SpareBank 1 SMN

Investor Presentation • May 8, 2024

First quarter 2024

8 th of May 2024

Jan-Frode Janson CEO

Q1 2024

Profitable and solid

• Return on equity of 16%

High net interest income, good commission income and increased underwriting results from the SpareBank 1 Group

• Efficient operations drawing on intra-group synergies Growth and good profitability in all business lines, reduced costs and low losses
• Excellent trend in savings and investment Net subscription in SB1 Forvaltning's funds has increased substantially to reach NOK 1.7bn in Q1, which is six times higher than at the same point last year

• Strong solidity

Well equipped to stand by our customers through demanding economic times, and with capacity for further growth

• With a heart for Mid Norway

Community Dividend supports projects that build, develop and make Mid Norway a better place to live and work

High value creation over time

Return on Equity (%) Implicit market capitalisation (bn)

Delivered on strategic priorities from One SMN 2020

4

Creating One SMN

• From bank management to group management
• Joint group functions
• 17 finance centres in Mid Norway
• Synergies between bank and broker and 'Bank in Regnskap'
• Efficient operations and capital optimalisation

Strengthening growth in the corporate market

• Lending to corporates up NOK 18bn (45%)
• Acquisition of 16 accounting firms
• From accounting services to full-fledged advisory centre
• Office established in Oslo

New segments in the retail market

• Lending to LO customers at NOK 65bn
• Retail deposit-to-loan ratio up from ~ 35% to 39%
• Private banking and wealth management

Structural initiatives

• Merger with SpareBank 1 Søre Sunnmøre
• Merger of SpareBank 1 Markets with the capital markets businesses of SpareBank 1 SR-Bank and SpareBank 1 Nord-Norge
• Clarification of underlying value of holdings in and outside SpareBank 1

Powering up digitalisation and insights

• Digital sales up from ~ 35% to 50% *
• Highly ranked mobile banking facility and digital customer journeys
• Predictive computer models developed using AI (recruitment, multi-product customers, customer churn et al.)
• Explore artificial intelligence to improve the efficiency of, and personalise, the customer's journey

Integrating sustainability into the business

• Strategies and goals adopted for sustainable development
• Double materiality analysis updated
• Committed to science-based climate targets
• Net-zero transition plans established
• Carbon accounting and ESG reporting established

Exploiting the power in our ownership model

• Såkorn 1 Midt established
• Annual community dividend increased from ~ NOK 300m to NOK 1bn
• Participation in the MING savings program from ~ 55% to 75%
• Increased regional awareness of community dividend

Group strategy 'One SMN' stands firm

Create One SMN Increase digitalisation

and use of insights

Head up the development of Norway's savings banks

Integrate sustainability into the business

Exploit the power in our ownership model

5

Norway's most complete finance centre

Merger with SB1 1 Søre Sunnmøre

a profitable investment for owners, employees, customers and the community

• Increased return on equity from ~9 % in SB1 Søre Sunnmøre to target of 13 % in SMN
• The savings bank foundation Søre Sunnmøre is the largest owner in SMN, dividend to the foundation of NOKM 156 in 2023
• Finance centres in Ålesund and Volda, New offices in Stryn and Sykkylven
• Improved offering to personal customers, Increased lending capacity to businesses
• More customer-facing staff and strengthened specialist units

Såkorn 1 Midt has reached its first milestone – NOK 200m to green early-stage investments in Mid Norway

• In the spring of 2023 SMN announced its ambition to establish the seedcorn fund Såkorn 1 Midt
• Såkorn 1 Midt will translate the region's creative power into jobs and future value creation
• The bank's contribution is from the community dividend and should constitute a maximum of 50 per cent of committed capital.
• NOK 200m ambition was reached in the first round of subscription, and the fund will now be established
• About 70 investment projects are under consideration, and it is expected that the first investment will be decided before the summer

NOK 50 m to the Kavli Foundation

The value of public health

We know that investing in people and communities helps to shape a sustainable future. We will now engage even more people to take active, social and meaningful steps together

We seek young talents

Get more people on the team!

Financial Information

Trond Søraas CFO

Q1 2024

16.0 % Return on Equity

1,084 NOKm Profit after tax

18.5 % CET1-ratio Lending growth 0.8 % Retail banking 0.6 % Corporate banking 1.5 %

Deposit growth 1.1 % Retail banking 1.6 % Corporate banking 2.5 %

Operating margin subsidiaries

Regnskapshuset SMN 16.1 % Eiendomsmegler 1 Midt-Norge 17.1 % SB1 Finans Midt-Norge 12.1 % (ROE)

Financial targets

Profitable and solid

Return on equity

CET1 ratio

Result per ECC Loan losses in per cent of total lending

Strong results across the group

Profit before tax (NOKm)

Profit before tax (NOKm)

Growth and margins in Retail Banking - quarterly

Growth and margins in Corporate Banking - quarterly

* Lending margin for Q4 23 is adjusted for previously unrecognised interest due to redemption of an exposure previously acquired at a discount

Broad product range and diversified income platform

Results

mill NOK	Q1 24	Q4 23	Q3 23	Q2 23	Q1 23	Change from Q4 24	Change from Q1 23
interest income Net	1 306 ,	1 312 ,	1 191 ,	1 094 ,	1 035 ,	-6	271
Commission income and other income	572	498	484	561	541	7 4	3 1
Operating Income	878 1 ,	811 1 ,	675 1 ,	655 1 ,	576 1 ,	67	302
operating Total expenses	782	866	741	683	728	-84	5 4
business Pre-loss result of core	096 1 ,	945	934	972	847	151	249
loans and Losses guarantees on	24	20	3 5	29	-71	3	94
business Post-loss result of core	1 073 ,	925	899	943	918	148	154
companies Related	194	90	-2	85	125	104	69
Securities foreign derivates and currency ,	87	481	99	18	-97	-395	184
Result before tax	353 1 ,	496 1 ,	996	045 1 ,	946	-143	407
Tax	273	262	278	159	206	11	67
Result investment held for sale	3	12	22	3 7	3 8	-9	-35
profit Net	084 1 ,	247 1 ,	740	923	778	-163	305
equity Return on	16 0 %	18 3 %	% 11 1	% 15 1	13 0 %	-2 3 %	3 0 %

Income

Net interest income and other income (NOKm) Commission income

mill NOK	Q1 24	Q4 23	Q3 23	Q2 23	Q1 23	Change from Q4 23	Change from Q1 23
transmission income Payment	77	101	79	77	72	-25	5
Credit cards	18	14	16	15	17	4	1
Commissions savings and asset mgmt	11	11	10	12	10	0	1
Commissions insurance	63	61	67	65	61	3	2
commissions Guarantee	15	16	15	13	16	-1	-1
Estate agency	115	98	110	119	105	17	9
services Accountancy	200	152	138	182	188	48	11
commissions Other	11	23	20	22	11	-11	0
Commissions Bolig/Næringskreditt ex.	510	475	455	504	480	34	29
Commissions Boligkreditt bonds) (cov	9 5	19	25	3 5	5 7	39	2
Commissions Næringskred (cov bonds)	4	4	4	4	3	0	0
commission income Total	572	498	484	561	541	74	31

Costs

Total operating expenses per quarter (NOKm) Costs per category

• Merger and growth initiatives has increased costs in the last year
• The costs have decreased by NOK 84 million from the fourth quarter, which was affected by periodic effects of IT expenses and recognition of wealth tax costs
• Costs in Q1 are reduced following reversal of operational losses
• Expecting normalization of cost growth in 2024

Mill kr	Q1 24	Q4 23	Q3 23	Q2 23	Q1 23	Change from Q4 23	Change from Q1 23
Staff costs	482	476	435	383	398	7	84
IT costs	110	132	93	92	95	-22	15
Marketing	26	21	24	25	23	5	3
Ordinary depreciation	41	47	43	35	29	-6	12
properties real Op estate .ex.,	13	11	15	14	16	2	-4
services Purchased	74	71	62	5 7	49	3	25
Merger expenses	0	18	14	18	14	-18	-14
operating Other expense	36	90	5 6	5 9	104	-54	-67
operating Total expenses	782	866	741	683	728	-84	54

Well diversified lending portfolio dominated by mortgages

Loans per sector

as at 31st of March 2024 and change last 12 months (NOKbn)

Robust mortgage portfolio

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

Granted interest-only periods

Number of loans granted interest-only periods in the Retail Banking portfolio

Commercial property, construction, building

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

*Gross lending to commercial real estate as a share of corporate lending.. National data from SSB. Data for individual banks are based on reported numbers as at Q4 2023

Rental properties make up 72 % of the banks CRE exposure, mainly to retail trade, industry/storage and offices

EAD næringseiendom brutt ned på formål

Losses

Loan losses (NOKm) Distribution of losses Q1 (NOKm)

Problem loans

Solidity

CET 1 Leverage ratio

The groups' pillar 2 re uirement is 1, percentage points, whereby 1,0 pp must be covered by T1-capital. 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 16.95%

27

SpareBank 1 MING

Focus on long-term profitability

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

Leading finance centre in Mid-Norway

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

Strong brand with development potential

ownership model and local presence gives customer loyalty

Substantial underlying value

through ownership positions in and outside the SpareBank 1 Alliance

Well positioned in regards to consolidation

amongst Norwegian savings banks and through the SpareBank 1 Alliance

Driver of sustainable transition

• Double materiality analysis
• Science-based climate targets
• Climate account
• Framework for circular economy

Double materiality analysis

• The updated double materiality analysis takes account of internal changes, changes in the surroundings and new regulatory requirements (CSRD)
• Identifies significant impacts, risks and opportunities related to climate, environment and the community
• Provides insights for revision of the the group's strategic direction and adjustments to the business model
• Provides insights for prioritising measures designed to assist SMN in achieving its goals in the sustainability sphere

Science-based climate targets and reporting

• SMN has adopted emissions targets under the Norwegian Climate Change Act
• Minimum 55% emissions reduction by 2030 and 90-95% by 2050
• SMN has committed to establishing science-based climate targets for its own operations and for financed emissions (Science Based Targets Initiative)
• Emissions calculations for the loan portfolio
• Transition plans and emissions paths at industry level
• Credit strategy and credit process in the business lines
• Reporting under new expectations and requirements
• Financed emissions make up the largest share of emissions in our value chain
• High emissions will mean weaker competitive power in the years ahead
• will assist customers' transition to a low emissions society
• Challenges: data quality, calculation methods and measurement uncertainty

Framework for circular economy

• Circular transition is part of the solution to emissions reduction

• SMN has established a pan-group project for circular economy
• Phase 1 Develop the framework and methodology
• Phase 2 Pilot projects in day-to-day operations at SMN Here the object is to learn, and to reduce 's own emissions
• Phase 3 Projects in lending, investment, products and services Here the object is to exert influence on customers and businesses
• Collaboration in specialist networks, the SpareBank 1 Alliance and with other partners

Disclaimer

This presentation contains certain forward-looking statements relating to the business, financial performance and results of SpareBank 1 SMN and/or the industry in which it operates. Forward- looking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words "believes", "expects", "predicts", "intends", "projects", "plans", "estimates", "aims", "foresees", "anticipates", "targets", and similar expressions.

The forward-looking statements contained in this presentation, including assumptions, opinions and views of SpareBank 1 SMN, or cited from third party sources, are solely opinions and forecasts which are subject to risks, uncertainties and other factors that may cause actual events to differ materially from any anticipated development. Important factors that may cause such a difference for SpareBank 1 SMN are but not limited to: (i) the macroeconomic development, (ii) change in the competitive climate, (iii) change in the regulatory environment and other government actions and (iv) change in interest rate and foreign exchange rate levels.

SpareBank 1 SMN do not provide any assurance that the assumptions underlying such forward-looking statements are free from errors and do not accept any responsibility for the future accuracy of the opinions expressed in this presentation or the actual occurrence of the forecasted developments. SpareBank 1 SMN assumes no obligation, except as required by law, to update any forward-looking statements or to conform these forward-looking statements to our actual results.

Appendix

Macro in Mid-Norway

Unemployment

Wholly unemployed as a percentage of the labor force

Housing market dynamics

-

Development in housing prices

124 Q1 24 129 133 138 142 Norway Trondheim Mid-Norway ex. Trondheim Møre & Romsdal 2015 100

Source: NAV, SSB Boligpriser, Brønnøysundregisteret og Eiendomsverdi

Number of bankruptcies in Trøndelag, Møre & Romsdal

Growth and margins in Retail Banking - Yearly

Margins vs NIBOR3M

Growth and margins in Corporate Banking - Yearly

Deposit volume

12-month growth ex. merger: -5,5 %

Margins vs NIBOR3M

-

Product companies

mill in share parentheses NOK SMN's ,	Q1 24	Q4 23	Q3 23	Q2 23	Q1 23	Change from Q4 23	Change from Q1 23
SpareBank (19 5%) 1 Gruppen	40	-51	-13	-5	3 4	90	6
SpareBank Boligkreditt (23 7%) 1	3 3	3 0	5	29	3 3	3	-0
Næringskreditt SpareBank (14 8%) 1	4	1	4	3	2	3	2
Bank (35 0%) BN	84	73	64	5 8	62	11	23
SpareBank Markets (39 9%) 1	25	19	0	0	0	6	25
Kreditt SpareBank (18 6%) 1	-4	-3	-3	-2	-4	-0	1
SpareBank Betaling (21 9%) 1	-12	-8	-10	-11	-8	-4	-4
Forvaltning SpareBank (21 5%) 1	10	12	6	8	8	-2	2
Other companies	13	16	-55	5	-3	-3	16
associated companies Sum	194	90	-2	8 5	125	104	69

Subsidiaries

mill in share parentheses NOK SMN's ,	Q1 24	Q4 23	Q3 23	Q2 23	Q1 23	Change from Q4 23	Change from Q1 23
EiendomsMegler Midt-Norge (92 4%) 1	20	-7	-1	3 1	18	26	2
SpareBank Regnskapshuset SMN (93 3%) 1	3 5	8	11	45	44	27	-9
Finans Midt-Norge SpareBank (56 5%) 1	66	12	3	43	5 3	5 5	14
SpareBank (100%) 1 SMN Invest	48	66	3 7	-4	-31	-18	79
companies Other	5	4	3	4	4	1	1
subsidiaries Sum	174	8 3	53	118	8 8	91	8 6

Return on financial investments

NOK mill	Q1 24	Q4 23	Q3 23	Q2 23	Q1 23	Change from Q4 23	Change from Q1 23
Net gain/(loss) on stocks	42	472	17	-7	-17	-429	5 9
Net gain/(loss) on financial instruments	20	-8	47	-30	-105	27	125
Net gain/(loss) on forex	22	27	20	38	23	-5	-1
Net return on financial instruments	8 4	491	8 3	1	-99	-407	183

Diversified deposit portfolio

Public deposits are not covered by the guarantee scheme, but are mostly

bound by contractual obligations

LCR: Liquidity Coverage Ratio

Maturity structure

NOKbn

Development in CET1 capital and capital adequacy

CET1 ratio in per cent

Equity certificate, key figures

figures Key	Q1 24	2023	2022	2021	2020
ratio ECC	66 8 %	66 8 %	64 0 %	64 0 %	64 0 %
issued (mill) Total ECCs	13 144	20 144	129 29	129 39	129 39
price ECC	137 80	141 80	127 40	149 00	97 60
Market value (NOKm)	19 861 07 ,	20 448 11 ,	16 470 99 ,	19 278 78 ,	12 628 54 ,
equity capital Booked ECC per	113 24	120 48	109 86	103 48	94 71
earnings in ECC NOK Post-tax per ,	68 4	16 88	12 82	13 31	8 87
Dividend ECC per	-	12 00	6 50	7 50	4 40
P/E	7 36	8 40	9 94	11 19	11 01
Price equity capital / Booked	22 1	18 1	16 1	1 44	03 1

Balance

NOKbn	31 3 24	31 3 23
Cash and receivables from central banks	2 0	1 2
Deposits with credit institutions and loans to	8 1	8 6
receivables from loans and Net to customers	168 4	152 2
Fixed-income and bonds CDs	36 1	3 44
, units equity interests Shares and other	1 2	0 8
in related companies Investment	9 0	7 9
Intangible assets	2 1	0 7
Other assets	9 7	12 4
Total assets	235 7	228 2
Deposits from credit institutions	14 9	15 9
Debt created by issue of securities	43 8	49 4
Deposits from and debt to customers	134 4	123 5
liabilities Other	12 9	12 7
held for sale Investment	0 0	0 6
Subordinated capital loan	2 8	2 1
Total equity Tier Capital 1 ex	25 1	22 4
Additional Tier Capital 1	1 9	1 7
liabilities equity Total and	235 7	228 2