SpareBank 1 Sør-Norge ASA raises its return on equity target from 13 to 14
percent. This follows a result of NOK 1.390 million after tax in the fourth
quarter of 2024.

The Board of SpareBank 1 Sør-Norge has decided to increase the long-term return
on equity target to 14 percent. The group aims to achieve this through cost and
capital efficiency, synergies from the merger, customer growth, and profitable
growth in loans and other income.

"We aim to be among the best banks in Norway, also measured by financial
results. Therefore, it is natural for us to raise the long-term return on equity
target. After the merger on October 1st, we see that SpareBank 1 Sør-Norge has
all the prerequisites for success. A higher target will help us generate more
momentum from the merger and become even more efficient" says CEO Inge
Reinertsen.

During the fourth quarter, SpareBank 1 Sør-Norge worked on synergies related to
the establishment of the group. As a result, the estimate for funding,
operational, and cost synergies has been increased from NOK 150 million to 300
million annually by 2027.

The introduction of new capital requirements in 2025 for IRBA banks has reduced
the previously anticipated capital synergies. The group is continuously working
on measures to increase capital efficiency and had a good margin to regulatory
capital requirements by the end of the fourth quarter.

The return on equity for 2024 was 13.4 percent after tax, and 14.0 percent
adjusted for goodwill related to the merger between SpareBank 1 SR-Bank and
SpareBank 1 Sørøst-Norge. The group's preliminary annual result for 2024 was
6,439 million NOK after tax. Based on this, the Board proposes a dividend of
8.50 NOK per share for the 2024 income year.

The outlook for the group and the region is positive. In SpareBank 1 Sør-Norge's
economic barometer from January, the majority of 1,050 business leaders in
Southern Norway expect growth in 2025. Optimism is highest among companies in
Rogaland, Vestland, and Greater Oslo.

"The group is positioned to succeed with its ambitions in a region where people
and businesses are optimistic about the year. Our customers have managed to
adapt to increased expenses in recent years, and now we see that expectations
for the future are more positive than they have been in a long time, despite
high global uncertainty. This may contribute to an upswing in the Norwegian
economy and continued low unemployment moving forward" says Inge Reinertsen.

In the fourth quarter, higher loan volumes contributed to an increase in net
interest income. Over the past twelve months, the group's gross loan growth was
7.4 percent, equivalent to 27.9 billion NOK. The personal market had a loan
growth of 7.3 percent, accounting for 18.0 billion NOK of the gross growth.
Growth in this division was significantly higher than the debt growth in
Norwegian households overall. Gross loan growth in Large Corporates over the
last twelve months was 5.2 percent, while it was 13.1 percent in the Corporate
and Agriculture market.

The group had solid underlying operations in the fourth quarter, with strong
contributions from net interest income, net commissions, and other income, as
well as results from associated companies. Lower income from financial
instruments and higher impairment costs reduced the overall result, which was
NOK 1.390 million after tax. Return on equity was 10.9 percent in the quarter,
11.7 percent adjusted for goodwill.

"I'm impressed by the efforts of all SpareBank 1 Sør-Norge employees throughout
2024. While merging two large financial groups, we put customers first and
managed to remain attractive in the market" says Inge Reinertsen.

The full quarterly report can be downloaded from the bank's website
sr-bank.no/ir.

Key figures Q4 2024

o Profit before tax: NOK 1.741 million (NOK 2.209 million)
o Profit after tax: NOK 1.390 million (NOK 1.804 million)
o Return on equity after tax: 10.9 percent (16.5 percent) 
o Return on equity, adjusted for goodwill after merger: 11.7 percent
o Earnings per share: NOK 3.48 (NOK 4.64)
o Net interest income: NOK 2.293 million (NOK 2.258 million)
o Net commission and other income: NOK 789 million (NOK 656 million)
o Net income from financial investments: NOK 125 million (NOK 484 million)
o Operating costs: NOK 1.376 million (NOK 1.321 million)
o Impairments provisions on loans and financial liabilities: NOK 90 million(NOK
-132 million)
(Q4 2023 in parentheses)

Key Figures 2024

o Profit before tax: NOK 7.957 million (NOK 7.387 million)
o Profit after tax: NOK 6.439 million (NOK 5.784 million)
o Return on equity after tax: 13.4 percent (13.5 percent)
o Return on equity, adjusted for goodwill after merger: 14.0 percent
o Earnings per share: NOK 16.34 (NOK 14,87)
o Net interest income: NOK 9.119 million (NOK 8.176 million
o Net commission and other income: NOK 2.941 million (NOK 2.786 million)
o Net income from financial investments: NOK 1.307 million (NOK 769 million)
o Operating costs: NOK 4.997 million (NOK 4.634 million)
o Impairments provisions on loans and financial liabilities: NOK 412 million
(NOK -289 million)
o Lending growth last 12 months: 7.4 percent (5.3 percent)
o Deposit growth last 12 months: -0.1 percent (0.5 percent)
o Common Equity Tier 1 ratio: 18.0 percent
o Capital ratio: 23.0 percent
(Pro forma 2023 in parentheses)

Stavanger, February 12, 2025

Contacts:

Inge Reinertsen, CEO, tel. +47 909 95 033
Roar Snippen, Acting CFO, tel. +47 976 10 360
Morten Forgaard, Finance Director, tel. +47 916 21 425
Øyvind Knoph Askeland, Communications Director, tel. +47 922 32 639

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