SpareBank 1 SMN: Supervisory Review and Evaluation Process (SREP) 2025

24 Nov 2025 07:00 CET

The Financial Supervisory Authority of Norway ("the FSA") regularly carries out
a Supervisory Review and Evaluation Process ("SREP"), where they evaluate the
risks and capital needs of SpareBank 1 SMN. The SREP includes a decision
regarding the Pillar 2 Requirement (P2R) and the Pillar 2 Guidance (P2G), which
comes in addition to the Pillar 1 minimum requirements and the combined buffer
requirements. SpareBank 1 SMN has received this year's decision from the FSA,
which will apply from 31. December 2025.

This year’s Pillar 2 Requirement amounts to 1.6 % of the group’s risk weighted
assets, an reduction of 0,1 percentage points from the current decision from the
FSA. At least 56.25 % of the requirement shall be met with common equity tier 1
(CET1) capital, while 75 % must be met with tier 1 capital. In addition, the
Financial Supervisory Authority maintains a requirement that the group must also
hold a temporary capital add-on under Pillar 2 related to model risk, equivalent
to 0.7 % of the calculation base in Pillar 1. This requirement will remain in
effect until revised models are approved and implemented.

Further, the FSA has decided to reduce the Pillar 2 Guidance (P2G) from 1.25 %
to 1.00 % of the group’s risk weighted assets.

In addition, as part of this year's SREP process, the FSA has decided that
SpareBank 1 SMN, on a consolidated and non-consolidated level, shall at all
times have an LCR in foreign currency of at least 100 % as long as the currency
is significant. As long as at least one foreign currency is significant, a
minimum requirement for LCR in NOK of at least 50 % applies.

Trondheim, 24 November 2025

Contacts:
CFO Trond Søraas, tel. +47 922 36 803
CRO Ola Neråsen, tel. +47 918 09 722

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

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