Increased synergy estimates following a solid quarter

30 Oct 2025 07:00 CET

SpareBank 1 Sør-Norge is increasing its estimated synergy effects after
delivering good cost control and a solid result in the third quarter.

In Q3 2025, SpareBank 1 Sør-Norge reported a pre-tax profit of NOK 2.120
million. Compared to the same quarter in 2024, operating profit before tax
increased by NOK 280 million, adjusted for special items. The improvement was
driven by higher net interest income, net commissions and other income, net
income from financial investments, and lower impairments.

Return on equity after tax was 13.0% for the quarter, and 14.5% when adjusted
for goodwill from the merger and merger-related costs.

SpareBank 1 Sør-Norge was established on 1 October 2024. Over the past year, the
Group has completed legal and technical mergers of the parent bank and
subsidiaries. The integration has progressed according to plan and within the
defined cost framework.

As a result of the successful merger between SpareBank 1 SR-Bank and SpareBank 1
Sørøst-Norge, the Group is raising its estimate for annual synergy effects.
Total annual synergies are now estimated at NOK 450 million, up from NOK 300
million, starting in 2027.

The Group is also changing its dividend policy. From distributing approximately
50 percent of annual profits, SpareBank 1 Sør-Norge's new dividend policy is to
distribute a minimum of 50 percent in cash dividends, in addition to the
established share buyback program.

“We are seeing the positive impact of last year’s merger, which allows us to
increase our estimates. The integration has delivered the intended effect:
making us more efficient and competitive in the market,” says Inge Reinertsen,
CEO of SpareBank 1 Sør-Norge.

Operating expenses for the third quarter reflect this progress, with costs in
the parent bank remaining nearly unchanged, increasing by only NOK 2 million,
adjusted for special items, compared to the same period last year. Total
operating expenses in Q3 were NOK 1.314 million, compared to NOK 1.268 million
last year. The increase is mainly due to higher activity in EiendomsMegler 1 and
the acquisitions of Ullevål Eiendomsmegling and Kaland & Partners.

Growth continued in the Retail Market during the third quarter. The division
delivered a 12-month growth rate of 6.2%, well above market credit growth. High
activity in the housing market, particularly in Vestland, Rogaland, and Agder,
contributed to this.

Net interest income ended at NOK 2.328 million, an increase of NOK 20 million
from Q3 2024, primarily driven by growth in lending and deposits.

Among businesses, there are signs of lower investment appetite, and competition
in the corporate market remains strong. Combined 12-month growth in loans for
SME and Agriculture and Corporate Market was 0.9%. However, SpareBank 1
Sør-Norge’s business survey for the next 12 months indicates rising optimism.
Companies expect higher turnover, larger order backlogs, and to expand their
workforce. Optimism is strongest in Rogaland, followed by Vestland and Buskerud
among the counties measured in South Norway.

“These are encouraging signs for business development in the coming year. We are
ready to support companies in their plans and take our share of the growth,”
says Inge Reinertsen.

Key figures for Q3 2025

• Pre-tax profit: NOK 2.120 million (NOK 2.312 million)
• Profit after tax: NOK 1.697 million (NOK 1.959 million)
• Return on equity after tax: 13,0% (16,9%)
• Return on equity after tax adjusted for goodwill from merger and merger costs:
14,5% (17,5%)
• Earnings per share: NOK 4,29 (NOK 4,99)
• Net interest income: NOK 2.328 million (NOK 2.308 million)
• Net commission and other income: NOK 778 million (NOK 694 million)
• Net income from financial investments: NOK 443 million (NOK 743 million)
• Operating expences: NOK 1.314 million (NOK 1.268 million)
• Impairment on loans and financial liabilities: NOK 115 million (NOK 166
million)
• Growth in loans over last 12 months incl. transfers to credit institutions:
4,4% (6,1%)
• Growth in deposits over last 12 months: 9,7% (-1,4%)
• Common Equity Tier 1 ratio: 18.51%
• Capital ratio: 23.19%
(Pro forma Q3 2024 in parentheses)

Stavanger, 30 October 2025.

Contacts:

Inge Reinertsen, CEO, +47 909 95 033
Eirik B. Monsen, CFO, +47 916 39 831
Morten Forgaard, Finance Director, +47 916 21 425
Øyvind Knoph Askeland, Director of Communications, +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

658253_SB1NO Quarterly presentation Q3 2025.pdf
658253_SB1NO Quarterly report Q3 2025.pdf