Q3 2026Unaudited

Sparebanken Norge’s sustainability strategy sets out a long-term target of net-zero emissions by 2040. Sparebanken Norge will make active efforts to reduce emissions from its own operations and from its lending portfolio.

In 2026, the Bank published its annual report in accordance with the EU’s Corporate Sustainability Reporting Directive (CSRD). The Bank works systematically with sustainability in its own operations and across the value chain and has high ambitions for the establishment of sustainability-linked loans for the corporate market. Key performance indicators supporting this work have been established.

At the end of the quarter, retail customers accounted for approximately 70 (70) % of the bank’s credit portfolio. Loans secured by residential mortgages account for 97.1 (97.6) % of this portfolio.

Defaults and other credit-impaired exposures to retail customers amounted to a total of NOK 974 (797) million. This corresponds to 0.27 (0.24) % of gross lending to retail customers and supports continued low risk in the portfolio. The increase is moderate and mainly driven by gradual weakening of the loan portfolio’s debt-serving capacity, in line with rising living costs and higher interest expenses.

Defaults and other credit-impaired exposures to corporate customers amounted to a total of NOK 3,833 (2,587) million, which corresponds to 2.45 (1.81) % of gross lending to corporate customers. The increase is due to increased uncertainty within property development, beyond this the increase is company specific.

Defaults and other credit-impaired exposures came to 0.94 (0.71) % for retail and corporate customers combined.

Defaults in relation to gross lending are shown in Note 10.

Overall capitalised impairments amounted to NOK 2,170 (2,050) million at the end of the quarter. The loan loss provision ratio, defined as the ratio of total provisions to defaults and other credit-impaired exposures as a percentage of gross lending, came to 45 (61) %, providing a good basis for continued low losses.

The ratio was 42 (69) % for retail customers and 46 (58) % for corporate customers. The level of provisions is considered robust overall.

The bank’s interest rate and currency risk are managed within the risk tolerance adopted by the Board and are considered low.

The bank is exposed to credit spread risk through the management of interest-bearing securities in the bank’s liquidity portfolio. The portfolio primarily consists of securities issued by sovereign states, housing credit companies, municipalities and county authorities. The bank’s credit spread risk amounted to NOK 634 (653) million at the end of the quarter.

The bank’s stock market exposure (excluding subsidiaries and associates) amounted to NOK 479 (509) million at the end of the quarter.

The Group’s liquidity situation is managed at an overarching level through the liquidity coverage ratio (LCR) framework, stress tests and the deposit-to-loan ratio. At the end of the quarter, the Group had an LCR of 179 (186) %. The bond portfolio amounted to approximately NOK 61 (71) billion. The bank’s deposit-to-loan ratio was 45.7 (47.0) % at the end of the quarter, while the net stable funding ratio (NSFR) was 120 (118) %.

During the quarter, the bank issued bonds of approximately NOK 24 billion, consisting of covered bonds (OMF) in NOK, EUR and SEK, senior preferred bonds in NOK and EUR, senior non-preferred bonds in NOK, and subordinated debt in NOK. Total capital market funding amounts to NOK 307 (280) billion, with an average remaining maturity of 2.9 (2.7) years. Covered bonds account for approximately 73 (74) % of the bank’s capital market funding at the end of the quarter.

In October 2026, Moody’s confirmed the parent bank’s ratings for long-term deposits, senior unsecured debt and counterparty risk at Aa3. The rating of the bank’s senior non-preferred debt was also confirmed at A3. Both ratings have a stable outlook.

Covered bonds issued by Sparebanken Norge Boligkreditt are also rated by Moody’s and have an Aaa rating. Moody’s has also awarded Sparebanken Norge Boligkreditt a corporate credit rating of Aa3 for senior unsecured debt in local currency and counterparty risk in both local and foreign currency. The ratings have a stable outlook in line with the parent bank’s rating.

The profit per equity certificate was NOK 3.66 (4.01) for the quarter. At the end of the quarter, book equity per equity certificate amounted to NOK 116.3 (112.2). The price of the equity certificate at the same time was NOK 212.1 (175.4), giving a price-to-book ratio at the end of the quarter of 1.82 (1.56).

Sparebanken Norge’s objective is to achieve results that provide a competitive return on the bank’s equity. The profit for the year after tax will be divided between the equity certificate capital and primary capital in proportion to their relative share of the bank’s equity (the owner fraction). The equity certificate holders’ share of the profit is divided between dividend and the equalization reserve, while the primary capital’s share of the profit is divided between the social dividend, customer dividend and the bank’s primary capital.

Considering the bank’s capital adequacy, strategy and development, the goal is for approx. 50 % of the year’s profit to be distributed to dividend funds. The potential for development and growth that creates value for the bank’s owners, the expected profit development in a normalized market situation, external framework conditions and the need for core capital will be considered when determining dividend. The bank’s dividend policy will form the basis for the resolutions proposed by the Board to the General Meeting.

The bank’s consolidated CET1 ratio was 18.1 (18.1) %¹ at the end of the quarter. Earnings accumulation during the quarter has a positive effect on the CET1 ratio, but this effect is partly offset by growth in the business segments.

The Bank’s current requirement for Common Equity Tier 1 (CET1) capital ratio is 14.9 %, consisting of a combined minimum and buffer requirement of 14 % and a supervisory, bank-specific Pillar 2 requirement of 0.9 %. With a CET1 capital ratio of 18.1 %, the Bank has a margin of 3.2 percentage points above the requirement at the end of the quarter.

The Board has adopted a capital adequacy target of 15.9 % for CET1 capital that also takes into account a margin of 1.0 percentage points, in addition to all regulatory minimum, buffer and Pillar 2 requirements. At the end of the quarter, the bank had a margin of about 2.2 percentage points to its capital adequacy target.

The Ministry of Finance has determined that Sparebanken Norge is to be classified as a systemically important financial institution (SIFI) with effect from 31 March 2027. Sparebanken Norge manages its capital adequacy based on a solvency target that incorporates the applicable buffer requirements at any given time and will therefore include the 1 percentage point buffer requirement for systemically important institutions with effect from that date.

The leverage ratio was 7.3 (7.3) % ² at the end of the quarter. The bank meets the current regulatory minimum requirement (3 %) by a good margin.

The bank’s capital adequacy is specified in Note 14.

Eiendomsmegler Norge (100 % holding) is a real estate brokerage company that is the result of the merger between Sørmegleren AS and Eiendomsmegler Vest AS. The merger was completed on 1 November 2025, with accounting effect from 2 May 2025. The company is a leading player in Southern and Western Norway and continues to expand its distribution capacity in partnership with the bank.

Eiendomsmegler Norge recorded a pre-tax profit of NOK 12 (18) million in the third quarter and NOK 48 (67) million year-to-date. The overall year-to-date result is somewhat affected by start-up costs related to expansion into new geographical markets. In Western Norway, Eiendomsmegler Norge AS has a market share of 11.4 (13.3) % in the quarter and 11.4 (13.2) % year-to-date. In the Agder counties, the company has a market share of 24.5 (26.0) % in the quarter and 24.7 (26.6) % year-to-date.

Sparebanken Norge Boligkreditt (100 % holding) manages gross loans (mortgages) in the amount of NOK 239.6 (213.5) billion. At the end of September 2026, the company issued covered bonds in the amount of NOK 224.4 (207.8) billion.

Brage Finans (71.73 % holding) is a nationwide financing group that offers leasing and loans secured by the purchased object to the corporate and retail markets. The subsidiary Factoring Finans AS offers factoring, invoice purchasing and credit insurance. The services are distributed through banks, capital goods agents and their own sales organisation.

At the end of the quarter, Brage Finans had a gross lending portfolio of NOK 33.7 (29.6) billion, corresponding to year-on-year growth of 14 (16) %.

The pre-tax profit amounted NOK 158 (158) million for the third quarter and NOK 492 (462) year-to-date. Return on equity after tax amounted to 9.6 (11.3) % in the quarter and 10.7 (11.0) % year-to-date.

Net interest income for the quarter amounted to NOK 281 (256) million and NOK 840 (740) year-to-date. The increase is mainly the result of portfolio growth. The cost-to-income ratio is 29.5 (30.1) % for the quarter and 27.6 (28.6) % year-to-date. Losses and impairments amounted to NOK 38 (13) million for the quarter and NOK 93 (48) million year-to-date. The increase in losses during the quarter is primarily attributable to a limited number of individual customer exposures and does not reflect a broader deterioration in the underlying portfolio.

At the end of the quarter, Brage Finans’s consolidated CET1 ratio was 18.0 (17.9) %, while the requirement was 15.0 (15.0) %.

Frende Kapitalforvaltning (85 % holding) holds 70 % of the shares in the management company Borea Asset Management AS. Borea Asset Management AS manages securities funds in stocks and bonds. Higher distribution through owner banks and proprietary channels contributed to solid development in both business volumes and profitability in the quarter and year-to-date.

The pre-tax profit recognized in Sparebanken Norge Group amounted to NOK 18 (7) million for the quarter and NOK 54 (14) million year-to-date. This includes amortization of excess values related to the acquisition of Borea Asset Management AS.

The share of profit from associated companies has been recognized according to the equity method, amounting to NOK 124 (119) million for the quarter.

Frende Holding (67.18 % holding, divided between 49.99 % of A shares and 100 % of B shares) is the parent company that manages the ownership of the wholly owned subsidiaries Frende skadeforsikring AS and Frende Livsforsikring AS. The companies offer a wide range of insurance products to the corporate and retail markets. The insurance products are distributed through the owners’ extensive branch networks, through other companies in the Frende family, and via Frende’s own direct channels such as the online store and customer center.

Frende Holding AS recorded a pre-tax profit of NOK 237 (230) million in the quarter and NOK 647 (578) year-to-date.

An increase in interest rates in September led to a decline in bond prices, resulting in lower-than-expected investment returns for the quarter. The financial result for the quarter amounted to NOK 52 (82) million, including interest expenses related to subordinated debt. Year-to-date, the financial result totalled NOK 216 (309) million, corresponding to a return of 3.25 (5.11) per cent on actively invested funds.

Frende Skadeforsikring AS recorded a pre-tax profit of NOK 219 (213) million in the third quarter, and NOK 561 (480) million year-to-date. The company has a total of NOK 4,030 (3,540) million in premiums, and a market share of 3.8 (3.3) % in the non-life insurance market in Norway by the end of the first quarter of 2026.

The loss ratio is 62.1 (62.2) % and the combined ratio is 80.0 (79.7) % in the third quarter. Year-to-date, the figures are respectively 67.9 (70.4) % and 84.2 (87.4) %. The improvement in the loss ratio compared with the previous year is mainly driven by stronger profitability in motor and property. Provisions for distributor profitability commissions have increased significantly from the same period last year, thereby pushing the loss ratio upward.

Frende Livsforsikring recorded a pre-tax profit of NOK 20 (18) million for the quarter and NOK 119 (104) million year-to-date. The life insurance business recorded a risk result for the first nine months weaker than expected, due to run-off losses related to older cohorts. Nevertheless, the risk results for the quarter showed a significant improvement compared with the same period last year. At the end of the third quarter, the portfolio premium amounted to NOK 946 (832) million.

The bank’s share of profits from Frende Holding AS was NOK 120 (116) million for the quarter and NOK 342 (273) million year-to-date.

Norne Securities (49.99 % holding) is a securities firm owned by savings banks. The company offers investment services to the savings banks and their customers, in both the corporate and retail markets.

Norne Securities has built a strong position as a financial advisor and product company for savings banks. Customer activity among retail clients in equity and mutual fund trading is high. In Investment Banking, there is still a high level of activity in advisory services to the strategically important savings bank sector. There is also solid activity across other sectors. Norne acted as one of the lead managers in the IPO of Outlet Group Holding ASA in Q3 2026. Market activity is expected to remain strong throughout Q4.

The bank’s share of profits from Norne Securities AS was NOK 2 (2) million for the third quarter and NOK 9 (6) million year-to-date.

Balder Betaling (70.81 % holding, divided between 49.99 % of A shares and 100 % of B shares) is a company that exercises ownership of Vipps Holding AS on behalf of Sparebanken Norge and other savings banks. Sparebanken Norge is the biggest owner of Balder Betaling AS. Balder Betaling AS has a holding of 9.2 % in Vipps Holding AS, which owns 72.2 % of the shares in Vipps MobilePay AS and 100 % of Stø AS (formerly BankID BankAxept).

The bank’s share of profits from Balder Betaling amounted to NOK 0 (0) million for the quarter and NOK 33 (20) year-to-date. The result is entirely due to the revaluation of the shares in Vipps Holding AS.

The third quarter was marked by continued international uncertainty, dominated by the conflict between the United States and Iran. This conflict has constrained the supply of oil to global markets, resulting in elevated prices for both oil and other commodities. Throughout the third quarter, oil prices were volatile but increased from USD 73 to USD 97 per barrel. For the Norwegian economy, high oil prices translate into higher government revenues, as well as continued strong activity in the petroleum sector and related supplier industries. While a weaker global economy points towards lower interest rates, the effects of high oil prices through increased global inflation and sustained economic activity in Norway support the case for a higher policy rate in Norway.

In September, Norges Bank raised the policy rate for the second time this year, bringing it to 4.5%. At the same time, Norges Bank’s interest rate path indicated that rates are not expected to fall below current levels before 2028. This reflects the fact that inflation has proven significantly more persistent than Norges Bank had previously anticipated.

Economic activity in Norway remains strong, although there are signs of some easing in capacity pressures, and businesses report that it has become easier to recruit labour. At the same time, employment has continued to grow, and registered unemployment remains at a very low level of 2.0%. However, the prolonged period of high interest rates continues to weigh heavily on the real estate, construction, and civil engineering sectors, which stand out with low activity levels and weak prospects.

New home sales have remained at very low levels since 2023, contributing to a growing imbalance in the housing market. The existing home market has remained relatively resilient; however, as of the end of September, twelve-month house price growth was only 2.4% nationwide. House prices have increased most strongly in Western Norway and Northern Norway, while growth in Eastern Norway has been close to zero. In the Bank’s primary market areas, house price growth has been in the upper range, reaching 7.6% in Vestland, 7.4% in Møre og Romsdal, 6.7% in Rogaland, and 3.9% in Agder.

Continued high household savings rates and rising real disposable incomes indicate that households’ capacity to purchase homes is gradually increasing. Nevertheless, high interest rates and expectations of further rate increases continue to dampen investment appetite. In the short term, there is therefore little to suggest a significant recovery in residential construction activity. As interest rates eventually decline and confidence in both the national economy and households’ own financial situation improves, housing demand is expected to increase. According to Norges Bank, this is unlikely to occur before 2028, and this appears to be a reasonable timeline to expect.

The Board is satisfied with the bank’s performance, growth and development in the first nine months of 2026. Return on equity exceeds target and the financial strength is solid.

The Board has set a target for return on equity after tax of 13 %, as well as a relative target of being among the top three savings banks. Furthermore, the Board has established a target for Return on Equity, adjusted for merger effects, of 15 %, along with a relative ambition of being among the top two savings banks on this metric.

In addition, the Board has set a target for the cost/income ratio at Group level, excluding merger-related costs, of below 30 %. The target payout ratio is approximately 50 %. The target for CET1 ratio is 1.0 percentage points above the sum of all minimum and buffer requirements. This corresponds to 15.9 % based on current regulatory requirements.

Significant operating costs and capital synergies have been targeted for Sparebanken Norge. The Board has set these synergy targets at NOK 425 million and NOK 3.4 billion, respectively, and, in addition to the previously communicated targets, the merger with Oslofjord Sparebank is now also included. In addition to delivering on the bank’s operational targets, the clear ambition is to realise synergies according to plan. The operating cost synergies are expected to have full effect by the end of 2027, while the capital synergies are expected to be fully phased in by the end of 2028.

Integration costs are expected to be incurred in the period up to the first half of 2027, which will have a mitigating effect on the bank’s overall ROE. The bank’s ambition is to keep integration costs below NOK 380 million, and integration costs related to Oslofjord Sparebank are also included in the estimate. The market will be kept up to date with the potential synergies and integration costs as interim figures are presented.

The 2026 growth ambitions for the retail and corporate markets are 6 % and 8 % on loans and 5 % for deposits (both markets), including growth in new market areas. The target for the Bulder concept is NOK 86 billion at the end of 2026. The target for Brage Finans AS is above 12 % portfolio growth in 2026.

Sparebanken Norge must be capital-efficient, but at the same time be sufficiently capitalised to handle fluctuations in its framework conditions and portfolio. Allocations will be based on the bank’s dividend policy and adapted to the bank’s profit performance, growth ambitions and regulatory requirements. In the short term, Sparebanken Norge will calculate capital requirements linked to the bank’s lending portfolio partly in line with the IRB method and partly in line with the standard method. As of 31 March 2027, Sparebanken Norge will be required to meet the 1 percentage point buffer requirement for systemically important financial institutions. The buffer requirement results in a higher capital target for the bank, which must be considered in the capital planning.

Despite high market interest rates on funding, significant merger-related costs, and limited impact from merger synergies prior to 2027/2028, the Board considers that achieving the principal financial targets remains within reach in 2026. Norges Bank’s interest rate change, effective from December 2026, is expected overall to have a positive impact on the bank’s net interest margin.

The government-appointed savings bank committee, which submitted its report to the government last year, was established to investigate how to safeguard and strengthen equity certificates and the Norwegian savings bank model. However, the committee has proposed numerous legislative amendments that pose a threat to the unique savings bank model and could trigger significant structural changes, diminish banks’ local roots and increase bank concentration.

The proposed amendments would do away with many of the unique properties of savings banks and in practice facilitate a large-scale conversion of saving banks into limited liability banks. The proposals include eliminating the possibility of paying customer dividends, changing the distribution of loss between equity certificate capital and primary capital, and undermine community ownership through dilution arising from equity issuances below a price-to-book ratio of 1. Together with several other savings banks, Sparebanken Norge has submitted a consultation response to the committee’s proposals. The banks` view is that the committee’s proposal should be discarded in its entirety, while the Norwegian authorities engage in dialogue with the EU to secure the capital position of equity certificates, in line with the recommendation of the unified financial industry.