Sparebanken Møre

Quarterly Report • Jan 30, 2025

Interim report 4 quarter 2024

Financial highlights - Group

Income statement

(Amounts in percentage of average assets)

	Q4 2024			Q4 2023		2024		2023
	NOK million	%	NOK million	%	NOK million	%	NOK million	%
Net interest income	522	2.04	506	2.11	2 071	2.08	1 900	2.02
Net commission and other operating income	83	0.32	70	0.29	287	0.29	250	0.26
Net result from financial instruments	-16	-0.06	1	0.00	43	0.04	45	0.05
Total income	589	2.30	577	2.40	2 401	2.41	2 195	2.33
Total operating expenses	235	0.92	242	1.01	955	0.96	859	0.91
Profit before impairment on loans	354	1.38	335	1.39	1 446	1.45	1 336	1.42
Impairment on loans, guarantees etc.	21	0.08	-117	-0.49	20	0.02	-53	-0.06
Pre-tax profit	333	1.30	452	1.88	1 426	1.43	1 389	1.48
Taxes	82	0.32	112	0.46	340	0.34	334	0.35
Profit after tax	251	0.98	340	1.42	1 086	1.09	1 055	1.13

Balance sheet

(NOK million)	31.12.2024	Change last 12 months (%)	31.12.2023
Total assets 4)	102 335	5.8	96 735
Average assets 4)	99 776	6.0	94 095
Loans to and receivables from customers	86 875	6.5	81 572
Gross loans to retail customers	57 872	7.6	53 795
Gross loans to corporate and public entities	29 255	4.3	28 039
Deposits from customers	49 550	4.5	47 410
Deposits from retail customers	30 149	3.2	29 226
Deposits from corporate and public entities	19 401	6.7	18 184

Key figures and Alternative Performance Measures (APMs)

	Q4 2024	Q4 2023	2024	2023
Return on equity (annualised) 3) 4)	12.2	17.8	13.7	14.0
Cost/income ratio 4)	40.0	42.0	39.8	39.2
Losses as a percentage of loans and guarantees (annualised) 4)	0.08	-0.61	0.02	-0.07
Gross credit-impaired commitments as a percentage of loans/guarantee liabilities	0.58	0.51	0.58	0.51
Net credit-impaired commitments as a percentage of loans/guarantee liabilities	0.45	0.39	0.45	0.39
Deposit-to-loan ratio 4)	56.9	57.9	56.9	57.9
Liquidity Coverage Ratio (LCR)	167	174	167	174
NSFR (Net Stable Funding Ratio)	122	124	122	124
Lending growth as a percentage 4)	6.5	2.3	6.5	7.2
Deposit growth as a percentage 4)	4.5	1.6	4.5	8.0
Capital adequacy ratio 1)	21.1	22.2	21.1	22.2
Tier 1 capital ratio 1)	19.0	20.0	19.0	20.0
Common Equity Tier 1 capital ratio (CET1) 1)	17.2	18.2	17.2	18.2
Leverage Ratio (LR) 1)	7.4	7.5	7.4	7.5
Man-years	402	400	402	400

Equity Certificates (ECs)

	2024	2023	2022	2021	2020
Profit per EC (Group) (NOK) 2) 5)	9.95	10.12	7.50	31.10	27.10
Profit per EC (parent bank) (NOK) 2) 5)	9.55	10.34	8.48	30.98	26.83
Number of ECs 5)	49 795 520	49 434 770	49 434 770	9 886 954	9 886 954
Nominal value per EC (NOK) 5)	20.00	20.00	20.00	100.00	100.00
EC fraction 1.1 as a percentage (parent bank)	49.1	49.7	49.7	49.7	49.6
EC capital (NOK million)	995.90	988.70	988.70	988.70	988.70
Price at Oslo Stock Exchange (NOK)	97.0	84.0	84.4	444	296
Stock market value (NOK million)	4 830	4 153	4 173	4 390	2 927
Book value per EC (Group) (NOK) 4) 5)	81.5	80.7	74.8	350	332
Dividend per EC (NOK) 5)	6.25	7.50	4.00	16.00	13.50
Price/Earnings (Group, annualised)	9.8	8.3	11.3	14.3	10.9
Price/Book value (P/B) (Group) 2) 4)	1.19	1.04	1.13	1.27	0.89

1) Incl. proposed allocations

2) Calculated using the EC-holders' share (48.4 %) of the period's profit to be allocated to equity owners

3) Calculated using the share of the profit to be allocated to equity owners

4) Defined as Alternative Performance Measure (APM), see www.sbm.no/IR

5) Our EC(MORG) was split 1:5 in April 2022

Interim report from the Board of Directors

All figures relate to the Group. Figures in brackets refer to the corresponding period last year. The financial statements have been prepared in accordance with IFRS and the interim report has been prepared in conformity with IAS 34 Interim Financial Reporting.

RESULTS FOR Q4 2024

Profit before losses amounted to NOK 354 million for the fourth quarter of 2024, or 1.38 per cent of average assets, compared with NOK 335 million, or 1.39 per cent, for the corresponding quarter last year.

The profit after tax for the fourth quarter of 2024 amounted to NOK 251 million, or 0.98 per cent of average assets, compared with NOK 340 million, or 1.42 per cent, for the corresponding quarter last year.

Return on equity was 12.2 per cent for the fourth quarter of 2024, compared with 17.8 per cent for the fourth quarter of 2023, and the cost income ratio amounted to 40.0 per cent compared with 42.0 per cent for the fourth quarter of 2023.

Earnings per equity certificate were NOK 2.03 (NOK 3.28) for the Group and NOK 1.65 (NOK 3.07) for the parent bank.

Net interest income

Net interest income was NOK 522 million for the quarter, which is NOK 16 million, or 3.2 per cent, higher than in the corresponding quarter of last year. This represents 2.04 per cent of total assets, which is 0.07 percentage points lower than for the corresponding quarter last year.

The interest rate margin for deposits in both the retail market and corporate market contracted compared with the fourth quarter of 2023, while the lending margin was stable compared with the same period in 2023.

Other income

Other income was NOK 67 million for the quarter, which is NOK 4 million less than in the fourth quarter of last year. The net result from financial instruments of NOK -16 million for the quarter was NOK 17 million less than in the fourth quarter of 2023. Capital losses from bond holdings were NOK 24 million in the quarter, compared with NOK 0 million in the corresponding quarter last year. Capital losses from equities amounted to NOK 4 million, compared with capital gains of NOK 4 million in the fourth quarter of 2023. The negative change in value for fixed-rate lending amounted to NOK 8 million, compared with a negative change in value of NOK 14 million in the same quarter last year. Income from foreign exchange and interest rate business for customers amounted to NOK 10 million in the quarter, NOK 5 million less than in the same quarter last year.

Other income excluding financial instruments increased by NOK 14 million compared with the fourth quarter of 2023. The increase was mainly attributable to income from Discretionary Portfolio Management, real estate agency activities and sundry other income.

Expenses

Operating expenses amounted to NOK 235 million for the quarter, which is NOK 7 lower than for the same quarter last year. Personnel epxenses were NOK 4 million lower than in the corresponding period last year and totalled NOK 131 million. Other operating expenses were NOK 3 million lower than in the same period last year.

Provisions for expected credit losses and credit-impaired commitments

Losses on loans and guarantees amounted to NOK 21 million in the quarter (receipts of NOK 117 million), corresponding to 0.08 per cent of average assets (-0.49 per cent of average assets). The corporate segment saw an increase of NOK 27 million in losses in the quarter, while receipts on losses in the retail segment amounted to NOK 6 million.

PRELIMINARY FINANCIAL STATEMENTS FOR 2024

Profit before losses amounted to NOK 1,446 million, or 1.45 per cent of average assets, compared with NOK 1,336 million, or 1.42 per cent, for 2023.

Profit after tax was NOK 1,086 million, or 1.09 per cent of average assets, compared with NOK 1,055 million, or 1.13 per cent, for 2023.

Return on equity was 13.7 per cent for 2024, compared with 14.0 per cent for 2023, and the cost income ratio amounted to 39.8 per cent, compared with 39.2 per cent for 2023.

Earnings per equity certificate in 2024 were NOK 9.95 (NOK 10.12) for the Group, and NOK 9.55 (NOK 10.34) for the parent bank.

Net interest income

Net interest income totalled NOK 2,071 million (NOK 1,900 million) or 2.08 per cent (2.02 per cent) of average assets.

The interest rate margin for deposits in both the retail market and corporate market contracted compared with 2023, while the lending margin was stable compared with 2023.

Other income

Other income amounted to NOK 330 million in 2024 (0.33 per cent of average assets). This is an increase of NOK 35 million compared with 2023.

Dividends amounted to NOK 14 million, compared with NOK 1 million in 2023. Capital losses from bond holdings were NOK 8 million, compared with losses of NOK 2 million in 2023. Capital losses from equities amounted to NOK 9 million, compared with capital gains of NOK 10 million in 2023. Income from other financial instruments increased by NOK 10 million compared with 2023.

Other income, excluding financial instruments, increased by NOK 37 million compared with 2023.

See Note 7 for a specification of other income.

Expenses

Total expenses were NOK 955 million, which is NOK 96 million higher than in 2023. Personnel expenses increased by NOK 43 million compared with 2023 and were NOK 525 million. Staffing has increased by 2 FTEs in the past 12 months to 402 FTEs. Other operating expenses were NOK 53 million higher than in 2023. See Note 8 for a specification of expenses.

The cost income ratio for 2024 was 39.8 per cent, which represents an increase of 0.6 percentage points compared with 2023.

Provisions for expected credit losses and credit-impaired commitments

The accounts were charged NOK 20 million in losses on loans and guarantees in 2024, while the accounts for 2023 were credited with net receipts of NOK 53 million.

At the end of 2024, provisions for expected credit losses totalled NOK 263 million, equivalent to 0.30 per cent of gross loans and guarantee commitments (NOK 266 million or 0.32 per cent). Of the total provision for expected credit losses, NOK 40 million relates to credit-impaired commitments more than 90 days past due (NOK 26 million), which represents 0.05 per cent of gross loans and guarantee commitments (0.03 per cent), while NOK 76 million relates to other credit-impaired commitments (NOK 72 million), corresponding to 0.09 per cent of gross loans and guarantee commitments (0.09 per cent).

Net credit-impaired commitments (commitments more than 90 days past due and other credit-impaired commitments) have increased by NOK 68 million in the past 12 months. At year end 2024, the corporate market accounted for NOK 236 million of net credit-impaired commitments and the retail market NOK 159 million. In total, this represents 0.45 per cent of gross loans and guarantee commitments (0.39 per cent).

Lending to customers

At the end of 2024, net lending to customers amounted to NOK 86,875 million (NOK 81,572 million). In the past 12 months, gross customer lending has increased by a total of NOK 5,294 million, equivalent to 6.5 per cent. Retail lending has increased by 7.6 per cent and corporate lending has increased by 4.3 per cent in the past 12 months. Retail lending accounted for 66.4 per cent of lending at year end 2024 (65.7 per cent).

Customer deposits

Customer deposits have increased NOK 2,140 million, or 4.5 per cent, in the past 12 months. At year end 2024, deposits amounted to NOK 49,550 million (NOK 47,410 million). Retail deposits have increased by 3.2 per cent in the past 12 months, while corporate deposits and public sector deposits have increased by 6.7 per cent. The retail market's relative share of deposits amounted to 60.8 per cent (61.7 per cent), while deposits from the corporate market accounted for 39.2 per cent (38.3 per cent).

LIQUIDITY AND FUNDING

Sparebanken Møre's liquidity and funding are managed based on frameworks for its Liquidity Coverage Ratio (LCR), Net Stable Funding Ratio (NSFR), deposit-to-loan ratio and others. The regulatory minimum LCR and NSFR requirements are both 100 per cent. The Group has established minimum internal targets that exceed the regulatory requirements for LCR and NSFR as well as an internal target corridor for its deposit-to-loan ratio.

Sparebanken Møre's liquidity coverage ratio (LCR) was 167 (174) for the Group and 150 (155) for the parent bank at the end of the year.

The NSFR ended at 122(124) at the end of 2024 (consolidated figure), while the bank's and Møre Boligkreditt AS's NSFR ended at 122 (128) and 110 (109), respectively.

Both LCR and NSFR meet both external and internal requirements by good margin.

Deposits from customers represent the bank's main source of funding. The deposit-to-loan ratio was 56.9 per cent (57.9 per cent) at the end of 2024, and this is within the established target corridor.

Total net market financing amounted to NOK 39.6 billion at the end of the year. Senior bonds with a remaining term to maturity of more than 1 year have a weighted remaining term to maturity of 2.17 years, while covered bond funding through Møre Boligkreditt AS correspondingly has a weighted remaining term to maturity of 3.12 years – overall for market funding in the Group (inclusive of T2 and T3) the remaining term to maturity is 3.02 years.

Møre Boligkreditt AS issues bonds based on the transfer of loans from the parent bank. Gross retail lending transferred to Møre Boligkreditt AS amounted to NOK 35,751 million at year end, which corresponds to 41.0 per cent of the bank's total lending.

RATING

In a Credit Opinion published on 17 January 2025, the rating agency Moody's confirmed Sparebanken Møre's counterparty, deposit and issuer ratings as A1 with a stable outlook.

Møre Boligkreditt has the same issuer rating as the parent bank, while the mortgage credit company's issuances are rated Aaa.

CAPITAL ADEQUACY

Capital adequacy is calculated and reported in line with the EU capital requirements for banks and investment firms – CRD /CRR. Sparebanken Møre has authorisation from the Financial Supervisory Authority of Norway to use internal measurement methods, the Foundation IRB method, for credit risk. Market risk calculations are based on the standard method and operational risk calculations on the basic method. The use of IRB involves comprehensive requirements for the bank's organisation, expertise, risk models and risk management systems.

Bank Package IV came into effect in the EU on 1 January 2025 with the implementation of the Capital Requirements Regulation (CRR III) and the Capital Requirements Directive (CRD VI). However, CRR III cannot enter into force in Norway until CRR III has been incorporated into, and is in effect in, the EEA Agreement. CRR III will enter into force in the EEA Agreement after any constitutional reservations in Liechtenstein and Iceland have been resolved.

The ministry has decided to increase the risk-weighted floor for mortgages from 20 to 25 per cent with effect from 1 July 2025. It is estimated that this will result in a reduction in Common Equity Tier 1 capital of around 1.1 percentage points for Sparebanken Møre, based on figures from the third quarter of 2024. At the same time, other changes in CRR III will have positive capital effects for the bank. Overall, the changes in capital requirements will have a positive effect of around 1.2 percentage points on Common Equity Tier 1 capital for Sparebanken Møre.

On 16 August 2024, the Financial Supervisory Authority approved Sparebanken Møre's application to acquire equity certificates. Authorisation was granted on the condition that the buybacks do not reduce Common Equity Tier 1 capital by more than NOK 78.4 million. Sparebanken Møre deducted NOK 78.4 million from Common Equity Tier 1 capital between the date authorisation was granted until the authorisation expired on 31 December 2024. In January 2025, a new application was submitted for the acquisition of equity certificates.

At the end of 2024, the Common Equity Tier 1 capital ratio was 17.2 per cent (18.2 per cent). This is 1 percentage points higher than the total minimum requirement and the Financial Supervisory Authority of Norway's expected capital adequacy margin (P2G) totalling 16.15 per cent. Primary capital amounted to 21.1 per cent (22.2 per cent), and Tier 1 capital was 19.0 per cent (20.0 per cent).

Sparebanken Møre's total Common Equity Tier 1 capital ratio requirement is 16.15 per cent. The requirement consists of a minimum requirement of 4.5 per cent, a capital conservation buffer of 2.5 per cent, a systemic risk buffer of 4.5 per cent and a countercyclical buffer of 2.5 per cent. The Financial Supervisory Authority conducted a SREP in 2023. The individual Pillar 2 requirement for Sparebanken Møre has been set at 1.6 per cent, and the expected capital adequacy margin has been set at 1.25 per cent. At least 56.25 per cent of the Pillar 2 requirement (P2R) that resulted from the aforementioned SREP must be met with Common Equity Tier 1 capital (0.9 per cent), while a minimum of 75 per cent must be met with Tier 1 capital. The P2G margin must be met with Common Equity Tier 1 capital.

The leverage ratio (LR) at year end 2024 was 7.4 per cent (7.5 per cent). The regulatory minimum requirement (3 per cent) was met by a good margin.

MREL

On 1 January 2025, the Financial Supervisory Authority of Norway set Sparebanken Møre's effective MREL requirement at 35.7 per cent of the risk-weighted assets at any given time. The minimum subordination requirement was set at 28.7 per cent. At the end of the year, Sparebanken Møre's actual MREL level was 39.6 per cent, while the level of subordination was 32.4 per cent of the risk-weighted assets.

Sparebanken Møre has issued NOK 3,750 million in subordinated bond debt at the end of 2024.

SUBSIDIARIES

The aggregate profit of the bank's subsidiaries amounted to NOK 172 million after tax in 2024 (NOK 130 million). Møre Boligkreditt AS was established as part of the Group's long-term funding strategy. The main purpose of the covered bond company is to issue covered bonds for sale to Norwegian and international investors. At the end of 2024, the company had nominal outstanding covered bonds of NOK 30.6 billion in the market. Around 40 per cent was issued in a currency other than NOK. At the end of the year, the parent bank held NOK 279 million in bonds issued by the company. Møre Boligkreditt AS contributed NOK 169 million to the Group's result in 2024 (NOK 128 million).

Møre Eiendomsmegling AS provides real estate brokerage services to both retail and corporate customers. The company contributed NOK 0 million to the result in 2024 (NOK 0 million). At year end, the company employed 22 full-time equivalents.

The purpose of Sparebankeiendom AS and Storgata 41-45 Molde AS is to own and manage the bank's own commercial properties. The company contributed NOK 3 million to the result in 2024 (NOK 2 million). The companies have no staff.

EQUITY CERTIFICATES

At year end 2024, there were 7,424 holders of Sparebanken Møre's equity certificates (EC). The proportion of ECs owned by foreign nationals and entities amounted to 5.7 per cent at the end of the year.

Note 14 includes a list of the 20 largest holders of the bank's ECs. As at 31 December 2024, the bank owned 259,658 ECs. These were purchased on the Oslo Stock Exchange at market price.

In connection with the establishment of the foundation Sparebankstiftelsen Sparebanken Møre, the equity certificate capital was increased by a nominal value of NOK 7,215,000 on 4 December 2024 by converting primary capital to equity certificate capital. The equity certificates issued at the time of conversion were transferred to the foundation. The number of issued equity certificates after the conversion is 49,795,520. It is estimated that the conversion, in isolation, will increase the ownership fraction by 0.35 percentage points.

Based on Sparebanken Møre's practice related to the distribution ofdividend funds for the local community, the Financial Supervisory Authority of Norway has instructed the bank to make a correction in connection with the annual report and financial statements for 2024. The effect of the instruction entails a transfer from profit for the year to primary capital of NOK 132.4 million. This results in an increase in Common Equity Tier 1 capital of about 0.32 percentage points and a reduction in the ownership fraction of almost 0.9 percentage points.

At year end, equity certificate capital accounted for 49.1 per cent of the bank's total equity.

DIVIDEND POLICY

The aim of Sparebanken Møre is to achieve financial results which provide a good and stable return on the bank's equity capital. The results should ensure that the owners of the equity receive a competitive longterm return in the form of cash dividends and capital appreciation on their equity.

Dividends consist of cash dividends for equity certificate holders and dividend funds for local communities. The proportion of profits allocated to dividends is in line with the bank's capital strength. Unless the bank's capital strength dictates otherwise, it is expected that about 50 per cent of this year's surplus can be distributed as dividends.

Sparebanken Møre's allocation of earnings should ensure that all EC holders are guaranteed equal treatment.

PROPOSED ALLOCATION OF PROFIT FOR THE YEAR

Reference is made to provisions on the distribution of profits according to the Financial Institutions Act, among other to §10-17, and to Sparebanken Møre's dividend policy. It is intended to propose that 72.2 per cent of the profit in the Group after correction (75.6 per cent of the profit in the Parent bank) is distributed as cash dividends to EC owners and dividend funds for local communities.

Based on the accounting breakdown of equity in the parent bank between equity certificate capital and the primary capital fund, 48.41 per cent of the profit will be allocated to equity certificate holders and 51.59 per cent to the primary capital fund. The Group posted earnings per equity certificate of NOK 9.95 in 2024 (NOK 9.55 in the parent bank). The Board of Directors is also planning to propose to the Annual General Meeting is that the cash dividend per equity certificate for the 2024 financial year be set at NOK 6.25, which will come to NOK 311.2 million in total. The corresponding provision for dividend funds for local communities will amount to NOK 331.7 million.

Proposed allocation of profit in the parent bank (figures in NOK millions):

Profit for the year
Share allocated to hybrid Tier 1 instrument holders
Instruction to correct primary capital fund		132
Dividend funds (75.6 per cent):
To cash dividends	311
To dividend funds for local communities	332	643
Strengthening of equity (24.4 per cent):
To the dividend equalisation fund		100
To the primary capital fund	107	207
Total allocated		1,045

FUTURE PROSPECTS

In early autumn, the financial markets were worried that there would be a marked slowdown in the US economy. At the time, the market assumed that the US Federal Bank would reduce interest rates relatively quickly. The decrease in expectations concerning US interest rates also spread to European interest rates.

In the past few months, a more robust picture of the US economy has emerged. This has reduced fears of a marked slowdown and caused interest rate expectations to rise again. Expectations that the policies of the Trump administration will be inflationary are also causing expectations concerning interest rates to rise. A lot of uncertainty remains about the specific policy measures that will be implemented, although they are expected to include higher import duties and lower corporate taxes.

While interest rate expectations among our trading partners have risen, a number of central banks have continued to reduce their policy rates. This is because international inflationary pressures continue to decrease. Both the US and European central banks have reduced their key rates by one percentage point from their peak; the Swedish Riksbanken has lowered its by even more.

The uncertainty surrounding the future performance of the global economy remains relatively high. The fluctuations in interest rate expectations are, therefore, also significant. US policy news may lead to fluctuations in the international financial markets in the coming months.

The Norwegian economy has yet to exhibit any particular signs of weakness in the overall picture. Growth has slightly exceeded Norges Bank's estimates in recent quarters. At the same time, the fiscal policy for 2025 appears to be somewhat more expansive than expected, which is helping to boost the prospects of growth for 2025. A gradual lowering of interest rates and expectations of increased household purchasing power pull in the same direction. Norges Bank estimates that the Norwegian mainland economy will grow by 1.4 per cent in 2025, up from 0.9 per cent in 2024.

The unemployment rate remains low and is not expected to rise much. Nordvestlandet is also seeing higher levels of activity than a number of other areas of the country. This is in part due to the weak Norwegian krone exchange rate, which has boosted activity in export industries.

With a Norwegian economy that is holding up well, it appears that the decrease in interest rates will be gradual. Overall, Norges Bank is expecting three interest rate cuts in 2025, with the first in March.

The rate of growth in lending to households for Norway as a whole continued to edge upwards throughout the fourth quarter of the year as well. The trend of declining growth in household debt over the past 2 years ended in March; the 12-month growth rate has increased each month since April and was 3.9 per cent at the end of November. The growth in lending to non-financial companies fell during 2024 and was 1.9 per cent at the end of November. At the same time, the 12-month growth in total lending was 3.6 per cent.

Sparebanken Møre's overall lending growth remains satisfactorily high and is still markedly above market growth. At the end of 2024, the 12-month growth rate was 6.5 per cent, slightly below the growth rate at the end of 2023 of 7.2 per cent. Year-on-year growth in lending to the retail market amounted to 7.6 per cent at the end of the year, while lending growth in the corporate market amounted to 4.3 per cent. Deposits have increased by 4.5 per cent in the past 12 months and the deposit-to-loan ratio remains high.

The bank has a solid capital base and good liquidity and will remain a strong and committed supporter of our customers also going forward. The focus will always be on good operations and profitability.

The bank's return on equity for 2024 ended at 13.7 per cent and its cost income ratio at 39.8. Sparebanken Møre's long-term strategic financial performance targets have been a return on equity of above 12 per cent and a cost income ratio of below 40. Going forward, the long-term performance targets are a return on equity above 13 per cent, while the cost income ratio below 40 remain unchanged.

Ålesund, 31 December 2024 29 January 2025

THE BOARD OF DIRECTORS OF SPAREBANKEN MØRE

ROY REITE, Chair of the Board KÅRE ØYVIND VASSDAL, Deputy Chair JILL AASEN THERESE MONSÅS LANGSET TERJE BØE BIRGIT MIDTBUST MARIE REKDAL HIDE BJØRN FØLSTAD

TROND LARS NYDAL, CEO

Statement of income - Group

STATEMENT OF INCOME - GROUP (COMPRESSED)

(NOK million)	Note	Q4 2024	Q4 2023	2024	2023
Interest income from assets at amortised cost		1 281	1 207	5 100	4 221
Interest income from assets at fair value		253	204	868	695
Interest expenses		1 012	905	3 897	3 016
Net interest income	3	522	506	2 071	1 900
Commission income and revenues from banking services		76	72	271	258
Commission expenses and charges from banking services		10	11	40	42
Other operating income		17	9	56	34
Net commission and other operating income	7	83	70	287	250
Dividends		6	0	14	1
Net change in value of financial instruments		-22	1	29	44
Net result from financial instruments	7	-16	1	43	45
Total other income	7	67	71	330	295
Total income		589	577	2 401	2 195
Salaries, wages etc.		131	135	525	482
Depreciation and impairment of non-financial assets		15	12	55	49
Other operating expenses		89	95	375	328
Total operating expenses	8	235	242	955	859
Profit before impairment on loans		354	335	1 446	1 336
Impairment on loans, guarantees etc.	5	21	-117	20	-53
Pre-tax profit		333	452	1 426	1 389
Taxes		82	112	340	334
Profit after tax		251	340	1 086	1 055
Allocated to equity owners		235	327	1 023	1 007
Allocated to owners of Additional Tier 1 capital		16	13	63	48
Profit per EC (NOK) 1)		2.03	3.28	9.95	10.12
Diluted earnings per EC (NOK) 1)		2.03	3.28	9.95	10.12
Distributed dividend per EC (NOK)		0.00	0.00	7.50	4.00

STATEMENT OF COMPREHENSIVE INCOME - GROUP (COMPRESSED)

(NOK million)	Q4 2024	Q4 2023	2024	2023
Profit after tax	251	340	1 086	1 055
Items that may subsequently be reclassified to the income statement:
Basisswap spreads - changes in value	-28	-14	-38	-37
Tax effect of changes in value on basisswap spreads	6	3	8	8
Items that will not be reclassified to the income statement:
Pension estimate deviations	9	1	9	1
Tax effect of pension estimate deviations	-2	0	-2	0
Total comprehensive income after tax	236	330	1 063	1 027
Allocated to equity owners	220	317	1 000	979
Allocated to owners of Additional Tier 1 capital	16	13	63	48

1) Calculated using the EC-holders' share (48.4 %) of the period's profit to be allocated to equity owners.

Balance sheet - Group

ASSETS (COMPRESSED)

(NOK million)	Note	31.12.2024	31.12.2023
Cash and receivables from Norges Bank	9 10 13	447	266
Loans to and receivables from credit institutions	9 10 13	702	919
Loans to and receivables from customers	4 5 6 9 11 13	86 875	81 572
Certificates, bonds and other interest-bearing securities	9 11 13	12 144	11 898
Financial derivatives	9 11	1 393	1 336
Shares and other securities	9 11	199	217
Intangible assets		61	59
Fixed assets		220	206
Overfunded pension liability		80	59
Other assets		214	203
Total assets		102 335	96 735

LIABILITIES AND EQUITY (COMPRESSED)

(NOK million)	Note	31.12.2024	31.12.2023
Loans and deposits from credit institutions	9 10 13	1 994	1 727
Deposits from customers	4 9 10 13	49 550	47 410
Debt securities issued	9 10 12	38 906	36 170
Financial derivatives	9 11	719	603
Other provisions for incurred costs and prepaid income		101	98
Pension liabilities		23	28
Tax payable		349	270
Provisions for guarantee liabilities		11	4
Deferred tax liabilities		148	161
Other liabilities		651	727
Subordinated loan capital	9 10	857	857
Total liabilities		93 309	88 055
EC capital	14	996	989
ECs owned by the bank		-5	-4
Share premium		379	359
Additional Tier 1 capital		750	650

Paid-in equity	2 120	1 994
Primary capital fund	3 687	3 475
Gift fund	125	125
Dividend equalisation fund	2 306	2 205
Liability credit reserve	-43	-13
Other equity	831	894
Retained earnings	6 906	6 686
Total equity	9 026	8 680
Total liabilities and equity	102 335	96 735

Statement of changes in equity - Group

GROUP 31.12.2024	Total equity	EC capital	Share premium	Additional Tier 1 capital	Primary capital fund	Gift fund	Dividend equalisation fund	Liability credit reserve	Other equity
Equity as at 31.12.2023	8 680	985	359	650	3 475	125	2 205	-13	894
Changes in own equity certificates	-7	-1	1		-5		-2
Distributed dividends to the EC holders	-371								-371
Distributed dividends to the local community	-376								-376
Issued Additional Tier 1 capital	350			350
Redemption of Additional Tier 1 capital	-250			-250
Interests on issued Additional Tier 1 capital	-63								-63
Convertion of ECs to Sparebankstiftelsen Sparebanken Møre	0	7	19		-26
Order of corretion to the primary capital fund	132				132
Equity as at 31.12.2024	8 095	991	379	750	3 576	125	2 203	-13	84
Allocated to the primary capital fund	107				107
Allocated to the dividend equalisation fund	100						100
Allocated to owners of Additional Tier 1 capital	63								63
Allocated to other equity	41								41
Proposed dividend allocated for the EC holders	311								311
Proposed dividend allocated for the local community	332								332
Profit for the year	954	0	0	0	107	0	100	0	747
Changes in value - basis swaps	-38							-38
Tax effect of changes in value - basis swaps	8							8
Pension estimate deviations	9				5		4
Tax effect of pension estimate deviations	-2				-1		-1
Total other income and costs from comprehensive income	-23	0	0	0	4	0	3	-30	0
Total profit for the year	931	0	0	0	111	0	103	-30	747
Equity as at 31.12.2024	9 026	991	379	750	3 687	125	2 306	-43	831

15

GROUP 31.12.2023	Total equity	EC capital	Share premium	Additional Tier 1 capital	Primary capital fund	Gift fund	Dividend equalisation fund	Liability credit reserve	Other equity
Equity as at 31.12.2022	8 102	986	358	650	3 334	125	2 066	16	567
Changes in own equity certificates	-3	-1	1		-1		-2
Distributed dividends to the EC holders	-198								-198
Distributed dividends to the local community	-200								-200
Interests on issued Additional Tier 1 capital	-48								-48
Equity before allocation of profit for the year	7 653	985	359	650	3 333	125	2 064	16	121
Allocated to the primary capital fund	142				142
Allocated to the dividend equalisation fund	140						140
Allocated to owners of Additional Tier 1 capital	48								48
Allocated to other equity	-22								-22
Proposed dividend allocated for the EC holders	371								371
Proposed dividend allocated for the local community	376								376
Profit for the year	1 055	0	0	0	142	0	140	0	773
Changes in value - basis swaps	-37							-37
Tax effect of changes in value - basis swaps	8							8
Pension estimate deviations	1						1
Tax effect of pension estimate deviations	0
Total other income and costs from comprehensive income	-28	0	0	0	0	0	1	-29	0
Total profit for the year	1 027	0	0	0	142	0	141	-29	773
Equity as at 31.12.2023	8 680	985	359	650	3 475	125	2 205	-13	894

Statement of cash flow - Group

(NOK million)	31.12.2024	31.12.2023
Cash flow from operating activities
Interest, commission and fees received	5 758	4 775
Interest, commission and fees paid	-1 943	-1 363
Interest received on certificates, bonds and other securities	542	439
Dividend and group contribution received	14	1
Operating expenses paid	-883	-786
Income taxes paid	-269	-210
Net change in loans to and claims on other financial institutions	217	-559
Net change in repayment loans to customers	-4 810	-4 753
Net change in utilised credit facilities	-484	-688
Net change in deposits from customers	2 140	3 529
Proceeds from the sale of certificates, bonds and other securities	18 581	11 401
Purchases of certificates, bonds and other securities	-21 621	-12 840
Net cash flow from operating activities	-2 758	-1 054
Cash flow from investing activities
Proceeds from the sale of fixed assets etc.	0	0
Purchase of fixed assets etc.	-38	-41
Net change in other assets	13	-159
Net cash flow from investing activities	-25	-200
Cash flow from financing activities
Interest paid on debt securities and subordinated loan capital	-2 038	-1 676
Net change in deposits from Norges Bank and other financial institutions	268	640
Proceeds from bond issues raised	10 675	8 392
Redemption of debt securities	-5 419	-5 786
Dividend paid	-371	-198
Net change in other debt	-186	-198
Net change in Additional Tier 1 capital	98	0
Paid interest on Additional Tier 1 capital issued	-63	-48
Net cash flow from financing activities	2 964	1 126
Net change in cash and cash equivalents	181	-128
Cash balance, OB	266	394
Cash balance, CB	447	266

Accounting principles

The Group`s interim accounts have been prepared in accordance with adopted International Financial Reporting Standards (IFRS), approved by the EU as at 31 December 2024. The interim report has been prepared in compliance with IAS 34 Interim Reporting and in accordance with accounting principles and methods applied in the 2023 Financial statements.

The accounts are presented in Norwegian kroner (NOK), which is also the parent banks and subsidiaries functional currency. All amounts are stated in NOK million unless stated otherwise.

Capital adequacy

Sparebanken Møre calculates and reports capital adequacy in compliance with the EU's capital requirements regulation and directive (CRD/CRR). Sparebanken Møre is granted permission from the Financial Supervisory Authority of Norway (FSA) to use internal rating methods, IRB Foundation for credit risk. Calculations regarding market risk are performed using the standardised approach and for operational risk the basic indicator approach is used. The use of IRB places extensive demands on the bank's organisation, expertise, risk models and risk management systems.

Banking Package IV will apply in the EU from 01.01.2025 with the implementation of the Capital Requirements Regulation CRRIII and the Capital Requirements Regulation CRDVI. However, CRRIII cannot come into force in Norway until CRRIII has been incorporated and entered into force in the EEA Agreement. CRRIII will enter into force in the EEA Agreement after any constitutional reservations in Liechtenstein and Iceland have been lifted.

The Ministry of Finance has decided to increase the minimum requirements on average risk weights for loans secured by Norwegian residential real estate from 20 to 25 per cent with effect from 1 July 2025. For Sparebanken Møre, the new minimum requirement is, based on figures from the third quarter, estimated to entail an isolated negative effect of about 1.1 percentage points on CET1 ratio. On the other hand, other CRRIII changes will have a positive effect on the bank`s CET1 ratio. The changes in capital requirements will for Sparebanken Møre have an overall net positive effect on CET1 ratio by approximately 1.2 percentage points.

In a letter dated 18 January 2024, the FSA rejected the bank's application of model changes for the retail market and the bank will send a new application during the first quarter of 2025, taking the feedback from the FSA into account.

On 16 August 2024, the FSA approved a new application for the acquisition of own equity certificates. The authorisation has been granted on the condition that the buybacks do not reduce Common Equity Tier 1 capital by more than NOK 78.4 million. Sparebanken Møre has made deductions in the Common Equity Tier 1 capital of NOK 78.4 million from the date the authorisation was granted and for the duration of the authorisation until 31 December 2024. In January 2025, a new application was submitted for the acquisition of own equity certificates.

Sparebanken Møre's total Common Equity Tier 1 capital ratio requirement is 16.15 per cent. The requirement consists of a minimum requirement of 4.5 per cent, a capital conservation buffer of 2.5 per cent, a systemic risk buffer of 4.5 per cent and a countercyclical buffer of 2.5 per cent. The Financial Supervisory Authority conducted a SREP in 2023. The individual Pillar 2 requirement for Sparebanken Møre has been set at 1.6 per cent, and the expected capital adequacy margin has been set at 1.25 per cent. At least 56.25 per cent of the new Pillar 2 requirement that resulted from the aforementioned SREP must be met with Common Equity Tier 1 capital (0.9 per cent), and minimum 75 per cent must be met with Tier 1 capital.

Sparebanken Møre has an internal target for the CET1 ratio to minimum equal the sum of Pillar 1, Pillar 2 and the Pillar 2 Guidance.

MREL

One key element of the BRRD II (Bank Recovery and Resolution Directive) is that capital instruments and debt can be written down and/or converted to equity (bail-in). The Financial Institutions Act, therefore, requires the bank to meet a minimum requirement regarding the sum of its own funds and convertible debt at all times (MREL – minimum requirement for own funds and eligible liabilities) such that the bank has sufficient primary capital and convertible debt to cope with a crisis without the use of public funds.

The MREL requirement, applicable from 1 January 2025, must be covered by own funds or debt instruments with a lower priority than ordinary, unsecured, non-prioritised debt (senior debt). The overall subordination requirement must as a minimum be phased in linearly. From 1 January 2022, the effective subordination requirement is 20 per cent of the adjusted risk-weighted assets.

19 In its letter dated 17 December 2024, the FSA set Sparebanken Møre's effective MREL-requirement as of 01.01.2025 at 35.7 per cent and the minimum subordination requirement at 28.7 per cent. th

Equity	31.12.2024	31.12.2023
EC capital	996	989
- ECs owned by the bank	-5	-4
Share premium	379	359
Additional Tier 1 capital (AT1)	750	650
Primary capital fund	3 687	3 475
Gift fund	125	125
Dividend equalisation fund	2 306	2 205
Proposed dividend for EC holders	311	371
Proposed dividend for the local community	332	376
Liability credit reserve	-43	-13
Other equity	188	147
Total equity	9 026	8 680

Tier 1 capital (T1)	31.12.2024	31.12.2023
Goodwill, intangible assets and other deductions	-63	-59
Value adjustments of financial instruments at fair value	-19	-17
Deduction of overfunded pension liability	-60	-48
Deduction of remaining permission for the acquisition of own equity certificates	-73	-61
Additional Tier 1 capital (AT1)	-750	-650
Expected IRB-losses exceeding ECL calculated according to IFRS 9	-376	-242
Deduction for proposed dividend	-311	-371
Deduction for proposed dividend for the local community	-332	-376
Total Common Equity Tier 1 capital (CET1)	7 042	6 856
Additional Tier 1 capital - classified as equity	750	650
Additional Tier 1 capital - classified as debt	0	0
Total Tier 1 capital (T1)	7 792	7 506

Tier 2 capital (T2)	31.12.2024	31.12.2023
Subordinated loan capital of limited duration	857	857
Total Tier 2 capital (T2)	857	857
Net equity and subordinated loan capital	8 649	8 363

Risk weighted assets (RWA) by exposure classes

Credit risk - standardised approach	31.12.2024	31.12.2023
Central governments or central banks	0	0
Local and regional authorities	370	389
Public sector companies	0	207
Institutions	270	240
Covered bonds	607	550
Equity	348	347
Other items	515	547
Total credit risk - standardised approach	2 109	2 280

Credit risk - IRB Foundation	31.12.2024	31.12.2023
Retail - Secured by real estate	12 910	11 995
Retail - Other	256	295
Corporate lending	21 630	19 444
Total credit risk - IRB-Foundation	34 797	31 734

Market risk (standardised approach)	135	161
Operational risk (basic indicator approach)	3 962	3 424
Risk weighted assets (RWA)	41 003	37 599

Minimum requirement Common Equity Tier 1 capital (4.5 %)	1 845	1 692

Buffer requirements	31.12.2024	31.12.2023
Capital conservation buffer , 2.5 %	1 025	940
Systemic risk buffer, 4.5 %	1 845	1 692
Countercyclical buffer, 2.5 %	1 025	940
Total buffer requirements for Common Equity Tier 1 capital		3 572
Available Common Equity Tier 1 capital after buffer requirements		1 592

Capital adequacy as a percentage of risk weighted assets (RWA)	31.12.2024	31.12.2023
Capital adequacy ratio	21.1	22.2
Tier 1 capital ratio	19.0	20.0
Common Equity Tier 1 capital ratio	17.2	18.2

Leverage Ratio (LR)	31.12.2024	31.12.2023
Basis for calculation of leverage ratio	105 407	99 794
Leverage Ratio (LR)	7.4	7.5

Operating segments

Result - Q4 2024	Group	Eliminations	Other 2)	Corporate	Retail 1)	Real estate brokerage
Net interest income	522	0	85	212	225	0
Other operating income	67	-18	-2	31	45	11
Total income	589	-18	83	243	270	11
Operating expenses	235	-18	36	48	154	15
Profit before impairment	354	0	47	195	116	-4
Impairment on loans, guarantees etc.	21	0	0	27	-6	0
Pre-tax profit	333	0	47	168	122	-4
Taxes	82
Profit after tax	251

Result - 31.12.2024	Group	Eliminations	Other 2)	Corporate	Retail 1)	Real estate brokerage
Net interest income	2 071	1	355	813	902	0
Other operating income	330	-70	101	113	138	48
Total income	2 401	-69	456	926	1 040	48
Operating costs	955	-69	203	183	588	50
Profit before impairment	1 446	0	253	743	452	-2
Impairment on loans, guarantees etc.	20	0	0	59	-39	0
Pre-tax profit	1 426	0	253	684	491	-2
Taxes	340
Profit after tax	1 086

Key figures - 31.12.2024	Group	Eliminations	Other 2)	Corporate	Retail 1)	Real estate brokerage
Gross loans to customers 1)	87 127	-103	1 553	27 423	58 254	0
Expected credit loss on loans	-252	0	0	-188	-64	0
Net loans to customers	86 875	-103	1 553	27 235	58 190	0
Deposits from customers 1)	49 550	-150	1 234	16 104	32 362	0
Guarantee liabilities	2 208	0	0	2 207	1	0
Expected credit loss on guarantee liabilities	11	0	0	11	0	0
The deposit-to-loan ratio	56.9	145.6	79.5	58.7	55.6	0.0
Man-years	402	0	155	59	166	22

Result - Q4 2023	Group	Eliminations	Other 2)	Corporate	Retail 1)	Real estate brokerage
Net interest income	506	0	80	197	229	0
Other operating income	71	-18	17	34	31	7
Total income	577	-18	97	231	260	7
Operating expenses	242	-15	66	45	137	9
Profit before impairment	335	-3	31	186	123	-2
Impairment on loans, guarantees etc.	-117	0	0	-122	5	0
Pre-tax profit	452	-3	31	308	118	-2
Taxes	112
Profit after tax	340

Result - 31.12.2023	Group	Eliminations	Other 2)	Corporate	Retail 1)	Real estate brokerage
Net interest income	1 900	1	256	745	898	0
Other operating income	295	-68	93	114	122	34
Total income	2 195	-67	349	859	1 020	34
Operating costs	859	-64	209	164	516	34
Profit before impairment	1 336	-3	140	695	504	0
Impairment on loans, guarantees etc.	-53	0	0	-62	9	0
Pre-tax profit	1 389	-3	140	757	495	0
Taxes	334
Profit after tax	1 055

Key figures - 31.12.2023	Group	Eliminations	Other 2)	Corporate	Retail 1)	Real estate brokerage
Gross loans to customers 1)	81 834	-107	1 485	26 524	53 932	0
Expected credit loss on loans	-262	0	-1	-159	-102	0
Net loans to customers	81 572	-107	1 484	26 365	53 830	0
Deposits from customers 1)	47 410	-100	873	15 254	31 383	0
Guarantee liabilities	1 249	0	0	1 247	2	0
Expected credit loss on guarantee liabilities	4	0	0	4	0	0
The deposit-to-loan ratio	57.9	93.5	58.8	57.5	58.2	0.0
Man-years	400	0	148	59	170	23

1) The subsidiary, Møre Boligkreditt AS, is part of the bank's retail segment. The mortgage company's main objective is to issue covered bonds for both national and international investors, and the company is part of Sparebanken Møre's long-term financing strategy. Key figures for Møre Boligkreditt AS are displayed in a separate table.

	MØRE BOLIGKREDITT AS
Statement of income	Q4 2024	Q4 2023	31.12.2024	31.12.2023
Net interest income	67	57	283	237
Other operating income	0	-14	-12	-14
Total income	67	43	271	223
Operating expenses	17	15	60	58
Profit before impairment on loans	50	28	211	165
Impairment on loans, guarantees etc.	0	0	-6	1
Pre-tax profit	50	28	217	164
Taxes	11	6	48	36
Profit after tax	39	22	169	128

Balance sheet	31.12.2024	31.12.2023
Loans to and receivables from customers	35 746	32 357
Total equity	1 776	1 665

Loans and deposits broken down according to sectors

The loan portfolio with agreed floating interest is measured at amortised cost, while the loan portfolio with fixed interest rates is measured at fair value.

31.12.2024		GROUP
Sector/industry	Gross loans at amortised cost	ECL Stage 1	ECL Stage 2	ECL Stage 3	Loans at fair value	Net loans
Agriculture and forestry	769	0	0	-12	49	806
Fisheries	4 993	-6	-39	0	2	4 950
Manufacturing	3 650	-4	-17	-11	6	3 624
Building and construction	1 371	-2	-3	-9	4	1 361
Wholesale and retail trade, hotels	1 458	-1	-5	-5	18	1 465
Supply/Oil services	1 277	-2	-8	0	0	1 267
Property management	9 588	-8	-5	-5	106	9 676
Professional/financial services	1 241	-1	-7	-3	35	1 265
Transport and private/public services/abroad	4 627	-3	-14	-6	61	4 665
Total corporate/public entities	28 974	-27	-98	-51	281	29 079
Retail customers	53 602	-6	-16	-54	4 270	57 796
Total loans to and receivables from customers	82 576	-33	-114	-105	4 551	86 875

31.12.2023 Sector/industry		GROUP
	Gross loans at amortised cost	ECL Stage 1	ECL Stage 2	ECL Stage 3	Loans at fair value	Net loans
Agriculture and forestry	711	0	-3	-8	41	741
Fisheries	4 998	-1	-26	0	2	4 973
Manufacturing	3 526	-5	-9	-4	6	3 514
Building and construction	1 160	-2	-6	-21	6	1 137
Wholesale and retail trade, hotels	1 200	-1	-4	-3	9	1 201
Supply/Oil services	1 600	-9	0	0	0	1 591
Property management	8 957	-11	-7	-8	97	9 028
Professional/financial services	797	-1	-1	-2	25	818
Transport and private/public services/abroad	4 865	-6	-7	-5	39	4 886
Total corporate/public entities	27 814	-36	-63	-51	225	27 889
Retail customers	50 737	-11	-54	-47	3 058	53 683
Total loans to and receivables from customers	78 551	-47	-117	-98	3 283	81 572

Deposits with agreed floating interest rates are measured at amortised cost, fixed-interest rate deposits with maturities less than one year are measured at amortised cost and fixed-interest rate deposits with maturities in excess of one year are classified at fair value and secured by interest rate swaps.

DEPOSITS FROM CUSTOMERS	GROUP
Sector/industry	31.12.2024	31.12.2023
Agriculture and forestry	332	278
Fisheries	1 727	1 556
Manufacturing	3 820	3 387
Building and construction	861	967
Wholesale and retail trade, hotels	1 196	1 098
Property management	2 690	2 502
Transport and private/public services	6 111	5 308
Public administration	251	657
Others	2 413	2 431
Total corporate/public entities	19 401	18 184
Retail customers	30 149	29 226
Total	49 550	47 410

Losses and impairments on loans and guarantees Methodology for measuring expected credit losses (ECL) according to IFRS 9 For a detailed description of the bank's loss model, please see note 9 in the annual report for 2023.

Sparebanken Møre has developed an ECL model based on the Group's IRB parameters and applies a threestage approach when assessing ECL on loans to customers and financial guarantees in accordance with IFRS 9.

Stage 1: At initial recognition and if there's no significant increase in credit risk, the commitment is classified in stage 1 with 12-months ECL.

Stage 2: If a significant increase in credit risk since initial recognition is identified, but without evidence of loss, the commitment is transferred to stage 2 with lifetime ECL measurement.

Stage 3: If the credit risk increases further, including evidence of loss, the commitment is transferred to stage 3 with lifetime ECL measurement. The commitment is considered to be credit-impaired. As opposed to stage 1 and 2, the effective interest rate in stage 3 is calculated on net impaired commitment (total commitment less expected credit loss) instead of gross commitment.

Staging is performed at account level and implies that two or more accounts held by the same customer can be placed in different stages. If a customer has one account in stage 3 (risk classes K, M or N), all of the customer's accounts will migrate to stage 3.

Customers in risk class N have been subject to individual loss assessment with impairment. In connection with individual loss assessment, 3 scenarios based on calculation of the weighted present value of future cash flow after realisation of collateral are prepared. If the weighted present value of cash flow after realisation of collateral is positive, model-based loss provisions according to the ECL model is used.

An increase in credit risk reflects both customer-specific circumstances and development in relevant macro factors for the particular customer segment. The assessment of what is considered to be a significant increase in credit risk is based on a combination of quantitative and qualitative indicators.

Quantitative criteria

A significant increase in credit risk is determined by comparing the PD at the reporting date with PD at initial recognition. If the actual PD is higher than initial PD, an assessment is made of whether the increase is significant.

Significant increase in credit risk since initial recognition is considered to have occurred when either

• PD has increased by 100 per cent or more and the increase in PD is more than 0.5 percentage points, or
• PD has increased by more than 2,0 percentage points
• The customer's agreed payments are overdue by more than 30 days

The weighted, macro adjusted PD in year 1 is used for comparison with PD on initial recognition to determine whether the credit risk has increased significantly.

Qualitative criteria

In addition to the quantitative assessment of changes in the PD, a qualitative assessment is made to determine whether there has been a significant increase in credit risk, for example, if the commitment is subject to special monitoring.

Credit risk is always considered to have increased significantly if the customer has been granted

forbearance measures, though it is not severe enough to be individually assessed in stage 3.

Positive migration in credit risk

A customer migrates from stage 2 to stage 1 if:

• The criteria for migration from stage 1 to stage 2 is no longer present, and
• this is satisfied for at least one subsequent month (total 2 months)

A customer migrates from stage 3 to stage 1 or stage 2 if the customer no longer meets the conditions for migration to stage 3:

• The customer migrates to stage 2 if more than 30 days in default.
• Otherwise, the customer migrates to stage 1.

Accounts that are not subject to the migration rules above are not expected to have significant change in credit risk and retain the stage from the previous month.

Customers who are going through a probation period after default (at least 3 or 12 months), are initially held in stage 3. The customers canbe overridden to stage 2 if that is considered to give the best estimate of expected credit loss.

Scenarios

Three scenarios are developed: Best, Basis and Worst. For each of the scenarios, expected values of different parameters are given, for each of the next five years. The possibility for each of the scenarios to occur is also estimated. After five years, the scenarios are expected to converge to a long-term stable level.

Changes to PD as a result of scenarios, may also affect the staging.

Definition of default, credit-impaired and forbearance

The definition of default is similar to that used in the capital adequacy regulation.

A commitment is defined to be subject to forbearance (payment relief due to payment difficulties) if the bank agrees to changes in the terms and conditions as a result of the debtor having problems meeting payment obligations. Performing forbearance (not in default) is placed in stage 2 whereas non-performing (defaulted) forbearance is placed in stage 3.

Management override

Quarterly review meetings evaluate the basis for the accounting of ECL losses. If there are significant events that will affect an estimated loss which the model has not taken into account, relevant factors in the ECL model will be overridden. An assessment is made of the level of long-term PD and LGD in stage 2 and stage 3 under different scenarios, as well as an assessment of macro factors and weighting of scenarios.

Consequences of increased macroeconomic uncertainty and measurement of expected credit loss (ECL) for loans and guarantees

The bank's loss provisions reflect expected credit loss (ECL) pursuant to IFRS 9. When assessing ECL, the relevant conditions at the time of reporting and expected economic developments are taken into account.

The geopolitical situation, both in Europe and elsewhere, still poses considerable uncertainty. In addition, there is still uncertainty related to the growth outlook in the global economy. The political direction that the United States seems to be taking under the president-elect is adding to this uncertainty. The prospect of increased tariff barriers and a trade war may lead to volatility int financial markets and, in the long term, lower growth in the global economy.

The backdrop is that inflation continues to decline, and inflation is now approaching the target of two per cent in several Western countries. This has opened the way for interest rate cuts among several of our trading partners. Sweden, the euro area, the US and the UK are all well on their way to reducing interest rates down from the recent tightening level. More interest rate cuts are expected in the coming months.

A weak NOK has contributed to Norges Bank being somewhat more cautious. However, it is also crucial that the overall activity in the Norwegian economy has held up better than expected. The message from the governor of Norges Bank, is that the time is approaching to reduce the policy rate in Norway as well. The latest interest rate path indicates that the first rate cut will come in March 2025, followed by a further 2-3 rate cuts before the end of the year.

So far, no significant increase in arrears and forbearance has been observed as a result of increased interest costs and higher inflation.

The ECL as of 31.12.2024 is based on a scenario weighting with 70 per cent weight on the baseline scenario (normal development), 20 per cent weight on the worst-case scenario and 10 per cent weight on the bestcase scenario.

Climate risk and calculation of expected credit losses

The bank is in the process of mapping and highlighting climate risk in the bank's lending portfolio and in the various industries. The assessments are so far a qualitative analysis, lack of data and experience make the quantitative and objective assessment challenging. Climate risk is reported in line with the TCDF (Task Force on Climate related Financial Disclosure) in a separate section of the 2023 annual report.

The ECL-model is intended to be expectations-oriented, and the bank has so far assessed that the qualitative climate risk analyses are fraught with a high degree of uncertainty and thus not taken into account when assessing expected credit losses.

GROUP	Q4 2024	Q4 2023	2024	2023
Changes in ECL - stage 1 (model-based)	-8	-10	-14	9
Changes in ECL - stage 2 (model-based)	22	11	3	16
Changes in ECL - stage 3 (model-based)	11	11	7	13
Changes in individually assessed losses	-10	-141	3	-114
Confirmed losses covered by previous individual impairment	6	14	30	23
Confirmed losses, not previously impaired	3	0	4	6
Recoveries	-3	-2	-13	-6
Total impairments on loans and guarantees	21	-117	20	-53

Specification of credit loss in the income statement

Changes in the loss provisions/ECL recognised in the balance sheet in the period

GROUP - 31.12.2024	Stage 1	Stage 2	Stage 3	Total
ECL 31.12.2023	48	120	98	266
New commitments	14	32	11	57
Disposal of commitments and transfer to stage 3 (individually assessed)	-15	-28	-10	-53
Changes in ECL in the period for commitments which have not migrated	-14	20	1	7
Migration to stage 1	4	-47	-6	-49
Migration to stage 2	-3	30	-21	6
Migration to stage 3	0	-4	31	27
Changes stage 3 (individually assessed)	-	-	2	2
ECL 31.12.2024	34	123	106	263
- of which expected losses on loans to retail customers	6	16	54	76
- of which expected losses on loans to corporate customers	27	98	51	176
- of which expected losses on guarantee liabilities	1	9	1	11

GROUP - 31.12.2023	Stage 1	Stage 2	Stage 3	Total
ECL 31.12.2022	39	104	198	341
New commitments	19	31	2	52
Disposal of commitments and transfer to stage 3 (individually assessed)	-9	-25	-8	-42
Changes in ECL in the period for commitments which have not migrated	-3	1	1	-1
Migration to stage 1	8	-30	0	-22
Migration to stage 2	-6	43	-2	35
Migration to stage 3	0	-4	20	16
Changes stage 3 (individually assessed)	-	-	-113	-113
ECL 31.12.2023	48	120	98	266
- of which expected losses on loans to retail customers	11	54	47	112
- of which expected losses on loans to corporate customers	36	63	51	150
- of which expected losses on guarantee liabilities	1	3	0	4

Commitments (exposure) divided into risk groups based on probability of default

GROUP - 31.12.2024	Stage 1	Stage 2	Stage 3	Total
Low risk (0 % - < 0.5 %)	66 507	379	-	66 886
Medium risk (0.5 % - < 3 %)	13 886	5 597	-	19 483
High risk (3 % - <100 %)	1 262	3 447	-	4 709
PD = 100 %	-	91	420	511
Total commitments before ECL	81 655	9 514	420	91 589
- ECL	-34	-123	-106	-263
Total net commitments *)	81 621	9 391	314	91 326
Gross commitments with overridden migration	0	91	-91	0

GROUP - 31.12.2023	Stage 1	Stage 2	Stage 3	Total
Low risk (0 % - < 0.5 %)	59 308	3 032	-	62 340
Medium risk (0.5 % - < 3 %)	10 109	7 709	-	17 818
High risk (3 % - <100 %)	1 648	3 008	-	4 656
PD = 100 %	-	-	425	425
Total commitments before ECL	71 065	13 749	425	85 239
- ECL	-48	-120	-98	-266
Total net commitments *)	71 017	13 629	327	84 973
Gross commitments with overridden migration	416	-416	0	0

*) The tables above are based on exposure (incl. undrawn credit facilities and guarantee liabilities) and are not including fixed rate loans assessed at fair value. The figures are thus not reconcilable against the balance sheet.

Credit-impaired commitments

The table shows total commitments in default for more than 90 days and other credit-impaired commitments (less than 90 days). Customers who have been in default must go through a probation period with 100 per cent PD for at least three months before they are scored as non-defaulted. These customers are included in gross credit-impaired commitments.

	31.12.2024		31.12.2023
GROUP	Total	Retail	Corporate	Total	Retail	Corporate
Gross commitments in default for more than 90 days	159	81	78	96	56	40
Gross other credit-impaired commitments	352	129	223	329	166	163
Gross credit-impaired commitments	511	210	301	425	222	203
ECL on commitments in default for more than 90 days	40	20	20	26	14	12
ECL on other credit-impaired commitments	76	31	45	72	33	39
ECL on credit-impaired commitments	116	51	65	98	47	51
Net commitments in default for more than 90 days	119	61	58	70	42	28
Net other credit-impaired commitments	276	98	178	257	133	124
Net credit-impaired commitments	395	159	236	327	175	152
Total gross loans to customers - Group	87 128	57 872	29 256	81 834	53 795	28 039
Guarantees - Group	2 208	1	2 207	1 249	2	1 247
Gross credit-impaired commitments in % of loans/guarantee liabilities	0.58%	0.36%	0.97%	0.51%	0.41%	0.69%
Net credit-impaired commitments in % loans/guarantee liabilities	0.45%	0.27%	0.77%	0.39%	0.33%	0.52%

Commitments with probation period	31.12.2024		31.12.2023
GROUP	Total	Retail	Corporate	Total	Retail	Corporate
Gross commitments with probation period	147	44	103	111	72	39
Gross commitments with probation period in % of gross credit-impaired commitments	29%	21%	34%	26%	32%	19%

Other income

(NOK million)	2024	2023
Guarantee commission	27	27
Income from the sale of insurance services (non-life/personal)	33	29
Income from the sale of shares in unit trusts/securities	15	17
Income from Discretionary Portfolio Management	55	47
Income from payment transfers	99	95
Other fees and commission income	42	43
Commission income and income from banking services	271	258
Commission expenses and expenses from banking services	-40	-42
Income from real estate brokerage	47	33
Other operating income	9	1
Total other operating income	56	34
Net commission and other operating income	287	250
Interest hedging (for customers)	17	16
Currency hedging (for customers)	31	31
Dividend received	14	1
Net gains/losses on shares	-9	10
Net gains/losses on bonds	-8	-2
Change in value of fixed-rate loans	-6	17
Derivates related to fixed-rate lending	-1	-26
Change in value of issued bonds	-252	-1172
Derivates related to issued bonds	259	1173
Net gains/losses related to buy back of outstanding bonds	-2	-3
Net result from financial instruments	43	45
Total other income	330	295

The following table lists commission income and expenses covered by IFRS 15 broken down by the largest main items and allocated per segment.

Net commission and other operating income - 31.12.2024	Group	Other	Corporate	Retail	Real estate brokerage
Guarantee commission	27	1	26	0	0
Income from the sale of insurance services	33	3	3	27	0
Income from the sale of shares in unit trusts/securities	15	2	1	12	0
Income from Discretionary Portfolio Management	55	3	27	25	0
Income from payment transfers	99	7	23	68	0
Other fees and commission income	42	3	21	18	0
Commission income and income from banking services	271	19	101	151	0
Commission expenses and expenses from banking services	-40	-16	-2	-22	0
Income from real estate brokerage	47	0	0	0	47
Other operating income	9	5	0	4	0
Total other operating income	56	5	0	4	47
Net commision and other operating income	287	8	99	133	47

Net commission and other operating income - 31.12.2023	Group	Other	Corporate	Retail	Real estate brokerage
Guarantee commission	27	0	27	0	0
Income from the sale of insurance services	29	2	3	24	0
Income from the sale of shares in unit trusts/securities	17	3	0	14	0
Income from Discretionary Portfolio Management	47	3	23	21	0
Income from payment transfers	95	9	20	66	0
Other fees and commission income	43	3	22	18	0
Commission income and income from banking services	258	20	95	143	0
Commission expenses and expenses from banking services	-42	-16	-2	-24	0
Income from real estate brokerage	33	0	0	0	33
Other operating income	1	1	0	0	0
Total other operating income	34	1	0	0	33
Net commision and other operating income	250	5	93	119	33

Operating expenses

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

Classification of financial instruments

Financial assets and financial liabilities are recognised in the balance sheet at the date when the Group becomes a party to the contractual provisions of the instrument. A financial asset is derecognised when the contractual rights to the cash flows from the financial asset expire, or the company transfers the financial asset in such a way that risk and profit potential of the financial asset is substantially transferred. Financial liabilities are derecognised from the date when the rights to the contractual provisions have been extinguished, cancelled or expired.

CLASSIFICATION AND MEASUREMENT

The Group's portfolio of financial instruments is at initial recognition classified in accordance with IFRS 9. Financial assets are classified in one of the following categories:

• Amortised cost
• Fair value with value changes through the income statement

The classification of the financial assets depends on two factors:

• The purpose of the acquisition of the financial instrument
• The contractual cash flows from the financial assets

Financial assets measured at amortised cost

The classification of the financial assets assumes that the following requirements are met:

• The asset is acquired to receive contractual cash flows
• The contractual cash flows consist solely of principal and interest

All lending and receivables, except fixed interest rate loans, are recorded in the group accounts at amortised cost, based on expected cash flows. The difference between the issue cost and the settlement amount at maturity, is amortised over the lifetime of the loan.

Financial liabilities measured at amortised cost

Debt securities, including debt securities included in fair value hedging, loans and deposits from credit institutions and deposits from customers, are valued at amortised cost based on expected cash flows. The portfolio of own bonds is shown in the accounts as a reduction of the debt.

Financial instruments measured at fair value, any changes in value recognised through the income statement

The Group's portfolio of bonds in the liquidity portfolio is classified at fair value through the income statement. The portfolio is held solely for liquidity management and is traded to optimize returns within current quality requirements for the liquidity portfolio.

The Group's portfolio of fixed interest rate loans is measured at fair value to avoid accounting mismatch in relation to the underlying interest rate swaps.

Fixed interest rate deposits from customers with maturities in excess of one year are classified at fair value and secured by interest rate swaps.

Financial derivatives are contracts signed to mitigate an existing interest rate or currency risk incurred by the Group. Financial derivatives are recognised at fair value through the income statement and recognised gross per contract as an asset or a liability.

The Group's portfolio of shares is measured at fair value with any value changes through the income statement.

Losses and gains as a result of value changes on assets and liabilities measured at fair value, with any value changes being recognised in the income statement, are included in the accounts during the period in which they occur.

LEVELS IN THE VALUATION HIERARCHY

Financial instruments are classified into different levels based on the quality of market data for each type of instrument.

Level 1 – Valuation based on prices in an active market

Level 1 comprises financial instruments valued by using quoted prices in active markets for identical assets or liabilities. This category includes listed shares, as well as bonds and certificates in LCR-level 1, traded in active markets.

Level 2 – Valuation based on observable market data

Level 2 comprises financial instruments valued by using information which is not quoted prices, but where prices are directly or indirectly observable for assets or liabilities, including quoted prices in inactive markets for identical assets or liabilities. This category includes derivatives, as well as bonds which are not included in level 1.

Level 3 – Valuation based on other than observable market data

Level 3 comprises financial instruments which cannot be valued based on directly or indirectly observable prices. This category includes loans to customers, as well as shares.

GROUP - 31.12.2024	Financial instruments at fair value through profit and loss	Financial instruments measured at amortised cost	Total book value
Cash and receivables from Norges Bank		447	447
Loans to and receivables from credit institutions		702	702
Loans to and receivables from customers	4 551	82 324	86 875
Certificates and bonds	12 144		12 144
Shares and other securities	199		199
Financial derivatives	1 393		1 393
Total financial assets	18 287	83 473	101 760
Loans and deposits from credit institutions		1 994	1 994
Deposits from and liabilities to customers	131	49 419	49 550
Financial derivatives	719		719
Debt securities		38 906	38 906
Subordinated loan capital		857	857
Total financial liabilities	850	91 176	92 026

GROUP - 31.12.2023	Financial instruments at fair value through profit and loss	Financial instruments measured at amortised cost	Total book value
Cash and receivables from Norges Bank		266	266
Loans to and receivables from credit institutions		919	919
Loans to and receivables from customers	3 283	78 289	81 572
Certificates and bonds	11 898		11 898
Shares and other securities	217		217
Financial derivatives	1 336		1 336
Total financial assets	16 734	79 474	96 208
Loans and deposits from credit institutions		1 727	1 727
Deposits from and liabilities to customers	138	47 272	47 410
Financial derivatives	603		603
Debt securities		36 170	36 170
Subordinated loan capital		857	857
Total financial liabilities	741	86 026	86 767

Financial instruments at amortised cost

GROUP	31.12.2024		31.12.2023
	Fair value	Book value	Fair value	Book value
Cash and receivebles from Norges Bank	447	447	266	266
Loans to and receivables from credit institutions	702	702	919	919
Loans to and receivables from customers	82 324	82 324	78 289	78 289
Total financial assets	83 473	83 473	79 474	79 474
Loans and deposits from credit institutions	1 994	1 994	1 727	1 727
Deposits from and liabilities to customers	49 419	49 419	47 272	47 272
Debt securities issued	39 197	38 906	36 276	36 170
Subordinated loan capital	866	857	857	857
Total financial liabilities	91 476	91 176	86 132	86 026

Financial instruments at fair value

A change in the discount rate of 10 basis points will have an impact of about NOK 10.2 million on loans with fixed interest rate.

Based on prices in an active market	Observable market information	Other than observable market information
Level 1	Level 2	Level 3	Total
			-
			-
		4 551	4 551
9 096	3 048		12 144
6		193	199
	1 393		1 393
9 102	4 441	4 744	18 287
			-
		131	131
			-
			-
	719		719
-	719	131	850

GROUP - 31.12.2023	Based on prices in an active market	Observable market information	Other than observable market information
	Level 1	Level 2	Level 3	Total
Cash and receivables from Norges Bank				-
Loans to and receivables from credit institutions				-
Loans to and receivables from customers			3 283	3 283
Certificates and bonds	8 572	3 326		11 898
Shares and other securities	5		212	217
Financial derivatives		1 336		1 336
Total financial assets	8 577	4 662	3 495	16 734
Loans and deposits from credit institutions				-
Deposits from and liabilities to customers			138	138
Debt securities				-
Subordinated loan capital				-
Financial derivatives		603		603
Total financial liabilities	-	603	138	741

Reconciliation of movements in level 3 during the period

GROUP	Loans to and receivables from customers	Shares	Deposits from customers
Book value as at 31.12.2023	3 283	212	138
Purchases/additions	1 869	4	0
Sales/reduction	-595	-13	-6
Transferred to Level 3	0	0	0
Transferred from Level 3	0	0	0
Net gains/losses in the period	-6	-10	-1
Book value as at 31.12.2024	4 551	193	131

GROUP	Loans to and receivables from customers	Shares	Deposits from customers
Book value as at 31.12.2022	3 415	207	48
Purchases/additions	597	10	89
Sales/reduction	-746	0	0
Transferred to Level 3	0	0	0
Transferred from Level 3	0	-8	0
Net gains/losses in the period	17	3	1
Book value as at 31.12.2023	3 283	212	138

Issued covered bonds

The debt securities of the Group consist of covered bonds quoted in Norwegian kroner (NOK) and Euro (EUR) issued by Møre Boligkreditt AS, in addition to certificates and bonds quoted in NOK issued by Sparebanken Møre. The table below provides an overview of the Group's issued covered bonds.

Issued covered bonds in the Group (NOK million)
ISIN code	Curr.	Nominal value in currency 31.12.2024	Interest	Issued	Maturity	Book value 31.12.2024	Book value 31.12.2023
NO0010588072	NOK	1 050	fixed NOK 4.75 %	2010	2025	1 060	1 066
XS0968459361	EUR	25	fixed EUR 2.81 %	2013	2028	299	289
NO0010819543	NOK	-	3M Nibor + 0.42 %	2018	2024	-	2 351
NO0010836489	NOK	1 000	fixed NOK 2.75 %	2018	2028	940	956
NO0010853096	NOK	2 000	3M Nibor + 0.37 %	2019	2025	2 010	3 015
XS2063496546	EUR	-	fixed EUR 0.01 %	2019	2024	-	2 734
NO0010884950	NOK	3 000	3M Nibor + 0.42 %	2020	2025	3 006	3 006
XS2233150890	EUR	30	3M Euribor + 0.75 %	2020	2027	359	345
NO0010951544	NOK	6 000	3M Nibor + 0.75 %	2021	2026	6 063	5 074
XS2389402905	EUR	250	fixed EUR 0.01 %	2021	2026	2 826	2 625
XS2556223233	EUR	250	fixed EUR 3.125 %	2022	2027	2 965	2 823
NO0012908617	NOK	6 000	3M Nibor + 0.54 %	2023	2028	6 043	4 027
XS2907263284	EUR	500	fixed EUR 2,63 %	2024	2029	5 932	-
Total covered bonds issued by Møre Boligkreditt AS (incl. accrued interests)					31 503	28 311

As at 31.12.2024, Sparebanken Møre held NOK 281 million in covered bonds, including accrued interest, issued by Møre Boligkreditt AS (NOK 0 million). Møre Boligkreditt AS held no own covered bonds as at 31.12.2024 (NOK 0 million).

Transactions with related parties

These are transactions between the parent bank and wholly-owned subsidiaries based on arm's length principles.

The most important transactions eliminated in the Group accounts:

PARENT BANK	31.12.2024	31.12.2023
Statement of income
Net interest and credit commission income from subsidiaries	131	146
Received dividend from subsidiaries	132	152
Administration fee received from Møre Boligkreditt AS	50	49
Rent paid to Sparebankeiendom AS and Storgata 41-45 Molde AS	15	15
Balance sheet
Claims on subsidiaries	4 513	3 983
Covered bonds	281	0
Liabilities to subsidiaries	2 061	1 484
Intragroup right-of-use of properties in Sparebankeiendom AS and Storgata 41-45 Molde AS	59	70
Intragroup hedging	465	306
Accumulated loan portfolio transferred to Møre Boligkreditt AS	35 751	32 369

EC capital

The 20 largest EC holders in Sparebanken Møre as at 31.12.2024 (grouped)	Number of ECs	Percentage share of EC capital
Sparebankstiftelsen Tingvoll	4 837 394	9.71
Verdipapirfondet Eika egenkapital	2 447 968	4.92
Wenaasgruppen AS	2 200 000	4.42
Spesialfondet Borea utbytte	2 064 668	4.15
Verdipapirfond Pareto Aksje Norge	1 829 227	3.67
MP Pensjon	1 798 905	3.61
Kommunal Landspensjonskasse	1 692 107	3.40
J.P. Morgan SE (nominee)	1 687 199	3.39
Wenaas EFTF AS	1 100 000	2.21
VPF Fondsfinans utbytte	800 000	1.61
Beka Holding AS	750 500	1.51
Lapas AS	627 000	1.26
BKK Pensjonskasse	470 888	0.95
Forsvarets personellservice	461 000	0.93
Sparebankstiftelsen Sparebanken Møre	360 750	0.72
Hjellegjerde Invest AS	300 000	0.60
Sparebanken Møre	259 658	0.52
U Aandahls Eftf AS	250 000	0.50
PIBCO AS	229 500	0.46
Kveval AS	218 124	0.44
Total 20 largest EC holders	24 384 888	48.97
Total number of ECs	49 795 520	100.00

The proportion of equity certificates held by foreign nationals was 5.7 per cent at the end of the 4th quarter of 2024.

During the 4th quarter of 2024, Sparebanken Møre has acquired 88,000 of its own ECs.

Events after the reporting period

No events have occurred after the reporting period that will materially affect the figures presented as at 31 December 2024.

Statement of income - Parent bank

STATEMENT OF INCOME - PARENT BANK (COMPRESSED)

(NOK million)	Q4 2024	Q4 2023	2024	2023
Interest income from assets at amortised cost	865	831	3 524	2 932
Interest income from assets at fair value	205	172	702	560
Interest expenses	614	552	2 434	1 825
Net interest income	456	451	1 792	1 667
Commission income and revenues from banking services	76	72	271	257
Commission expenses and expenditure from banking services	10	10	39	41
Other operating income	18	13	58	50
Net commission and other operating income	84	75	290	266
Dividends	7	0	146	154
Net change in value of financial instruments	-19	7	52	43
Net result from financial instruments	-12	7	198	197
Total other income	72	82	488	463
Total income	528	533	2 280	2 130
Salaries, wages etc.	123	128	494	458
Depreciation and impairment of non-financial assets	17	15	65	59
Other operating expenses	81	90	347	308
Total operating expenses	221	233	906	825
Profit before impairment on loans	307	300	1 374	1 305
Impairment on loans, guarantees etc.	24	-125	37	-68
Pre-tax profit	283	425	1 337	1 373
Taxes	72	106	292	296
Profit after tax	211	319	1 045	1 077
Allocated to equity owners	195	306	982	1 029
Allocated to owners of Additional Tier 1 capital	16	13	63	48
Profit per EC (NOK) 1)	1.65	3.07	9.55	10.34
Diluted earnings per EC (NOK) 1)	1.65	3.07	9.55	10.34
Distributed dividend per EC (NOK)	0.00	0.00	7.50	4.00

STATEMENT OF COMPREHENSIVE INCOME - PARENT BANK (COMPRESSED)

(NOK million)	Q4 2024	Q4 2023	2024	2023
Profit after tax	211	319	1 045	1 077
Items that may subsequently be reclassified to the income statement:
Basisswap spreads - changes in value	0	0	0	0
Tax effect of changes in value on basisswap spreads	0	0	0	0
Items that will not be reclassified to the income statement:
Pension estimate deviations	9	1	9	1
Tax effect of pension estimate deviations	-2	0	-2	0
Total comprehensive income after tax	218	320	1 052	1 078
Allocated to equity owners	202	307	989	1 030
Allocated to owners of Additional Tier 1 capital	16	13	63	48

1) Calculated using the EC-holders' share (48.4 %) of the period's profit to be allocated to equity owners.

Balance sheet - Parent bank

ASSETS (COMPRESSED)

(NOK million)	31.12.2024	31.12.2023
Cash and receivables from Norges Bank	447	266
Loans to and receivables from credit institutions	5 111	4 796
Loans to and receivables from customers	51 232	49 321
Certificates, bonds and other interest-bearing securities	12 217	11 744
Financial derivatives	985	937
Shares and other securities	199	217
Equity stakes in Group companies	1 671	1 571
Deferred tax asset	8	0
Intangible assets	59	58
Fixed assets	158	153
Overfunded pension liability	80	59
Other assets	205	203
Total assets	72 372	69 325

LIABILITIES AND EQUITY (COMPRESSED)

(NOK million)	31.12.2024	31.12.2023
Loans and deposits from credit institutions	3 116	2 550
Deposits from customers	49 699	47 510
Debt securities issued	7 683	7 859
Financial derivatives	1 080	840
Incurred costs and prepaid income	96	93
Pension liabilities	23	28
Tax payable	347	268
Provisions for guarantee liabilities	11	4
Deferred tax liabilities	0	45
Other liabilites	579	725
Subordinated loan capital	857	857
Total liabilities	63 491	60 779

EC capital	996	989
ECs owned by the bank	-5	-4
Share premium	379	359
Additional Tier 1 capital	750	650
Paid-in equity	2 120	1 994
Primary capital fund	3 687	3 475
Gift fund	125	125
Dividend equalisation fund	2 306	2 205
Other equity	643	747
Retained earnings	6 761	6 552
Total equity	8 881	8 546
Total liabilities and equity	72 372	69 325

Profit performance - Group

QUARTERLY PROFIT

(NOK million)	Q4 2024	Q3 2024	Q2 2024	Q1 2024	Q4 2023
Net interest income	522	523	518	508	506
Other operating income	67	103	90	70	71
Total operating costs	235	243	249	228	242
Profit before impairment on loans	354	383	359	350	335
Impairment on loans, guarantees etc.	21	17	-35	17	-117
Pre-tax profit	333	366	394	333	452
Taxes	82	86	93	79	112
Profit after tax	251	280	301	254	340

As a percentage of average assets

Net interest income	2.04	2.08	2.12	2.07	2.11
Other operating income	0.26	0.41	0.36	0.28	0.29
Total operating costs	0.92	0.96	1.02	0.93	1.01
Profit before impairment on loans	1.38	1.53	1.46	1.42	1.39
Impairment on loans, guarantees etc.	0.08	0.07	-0.14	0.07	-0.49
Pre-tax profit	1.30	1.46	1.60	1.35	1.88
Taxes	0.32	0.35	0.38	0.32	0.46
Profit after tax	0.98	1.11	1.22	1.03	1.42