Sparebanken Vest

I would like to welcome you all to the Capital Market Day for Sparbank Invest. It's nice to see that there are so many here in the room, and I also hope that there are many who follow us on the web through this presentation and through this day. We have created a program, and the point is that we will present our second quarter talks. But we will also talk about important areas for the bank, which are in rapid development and have a significant impact on our business. Sparmark Invest has celebrated 200 years this year. We are Norway's next largest bank, and we are 200 years old, but 200 years young. Sparbankmodell lives in the best of the best, and Siren Sønderland will tell us more about the strengths of Sparbankmodell in a new time. Sustainability is extremely important. It is just to look out the window and see how it affects us, the new world phenomena. It is of course high on the agenda in Sparbank Invest. It is very nice to see that we received a brilliant third-party assessment from Moody's in the second quarter, and we have also updated our green framework in the quarter. Linn Gjesdal will tell us more about what we are doing at Bærekraft Bank today. The mobile bank concept, Buldar, goes as it pleases. The growth is remarkable. We reached our annual goal in the middle of July. Simen Eilersen is going to tell us what the background to success is. Earlier we have been focusing on culture and leadership development, and that is one of our most important competitors. That is why I am very happy today that we can present two completely new leaders for both sustainability and bulls in the bank. This is a result of the work we have done in the bank in recent years on competence, leader development and culture. We will come back to this at lunchtime. Before lunch, we will go into the quarterly presentation. In the first quarter, Jan-Erik, we delivered 17% of our income. You said that you weren't satisfied. The question for many is, what makes a man happy? We might get to answer that today. Jan-Erik, the stage is yours, the word is yours.

Thank you very much, Frank. I think I will also allow myself to warmly welcome you to Capital Market Day. Very nice to see so many here, and very nice to be able to welcome you to Capital Market Day, where we are very pleased, Frank. I think I can allow myself to say that. We are very pleased with the quarter we have put behind us, and in total what we have delivered in the first six months. And of course, we will get back to that in this presentation. If you have questions along the way that you want us to address and answer, which are not covered in the presentation, please send questions to this e-mail address, and we will, within the time frame we have, try to answer as well as possible after this interview that we now take initially, and then there will be a Q&A afterwards as usual. If I go straight to the numbers, the first half of the year, we have a net profit of 16.1. We think we have a very good track record for delivering on or over our target, which is now 13%, earlier 12% net profit. And as you know, we also have a relative target. We want to be among the two best in net profit in the Norwegian banking universe. It's because we think it gives us access to capital when we need it, it gives us space to act, and it gives us reason to think long-term, as we have done around the Bulda investment, where we experience that the capital market has strong confidence in that journey and what we have done around Bulda. So we will come back to, a little in my presentation, when it comes to the financial, and then Simen will come back to the concept and how we have worked with digital conversion and growth in the last period, where we have succeeded very well. 16-1 is a good one-capital throw. It's well over our goal, which is 13. But we have two conditions that drag a little down in this quarter, which makes it possible that the underlying trend is still a little better than what we see in 16-1. We have an effect on Buldar with a low level of financing, which means that we get financing costs on the Buldar concept before we can effectuate new interest rates to the customer. This means that our Buldar concept actually drags down our own capital issuance by 1% in the first half year. We have a lot of peace because we know that we are building substance, we are building value, and that this will change when the interest rate level stabilizes again. But it's okay for those of you who follow the bank's news to know that there is a delay effect, which means that just now it costs a little more to build that concept than it does in a stable interest rate market. We have a negative cash flow on bull there for 15 million in the first half year, and in addition to that, no interest on its own capital, a draw. But we are pretty sure that we are building substance and value here, which is very interesting from a long-term perspective, and it will eventually come to that. But a slightly atypical effect on bulls in the first half of the year. Then the Board of Directors in this part of the report, that we will evaluate the capital situation this autumn and evaluate an extraordinary exchange rate. We are quite far above our capital target, which is 1675, with a core capital gain of 18.6, as you can see in this part of the report, so we are quite far above our buffer requirements, including the magic at the top of that, which is the P2G. So in the course of the autumn, the board will judge whether or not an installation for the General Assembly is an extraordinary exchange, because we see that we have a slightly larger backpack on the capital side than what may be natural in relation to our own goals, and natural in relation to the benchmark. I will also come back to this at a separate point in my presentation afterwards. If we correct these two things where we have a clear roadmap related to doing something with it, then the underlying drift is very good. If we had set our capital goal and Bulldar would have delivered on the same capital transfer as the bank, then we would have had a underlying capital transfer of 18,500, which we think is very strong. But if you look at the one-capital issuance from 2012 to the first quarter of 2023, we also deliver on our relative goal. These are the largest Norwegian banks, including DNB. And as you can see, we have delivered a very good one-capital issuance during this period. We think we have delivered this also with moderate risk, so we think that the risk-adjusted issuance at Sparbank Invest is among the best compared to those we compare ourselves with. Why have we done this? We have done this because we have had a clear strategy, a clear value proposition for the capital market over time. We have said that we will be a bank with low complexity. We are very aware of what we do with new investments, new business areas. We do not have a fintech fund. We have very little self-trading on interest and currency. We have a portfolio of shares under development. We make very tough priorities on what we should use capital on and what we have the conditions to do best. So we are far ahead in the digital shift. We have built up an ecosystem internally, which we are very proud of, and which makes us stand at the forefront of digital services. I think we are very important in terms of having an efficient operation, but not least having customer attractiveness, which is good. You will see that this quarter we are at a cost income of 30. We are very proud of that. Maybe we are below 30 next quarter. It will be exciting to see. We have a conservative loan book. We have a loss level of 29 million in this quarter. It is low. We have a decline in loss-added and misplaced engagement. So we think we prove that we are conservative in our loan policy. And then we have, as Frank said initially, Invested significantly in a performance culture over time, which we see gives effect, whether it is new leadership talents who get new opportunities in the bank, or a strong drive to be among the best Norwegian banks. In the first half of the year, we have 70-80% internal recruitment in free leadership positions, and we are very proud of that. It is sure to build a strong culture over time and a little extra motivation. When you see that opportunities are emerging, there is a high probability that you will get the opportunity if you want, and you have invested well in your own development. In the next presentation, I will share it in four. I will talk a little about our key figures first, a little about the banking industry, then I will get a little into Bull there. We see that Bull is about to become a significant size, so therefore we will guide a little more clearly this time, both on the one-capital transfer in the concept, but also a little about what growth goals we have set ourselves. Coming back to point three, capitalization, where we see we are, and why we think it's a good starting point to evaluate an extraordinary exchange in the fall, and then a bit about credit risk in the end. Our net investment in this quarter is 15.1. In the first quarter it was 17. In comparison with the first quarter or the second quarter last year, we are 3% up from 12.1 to 15.1 in this quarter. We have a result per net investment of 2.84 kroner in the quarter. As I said, a good capital coverage of 18.6, pure core. And we have a recorded value per net investment now of 76.60 kroner. The foreign growth is good. The foreign growth here on a 12-month basis is 13.5. If we correct for bulls, there is also the underlying foreign growth in the pension market in the bank above the quota growth. And for bulls, we have a foreign growth for the pension market at 5.5%. A little lower on the operating market, it will swing a little from quarter to quarter, but we also have an underlying good exit growth on the operating market, and the 12-month growth is now at 9.4% on the operating market in the savings bank. Inspection growth is important. Inspection is important. The magic is back again. We have a good 12-month growth on Inspection, 8.1. If we look at the bull on the stock market, we see 5.2. And we have enjoyed very well in the business market, very satisfied with the work that is done on Inspection, especially on the business market, where we have a 12-month growth of 27.6, which is important in terms of delivering a good one-capital return. No doubt that when the margin is back on the income side, we see that it also gives its effect on the net income, in addition to growth, of course, which means that our net income is up, also in this quarter, 1 billion 232 million, as you see there in the second quarter, up from 1 billion 175 million in the first quarter, and we see that the net income in percentage of government capital is flat from the first quarter to the second quarter at 1%. 0.73 in this slide. We are confident that where we want to be competitive in terms of price, where we want to be among the best in one-capital-throwing, we need to have control over the costs. We have historically had a very good track record, where we have had flat cost development from 2012 to 2021. And we see that it is difficult to get further with the price and wage growth we have right now. But we are quite confident that we, after a small leap in the bank's costs, will be able to land this year at between 6 and 7 percent, that is, around the price and interest rate growth. So we work quite hard to get our costs down for the year towards price and interest rate growth. Some of the costs in IT, for example, which has a fairly steep development right now, means that we have to pick up some of that in other areas. But I am very proud that we are best in class when it comes to cost income, and have a plan to work very hard to continue that. And maybe for the first time we will see numbers below 30 in the coming quarters in this area. It is first and foremost about the fact that the income may be on the way up, but also that it is an issue to absorb what happens when it comes to cost growth, by the way, in a good way. The results from Braga and Frende, and some of you can see here, Frende is characterized by slightly higher injuries in the first two quarters. With what has happened in the last few days, there is a reason to assume that it can quickly become a challenge in the third quarter as well. But when we budget for the rest of the year, it will still be like this, that we will be on a 17% capital reduction. We hope and believe that we will manage, but the damage situation will determine this for us, as well as for the other damage companies. And if we look at Brage Finance, I would like to bring them especially forward in this quarter. It is incredibly fun to see that we, in spite of the increased financing costs, deliver 13.5 in the quarter in net profit and loss. It is very strongly delivered. elevates it with a very good growth, as you can see here. We have a growth in the last 12 months of 22%. No doubt that Brage has become a very good company, taking advantage of the opportunities that are in the market, partly worrying some of our competitors, employing good people among the competitors, and we see it again in a profitable growth. I am very proud of what this group has achieved, and the lift it has achieved in terms of results over time, and the opportunities it has taken, and not least, Bragi is about to become a national company to count on. The Nordic countries have a zero-result in this quarter. The volatile capital market affects the results there, but I am also confident that we will be able to get a lift in the second half of the year in the Nordic countries. Sparing and placement is important for us in relation to other income. There we have three quarters now with net and new drawing on the positive side. After three quarters where our customers were more disappointing as you can see. Nice and running growth and pretty sure that we will be able to increase the income over time from this area. If we sum up the development from the corresponding quarter last year to the corresponding second quarter this year, you can see that the net income is especially the one lifting the results. The provision revenues are relatively low. The associated business is slightly lower. This is a special case of damage in In finance, we have 20 million in minus due to the spread effect on our liquidity portfolio and the adjustment of fixed interest on our portfolio. Even though we have minus 20, it is an improvement compared to last year, because we had minus 68 in the same quarter. As you know, we have little own trading, so this is quick adjustments that move a little quarterly related to our business primarily. Our costs are up 28 million, 13 million is linked to a one-time cost, one-time cost linked to outsourcing of our mini-banks, so we have 4 million on our 200-year mark. As a result, the cost growth is quarter by quarter at an average of 4%. Our losses are slightly higher, from 19 million last year to 29 million this year. This means that we go from a result of 567 million to 787 million in Q2 this year. Summing up then, a one-capital loss of 15.1 for the quarter, 16.1 for the first half year, good net income, good control of the operating costs we feel we have. We will get a growth in operating costs this year, but it will be around, as I said, The price and wage growth is still at a moderate level. We are pleased with the development of the risk in our portfolio. 29 million is still at a very low level. And as I said, a good result of over 1 billion in the quarter before the tax. That was a little about our key words. Then I will come in on Bulder, who has had a formidable growth. Some of you know that we reached our goal, the year goal, already this summer. We thought we set a very hard goal of a growth of 36 billion in revenue at the beginning of this year. We reached that this summer, greatly proud of what we have achieved, largely with the same traffic, but which we then used in a much better way than we have done before in relation to digital conversion, which Simen comes back to. Still a very low risk in the bulldog segment. The average LTV is 41%. We see that we with limited marketing and smart use of press releases, contact with the media, have received very good unpaid communication, i.e. redacted interviews, which makes the knowledge of the bulldog nationally impressively good. We have almost 60,000 customers, and we have also slowly but surely lifted the insurance coverage to 16%, which is good for a pure foreign portfolio, so this is far on the way to PT. The growth has been in stages, somewhat in line with external things that have happened in the market, but the long trend is indisputable. We have succeeded in being Norway's first, and perhaps the world's first, mobile-only full-fledged bank offer, and I am greatly proud of what we have seen the beginning of here. And then we do the running and actually the evaluation and positioning of buildings. I think I have to say that in relation to the evaluations we did earlier with Nidskåp from Kantar, which was the positioning tool, and we found out that we should dare to invest in this new investment. was to try to position themselves in the red rectangle here, together with S-Banken, and try to be an actor who challenges a relatively established Norwegian banking entity. And if we look at the last Cantare study, which I won't go into too much detail on here, there is no doubt that Bulder settled in the red square, the red triangle, and that we may appear even more clearly in that position, and may own that position more than we could have hoped for when we established Bulder in his time. And as we see the banking landscape now, Bulder is quite alone in terms of being able to perhaps revolutionize the experience of having a home loan, and not least being someone who is a tough challenger for the more established banks. And what has happened with S-Banken is also with a broad reason for an even clearer position for a new bank challenger, and a new concept, all of Bulder. So that means that we have a period now where we have a unique reason to build a top line that we think will be profitable, and will win the bank's own capital release in not too long. And here we have divided two things in this slide. We have divided our target numbers forward when it comes to top line growth, i.e. loans in the bull segment. We are at 38 billion now. We have an ambition to end at 40 billion by the beginning of the year. It is a revised target, as you know it was 36 earlier. It doesn't make any sense to hold on to 36 now, so therefore the new goal is 2040. Earlier we talked about 60 billion, we still do. We believe it is possible to achieve before the beginning of 2024. And then at the beginning of 2026, we hope and believe that we have built a bank and a bank concept that is as big as the one the S-bank was when the S-bank was bought by DNB, which was 83-84 billion kroner. What we see for us to get to this top line growth is, of course, a reasonably sharp pricing still. We see for us that we are in the first half of the year about minus 2% in one capital reduction on the concept. 15 million in minus in the first half of the year. When the interest market stabilizes, we get a little more investment coverage, we get a little more scale on this, we get a little more other income, then we are quite confident that we will move up towards the one-capital target for the bank. And then we see, at least as the world looks now, that by the end of 2025 we will prioritize a little more margin, on the cost of growth, and that we will move into a terrain that is about being inclusive on a marginal basis, on the bank's one-capital transfer. The only thing that is certain is that it will not be exactly like that. That's how the journey with Bulda has been, but we think that it still has value to set goals and work hard towards those goals. We have reached our goals so far, and we will work hard to achieve These goals, this growth journey and so on. Then we are quite sure that we have built something of significant value, which over time will also be to the pleasure of the bank's one-capital issuance and the bank's one-capital owner. What does this mean for Roen, explicitly for the bank? Well, it means that during this period, we will go from an expansion of one-capital deposits to a concept that can quickly have an inflation effect of up to 1%. from 2025 onwards. So that's what we're working on after PT. And then there will be opportunities in the market, challenging markets, that could affect this along the way, but nevertheless, this is what we're working hard towards, and this is the mandate for Siemens, who will talk about the Capital Market Day later. Extremely exciting development. We are quite confident that this is also very exciting for the owners of the bank, and really proud that we are able to build a new fintech company with such a large size, while we are able to deliver well on one-capital transfer for the bank's shareholders. whether it is about new investments in banks or other places, Tibber or whatever it is. It is demanding to build top line in new concepts, but I think we can do this with a very good balance towards the bank's own capital allocation. And then the question is, will we be able to scale this up to these levels without having a significant increase in costs? Yes, we are quite confident that we will be able to break down costs per billion abroad. Quite significant in the future. It is about 2.5 million in operating costs per billion abroad now, and we are quite certain that we will be able to scale this. In the future, the only area we may need a few reasons for is advice and support. The other areas we are pretty sure we have the size and the cost base needed to get to this journey. That was a little bit about Bull there. A little bit about guiding on investment in the concept, what it means for the bank's equity investment, and not least what we see in the future as top line growth and loans in the concept in the future. A little bit about capitalization. I said that we are well above our minimum requirements at 15.5. We are also well above our minimum requirements with the P2G at the top, which is 16.75. And if you look at where we are in relation to banks, it is natural to compare. capital demand and capital demand margin in the striped line here, and then we have put together where the different banks that we compare ourselves with are per Q1. And then you will see that we, and perhaps DNB, which has this return on purchase program, are distinguished by having a significant headroom between capital requirements goals and reported core capital. This means that the board has decided that we will evaluate over the course of a few months, what is the basis for an external division, so that we come more in parity with our own goals and not least what is the benchmark when it comes to pure core capital. And just to illustrate this further, you can see that we are at 18.6 at the beginning of this quarter. The requirement is 15.5. We have a solidity measure including the P2G at 16.75. You know that there is a new SREP roundtable with a new summary of the Pillar 2 requirement. It will reduce the requirements for the different banks. For our part, with today's Pillar 2 requirement of 1.5%, it will reduce our requirement for pure core capital by around 65 basis points. We adjust for that. Then we have a demand with a buffer at the top at 16.1, and with a capital cover at 18.6 at the beginning of the quarter, we have a margin at the top of what will be our own capital demand at 2.5%, and that is quite high. We are very concerned about being capital efficient, delivering a good one-capital transfer, and then it is unnatural for us to be very atypical when it comes to The difference between our own solidity goals and the core capital coverage that we have, Pt. And then there are some moments that are down there, which of course are the basis for the board's assessment, but we hope that we will be able to assess this in the coming time, and it is natural that it will be addressed at the autumn general assembly, where the board will come to the conclusion that it is natural to adjust the capital coverage to something. That was a little about the capital situation for the bank. Last point, a little about the credit risk, where we are right now. We are concerned about being a bank with a moderate credit risk, therefore we have also been careful when it comes to geographical expansion outside our core area. We believe that we primarily should borrow money in the market area we know well and the businesses we know well, and we have been very successful with that. Here you can see our loss history. In percentage of loans since 2016 compared to the largest Norwegian savings banks and DNB, which is natural to compare with, you can see that we have managed to deliver lower loss levels over time than average of our competitors. We work hard with this and will continue to do so in the future. And the description for that, I think we are a conservative loan book dominated by housing loans. You can see here that 76% of our loans are for the personal market, 24% for the business market. And if we divide the bills and the personal market x-bills, you can see that 62% is our personal market x-bills. And then in our foreign book, 14% bills are loans with 41% LTV, as I showed you. We have a good diversification on the business market. The growth we have is well diversified. And when it comes to geography, as Vitte was talking about, you see that primarily we lend money to these three counties that we know well and that we have comparative expertise in relation to. What is in Osloviken is 66% bulldozer loan, and then we have a number of moved customers who follow us as a bank. This means that we have a good control over the risk of crisis outside these three counties, which is relatively moderate, especially if we take out Bønder, which is well-known nationally, with a low LTV. I don't think we'll be able to present this in as many quarters as we can in the future, but it's a pleasure to be able to present that there is still a decline in miscellaneous expenses. This is perhaps a bit counterintuitive, given that the interest rate is rising. It will hurt at some point. The whole point of raising interest rates is to reduce the speed and temperatures in the economy. But I am very pleased that we still see a decline in maintenance, both within 90 days and over 90 days, as you can see here on the housing loan, to the left. And the tax exemptions are also decreasing in the quarter and at a very moderate level. So we think that the fall in our housing loan portfolio is more moderate than if we had had a different geographical layout on our loans. There is no doubt that the price growth has been significantly higher in Oslo and Viken than what we have seen in Bergen and Stavanger, which are the two largest cities in our market area. We think that quickly can also be a strength as the price development would turn. The greater the increase, the greater the fall, we also think. We think we are well positioned when it comes to relatively low losses compared to many banks. We see that 96% of our loans are within 70% of LTV, which means that there will be quite large corrections in the housing market before we have a bad security coverage. We also have an advantageous development in the quarter when it comes to miscellaneous and lost out loans. You can see that we on the business market have a downturn from 11.62 to 11.35. And within the framework of what we have the opportunity to, we have been concerned about having a conservative retirement practice. So, especially within the business market, you can see that we have a percentage of misconduct and fraudulent engagement of 73%. This means that we try to be one step ahead when it comes to taking trouble and writing it down, and not pushing it. And we have done that over time, and if you look at The loss level we have had through the pandemic, you can see that we have taken quite large deposits, but little return after the pandemic, which means that we have a very robust deposit level as a bank, and it varies a little what the models are, deposits and what the individual deposits are, as you can see in the gray and blue column. This quarter, we have 42 million in individual deposits, and we have Return on model at 13, which gives a net loss rate of 29 in this quarter, which is still very low. That was a little about our loan book, a little about the credit risk. Finally, I would like to get a little into what Siren will touch on in his presentation. We are 200 years old. We are very proud to be a modern 200-year-old who performs well. We have had a significant mark in the first two quarters of this year that we are Norway's next oldest bank. We are 200 years old. I think this slide with our results for 2022, and the surplus available in 2022, is a fantastic way to illustrate the savings bank model. We have, after this down payment we made a couple of years ago, a very nice share price of 40.6 after the 1s came in, which was originally 40 after the down payment. And then we have a society ownership of 59.4%. We believe that this co-operative ownership is also of great value for the single-capital owners. It is a class of owners who use a large part of their surplus to build goodwill, and not least customer loyalty, for the joy of the entire bank. And as you saw last year, with 5.50 kroner in exchange for 2022, we divided on the other side, to have the same degree of allocation, 301 million in gift and 580 million in customer exchange. a fantastic reason to give back to our customers and the region in a time when things are going well with the bank. We are quite certain that this will build a footprint that is unique and valuable for all interest groups of the bank. We had a record customer sales last year, four years in a row. We see that this is the end of the line. Customers take it into consideration when they think about the bank, and we see that we have a favorable impact on the customer satisfaction of the bank. We do what we can, and that's what we've been doing for the first six months, to highlight this in a good way, also in a digital way, so that the customer gets to know that we are not the same as other banks. And then we have a very unique footprint when it comes to gifts in 2023. We spent 301 million, as you saw, for the results of 2022. If we had spent some extra money earlier this year, for the anniversary of 2023, we would have divided 451 million kroner in gifts to these three counties in the course of 2023. It builds position, it builds goodwill, and it builds customer loyalty. It's a good starting point for building a strong, attractive bank with strong regional anchorage in the coming years. And we are proud, and we see that this also gives great pride internally, whether it is Barnas Superfestival in Ålesund, or many of the other initiatives we do. Siren will come more into this later, but I would like to end with an initiative that I think is incredibly beautiful, a fantastic way to contribute God! No!

Go for it. Who won series gold in 2022 with a score of 0.92? Solbakken. Who scored more than one goal per match and became cup champion in 2022? It has to be Bård Finne.

It has to be Ronaldo.

Who has said the following? It sounds like Zlatan. Lionel Messi.

Martin Ødegård.

Who scores here?

I think it's Håland who consciously scores right up in the cross. I... Martin Ødegård.

The answer to all questions is one and the same player.

No, I understand that it's Bommar. It's a board game. What?

The answer is... They own daughters.

Oh my God! No! No! Oh my God!

I thought you were Roland.

It was her.

Can you see something?

I can't. I don't know what to do.

It may be wrong, but it's not wrong to invest in Sparabanken Vest. I will end with this slide, which is our value proposition for the capital market. We believe that what I just showed a little bit of, namely customer exchange and high gift balance, is of great value for all interest groups in the bank. We are on the front line in digital development, which makes us cost-effective. We think we should be on the front line there as well. We are a low-complexity bank that is focused on being disciplined in not doing more than what we can do well. We have high ambitions for sustainability, which we will get back to. We have a strong performance culture, which I think is the main driver behind the good results we have had. We have many employees who are swing owners in the bank, which means that they are curious when we put forward the quarterly figures. They are focused on performing. And we are a bank with a level of ambition to deliver 13 or more and be among the two best, and we are confident that we will be able to do that further, as we have done in the last ten years. So with that, I would like Brede and Frank to come forward, and we will take questions and answers as the last part of this first round of the Capital Market Day.

Thank you, Jan-Erik. We have received some questions online, but we open first for questions from the audience, of course. So if anyone has any questions, please raise them. Håkon.

I'm Aakon Astrup from DMB Markets. Let's start with the possibility of an extraordinary exchange for the fall. You now have a buffer of 2.5, if we include this reduction in pillar 2 guidance. How big is it, or what does the administration think the buffer should be?

Do you want to answer that?

We have a solidity measure that is similar to the P2G and the N25. That is the soft requirement. We will make a assessment this autumn to see how we expect the development to be on the result side. And how the various variables that Erik mentioned will affect the capital side in the future. So we haven't been more specific about that in the past, and I don't think we'll be more specific about that now either. But I understand the question well.

It's your job to make estimates, isn't it?

We expect, Håkon, that you and several others will make good estimates on that, so maybe we'll get good input in this context.

Is there any direct link to an extraordinary exchange and higher customer exchange? Or how will that affect customer exchange, this extraordinary exchange?

I think it's right to say that we have been concerned about, this will be the board's privilege to influence, the distribution as it becomes an extraordinary exchange, and through that also gifts and exchanges. We are very committed to not doing anything with our ownership, so that means that you get a gift exchange, possibly a customer exchange. We have tried to incorporate this to customer exchange as a predictable thing in the market, so given that there will be an exchange, an external exchange in the fall, it is natural to see that it first and foremost becomes a gift, and then one can think that we have a slightly larger capacity to weigh it a little differently, so maybe we can weigh up customer exchange again when we get to spring, then you have already made a significant gift distribution. But this is a bit too early to mean something very much, but starting to divide customer exchange twice a year, I think it would be a high threshold to think about, but it may mean that the distribution between gifts and customer exchange next year can be a little different.

Thank you. Last from me, just on the interest rate competition. There is a strong increase in interest rates. How do you see the competition there? And have you done anything with what you previously paid 0% interest on? Think about the transaction accounts. Is it still 0%?

Yes, it's still 0% in terms of what we see as the market as a whole. We still need to evaluate. Everyone expects that there might be two more interest rates this year. We'll see how big they have to be. Then we'll evaluate based on the market situation with those two adjustments, if we're going to do anything with that type of product. But based on the way the market is today, we've found reasons to operate at that level.

The competition will depend on the placement account and the type of interest account. At the same time, it is not unnatural that the use account and the use account, for example, are a bit back on the way up, because it was not like that either, that there was no rest on the last interest decreases, right? Before you saw the bottom of the interest market, we were at the bottom of the use account and the use account, and then it is not unnatural that they are a bit back on the first interest changes on the way up either. So that's maybe what we see.

Thank you.

Thank you, Håkon. Any other questions? From the audience? Back to you.

The last figure was 3.7% of the credit growth for households. How does the bank manage in several years when the credit growth is lower than it has been in the last ten years?

That's a very good point. 3.7. If you take our growth on PMX bulls, it's at 5.5. That means we have a good market position, we manage to take a good growth. This is a very important point. I'm not worried about the business world. I think our value proposition for the business world will become even stronger in more peaceful times. Then the value is even greater by having a credit committee, an advisor that is close. that understands your company better than a credit committee in a completely different way. But in the personal market, I think this will be demanding, and we believe that what we have of value proposals with customer exchange, with strong office networks, with customer advisors, that we have to work even harder to take a good growth forward when the credit growth goes down. And that's a challenge, right? If the price and wage growth is between 6 and 7, while the foreign growth is 3.7, we will over time for cost challenges. So to be able to maintain a growth, at least at the level of price and wage growth, is what we are very much interested in. Also ex-bulders. We will discuss this later this week.

Any more questions? Over here. Microphone. Hello.

Thank you for a very nice invitation and a nice interview. Silje Jemdahl, Fremskrittspartiet. I have to ask a question on behalf of the consumers since I'm here today. We have seen many reports throughout the summer that the competition between the banks is not good enough. Then of course you do yours here in this bank. But I still want to challenge you, Jan-Erik. What do you think we can say to the consumers at home who are sitting and experiencing different challenges today? And of course the private customers, but also the business community. What can we possibly do to improve the competition in the banking market?

This is a very good question. My experience is that the competition in the banking market is very good. In contrast to many areas, there are an incredible number of actors who compete hard every day in the banking market. I don't know, are there 80 savings banks now?

Yes, there are probably 5-8 Norwegian banks.

We experience that it is quite tough competition. We do what we can, among other things through the Bulldog concept, where we are really pushing for renewal in the Norwegian banking sector by challenging the entire Norwegian banking sector through the Bulldog concept. For example, we lost 15 million on that concept in the first half of the year because we have a very low pricing. So we experience that we are part of taking the banking sector into even tougher competition, even better cost efficiency. If we are going to deliver good prices to our customers, we have to drive effectively. We have been enormously concerned about costs for a very long time, have the lowest cost of income in the industry. What we also want to see is that consumers and businesses will be served by banks that are robust, and I am quite sure that the loss level, we are in a period where the loss level is unnaturally low, and then we will also get a loss level that will affect the banks in the future, and then we have to make sure that We are ready to meet that as well. So I knew initially that it was going very well with our customers, fortunately. In relation to maintenance and freedom of delivery, it is on a record low level. But I think you're right, this will be more demanding and we must be good advisors. We must continue to challenge the Norwegian banking market in relation to pricing, as we do at Bulder. And these are perhaps the most important areas we can contribute to.

It is important to say that the competition is quite strong, and we see that more and more banks are moving into new markets. Banks south of us are moving up towards us, banks north of us are moving down towards us, and we are also moving out of our historical market area. So the intensity of competition has actually increased in recent years.

We have never competed so much with other savings banks as we do now in our region. SR Bank, Sognefjordane, Sparbank MidtNorge are very tough competitors to move into our geography. So that's an important point as well. One thing that has happened in the last quarter is this retreat from Danish banks to Norwegian banks. There are several ways to look at it. My main perspective is that they didn't manage to get a loan in the Norwegian banking market because the competition was too strong. And that's also an indication that the competition is tough when large Nordic banks withdraw because they can't get a loan in the Norwegian banking market. So that's an important point.

Yes, any other questions from the audience? While I'm thinking, I can take one that came online from an investor in Oslo. A very strong increase in stand-alone, calm for Bulldog from 9-11% in 2024-2025, to 17-20% in 2025-2026. What is it that drives this jump in calm?

No, in light of the same costs, we want to be able to scale the effect on bulldozers. We think we will be able to strengthen the share of customers in the bulldozer concept, which again will strengthen the recognition of the use account share. That will be part of the concept. We are at the very beginning when it comes to building other revenue. We think we will be able to improve revenue in short term, so that is important. We started now with a small experiment on insurance, to see if we can break the code on digital distribution of insurance. And then we have a rather aggressive price strategy now. It is unnatural to expect it to exist forever, so it is also obvious that at some point we will raise the focus on top-line growth and wages, which is a little different than we are doing now. And the sum of this we are quite confident will give And then we will certainly have to tweak the tune on this along the way. It may well happen that they are not at the end of 2025, but we think it is quite important to dare to doubt yourself to some level of ambition. And we have delivered on what we have said so far in the beginning of the concept, quite confident that no one else will be able to deliver a foreign portfolio, drive a foreign portfolio of 60 billion less than us. That's the basic idea. If you have anyone who thinks they can do this better than we do on a marginal basis, I'd like to hear it. But I don't think so. That's the basic idea of why we think this is an advantage on a marginal basis from 2026.

Thank you. Another question was that the staff cost is up 5% in the quarter compared to the same quarter last year. Is the wage increase reflected in the Q2 costs?

Yes, we have taken care of that. We have periodized the effect of the salary tax in the second quarter. Now we got a delay on the salary tax, which meant that we were in potential conflict. This means that the payment for the adjustment will come later than before. But we have periodized it in, and we will take care of that in the second quarter.

Yes. No questions while we take the others. No. Just to point out something else.

In Bulder, who did you take customers from in Q2? Let's see if we can get into that later. What we see is that it's not like it's one actor. Many of us may not think of one actor, but it's not like that. We actually take most from the big ones, the biggest banks, really where the customer growth comes. And then Simen can come in on that later. But the big answer is that it is from the big banks.

And then we know that everyone is concerned about capitalization, right? And what level it is, and it is still 5%. The growth has been significantly higher in the second quarter.

Important. What do you think about the inflows in the second half of 2023?

We have a clear ambition to grow on the research side in the future. But with the macro picture we have now, it makes sense to assume that the household is more dependent on the media than they have done before. But we will reach our goals for research growth in the second half, and we have good faith in that. And this is one of the areas we are discussing quite closely now, which was also prioritized in the work in the second quarter, out in the organization.

As we're talking about revenue, do you want to increase revenue coverage? Do you have a target number?

We don't have a specific target number, but we do want revenue coverage on a salary basis. Some say we have a lower revenue coverage than other banks. That needs to be nuanced. It's about what you include in the revenue. If you take a lot of large capital, to use the expression municipal income and integrate it into your income tax, then we know that it has the same amount of flexibility that other money may have, and that you also pay quite a lot for. So what is important for us is the income we get from our ordinary customers.

On capital coverage in the quarter, it goes up, the risk values go down, what is the reason for that?

Among other things, there is a growth in housing price development that replays that. We see that the IRB model for banks is sensitive now, among other things, to housing price development, so that is among other things affecting that, and perhaps the most important thing to draw forward. And then I think everyone who follows the Norwegian Bank must take with them that the capital cover is going to swing more than before, and especially now that we are entering a time where housing price development is moving a little. But housing price growth is one of the explanations for strengthening the capital cover.

That's important. We've got another question from an analyst. You're expected to be the fifth foreign currency on the private market. Where do you think this relationship will be in five to ten years?

I think the most important thing for this meeting is to think that we are an organisation that likes to spin around. We are the short-term decision-makers. We are not interested in building buildings for the sake of buildings, we are interested in building buildings because we believe that they are valuable for the owners of the bank, the social capital and the one-capital business owners. And to do what we believe is the right balance between growth and profitability in this industry in relation to the substance that we are building. If there's one thing I've learned, it's that it's never going to be the way you think. It's changing, and no one had imagined it would happen. Now we've had an Apple Pay round in the media, which has meant a lot to Bull. So it's hard to say. We're going to build a concept that's long-term, and that might even stand on its own feet at some point. and create value for today's owners. It is very difficult to say how big this will be. I would not have dared to spend a lot of money on reaching 36 billion in the middle of this year. So it is actually a bit unpredictable to be very precise on such a new investment as Bulldar is. Good point, good point.

Are there any questions from the audience up here? Kjetil Kjørsen from ProFond.

It has been a promising year in the banking world, with a very large turbulence. It's nice that things have gone well again. With the concern that there was earlier this year with big funding problems for the biggest banks, what I'm curious about is how it affects the Norwegian funding market. To what extent do you notice this?

It is clear that there are events that we have seen in the US market, as well as in Switzerland. There are infection effects in the Norwegian market, which also affects the financing costs of all Norwegian banks. This is factors that affect in a period, and then it goes down again. But nevertheless, we have to say that the capital market is volatile. This is in line with the macro picture we see now, with all the factors that affect it. We see this in our capital. There are significant changes in credit spreads, and there are also significant changes in the costs of interest and currency stocks that we do on our financing. Yes, if something happens outside, it also affects the market at home. And then I would like to say that the most important thing is actually how the bank performs. And if we deliver good numbers, we will still be able to maintain a good position in the capital market. And if we have good people on this, that is also an important factor, and I think we have that.

Yes. Any more questions here on the stage? If not, then I would like to thank you for this part of the session today, the result presentation. We will now take a break until quarter to three, where we will continue with Capital Market Day.

Thank you.

I have no intention of trying to sum up the 200 years of Sparebank history in the 20 minutes I have available. But I have a very clear goal to try to show you how we have used the savings bank model as a business model, as a strategic platform for how we have worked and thought the last ten years. Try to look at the format, the scale of the values we create for our region, how we think and measure the effect around this. Finally, I would like to share with you some of the leading reflections that have influenced our discussions in this stage, which is about really believing in the savings bank model, believing in the ownership of society, believing in the ownership that lies in the model. What is required to be internally controlled and not follow the least way of resistance. The 10th of June is boiling hot in Kjødehallen. We celebrated Sparerbanken Vest for 200 years. It is an enormous pressure to bring together the Sparerbanken Vest team and our Vest colleagues. And when I turn around and look at the audience, it strikes me that it is a very visible generational shift that is taking place in Sparabanken Vest. The audience is full of people in the age of 30 to 40 who have worked in Sparabanken Vest for a relatively short time, who have chosen Sparabanken Vest with a high education in a labor market where there is great competition for these profiles. They have chosen SpareBankenVest because they also believe in the SpareBank model. This is very clear in our recruitment processes, and it is also very clear in the organizational survey that we carry out annually. On a scale from 1 to 5, the ownership score is that the vision for SpareBankenVest makes me feel that my job is important. That score is very high, 4.2. Over the next evening, I think our husband, Bishop Neumann, will look down on us and smile. This is the founder of Norway's second savings bank. On Monday, March 3, 1823, Bishop Neumann gets 99 ordinary, poor people from Bergen to join him in establishing Bergen Sparebank. based on the idea that it can solve problems for single families much better in society. It may look very old-fashioned and priest-like, but Bishop Neumann is an enormously progressive profile. He has been a bishop in Bergen for 26 years. He has a theology exam, but he also has an exam in philosophy. He is very politically active and is in charge of a number of social movements, very influenced by the philosophy of the Enlightenment. He fights for vaccination programs in Norway. He established Norway's first kindergarten. He is involved in ensuring that Ivar Aasen gets funding to travel around and write down the language in Norway, so that the new Norwegian writing language actually exists. And he is central to what will become the University of Bergen. As you can see, the bishop is excitedly updated on the development of Sveg on the stock exchange. And that is because his philosophy, which then corresponds with the other strong actors in the banking sector early in banking history, they are actually very much concerned with social entrepreneurship. They are very interested in value creation. They don't see a contradiction between building society's best based on capitalist ideas. This is also very well known from the Hygienists, which is also very central in the West, and stands on the barricades for ordinary people to be able to build their own business. So the savings bank model This structure makes everything we have worked for and everything we believe in based on this foundation, namely a strategic simultaneity of four different interest groups. It may take a long time to call it this introduction, circular economy, but it's about seeing four very different perspectives at the same time as an ecosystem and just choosing strategic solutions that are good for all four at the same time. That is what we have built our strategy on for the last ten years. And it has created great value. You know the numbers. 2.1 billion kroner in social spending in the last ten years. It's a formidable number. If we look at the gift allocation for 2023, up to 301 million, towards the Bergen municipality's investment budget for sports in the next few years, you can see that this is a large sum. Jan-Erik shows signs of good projects that we are involved in, and we are visible and visible all over the region. But we also work very systematically to ensure that the means, the social exchange that is generated by the 290,000 customers that own us, builds valuable values for the region's best. Therefore, milder sports projects are closely linked to the fight against the outside world. We are close to the fires that protect the living local environment along the entire western coast. And last but not least, we are leading in securing structures that increase the capacity for change in our region. For example, the Western Conference. 3,600 seats are torn away very quickly in Grieg Hall. 3,000 follow us online. Social media is boiling in the following weeks. It is very clear that the topic is engaging. Then we turn around. And then we expose the leadership training program with the best who have been invited to the conference. With actors we have worked closely with. Hundreds of dedicated leaders who want to strengthen their trading power for their companies and for the region's best are actively working together with real experts next year. And afterwards, they cook again in social media, with their commitment and energy. This is a very concrete example of how we work with the best perspective of the ecosystem. And what we also do is that we make documentation when the effects of these programs are finished, and we make that documentation in a format that we can put out in our sustainability library, which is reflected in our ESG reports. So this way we work very systematically with sustainability projects, social sustainability for our region, to ensure the capacity for transformation. And customer service, the last four years, 1.7 billion, as Jan-Erik showed, is a formidable sum. And then the question is, Would our customers just prefer lower interest rates? We have had smart questions earlier today on how families under increasingly large economic pressure think forward. What we see in the customer surveys that we have on our customers is that their experience of the conditions with us is stable. What we see when they put words on it, 2,000 customers report what is important for them in the choice of bank in quarterly KTI-investments. And what we see is that simple digital solutions, accessibility through simple digital solutions, competitive prices, local location, customer exchange, knowing that you can contact an advisor You know who you are when you have demanding discussions or important investments to make. These are very strong drivers for our customers to choose us. Then we see that the customers are very clearly positive to customer exchange, just as they are positive to the gift part of our business. The knowledge of customer exchange is very high, 80% are familiar with it. And the response in the business market is very positive. Response to customer exchange and social exchange. That we are an important local supporter. These are our existing customers. Jan-Erik has also shown a fresh survey from Kantar. In this case, there are 800 respondents in Kantar's panel. They are not necessarily our customers. When we created the positioning strategy for Bulda, we were very close to placing the brand in the area where we thought Bulda could stand out from the other competitors, in the red segment. The segment division is about the preferences of the customers in the Norwegian banking market. What bank profile are they interested in? In the red segment, the picture is very clearly placed. Sparbank Invest has always been very clearly positioned in the orange and partly in the brown segment. These are the preferences our customers have. When we now have a new survey, four years after the establishment of Buldær, it is very clear that Buldær is in a sharper position, but that also marks the bank most. And it is very nice to see that when we measure the brand strength, that is, the brand's ability to deliver on what drives it in the category, then Sparbank Invest comes out very positive. And in this question battery, it is we who stand out significantly best. And there are no age-related differences in those who experience that Sparbank Invest stands out positively. It's fascinating to see how strong Buldas is in this context. A four-year-old brand against national giants such as DNB. It's also fascinating to see that the younger the respondents are, the more they hate Buldas. And the older they are, the more they think that S-Banken stands out. So we're keeping up with the brands we've chosen for a long time. Another very interesting factor in this survey is the market's ability to collect more value. Here you can see that Sberbank Invest comes out very well. The experience of value over the experience of value. Here we are very well positioned. The same goes for Bulder and S-Banken. The most interesting thing in this study is that when these 800 respondents are asked what is really important in the choice of bank, these four factors come up. These are the four factors that are the strongest drivers for the choice of bank. Relationship, effectiveness, trustworthiness, security, and being a social builder. This means that even though we know that the future outlook, especially in the personal-customer ratio, will be more demanding, even though we know that the economic macro picture is already demanding for many families, we are very confident that we are in a very good position to be able to deliver on our value suggestions, which correspond very precisely with what drives bank choices. We are going to do our thing, and we know that we must deliver even stronger on our value suggestions in the future. We also know that the work of fighting for the savings bank model is not finished yet. The American poet Robert Frost wrote a poem called The Road Not Taken, which many of you probably know. It's about uncertainty and resistance to not choosing the least possible way of resistance. Over the years, there has been a constant weighting force, which is that self-reliance is too complicated. Investors do not understand what it is, and at least international investors do not want to understand self-reliance. The capital market hates complexity. The stock market is much easier to understand. Gravity forces. that are against the fact that self-capitalism is an odd instrument. The forces have been there for a very long time. And in so many miles in the bank's strategy work, we have had a very clear relationship with how we must think and how we must act in order to take advantage the savings bank model and the ownership of the brokerage that it represents, and self-reliance as a very important structure in this. And even in 2023, we would really like to see clearer drawbacks and a clearer resistance to force, when changes in the EU contribute to discussions and investigations that cause doubt around the proof of our own capital. So votes that clearly hold on to the premises for the banking model, also in the regulatory spectrum. That will be extremely important, and we have to do our part of that work, also in the coming times. That is why we find energy in the thoughts of Eivind Reiten, Minst motstandsvei ville være å tenke at alt konvergerer mot et standardisert, helt likt struktur. Men altså det å tro på at egenkapitalbeviset fortsatt skal spille en veldig central rolle, korresponderer med det å være indre styrt, som hos Reiten. Hvis størrelsen var avgjørende, ville elefanten eid sirkuset. We believe in the Sparbank model, and the analysts do too. Our expectations are sky high. We are very happy about that. It is a space for action that we will use for everything. We will secure further strategic work, which we take into account, the four different interest groups. All our work has been focused on. And we will continue with the same efforts as we have done so far. I will summarize and give the floor to my talented colleague Linja Stahl. But before she gets the floor, I want to show you what our jubilee script is. It is not a book about what we have done in the last 200 years. It is a short film about what we want to build in the next 200 years. And then it can be hopelessly naive to think that a savings bank with 620 employees and 290,000 customers in total can represent such a substantial regional power. We think it's naive to believe that someone else should be.

Hi, my name is Linn Hjerstad, and since the last Capital Market Day, I'm the new leader at Bærekraft. Today, I'm going to tell you a little bit about how we work with Bærekraft in practice. I'm going to tell you about how we work with turning our housing loan portfolio. I'm going to tell you about our updated green obligation framework. And then I will tell you a little about the sustainability goals and give you a second opinion on these. And then I start with the transformation for private individuals. Last year, we got a new sustainability strategy. We at Sparvenken Vest, we will be the strongest promoter to help Westerners in taking sustainable choices that ensure long-term competitiveness. To do this, we have four strategic building blocks. We will hunt for competence. We will go from insight to motivating solutions. We will use the competence we build to give our customers good and motivating solutions. We will actively choose and develop the customers who take us towards net zero in 2040. And then we will accelerate a sustainable society. Sustainability, we have worked with for quite a long time now, and the focus has long been on what is green and sustainable. We at Sparabanken Vest have long been clear about the fact that what we say is green and sustainable is in accordance with EU's taxonomy. If we have customers or projects that are in accordance with EU's taxonomy, then they get the best conditions we can offer. But in order to be a taxonomist, you must first and foremost fulfill a set of technical criteria for the UN's environmental standards. You should also not do harm to any of the other environmental standards. In addition, you must have a set of minimum criteria for social relations and governance. This is obviously a gold standard. It's a direction that everyone should follow. But if we look at our portfolio, we see that we have a lot of rented houses in the center of Bergen, for example. It's not realistic that one of the next years will be completely taxonomy green. But that doesn't mean that we shouldn't do anything with them. Because our entire portfolio can become greener, and it can become better, and we will do something about that. That is why we have received some new products on the private market. We have long had the green housing loan, which is a housing loan where you get the bank's best interest if you have a very energy efficient home. But we have also launched an energy loan, and we also have a green upgrade loan. The green upgrade loan, you can get as long as you make a deposit on your home that lifts the home with two energy classes or more. And then we know, with the macro picture we have today, that not everyone can improve so much. There must be quite large financial muscles to be able to do it. But we believe that all lifts, whether small or large, are important to run our portfolio. Therefore, we also have the energy loan, which is a loan for those who want to make simpler measures, for example, install a heat pump. And how do we think we are going to manage this and achieve the transformation in our housing portfolio that we want? We have entered an innovation contract with a start-up called Wilda. And Wilda is the tool we use to sell green upgrading loans. This is what we really believe in. We believe that this tool, with the help that VILDA gives, will actually create change. What is great about VILDA is that you can not only go straight to your mobile phone and do it, but you do not need to be an engineer to find out what measures you can take to improve your housing. In VILDE, you enter your address, and then you get a suggestion for measures for your home. Not a theoretical home with these good measures that can be done, but what can be done with exactly your home. You get the information in a language that everyone can understand. It shows potential savings on the electricity bill. and gives you good information on where you can move forward. And if the measures you are working on will reach you with 30% or more, then you are in a position to apply for a green upgrade loan from us. And why do we have this faith in VIL? If we look at the newspapers, listen to the radio, and watch TV this week, the extreme weather is the headline. This summer, we have had even more heat records. This spring, there were major media reports. that new regulations from the EU not only hit companies, but also us as individuals and our homes. And at the same time as this is being beaten up, there is uncertainty around how it will actually hit Norway, so Innova chooses to lower its energy mark calculator. This means that we, as private investors, can no longer know how big of an impact the investment in our homes will have. Therefore, we believe that VILDA will respond to something we lack in the market. Vilda gives solutions for your home. What's good about a bank like ours working with a startup like Vilda is that we quickly find out what our customers want. We see that some people just want to see what they can do. But some people already have a plan for themselves, but they want to know what effect it will have on them. In addition to proposing measures, Vilde can also look at the measures you want to do, and scan the documentation that we at the bank can use to provide basic compensation. And this is just one of the ways we build a green portfolio. And then it is natural that we are talking about our green obligation framework. And then Frank has interfered with the news a little, but I have to say that it is incredibly nice to stand here today, when we, on our green framework, received top scores from Mydis on the third-party evaluation. And not only do we get top scores for following recognized standards and that we have good reporting, but we also get top scores for the impact we have through what we finance. The green portfolio in Sparbank Invest follows the strictest criteria for green units. We also have a clear strategy for having a good buffer for green units, so that we always have enough. Our job in the future is to increase this portfolio. We will do this by nudging our customers through services such as Vilde, but also by improving the data quality of the data we already have. We have a very clear sustainability strategy in the bank. The green obligation framework is built on this. With the updates we have made, we continue to finance water, housing and food. It is a common framework for both OMFs and senior obligations, but what is clearer now is which of the UN's sustainability goals we support, but also that we link this closer to EU's taxonomy. It was very cool when we published this framework in June, and since then we have received very good feedback on it. We are probably one of those who have gone the longest in connection with taxonomy, and we also try to be open to what we can't change yet, but we want to work with in the future. This link to taxonomy makes the criteria for the basic portfolio stricter. But we've known for a long time that this is the direction it's going in. The portfolio we have will not be significantly reduced by the updates we make. We also have a belief that with better data quality, with more and better products, we will increase the green portfolio over time. And then over to our sustainability goals and seconding these. Our long-term goal in the bank is to reach net zero emissions by 2040. This is an ambitious goal, because it does not only include the banking industry. It also includes the indirect emissions that we finance through foreign goods. That is why it is so incredibly important that we manage to rearrange the portfolio we already have. And we have set goals for both the private market and the business market. In the private market, we have a long-term goal of reducing carbon intensity by 60%. In addition, we have set more short-term goals. We have annual goals at the team and advisory level, and this is also included as part of the bank's target. We have done this to ensure that sustainability is a part of everything we do. We should always think about this and take it with us. At BM, we have set goals for each industry. We have our own goals for ownership, shipping, fisheries and fisheries, agriculture and water power. Here we have goals, both long-term and short-term. and it's a part of the credit card in the bank. And when we second how we position ourselves in relation to our goals, it's important that we look at the products we have, and how they help us reach our goals. So we have set a goal for how many upgrade loans we will sell. This year we will sell 350 upgrade loans. Per June we have sold 134. And that's under half. We are a bit behind, but we have in mind that in this period, NOVA lowered the energy calculator, which made it possible for us to get a little slower speed in the beginning of the year. And we see now that the pace of NOVA in the summer is faster, so we have faith that this is a goal we can still achieve. The green portfolio for the housing portfolio is at 22%. This is a good percentage, but we want it to be higher. Therefore, we closely monitor the data quality in the housing portfolio. We monitor how much energy is marked to be able to take out the effect of this. We are now up to 53% of the domestic debt portfolio, which is the energy market. As far as I know, it is the highest share of the energy market of Norwegian banks. In the business market, we are also concerned about the transfer of loans. Here, the most important means of work are the loan-linked loans. For BM-portfolio in total, we have said that we annually must have 20% VAT. Per June, we are at 24%, so we are well above the target. But to be able to do this for the year in total, we must still have a focus and a push on this through the autumn. The green portfolio of ownership at BM is lower than for the housing portfolio. It is at 16%. We think this can also be improved by increasing the data quality. For commercial buildings, the share of energy markets is much lower than for housing. At Vannkraft, we have a growth target for 2025. We will increase the portfolio by 50%, and so far we have managed to increase it by 19%. So we are on the right track. But if you look at the bank's climate agreement, You may have noticed that about half of our climate emissions are in shipping. It's important to focus on reducing emissions. That's why it's very exciting to get the results from the Poseidon Principles, where Sparbanket Vest is the best bank of all the banks that have signed the Poseidon Principles. In addition, we are well below the decarbonisation level. This, we have an expectation of, will sharpen. We think it will tighten, become sharper. Therefore, it is also nice to say that the segment in the business market where we have the most sustainable loans is shipping. So here we have a very large focus in the future. So far, it has largely been the foreign portfolio I have talked about. The reason for that is that this is our biggest climate impact, and this is where we have the biggest chance of affecting. But that doesn't mean that we forget ourselves. In 2018, we set a goal of reducing our own climate impact by 50% by 2025. We reached this goal already in 2020, and the trend is still going down. That is why we are very clear that in the future we are focusing on indirect emissions, but that does not mean that we are not doing anything. So we have begun to look at how we compensate for our residual emissions. And then we wish that sustainability is concrete and tangible. It is no longer just talk. So, we have decided to compensate for half of our waste, internal waste, with the help of Norwegian carbon storage. They provide certified carbon removal through BioCool. And that's what I have with me. And that's fun in itself, because you can see, here is the carbon we have collected. But in addition, this gives value to Vestlandet and to our customers. And it was perhaps extra nice when we received this article in Bergenstidene. This is one of our customers who produces sides in Halanger. And he gets large amounts of this biofuel, which he takes to the earth, and already sees that it prevents erosion of the Halangafjord. With that, I would like to say thank you very much. I will be back if there are any questions afterwards. Bærekraft is about change and about thinking new. And someone who really knows how to think new is my good colleague and director at Buldar, Simen Eilertsen.

Yes, thanks for that, Lynn. Jan-Erik presented some hair ambitions for the growth of Bulda in the future. And I'm going to second what we're going to do to achieve these hair goals. And those who have attended the quarterly presentations to Sparbanken Vest, since I took over in Bulda, there have been some hints that I think we have an unlimited potential in taking care of the traffic and the traffic machine that Bulda has become. I will get into the specifics of what we have done in the last quarter. First, it's fun to look back at earlier capital market days and see that even though we have set high goals, we have a good track record every year on reaching these goals. And between 2020, 2021 and 2022 capital market day, we are not far below double the volume every year, which is pretty cool. This year, as Jan-Erik pointed out, we are not completely doubling, but we are not far below last year either. That can be quite demanding in the future, to manage in the same pace, but we will do our best to continue to have a good growth. As Jan and I mentioned, we have low risk in our portfolio in growth. The easiest thing in the world is to receive bad customers who will not get loans from us. But we have grown a lot on low risk. And we also, apart from low LTV, we have low complexity in the customers we take in. So there are no different owners for all the homes we take in. They have high area costs, they are highly affordable. Something that would suggest even greater security than what is expressed in just the LTV figure. Our volume today is a reflection of history. Our market potential in the future is reflected more in our knowledge. And in that degree, the customer thinks that we are a relevant actor. And that knowledge in Bulda is strongly increasing. We have gone from building a brand from scratch at 0% to now over 40% knowledge in a very short time. And not only that, the customer does not just know us, but they think we are relevant. Last year, when Kantar did an investigation for us on how many percent Bulldar would have evaluated as their next bank, it was 9.5% who answered that Bulldar was one they evaluated. This year, it is 14.5%. This is, among other things, due to the strong positioning of Needscope. We see ourselves as a clear challenger in a segment where there are not many banks today. We are very happy about that, and that is good in relation to the offensive growth forecasts we have laid out for the future. The most important growth driver in Bulda is the conversation around the lunch table. We see that when it comes to banking, and when banking is in the media, or when something happens that makes banking relevant, then the bubbles grow. When the interest rate went down during the pandemic, we grew a lot. Now, the interest rate has gone up because of the momentum. The underlying reason for the bulls to receive this momentum is our positioning. We have positioned ourselves to receive this momentum, and we believe that we will be able to maintain this position in the future as well. Two years in a row, we have become the favorite customer on bytt.no. And when an increasing number of customers recommend us and are satisfied, it is a self-reinforcing engine in our growth. And it's not completely free, it's not just brand strategy and positioning that makes our customers engaged and recommend us further. We also take them actively with us in the development of Bulda. We have roadmap, an open roadmap on our website, and we second that to our customers. On e-mail and through voting. Before Christmas, we asked the customers if they wanted monthly capitalization on their savings account. Yes, okay, a week later they had monthly capitalization on their savings account. And that's the kind of thing that builds engagement. We read and systematize all the feedback we get from our customers. We are extremely interested in this. We don't have physical channels to create a relationship with our customers. But we have to receive the feedback and show that we are actively doing something with it. Because then we create a relationship digitally. Here is an example from a customer who accidentally sent a message back with a small fix related to the contract sciro solution. The CTO, the leader of our IOS team, and the product manager for the app are talking to each other on the Slack channel, and on the next IOS update, it's out with the customer. And as a micro-example, our feedback channel on Slack is definitely the most active channel, and it creates a lot of engagement and discussion. And we also do something related to taking in all the qualitative insight and making it quantitative. We systematize and structure all the feedback in a tool called Product Board, which means that we have very good control over What do our customers want? And what effect will this have if we develop it for them? We also communicate openly, because we are new. So it's not all bulldozers that are as good as spare tires that are 200 years old. And we communicate that openly with our customers. And that makes us get daily feedback like, I miss this. I'm looking forward to it coming. I'm waiting for it, but it's fine, because I know it's coming. If we read about bulls in social media, it's very often that they lack this and that, but they're a great development, so it's coming. One of the things that needs to happen now for our customers is that we chose to focus on biometrics. We are a modern bank, but it has some unfortunate consequences. For example, if you break your camera, you need access to the bank. We have also received a lot of pressure from our services, saying that the chat solution has worked too badly. We can't hide behind this, no matter what. The customer knows that. So we just communicate it to the customer. Dear customer, this chat solution was too bad, but we're going to change it. And we're going to do that now in the fall. And our customers think that's very good. And the sum, as I said, gives a very high level of engagement. Our customers, if you read any article on the internet about a bank, or a certain purchase, or that a Norwegian bank is raising the interest rate, it is written under exchange bills. Switch to Bulda. I have good experience with Bulda. When S-Banken announced that they wouldn't have Apple Pay, our customers are super engaged in sharing and spreading, because they have that belonging to the brand, and we have invested in building it. So they have a relationship with us, even if it's digital. And this is from an internal customer survey we did in July, where 75% of our customers said that they would recommend us to friends and acquaintances. And that's what we see. So that's our most important change. That's the recommendation, and that makes us, on a relatively moderate market budget, be able to take a big market position. And then, what I have talked about earlier, that I mean that potential bubbles in growth have been higher than we have managed to realize and take out, it's about our growth engine. A customer journey in Bulda, if you want to get a housing loan, often starts like this. You visit our website, or you hear about us, you visit our website, you start an application, complete the application and get it paid. And to what extent we manage to get as many as possible through every possible step. If we manage to get 10% of those who visit our website to start a search, and 5% who start a search to complete a search and get a paid loan, then we have gained a lot that year. Different digital concepts. They have different levels of growth. One of the levels of growth for Bulda is not the power of distribution. We have an enormous power of distribution in our customers who recommend us to others. So we can have 600,000 visitors on our website in a year. Which is nothing more than a sales channel for our daily bank offer on the internet. If we increase the conversion from the visit to the next site to the start of the search to 10 percent, we have sold for 10 billion in housing loans that year with the same market budget, the same group, the same cost. If we increase the start-up to a full-fledged increase from 5% to 10%, no analyst will be very surprised when I say that the sale doubled. But this happens at the same cost base and the same marketing cost. It's about taking better care of the traffic. We have done that. This is one of the projects we have done. We have done that by doing hardcore digital scaling. We have introduced very strict principles for the way we work in different places in this conversion process. We now have full control over all the steps, how well they perform and how well we think they should perform. Among other things, on the yes and maybe the no, how many percent of the loan flow was deducted, we have reduced that significantly, among other things with the help of the bank's STD and banking service department. So there we manage to realize more synergies than we have done before, which is very fun. But I'm going to go into how we have tracked the percentages in each of the steps on the website. The first thing we have done is that we have fewer compromises. Previously, our website Bulda.no has been a good mix of many good features. We have not dared to claim ourselves as what we are supposed to be. We are supposed to be a home loan growth machine. And then all the communication on our website has to turn around so that we can get you into our loan flow and motivate you for it. Now, from the moment you land on Buller, it's one click and you're in our loan flow. We have implemented more call-to-action instead of... I will go into some examples. And we have increased the pace of the work tests dramatically. A, B, C in for digital scaling. You have to go up in a high speed on experimentation if you are going to get a crack on that curve. Then we have some common principles, which is that all changes we make on the web or in our search engine, the new one must always beat the old one. If you are going to do something, it must always be the new version, always be more commercially interesting for us than the old version. And that's a typical case you go into. And we have also been able to test messages on the web without any developed capacity. So we can test all the time, running, without any form of developed capacity, something that increases the pace. I'm going to go through some examples of what it can mean if your website is a piece of paper versus if it's just a piece of paper. On these A and B versions, the only difference is that we have removed a bit of dirt. We have removed, for example, Be a customer. The B version converts 3% points better than the A version. That's quite a lot when you have 600,000 visitors a year. That's quite a lot of started loan applications. We have removed between-sides, which is typical if you are a digital actor. You are going into a heavy process, so it is typical to think that before you go into this heavy process, we have to warm you up a bit, tell you what is going to happen, and so on. We try to remove that. 6% increase in conversion on the percentage that comes in and starts a loan application with us. A more clear call to action, instead of saying read more about the exchange, we write move the loan today. Instead of going to our customer exchange page and going to cut the play instead, you go straight into our loan search. It has 3.7% better conversion rate on that page. This is how we optimize and control the effects all the time. Here is an example of how to get the most out of the market. Earlier, we have a collaboration with a company called bytt.no, which we are very pleased with. They send traffic to Buldasflata. Earlier, they landed on our home loan side. Now they land on their own dedicated landing page, where we continue communication from bytt.no to us. And it's 8% better conversion on traffic from bytt.no. It's a 30-40% increase. in the effect of media spending, because we continue communication within our areas. So this has a lot to say for the growth. And the result is that in Q2 last year, it was about 5% of all those who landed on our website who started a loan search. In Q2 this year, it is 16% of all those who landed on our website who started a loan search. And not everything is our own achievement, because that's a little context in the picture, but an essential part of it is that we have increased our ability to get people to start a loan search, made it more attractive. Jeff Bezos is a smart man in many areas, and that's something you can see in digital scaling. And he says it's very impressive, because it's not one experiment that succeeds. It's if you manage to get up the pace and volume in these things, you manage to really Next stage in our growth journey. We have a chat solution that is not good enough for us today. You have to be able to log in without biometrics as a fallback alternative. We have some things in relation to covering basic functions that we have to get in place. It is not very much. Then it is to scale on a very good value proposition and a very good starting point. It's about being smart and running smart digital marketing. We see that when we take away communication about changing the whole daily banking relationship, our effect on media spending increases by almost 20% if we only write and talk about housing loans. For example, use those funds as best as possible. Continue to work with digital conversion. We have come a long way on the loan side. I think we still have an undisputed potential, and we have at least an undisputed potential on the sides and in the area of daily banking and savings. Scalera operationelt. Vi har lagt offensive planer i forhold til hvor mange vi skal være. Så det blir en viktig jobb for oss i det videre arbeidet. Også få til innskuddsvekst ved siden av, for det er en viktig del av finansieringsmixen. Jan-Erik was in on this, but a part of the plan is also that it will be a bit of a mess, but on the other hand, we are working to trim our growth engine and scale to an incredibly good potential. very, very, very clearly in Bulda's history, we have been working intensively to find a problem to solve that is completely different from what the banks have done today. With the value proposition where we automatically lower the loan to the customer when the price of the home increases, we have a foundation, and the work we have done with Needscope and Markerware, we have a foundation that is incredibly good. Thank you.

Thank you, Simen. It's always nice to hear from you. We have a few minutes left. If you have any questions that you'd like to address at the end... Yes?

We have customer service, and it's incredible. We see that you can't let it be. But all the loans we issue are 100% digitally processed. But it can also be that you have to document some conditions. So it can be that the loan is in some degree given with preparation. For example, if you just got a new job, and we haven't been able to catch it up in our... algorithms and systems, you can adjust your salary along the way, and then you get an offer with the expectation that you can document your new income, for example. And it is also incredibly important for us to have some kind of valves to manage growth goals. But we are very effective in that area.

The concept of a mobile bank seems to appeal to the younger part of the population. At the same time, low LTV loans may appeal to the older part of the population. Can you say something about the demographic of the customers and where the growth is coming from at the moment?

The growth is, we take a cross-section of the population, so it comes mostly from the east. But what's nice about Needscope as a segmentation, and our market manager says it very nicely, normally you divide a segment into ages. With Needscope, you cut the loop wrong. Needscope goes sideways, and we position ourselves in a red segment. So for us it's more important how you have a brand connection and attraction to a brand, more than what age you are. You can also be in a red segment in Needscope if you are 50, as if you were 20. I understand parts of the question, but we see that we manage to get around it. There are some people who are very fond of their network bank on the web, but they should be allowed to be elsewhere. We should be strong in what we should be good at.

How important is it to have such a low price point in comparison to the competitors to get growth? The chairman has promised that profitability will improve, among other things, that you will focus more on profitability versus growth. How do you think that will affect customer sales and future growth if you do not price yourself so sharply in comparison to the competitors?

It will be a bit early to discuss what that means in 2026. But from August 8th, we see that S-Banken is more favorable than us at most price points.

So they are lower than us on all LTV steps right now? Yes. We'll get a test on that. S-Banken prices are higher than Buller right now. So it will be exciting to follow.

Then we get the answer in Q3. Correct.

In relation to the last two lectures, do you only have one loan product, or do you have a green differentiation?

No, we have one loan product. We try to keep the complexity very low. It may be that it will come at some point, but Bulder is still quite young. What we are even more certain of, as we have built Builda, is that the complexity should be low, and we should be extremely good at what we are doing, and not do too much. So actually focus on housing growth, that is the main focus, and then make more customers for more customers afterwards, on the use side.

We are a small organization, but we have talked about financial evidence at some point. It has been blocked, because we have a lot of potential in what Simen has talked about. We don't want to spread too much, as long as the potential is so great in the traffic we have. The trick is to not increase the costs, because we want to do a lot to increase the complexity. Other questions? No. Then I would just like to say thank you to all of you who were there today. Thank you to everyone who visited us on the web. Welcome home.