Solid quarter with growth and positive cost development

07 May 2026 07:00 CEST

In the first quarter of 2026, SpareBank 1 Sør-Norge ASA delivered a profit of
NOK 2,005 million before tax. Return on equity after tax was 11.8 percent.

The group’s profit in the first quarter was characterized by good cost control
and positive effects from the merger and the establishment of SpareBank 1
Sør-Norge. While operating expenses amounted to NOK 1,282 million, unchanged
compared with the corresponding period in 2025, the group is ahead of plan in
reducing headcount (FTEs). The group’s target is to reduce headcount by 150 FTEs
by year-end 2026. At the end of the first quarter, SpareBank 1 Sør-Norge had
realized 90 of these reductions.

"We are seeing significant effects from the changes underway in the group. At
the same time, while it demands a lot from the organization, we continue to
deliver solid results. The measures we are taking will make SpareBank 1
Sør-Norge an even more efficient, flexible and decisive financial group,
strengthening our competitiveness", says Inge Reinertsen, CEO of SpareBank 1
Sør-Norge.

The group recorded quarterly lending growth of 1.3 percent, of which 0.9 percent
was in the Retail Market and 1.9 percent in the Corporate Market.

"Despite the fact that companies have, over time, been cautious about making
major investments, our corporate lending portfolio increased significantly
compared with the previous quarter. Our corporate customers are performing well
and are optimistic about their own activity and results going forward. At the
same time, a turbulent world and uncertain framework conditions are contributing
to continued low investment appetite", says Inge Reinertsen.

Intense competition in the market and strong margin pressure contributed to a
decline in net interest income in the first quarter. Net interest income
amounted to NOK 2,180 million, down from NOK 2,310 million in the same quarter
last year.

In the first quarter, the group’s impairment losses on loans and financial
liabilities amounted to NOK 59 million, up from the corresponding period in
2025. Overall strong quality in the Bank’s portfolio meant that impairments
remained at a low level.

Net commission and other income amounted to NOK 799 million in the first
quarter, up from NOK 787 million in the first quarter of 2025. The increase was
driven by higher commissions from insurance and high activity at EiendomsMegler
1 Sør-Norge, which announced towards the end of the quarter that it is acquiring
Panorama Eiendomsmegling AS. The acquisition is a strategic step to further
strengthen the group’s position in the Oslo area, where EiendomsMegler 1
Sør-Norge now has 50 real estate agents.

SpareBank 1 Sør-Norge’s successful share buy-back programme was completed in the
first quarter. The purpose of the buy-back programme is to optimise the
company’s capital structure by reducing the Common Equity Tier 1 (CET1) ratio by
just under 0.4 percentage points.

Key figures for Q1 2026
• Pre-tax profit: NOK 2,005 million (NOK 2,186 million)
• Profit after tax: NOK 1,600 million (NOK 1,737 million)
• Return on equity: 11.8 percent (13.5 percent)
• Return on equity adjusted for goodwill from merger: 12.7 percent (14.7
percent)
• Earnings per share: NOK 4.08
• Net interest income: NOK 2,180 million (NOK 2,310 million)
• Net commission and other income: NOK 799 million (NOK 787 million)
• Net income from financial investments: NOK 368 million (NOK 394 million)
• Operating expenses: NOK 1,282 million (NOK 1,282 million)
• Impairment losses on loans and financial liabilities: NOK 59 million (NOK 23
million)
• Growth in loans included transfers to credit institutions over last 12 months:
3.7 percent
• Growth in deposit over the last 12 months: 14.0 percent
• Common Equity Tier 1 (CET1) capital ratio: 17.67 percent
• Total capital ratio: 22.08 percent
(Figures for Q1 2025 in parentheses)

Stavanger, 7 May 2026.

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

672599_SB1NO Quarterly Presentation Q1 2026.pdf
672599_SB1NO Quarterly Report Q1 2026.pdf