1Q

2023

SpareBank 1 Østlandet

NEWSLETTER

Institutional investors and analysts

Highlights

  • Very strong return on equity: 13.9 %. Strong development in core banking operations as main contributor, particularly from higher net interest income.
  • Solid growth in net interest income (including commission income from transferred loans): Up 36.9 % y/y (11.0 % q/q), from repricing and volume growth. Lending growth of 7.0 % y/y (0.8 % q/q) and deposit growth of 6.9 % y/y (1.6 % q/q).
  • Net commission income (excl. transferred loans): Down by 2.9 % y/y (down 8.8 % q/q), due primarily to the reorganization of accounting operations in 3Q. Good underlying development in commission income, with a strong sales effort.
  • Net financials: Positive contribution of NOK 102 mill.. Ownership contributions of NOK 59 mill., dividends of 17 mill. and positive net contribution from other financial items of NOK 25 mill.
  • Operating expenses: Up 5.1 % y/y (2.3 % q/q), due particularly to higher FTEs in parent bank, wage growth, and underlying inflation developments.
  • Loan losses: Impairment charges of NOK 49 mill., of which NOK 30 mill. were model-based provisions.
  • Capital adequacy: CET-1ratio of 17.7 % (as in 4Q-22). Effects of positive results counterweighed by negative effects from basis swaps and higher risk-weighted assets.
  • ESG: MSCI upgraded the bank's ESG rating from AA to AAA, the highest rating possible.

Investor relations

Geir-Egil Bolstad

CFO

+47 918 82 071 geir-egil.bolstad@sb1ostlandet.no

Please contact us for conference calls or other enquiries.

Financial performance in 1Q 2023

  • ROE 13.9 % (vs. long term target ≥ 12 %)
  • Dividend of NOK 6.80/ECC for 2022 paid in April (equiv. to 60 % payout ratio)
  • CET-1of 17.7 % (vs. target of regulatory requirement + 100 bps., equiv. to 16.8% in 1Q-23)
  • Cost growth in parent bank +9.3 % (vs. target of maximum 5 %)

Presentation and resources

Published accounts and presentation 1Q-2023

Oslo Stock Exchange - Company Announcement

Bjørn-Erik Orskaug

Investor relations

+47 922 39 185 bjorn-erik.orskaug@sb1ostlandet.no

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Disclaimer

Sparebank 1 Østlandet published this content on 08 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 May 2023 08:20:08 UTC.