SpareBank 1 SMN

Investor Presentation • May 10, 2023

First quarter 2023 Financial information

May 10th 2023

Trond Søraas CFO

First quarter 2023

Q1 2023

• Return on equity of 13.0%
• Solid development in all business areas Increased lending margins strengthens revenue in the bank. Good results in the accountancy arm and the real estate agency
• Costs are affected by inflationary pressure Low underlying cost growth
• Loan loss reversals and strong capitalisation Improvement in credit quality within offshore, solid CET1 ratio and ample liquidity to withstand market turmoil
• Successful merger with SpareBank 1 Søre Sunnmøre Legal merger finalised, and SpareBank 1 SMN is positioned to strengthen the presence in Sunnmøre and Fjordane

The Mid-Norwegian economy

Unemployment

Wholly unemployed as a percentage of the labour force

Housing prices Bankruptcies

Sources: NAV, SSB, NordPool and Brønnøysundregisteret

Electricity prices

Number of bankruptcies in Trøndelag and Møre og Romsdal

Q1 2023

Net profit NOK 778m (698)

Return on equity 13.0% (12.6)

CET1 ratio 18.2% (18.3)

Lending growth Retail Market 0.7% (1.6) , Corporate Market 2.5% (4.0)

Deposit growth Retail Market 1.3% (2.2), Corporate Market 1.2% (2.6)

Book value per EC NOK 105.63 (99.55) Result per EC NOK 3.51 (3.20)

Cost/Income in the bank 40% (41)*

*) excluding return on financial investments.

Profitable and solid

Return on equity

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

Satisfactory growth

Lending growth RM 7.1% (CAGR)

Lending growth CM 7.9% (CAGR)

Deposit growth RM 9.5% (CAGR)

Deposit growth CM 12.2% (CAGR)

Diversified deposits base

Deposits covered by the deposit guarantee scheme (bNOK)

Covered by the guarantee scheme

NSFR and LCR as at 31.3.23 (per cent)

Public sector deposits are not covered by the the deposit guarantee scheme, but are mostly bound by contractually obligations

194%

LCR: Liquidity Coverage Ratio NSFR: Net Stable Funding Ratio

Margins

Lending margins

Lending rates versus NIBOR3M

NIBOR3M versus deposit rates

RM CM

Good results across the Group

Broad product range and diversified income platform

Ownership Strong brands interests

Profits after tax (NOKm)

SpareBank 1 Gruppen BN Bank Other associated companies SpareBank 1 Forvaltning

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

Profits

mill NOK	Q1 23	Q4 22	Q3 22	Q2 22	Q1 22
interest income Net	1 035 ,	961	814	803	759
Commission income income and other	541	473	491	555	522
Operating income	1 576 ,	1 435 ,	1 305 ,	1 359 ,	1 281 ,
operating Total expenses	728	646	583	585	629
business Pre-loss result of core	847	789	722	774	652
loans and Losses guarantees on	-71	19	22	-48	0
business Post-loss result of core	918	770	700	822	652
Related companies	125	195	108	77	62
Securities foreign and derivates currency ,	-97	-33	-22	-120	113
Result before tax	946	932	785	779	827
Tax	206	210	179	164	166
investment for Result held sale	38	46	10	87	37
profit Net	778	768	617	702	698
equity Return on	13 0 %	13 1 %	10 9 %	12 9 %	12 6 %

Quarterly net profit NOKm

11 First quarter 2023

Revenue

Net interest income and other income Commission income

Commission income

Boligkreditt and Næringskreditt

Boligkreditt		and Næringskreditt
	Net interest income				NOK mill	Q1 23	Q4 22	Q3 22	Q2 22	Q1 22
				1,576	Payment transmission income	72	91	91	79	69
			1,435		Credit cards	1 7	1 5	1 5	1 5	1 5
	1,359	1,305		480	Commissions savings and asset mgmt	1 0	1 1	9	1 0	9
			438		Commissions insurance	61	60	60	59	57
434	475	424	36	60	Guarantee commissions	1 6	2 5	1 6	1 0	1 9
	81	67			Estate agency	105	94	105	125	94
88					Accountancy services	188	127	115	167	156
				1,035	Other commissions	1 1	1 4	1 2	9	1 4
759	803	814	961		Commissions ex. Bolig/Næringskreditt	480	438	424	475	434
					Commissions Boligkreditt (cov. bonds)	57	32	63	77	84
					Commissions Næringskreditt (cov. bonds)	3	4	4	4	4
Q1 22	Q2 22	Q3 22	Q4 22	Q1 23	Total commission income	541	473	491	555	522

Costs

Total quarterly costs (NOKm)

Total quarterly costs (NOKm)

NOK mill	Q1 23	Q4 22	Q1 22
Staff costs	398	333	375
IT costs	106	100	89
Marketing	23	24	19
Ordinary depreciation	29	33	29
Operating expenses, real properties	16	9	22
Purchased services	38	53	52
Merger expenses	15	22	0
Other operating expense	104	73	44
Total operating expenses	728	646	629

Loan losses

Loan losses (NOKm)

Distribution of losses Q1 23 (NOKm)

Loan portfolio

Lending as at 31.03.23 and change YoY (NOKbn)

Commercial real estate

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

Bank 1 Bank 2 Norge Bank 3 Bank 4 Bank 5 Bank 6 Bank 7 SMN Bank 8 51% 49% 46% 38% 38% 35% 35% 30% 25% 19%

Rental properties make up over 70 % of the banks CRE exposure

* 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.

EAD commercial real estate by segment

Solidity

CET1 * Leverage ratio

2021 6.9% 7.1% 2020 2022 6.9% Q1 23

* 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%

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

www.smn.no

Appendix

First quarter 2023

Commission income

mill NOK	Q1 23	Q4 22	Q3 22	Q2 22	Q1 22
transmission income Payment	72	91	91	79	69
Credit cards	1 7	1 5	1 5	1 5	1 5
Commissions savings and asset mgmt	1 0	1 1	9	1 0	9
Commissions insurance	61	60	60	59	57
commissions Guarantee	1 6	2 5	1 6	1 0	1 9
Estate agency	105	94	105	125	94
services Accountancy	188	127	115	167	156
commissions Other	1 1	1 4	1 2	9	1 4
Commissions Bolig/Næringskreditt ex	480	438	424	475	434
Commissions Boligkreditt bonds) (cov	57	32	63	77	84
Commissions Næringskreditt bonds) (cov	3	4	4	4	4
commission income Total	541	473	491	555	522

Product companies

Profit share after tax

Associated companies (after tax)

mill in share parentheses NOK SMN's ,	Q1 23	Q4 22	Q3 22	Q2 22	Q1 22
SpareBank Gruppen (19 5%) 1	34	128	1 7	6 1	3 1
Boligkreditt SpareBank (22 6%) 1	33	-1	0 1	-4	-5
Næringskreditt SpareBank (16 3%) 1	2	2	0	2	0
Bank (35 0%) BN	62	54	53	47	49
Kreditt SpareBank (18 0%) 1	-4	0	3	3	3
Betaling SpareBank (20 8%) 1	-8	2 2	-3	0	-5
Forvaltning SpareBank (19 6%) 1	8	5	0 1	1 1	8
companies Other	-3	-15	1 9	2	-1
associated companies Sum	125	195	109	77	62

Subsidiaries

Profit before tax

mill in share parentheses NOK SMN's ,	Q1 23	Q4 22	Q3 22	Q2 22	Q1 22
EiendomsMegler Midt (87%) 1 -Norge	1 8	-6	1 2	38	1 4
SpareBank Regnskapshuset (89%) 1 SMN	44	2 0	2 2	30	2 3
Finans Midt SpareBank (54 3%) 1 -Norge	53	51	44	50	47
SpareBank (100%) 1 SMN Invest	-31	-21	-30	-29	132
companies Other	4	3	3	1	1
Subsidiaries	88	47	50	91	218

Return on financial investments

mill NOK	Q1 23	Q4 22	Q3 22	Q2 22	Q1 22
gain/(loss) stocks Net on	-17	-23	-67	-35	137
gain/(loss) financial instruments Net on	-105	-55	6	-117	-33
gain/(loss) forex Net on	3 2	2 5	30	2 9	8
financial instruments Net return on	-99	-52	-30	-123	111

Equity certificate, key figures

figures Key	31 3 23	31 3 22	2022	2021	2020	2019
ratio ECC	64 0 %	64 0 %	64 0 %	64 0 %	64 0 %	64 0 %
Total issued (mill) ECCs	129 43	129 39	129 29	129 39	129 39	129 30
price ECC	123 60	20 141	127 40	149 00	97 60	100 20
Market value (NOKm)	997 15 ,	18 270 ,	16 471 ,	19 279 ,	12 629 ,	12 956 ,
Booked equity capital ECC per	105 63	99 55	109 86	103 48	94 71	90 75
earnings in ECC NOK Post-tax per ,	3 51	3 20	12 82	13 31	8 87	12 14
Dividend ECC per	-	-	6 50	50 7	40 4	6 50
P/E	8 79	05 11	9 94	19 11	01 11	8 26
Price / Booked equity capital	1 17	42 1	16 1	1 44	03 1	10 1

Balance sheet

bn NOK	31 3 23	31 3 22	31 3 21
receivables Cash and from central banks	1 2	1 2	-
Deposits with credit institutions and loans to	8 6	9 5	9 5
receivables loans and from Net to customers	152 2	145 8	135 9
Fixed-income and bonds CDs	44 3	32 0	30 9
, units equity interests Shares and other	0 8	2 6	2 1
in companies related Investment	7 9	7 5	7 4
Intangible assets	0 7	0 9	0 9
Other assets	12 4	7 6	7 2
Total assets	228 2	207 0	193 8
Capital funding market	65 2	56 6	59 4
Deposits from and debt to customers	123 5	114 1	102 4
liabilities Other	12 7	12 2	8 5
held for sale Investment	1 1	-	-
Subordinated capital loan	2 1	1 8	1 8
equity Tier Capital Total 1 ex	22 4	21 2	20 5
Addition Tier Capital 1	1 7	3 1	3 1
liablities equity Total and	228 2	207 0	193 8
addition Boligkreditt Næringskreditt loans sold and In to	60 8	52 9	43 5

Quarterly growth

Deposits

Retail banking Corporate banking

Lending Lending

Deposits

Problem loans

Loans to customers in stage 3

• Lending to customers in stage 3
• % of gross lending

Funding and liquidity

The bank has a conservative liquidity strategy. The LCR is 194 per cent as at 31 March 2023 (155 per cent). The regulatory requirement is 100 per cent.

The bank's funding sources and products are well diversified. SpareBank 1 Boligkreditt and Næringskreditt are important funding sources. Loans totalling NOK 61bn (53bn) had been sold to these mortgage companies as at 31 March 2023

In Q1 SpareBank 1 SMN issued the equivalent of NOK 760m in senior non-preferred debt (MREL) denominated in Japanese Yen.

As at 31. March 2023 SpareBank 1 SMN held NOK 7.9 bn 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 2023 (NOKbn)