and equity 22,783 24,257 24,680 25,337 26,761
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Margins are not adjusted for lack of contribution for stage 3 loans. Segment margins are estimated on the basis of terms of existing loans at quarter end and will therefore differ from reported total lending margins due to differences in rent date. Loans granted under the state guaranteed SMB loan program, retail mortgages and employee mortgages are excluded from this analysis. Based on terms and 3M NIBOR as of 30.09.2026. Fixing in arrears for SOFR rates are estimated. 28 Margins per business area Interest contribution per business area MARGINS AND INTEREST CONTRIBUTION 41 277 505 Ship Financing Corporate Financing Property Financing Estimated annualized margins including commissions, excluding front and back-end fees over 3M Nibor or similar rate NOKm, estimated interest contribution including commissions, excluding front and back-end fees over 3M Nibor or similar rate. 3.8 % 5.3 % 4.1 % Ship Financing Corporate Financing Property Financing Sjekk opp mot s.8
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*) Residential property includes land, building facilities and residential real estate. Commercial property includes only commercial real estate.29 Geographical residential property exposure Total NOK 11,162m* Geographical commercial property exposure Total NOK 3,200m* REAL ESTATE FINANCING EXPOSURE 54% 23% 7% 7% 3% 7% Sweden Oslo Akershus Vestland Vestfold Others 38% 29% 11% 5% 4% 13% Oslo Akershus Sweden Vestfold Buskerud Others
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30 Exposure Sweden branch (NOKm) Total NOK 5,501m Lending Sweden branch (NOKm) Total NOK 4,055m SWEDEN 844 481 2,017 2,556 836 352 1,738 2,576 Residential development financing Residential financing Commercial property financing Corporate financing Q3-26 Q2-26 481 475 1,720 1,639 581 348 1,393 1,732 Residential development financing Residential financing Commercial property financing Corporate financing Q3-26 Q2-26
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31 Low credit and market risk (NOKm) LIQUIDITY BUFFER Comments • Cash on hand. • Highly liquid bonds. • Low credit risk. • No interest rate or foreign exchange risk. • Access to central bank facilities and repo market. • Marked to market. • Assets qualify for LCR portfolio. 1,621 956 1,888 Cash (Norges Bank & DNB) Bonds issued by government & PSEs Covered bonds
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32 Sources (NOKm) Deposits & senior debt FUNDING Key funding and liquidity ratios NOKm, Percent customer deposits of net lending to customers 4,686 173 1,129 6,535 10,259 Equity capital Other debt AT1 & T2 debt Senior debt Deposits 13,227 11,674 10,315 10,858 10,259 6,737 6,743 7,582 7,250 6,535 69.7% 62.2% 53.6% 55.9% 57.2% Q3-25 Q4-25 Q1-26 Q2-26 Q3-26 Deposits Senior funding Deposit-to-loan ratio • Deposits with liquidity restrictions 80 % • Corporate deposits 46 % • Deposit-to-loan ratio 57 % • Net Stable Funding Ratio 150 % • Liquidity Coverage Ratio 502 %
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Deposits exclude accrued interests.33 Deposits by size (NOKm) Deposits by product (NOKm) CUSTOMER DEPOSITS Deposits by type (NOKm) 10,109 771 4,578 3,496 1,105 158 13,050 916 5,940 4,144 1,852 198 Total Client accounts Fixed rate Savings with restrictions Floating rate corporate Floating rate retail Q3-25 Q3-26 1,034 1,026 579 547 2,344 1,981 1,915 233 235 215 0 1,000 2,000 3,000 4,000 NOK 0 - 2m NOK 2 - 5m NOK 5 - 10m NOK 10 - 20m > NOK 20m Floating rate Fixed rate 5,421 4,259 4,688 1,905 Amount (NOKm) Depositors (#) Retail Corporate
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*) Net of own holdings as of 30.09.2026. **) Floating rate coupon for new bond issue per maturity (basis points over 3M Nibor).34 Market funding maturities (NOKm) * Cost of new market funding ** MARKET FUNDING 2,053 1,400 2,300 750 250 575 300 0 2027 2028 2029 2030 Senior Call on Subordinated Capital 28 33 43 63 80 111 31 36 48 70 90 121 3M 6M 12M 2Y 3Y 5Y 30.06.2026 30.09.2026
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35 Commitment size per customer (NOKm) 4,462 2,911 3,798 3,101 4,247 4,222 359 5,907 1,781 3,777 2,646 4,644 4,334 433 > 250 200 - 250 150 - 200 100 - 150 50 - 100 10 - 50 < 10 Q3-25 Q3-26 Maximum size for a single customer is NOK 400m. Maximum size for a group / on a consolidated basis is NOK 500m. 2% 18% 18% 13% 16% 13% 19% < 10 10 - 50 50 - 100 100 - 150 150 - 200 200 - 250 > 250 Distribution of commitments by size (NOKm) COMMITMENTS BY SIZE
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*) Risk classification of credit exposure according to PD (probability of default) model.36 Risk classification (NOKm) * Risk classification COMMITMENTS BY RISK CLASSIFICATION 2,259 1,086 14,280 5,474 975 1,914 15,732 4,902 Impaired High risk Moderate risk Low risk Q3-25 Q3-26 24% 62% 5% 10% Low risk Moderate risk High risk Impaired
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0.00% 0.00% 0.00% 0.00% 0.00% 0.28% 0.01% 0.00% 0.05% 0.11% 0.26% 0.24% 0.14% 0.02% 0.04% 0.30% 0.05% 0.20% 0.97% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 YTD 2026 Confirmed losses as share of gross lending Residential/ Commercial/ Corporate financing Residential/ Corporate financing 37 HISTORIC TRACK RECORD OF CREDIT QUALITY Commercial/ Residential financing Commercial property financing Offshore financing • No losses from 2008 to 2012. • Total confirmed losses limited to NOK 415m during 19 years of operation. • Accumulated lending amounted to approx. NOK 211 billion during the past 19 years. Total confirmed losses make up about 0.20 % of accumulated lending. • Average ratio of annual confirmed losses to gross lending is 0.14 % per year.
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