Q1 2025

Sparebanken Sør

Serie 1

Serie 2

Net interest income totaled NOK  800  million in Q1 2025, compared with NOK  824  million in Q1 2024, an decrease of NOK  25  million. Net interest income decreased from Q4 2024 by NOK  29  million.

Net commission income totaled NOK  98  million in Q1 2025, compared with NOK  85  million in Q1 2024, an increase of NOK  13  million.

Operating expenses totaled NOK  393  million in Q1 2025, compared with NOK  330 million in Q1 2024, an increase of NOK  63  million.

Over the past 12 months net loans increased from NOK  128.9  billion to NOK  134.9  billion, representing a growth of NOK  6.0  billion and  4.7  percent. Growth in lending in Q1 2025 was NOK  1.4  billion, representing an annualised growth of  4.3  percent. The Bank is well-positioned for further profitable growth. 

Over the past 12 months, customer deposits including accrued interest have increased from NOK  70.5  billion to NOK  74.4  billion, a growth of NOK  3.9  billion and  5.5  percent. Annualised deposit growth in Q1 2025 amounted to  1.1  percent. 

ROE provides relevant information on Sparebanken Sør’s profitability by measuring the ability to generate profits from the shareholders’ investments. ROE is one of the Group’s most important financial APMs and and is calculated as follows: Profit after tax for the period (adjusted for interest on hybrid capital) divided by average equity (adjusted for hybrid capital). Average equity is calculated during quarters as (opening balance - closing balance)/2. At year-end, average equity is calculated as the average of the previous quarter’s average equity.

Return on equity adjusted for merger costs (ROE adjusted )

ROE provides relevant information about the Group's profitability by measuring its ability to generate returns from the shareholders' investment. In 2025, in connection with the upcoming merger with SPV, significant additional costs beyond ordinary operations will be incurred. The Bank therefore presents return on equity excluding merger costs in addition to the ordinary return on equity. It is calculated as: Profit after tax for the period (adjusted for interest on hybrid capital and merger costs), divided by average equity (adjusted for hybrid capital). Average equity is calculated quarterly as (opening balance – closing balance) / 2. At year-end, the average equity is calculated as the average of the preceding quarters' average equity.

Book equity per equity certificate (including dividend)

This key figure provides information on the value of book equity per equity certificate. This enables the reader to assess the reasonableness of the market price of the equity certificate. Book equity per equity certificate is calculated as the equity certificate holders’ share of the equity (excluding hybrid capital) at the end of the period divided by the total number of outstanding certificates.

Profit / diluted earnings per equity certificate

This key figure provides information on the profit/diluted earnings per equity certificate in the period. Profit per equity certificate is calculated by multiplying profit after tax by the equity certificate ratio, divided by the number of equity certificates issued. Diluted earnings per equity certificate are calculated by multiplying majority interests by the equity certificate ratio, divided by the number of equity certificates issued.

Growth in lending over the last 12 months is a performance measure that provides information on the level of activity and growth in the Bank’s lending business. The Bank uses Sparebanken Sør Boligkreditt (SSBK) as a source of funding, and this key figure includes loans transferred to SSBK since this better reflects the relevant comparable level of growth. Lending growth is calculated as gross loans incl. loans transferred to SSBK at period-end minus gross loans incl. loans transferred to SSBK as at the same date in the previous year, divided by gross loans incl. loans transferred to SSBK as at the same date.

Growth in deposits over the last 12 months provides information on the level of activity and growth in the Bank’s financing of lending activities that is not established in the financial market. Deposit growth is calculated as total deposits at period-end minus total deposits at the same date in the previous year, divided by total deposits at the same date in the previous year.

Cost/income ratio (Expenses as % of income)

This ratio is included to provide information on the correlation between income and expenses and is considered to be one of Sparebanken Sør’s most important performance measures. It is calculated as total operating expenses divided by total income.

Cost/income ratio adjusted for merger costs (Expenses ex merger cost as % of income)

Provides Information on the Relationship Between Income and Expenses Adjusted for Incurred Merger Costs

This is considered one of Sparebanken Sør’s key performance indicators. It is calculated as total operating expenses minus incurred merger costs, divided by total income.

This measure is used to compare the company’s current market price to its book value. It is frequently used to compare banks and is calculated as Sparebanken Sør’s closing equity certificate price at the end of the period

divided by the book value per equity certificate.

Losses on loans as % of net loans (annualised)

This key figure indicates losses on loans as a percentage of net loans. It is calculated as losses on loans (including losses on loans transferred to SSBK) divided by net loans (including loans transferred to SSBK) at period end. Where information is disclosed on loan-loss ratios for periods shorter than one year, the ratios are annualised.

Gross non-performing loans (over 90 days) as % of gross loans

This ratio provides relevant information on the Bank’s credit exposure. It is calculated as total non-performing exposure (over 90 days) divided by total loans, including loans transferred to SSBK, at period-end.

Measures the group’s average margin on loans, calculated as an average lending rate in the period less average 3-month NIBOR for the period. The average lending rate is calculated as interest income from loans to customers divided by average loans to customers in the period.

Measures the group’s average margin on deposits, calculated as the average 3-month NIBOR in the period less average deposit rate in the period. The average deposit rate is calculated as an interest expense on customer deposits divided by average deposits from customers in the period.

Return on equity, excl. merge-related expenses

Cost-income ratio, excl. merge-related expenses

Bar graph with upward trend with solid fill

NOK million	Q1 2025	Q1 2024	31.12. 2024
Income statement
Net interest income	800	824	3 315
Net commission income	98	85	424
Net income from financial instruments	22	39	28
Income from associated companies	27	5	128
Other operating income	2	3	18
Total net income	948	956	3 913
Total operating expenses before losses	393	330	1 380
Operating profit before losses	555	626	2 532
Losses on loans. guarantees and unused credit	10	6	75
Profit before taxes	545	620	2 457
Tax expenses	16	47	468
Profit for the period	529	573	1 989
Key figures. income statement
Return on equity after tax (adjusted for hybrid capital)	12.8 %	14.4 %	12.1 %
Costs as % of income	41.5 %	34.5 %	35.3 %
Costs as % of income. excl. net income from financial instruments	42.5 %	36.0 %	35.5 %
Net interest income as % of average assets	1.78 %	2.07 %	1.97 %
Key figures. balance sheet
Total assets	181 364	161 902	176 509
Average total assets	182 300	160 000	168 000
Net loans to customers	134 874	128 869	133 441
Growth in loans as % last 12 mths.	4.7 %	3.5 %	4.6 %
Customer deposits	74 422	70 527	74 216
Growth in loans as % last 12 mths.	5.5 %	5.5 %	7.1 %
Deposits as % of net loans	55.2 %	54.7 %	55.6 %
Equity (incl. hybrid capital)	17 299	16 862	18 040
Losses on loans as % of net loans. Annualised	0.03 %	0.02 %	0.06 %
Other key figures
Liquidity reserve (LCR) Group	178 %	150 %	199 %
Liquidity reserve (LCR) Group- Euro	206 %	239 %	471 %
Liquidity reserve (LCR) Parent Bank	161 %	134 %	162 %
Common equity tier 1 capital ratio	16.1 %	16.6 %	16.4 %
Tier 1 capital ratio	17.9 %	18.6 %	18.3 %
Total capital ratio	20.4 %	20.7 %	20.7 %
Total common equity tier 1 capital ratio	14 712	14 428	14 739
Tier 1 capital ratio	16 420	16 110	16 447
Net subordinated capital	18 647	17 967	18 674
Leverage ratio	8.7 %	9.3 %	9.1 %
Number of branches	30	31	30
Number of FTEs in banking operations	534	511	535
Key figures. equity certificates
Equity certificate ratio. weighted average over the period	40.0 %	40.0 %	40.0 %
Number of equity certificates issued	41 703 057	41 703 057	41 703 057
Profit/diluted earnings per equity certificate (Parent bank)	3.9	4.6	8.2
Profit/diluted earnings per equity certificate (Group)	4.9	5.3	18.2
Proposed dividend last year per equity certificate	12.2	10.0	12.2
Paid out dividend last year per equity certificate	-		10.0
Book equity per equity certificate	150.7	145.2	157.8
Price/book equity per equity certificate	1.31	0.96	1.25
Listed price on Oslo Stock Exchange at end of period	197.0	139.0	197.9

Q1 2025Unaudited

Key figures Group