SpareBank 1 Østlandet (SPOL): 4Q 2025 and preliminary financial statements for 2025

SpareBank 1 Østlandet achieved a profit after tax of NOK 3 549 (3,356) million in 2025. The return on equity was 13.9 (15.8) percent. The result was driven by solid development in the core business, with strong net interest income, growth in commission income, and good contributions from owner interests.

EiendomsMegler 1 Østlandet and SpareBank 1 Finans Østlandet delivered strong contributions. The newly merged real estate operation contributed with record-high revenues and a solid operating result. SpareBank 1 Finans Østlandet had an exceptionally strong year and delivered its best result ever.

The strong results benefit owners, customers, and local communities through a record-high dividend. Based on the high solidity, the bank’s Board proposes a cash dividend of NOK 12.7 (10.3) per equity certificate. This corresponds to a payout ratio of 70 percent, the highest in the bank’s history as a listed bank and well above the targeted payout ratio of at least 50 percent. The Board also proposes to the Supervisory Board a customer dividend of NOK 582 (470) million and an allocation of NOK 51 (42) million to gifts. The bank places great emphasis on distributing significant funds to the local community. Customer dividends are a highly effective way of giving back to the society we are part of, together with grants and the activities of the savings bank foundations.

2025 has been an investment year in which we have laid the foundation for future growth. “During the spring, we opened a permanent branch office in Drammen. This has been a success, and the branch reached its lending targets for the year already early in the autumn. The focus on Private Banking has been strengthened both in the capital region and in Innlandet, and we are ready to take an increasing share of this important and growing market” says Group CEO Klara-Lise Aasen.

We have also completed our first year as a merged bank with Totens Sparebank. “The merger has exceeded expectations, and we are well on track to deliver on the promises in the merger plan. At the same time, the merger provides very strong business opportunities. To realize this potential, we are strengthening our presence in the Gjøvik region” Aasen says.

SpareBank 1 Østlandet’s group profit after tax for the fourth quarter of 2025 was NOK 889 million. The return on equity was 13.3 percent.

There was a slight decline in net interest income from the previous quarter, reflecting high competition in the market for both residential and corporate loans. Volume growth was also somewhat lower than in previous quarters. The bank places strong emphasis on ensuring that growth is profitable.

The sale of Youngstorget 5 contributed to a gain of NOK 163 million. In addition, strong growth in commission income continues. Excluding commissions from covered bond companies and the sale of Youngstorget 5, commission income in the quarter increased by over 10% compared with the same quarter the year before (pro forma). Contributions from insurance, funds, payment services, and real estate brokerage were particularly strong.

Loan loss provisions amounted to NOK 128 million in the fourth quarter. As in previous quarters, the high loan losses are primarily due to a small number of problem exposures in the construction industry, for which the bank has previously made provisions. The overall quality of the loan portfolio remains solid.

Operating costs in the fourth quarter of 2025 were NOK 842 million, partly influenced by merger-related expenses and other one-off costs, as well as underlying increases in IT costs. Total costs in 2025 were 8.3 percent higher than in 2024 (pro forma). In addition to bold customer initiatives, the investment year of 2025 also included merger costs, further strengthening of the bank’s efforts against financial crime, and increased investment in technology to free up capacity for customer advisers to engage in income-generating activities.

2026 will be a consolidation year in which we begin to reap the benefits of the investments. In light of the bank’s cost development over the past year and the established profitability targets, the Board emphasizes the importance of strong cost control. The Board has therefore adopted a target of a long-term cost ratio below 40 percent for the group, excluding merger costs. At the same time, the Board expects that the group’s costs in 2027 will not exceed the costs of 2025, again excluding merger costs.

In the continued work to reach the cost target, several measures will be implemented. Technological improvements will be fundamental to increased efficiency. In addition, various adjustments to operations are underway, with more to come. In the fourth quarter, the bank’s divisional structure was changed, resulting in fewer divisions and a reduction in the number of members of the group management team from eleven to eight. The bank has also adjusted the office structure and made changes to the customer service center, including consolidating operations from four to two locations.

At the end of 2025, the bank introduced a hiring freeze. Together with natural attrition, this will reduce the number of full-time equivalents. The bank aims to reduce staffing levels by 70 from today’s level, no later than during 2027. Severance packages will be considered.

“With our new strategy for 2026–2028 and a vision that reads “Together we develop Eastern Norway,” we have set a clear direction. We are making it explicit that our focus is on Eastern Norway as a region, and we are strengthening our efforts in Greater Oslo. We are, and have been, the local bank in Oslo since 1895, and we intend to continue this role. We will utilize the strengths of the financial group and our broad product offering even more, and we will operate more efficiently—for the benefit of employees, owners, customers, and local communities” concludes Group CEO Klara-Lise Aasen.

4Q 2025 (Consolidated figures. Figures in brackets concern the corresponding period in 2024) • Profit after tax: NOK 889 (701) million • Return on equity: 13.3 (11.5) per cent • Earnings per equity capital certificate: NOK 4.57 (3.71) • Net interest income: NOK 1,186 (1,179) million • Net commissions and other operating income: NOK 671 (442) million • Net income from financial assets and liabilities was NOK 188 (140) million. • Total operating expenses: NOK 842 (764) million • Net loan loss provisions were NOK 128 (122) million • Lending growth in the last quarter, including mortgages transferred to the covered bond companies: 0.1 (12.3) per cent • Deposit growth in the last quarter: -0.3 (12.4) per cent • Common Equity Tier 1 capital ratio: 17.6 (16.8) 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.