SpareBank 1 Sørøst-Norges profit in the first quarter of 2024 was NOK 388
million. This is NOK 87 million higher than the last quarter. The result for the
quarter is driven by stable net interest income, increased earnings from
financial assets, and lower costs compared to the previous quarter. Loan growth
remains modest but has picked up towards the end of the quarter. The quality of
the loan portfolio is considered good with low losses so far in 2024.

Taking into account one-time costs of NOK 3 million in the quarter and NOK 25
million in the previous quarter, the return on equity was 11.9 percent in the
quarter compared to 9.8 percent in the previous quarter. Net interest income is
at the same level as the previous quarter. Total operating expenses have
decreased compared to the previous quarter, mainly due to costs related to
bonuses and one-time/merger expenses in the fourth quarter of last year.
Excluding these items, costs are unchanged from the previous quarter

Net interest income including commission income from credit institutions has
decreased by 1 percent in the quarter (NOK 4 million), entirely due to the day
effect of 1 day less in the current quarter. The effect of the change in the
policy rate in December 2023 took effect for retail customers on March 10, 2024,
and will have full effect from the second quarter.

Other commission income has decreased by NOK 10 million in the quarter,
primarily due to a reduction in payment processing. Other income has increased
by NOK 5 million, driven by increased revenues in the accounting house during
the quarter. Revenue from real estate brokerage is at the same level as the
previous quarter.

Net financial result has improved by NOK 110 million from the previous quarter.
Dividends from SpareBank 1 Boligkreditt and SpareBank 1 Næringskreditt have been
recognized in the quarter, totaling NOK 57 million. Additionally, SpareBank 1
Gruppen and SamSpar contribute positively with NOK 14 million, and BN Bank ASA
with NOK 18 million. Other financial investments have a positive result of NOK
28 million.

Operating expenses amount to NOK 335 million kroner in the quarter, which is a
reduction of NOK 51 million from the previous quarter. Measured as a percentage
of revenue, the cost level has decreased to 40 percent compared to 52 percent in
the previous quarter. This reduction is attributed to one-time costs and bonus
provisions in the fourth quarter. Excluding these elements, costs remain
unchanged.

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 first quarter
is 40 percent for the group and 36 percent for the parent bank.

Total loan growth has been weak in the quarter and over the past 12 months. Over
the past 12 months, loan growth has been 1.0 percent. In the first quarter, loan
growth was 0.3 percent compared to 0.2 percent in the previous quarter. 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 NOK 24 million, of which net realized losses amount to
NOK 4 million in the quarter.

The common equity Tier 1 capital ratio for the group is calculated to be 18.9
percent (this calculation does not include the share of the year-to-date profit
in 2024), which is a decrease from 19.4 percent at 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 companies announced a plan for the merger of SpareBank
1 SR-Bank ASA and SpareBank 1 Sør-Norge, with the aim of implementation 1st
October 2024.
On April 17th, the group received approval from the Competition Authority to
merge with SpareBank 1 Sørøst-Norge. The work on merging with SpareBank 1
Sør-Norge on October 1st is proceeding as planned.

Highlights of the 1th quarter of 2024 (figures in brackets concern the 1th
quarter of 2023)

o	Ordinary profit after tax of NOK 388 million (NOK 320 million)
o	EPS group NOK 1.65 (1.36)
o	Return on equity 11.9% (10.4%)
o	Net interest income, inclusive of mortgage credit institutions, of NOK 558
million (NOK 523 million) 
o	Net other commission and other income NOK 163 million (NOK 190 million)
o	Net income from financial assets NOK 116 million (NOK 171 million)
            Profit contributions from SpareBank 1 Gruppen/SamSpar and BN Bank
ASA of NOK -14 million (NOK 13 million) and NOK 18 million (NOK 13 million),
respectively
o	Losses on loans NOK 24 million (income NOK 1 million) 
o	Lending and deposit growth in the past quarter was 0.3% (-0.7%) and -0.1%
(0.1%), respectively.
o	Common Equity Tier 1 capital ratio 18.9% (19.1%)


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

Sandefjord, 24.04.2024

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.

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