SpareBank 1 SMN: Supervisory Review and Evaluation Prosess (SREP)

13 Dec 2023 08:30 CET

The Financial Supervisory Authority of Norway (“the FSA”) has updated the
assessment of Supervisory Review and Evaluation Process (“SREP”) for risks and
capital needs for SpareBank 1 SMN and decided on the capital requirements for
Pillar 2 and Pillar 2 guidance. These capital requirements come in addition to
the minimum requirements and combined buffer requirements under Pillar 1.

The FSA has decided that the Pillar 2 requirements shall be reduced from 1.9 %
to 1.7 % of the total risk exposure amount (TREA). SpareBank 1 SMN have in
addition a temporary requirement in Pillar 2, tied to model risks, of 0.7 %. At
least 56.25 percent of the requirement must be covered with Core Equity Tier 1,
while 75 percent must be covered with Tier 1 capital.

The expectation for Pillar 2 Guidance is unchanged at 1.25 percent.

The new requirement will apply from 31 December 2023.


Trondheim, 13 December 2023

Contact:
CFO Trond Søraas, tel. +47 922 36 803
CRO Ola Neråsen, tel. +47 918 09 722


This information is subject to the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.

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