SpareBank 1 Sørøst-Norge's profit in second quarter of 2024 was NOK 350 million.
SpareBank 1 Sørøst-Norge maintains focus on "business as usual" and delivers on
targets as communicated to the market.

The result for the quarter is driven by increased net interest income and other
incomes. The reduction in profit is mainly due to the dividend received in the
first quarter, as well as a write-down of the equity stake in Kredinor and a
negative value change on fixed-rate derivatives.

Systematic efforts are paying off, and we can once again report growth in a
challenging market. High quality in the portfolio has resulted in revenue
recognition of NOK 5 million for the quarter.

Taking into account one-time cost of NOK 4.6 million this quarter and NOK 2.7
million in the previous quarter, the return on equity was 10,8 percent in the
quarter compared to 11,9 percent in the previous quarter. Revenues before
finance have improved with NOK 53 million compared to the previous quarter,
while total operating expenses have increased NOK 14 million compared to the
previous quarter. The increase in operating expenses is due to costs related to
the employee equity certificate savings program, merger costs, and costs
associated with increased activity at estate agency business.

Net interest income, including commission income from credit institutions, has
increased by 2,2 percent during the quarter (NOK 12 million). The net interest
margin is positively affected by the interest rate change from December 2023,
which took effect for personal customers from March 10, 2024, and thus had a
full effect from the second quarter. Additionally, the net interest margin is
affected by increased growth.

Other commission income has increased by NOK 7 million during the quarter,
mainly due to an increase in payment processing and securities
trading/management. Other income is up NOK 34 million, due to increased revenues
from estate agency business.

Net financial result is NOK 25 million, which is a decrease of NOK 91 million
from the previous quarter. Dividends from SpareBank 1 Boligkreditt and SpareBank
1 Næringskreditt were recognized in the previous quarter at NOK 57 million,
while dividends from SpareBank 1 Forvaltning and SpareBank 1 Markets, as well as
Eksportfinans income, were recognized in the second quarter at NOK 14 million.

In the second quarter, Kredinor became a subsidiary of SpareBank 1 Gruppen
because of the convention of subordinated loans to equity. The acquisition
analysis conducted in connection with the consolidation of Kredinor as a
subsidiary (68.64 percent) resulted in a further NOK 234 million write-down of
the stake. Of this, SpareBank 1 Sørøst-Norge's share amounted to NOK 14 million.
SpareBank 1 Sørøst-Norge's share amount of SpareBank 1 Gruppen's net profit
after tax for the second quarter was NOK 0.1 million, and BN Bank ASA was NOK 16
million. Other financial investments have a negative result of NOK -4 million.

Operating expenses is NOK 349 million in the quarter, which has increased by NOK
14 million from the previous quarter. The group has a financial goal for the
cost-to-income ratio to be below 40 percent. The cost-to-income ratio excluding
one-time costs for the second quarter is 43.0 percent for the group and 38.6
percent for the parent bank.

The loan growth increased this quarter and ended at 1.1 percent for the quarter,
which, when annualized, will result in an annual growth of 4.3 percent. Over the
last 12 months, loan growth has been 1.9 percent. The loan portfolio is
considered to have good quality, reflected in low loan losses. 99 percent of the
loan portfolio is classified in stages 1 and 2. Loss provisions for the quarter
amount to income of NOK 5 million, of which net realized losses amount to NOK 0
million in the quarter.

The common equity Tier 1 capital ratio for the group is calculated to be 19.2
percent (this calculation includes the share of the year-to-date profit in 2024
of 31 percent). 19.4 percent if incl. 50 percent of year-to date profit which is
the same level as the end of the year. The decrease is primarily explained by
the repurchase of mortgage loans from SpareBank 1 Boligkreditt, where the risk
weight differs from that of the parent bank.

On October 26, 2023, the Board of Directors announced a plan to merger with
SpareBank 1 SR-Bank ASA  and SpareBank 1 Sørøst-Norge. On December 5. 2023, the
merger plan was unanimously approved by the Supervisory Board of SpareBank 1
Sørøst-Norge. On April 17, the Norwegian Competition Authority announced that
they had no comments to the merger plan and that they concluded their review of
the application. On June 20, the Financial Supervisory Authority of Norway
granted the approvals necessary to implement the merger, with certain conditions
as stated in the stock exchange announcement on June 21, 2024. The Ministry of
Finance's decision on tax exemption for the merger was received on June 25.
Preparations for the merger between the banks are being carried out by a
dedicated project organization and are on schedule as of the end of the second
quarter. The planned completion date for the merger remains October 1, 2024.

Highlights from the second quarter of 2024 (figures in brackets concern the
second quarter of 2023)
o	Ordinary profit after tax of NOK 350 million (NOK 387 million)
o	EPS group NOK 1.48 (1.65)
o	Return on equity 10.7% (12.4%) adjusted for one-time effects the return on
equity was 10.8% (12.5%)
o	Net interest income, inclusive of mortgage credit institutions, of NOK 571
million (NOK 530 million) 
o	Net other commission and other income NOK 204 million (NOK 201 million)
o	Net income from financial assets NOK 25 million (NOK 52 million)
o	Results from SpareBank 1 Gruppen/SamSpar and BN Bank ASA of NOK -0,1 million
(NOK -1 million) and NOK 16 million (NOK 12 million), respectively
o	Losses on loans income NOK 5 million (income NOK 34 million) 
o	Lending and deposit growth in the past quarter was 1.1% (0.2%) and 4.6%
(3.5%), respectively.
o	Common Equity Tier 1 capital ratio 19.2% (19.4%)

Highlights from the first half of 2024 (figures in brackets concern the first
half of 2023)
o	Ordinary profit after tax of NOK 738 million (NOK 707 million)
o	EPS group NOK 3.12 (3.01)
o	Return on equity 11.5% (11.3%) adjusted for one-time effects the return on
equity was 11.6% (11.3%)
o	Net interest income, inclusive of mortgage credit institutions, of NOK 1.129
million (NOK 1.053 million) 
o	Net other commission and other income NOK 368 million (NOK 372 million)
o	Net income from financial assets NOK 141 million (NOK 85 million)
o	Results from SpareBank 1 Gruppen/SamSpar and BN Bank ASA of NOK 13 million
(NOK 12 million) and NOK 33 million (NOK 25 million), respectively
o	Losses on loans NOK 19 million (income NOK 34 million) 
o	Lending and deposit growth last year was 1.9% (-0.6%) and 0.9% (0.0%),
respectively.

The full quarterly report can be downloaded from the Bank's website
sparebank1sorost.no

Sandefjord, 08.08.2024

For further information: 

Per Halvorsen, CEO, Tel. +47 934 07 441 
Roar Snippen, CFO/IR, Tel. +47 976 10 360


This information must be disclosed pursuant to section 5-12 of the Securities
Trading Act.