Strong final quarter for Sparebanken Sør

30 Apr 2025 07:00 CEST

– Sparebanken Sør delivers solid results in its final quarter before the merger
with Sparebanken Vest. It is also gratifying to conclude with a quarter in which
we distributed NOK 416 million in customer dividends.

That’s according to CEO Geir Bergskaug, who on Wednesday presented his final
quarterly results for the bank he has led since 2010. A profit after tax of NOK
529 million represents a slight decrease from NOK 573 million in the same period
in 2024.

– A stable net interest income, positive financial income, increased commission
income, and low loan losses contribute to a solid return on equity this quarter
as well, Bergskaug noted.

Third year of customer dividends
Sparebanken Sør distributed customer dividends for the first time in 2023. As a
result of strong profits in 2024, the bank allocated NOK 416 million for this
purpose in its third year as a customer dividend bank.

– What is good for the bank should also be good for our customers and the
region, Bergskaug said. The solid 2024 profit allowed us to distribute NOK 416
million to our customers this April. In addition, the surplus enabled a
record-high allocation to the bank’s gift fund. NOK 348 million will be used in
2025 to support sustainable growth and development in the region, he added,
promising that the region will be well taken care of in Sparebanken Norge as
well.

Strong results from associated companies
The bank saw a positive increase in net commission income from NOK 85 million in
Q1 2024 to NOK 98 million in Q1 2025. Contribution to profits from associated
companies also increased from NOK 5 million in 2024 to NOK 27 million in the
same quarter this year.

– We’re seeing a significant improvement in results from both Frende and Brage.
In addition, Sørmegleren has shown a considerable improvement in recent
quarters, Bergskaug stated.

Impressive momentum into the merger
On Friday, May 2, Sparebanken Sør and Sparebanken Vest will merge, forming
Norway’s largest savings bank. The merger process has been ongoing since autumn
2024, and Bergskaug is impressed with how the organization has continued to
deliver strong results during this period.

– During the merger period, we have seen strong growth in both deposits and net
lending. I’m pleased with a 12-month gross lending growth of 4.7 percent,
particularly noting that the retail customer market delivered strong results
with 6.1 percent growth, he concluded.

Key figures from Q1 2025 (Q1 2024 figures in parentheses):
• Profit after tax: NOK 529 million (NOK 573 million)
• Return on equity: 13.4 percent* (14.4 percent)
• Net interest income: NOK 800 million (NOK 824 million)
• Net commission income: NOK 98 million (NOK 85 million)
• Net income from financial instrument: NOK 22 million (NOK 39 million)
• Income from associated companies: NOK 27 million (NOK 5 million)
• Operating costs: 393 mill. kr (NOK 330 million)
• Net loan losses: NOK 10 million (NOK 6 million)

* excluding merger-related expenses

The full quarterly report can be read at www.sor.no

Contact persons:
Geir Bergskaug, CEO, tel. +47 901 27 206
Steinar Vigsnes, CFO, tel. +47 906 13 135

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

More information:
Access the news on Oslo Bors NewsWeb site

644806_1. kvartal sparebanken sør engelsk OSE.pdf