Sparebanken Møre

Investor Presentation • Oct 24, 2024

Presentation 3rd quarter 2024

1

Trond Lars Nydal CEO John Arne Winsnes CFO

24th October 2024 Ålesund

Today's review

Status as of the third quarter

Third quarter of 2024 - illustrated

News from our region and future prospects

Key figures per Q3 2024

Loans: 8.2 % Deposits: 5.5 % (Last 12 months)

Strong Net Interest Income

In NOK: 1,549 million In per cent: 2.09

Recoveries on loan losses In NOK: -1 million In per cent: 0,00 (loans and guarantees)

Strong profitability ROE: 14.0 %

Strong liquidity and solidity

Deposit-to-loan ratio: 56.9% LCR: 165 NSFR: 121 CET1: 17.3 % Leverage Ratio: 7.3 %

3

The bank delivers a solid result per Q3

Profit after taxes - in MNOK 420 489 535 715 835 Per Q3 2020 Per Q3 2021 Per Q 3 2022 Per Q 3 2023 Per Q 3 2024

Return On Equity

Result per equity certificate per Q3 2024 is NOK 7.92 (Group) against NOK 6.84 (Group) per Q3 2023

Increased revenues and low losses contribute to good profit development

Profit after tax per 30.09.2024 compared with 30.09.2023

5

3rd quarter 2024

A solid quarterly result

Total income

Total Income in the quarter

• NOK million

Total Income in the quarter - in per cent of Average Assets

Lending growth

Loans

0,000

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

• MNOK 6,533 in lending growth last 12 months (net lending)

Lending growth retail market - NOK billion and annual growth

Lending growth corporate market - NOK billion and annual growth

Lending growth in the last 12 months: MNOK 2,665

Deposits – retail market

• NOK billion and annual growth

Deposit growth in the last 12 months: MNOK 1,788

Deposits – corporate market

• NOK billion and annual growth

Deposits

Deposits

• Deposit growth in the last 12 months: MNOK 2,550

High deposit-to-loan ratio of 56.9 per cent

Other Income

Customer relateted other income - MNOK

Photo: Markets, Sparebanken Møre

Financial Instruments - MNOK

0,34

11

The largest asset management environment in the region

• Good return over time
• So far this year, the assets under management has increased by approx. NOK 1.2 billion

Strong growth in volume in recent years

Status at the end of the 3rd quarter (figures in NOK billion)

Expenses

Operating expenses in the quarter

• NOK million

41,4 42,2 42,5 39,2 39,7 2020 2021 2022 2023 Per Q3 2024 Cost/Income ratio - Annually

• Quarterly

Q3 2023Q4 2023Q1 2024Q2 2024Q3 2024

Operating expenses in the quarter

• in per cent of Average Assets

Losses and portfolio quality

Losses on loans and guarantees - NOK million

Losses on loans and guarantees

• in per cent of Average Assets

Credit-impaired commitments (net) - in per cent of loans and guarantees

-0,49

Reassuring Impairments

• NOK million

Corporate lending

• The bank has a stable share of exposure to the corporate sector
• There is good industry risk diversification
• Low level of risk in the portfolio
• Lending increased by NOK 200 million in the last quarter

Loans by sector

Sustainability is the engine of innovation

New terminal for Tyrholm & Farstad

• Approx. 25,000 containers per year
• Handles e.g. salted and dried codfish, frozen fish and ship equipment
• Area of 82,000 square meters

8.000 square meter solar panel Annual consumption for approx. 75 households

16

Exposure towards CRE

• Stable and well-diversified property portfolio
• 74 per cent of the portfolio within our county Møre and Romsdal, offices and hotel properties in Oslo make up 20 per cent
• 95 per cent of the portfolio is in the low and medium risk category

Geographical distribution

Risk classification

Good quality in our retail portfolio

• 95 per cent of the loans within 85 per cent LTV
• Good growth both in Møre og Romsdal and in Oslo
• Lending in Oslo has passed NOK 1 billion

• More than half of the loan applications are digital

• In per cent of total loans (LTV)

Loans to retail customers Loan-to-Value – retail loans

• Deviation from The Lending Regulation reported in Q3- 2024:

65.7

• o 8.7 % outside Oslo (flexibility quota 10 %)
• o 3.8 % in Oslo (flexibility quota 8 %)

• 96 % of mortgages are within 85 % of LTV

House price development

Based on pre-owned dwellings sold, Norwegian seasonal adjusted house prices increased by 0.4 per cent in September 2024.

Last 12 months Norwegian house prices increased in average by 4.1 per cent.

House prices in the county of Møre og Romsdal (M&R) and in the city of Ålesund increased with respectively 3.2 and 3.7 per cent.

We expect stronger percentage growth in house prices for the full year 2024.

Indexed development

• January 2015 = 100

Price per square meter

• January 2015 – September 2024

Key information on pre-owned dwellings sold in September 2024	Norway	Møre og Romsdal	Ålesund	City of Oslo
Seasonal adj. development last month	+0.4 %	+2.0 %	+1.1 %	+0.3 %
Development last 12 months	+4.1 %	+3.2 %	+3.7 %	+5.0 %
Development last 10 years	+56.6 %	+36.9 %	+42.9 %	+81.6 %
Per square meter (NOK)	54,461	31,498	37,941	96,410
Average number of days on market	46 days	61 days	62 days	25 days
Price median dwelling (NOK)	3,990,000	2,990,000	3,200,000	5,501,891

Good market access and financing

Strong rating and long-term financing

56,9 % • Deposit to loan ratio

43,2 bln.

• Net market financing

6,6 bln • Green fiunding

A1 • Moody's rating • Stable outlook

Aaa

• Covered Bonds

3,38 year • Remaining duration Covered Bonds

Møre Boligkreditt AS

• Møre Boligkreditt AS successfully came to the market with its inaugural EUR 500 million Benchmark Covered Bond Premium transaction in the third quarter, attracting new investor groups

21

Robust capital and good prospects

• The bank has a long-term target for CET1 capital which must at least be the sum of Pillar 1, Pillar 2 (P2R) and P2G
• Regulatory capital requirements have largely fallen into place in recent years, while adjustment in calibration of IRB Model for corporates have affected - and the implementation of CRR3 (planned from the turn of the year) will affect the bank`s RWA
• We expect an increase in the CET1 ratio following the introduction of CRR3. This is mainly due to the reduction of regulatory LGD for corporates where risk-weighted assets are calculated according to the basic IRB method. This, together with the elimination of the scaling factor, will more than offset the effect of the proposed mortgage floor
• The buffer to the regulatory CET1 requirement at the end of the quarter is 1.15 p.p. (2.40 p.p. excl. P2G), which gives the bank a robust capital position

CET1- status and requirements (per cent)

Changes in CET1 capital

3rd quarter isolated

19,1 18,7 17,6 17,3 0,2 0,2 1,1 0,3 0,2 0,2 30.06.2024 Increased RWA - Retail Increased RWA - the Standardised Approach Increased RWA - CorporateChange in Regulatory EL Acquistion of own ECs Results 30.09.2024 31.12.2023

Per 3rd quarter

MORG pricing

Total Return weaker than the EC index after Q1

Source: Macrobond

MORG – price and Price/Book (P/B) value*

• Equity, price and P/B

*Equity per MORG is calulated on Group figures. Figures for 2020-2021 stated before the split in 2022. 0,00 0,20 0,40 0,60 0,80 1,00 1,20 1,40 1,60 1,80 2,00

An active region

Optimism and positive prospects for our region Nordvestlandet

25

Source: Norges Banks regional network

Our investments and efforts contribute to growth

26

The bank contributes to creating growth and development

• Financing

• Available capital in the districts for corporates and retail customers
• The importance of the role of local and regional banks in local communities has been confirmed in many surveys in recent years

• The social role

• In 2023, the savings bank industry distributed more than NOK 4 billion to public/socially beneficial purposes*
• NOK 1 granted gives just over NOK 3 back to society*
• Is one of Norway's largest private contributors to sport, culture and volunteering
• Skilled workplaces
  • Adds knowledge and migration to the districts

The customers have spoken

The fact that Sparebanken Møre scores highly among both private and corporate customers also underlines the bank's ability to adapt its sustainability work to different customer segments.

This is a key factor in achieving long-term success in an economy where sustainability awareness is becoming increasingly important

Fredrik Høst, EPSI rating Norway

13 % increase among corporate customers who state that they have received information about sustainability from the bank. The banking industry average has an increase of 3 %

Targeted measures for conversion

Fiskeri	Reiseliv
	Lag og
	Varehandel

Good conditions for further growth and development

Renovation of the head office

• All the bank's sites are certified as an environmental lighthouse
• In 2023 we started planning the renovation of the head office
• The current state of the building cannot be adapted to modern banking without significant intervention
• Decision on potential start-up of the project will be made at the end of 2024

Innovation, science and entrepreneurship in a life-cycle perspective "Competence Ladder"

Dale Oen Inspire 2024

32

11,000 youths

Europe's largest research and technology conference for young people

Future prospects

International development and growth prospects

down Lower price pressure

• Internationally, price pressure continues to decrease
• At the same time, the economy in several countries is showing signs of slowing

• The development has led market participants to believe in a faster interest rate decline
• The central banks of several of our trading partners are well underway with interest rate cuts

• There is still uncertainty related to further economic development
• Interest rate expectations fluctuate widely from week to week and month to month
• At the same time, the geopolitical picture poses a persistent risk

Future prospects

Norway and our market area Nordvestlandet

• The decline in international interest rates has resulted in lower interest rate expectations
• However, a weak Norwegian krone limits the room for interest rate cuts
• The first cut is expected in the first quarter of next year
• There is still a large gap between developments in the various industries
• This also creates regional differences in our country

• Overall, no major signs of weakness in the Norwegian economy

• The level of activity in Møre and Romsdal is still relatively high

• Unemployment in the county fell to 1.6 per cent in September
• Parts of the business and industries are struggling with access to qualified labour

Long term financial targets

P2G

Dividend policy

• Sparebanken Møre aims to achieve financial results providing a good and stable return on the bank's equity capital
• Sparebanken Møre's profit allocation must ensure that all equity owners are guaranteed equal treatment
• If the solvency ratio does not indicate otherwise, the aim is that around 50 per cent of the year's profit overall can be distributed as dividends

35

Contact

sbm.no facebook.com/sbm.no @sbmno engasjert.sbm.no

CEO Trond Lars Nydal

+47 95 17 99 77 trond.nydal@sbm.no

Disclaimer

R

This presentation has been prepared solely for promotion purposes of Sparebanken Møre. The presentation is intended as general information and should not be construed as an offer to sell or issue financial instruments.

The presentation shall not be reproduced. redistributed. in whole or in part. without the consent and Sparebanken Møre. Sparebanken Møre assumes no liability for any direct or indirect losses or expenses arising from an understanding of and/or use of the presentation. of Sparebanken Møre.

CFO John Arne Winsnes

+47 46 28 09 99 jaw@sbm.no

Runar Sandanger Senior Economist SVP

+47 95 04 36 60 runar.sandanger@sbm.no

Attachments

Results in Q3 Key figures for Q3-24 and Q3-23

	In Q3 2024		In Q3 2023			Changes
Results (NOK million and %)	MNOK	%	MNOK	%	MNOK	p.p.	%
Net Interest Income	523	2.08	487	2.05	36	0.03	7.4
Gains/losses liquidity portfolio	3	0.01	15	0.07	-12	-0.06	-800
Gains/losses on shares	0	0.00	0	0.00	0	0.00	00
Net income Financial Instruments	20	0.08	8	0.03	12	0.05	150.0
Other Income	80	0.32	65	0.28	15	0.04	23.1
Total Other Income	103	0.41	88	0.38	15	0.03	15.9
Total Income	626	2.49	575	2.43	51	0.06	8.7
Salaries and wages	133	0.53	120	0.51	13	0.02	10.8
Other expenses	110	0.43	88	0.37	22	0.06	23.9
Total operating expenses	243	0.96	208	0.88	35	0.08	16.3
Profit before losses	383	1.53	367	1.55	16	-0.02	4.4
Losses on loans and guarantees	17	0.07	34	0.14	-17	-0.07	-50.0
Pre-tax profit	366	1.46	333	1.41	33	0.05	9.9
Taxes	86	0.35	80	0.34	6	0.01	7.5
Profit after tax	280	1.11	253	1.07	27	0.04	10.7
Return on equity (ROE) %	13.8		13.1			0.7
Cost/Income ratio	38.7		36.2			2.5
Profit per EC (NOK)	2.66		2.42			0.24	39

Results per Q3 Key figures in per Q3 2024 and 2023

	Per Q3 2024		Per Q3 2023		Changes
Results (NOK million and %)	MNOK	%	MNOK	%	MNOK	p.p.	%
Net Interest Income	1 549	2.09	1 394	1.99	155	0.10	11.1
Gains/losses liquidity portfolio	19	0.03	-1	0.00	20	0.03	-
Gains/losses on shares	2	0.00	6	0.01	-4	-0.01	-66.7
Net Income Financial Instruments	38	0.05	39	0.05	-1	0.00	-2.6
Other Income	204	0.27	180	0.26	24	0.01	13.3
Total Other Income	263	0.35	224	0.32	39	0.03	17.4
Total Income	1 812	2.44	1 618	2.31	194	0.13	12.0
Salaries and wages	394	0.53	347	0.50	47	0.03	13.5
Other expenses	326	0.44	270	0.38	56	0.06	20.7
Total operating expenses	720	0.97	617	0.88	103	0.09	16.7
Profit before losses	1 092	1.47	1 001	1.43	91	0.04	9.1
Losses on loans and guarantees	-1	0.00	64	0.09	-65	-0.09	-101.6
Pre-tax profit	1 093	1.47	937	1.34	156	0.13	16.6
Taxes	258	0.35	222	0.32	36	0.03	16.2
Profit after tax	835	1.12	715	1.02	120	0.10	16.8
Return on equity (ROE) %	14.0		12.5			1.5
Cost/Income ratio	39.7		38.1			1.6
Profit per EC (NOK)	7.92		6.84			1.08

Balance sheet and key figures

Key figures per Q3 2024 and Q3 2023

	30.09.24	30.09.23		Changes
Balance in NOK million			MNOK	%
Total Assets	106 889	94 675	12 214	12.9
Loans to customers	86 272	79 739	6 533	8.2
Deposits from customers	49 203	46 653	2 550	5.5
Net Equity and Subordinated Loans	8 286	8 119	167	2.1

Key Figures	30.09.24	30.09.23	Changes p.p.
Return on Equity	14.0	12.5	1.5
Cost/Income Ratio	39.7	38.1	1.6
Capital Adequacy Ratio	21.3	22.5	-1.2
Tier 1 Capital	19.2	19.9	-0.7
CET1	17.3	18.1	-0.8
Leverage Ratio	7.3	7.5	-0.2
Profit per EC (NOK, the Group)	7.92	6.84	1.08
Profit per EC (NOK, the bank)	7.90	7.27	0.63

Specification of other income

Per Q3 2024 and Q3 2023

(NOK million)	Per Q3 2024	Per Q3 2023	Changes y/y
Guarantee commission	19	20	-1
Income from the sale of insurance services (non-life/personal)	22	20	2
Income from the sale of shares in unit trusts/securities	11	12	-1
Income from Discretionary Portfolio Management	41	35	6
Income from payment transfers	73	70	3
Other fees and commission income	29	29	0
Commission income and income from banking services	195	186	9
Commission expenses and expenses from banking services	30	31	-1
Income from real estate brokerage	34	25	9
Other operating income	5	0	5
Total other operating income	39	25	14
Net commission and other operating income	204	180	24
Interest rate hedging (for customers)	13	12	1
Currency hedging (for customers)	23	22	1
Dividend received	7	1	6
Net gains/losses on shares	-5	6	-11
Net gains/losses on bonds	15	-1	16
Change in value of fixed-rate loans	2	4	-2
Change in value of issued bonds	5	0	5
Net gains/losses related to buy back of outstanding bonds	-1	0	-1
Net result from financial instruments	59	44	15
Total other income	263	224	39

Specification of expences

Per Q3 2024 and Q3 2023

(NOK million)	Q3 2024	Q3 2023	Changes y/y
Wages	283	251	32
Pension expenses	23	20	3
Employers' social security contribution and Financial activity tax	63	57	6
Other personnel expenses	25	19	6
Wages. salaries. etc.	394	347	47
Depreciations	40	37	3
Operating expenses own and rented premises	13	14	-1
Maintenance of fixed assets	5	6	-1
IT-expenses	170	123	47
Marketing expenses	32	32	0
Purchase of external services	24	21	3
Expenses related to postage. telephone. newspapers etc.	6	7	-1
Travel expenses	4	4	0
Capital tax	8	8	0
Other operating expenses	24	18	6
Total other operating expenses	286	233	53
Total operating expenses	720	617	103

Low level of creditimpaired commitments

Group figures

• in % of total commitments

Retail market

• in % of retail commitments

0,20	0,15	0,30	0,33	0,25
2020	2021	2022	2023	Q3-24

Corporate market - in % of corporate commitments

Corporate market (excl. Oil services/supply) - in % of corporate commitments

Credit-impaired commitments

• The overview shows nonperforming commitments in default above 90 days and other credit-impaired commitments

• in NOK million - in % of commitments

Total credit-impaired commitments Total credit-impaired commitments

Corporate Retail

3,27 3,12

Corporate Retail Total

Losses by sector Losses on loans and guarantees

• NOK million

Expected credit losses Expected credit losses Expected credit losses

- in NOK million - in % of commitments

• NOK million - In % of Average Assets

Recognized losses Losses on loans and guarantees Losses on loans and guarantees

2020 2021 2022 2023 Q3-23 Q3-24

EC capital in Sparebanken Møre

The largest owners (1-10) of EC capital

EC holder	Number	of ECs
	30.09.24	30.06.24
Sparebankstiftelsen Tingvoll	4,830,361	4,880,476
Verdipapirfondet Eika egenkapital	2,447,968	2,447,968
Spesialfondet Borea Utbytte	2,336,633	2,337,046
Wenaasgruppen	2,200,000	2,100,000
Pareto Aksje Norge	2,011,332	2,012,332
MP Pensjon	1,798,905	1,798,905
J. P. Morgan SE (nominee)	1,691,257	0
Kommunal Landspensjonskasse	1,642,107	1,642,107
Wenaas EFTF AS	1,100,000	1,100,000
Fondsfinans utbytte	800,000	800,000
Total 10 largest	20,858,563	19,118,834
Of which Møre og Romsdal	8,130,361	8,080,476
Of which Møre og Romsdal in per cent	39.0	42.3

EC capital in Sparebanken Møre

The largest owners (11-20) of EC capital

EC-holder		Number of ECs
	30.09.24	30.06.24
Beka Holding AS	750,500	750,500
Lapas AS	627,000	627,000
BKK Pensjonskasse	470,888	470,888
Forsvarets personellservice	459,000	459,000
Hjellegjerde Invest AS	300,000	300,000
U Aandahls EFT AS	250,000	250,000
PIBCO AS	229,500	229,500
Kveval AS	218,124	253,124
Borghild Hanna Møller	201,834	201,967
Caceis Bank (nominee)	157,437	0
Total 20 largest	24,522,846	22,660,813
Of which Møre og Romsdal	9,738,695	9,668,810
Of which Møre og Romsdal in %	39.7	42.7