SpareBank 1 SMN

Investor Presentation • Nov 2, 2023

Third quarter 2023

November 2nd 2023

Trond Søraas CFO

Q3 2023

2

Strong underlying operations

• Return on equity of 13.0% year to date Growth and solid results across the group's business areas and customer segments.
• Q3 affected by seasonal variations and extraordinary events Tax expense adjustment and asset value write-down at SpareBank 1 Mobilitet negatively impact profit. Seasonal variations at Regnskapshuset, estate agency services and SB1 Markets along with a negative result at SB1 Group in the quarter.
• Prepared for a lower demand ahead

SMN focuses its growth strategy on attractive geographical locations, customer segments and increased synergies in finance centres.

SMN aspires to strengthen its market position.

• Solid position, capital adequacy well above regulatory requirements

Robust loan portfolios, solid capital adequacy and ample liquidity. Prospect of further growth and good dividend capacity.

Q3 2023

Net profit 740m (617)

Return on equity 11.1 % (10.9)

CET1 ratio 19.7 % (19.2)

Lending growth 1.0 % (1.7) in Q3 and 12.2 % (8.8) last 12 months

Deposit growth - 1.4 % (- 2.6) in Q3 and 14.7 % (9.9) last 12 months

Loan losses on 35m (22m)

Book value per EC NOK 116.39 (107.19) Result per EC NOK 3.28 (2.89)

High value creation over time

Interest rate hikes start to bite, growth dampened

«Housing starts and car sales decline and house prices under pressure»

«Unemployment edging up, nationwide»

«Credit growth slows, for households and firms alike»

«Geopolitical risks heat up»

The good news:

• Inflation on the way down
• Purchasing power recovering
• Interest rate peak very near, but rates unlikely to fall quickly

Harald Magnus Andreassen Chief Economist SB1 Markets

Macro in Mid-Norway

Unemployment

Wholly unemployed as a percentage of the labor force

Development in housing prices

From sellers to buyers' market

sep-14 sep-15 sep-16 sep-17 sep-18 sep-19 sep-20 sep-21 sep-22 Unsold properties in Mid-Norway Percentage difference in listing/selling price

Number of bankruptcies in Trøndelag, Møre & Romsdal

sep-23

Source: NAV, SSB Boligpriser, Brønnøysundregisteret og Eiendomsverdi

Bank establishes financial health team

The cost of living is rising sharply and financial advisors at SpareBank 1 SMN more and more often encounter customers who are struggling to cope with the increased costs. The bank is therefore establishing a financial health team.

The financial health team will adopt a preventive approach to managing debt but will also seek to ensure that the high cost of living does not contribute to greater financial problems, social isolation and mental health issues for those who are already struggling.

Preventive initiatives focusing on vulnerable customer segments

7

SMN aspires to expand market shares Proactive moves in a time of challenges and opportunities

Organic growth

• Oslo
• Trondheim region

Segments in focus

• Private banking
• Saving and investment

Sales across the Group

• One SMN
• Synergies across finance centres

Structural initiatives

• Søre Sunnmøre
• Acquisitions by Regnskapshuset
• Future ambitions

Cooperation as a competitive advantage

Strategic priorities unchanged – focus on execution

Creating One SMN Greater

Ambition Complete finance house with seamless customer offerings

digitalization and use of insight

Ambition

Physical presence and leading digitally

Head up the development of Norway's savings banks system

Ambition Number 1 among Norwegian savings banks

Integrating sustainability into the business

Ambition Net zero climate footprint within 2050

Exploiting the power in SMN's ownership model

Ambition Sustainable growth and attractive local communities

Young adults programme

in collaboration with WFUNA and the UN Association of Norway

100 young adults 18-25 yrs 20 nationalities 27 sustainable projects

Anniversary concert in aid of worthy causes

Anniversary voyage

on the Statsraad Lehmkuhl along Norway's coast

11

Financial Information

Financial targets

Profitable and solid

Return on equity

CET1 ratio

Result per ECC Loan losses in per cent of total lending

Growth and margins in Retail Banking - quarterly

Growth and margins in Corporate Banking - quarterly

Strong results across the group

Broad product range and diversified income platform

Strong brands

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

SpareBank 1 Forvaltning ODIN Forvaltning and SpareBank 1 Kapitalforvaltning

SpareBank 1 Kreditt Unsecured credit

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 and SpareBank 1 Næringskreditt

Ownership interests

Profit after tax (NOKm)

Strong underlying operations

mNOK	Q3 23	Q2 23	Q1 23	Q4 22	Q3 22	Change from Q2 23	Change from Q3 22
Net interest income	1,191	1,094	1,035	961	814	97	376
Commission income and other income	484	561	541	473	491	-76	-7
Operating Income	1,675	1,655	1,576	1,435	1,305	20	370
Total operating expenses	741	683	728	646	583	5 8	158
Pre-loss result of core business	934	972	847	789	722	-37	212
Losses on loans and guarantees	3 5	29	-71	19	22	6	13
Post-loss result of core business	899	943	918	770	700	-43	200
Related companies	-2	85	125	195	108	-86	-110
Securities, foreign currency and derivates	99	18	-97	-33	-22	81	121
Result before tax	996	1,045	946	932	785	-49	211
Tax	278	159	206	210	179	119	99
Result investment held for sale	22	3 7	3 8	46	10	-15	12
Net profit	740	923	778	768	617	-182	124
Return on equity	11.1 %	15.1 %	13.0 %	13.1 %	10.9 %	-3.9 %	0.2 %

Income

Net interest income and other income Commission income

Commission income

814 961 424 438 ^{480 504 455} 67 Q3 22 36 Q4 22 60 Q1 23 57 Q2 23 29 Q3 23 1,305 1,435 1,576 1,655 1,675 1,035 1,094 1,191 Bolig- og Næringskred. Net interest income

NOKm	Q3 23	Q2 23	Q1 23	Q4 22	Q3 22	Change from Q2 23	Change from Q3 22
Payment transmission income	79	77	72	91	91	2	-12
Credit cards	16	15	17	15	15	1	0
Commissions savings and asset mgmt	10	12	10	11	9	-1	1
Commissions insurance	67	65	61	60	60	2	7
Guarantee commissions	15	13	16	25	16	2	-1
Estate agency	110	119	105	94	105	-9	5
Accountancy services	138	182	188	127	115	-44	24
Other commissions	20	22	11	14	12	-1	8
Commissions ex. Bolig/Næringskreditt	455	504	480	438	424	-48	31
Commissions Boligkreditt (cov. bonds)	25	5 3	5 7	32	63	-28	-37
Commissions Næringskreditt (cov. bonds)	4	4	3	4	4	0	-1
Total commission income	484	561	541	473	491	-76	-7

Costs Increased price and wage growth in 2023

Total operating expenses per quarter (NOKm) Costs per category

• Costs in the bank rising from last quarter following an increase in staff and full effect from SpareBank 1 Søre Sunnmøre's cost base
• Increased costs in subsidiaries mainly because of acquisitions in Regnskapshuset
• In addition, the quarter is affected by costs related to 200-year anniversary

mNOK	Q3 23	Q2 23	Q1 23	Q4 22	Q3 22	Change from Q2 23	Change from Q3 22
Staff costs	435	383	398	333	348	5 2	86
IT costs	103	105	106	100	84	-2	19
Marketing	24	25	23	24	18	-1	6
Ordinary depreciation	43	35	29	33	26	8	17
Operating expenses, real properties	15	14	16	9	17	1	-2
Purchased services	5 1	44	38	5 3	48	7	3
Merger expenses	14	18	15	22	0	-5	14
Other operating expense	5 6	5 9	104	73	42	-3	14
Total operating expenses	741	683	728	646	583	58	158

Well diversified lending portfolio dominated by mortgages

Loans per sector

per 30th of September 2023 and change last 12 months (NOKbn)

Robust mortgage portfolio

Loan-to-value ratio in the mortgage portfolio Share of mortgages by LTV

Sep 22 Sep 23

68.0%

71.2%

Number

Commercial property, construction, building

Share of commercial real estate exposure in the corporate lending book*

Percentage

^*Gross lending to commercial real estate as a share of corporate lending. National data from "Assessment of financial stability 2022". Data for individual banks are based on reported numbers in yearly reports.

Rental properties make up 70 % of the banks CRE exposure, mainly to retail trade, industry/storage and offices

Distribution of property Distribution of area per Q323 per Q422 Housing co-operatives and other Real estate projects Rental properties

5%

100%

25%

70%

CRE total

Hotel/tourism

EAD commercial real estate by segment

Losses

Loan losses (NOKm) Distribution of losses Q3 (NOKm)

Solidity

CET 1 Leverage ratio

19.7%

* The bank is subject to a provisional add-on of 0.7 per cent to its Pillar 2 requirement. Until the application for adjustment of IRB models has been processed the CET1 requirement is 17.85%

Upgraded rating to Aa3

SpareBank 1 MING

High return over time

efficient operations with synergies in the group, solidly capitalized and shareholder -friendly dividend policy

Strong position and with growth ambitions

sustainable growth in an attractive region, diversified customer portfolio and income platform

Strong brand with development potential based on ownership value and local presence

Substantial underlying value through ownership positions in and outside the

SpareBank 1 Alliance

Well positioned in regards to consolidation amongst Norwegian savings banks

Appendix

SMNs Business tendency survey for Trøndelag and Møre & Romsdal, 2023: Still negative outlooks

Deterioration

Growth and margins in Retail Banking - Yearly

Growth and margins in Corporate Banking - Yearly

Product companies

Mill eierandel i kr (SMNs parentes)	Q3 23	Q2 23	Q1 23	Q4 22	Q3 22	Chenge from Q2 23	Change from Q3 22
SpareBank (19 %) 1 Gruppen 5	-13	-5	3 4	128	17	-8	-30
Boligkreditt SpareBank (24 %) 1 1	5	29	3 3	-1	10	-24	-5
Næringskreditt SpareBank (17 8 %) 1	4	3	2	2	0	1	4
Bank (35 %) BN 0	64	5 8	62	5 4	5 3	7	12
Kreditt SpareBank (19 %) 1 2	-3	-2	-4	-0	3	-1	-6
Betaling SpareBank (21 %) 9 1	-10	-11	-8	22	-3	1	-7
Forvaltning SpareBank (20 9 %) 1	6	8	8	5	10	-2	-3
Other companies	-55	5	-3	-15	18	-60	-73
accosiated companies Sum	-2	8 5	125	195	108	-86	-110

Subsidiaries

NOKm	Q3 23	Q2 23	Q1 23	Q4 22	Q3 22	Change from Q2 23	Change from Q3 22
EiendomsMegler Midt (92 %) 1 -Norge 4	-1	3 1	18	-6	12	-32	-14
SpareBank Regnskapshuset SMN (93 3 %) 1	11	45	44	20	22	-33	-11
Finans Midt SpareBank (58 %) 1 -Norge 0	3	43	5 3	5 1	44	-39	-40
SpareBank (100 %) 1 SMN Invest	3 7	-4	-31	-21	-30	40	67
companies Other	3	4	4	3	3	-1	0
subsidiaries Sum	53	118	8 8	47	50	-65	3

Return on financial investments

NOKm	Q3 23	Q2 23	Q1 23	Q4 22	Q3 22	Change from Q2 23	Change from Q3 22
gain/(loss) stocks Net on	17	-7	-17	-23	-67	24	83
gain/(loss) financial instruments Net on	47	-30	-105	-55	6	76	41
gain/(loss) in forex Net	20	3 8	23	25	3 0	-18	-10
financial instruments Net return on	8 3	1	-99	-52	-30	8 3	114

Diversified deposit portfolio

Public deposits are not covered by the guarantee scheme, but are LCR: Liquidity Coverage Ratio mostly bound by contractual obligations

Problem loans

Lending to customers in stage 3 % of gross lending

Maturity structure

NOKbn

38

Development in CET1 capital and capital adequacy

CET1 ratio in per cent

Equity certificate, key figures

figures Key	30 09 2023 30	09 2022	2022	2021	2020	2019
ratio ECC	66 8 %	64 0 %	64 0 %	64 0 %	64 0 %	64 0 %
issued (mill) Total ECCs	143 82	129 29	129 29	129 39	129 39	129 30
price ECC	137 2	111 4	127 4	149 0	97 6	100 2
Market value (NOKm)	19 732 ,	14 402 ,	16 471 ,	19 279 ,	12 629 ,	12 956 ,
equity capital Booked ECC per	116 39	107 19	109 86	103 48	94 71	90 75
earnings in Post-tax ECC NOK per ,	11 14	9 29	12 82	13 31	8 87	12 14
Dividend ECC per			6 50	7 50	4 40	6 50
P/E	9 24	9 00	9 94	19 11	01 11	8 26
Price equity capital / Booked	1 18	1 04	1 16	1 44	1 03	1 10

Balance

NOKbn	30 9 23	30 9 22	31 12 22
receivables from Cash and central banks	1 2	0 3	1 2
Deposits with and loans credit institutions to	13 0	16 8	11 7
receivables loans and from Net to customers	167 9	149 2	151 5
Fixed-income and bonds CDs	36 6	30 6	38 1
Shares , units and other equity interests	0 1	2 0	0 8
in companies related Investment	8 1	7 7	7 9
Intangible assets	1 1	0 9	0 7
Other assets	14 7	6 11	3 11
Total assets	243 5	218 9	223 1
Deposits from credit institutions	12 9	14 5	6 14
issue securities Debt created by of	46 0	46 2	47 5
Deposits from and debt to customers	138 2	120 6	122 0
liabilities Other	0 15	8 11	0 11
for held sale Investment	1 6	0 0	1 1
Subordinated loan capital	2 4	2 1	2 1
equity Tier Capital Total 1 ex	26 0	22 6	23 0
Additional Tier Capital 1	1 5	1 2	1 8
liabilities equity Total and	243 5	218 9	223 1
addition loans sold Boligkreditt and Næringskreditt In to	65 4	58 7	58 7

Active instigator for sustainable change

Double materiality analysis

Responsible lending and investments

Advisory and customer offerings

Regional changes in Mid-Norway

Changes in finance centers

Transition plans shall secure net zero emissions within 2050

Establishing transition plans on sector level

• The transition plan sets emission trajectories and actionable measures to realize the ambition for net zero emissions by 2050
• The plan shall contribute to a predictable and organized transition and at the same time reduce our customers vulnerability towards climate change
• SMN has prepared transition plans for agriculture, households, fisheries and commercial property
• SMN has signed Science Based Targets Initiative, a framework for establishing science-based climate targets