Solid performance with strong operations, growth, and high activity

07 Aug 2025 07:00 CEST

SpareBank 1 Sør-Norge ASA delivered a profit of 1.668 million NOK after tax in
the second quarter of 2025. The return on equity was 12.9 percent, or 14.4
percent adjusted for goodwill from the merger and merger-related costs.

Lending growth continued at SpareBank 1 Sør-Norge in the second quarter. In the
Retail Market, the twelve-month lending growth was 7.1 percent at the end of
June. Across all customer divisions, the group recorded the highest percentage
growth in Oslo and Akershus, with a lending growth of 15 percent.

"The group is attractive to customers in the southern region of Norway and
gained market share in the quarter. At the same time, we maintain strong cost
control and low loan losses, which demonstrate the high quality of our loan
portfolio. In a competitive environment with falling interest rates, it is our
combination of terms, advisory services, products, and offerings that will
ensure we are the bank customers choose," says Group CEO Inge Reinertsen.

Throughout the second quarter, the bank's advisors and the brokers at
EiendomsMegler 1 worked closely with customers to meet the high demand for loans
and housing. Activity in the housing market was particularly high in
Southwestern Norway, and this trend is expected to continue.

Additionally, most businesses surveyed in SpareBank 1 Sør-Norge's Economic
Barometer expect increased revenue, more employees, and a strengthened order
reserve in the coming year. Normally, such optimism would trigger a higher
willingness to invest, but for now, some businesses are proceeding with caution.

"The optimism among businesses is higher than we had expected, given the current
global uncertainties. This indicates that the business community is navigating
these uncertainties effectively," Reinertsen explains.

It has been ten months since the establishment of SpareBank 1 Sør-Norge. Total
synergies from the merger, related to personnel, costs, revenue, and funding,
are estimated at 300 million NOK annually starting from 2027. The group is on
track to achieve these targets.

In September, the technical merger of SpareBank 1 Sør-Norge will take place.

“SpareBank 1 Sør-Norge was only recently established, and we are now preparing
for the technical merger. Already, we see that the merger is having a positive
impact on the group's operations. This is reflected in growth, efficiency, and
access to capital," says Reinertsen.

Key figures for the second quarter 2025
• Profit before tax: NOK 2.050 million (NOK 1.927 million)
• Profit after tax: NOK 1.668 million (NOK 1.510 million)
• Return on equity after tax: 12.9 percent (13.3 percent)
• Return on equity, adjusted for goodwill after merger and merger costs: 14.4
percent (13,4 percent)
• Earnings per share: NOK 4.23 (NOK 3.86)
• Net interest income: NOK 2.310 million (NOK 2.262 million)
• Net commission and other income: NOK 858 million (NOK 782 million)
• Net income from financial investments: NOK 373 million (NOK 173 million)
• Operating costs: NOK 1.414 million (NOK 1.193 million)
• Impairments provisions on loans and financial liabilities: NOK 76 million (NOK
98 million)
• Lending growth last 12 months: 5.5 percent (5.9 percent)
• Deposit growth last 12 months: 5.0 percent (2.3 percent)
• Common Equity Tier 1 ratio: 18.63 percent
• Capital ratio: 23.47 percent
(Pro forma Q2 2024 in parentheses)

Stavanger, 7 August 2025

Contact persons:
Inge Reinertsen, Group CEO, tel. +47 909 95 033
Eirik B. Monsen, CFO, tel. +47 916 39 831
Morten Forgaard, Finance Director, tel. +47 916 21 425
Øyvind Knoph Askeland, Director of Communications, tel. +47 922 32 639

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

More information:
Access the news on Oslo Bors NewsWeb site

652241_SB1NO Quarterly report Q2 2025.pdf
652241_SB1NO Quarterly presentation Q2 2025.pdf