SpareBank 1 SMN

Investor Presentation • May 6, 2022

First quarter 2022

6 th of May 2022

First quarter 2022

Q1 2022

Solid profitability in an unstable market

• Pandemic followed by war in Europe – uncertainty in global growth as a result of instability in commodity markets, high inflation and increased interest rates abroad – but the Norwegian economy still looks good
• Strong results in Q1 high activity in the Norwegian economy after the pandemic. SMN delivers solid growth in new customers, loans and product sales
• Hike in key policy rate to 0.75 in March SMN has raised its rates on mortgage loans with effect from May, but increased money market rates lowers the lending margins
• Weak results from insurance in SB1 Gruppen strong returns from financial assets and stable cost development in the group
• Low losses and a robust loan portfolio, with improved outlook in the offshore sector
• SMN with a strengthened position as the leading finance house in the region

Q1 2022

Net profit NOK 698m (768)

Return on equity 12.5% (14.8)

CET1 ratio 18.3% (18.0)

Lending growth 2.4% (1.4) in Q1 and 7.9% (8.5) YoY

Deposit growth 2.5% (5.0) in Q1 and 11.4% (16.2) YoY

Loan losses NOK 0m (NOK 59m)

Book value per EC NOK 99.55 (96.70) Result per EC NOK 3.20 (3.40)

SMN is used to handling crises

Pandemic followed by war in Europe

SMN establishes task force – but maintains normal banking and ambitious plans of growth in all business areas

Task force with experienced credit advisors who share information and gets increased authority when needed

The economy in Mid-Norway is still robust

Bransjeindikator

Increased activity in oil, gas and offshore wind Normalized level of bankruptcies

Number of bankruptcies in Trøndelag, Møre og Romsdal

• An increase in the number of bankruptcies in Q122 suggest that normalization is ahead
• Construction and service industry had the most bankruptcies in Q122
• SMN's share of bankruptcies is 10.2 per cent last 12 months

Source: Industry Indicator SMN 1. half 2022

Housing market is changing

Reduced supply in the housing market

Unsold properties in Mid-Norway % difference in listing price and asking price

• Historically low number of properties for sale in Mid-Norway in first quarter
• Demand has somewhat decreased towards the end of first quarter, driven by increased interest rates and living costs, but a shortage in supply keeps the prices up and objects are selling fast
• The outlook is uncertain expecting a more moderate development in the housing market

Increased housing prices

Strengthened position in the corporate market

Corporate Banking

Result before tax (NOKm)

Regnskapshuset SMN

Corporate Banking

High activity and strong sale in the private market

Personal Banking

Result before tax (NOKm)

EM1 PM

Personal Banking

With a good development in new sales

Broad product range and considerable contributions from ownership interests

Ownership interests

Profits after tax (NOKm)

Strong brands

SpareBank 1 Gruppen Alliance collaboration on products under a joint brand, including Fremtind and SpareBank 1 Forsikring

SpareBank 1 Forvaltning ODIN Forvaltning SpareBank 1 Kapitalforvaltning

SpareBank 1 Kreditt

SpareBank 1 Betaling SpareBank 1's holding company for their share of Vipps payment solutions

BN Bank Nationwide bank in the retail and corporate market

Mortgage companies SpareBank 1 Boligkreditt SpareBank 1 Næringskreditt

SpareBank 1 SMN's strategic priorities

Norway's most personal mobile bank

With support from SpareBank 1 Utvikling, SpareBank 1 shall take the position as the banks that develop the best digital solutions. And the best evidence is the mobile bank

The position survey concludes that SpareBank 1 has the best mobile bank in the Norwegian market, but it is too little known outside SpareBank 1's own customer base

• It's SpareBank1's best unknown product

We are not better than our weakest link and the current situation is a

Source: Kantar Survey June 2021. The results are indexed according to the bank's main bank shares, so a score of 100 is equivalent to a result equal to the main bank share.

Næringsdriv with sustainability on the agenda

SMN becomes first depositor in SINTEF's climate fund

Næringsdriv is a series of conferences for local businesses throughout the region

Sustainability in Q1 SINTEF-fund supports new climate change mitigation technologies

Support from a large bank

«By being first-mover into the climate fund, we in SpareBank 1 SMN hope to show the way and to bring along many other companies both in Mid-Norway and nationwide. Look at it as a challenge»

CEO Jan-Frode Janson

The community dividend is invested into

community – sports and outdoor life– art and culture – innovation and value creation – sustainability

Activities in Q122

Record high distribution of the talent scholarship

Recognition of 40 young, Mid Norwegian talents within culture, sports and business

Creates meeting spots in 100 neighborhoods

Through providing benches, flower boxes and lean-to shelters

Together for the Ukrainian people

Aid scheme for contributing to integrate refugees in Mid-Norway

We care about the local community

Each year the community dividend contributes to non-profit purposes that makes Mid-Norway better and more sustainable

SpareBank 1 SMN (MING) - an attractive investment

High return over time and solidly capitalised. Efficient banking operations and unrealised income and cost synergies in the group. Shareholder-friendly dividend policy

Strong position and good growth in an attractive region and in all business lines. Diversified customer portfolio and income base

A good brand with development potential based on ownership model, presence and sustainability

Substantial underlying value through ownership positions in and outside SpareBank 1-alliansen

Well positioned in regards to consolidation among Norwegian savings banks

Financial information

First quarter 2022

Profitable and solid

Return on equity

14.8% Q1 21 Q2 21 Q3 21 14.3% Q4 21 Q1 22 12.4% 12.7% 12.5%

CET1 ratio

Earnings per equity certificate Loan losses in per cent of total lending

Lending

Lending growth RM 7.7% (CAGR)

Lending growth CM 6.4% (CAGR)

Total loans NOK 200bn, YoY growth of 7.9 per cent

Market growth in mortgages 5.0 per cent (C2) last 12 months (February 2022)

Good growth spread both geographically and across a wide range of customers

Lending margins

Norges Bank increased the key policy rate to 0.75 % in March 2022

Repricing of mortgages with effect from mid-November 2021, February 2022 and May 2022

Increased NIBOR from the second half of 2021 has weakened margins

Norges Bank has signalled further rate hikes

Lending margins versus 3M NIBOR

Q218 Q119 Q319 Q318 Q418 Q122 Q118 Q219 Q419 Q220 Q120 Q320 Q420 Q121 Q221 Q321 Q421

Deposits

Deposit growth RM 9.2% (CAGR)

Deposit growth CM 11.7% (CAGR)

Share of deposits, CM and RM

Total deposits of NOK 114bn, growth of 11.4 per cent YOY

Good growth in deposits by retail customers and corporate customers alike.

High growth in deposits by corporates, both from public sector customers and private businesses

Deposit-to-loan ratio 57 per cent (55 per cent)

Deposit margins

Increased NIBOR strengthened deposit margins

Deposit rates increased following Norges Banks rate hikes

Deposit margins versus 3M NIBOR

Q318 Q419 Q219 Q321 Q121 Q220 Q120 Q118 Q319 Q320 Q421 Q218 Q420 Q221 Q418 Q119 Q122

Robust income platform

Net interest income and other income Commission income

Commission income Boligkreditt and Næringskreditt Net interest income

mill NOK	Q1 22	Q4 21	Q3 21	Q2 21	Q1 21
transmission income Payment	60	72	61	56	49
Credit cards	6 1	1 4	1 4	3 1	1 4
Commissions savings and asset mgmt	9	3 1	1 7	1 4	1 5
Commissions insurance	57	55	54	53	52
commissions Guarantee	8 1	2 2	3 1	1 4	1 4
Estate agency	94	100	107	131	103
services Accountancy	156	114	114	154	148
Securities	124	158	110	182	275
commissions Other	1 4	1 7	7	1 4	5
Commissions Bolig/Næringskreditt ex.	549	565	497	631	675
Commissions Boligkreditt (cov bonds)	84	102	123	113	112
Commissions Næringskreditt (cov bonds)	4	3	3	4	4
commission income Total	637	671	623	748	790

Costs

Costs on same level in first quarter 22 as in fourth quarter 21

SpareBank 1 Markets has lower costs in the quarter with an equivalent normalized income. Stable costs in other subsidiaries.

The costs has increased in the bank. Compared to first quarter of 2021, the main cost increase relates to

• Technology development
• Anti-Money Laundering
• Customer related activities

In addition, some costs has been posted earlier in 2022 than in 2021

Total quarterly costs (NOK mill)

Reduced losses

Zero losses in first quarter of 2022

An improvement of the offshore portfolio. Zero losses from offshore last 12 months and a significantly reduction in other write-downs

The portfolio is not very affected by the after-math of the pandemic or by the war in Ukraine

Small number of bankruptcies in Mid-Norway in 2021 and so far into 2022. The number of bankruptcies in 2021 was down by 21 per cent compared to 2020 and 41 per cent lower than in 2019

Loan losses (NOKm)

Distribution of losses (NOKm)

Robust loan portfolio

Lending per 31.3.22 and change YoY (NOKbn)

Mortages funded by cov. bonds Mortages Commercial real estate Agriculture and forestry Business services Transport and other services Fisheries Maritime sector and offshore Construction, building 51.2 Retail trade, hotels 7.1 Manufacturing Aquaculture 2.2 17.6 83.8 9.8 7.7 5.2 5.1 4.3 3.2 2.9 1.0 4.6 0.2 4.9 0.0 0.2 0.2 -0.4 1.7 1.8 0.4 -0.1

The portfolio is dominated by mortgages, and the corporate portfolio reflects the composition of Mid-Norway's business sector

The loan portfolio is not particularly affected by uncertainty linked to the pandemic and war in Europe

New target CET1 17.2%

CET1

With effect from 30th of April 2022, SpareBank 1 SMN has received a new Pillar 2 requirement

The 1.9 per cent requirement is unchanged, but SMN is required to have an additional 0.7 per cent in Pillar 2 requirement until the FSA has approved adjustments of the IRB-models

The FSA has decided that SpareBank 1 SMN shall have a pillar 2 guidance of 1.25 per cent above total capital requirements.

The group plans with a full countercyclical buffer and has a revised long-term goal of a CET1 of at least 17.2 per cent.

In connection with the introduction of CRD V / CRR 2, the SME rebate will be extended from 30 June 2022. The estimated effect of this is a strengthening of CET1 adequacy by 0.4 percentage points.

Leverage ratio

Funding and liquidity

The war in Ukraine has increased uncertainty and led to volatility in financial markets.

Credit spreads are somewhat higher than before the war. The bank has ample liquidity and the markets for the bank's financial instruments are functioning satisfactorily.

The bank has a conservative liquidity strategy. The LCR is 155 per cent as at 31 March 2022 (190 per cent).

The bank's funding sources and products are well diversified. SpareBank 1 Boligkreditt and Næringskreditt are important funding sources. Loans totalling NOK 53bn (48bn) had been sold to these mortgage companies as at 31 March 2022

In the first quarter SpareBank 1 SMN issued a senior bond of NOK 2.8bn with a five-year maturity and MREL funding of NOK 0.5bn.

As at 31 March 2022 SpareBank 1 SMN held NOK 4.0bn in senior non-preferred debt (MREL). SpareBank 1 SMN will meet the MREL requirements by the end of 2023.

Maturity structure as at March 31 2022 (NOKbn)

Goals

SpareBank 1 SMN aims to be the leading finance house in Central Norway and among the best performers in the Nordic region

< 2%

↓ 50%

Profitable

Return on equity 12%

Solid

CET1 ratio 17.2% Payout ratio approx. 50%

Efficient

Annual growth in group costs limited to 2% within existing business

Responsible

Aims to halve the group's climate footprint by 2030 Reduction of 8% per year

SpareBank 1 SMN

CEO Jan-Frode Janson Tel +47 909 75 183 E-mail jan-frode.janson@smn.no

CFO Trond Søraas Tel +47 922 36 803 E-mail trond.soraas@smn.no

SpareBank 1 SMN Tel +47 915 07 300

Internet address www.smn.no

Appendix

First quarter 2022

Profits Quarterly numbers

mill NOK	Q1 22	Q4 21	Q3 21	Q2 21	Q1 21
interest income Net	758	723	707	698	668
Commission income income and other	637	671	623	748	790
Operating income	1 395	1 394	1 330	1 445	1 459
operating Total expenses	762	765	698	735	796
of business Pre-loss result core	632	629	633	711	663
loans and Losses guarantees on	0	32	31	39	5 9
of business Post-loss result core	632	597	601	672	604
companies Related	62	186	179	212	128
Securities foreign derivates and currency ,	173	33	69	5 9	161
before Result tax	868	816	849	942	893
Tax	169	112	175	191	131
Result investment held for sale	-1	0	1	4	6
profit Net	698	703	675	755	768
equity Return on	12 5 % ,	12 7 % ,	12 4 % ,	14 3 % ,	14 8 % ,

Commission income Quarterly numbers

mill NOK	Q1 22	Q4 21	Q3 21	Q2 21	Q1 21
transmission income Payment	60	72	61	56	49
Credit cards	6 1	1 4	1 4	3 1	1 4
Commissions savings and asset mgmt	9	3 1	1 7	1 4	1 5
Commissions insurance	57	55	54	53	52
commissions Guarantee	8 1	2 2	3 1	1 4	1 4
Estate agency	94	100	107	131	103
services Accountancy	156	114	114	154	148
Securities	124	158	110	182	275
commissions Other	1 4	1 7	7	1 4	5
Commissions Bolig/Næringskreditt ex	549	565	497	631	675
Commissions Boligkreditt (cov bonds)	84	102	123	113	112
Commissions Næringskreditt (cov bonds)	4	3	3	4	4
commission income Total	637	671	623	748	790

Product companies in SpareBank 1-alliansen Quarterly numbers

Profit share after tax

mill in share parentheses NOK SMN's ,	Q1 22	Q4 21	Q3 21	Q2 21	Q1 21
SpareBank (19 5%) 1 Gruppen	13	173	83	148	67
SpareBank Boligkreditt (20 9%) 1	-5	-2	11	3	4
SpareBank Næringskreditt (12 8%) 1	0	0	-1	4	3
Bank (35 0%) BN	49	42	40	42	40
Kreditt SpareBank (19 2%) 1	3	2	10	1	0
Betaling SpareBank (21 5%) 1	-5	-9	0	-5	-1
Forvaltning SpareBank (19 9%) 1	8	12	13	8	0
Other companies	-1	-32	-2	11	14
associated companies Sum	62	186	179	212	128

Profit before tax

mill in share parentheses NOK SMN's ,	Q1 22	Q4 21	Q3 21	Q2 21	Q1 21
EiendomsMegler Midt (87 %) 1 -Norge	1 4	1	8	41	2 1
SpareBank Regnskapshuset (89 %) SMN 1	2 3	3	2 1	33	2 7
Finans Midt SpareBank (56 %) 1 -Norge 5 ,	47	45	35	63	55
SpareBank Markets (67 %) 1	39	51	2 3	62	118
SpareBank (100%) 1 SMN Invest	132	-4	61	2 1	109
Other companies	1	0	1	2	1
Subsidiaries	257	97	149	223	330

Return on financial investments

Quarterly numbers

mill NOK	Q1 22	Q4 21	Q3 21	Q2 21	Q1 21
gain/(loss) stocks Net on	137	1 5	36	2 3	102
gain/(loss) financial instruments Net on	-10	-9	1 4	-4	2 0
gain/(loss) forex Net on	37	1	2	8	2 0
gain/(loss) derivatives stocks and stock Markets Net SB1 on	172	32	68	42	158
financial instruments Net return on	172	32	68	2 4	158

Equity certificate, key figures

figures Key	Q1 22	2021	2020	2019	2018
ratio ECC	64 0 % ,	64 0 % ,	64 0 % ,	64 0 % ,	64 0 % ,
issued (mill) Total ECCs	129 39 ,	129 39 ,	129 39 ,	129 30 ,	129 62 ,
price ECC	141 20 ,	149 00 ,	97 60 ,	100 20 ,	84 20 ,
Market value (NOKm)	18 270	19 279	12 629	12 956	10 914
Booked equity capital ECC per	99 55 ,	103 48 ,	94 71 ,	90 75 ,	83 87 ,
earnings in Post-tax ECC NOK per ,	3 20 ,	13 31 ,	8 87 ,	12 14 ,	9 97 ,
Dividend ECC per		7 50 ,	4 40 ,	6 50 ,	5 10 ,
P/E	11 05 ,	11 19 ,	11 01 ,	8 26 ,	8 44 ,
Price equity capital / Booked	42 1 ,	1 44 ,	03 1 ,	10 1 ,	00 1 ,

Change in net interest income

Change from Q4 21 to Q1 2022

Change	35
Subsidiaries	-1
Funding liquidity buffer and	-17
Equity capital	23
Deposit margin	59
Lending margin	-45
Deposit volume	0
Lending volume	5
lending Fees on	10
Obtained follows: as
Change	35
interest Q4 21 Net	723
interest Net Q1 22	758

Change from Q1 2021 to Q1 2022

interest Net Q1 22	758
interest Net Q1 21	668
Change	89
Obtained follows: as
lending Fees on	14
Lending volume	52
Deposit volume	-1
Lending margin	-154
Deposit margin	118
Equity capital	35
Funding and liquidity buffer	12
Subsidiaries	14
Change	89

Balance sheet

	31 3 22	31 3 21	31 3 20
available Funds	42 7 ,	40 4 ,	35 5 ,
loans Net	145 8 ,	135 9 ,	126 1 ,
Securities	2 6 ,	2 1 ,	1 4 ,
in companies related Investment	7 5 ,	7 4 ,	6 7 ,
Goodwill	0 9 ,	0 9 ,	0 9 ,
Other assets	6 7 ,	2 7 ,	6 14 ,
Total Assets	207 0 ,	193 8 ,	185 2 ,
Capital market funding	56 6 ,	59 4 ,	62 5 ,
Deposits	114 1 ,	102 4 ,	88 2 ,
liabilities Other	12 2 ,	8 5 ,	12 9 ,
Subordinated debt	1 8 ,	1 8 ,	2 1 ,
Equity hybrid bonds ex	21 2 ,	20 5 ,	18 3 ,
Hybrid bonds	3 1 ,	3 1 ,	3 1 ,
liabilities equity Total and	207 0 ,	193 8 ,	185 2 ,
addition Boligkreditt Næringskreditt loans sold and In to	52 9 ,	47 9 ,	43 5 ,

Offshore supply vessels constitutes a decreasing part of total exposure

					Total
Distribution	EAD	Loans	Stage 3	1/2 Stage	impairments	of Share EAD
risk Low	483	655		1	1 1 ,	0 2 % ,
Medium risk	536 1	094 1		105	105	6 8 % ,
High risk	488	471		53	53	10 8 % ,
Obligors with impairments/defaulted	670 1	406 1	373		373	22 4 % ,
	4 178	3 626	373	159	532	12 7 % ,

Potential problem loans

New regulatory definition of default increased stage 3 loans from 2021

Stable numbers last quarters

Loans to customers in stage 3

Loans to customers in stage 3 In per cent of gross loans

Development in CET1 capital and capital adequacy

The SpareBank 1 Alliance

The SpareBank 1 Alliance

Strong position nationally, regional focus

• SpareBank 1-alliansen consists of 15 banks
• Operates exclusively in Norway
• The bank grouping in Norway with the most bank branches
• The SpareBank 1 banks are on the forefront of digitalisation and technological development
• The SpareBank 1 banks are independent banks in their respective regions
• They are market leaders in their most important regional market areas
• The largest of them (~ 80% of total assets) have the following rating:

Sr. unsec. ratings	Moody's
SpareBank 1 SMN	A1 / P-1
SpareBank 1 SR	A1 / P-1
SpareBank 1 SNN	Aa3 / P-1
SpareBank 1 Østlandet	Aa3 / P-1