SpareBank 1 SMN

Earnings Release • Oct 29, 2021

SpareBank 1 SMN: Continued good growth and a strong profit performance

SpareBank 1 SMN: Continued good growth and a strong profit performance

SpareBank 1 SMN delivers a solid third-quarter profit of NOK 849m before tax

compared with NOK 619m in the same period last year. This performance is a clear

reflection of the fact that society is in the process of normalising after a

long period of coping with the economic consequences of the Covid pandemic.

Once the Covid restrictions were removed in September, Norwegian society opened

up in earnest. Employment is now back to the level in effect before the pandemic

struck, and all economic parameters are improving.

"After a year and a half of substantial uncertainty, people can now lower their

shoulders and move towards normality. Improved economic prospects and increased

optimism in society provide a sound basis for strong performances across all

SpareBank 1 SMN's lines of business," says Group CEO Jan-Frode Janson.

Growth in all the major business lines, lower losses, efficient operations and

good cost control provide a return on equity of 12.4 per cent for the period.

Loan losses are substantially reduced - to NOK 31m compared with NOK 231m in the

same period last year.

Lending to personal customers has risen by NOK 8.3bn in the last 12 months, and

now accounts for 68 per cent of the bank's total outstanding loans. Lending to

corporate customers has risen by NOK 4.3bn in the same peiod. A substantial

portion of the growth in the personal market is down to LO (Confederation of

Trade Unions) customers, while the growth in lending to corporates refers mainly

to small and medium-sized customers across the entire market area.

EiendomsMegler 1 Midt-Norge recorded operating revenues of NOK 108m in the third

quarter, and delivers a profit of NOK 9m before tax. SpareBank 1 Regnskapshuset

SMN posted operating revenues of NOK 122m, and a profit of NOK 21m before tax.

SpareBank 1 Finans Midt-Norge reports a profit of NOK 35m before tax, based on

operating revenues of NOK 93m.

"Our goal throughout has been to build a complete finance centre. This brings a

simpler and more effective customer offering, it makes us a more attractive

employer and provides a broader revenue base," says Group CEO Jan-Frode Janson.

The remainder of the dividend of NOK 3.10 per equity certificate declared for

2020 is to be paid on 9 November. A further NOK 105m is allocated to community

dividend. Overall community dividend amounts to NOK 200m, of which NOK 100m is

earmarked for the reopening of Mid-Norway.

"A large share of the funds goes to grand reopening festivities throughout Mid-

Norway. In Trondheim we, alongside a number of other actors in the community,

have completed a three-week-long reopening festival comprising some 300 events

large and small. In addition, more than 1500 clubs and organisations have

received support enabling them to restart recruitment and activities once

again," says Mr Janson.

Key figures, third quarter 2021

(Consolidated figures. Figures in parenthesis refer to the same period of 2020

unless otherwise stated)

? Pre-tax profit: NOK 849m (619m)

? Post-tax profit: NOK 675m (519m)

? Return on equity: 12.4% (10.5%)

? CET1 ratio: 18.1% (17.6%)

? Growth in lending: 1.6% (2.5%)

? Growth in deposits: -0.4% (+1.2%)

? Lending to personal customers: 2.0% (2.2%)

? Lending to corporate clients: 0.7% (3.0%)

? Net result of ownership interests: NOK 179m (170m)

? Net result of financial instruments: NOK 69m (34m)

? Losses on loans and guarantees: NOK 31m (231m)

? Earnings per equity certificate: NOK 3.22 (2.35)

? Book value per equity certificate: NOK 103.57 (92.73)

Contacts:

CFO Kjell Fordal on +47 905 41 672

Executive Vice President Rolf Jarle Brøske on +47 911 12 475

quarterlyreport.smn.no

This information is subject to the disclosure requirements pursuant to Section

5-12 the Norwegian Securities Trading Act