- The 2023 results show that we are a solid bank. We're able to increase the
distribution of customer dividends and public donations, which is likely to be
welcomed during a challenging time for both retail and corporate customers.

Says CEO Geir Bergskaug, presenting a result for the 4th quarter of NOK 543
million before taxes. The quarterly results contributes to an annual result
before taxes of NOK 2,227 million.

- The board has proposed customer dividends of NOK 417 million, a significant
increase from last year's NOK 226 million. Many customers are experiencing
challenging times. It is therefore gratifying to be able to share the surplus
when the bank is doing well.

It is also proposed to increase the allocation for public donations from last
year's NOK 149 million, to NOK 208 million in the year Sparebanken Sør
celebrates its 200th anniversary.

8,300 new investors

 In Q4 2023, the bank significantly increased its shareholder base through the
sale of equity certificates by its largest owner, the Sparebankstiftelsen
Sparebanken Sør. The sale had been planned since the spring of 2022, when the
bank increased its equity certificate capital ratio from 15 to 40 percent
through the conversion of primary capital into equity certificates capital.

- The offering of equity capital certificates in December was a tremendous
success. The shareholder base now consists of over 10,000 investors. We also
have several new large and solid shareholders at the top of the shareholder list
- in addition to Sparebankstiftelsen Sparebanken Sør. At the end of 2023, the
equity certificate price was NOK 144, and we can confidently state that
Sparebanken Sør now has significantly strengthened the equity capital
certificates, Bergskaug explains.

The sale was done through three separate offerings: one directed at
institutional investors, one towards retail investors, and one towards the
bank's employees.

- The offering provided us with a broad and solid shareholder base, with several
large and long-term investors, providing the bank with strengthened access to
capital and increased liquidity in the equity certificates. It was also
particularly pleasing to see the enormous interest in the retail offering, where
8,300 investors subscribed for a total of nearly NOK 2 billion, resulting in a
significant oversubscription.

Increased revenues provide increased customer dividends

The many interest rate increases by Norges Bank in 2022, continued through 2023.
This has resulted in increased net interest income for Norwegian banks. In total
for 2023, net interest income for Sparebanken Sør amounted to NOK 3,043 million,
increasing from NOK 2,368 million in 2022.

- Naturally, the level of interest rates affects banks' interest margin, and
when interest rates rise, net interest also increases. This resulted in strong
results in 2023, enabling an increased percentage for customer dividends and a
record-high allocation for the bank's gift fund, contributing to sustainable
growth and development in the region. 

The bank had a positive loan and deposit growth in 2023, and a deposit-to-loan
ratio of 54.3 percent.

Solid asset quality and low loan losses 

The bank's net loan losses amounted to NOK 49 million in 2023, lower than the
NOK 74 million the preceding year.

- The challenging macroeconomic environment is taking its toll on both on
corporates and households. In 2023, this resulted in an increase in model-based
loan loss provisions, as was the case in 2022. Net loan losses was NOK 49
million last year, compared to NOK 79 million in 2022. We're still seeing low
default rates in our loan portfolio, and we have not seen any large realised
losses, explains Bergskaug.

The temporary annual results show positive net financial income of NOK 3
million, while the fourth quarter results in isolation show negative net
financial income of NOK 13 million.

Total assets and dividend

The group's total assets were NOK 157 billion at the end of 2023, unchanged from
the previous year. The group's equity was NOK 16.8 billion, increasing from NOK
15.8 billion the year before. 

The board proposes an allocation of NOK 417 million to customer dividends, up
from NOK 226 million last year, NOK 208 million to public donations, up from NOK
149 million last year and a dividend of NOK 10.0 kroner per equity certificate,
which represents 61 percent of the result per equity certificate (group).

Highlights from 2023 (2022 in parentheses):

o	Profit before tax: NOK 2,227 million (NOK 1,615 million)
o	Return on equity: 11.3 percent (8.7 percent) 
o	Net interest income: NOK 3,043 million (NOK 2,368 million)
o	Net commission income: NOK 400 million (NOK 417 million)
o	Net profits financial instruments: NOK 3 million (NOK -82 million)
o	Income from associated companies and subsidiaries: NOK 99 million (NOK 125
million)
o	Operating expenses: NOK 1,297 million (NOK 1,145 million) 
o	Net losses on loans: NOK 49 million (NOK 74 million) 
o	Growth in lending: 3.0 percent
o	Growth in deposits: 5.6 percent

Highlights from Q4 2023 (Q4 2022 in parentheses):

o	Profit before tax: NOK 543 million (NOK 566 million)
o	Return on equity: 10.5 percent (12.8 percent) 
o	Net interest income: NOK 815 million (NOK 683 million)
o	Net commission income: NOK 105 million (NOK 115 million)
o	Net profits financial instruments: NOK -13 million (NOK 46 million)
o	Income from associated companies and subsidiaries: NOK 33 million (NOK 46
million)
o	Operating expenses: NOK 370 million (NOK 311 million) 
o	Net losses on loans: NOK 31 million (NOK 15 million) 

The entire quarterly report can be found at
https://www.sor.no/felles/om-sparebanken-sor/about/investor-relations/equity-cer
tificate/

Contact persons: 
Geir Bergskaug, CEO, phone: +47 901 27 206
Steinar Vigsnes, CFO, tel.: +47 906 13 135 

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