SpareBank 1 Østlandet (SPOL): Estimated effect of increased IRB risk weight floor for mortgage loans

10 Dec 2024 15:23 CET

Norwegian authorities have decided to increase the minimum requirements on
average risk weights for loans secured by Norwegian residential real estate
applicable to banks using the internal ratings-based approach (IRB) from 20 to
25 percent, with effect from 1 July 2025.

Based on figures from the third quarter of 2024, the increased minimum
requirement is expected to result in an isolated reduction in the Common Equity
Tier 1 (CET-1) ratio of 0.4 percentage points, effective July 1, 2025. The
calculation is based on the group's loan portfolio before the merger with Totens
Sparebank. Other effects from the implementation of CRR-3 will be communicated
to the market at a later date.

The group's reported Common Equity Tier 1 ratio as of 3Q 2024 was 16.9 %,
compared to a capital target of 16.1 %.

For further information, please contact:
Geir-Egil Bolstad, CFO, Tel.: +47 918 82 071
Bjørn-Erik R. Orskaug, Head of Investor Relations, Tel.: +47 922 39 185

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

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