SpareBank 1 SMN

Capital/Financing Update • Dec 13, 2023

SpareBank 1 SMN: Supervisory Review and Evaluation Prosess (SREP)

SpareBank 1 SMN: Supervisory Review and Evaluation Prosess (SREP)

The Financial Supervisory Authority of Norway (“the FSA”) has updated the assessment of Supervisory Review and Evaluation Process (“SREP”) for risks and capital needs for SpareBank 1 SMN and decided on the capital requirements for Pillar 2 and Pillar 2 guidance. These capital requirements come in addition to the minimum requirements and combined buffer requirements under Pillar 1.

The FSA has decided that the Pillar 2 requirements shall be reduced from 1.9 % to 1.7 % of the total risk exposure amount (TREA). SpareBank 1 SMN have in addition a temporary requirement in Pillar 2, tied to model risks, of 0.7 %. At least 56.25 percent of the requirement must be covered with Core Equity Tier 1, while 75 percent must be covered with Tier 1 capital.

The expectation for Pillar 2 Guidance is unchanged at 1.25 percent.

The new requirement will apply from 31 December 2023.

Trondheim, 13 December 2023

Contact:

CFO Trond Søraas, tel. +47 922 36 803

CRO Ola Neråsen, tel. +47 918 09 722

This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.