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2Q Quarterly presentation Second quarter 2025
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2 2Q: Strong profitability Return on equity (%) • Return on equity of 14.9 %. Strong contributions from all income lines and very low loan losses. • Solid growth in net interest income. Continued high activity in the retail market with intense competition. More moderate corporate market activity, but rate cut from Norges Bank is expected to contribute positively. • Strong growth in non-interest income, especially in insurance, with solid sales activity. High revenues also from the merged real estate brokerage operations. • Significant profit contributions from financial items, including SpareBank 1 Gruppen, as well as share sales and dividends received from Eika • High cost growth, driven by IT, merger-related expenses, and increased staffing. Some of this is due to one-off effects but also reflects new initiatives and continuous strengthening of business development, regulatory compliance, and quality initiatives. • Low impairment charges, of NOK 1 million. The overall quality of the loan portfolio is solid. Loan growth* NIMEarnings/ECC 4.71 NOK 3.9 % 2.17 % • 4,8 % • 37,3 % • 17,0 % Loss provisions CET-1Cost/income 40.8 % 1 NOK mill. 18.3 % * Proforma
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3 Financial targets Profitability Dividends Solidity 16.1 %> 13 % > 50 % 14.4 % 62 % 18.3 % Achievements year-to-date
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Global turmoil, but regional signs of improvement Activity in market area has been lower than elsewhere in Norway, but looks to be recovering. Rate cut from Norges Bank will help rate-sensitive sectors. Activity in housing market is still high. 4 Existing home sales (no. of homes), monthly, market area Number of bankruptcies, year-to-date (H1 each year), market area Norges Banks regional indicators
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4 5 Retail market: Another strong quarter High activity with large number of mortgage applications. The best union offers in the market contributes especially positively and market share has increased. Strong non-interest income, especially from insurance sales. * Includes loans transferred to the covered bond companies. ** Based on allocation of customer loans between retail and corporate divisions. Loan volume and growth (NOK bill. and %)* Deposit volume and growth (NOK bill. and %) Margins, parent bank (%)** Proforma excl. margins
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6 Lower interest rates sharpens focus on commissions Bank is leading in insurance sales. Good sales, insurance price adjustments, and low claims contributes positively. Merged real estate company delivers strong first half year, with increasing market shares. Insurance commissions, 4Q rolling sum, NOK million Real estate commission, 4Q rolling sum, NOK million
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4 7 Corporate market: Moderate activity levels Moderate growth in market area and the loan portfolio has been stable. Signs of increased investment appetite in interest-sensitive sectors. Very high CM customer satisfaction, which will benefit the bank when the market turns. * Includes loans transferred to the covered bond companies. ** Based on allocation of customer loans between retail and corporate divisions. Loan volume and growth (NOK bill. and %)* Deposit volume and growth (NOK bill. and %) Margins, parent bank (%)** Proforma excl. margins
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8 New initiatives and leading customer service Opening of finance centre in Drammen New and important market area Real estate branches being established Leading customer service Ranked top-3 for the second year in a row («KSIndeks») Developing strong finance centre in Gjøvik Opening of new customer service centre Important element in growth initiative in Oppland region
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9 Revised strategic vision and ambition Together we develop Eastern Norway
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10 2Q Financial accounts Second quarter 2025
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11 Income statement * Net interest income includes commission fees from covered bond companies. Chg. in operating profit after tax (NOK mill.), from last yearChg. in operating profit after tax (NOK mill.), from previous quarter Proforma
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12 Net interest income NII incl. commission fees from the covered bond companies rose by 3.2 % from the same period in 2024. New income model in covered bond companies contributed 19 MNOK in increased income in 2Q -25. Net interest income incl. commissions from covered bond companies (MNOK and %) Proforma
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13 Commission income * Excludes commission income from the covered bond companies. Net commissions and other income (NOK million) Proforma
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14 Profits in subsidiaries * EiendomsMegler 1 Oslo Akershus AS, and EiendomsMegler 1 Innlandet AS merged with accounting effect from January 1, 2025. Comparative figures are shown aggregated. Profits after tax in subsidiaries (NOK million) Proforma
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15 Profits in joint ventures Profits after tax in joint ventures (NOK million)
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16 Net income from financial assets and liabilities Net income from finance (NOK million) Proforma
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17 Operating expenses 40 MNOK in increased ICT expenses from court ruling in the case b/w SpareBank 1 Utvikling and Tietoevry. In addition, running ICT expenses will increase by about 15 MNOK annually going forward. Operating expenses (NOK million) Proforma
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18 Operating expenses Quarterly cost income ratios, excl. financial itemsChanges in operating expenses (NOK million), from last year Proforma
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19 Loan loss provisions Quarterly loan loss provisions Proforma
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20 Exposures per stage and credit loss provision ratio in stage 3 Merger with Totens contributed in isolation to an increase in gross loans in stage 3 loans of just above NOK 650 mill. * Excluding loans transferred to covered bond companies. Residual up to 100 per cent is due to loans at fair value over profit. Loans in Stage 3 (NOK mill.)Exposure by stages (% of gross loans)*
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A solid loan portfolio Bank closely follows up payment problems, but far fewer customers than expected have problems. 21 Mortgages to debt collection (volume)*Share of retail customers with interest-only mortgage, %* Use of corporate credit facilities (parent bank)* LTV commercial real estate* * Based on numbers for parent bank excl. Toten portfolio.
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22 Capital levels Larger positive effect from CRR3 on CET-1 than originally estimated, but larger negative effect in 3Q than previously estimated from higher risk weight floor. Net effect of regulatory changes is estimated to be somewhat smaller than previously thought (+0.1 pp. vs. +0.3 pp.) Common equity Tier 1 capital ratio
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Together we develop Eastern Norway
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24 Why invest in SPOL?
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25 Contact details Klara-Lise Aasen CEO klara-lise.aasen@sb1ostlandet.no Geir-Egil Bolstad CFO +47 918 82 071 geir-egil.bolstad@sb1ostlandet.no Bjørn-Erik R. Orskaug Head of Investor Relations +47 922 39 185 bjorn-erik.orskaug@sb1ostlandet.no investor@sb1ostlandet.no
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Disclaimer This presentation contains forward- ’ events and potential financial performance. Although SpareBank 1 Østlandet believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ materially from those set out in the forward-looking statements as a result of various factors. Important factors that may cause such a difference for SpareBank 1 Østlandet are, but are not limited to: (i) the macroeconomic development, (ii) change in the competitive climate, (iii) change in the regulatory environment and other government actions and (iv) change in interest rate and foreign exchange rate levels. This presentation does not imply that SpareBank 1 Østlandet has undertaken to revise these forward-looking statements, beyond what is required by applicable law or applicable stock exchange regulations if and when circumstances arise that will lead to changes compared to the date when these statements were provided.
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Appendix 27
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28 Green lending Green share of lending is important to reach our net zero emissions objective.* * Green loans are defined on page 122 in 2024 Annual report. Share of green lending, %Green loans per 30 June 2025, MNOK = (Green ratio) Residential mortgages Commercial real estate
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29 Good feedback on our work on CSR
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30 Headcount • * EM1 Innlandet and EM1 Oslo/Akershus merged with accounting effect on January 1, 2025. In the figure, EM1 Østlandet corresponds to EM1 Oslo/Akershus before January 1. Full-time equivalents in parent bank and subsidiaries
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4 31 Group volume growth and margin development * Includes loans transferred to the covered bond companies. ** Based on allocation of customer loans between retail and corporate divisions. Loan volume and growth (NOK bill. and %)* Deposit volume and growth (NOK bill. and %) Margins, parent bank (%)** Proforma excl. margins
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32 Well diversified loan portfolio Lending to customers per sector (in %) Corporate market 28.1 % / 66,243 Retail market 71.9 % / 169,484
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33 The Group’s lending by geography Change last 12 months (%)Lending to customers per county (share in %/NOK million)
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34 Mortgage loans by geography Change last 12 months (%)Retail lending by county (share in %/NOK million)
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35 Corporate market lending by geography Change last 12 months (%)Corporate lending by county (share in %/NOK million)
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36 Rate sensitive volume * Covered bonds refer to loans transferred to covered bond companies. Securities, NOK bill.*Loans and deposits, NOK bill.
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37 Rate fixings of funding and security holdings * Includes rate fixings on liquidity portfolio, debt securities issued on own balance, and interest rate/cross currency basis swaps. NIBOR and commission rate SB1 Boligkreditt, %Net rate fixings per month, share of quarter**
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4 38 Retail: Indicators of underlying credit quality * Based on numbers for parent bank excl. Toten. ** Does not include loans transferred to SpareBank 1 Boligkreditt. Retail customers with interest-only mortgage* Mortgages to debt collection (volume)* Arrears retail market, NOK mill.**
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39 Retail: Mortgage collateral * Including loans transferred to SpareBank 1 Boligkreditt. Share of lending according to LTV - retail mortgages*Share of LTV by exposure – retail mortgages*
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40 Stable low LTVs in new mortgage approvals Based on numbers for parent bank excl. Toten portfolio. Share of new mortgage approvals and average LTV per period and county (Inland county divided b/w old Hedmark and Oppland counties) Oslo Akershus Hedmark Oppland Other
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41 Corporate: Indicators of underlying credit quality * Based on numbers for parent bank excl. Toten portfolio, with exposures of at least NOK 10 mill. Corp. arrears below 90 days (NOK mill.)*Use of corporate credit facilities (parent bank)*
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4 42 CRE: Attractive, diversified portfolio 96 % of tenants have contracts that are 100 % indexed (to CPI). * * Based on numbers for parent bank excl. Toten portfolio, with exposures of at least NOK 10 mill. Rental space attractivity Geographical distribution of rental space LTV for CRE portfolio Share of rental space according to type Share of rental space at different indexation
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43 CRE: Solid collateral Loan portfolio is well positioned for higher yields in the commercial real estate market. * Based on numbers for parent bank excl. Toten portfolio, with exposures of at least NOK 10 mill. Share of lending according to LTV – CRE*Share of LTV by exposure – CRE*
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44 Projects: Low activity for building projects Required pre-sales normally 60 %, depending for example on equity, experience and complexity. * Based on numbers for parent bank excl. Toten portfolio. Draw on construction loans, volume-weighted, share in %, *Loans to real estate projects, building and construction, NOK bill.*
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In line with dividend policy, for owners and society (through primary capital) Profit after controlling interest NOK 3,206 mill. Primary capital NOK 949 mill. Owners NOK 2,257 mill. Dividends NOK 1,399 mill./10.30 per ECC Dividend equalisationfund NOK 502 mill. Customerdividends/gifts NOK 470 mill NOK 42 mill. Primary capital provision NOK 279 mill. Dividends for the owners and customers equal 60 % of the Group’s profit after tax1) Sparebank- stiftelsen Hedmark NOK 622 mill. Gifts and donations 44.5% 1) ’ provisions, fund for unrealised gains and non-controlling interests have been excluded. Moreover, the allocation of profits is based on profit after taxes in the parent bank while the dividend policy regards Group profits after taxes.. ILLUSTRATION Profit allocation for 2024 45 Totens Sparebank- stiftelse NOK 121 mill. 8.6% The foundations
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46 SPOL Price development (dividend adjusted), index = 100 pr 30 Jun-23 Turnover and SPOL price, monthly 1) SpareBank 1 Østlandet was listed on 13 June 2017. 2) APMs are defined in the quarterly report and the factbook. 3) Profit after tax for controlling interests x Equity capital certificate ratio*/ number of ECC's.
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Together we develop Eastern Norway