SpareBank 1 Østlandet (SPOL): Good growth in a challenging market

SpareBank 1 Østlandet's consolidated profit after tax for the second quarter of
2026 was NOK 853 (917) million. The return on equity was 13.3 (14.9) per cent. 

Net interest income including commissions from covered bond companies amounted
to NOK 1,159 million, representing a decline of 4.4 per cent compared with the
previous quarter. 

"Several factors contributed to the development, but it is clear that intense
market competition is impacting margins negatively. Competition benefits
customers and we will continue to fight for both new customers and to retain
existing customers", says Klara-Lise Aasen, Group CEO of SpareBank 1 Østlandet. 

Activity in the retail market was good in the second quarter, and the bank's
lending is growing particularly strongly in the Greater Oslo region. Lending
growth in the corporate market portfolio was also good in the second quarter,
despite many companies remaining cautious. Potential interest rate hikes from
Norges Bank may continue to affect investment appetite going forward.

The good development in commission income continued in the second quarter, with
growth of 8.3 per cent compared with last year (excluding commissions from
covered bond companies).

"For many years, the bank has seen good development in the insurance area, a
trend that has strengthened over the past year. We are now also seeing very good
development in customers' mutual fund savings through the bank. Savings have
increased in both assisted and self-service channels, driven by strong advisory
work and competitive product solutions through the SpareBank 1 Alliance", says
Aasen.

In the second quarter, there were also solid result contributions from our
jointly owned companies, including good profitability in the insurance company
Fremtind. This contributed to net income from financial assets and liabilities
of NOK 327 (248) million.

To preserve and strengthen competitiveness, improved cost efficiency is becoming
even more important. The Board of Directors of SpareBank 1 Østlandet has adopted
a long-term target of a cost ratio below 40 per cent for the group, excluding
merger-related costs. At the same time, our target is that group's costs in 2027
do not exceed costs in 2025, again excluding merger-related costs. So far in
2026, cost growth is 2.0 per cent, adjusted for certain non-recurring items.

"The bank has previously decided to reduce the number of full-time equivalents
by 70 from the end of 2025 to 2027. The combination of severance agreements in
the first half of the year and the hiring freeze is expected to produce visible
effects in the third and fourth quarters of the current year. At the same time,
we are continuously working on other cost-reducing measures. Technological
enhancements and investments in new expertise will continue to be important
going forward, while we will continuously assess various operational adjustments
to further strengthen efficiency", says Aasen.

In June, the bank successfully completed the technical merger with Totens
Sparebank, thereby completing the merger.
"The merger has progressed very well, and the bank has delivered well on all
targets in the ambition to carry out a merger that sets a benchmark. The project
also appears to be landing well within previously communicated cost estimates",
says the Group CEO.

The bank's loan loss provisions were NOK 77 million in the second quarter,
driven by realised losses. The quality of the lending portfolio remains solid.
Nevertheless, it cannot be ruled out that certain customers may experience
financial challenges, which the bank's loan loss provisions in recent years have
also reflected. In such situations, competent advice and a bank with strong
local knowledge are especially valuable to customers. The bank will provide good
solutions for its customers, including those experiencing difficult times.

"This year's customer relationship survey shows good figures. In the retail
market, the bank maintains its strong customer relationships, above the
SpareBank 1 Alliance overall and clearly higher than the industry average. In
the corporate market, customer relationships have improved compared with the
previous survey, also above the SpareBank 1 Alliance overall. The results show
that customers value the expertise, availability and relationships they
encounter with us", concludes Aasen.

2Q 2026 (Consolidated figures. Figures in brackets concern the corresponding
period in 2025)
o	Profit after tax: NOK 853 (917) million
o	Return on equity: 13.3 (14.9) per cent
o	Earnings per equity capital certificate: NOK 4.38 (4.71)
o	Net interest income: NOK 1,095 (1,159) million
o	Net commissions and other operating income: NOK 491 (519) million
o	Net income from financial assets and liabilities was NOK 327 (248) million.
o	Total operating expenses: NOK 783 (785) million
o	Net loan loss provisions were NOK 77 (1) million
o	Lending growth in the last quarter, including mortgages transferred to the
covered bond companies: 1.4 (1.4) per cent
o	Deposit growth in the last quarter: 4.1 (5.4) per cent
o	Common Equity Tier 1 capital ratio: 17.8 (18.3) per cent

Contact information:
Klara-Lise Aasen, Group CEO, Tel.: +47 476 35 583
Geir-Egil Bolstad, CFO, Tel.: +47 918 82 071 
Bjørn-Erik Orskaug, Head of Investor Relations, Tel.: +47 922 39 185


This information must be disclosed pursuant to section 5-12 of the Securities
Trading Act.
d of Investor Relations\, Tel.: +47 922 39 185\
\
\
This information must be disclosed pursuant to section 5-12 of the Securities\
Trading Act.\