SpareBank 1 Nord-Norge: Solid performance behind results

16 May 2025 07:30 CEST

SpareBank 1 Nord-Norge's result for the first quarter of 2025 shows NOK 1,008
million before tax. This is NOK 92 million higher than in the same quarter in
2024. CEO Hanne Karoline Kræmer says this about the figures:

– The numbers are strong. But to quote the coach of our good partner Bodø/Glimt;
I am more satisfied with the performances behind the numbers. When the
performances are good, the numbers will be good, too.

The CEO points out several measures that are having an effect. Among other
things, the group launched a simplification project last autumn, with ambitions
to cut costs by around NOK 10 million already in 2025.

– Although we are in the early stages of implementation, we are already seeing
positive effects. Cost growth in the first quarter is only 4 percent, compared
to the same quarter last year. Measured against the fourth quarter of 2024, we
have reduced costs by over NOK 100 million. And lower costs, combined with
growth, are naturally reflected in our figures, says Kræmer.

Hopefully, customers will also experience another effect of the project on
better and faster service.

– Simplification is primarily about removing unnecessary and low-value adding
tasks and instead spending time on tasks that add value. Our ambition is that
simplification will enable us to deliver faster and better. This will benefit
the customers, Kræmer emphasizes.

Last year, SpareBank 1 Nord-Norge was named Norway's best in customer service,
regardless of industry. Recently, it was announced that SNN is again among the
top three – for customer service within banking.

– The decision will be made in a few weeks, and we are of course excited about
which part of the podium we will end up on. Regardless of the outcome, this is
proof that prioritizing what benefits the customer has effect, says Kræmer.

Growth – and Less Fraud

SpareBank 1 Nord-Norge can show continued growth in both the retail- and the
corporate market.

– Yes, we are still growing, and I am very pleased that customers choose us.
Measured over 12 months, growth in the retail market is 6.5 percent, and in the
corporate market 2.4 percent. We still experience low loan losses, and now we
also see that losses due to fraud are decreasing. This is good for our customers
and good for us.

The CEO explains that SpareBank 1 Nord-Norge has recently put significant effort
into fraud prevention.

– Unfortunately, we see that digital fraud is increasing. Information can
prevent more customers from being deceived. Fraudsters often rely on victims to
give them access to their accounts. Helping customers protect themselves against
fraud is perhaps the most effective solution to this problem. Therefore, we are
now more or less continuously on the road with lectures on how to detect
attempts on fraud and avoid being deceived. These efforts also contribute to our
results, says Kræmer.

Continued Optimism

The corporate sector in Northern Norway have managed well through both the
pandemic, inflation, and rising interest rates. Kræmer explains that the outlook
for the region is still good, but she is a bit concerned about one of Northern
Norway's most important industries, the fisheries.

– It has been fascinating to see that the region has handled the challenges that
have hit us in an almost surprisingly good way. This has also been the case for
the fisheries. The effect of lower quotas has, for example, been compensated for
by both a weak NOK rate and higher prices. However, competition for the fish
means that the land-based industry is affected. If quotas are further reduced,
there is a increased reason for concern. Wild-caught fish, and the ripple
effects of this, have always been very important for Northern Norway, she says.

In parallel with this, she highlights a tourism industry that is constantly
growing and now also focuses on necessary consolidation. This strengthens the
region's competitiveness. Kræmer repeats a frequently used postulate in
SpareBank 1 Nord-Norge:

– When the region is doing well, the bank is doing well. There is clear logic in
this. When businesses thrive and people have jobs, it is easier to succeed as a
bank. Northern Norway has few bankruptcies, and even though some companies are
struggling more than before, there is still work for everyone who wants it. This
gives us a very good foundation to succeed as a bank, says Kræmer.

– At the same time, SpareBank 1 Nord-Norge is in the fortunate position of
having the community dividend driven Samfunnsløftet, which, if used correctly,
can contribute to the region's success. This year, over NOK 1 billion will be
distributed through Samfunnsløftet. It is nice to be able to contribute to the
development of the region in this way as well, says Kræmer.

Key figures:
• Profit before tax: NOK 1,008 million (916)
• Return on equity: 17.2% (17.8%)
• C/I: 31.6% (33.2%)
• Losses: NOK 57 million (36)
• CET1-ratio: 16.3% (16.6%)
(Comparable figures for 2024 in brackets)

Contacts:
• CEO Hanne Karoline Kræmer, tel. 414 70 483
• CFO, Bengt Olsen, tel. 975 89 560
• Head of communications, Morten Tønder Albertsen, tel. 901 21 173

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 May 16, 2025 at 07:30 CET.

More information:
Access the news on Oslo Bors NewsWeb site

646633_Presentation ENG 1Q25 SpareBank 1 Nord-Norge.pdf
646633_Quarterly Report SpareBank 1 Nord-Norge 1Q25.pdf