Sparebanken Møre

Quarterly Report • Jan 30, 2025

Presentation

4th quarter 2024 Prelimenary annual accounts 2024

1

Trond Lars Nydal CEO

John Arne Winsnes CFO

30th January 2025 Ålesund

Today's review

Status as of the fourth quarter

Fourth quarter of 2024 - illustrated

Looking forward

Key figures per Q4 2024

Deposits: 4.5 % (Last 12 months)

Strong Net Interest Income

In NOK: 2,071 million In per cent: 2.08

Low loan losses

In NOK: 20 million In per cent: 0.02 (loans and guarantees)

Strong Efficiency C/I: 39.8 %

Strong liquidity and solidity

Deposit-to-loan ratio: 56.9% LCR: 167 NSFR: 122 CET1: 17.2 % Leverage Ratio: 7.4 %

3

A solid annual result

Profit after taxes - in MNOK

Return On Equity

Result per equity certificate in 2024 is NOK 9.95 (Group) against NOK 10.12 (Group) in 2023

Increased revenues and low losses contribute to good profit development

Profit after tax compared with 2023

5

Convertion and correction order affect the ownership fraction

• (1) In connection with the establishment of the foundation Sparebankstiftelsen Sparebanken Møre, the EC capital was increased on 4 December 2024 by a nominal value of NOK 7,215,000 by converting primary capital to EC capital. The equity certificates that were issued upon convertion have been transferred to the foundation
• (2) The Financial Supervisory Authority's order for correction means that NOK 132.4 million of the 2024 profit will be transferred to the primary capital before the profit is allocated in the ordinary manner according to the new ownership fraction. In addition to the changed fraction, the correction means an increase in CET1 capital by approximately 0.32 p.p.

Change in ownership fraction

6

Solid annual result benefits the region

• The order for correction from the Norwegian FSA implies that NOK 132.4 million from the 2024 result will be added to the bank`s primary capital before allocation
• Result in the parent bank allocated to equity owners after correction amounts to NOK 850 million
• The ownership fraction when allocating the result is based on the average ownership fraction through 2024. This is somewhat lower (48.4%) than as of 31.12.2024
• Based on the bank's dividend policy, the preliminary annual result for 2024 and the solid capital situation, the Board of Directors is planning to propose to the General Meeting a cash dividend of NOK 6.25 per equity certificate, a total of NOK 311 million. The corresponding provision for dividend funds for local communities will amount to NOK 332 million
• The dividend share constitutes 72.2% of the Group's profit allocated to equity owners after correction

Proposal of allocation of result for 2024 (Parent bank)

4th quarter 2024

A solid quarterly result

Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024

Total income

Total Income in the quarter

• NOK million

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

Lending growth

Loans

• MNOK 5,303 in lending growth last 12 months (net lending)

0,250

Lending growth retail market - NOK billion and annual growth

Lending growth corporate market - NOK billion and annual growth

0,000

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

Deposits – retail market

• NOK billion and annual growth

Deposit growth in the last 12 months: MNOK 923

Deposits – corporate market - NOK billion and annual growth

Deposits

Deposits

• Deposit growth in the last 12 months: MNOK 2,140

High deposit-to-loan ratio of 56.9 per cent

Other Income

Customer relateted other income - MNOK

Financial Instruments - MNOK

0,34

0,38

13

Expenses

Q4 2023Q1 2024Q2 2024Q3 2024Q4 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

Loans by sector

• 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
• Less customers applying for installment deferral
• Increased level of interest rate hedging
• Lending reduced by NOK 200 million in the last quarter

Other – 10.2 % (9.5%) includes: Financial services 1.5 % (1.0 %) Retail/ wholesale trade 1.7 % (1.5 %) Other Industry 2.4 % (3.0 %) Agriculture 0.9 % (0.9 %) Building and Construction 1.6 % (1.4 %) Other 1.9 % (1.6 %) Ship Yards 0.2 % (0.1 %) (comparable figures for Q4 2023 in brackets) Retail 66,4 % Fisheries 5,7 % Supply/Offshore 1,5 % Services 5,0 % CRE 11,2 % Other 10,2 % (65,7 %) (2,0 %) (5,6 %) (11,1 %) (6,1 %) (9,5 %)

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
• 93 per cent of the portfolio is in the low and medium risk category

Risk classification

Good quality in our retail portfolio

• 95 per cent of the loans within 85 per cent LTV
• Reduction in number of installment deferalls and less need for counselling
• Low losses
• The unemployment rate is low

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

• Deviation from The Lending Regulation reported in Q4- 2024:

66.4

• o 7.4 % outside Oslo (flexibility quota 10 %)
• o 5.9 % in Oslo (flexibility quota 8 %)

• 95 % of mortgages are within 85 % of LTV

House price development Price per square meter

Based on pre-owned dwellings sold, Norwegian seasonal adjusted house prices increased by 1 percent in December 2024.

Over the past 12 months, Norwegian house prices increased by an average of 6.4 per cent.

In the county of Møre og Romsdal (M&R) and the city of Ålesund, house prices grew by 8.3 and 7.1 percent, respectively

We expect strong annual growth in house prices also for the upcoming quarter as well.

Indexed development

• January 2015 = 100

• January 2015 – December 2024

Key information on pre-owned dwellings sold in December 2024	Norway	Møre og Romsdal	Ålesund	City of Oslo
Seasonal adj. development last month	+1.0 %	+2.0 %	-0.4 %	+0.8 %
Development last 12 months	+6.4 %	+8.3 %	+7.1 %	+6.8 %
Development last 10 years	+54.4 %	+33.8 %	+37.4 %	+78.2 %
Per square meter (NOK)	51,142	29,651	36,236	93,675
Average number of days on market	73 days	87 days	85 days	45 days
Price median dwelling (NOK)	3,890,000	2,950,000	3,177,500	5,403,977

Good market access and financing

Strong rating and long-term financing

56.9 %

• Deposit to loan ratio

39.6 bn

• Net market financing

6.6 bn • Green funding

A1 • Moody's rating • Stable outlook

Aaa

• Covered Bonds

3.12 year • Remaining duration

Covered Bonds

20

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
• Following the planned introduction of the CRR3 regulations in Norway, the bank has decided not to apply for A-IRB status
• The implementation of CRR3 will have an overall positive effect of approximately 1.5 percentage points on Common Equity Tier 1 capital
• The buffer to the regulatory CET1 requirement at the end of the year is 1.00 p.p. (2.25 p.p. excl. P2G), which gives the bank a robust capital position

CET1- status and requirements (per cent)

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 Battle #1

Satisfied cuomers ensure profitable GROWTH

The PEOPLE make the difference

Battle #2

Battle #3

Together we create an IMPACT!

To strengthen and gather our efforts to achieve our financial targets, we have defined 3 important battles towards 2028

23

GOOD DEVELOPMENT AND GROWTH

Satisfied customers ensure profitable growth

Together we gain market shares!

MARKET SHARE

INCREASING

GOOD REPUTATION AND GOOD CUSTOMER SATISFACTION

25

People make the difference

Our employees expertise and efforts are crucial to our success

Competence as a driving force

Møreskolen established ²⁰⁰²

27

insight to

inspire

Together we create an IMPACT!

Sparebanken Møre is a strong and cost efficient bank also in the future.

GreenArenaMøre

• New requirements and directives on energy-efficient buildings are just around the corner
• We offer a three-year programme that can provide an ENØK gain of as much as 25 percent
• Aimed at owners of commercial buildings
• Initiative from Sparebanken Møre and "Energiråd AS" in 2024
• 2025: The programme will be further developed in our market area

Norwegian Maritime Competence Center (NMK) to become Outstanding*

"Before GreenArena, we probably thought we were already doing a lot for sustainability, but we quickly learned that there is always more to be gained" Kaj Westre, CEO NMK

* The BREEAM-IN-USE certification "Outstanding" is something very few buildings in the world can refer to.

Team-work to simplify, improve and increase the bank's profitability

30

31

Future prospects

International development and growth prospects

cuts in the fourth quarter

Higher interest rate expectations

• Central banks in several Western countries have continued to reduce their key interest rates
• Both the ECB and the Fed reduced their key interest rates by in total one percentage point during the second half of 2024 Further interest rate
  • At the same time, expected interest rate developments in the coming years have risen markedly
  • This is partly due to a more robust economic development in the US
  • Expectations of Trump's political direction have also pushed up market interest rates
  • News related to political actions in the US can lead to fluctuations in the financial market
  • The geopolitical picture still represents a significant source of uncertainty
  • At the same time, the risk of an escalation in the Middle East has decreased since last

Future prospects

Norway and our market area Nordvestlandet

• Interest rate expectations have also risen in Norway
• Norges Bank is expected to deliver its first interest rate cut in March
• Overall, two to three interest rate cuts are expected during 2025
• Developments in the Norwegian economy have been stronger than expected
• Expansionary fiscal policy boosts growth prospects for 2025

• There is a persistent large gap between the different industries

• The level of activity in Møre and Romsdal remains high

• Unemployment in the county is still below the national average
• For several companies, access to labor is a limiting factor

Long term financial targets

Common Equity Tier 1 capital (CET1) must minimum be the sum of pillar 1, pillar 2 (P2R) and 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

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 Q4 Key figures for Q4-24 and Q4-23

	In Q4 2024 In Q4 2023			Changes
Results (NOK million and %)	MNOK	%	MNOK	%	MNOK	p.p.	%
Net Interest Income	522	2.04	506	2.11	16	-0.07	3.2
Gains/losses liquidity portfolio	-24	-0.09	0	0.00	-24	-0.09	-
Gains/losses on shares	-4	-0.02	4	0.02	-8	-0.04	-200.0
Net income Financial Instruments	12	0.05	-3	-0.02	15	0.07	-
Other Income	83	0.32	70	0.29	13	0.03	18.6
Total Other Income	67	0.26	71	0.29	-4	-0.03	-5.6
Total Income	589	2.30	577	2.40	12	0.10	2.1
Salaries and wages	131	0.52	135	0.56	-4	-0.04	-2.2
Other expenses	104	0.40	107	0.45	-3	-0.05	-2.8
Total operating expenses	235	0.92	242	1.01	-7	-0.09	-2.9
Profit before losses	354	1.38	335	1.39	19	-0.01	5.7
Losses on loans and guarantees	21	0.08	-117	-0.49	-138	-0.57	-117.9
Pre-tax profit	333	1.30	452	1.88	-119	-0.58	-26.3
Taxes	82	0.32	112	0.46	30	-0.14	-26.8
Profit after tax	251	0.98	340	1.42	-89	-0.44	-26.2
Return on equity (ROE) %	12.2		17.8			-5.6
Cost/Income ratio	40.0		42.0			-2.0
Profit per EC (NOK)	2.03		3.28			-1.25	38

Results per Q4 Key figures in per Q4 2024 and 2023

	Per Q4 2024		Per Q4 2023 Changes
Results (NOK million and %)	MNOK	%	MNOK	%	MNOK	p.p.	%
Net Interest Income	2 071	2.08	1 900	2.02	171	0.06	9.0
Gains/losses liquidity portfolio	-8	-0.01	-2	0.00	-6	-0.01	-300.0
Gains/losses on shares	-9	-0.01	10	0.01	-19	-0.02	-190.0
Net Income Financial Instruments	60	0.06	37	0.04	23	0.02	62.2
Other Income	287	0.29	250	0.26	37	0.03	14.8
Total Other Income	330	0.33	295	0.31	35	0.02	11.9
Total Income	2 401	2.41	2 195	2.33	206	0.08	9.4
Salaries and wages	525	0.53	482	0.51	43	0.02	8.9
Other expenses	430	0.43	377	0.40	53	0.03	14.3
Total operating expenses	955	0.96	859	0.91	96	0.05	11.2
Profit before losses	1 446	1.45	1 336	1.42	110	0.03	8.2
Losses on loans and guarantees	20	0.02	-53	-0.06	-73	-0.08	-137.7
Pre-tax profit	1 426	1.43	1 389	1.48	37	-0.05	2.7
Taxes	340	0.34	334	0.35	-6	0.01	-1.8
Profit after tax	1 086	1.09	1 055	1.13	31	-0.04	2.9
Return on equity (ROE) %	13.7		14.0			-0.3
Cost/Income ratio	39.8		39.2			0.6
Profit per EC (NOK)	9.95		10.12			-0.17

Balance sheet and key figures

Key figures 2024 and 2023

	31.12.24	31.12.23		Changes
Balance in NOK million			MNOK	%
Total Assets	102 335	96 735	5 600	5.8
Loans to customers	86 875	81 572	5 303	6.5
Deposits from customers	49 550	47 410	2 140	4.5
Net Equity and Subordinated Loans	8 649	8 363	286	3.4

Key Figures	31.12.24	31.12.23	Changes p.p.
Return on Equity	13.7	14.0	-0.3
Cost/Income Ratio	39.8	39.2	0.6
Capital Adequacy Ratio	21.1	22.2	-1.1
Tier 1 Capital	19.0	20.0	-1.0
CET1	17.2	18.2	-1.0
Leverage Ratio	7.4	7.5	-0.1
Profit per EC (NOK, the Group)	9.95	10.12	-0.17
Profit per EC (NOK, the bank)	9.55	10.34	-0.79

Specification of Other Income

2024 and 2023

(NOK million)	2024	2023	Changes y/y
Guarantee commission	27	27	0
Income from the sale of insurance services (non-life/personal)	33	29	4
Income from the sale of shares in unit trusts/securities	15	17	-2
Income from Discretionary Portfolio Management	55	47	8
Income from payment transfers	99	95	4
Other fees and commission income	42	43	-1
Commission income and income from banking services	271	258	13
Commission expenses and expenses from banking services	40	42	2
Income from real estate brokerage	47	33	14
Other operating income	9	1	8
Total other operating income	56	34	22
Net commission and other operating income	287	250	37
Interest rate hedging (for customers)	17	16	1
Currency hedging (for customers)	31	31	0
Dividend received	14	1	13
Net gains/losses on shares	-9	10	-19
Net gains/losses on bonds	-8	-2	-6
Change in value of fixed-rate loans	-7	-9	2
Change in value of issued bonds	7	1	6
Net gains/losses related to buy back of outstanding bonds	-2	-3	1
Net result from financial instruments	43	45	-2
Total other income	330	295	35

Specification of expences

2024 and 2023

(NOK million)	2024	2023	Changes y/y
Wages	379	343	36
Pension expenses	24	25	-1
Employers' social security contribution and Financial activity tax	88	82	6
Other personnel expenses	34	32	2
Wages. salaries. etc.	525	482	43
Depreciations	55	49	6
Operating expenses own and rented premises	17	19	-2
Maintenance of fixed assets	7	8	-1
IT-expenses	209	168	41
Marketing expenses	44	47	-3
Purchase of external services	37	32	5
Expenses related to postage. telephone. newspapers etc.	9	9	0
Travel expenses	6	6	0
Capital tax	13	12	1
Other operating expenses	32	27	5
Total other operating expenses	375	328	47
Total operating expenses	955	859	96

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

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

46

0,02

EC capital in Sparebanken Møre

The largest owners (1-10) of EC capital

EC holder	Number	of ECs
	31.12.24	30.09.24
Sparebankstiftelsen Tingvoll	4.837.394	4.830.361
Verdipapirfondet Eika egenkapital	2.447.968	2.447.968
Wenaasgruppen	2.200.000	2.200.000
Spesialfondet Borea Utbytte	2.064.668	2.336.633
Pareto Aksje Norge	1.829.227	2.011.332
MP Pensjon	1.798.905	1.798.905
Kommunal Landspensjonskasse	1.692.107	1.642.107
J. P. Morgan SE (nominee)	1.687.199	1.691.257
Wenaas EFTF AS	1.100.000	1.100.000
Fondsfinans utbytte	800.000	800.000
Total 10 largest	20.457.468	20.858.563
Of which Møre og Romsdal	8.137.394	8.130.361
Of which Møre og Romsdal in per cent	39,8	39,0

EC capital in Sparebanken Møre

The largest owners (11-20) of EC capital

EC-holder	Number of ECs
	31.12.24	30.09.24
Beka Holding AS	750.500	750.500
Lapas AS	627.000	627.000
BKK Pensjonskasse	470.888	470.888
Forsvarets personellservice	461.000	459.000
Sparebankstiftelsen Sparebanken Møre	360.750	0
Hjellegjerde Invest AS	300.000	300.000
Sparebanken Møre	259.658	171.737
U Aandahls EFT AS	250.000	250.000
PIBCO AS	229.500	229.500
Kveval AS	218.124	218.124
Total 20 largest	24.384.888	24.335.312
Of which Møre og Romsdal	10.164.302	9.708.598
Of which Møre og Romsdal in %	41,7	39,9