SpareBank 1 Østlandet : First quarter preentation

1Q

Quarterly presentation

First quarter 2024

1Q: Strong start to 2024

• Record high earnings. Return on equity of 17.4 %, due to solid development in core banking operations.
• Good development in net interest income, driven by repricing and volume growth. Somewhat more moderate loan growth in a market characterized by strong competition and lower demand
• Cost growth of 13.1 % is higher than wanted, although some of it is driven by merger costs, inclusion of Siffer, and customer-focused initiatives.
• Moderate impairment charges, at 33 NOK mill. Good underlying development in the credit quality of the portfolio.
• The bank distributed dividends to owners and customers in April. A payout ratio of 60% reflects a flexible dividend policy and a focus on capital efficiency.

Return on equity (%)

Earnings/ECC Loan growthNIM

5.03	4.8 %	2.27 %
NOK
Cost/income	Loss provisions	CET-1
37.3 %	33 NOK	17. %
• 4,8	• 37,3 %	• 17,0 %
	mill.

2

Financial targets

And achievements year-to-date.

> 12 %

~ 50 %

16.1 %

Profitability

Dividends

Solidity

Achievements year-to-date

17.4 %

60 %

17.0 %

3

The bank's work on social responsibility spans widely

Gifts, sponsorships

Sparebankstiftelsen Hedmark

Customer dividends

4

Large distributions from the bank to the community

Dividends to owners of SPOL*		Dividends to Sparebankstiftelsen Hedmark*		Customer dividends

* Payments made the following year.

5

Macroeconomic backdrop is challenging

But the rise in bankruptcies and unemployment has been moderate.

Norges Banks regional indicators	Number of bankruptcies, year-to-date (wk 18 each year), market area

Unemployment (registered), %

Source: Norges B k' R g

w k

6

Slowing credit growth

But activity in the housing market has significantly improved, especially in the capital region. The market balance appears to be improving, with fewer unsold homes and sales prices closer to asking prices.

Credit growth	Existing home sales (no. of homes), monthly, market area

Unsold homes (std. deviations) and sales prices vs asking prices (%), market area

7

A market strategy for all of Eastern Norway

Eastern Norway stretches in all directions - several opportunities for further growth.

8

Retail market: Strong competition

Somewhat more moderate growth in a market characterized by strong competition. We defend our strong market share in the Inland region, and we experience good growth in the capital region.

Loan volume and growth (NOK bill. and %)*

Deposit volume and growth (NOK bill. and %)

Margins, parent bank (%)**

4

R

g

w

R

g

w

g

g

g

* Includes loans transferred to the covered bond companies. ** Based on allocation of customer loans between retail and corporate divisions.

9

Corporate market: Lower market growth

Signs of stronger competition, also in the business segment. At the same time, activity in the project market seems to be improving, including for new homes.

Loan volume and growth (NOK bill. and %)*

Deposit volume and growth (NOK bill. and %)

Margins, parent bank (%)**

4

g

w

g

w

g

g

g

* Includes loans transferred to the covered bond companies. ** Based on allocation of customer loans between retail and corporate divisions.

10