SpareBank 1 Østlandet (SPOL): High profitability and completed merger

01 Nov 2024 07:57 CET

SpareBank 1 Østlandet's profit after tax for the third quarter of 2024 was NOK 1
080 (417) million. The return on equity was 20.4 (8.3) percent.

The merger between Fremtind Forsikring and Eika Forsikring positively impacted
the result in the quarter. At the same time, underlying profitability for the
bank’s core business was also good.

Net interest income, including commissions from covered bond companies, was NOK
1,105 million, an increase of 12.8 percent from the corresponding quarter last
year. Growth in the bank's lending volume supported the improvement in interest
income. Compared to the second quarter, loans to retail customers and businesses
increased by 1.3 and 0.5 percent, respectively.

«The activity level in the retail market was unusually high in the third
quarter, while competition remains strong. In the corporate market, activity
growth was more moderate in the third quarter. At the same time, there are
signals of much stronger market growth in the coming quarters», says Group CEO
Klara-Lise Aasen.

It was another strong quarter for commission income, across areas. High activity
in the existing housing market had positive effects on brokerage commissions.
There was also good growth in commission income from insurance, funds, payment
services, and credit cards.

The bank's loan loss provisions in the third quarter were NOK 106 million. The
increase from the previous quarter is mainly due to ongoing challenges with a
customer for which the bank has previously made provisions. Beyond this, the
credit quality of the portfolio appears very good.

The group's operating expenses in the third quarter were NOK 596 million.
Underlying cost growth is higher than desirable. In the near future, the
integration with Totens Sparebank will contribute to further cost pressure. The
bank is therefore working to achieve other efficiency gains.

«The major event today is the merger with Totens Sparebank, which is now taking
effect. These are two banks with similar values, business concepts, and culture
coming together to create an even better bank for the Inland region. The
integration between the two banks is in full swing, and the technical merger is
expected to take place during 2025. We look forward to continuing to create
value for customers, owners, and local communities going forward, now as a
united team», says Aasen.

3Q 2024 (Consolidated figures. Figures in brackets concern the corresponding
period in 2023)
• Profit after tax: NOK 1 080 (417) million
• Return on equity: 20.4 (8.3) per cent
• Earnings per equity capital certificate: NOK 6.24 (2.50)
• Net interest income: NOK 1 021 (941) million
• Net commissions and other operating income: NOK 443 (358) million
• Net income from financial assets and liabilities: NOK 530 (-63) million
• Total operating expenses: NOK 596 (533) million
• Net loan loss provisions were NOK 106 (134) million.
• Lending growth in the last quarter, including mortgages transferred to the
covered bond companies: 1.1 (1.4) per cent
• Deposit growth in the last quarter: -1.0 (-1.9) per cent
• CET1 capital ratio: 16.9 (17.7) per cent
• The Bank's green loans (incl. loans transferred to the covered bond companies)
amounted to NOK 43 (39) billion at the end of the third quarter


Contact information:
Klara-Lise Aasen, Group CEO, Tel.: +47 476 35 583
Geir-Egil Bolstad, CFO, Tel.: +47 918 82 071
Bjørn-Erik Orskaug, Head of Investor Relations, Tel.: +47 922 39 185
Siv Stenseth, EVP Communication and Social Affairs, Tel.: +47 958 46 991

This information must be disclosed pursuant to section 5-12 of the Securities
Trading Act.

More information:
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630993_SPOL_20243Q_ENG_Quarterly presentation.pdf
630993_SPOL_20243Q_ENG_quarterly report.pdf