SB1NO: A quarter marked by strong lending growth and solid cost control

In the second quarter of 2026, SpareBank 1 Sør-Norge ASA reported a profit
before tax of NOK 2,082 million.

Lending growth and a significant reduction in the Group's operating expenses
contributed to a profit before tax that was NOK 32 million higher than in the
second quarter of 2025. The result was also NOK 78 million higher than in the
first quarter of 2026.

The Group's total lending growth over the last twelve months was 5.3%, with
growth of 6.3% in the Retail Market and 4.1% in the Corporate Market.

Lending growth was particularly strong during the quarter, reaching 2.6%.

"Since the merger, we have made significant adjustments to become more efficient
and agile. The growth figures in the second quarter show that these changes are
delivering results and that we are gaining market share in strong competition
with other banks," says Group CEO Inge Reinertsen.

Despite global uncertainty and market volatility, there are clear signs of
improvement in the corporate segment. The Corporate Market loan portfolio
increased by 3.3% during the quarter.

"The lending growth in Corporate Market is a positive signal. It appears that
businesses are becoming somewhat less hesitant to make new investments after a
period in which uncertainty and volatility have contributed to lower activity,"
says Reinertsen.

In October 2024, SpareBank 1 Sør-Norge set a target to reduce staffing levels by
100 full-time equivalents (FTEs) by the end of 2026. Following organisational
changes introduced this spring, the target was increased by a further 50 FTEs.
By the end of the second quarter, 121 FTEs had been reduced.

Operating expenses amounted to NOK 1,298 million in the quarter, down from NOK
1,414 million. Compared with the second quarter of 2025, expenses were reduced
by NOK 116 million. Adjusted for merger-related costs and provisions related to
a court ruling in the legal case against Tietoevry Norway AS, expenses increased
by NOK 27 million.

The reduction in staffing levels and improved operational efficiency following
the merger have largely offset the impact of wage inflation and annual salary
settlements.

"We have good control of our costs, and our employees deserve credit for their
efforts and willingness to embrace change throughout 2026. Inflation and salary
increases remain significant cost drivers, but the organisation has demonstrated
strong discipline and an ability to realise synergies following the merger,"
says Inge Reinertsen.

Net interest income amounted to NOK 2,146 million in the second quarter,
compared with NOK 2,310 million in the same period last year. The decline was
caused by increased pressure on lending margins due to strong competition in the
market.

Net commission income and other income amounted to NOK 888 million in the second
quarter, up from NOK 858 million in the same period in 2025. The increase was
mainly driven by residential property sales in EiendomsMegler 1 Sør-Norge, which
continued to grow and delivered improved results compared with both the same
period last year and the previous quarter.


Key figures
o Pre-tax profit: NOK 2,082 million (NOK 2,050 million)
o Profit after tax: NOK 1,677 million (NOK 1,668 million)
o Return on equity: 12.7% (12.9%)
o Return on equity adjusted for goodwill from merger: 13.6% (14.4%)
o Earnings per share: NOK 4.33 (NOK 4.23)
o Net interest income: NOK 2,146 million (NOK 2,310 million)
o Net commission and other income: NOK 888 million (NOK 858 million)
o Net income from financial investments: NOK 400 million (NOK 373 million)
o Operating expenses: NOK 1,298 million (NOK 1,414 million)
o Cost-to-income ratio: 37.8% (39.9%)
o Impairment losses on loans and financial liabilities: NOK 54 million (NOK 76
million)
o Growth in loans included transfers to credit institutions over the last 12
months: 5.3%
o Growth in deposits over the last 12 months: 14.5%
o Common Equity Tier 1 (CET1) capital ratio: 17.51%
o Capital Adequacy Ratio: 21.73%
(Figures for Q2 2025 in brackets)


Stavanger, 13 August 2026


For further informasjon, please contact:
Inge Reinertsen, CEO, tel. +47 909 95 033
Eirik Børve Monsen, CFO, tel. +47 916 39 831
Morten Forgaard, IR, tel. +47 916 21 425
Øyvind Knoph Askeland, Director of Communications, tel. +47 922 32 639

This information is subject to the disclosure requirements pursuant to Section
5-12 of the Norwegian Securities Trading Act.
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This information is subject to the disclosure requirements pursuant to Section\
5-12 of the Norwegian Securities Trading Act.\