Strong results – but preparing for tougher times

30 Oct 2024 07:30 CET

SpareBank 1 Nord-Norge delivers a result of NOK 3 441 million before tax, and a
return on equity of 22,9 percent after the third quarter of 2024.

– The businesses in Northern Norway have stood firm in the storm. Northern
Norway has not yet seen a significant increase in bankruptcies, and unemployment
is almost non-existent. We continue to export goods the world needs, and the
weak currency rate is more favorable in the north than in the south of Norway.
We also have very low losses, beyond model-based provisions. The favorable
macroeconomic conditions are reflected in our results, says CEO Hanne Karoline
Kræmer.

Growth in all areas

The annualized growth in the third quarter for the corporate market is 7
percent, while the corresponding figure for the personal market is 7,5 percent.
The group is also growing in real estate brokerage, accounting, and financing
and leasing. The subsidiaries have so far this year delivered more than 20
percent better results than at the same time last year, with a total
contribution of 248,7 million kroner.

– People and businesses in Northern Norway choose SpareBank 1 Nord-Norge. It is
a vote of confidence that I am proud to receive, says Kræmer.

The group also achieves good returns on its ownership in the SpareBank 1
alliance.

– We own almost 20 percent of the SpareBank 1 alliance. When companies like
Fremtind, SpareBank 1 Forsikring, and SpareBank 1 Forvaltning deliver good
figures, it shows in our figures. We can clearly see the positive effect in this
quarter, says Kræmer.

Will reduce costs through simplification

Although the results now presented are strong, Kræmer will initiate a project to
gain even better cost control.

– We are now working on simplification and removing time thieves and
non-productive work. Our plan is to replace only 80 percent of the employees
that choose to leave. Normally, between 100 and 120 people leave the group in a
year. By replacing not more than 4 out of 5, this will provide annual savings of
approximately 10 million kroner in 2025, increasing to 40-50 million kroner in
2027. It also gives us much better control over how we use our time in the
group. I strongly believe that this is a better method than traditional, and
expensive, severance packages, says Kræmer.

On Wednesday, October 30th at 09:15, SpareBank 1 Nord-Norge will present the
results for the 3rd quarter in a webinar. The broadcast can be followed at
www.snn.no/investor. The presentation will only be held in Norwegian.

Key figures Q324:
• Results: 3 441 MNOK. (2 345)
• ROE: 22,9 % (15,6 %)
• C/I: 28,5 % (34,5 %)
• Losses and ECL: 86 MNOK. (25)
• CET-1: 16,6 % (17,6 %)
(Corresponding figures for 2023 in brackets)

Contacts:
• CEO Hanne Karoline Kræmer, phone 414 70 483
• CFO Bengt Olsen, phone 975 89 560
• CCO Stein Vidar Loftås, phone 951 26 576

This information is subject to the disclosure requirements pursuant to Section
5-12 the Norwegian Securities Trading Act. This stock exchange announcement was
published by Morten Tønder Albertsen, Head of Communications at SpareBank 1
Nord-Norge, on October 30, 2024 at 07:30 CET.

More information:
Access the news on Oslo Bors NewsWeb site

630691_Quarterly presentation 3Q24 - SpareBank 1 Nord-Norge.pdf
630691_Quarterly Report 3Q24 SpareBank 1 Nord-Norge.pdf