Solid annual and quarterly results in turbulent times

12 Feb 2026 07:00 CET

SpareBank 1 Sør-Norge ASA delivered a profit of NOK 1,993 million before tax in
the fourth quarter of 2025. Return on equity after tax was 11.9 percent for the
quarter.

The Group’s preliminary annual profit amounted to NOK 8,349 million before tax,
up from NOK 7,957 million in 2024 (proforma). Return on equity after tax in 2025
was 12.8 percent.

“Throughout 2025, SpareBank 1 Sør-Norge has achieved strong financial results
and maintained good customer relationships during a demanding period. Going
forward we will be implementing measures that will make us even more
competitive. We will become more efficient, flexible, and decisive, enabling us
to continue delivering high‑quality products, services, and results for the
benefit of our customers, owners, and local communities,” says CEO Inge
Reinertsen.

Following a strong result for 2025, the Board of Directors of SpareBank 1
Sør-Norge ASA proposes increasing the cash dividend for the year to NOK 12.0 per
share, up from NOK 8.5 for 2024.

The cash dividend comes in addition to the Group’s share buyback program,
announced in November. The formal dividend decision will be made at the
company’s Annual General Meeting on 23 April 2026. Upon approval, the seven
savings bank foundations, collectively holding approximately 45 percent of the
Group, will receive NOK 2,025 million in dividends for 2025.

The target for cost synergies related to the merger and the establishment of
SpareBank 1 Sør-Norge is raised to NOK 550 million annually, up from NOK 450
million. This is linked to changes in Group management and the organization, as
announced Tuesday, 10 February. The Group had previously set a target to reduce
headcount by 100 full-time equivalents (FTEs) by the end of 2026. As a result of
the organizational changes, this target is being increased to 150 FTEs.

Growth in net interest income contributed to a stronger result in the fourth
quarter 2025, compared with the same quarter in 2024. Net interest income was
NOK 2,323 million, up from NOK 2,293 million. Twelve‑month growth in the Retail
Market segment was 6.0 percent, exceeding market growth in Norway and
contributing to increased net interest income.

Net commissions and other income amounted to NOK 818 million in the fourth
quarter; an increase of 4 percent compared with the same quarter in 2024. This
was mainly driven by higher commission income from insurance and real estate
brokerage activities.

The Group recognized NOK 137 million in loan losses and write-downs on financial
liabilities in the fourth quarter, up from NOK 90 million in the same period of
2024. The increase is related to exposures in the corporate market.

“The majority of businesses in South Norway expect to hire more employees,
strengthen order backlogs, and maintain solid profitability this year. Companies
anticipate growth, although we experience some holding back on investments. We
are therefore working closely with our corporate customers to facilitate the
realization of their growth and investment plans in 2026,” says Reinertsen.

The Group’s operating expenses were NOK 1,330 million in the quarter, down from
NOK 1,376 million in the fourth quarter of 2024. SpareBank 1 Sør-Norge continues
to work actively on efficiency improvements and cost reductions. The cost/income
ratio was 38.4 percent, compared with 42.9 percent in the same period of 2024.

Key Figures for Q4 2025

• Pre-tax profit: NOK 1,993 million (1,741 million)
• Profit after tax: NOK 1,591 million (1,390 million)
• Return on equity: 11.9% (10.9%)
• Return on equity adjusted for goodwill from merger: 12.8% (12.3%)
• Earnings per share: NOK 4.1
• Net interest income: NOK 2,323 million (2,293 million)
• Net commissions and other income: NOK 818 million (789 million)
• Net income on financial investments: NOK 319 million (125 million)
• Operating expenses: NOK 1,330 million (1,376 million)
• Impairment losses on loans and financial commitments: NOK 137 million (90
million)
(2024 Q4 figures in parentheses)

Key Figures for 2025

• Pre-tax profit: NOK 8,349 million (7,957 million)
• Profit after tax: NOK 6,694 million (6,439 million)
• Return on equity: 12.8% (13.4%)
• Return on equity adjusted for goodwill from merger: 14.1%
• Earnings per share: NOK 17.0
• Net interest income: NOK 9,271 million (9,119 million)
• Net commissions and other income: NOK 3,241 million (2,941 million)
• Net income on financial investments: NOK 1,528 million (1,307 million)
• Operating expenses: NOK 5,340 million (4,997 million)
• Impairment losses on loans and financial commitments: NOK 352 million (412
million)
• Growth in loans incl. transfers to credit institutions over last 12 months:
3.3%
• Growth in deposits over last 12 months: 13.3%
• Common equity Tier 1 capital ratio: 17.57%
• Capital ratio: 21.99%
(Proforma figures for 2024 in parentheses)

Stavanger, 12 February 2026.

Contacts:
Inge Reinertsen, CEO, +47 909 95 033
Eirik Børve Monsen, CFO, +47 916 39 831
Morten Forgaard, Director of Finance, +47 916 21 425
Øyvind Knoph Askeland, Director of Communications, +47 922 32 639

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

More information:
Access the news on Oslo Bors NewsWeb site

665474_SB1NO Quarterly presentation Q4 2025.pdf
665474_SB1NO Quarterly report Q4 2025.pdf