SpareBank 1 SMN

Earnings Release • May 8, 2025

SpareBank 1 SMN: Broad-based growth and low losses

SpareBank 1 SMN: Broad-based growth and low losses

The SpareBank 1 SMN Group recorded a profit of NOK 1,004m after tax for the first quarter of 2025. The quarter features strong net interest income, lower expenses, good contributions from owner interests and continued low losses. All business lines show good profitability contributing to a return on equity of 14 per cent.

“We are well pleased with the results for the year’s first quarter. Business lines and subsidiaries are performing well without exception. We see strong growth along with continued low losses. The Group is financially very solid and it maintains a strong liquidity position. This performance is particularly creditable in a world marked by turbulence and uncertainty”, says Group CEO Jan-Frode Janson.

Overall lending growth in the quarter was 0.2 per cent, and over the last 12 months lending has grown in all by NOK 11.6bn, or 4.9 per cent. Deposit growth in the quarter was 5.2 per cent. Overall costs in the Group were reduced by NOK 42m from the previous quarter, which was burdened by some one-time effects. At the parent bank expenses rose by 2 per cent over the last 12 months when the insurance settlement agreed in the same quarter last year is adjusted for. Group losses on loans and guarantees in the first quarter came to NOK 21m, corresponding to 0.03 per cent of gross outstanding loans. The bank’s financial position remains excellent, with a CET1 ratio above 18 per cent at the end of the quarter, which is well above its own targets and regulatory requirements.

In the first quarter it was announced that SpareBank 1 Markets was to join forces with its longstanding business partner in Sweden, Swedbank. They are jointly launching a new venture in the Swedish market, under the name SB 1 Markets. Also here in Mid Norway, competitors joined together in the previous quarter, with EiendomsMegler 1 Midt-Norge’s acquisition of Norion Næringsmegling. The new entity aspires to a leading position in commercial property broking in Mid Norway and to make its mark at national level.

Commission income excluding captive mortgage companies rose by NOK 48m from the previous quarter and NOK 44m from the first quarter of 2024. It is above all income from accounting and estate agency services that is gaining ground.

“SpareBank 1 SMN’s strategy, known as “One SMN”, is about exploiting the breadth present in the Group and expanding interaction across the respective business lines. The strategy stands firm, and is realised through co-location of multiple services in finance centres. This makes for a broad product range and a diversified income flow. It also generates high customer satisfaction.

Results for first quarter 2025:

(Consolidated figures. Figures in parenthesis refer to the same period of 2024 unless otherwise stated)

Profit after tax: NOK 1,004m (1,084m)

Return on equity: 14.0% (16.0)

CET1 ratio: 18.1% (18.5%)

Growth in lending: 0.2% (0.8%)

Growth in deposits: 5.2% (1.1%)

Losses on loans and guarantees: NOK 21m (24m)

Earnings per equity certificate: NOK 4.31 (4.68)

Trondheim 8 May 2025

Contacts:

CFO Trond Søraas on +47 922 36 803

Acting executive director Eirin Sørensen Røkke on +47 452 58 536

The above information is publicly disclosable under Section 5-12 of the Norwegian Securities Trading Act.