SpareBank 1 SMN

Investor Presentation • Feb 8, 2023

Fourth quarter 2022

8 th February 2023

Trond Søraas CFO

Q4 2022

A strong ending to the year

• Return on equity 13.1% in Q4 Delivering on financial targets, building capital and strengthening SMN's position in all business areas
• Sound revenue increase in the bank and subsidiaries Repricing and increased deposits lifts NII. Positive development in the accountancy arm and real estate agency
• Low loan losses with improvement in offshore Sound credit quality within mortgages and commercial real estate alike
• SMN is solid and in a good position for dividends Dividend of NOK 6.5 per ECC NOK 230m allocated to community dividend
• Fortifying SMNs position as a leading financial group

With initiatives towards attractive segments and geographies. The merger with SB 1 Søre Sunnmøre opens new opportunities in Sunnmøre and Fjordane

High return over time and solidly capitalised

CET1 ratio Return on equity (%) Dividend per ECC (NOK)

January 2023

Embezzlement in SpareBank 1 SMN

• SMN reported a hired replacement to the police for gross embezzlement on 19th of January 2023
• The bank became aware of the offence itself and reported the matter to the Norwegian Authorities
• The Police investigation confirms that the embezzlement totals just below NOK 75 million. The accused returned about 9 million before the arrest
• The net amount comes to just over NOK 65 million whereof NOK 15 million have been secured. About NOK 50 million of the embezzled amount has been lost
• SpareBank 1 SMN has insurance cover against economic crime, including embezzlement
• The embezzlement does not affect any customers, the banks' operations or its financial situation

Economic slowdown, but few signs of a crisis in the Norwegian Economy

«The economic activity is still high»

«Inflation is coming down and energy prices are normalizing»

«Interest rates near peak»

«Unemployment will most likely not increase much in Norway»

«Greatest global risks; war, climate change and the unexpected»

Harald Magnus Andreassen Chief Economist SB1 Markets

200 years of experience

Warm at heart

Corporate market Corporate banking

Pre-tax profit (NOKm)

• Record high profitability, low loan losses and good credit quality
• Regional manager in place in Oslo and increased presence in Trondheim
• Recruiting clients through digital channels leading «start a business» track
• Increased capacity and process improvements within AML
• Transition plans for net zero emission in commercial real estate and fisheries

Regnskapshuset SMN

• Established cloud-based systems and new business model
• Change programme «from accountant to advisor»
• Launched climate reporting and other advisory services
• Reduced churn and increased customer satisfaction in 2022

Banking + Accounting

• Recruiting more customers from each other and in joint efforts
• Developing customer offerings that will simplify SMB-customers businesses

Personal market Retail banking

Pre-tax profit (NOKm)

EiendomsMegler 1 MN Retail Banking

• High sustained profitability
• SMN's relationship banking concept is particularly good in uncertain times
• LO customers enables growth in lending, deposits and commission income
• Joint savings effort in the SB 1 Alliance
• Improved distribution model and increased RPA-usage
• Net zero transition plans for households and agriculture

EiendomsMegler 1 Midt-Norge

• Increased presence in Ålesund
• Strengthened focus on commercial property brokerage
• Increased revenue per sale in 2022
• Market leader with an advantage in a slower housing market

"Housing journey"

• Closer cooperation between banking advisors and real estate brokers
• Developing joint customers offerings

Merger with SB1 Søre Sunnmøre approved in supervisory/general meetings and by the Norwegian Competition Authority

Growth and improved customer offerings Strong competence environment

Local commitment and ownership

Competition for banking customers set to increase in Stryn

SpareBank 1 Søre Sunnmøre and SpareBank 1 SMN will merge in May. SMN is expanding its geographical presence substantially, and with the merger the former Søre Sunnmøre branches can offer LO Favør-products to its customers

FinansWatch 16.01.2023 – translated

Regional management group in place

Ole-Magnus Orlien, Marita Løvik Stadsnes, Kari Melle, Andre Skotheim, Stig Brautaset, Olaf Eskeland, Jan-Rune Hurlen og Sigrun Heltne Vardal (not present)

New foundation to be largest owner in MING

Sunnmøre will experience that SMN has the local community at heart through the presence of the foundation and the bank

Community dividend 2018-2022

~ NOK 1bn

to non-profit causes in Mid-Norway

~ NOK 1 bn

To the owning foundation– Society's «savings account»

The community dividend is invested in five key areas

Community

We care about people. Both in our local community and the rest of the world

Sports and outdoor activities

We contribute to improved public health through supporting sports, games and outdoor activities

Art and culture

We create a vibrant and diverse cultural life with great experiences locally

Innovation and value creation

As an important institution in our region we add culture, competence and capital that shapes tomorrows business environment

Sustainability

We are a driver for green transition and engages the region in yearly improvements in order the reach the sustainability goals

Strategic priorities unchanged – focus on execution

Creating One SMN Greater digitalisation and use of insight Head up the development of Norway's savings banks system Integrating sustainability into the business Exploit the power in SMN's ownership model

Financial information

Fourth quarter 2022

Q4 2022

Net profit

NOK 768m (703) in Q4 NOK 2,785m (2,902) in 2022

Return on equity

13.1% (12.7) in Q4 12.3% (13.5) in 2022

CET1 ratio 18.9% (18.0)

Lending growth 1.1% (1.8) in Q4 and 8.1% (6.9) in 2022

Deposit growth 1.2% (1.5) i Q4 og 9.6% (14.1) in 2022

Book value per ECC NOK 109.86 (103.48) Result per ECC NOK 12.82 (13.31) in 2022

Dividend NOK 6.50 (7.50) per ECC Community dividend NOK 474m (547) Payout ratio 50.7 % (56.3)

Profitable and solid

Return on equity

CET1 ratio

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

Dividend

Proposed dividend of NOK 6.50 per ECC

Total dividend NOK 840m

Community dividend NOK 474m, of which NOK 230m to be distributed to non-profit causes

Payout ratio of 50.7 per cent

Strenghtened market position

Corporate market

Share of loans to businesses 32.9% (31.9) Share of newly established businesses 28.7% (28.2) 5 accountancy firms bought and organic growth of 7.8% (5.4) Increased preference share by 2 pp. since 2019

Personal market

Share of housing loans 31.9% (31.8) Share of houses sold 36.5% (35.6) Increased preference share by 4 pp. since 2019

Sources: housing loans is SMNs share of mortgage collateral in the region, source Eiendomsverdi. Houses sold is EM1s share of number of houses sold in the region, source Eiendomsverdi. Share of loans to businesses is SMNs share of number of collateral in the region, source SSB. Newly established businesses is SMN's share of newly established businesses in the region, source Brønnøysundregisteret. Preference 16 Fourth quarter 2022 share is from Kantar's positional survey August 2021

Growth

Lending Total loans NOK 211bn, YoY growth of 8.1 per cent

Market growth in mortgages 4.2 per cent (C2) last 12 months (December 2022)

Credit growth is expected to be lower going forward

Lending growth RM 7.0% (CAGR)

Lending growth CM 7.4% (CAGR)

Deposits

Total deposits of NOK 122bn, growth of 9.6 per cent YOY

Deposit-to-loan ratio 58 per cent (57 per cent)

40.6 35.7 33.1 44.6 48.3 +7.9% +13.7% +9.8% +8.4%

2018 2019 2020 2021 2022

High activity across the Group

Pre-tax profit (NOKm)

Personal market

EiendomsMegler 1 Midt-Norge Retail banking

Corporate market

SpareBank 1 Markets is among the leading capital market firms in Norway

• Merger with the capital market arms of SB1 SR-Bank and SB1 Nord-Norge planned in March 2023, given approval from the FSA and the Norwegian Competition Authority
• SpareBank 1 Markets will become a more diversified and robust company with greater proximity to its client base

Broad product range and diversified income platform 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

Profits

Profitable and robust income platform

Good results, above financial targets in Q4 and 2022 alike

Strong NII development and continued low loan losses

Increased profits from SpareBank 1 Gruppen in Q4

mill NOK	2022	2021	Change	Q4 22	Q3 22	Q2 22	Q1 22	Q4 21
interest income Net	3 339 ,	2 805 ,	533	961	814	803	759	725
Commission income income and other	2 042 ,	2 141 ,	-99	473	491	555	522	521
Operating income	5 380 ,	4 946 ,	434	1 435 ,	1 305 ,	1 359 ,	1 281 ,	1 246 ,
Total operating expenses	2 443 ,	2 360 ,	83	646	583	585	629	609
business of Pre-loss result core	2 937 ,	2 586 ,	350	789	722	774	652	637
loans and Losses guarantees on	-7	161	-168	19	22	-48	0	3 2
business Post-loss result of core	2 944 ,	2 426 ,	518	770	700	822	652	605
Related companies	442	705	-264	195	108	77	62	186
Securities foreign and derivates currency ,	-61	134	-196	-33	-22	-120	113	-18
before Result tax	3 324 ,	3 266 ,	58	932	785	779	827	773
Tax	718	563	155	210	179	164	166	103
Result investment held for sale	179	200	-21	46	10	87	3 7	3 3
profit Net	2 785 ,	2 902 ,	-117	768	617	702	698	703
equity Return on	12 3 %	13 5 %	-1 2 %	13 1 %	10 9 %	12 9 %	12 5 %	12 7 %

Margins versus 3M NIBOR

Policy rate raised to 2.75% in December 2022. Norges Bank indicates a policy rate of 3.0% in March 2023

Mortgages have been repriced with every policy rate hike. Further increase from February 1 st .

Deposit rates for corporate and retail customers alike have also been adjusted with the increasing policy rate

Lending

CM RM

Deposits

Revenue

Net interest income and other income Commission income

Commission income Boligkreditt and Næringskreditt Net interest income

mill NOK	Q4 22	Q3 22	Q2 22	Q1 22	Q4 21
transmission income Payment	91	91	79	69	78
Credit cards	1 5	1 5	1 5	1 5	1 5
Commissions savings and asset mgmt	1 1	9	1 0	9	1 3
Commissions insurance	60	60	59	57	55
commissions Guarantee	2 5	1 6	1 0	1 9	2 3
Estate agency	94	105	125	94	100
services Accountancy	127	115	167	156	114
Other commissions	1 4	1 2	9	1 4	1 7
Commissions Bolig/Næringskreditt ex.	438	424	475	434	416
Commissions Boligkreditt (cov bonds)	32	63	77	84	102
Commissions Næringskreditt bonds) (cov	4	4	4	4	3
commission income Total	473	491	555	522	521

Costs

Increased costs in Q4

• Costs related to the planned merger with SB 1 Søre Sunnmøre
• In addition costs related to IT development, consultants and general expenses

Total quarterly costs (NOKm)

Industry indicator 2022

The positive outlook after the pandemic turned this fall

Source: SMNs industry indicator 2022 – view of the year to come

Loan portfolio

High share of lending to wage earners

Low unemployment and a sound mortgage portfolio with low default rates

Net NOK 10bn of the best secured mortgages sold to SpareBank 1 Boligkreditt in 2022

Diversified corporate portfolio across sectors and geographies

Improvement within offshore, but somewhat higher uncertainty in some of the other sectors

Lending per 31.12.22 and change YoY (NOKbn)

Low losses

No increase in bankruptcy rates in Mid-Norway through 2022

Continued improvement in the offshore portfolio improved in Q4

The credit quality in the corporate portfolio is acceptable. Following insecurity due to inflation and higher interest rates the IFRS 9 impairments have increased

93 per cent (195.4 NOKbn) of the loan portfolio is in stage 1

Loan losses (NOKm)

Distribution of losses Q4 22 (NOKm) Distribution of loans Q4 22 (NOKbn)

26 Fourth quarter 2022

Solidity

CET1 ratio of 18.9% (18.0) as at 31. December 2022

FSA announced on 30. April 2022 that SpareBank 1 SMN is to have a temporary 0.7 per cent in additional Pillar 2-requirement and Pillar 2 guidance of 1.25 per cent in addition to CET1-requirements.

The groups long term CET1 target is 17.2 per cent

CET1 ratio decreased in Q4 following reversed basis swap effects from SB 1 Boligkreditt. A strong quarterly result mitigates some of the negative CET1 effects.

CET1

Leverage ratio

The Group's climate footprint – starting point for transitioning

• The loan portfolio represents an emission of 1.1 mill tCO2e in 2022, about 98% of the Group's total climate gas emissions
• Concentrated emission profile where agriculture and shipping related segments are dominant
• Emissions are estimated based on the PCAF industry standard, but there is uncertainty with regards to data quality
• The reporting serves as a guideline for the Group's work in achieving net zero emissions by 2050

Transition plans will help SMN reach net zero by 2050

Plans are to be established per sector

• Transition plans include emission trajectories and measures to realise the ambition of net zero emissions by 2050
• The plans will contribute to a predictable and organised transition while at the same time reducing our clients' vulnerability from climate change
• Transition plans for agriculture, households, fisheries and commercial real estate are in place. Other industries to be finalised during 2023

Focus areas in 2023

Materiality assessment updated in Q422

Responsible lending and investments

Advisory and customer offerings

Regional transition in Mid-Norway

Transition in finance centres

Updated financial targets

SpareBank 1 SMN (MING) - an attractive investment

High return over time

Sustainable growth, efficient banking operations with synergies within the Group. Solidly capitalised and 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

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

The Mid-Norwegian economy is robust

Sources: NAV, SSB, NordPool and Brønnøysundregisteret

Bankruptcies

Number of bankruptcies in Trøndelag and Møre og Romsdal

Commission income

mill NOK	2022	2021	Change	Q4 22	Q3 22	Q2 22	Q1 22	Q4 21
transmission income Payment	329	283	46	91	91	79	69	78
Credit cards	62	41	2 1	1 5	1 5	1 5	1 5	1 5
Commissions savings and asset mgmt	40	59	-18	1 1	9	1 0	9	1 3
Commissions insurance	236	214	2 2	60	60	59	57	55
commissions Guarantee	70	67	3	2 5	1 6	1 0	1 9	2 3
Estate agency	418	441	-23	94	105	125	94	100
services Accountancy	564	529	34	127	115	167	156	114
Other commissions	51	43	8	1 4	1 2	9	1 4	1 7
Commissions Bolig/Næringskreditt ex	1 770 ,	1 677 ,	93	438	424	475	434	416
Commissions Boligkreditt bonds) (cov	256	450	-194	32	63	77	84	102
Commissions Næringskreditt bonds) (cov	1 6	1 4	2	4	4	4	4	3
commission income Total	2 042 ,	2 141 ,	-99	473	491	555	522	521

Product companies

Profit share after tax

Associated companies (after tax)

NOK mill, SMN's share in parentheses	2022	2021	Change	Q4 22	Q3 22	Q2 22	Q1 22	Q4 21
SpareBank 1 Gruppen (19.5%)	175	471	-296	128	17	16	13	173
SpareBank 1 Boligkreditt (22.6%)	1	16	-16	-1	10	-4	-5	-2
SpareBank 1 Næringskreditt (16.3%)	3	7	-4	2	0	2	0	0
BN Bank (35.0%)	203	164	39	54	53	47	49	42
SpareBank 1 Kreditt (18.7%)	9	13	-4	0	3	3	3	2
SpareBank 1 Betaling (20.8%)	13	-15	2 8	2 2	-3	0	-5	-9
SpareBank 1 Forvaltning (19.6%)	33	32	1	5	10	11	8	12
Other companies	6	17	-11	-15	19	2	-1	-32
Sum associated companies	443	705	-263	195	109	77	62	186

Subsidiaries

Profit before tax

mill in share parentheses NOK SMN's ,	2022	2021	Change	Q4 22	Q3 22	Q2 22	Q1 22	Q4 21
EiendomsMegler Midt (87%) 1 -Norge	58	70	-12	-6	1 2	38	1 4	1
SpareBank Regnskapshuset (89%) 1 SMN	96	82	1 4	2 0	2 2	30	2 3	3
SpareBank Finans Midt (56 5%) 1 -Norge	192	151	41	51	44	50	47	45
SpareBank (100%) 1 SMN Invest	52	190	-139	-21	-30	-29	132	-4
Other companies	8	4	4	3	3	1	1	0
Subsidiaries	406	497	-91	4 7	5 0	91	218	4 6

Return on financial investments

mill NOK	2022	2021	Change	Q4 22	Q3 22	Q2 22	Q1 22	Q4 21
gain/(loss) stocks Net on	3 1	169	-156	-23	-67	-35	137	1 5
gain/(loss) financial instruments Net on	-198	-146	-51	-55	6	-125	-33	-59
gain/(loss) forex Net on	91	72	9 1	2 5	30	2 9	8	2 5
financial instruments Net return on	-94	94	-188	-52	-30	-131	111	-19

Equity certificate, key figures

figures Key	2022	2021	2020	2019	2018
ratio ECC	64 0 %	64 0 %	64 0 %	64 0 %	64 0 %
issued (mill) Total ECCs	129 29	129 39	129 39	129 30	129 62
price ECC	127 40	149 00	97 60	100 20	84 20
Market value (NOKm)	16 471 ,	19 279 ,	12 629 ,	12 956 ,	10 914 ,
equity capital Booked ECC per	109 86	103 48	94 71	90 75	83 87
earnings in ECC NOK Post-tax per ,	12 82	13 31	8 87	12 14	9 97
Dividend ECC per	6 50	7 50	4 40	6 50	5 10
P/E	9 94	19 11	01 11	8 26	8 44
Price equity capital / Booked	1 16	1 44	1 03	1 10	1 00

Balance sheet

bn NOK	2022	2021	2020
receivables Cash and from central banks	2 1	3 1	2 8
Deposits with credit institutions and loans to	11 7	4 7	5 1
receivables loans and from Net to customers	151 5	145 9	133 1
Fixed-income and bonds CDs	38 1	30 8	26 6
, units equity interests Shares and other	0 8	2 7	2 4
in companies related Investment	8 1	7 4	7 3
Intangible assets	0 7	0 9	0 9
Other assets	11 3	5 3	9 7
Total assets	223 3	198 8	187 9
Capital funding market	62 1	55 4	57 0
Deposits from and debt to customers	122 0	111 3	97 5
Other liabilities	11 0	7 1	3 10
held for sale Investment	1 1	-	-
Subordinated loan capital	2 1	8 1	8 1
Total equity Tier Capital 1 ex	23 2	21 9	20 0
Addition Tier Capital 1	8 1	3 1	3 1
liablities equity Total and	223 3	198 8	187 9

Lending and deposits per quarter

Lending

Lower growth rate throughout the year, as expected

Deposits

Variable but satisfactory development in 2022

Lending Lending

Deposits

Retail banking Corporate banking

Deposits

Problem loans

• Decrease in Q2 2022 following lower exposure related to offshore
• Problem loans are based on conservative assessments

Loans to customers in stage 3

% of gross lending Lending to customers in stage 3