SB1NO: Solid quarter with strong lending growth and good cost control

SpareBank 1 Sør-Norge continued to deliver strong lending growth and good cost
control in the third quarter. Return on equity was 13.2% for the quarter, with a
profit before tax of NOK 2,177 million.

The Group's twelve-month lending growth was 6.7%, well above the credit growth
in Norwegian households and businesses. Strong digital services and products,
combined with skilled advisers who work closely with customers, explain the
positive development. Lending growth was 7.0% and 6.5% in the Retail Market and
Corporate Market segments, respectively.

"We have a clear ambition to become an even larger and stronger financial group
for our customers. We will achieve this by offering competitive terms, leading
digital services and products, and highly skilled advisers. It is encouraging to
see that our customers both value and appreciate this combination," says Inge
Reinertsen, CEO of SpareBank 1 Sør-Norge.

Compared with the second quarter, net interest income increased by 4.2% to NOK
2,237 million in the third quarter. The increase was primarily driven by strong
lending growth. In the same period in 2025, net interest income was NOK 2,328
million. The decline compared with last year was due to strong competition in
the market and pressure on interest margins. 

While SpareBank 1 Sør-Norge delivered good growth in both lending and deposits,
costs were significantly reduced. Compared with the third quarter of 2025,
SpareBank 1 Sør-Norge reduced costs by NOK 106 million. Operating expenses
amounted to NOK 1,208 million. 

The Group is also well on track to achieve its target of reducing staffing by
150 full-time equivalents by the end of 2026, because of the merger and
organisational changes. By the end of the third quarter, SpareBank 1 Sør-Norge
had reduced staffing by 132 full-time equivalents.

"I am pleased that we are growing while at the same time becoming more efficient
and maintaining tight cost control. This reflects the measures we have taken to
improve profitability. We will continue our work on efficiency improvements and
new technology initiatives, which will benefit our customers and help us take
further steps forward," says Reinertsen.

In the third quarter, SpareBank 1 Sør-Norge asked 1,050 businesses about their
expectations for the year ahead. The Business Sentiment Survey showed that they
expect the pace of growth to slow heading into 2027, and that businesses in the
southern part of Norway are heading for a soft landing in a period of global
uncertainty and volatility.

"Although our survey of business expectations shows that companies are
experiencing higher costs and pressure on profitability, we see that activity in
the housing market and across large parts of the business sector in the region
remains strong. We will continue to work closely with our customers to support
further growth and development," says Reinertsen.

Q3 2026 - Key figures

- Pre-tax profit: NOK 2 177 million (NOK 2 120 million)
- Profit after tax: NOK 1 757 million (NOK 1 697 million)
- Return on equity: 13.2% (13.0%)
- Return on equity adjusted for merger goodwill: 14.2% (14.5%)
- Earnings per share: NOK 4.5 (NOK 4.3)
- Net interest income: NOK 2 237 million (NOK 2 328 million)
- Net commission and other income: NOK 771 million (NOK 778 million)
- Net income on financial investments: NOK 462 million (NOK 443 million)
- Total operating expenses: NOK 1 208 million (NOK 1 314 million)
- Cost to income ratio: 34.8% (37.0%)
- Impairment losses on loans and financial commitments: NOK 85 million (NOK 115
million)
- Growth in loans, including transfers to credit institutions over the last 12
months: 6.7%
- Growth in deposits over the last 12 months: 11.6%
- Common equity tier 1 capital ratio (CET1): 17,70%
- Capital ratio: 21,79%
(Key figures for Q3 2025 in brackets)


Stavanger, 29 October 2026.


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