SpareBank 1 SMN

Investor Presentation • Feb 8, 2024

Fourth quarter 2023 Preliminary annual accounts

8 February 2024

Jan-Frode Janson Group CEO

Trond Søraas CFO

Q4 2023 Profitable and solid

• Return on equity of 18.3% in Q4 and 14.4% in 2023 Good profitability across business lines. Gain from SpareBank 1 Markets transaction in the quarter.
• SMN strengthens position as leading finance centre

Growth strategy achieved across geographical locations and customer segments. Increased market shares in banking, accounting and estate agency.

• High cost growth in 2023

This cost picture is related to new ventures, merger, fraud and the bank's anniversary. The cost level is expected to normalise in 2024.

• Strong profitability and solidity make for record dividend payout

A cash dividend of NOK 12.00 per equity certificate for 2023. NOK 860m allocated to community dividend.

High value creation over time

Return on equity (%) Dividend per equity certificate (NOK)

Implicit market capitalisation (bn)

An eventful 2023

June Såkorn 1 Midt established

SB1 Markets strengthened with SB1 SR-Bank and SB1 Nord-Norge on the team

Fremtind Forsikring and Eika Forsikring amalgamate SB1 1 Kreditt and Eika Kredittbank pool their activities SB1 Finans Midt-Norge takes over distribution for Sparebanken Møre

May - September SMN celebrates 200th anniversary with events across all Mid-Norway

May Merger with SpareBank 1 Søre Sunnmøre

January Gross embezzlement at SMN

Personal market

Pre-tax profit (NOKm)

EiendomsMegler 1 Midt-Norge Retail Banking

Another piece in place at SMN's finance centres

• Overall concept featuring products and solutions for private banking and wealth management
• Specialist advisers to help with complex finances
• Good geographical coverage Oslo, Trondheim and Sunnmøre
• NOK 1bn of new AUM since start-up

Corporate market

Pre-tax profit (NOKm)

Growth resulting from strategic initiatives in 2023

25% Increased revenues from advisory services 75% increase from 2020

1,000 Regnskapshuset attracts new customers All time high customer influx

Increased market share for the bank since 2021 No. of residential collaterals in Trøndelag, Møre and Romsdal

SMN shows the largest increase in the region

Interdisciplinary team in place in Oslo First corporate loan disbursed

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

7

Strategic priorities for 2024

No. 1 ambition

To strengthen market position through organic growth, increased advisory capability and efficient and effective operations

• Achieve added growth
• One SMN version 2.0
• Efficient operations and capital use

Create a bank for the future

Explore business opportunities, new technology and adapt to framework conditions

• Structure
• Artifical intelligence
• Sustainability in the business

Teaming up with Mid-Norway

More than NOK 2.6bn to community dividend in the last five years

Non-profit causes

Næringsdriv Talent scholarship

MODIG Green innovation

Financial information

18.3% Return on equity

1,247 NOKm Net profit

18.8% CET1 ratio

14.4% Return on equity Lending growth 11.9% Retail Banking 13.1% Corporate Banking 10.4%

3,688 NOKm Net profit

Deposit growth	8.9%
Retail Banking	17.6%
Corporate Banking	0.1%

14 NOKm Loan losses

Profit margin subsidiaries

Regnskapshuset SMN 15.2% Eiendomsmegler 1 Midt-Norge 9.3% SB1 Finans Midt-Norge 3.8% (ROE)

Financial targets

Record high dividend for 2023

The Mid-Norwegian economy

Wholly unemployed as a percentage of the labour force

Housing prices Bankruptcies

Unemployment

Sources: NAV, SSB, Eiendomsverdi and Brønnøysundregisteret

From sellers to buyers' market

Number of bankruptcies in Trøndelag and Møre & Romsdal

Profitable and solid

Return on equity

CET1 ratio

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

15

Growth and margins in Retail Banking - quarterly

Growth and margins in Corporate Banking - quarterly

Lending margin for Q4 23 is adjusted for the NOK 59m of previously unrecognised interest due to redemption of an exposure previously acquired at a discount

Broad product range and diversified income platform

Results

mill NOK	2023	2022	Q4 23	Q3 23	Q2 23	Q1 23	Q4 22
interest income Net	4 632	3 339	1 312	1 191	1 094	1 035	961
Commission income and other income	2 084	2 042	498	484	561	541	473
Operating Income	6 716	5 380	1 811	1 675	1 655	1 576	1 435
operating Total expenses	3 017	2 443	866	741	683	728	646
business Pre-loss result of core	3 699	2 937	945	934	972	847	789
loans and Losses guarantees on	14	-7	20	3 5	29	-71	19
business Post-loss result of core	3 685	2 944	925	899	943	918	770
companies Related	297	442	90	-2	85	125	195
Securities foreign derivates and currency ,	502	-61	481	99	18	-97	-33
Result before tax	484 4	3 324	496 1	996	045 1	946	932
Tax	904	718	262	278	159	206	210
Result investment held for sale	108	179	12	22	3 7	3 8	46
profit Net	3 688	2 785	1 247	740	923	778	768
equity Return on	% 14 4 ,	12 3 % ,	18 3 % ,	% 11 1 ,	% 15 1 ,	13 0 % ,	13 % 1 ,

Revenue

Net interest income and other income Commission income

NOK mill	2023	2022	Q4 23	Q3 23	Q2 23	Q1 23	Q4 22
Payment transmission income	330	329	101	79	77	72	91
Credit cards	61	61	14	16	15	17	15
Commissions savings and asset mgmt	43	40	11	10	12	10	11
Commissions insurance	253	236	61	67	65	61	60
Guarantee commissions	60	70	16	15	13	16	25
Estate agency	432	418	98	110	119	105	94
Accountancy services	661	564	152	138	182	188	127
Other commissions	76	5 1	23	20	22	11	14
Commissions ex. Bolig/Næringskreditt	1 915	1 770	475	455	504	480	438
Commissions Boligkreditt (cov. bonds)	155	256	19	25	5 3	5 7	32
Commissions Næringskred. (cov. bonds)	15	16	4	4	4	3	4
Total commission income	2 084	2 042	498	484	561	541	473

Costs

Total operating expenses per quarter (NOKm) Costs per category

• Merger costs and growth initiatives have increased costs in 2023
• In additon, costs related to anniversary celebration, backpay of local wage settlemens, wealth tax and increased number of employees
• Acquisitions in SpareBank 1 Regnskapshuset and wage growth affect the costs of subsidiaries
• Expect normalisation of the cost level in 2024

Mill kr	2023	2022	Q4 23	Q3 23	Q2 23	Q1 23	Q4 22
Staff costs	1 691	1 406	476	435	383	398	333
IT costs	413	355	132	93	92	95	100
Marketing	93	86	21	24	25	23	24
Ordinary depreciation	153	117	47	43	35	29	33
properties real Op estate .ex.,	5 7	5 5	11	15	14	16	9
services Purchased	238	195	71	62	5 7	49	5 3
Merger expenses	64	22	18	14	18	14	22
Other operating expense	309	208	90	6 5	9 5	104	73
operating Total expenses	3 017	2 443	866	741	683	728	646

Diversified lending portfolio dominated by mortgages

Loans per sector

As at 31. of December 2023 and change last 12 months (NOKbn)

Robust mortgage portfolio

Loan-to-value 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 Q3 2023.

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

EAD commercial real estate by segment

Losses

Loan losses (NOKm) Distribution of losses Q4 (NOKm)

Problem loans

Solidity

CET 1 Leverage ratio

The groups' pillar 2 requirement is 1,7 percentage points, whereby 1,0 pp. must be covered by CET1-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%

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

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

Upgraded rating to Aa3

Growth and margins in Retail Banking - Yearly

Growth and margins in Corporate Banking - Yearly

12-month growth ex. merger: 6.8 %

Deposit volume (NOKbn) Lending volume (NOKbn) Margins vs NIBOR3M

12-month growth ex. merger: -6.8 %

* Utlånsmarginen for Q4 23 er korrigert for effekten av tidligere ikkeinntektsførte inntekter i forbindelse med engasjement kjøpt til underkurs.

Product companies

mill in share parentheses NOK SMN's ,	2023	2022	Q4 23	Q3 23	Q2 23	Q1 23	Q4 22
SpareBank Gruppen (19 5%) 1	-34	175	-51	-13	-5	3 4	128
Boligkreditt SpareBank (23 9%) 1	98	1	3 0	5	29	3 3	-1
SpareBank Næringskreditt (14 8%) 1	10	3	1	4	3	2	2
Bank (35 0%) BN	257	203	73	64	5 8	62	5 4
SpareBank Markets (39 9%) 1	19	0	19	0	0	0	0
Kreditt SpareBank (19 2%) 1	-13	9	-3	-3	-2	-4	-0
Betaling SpareBank (21 9%) 1	-37	13	-8	-10	-11	-8	22
SpareBank Forvaltning (21 5%) 1	3 5	3 3	12	6	8	8	5
companies Other	-36	6	16	-55	5	-3	-15
associated companies Sum	297	443	90	-2	8 5	125	195

Subsidiaries

mill in share parentheses NOK SMN's ,	2023	2022	Q4 23	Q3 23	Q2 23	Q1 23	Q4 22
EiendomsMegler Midt-Norge (92 4%) 1	40	8 5	-7	-1	3 1	18	-6
SpareBank Regnskapshuset (93 3%) 1 SMN	108	96	8	11	45	44	20
SpareBank Finans Midt-Norge (56 5%) 1	111	192	12	3	43	3 5	5 1
SpareBank (100%) 1 SMN Invest	69	5 2	66	3 7	-4	-31	-21
Other companies	14	8	4	3	4	4	3
subsidiaries Sum	342	406	8 3	53	118	8 8	47

Return on financial investments

mill NOK	2023	2022	Q4	23	Q3 23	Q2 23	Q1 23	Q4 22
gain/(loss) stocks Net on	464	13	472		17	-7	-17	-23
gain/(loss) financial instruments Net on	-96	-198		-8	47	-30	-105	-55
gain/(loss) forex Net on	108	91		27	20	38	23	25
financial instruments Net return on	476	-94	491		8 3	1	-99	-52

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	2023	2022	2021	2020	2019
ratio ECC	66 8 %	64 0 %	64 0 %	64 0 %	64 0 %
issued (mill) Total ECCs	144 20	129 29	129 39	129 39	129 30
price ECC	8 141	127 4	149 0	97 6	100 2
Market value (NOKm)	20 448 ,	16 471 ,	19 279 ,	12 629 ,	12 956 ,
Booked equity capital ECC per	120 48	109 86	103 48	94 71	90 75
earnings in Post-tax ECC NOK per ,	16 88	12 82	13 31	8 87	12 14
Dividend ECC per	12 00	6 50	7 50	4 40	6 50
P/E	8 40	9 94	19 11	01 11	8 26
Price equity capital / Booked	1 18	1 16	1 44	1 03	1 10

Balance sheet

NOKbn	31 12 23	31 12 22
Cash and receivables from central banks	1 2	1 2
Deposits with credit institutions and loans to	8 7	11 7
receivables from loans and Net to customers	169 0	151 5
Fixed-income and bonds CDs	34 2	38 1
, units equity interests Shares and other	1 1	0 8
in related companies Investment	8 7	8 1
Intangible assets	1 2	0 7
Other assets	8 6	11 3
Total assets	232 7	223 3
Deposits from credit institutions	13 2	14 6
Debt created by issue of securities	8 45	47 5
Deposits from and debt to customers	132 9	122 0
liabilities Other	10 0	11 0
held for sale Investment	0 0	1 1
Subordinated capital loan	2 2	2 1
Total equity Tier Capital 1 ex	26 7	23 2
Additional Tier Capital 1	1 9	1 8
liabilities equity Total and	232 7	223 3
addition Boligkreditt Næringskreditt loans sold and In to	66 5	58 6

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