Sparebanken Vest

Welcome to the presentation of our three-quarter number for Sparbank Norway. The first quarter where we are Ny Bank, where we are Sparbank Norway. And if you have questions along the way, do as you always do, send them to this email address, then we will, at best, answer the questions in a question and answer round, after I have gone through the main points in our quarter numbers for the third quarter. If we start with the most important key figures, we have a good quarter. We are in a very exciting phase with the establishment of Sparbank Norway. We have just started. We have started our cost-realization synergy work. We have worked well on the capital side. We invest in new geography, which is one of the things that characterizes the result. Nevertheless, we have a good net capital return of 14.5 in the quarter. And we also have a route of 16.5, where we adjust for goodwill, added value and writing down of these added values. So a very good underlying trend in spite of significant change and significant investment right now. We have a result per capita for 4 kroner and 1 euro. We have a very good capital situation. Tensyn has taken a new floor on risk values on the personal market. We are at 18.1 at the beginning of this quarter, and we have a recorded value per capita now of 112.20 kroner. We deliver a good result, despite the fact that we are in a transition, in a breaking point, in a start-up phase with Sparbank Norway. We have a goal of having operating synergies and cost synergies of over 425 million. There are no funding benefits or other elements related to the net income. These are pure costs. We have capital synergies, which we have guided on, at 3.4 billion kroner. We have fusion costs in the course of 2024-2027, which we are working with to ensure that we get below 380 million kroner. And then we have invested in five new geographies, Tønsberg, Oslo, Molde, Kristiansund and Tromsø. We will gradually increase the cost of these five investments, estimated at about 100 million. Here the costs will come before the revenues, but in the course of the year, we expect that we will be in place with the years we will have, the locations we will have. Then we expect that this investment will cost a total of 100 million this year, and then we will of course make money on those positions over time. But the point with this light is to show that we deliver very good numbers, despite the fact that we are in the middle of a boom when it comes to setting up a new bank, new underlying operations. And when it comes to underlying operations, we have a clear ambition to be among the best in the class and so on, as we have been historically with the banks. And how does it look historically? Well, it looks like this. If you take a look at this picture, it shows the total loss in the last three years, the total loss in the last five years, and then there is the short history of Sparbank Norway, and the history of Sparbank Vestførdet, which is here. And the total loss in the last six years, if we invested in this paper, has been 159%, compared to the five largest other Norwegian banks, which are a long way behind. And if we look at the total issuance, including the exchange rate in the last five years for Sparbank Norway, it is 260%, while the development has not been so strong for the other major banks. This is what we are going to recreate with Sparbank Norway, and we have come very well started. And why am I so confident that we have started well? Well, I see that there is a huge energy in the meeting between good people in the south and good people in the old Sberbank in the west. This is a picture from the fusion party that I will come back to, which is one of many initiatives to create energy in the bank, already in the beginning. A band made up of people from the former South and the former West, which was entertaining in a fantastic way at the employee party. I also see this energy today, and this energy makes me confident that we will become a very strong competitor, a good contribution to the Norwegian banking competition, and a bank that is also a source of joy for our investors over time, as it has just shown that we have been in the close history. I am very proud of the employees in this phase, where we have set up a new organizational design. A lot of things are new. We have worked very hard to ensure a great legal vision. We have started work related to technical vision. We have been in very big change processes, but we have still taken market share. A big thank you to all employees who also follow this broadcast, because this is no less than impressive. We are the outlay winner on the personal market so far this year. Now we have the numbers for our largest competitors. And we are the outlay winner both on the personal and operating market. With 6.4% growth in the first three quarters of the year. on the business market and a total of 7.2% growth so far this year on the personal market in the first three quarters. A formidable development in a period where the risk would have been great if we had focused internally and not on the customer market. But we have done that. We have done both parts. A very successful legal vision and very good work on the customer market. This promises very good development in the further journey for Sparbank Norway. I will focus further on these three points. A little bit about our banking business. Again, set a little direction for Sparbank Norway, and then I will say a little about which start we have had a little more in detail, apart from what I have already been talking about. Starting with our banking business, our foreign growth is important. Here it is the 12-month growth. It is shown in the start against our main competitors is the growth so far this year, but also on the 12-month growth, we have a very nice development. 9.5% foreign growth on the stock market. If we look at the underlying foreign growth in the established bank, our office network, we see a total of 5.8%. That is also very strong. We also have a nice development on the operating market. We see that the foreign growth is a little lower in the market. Our main competitors have a foreign growth of 7.7%. The last 12 months are also very strong and best in class when it comes to foreign growth so far this year. If we look at the income growth, we have a good income growth on the pension market, as I have said many times before. The foreign growth on the business market will vary a little, all due to appetite and alternative funding, so it is 2.5% in the last 12 months. The income growth on the pension market is different, there we have a very good development with 12% income growth in the last 12 months. The net income has increased, among other things in light of the fact that we have a very nice underlying growth. The net income per quarter is 2.7-2.8 billion kroner, as you can see here. Nice development over time. It will be exciting to follow the net income further. good for our income, that there will not be more rent declines, but at the same time it can take a long time for the next rent change, and we can quickly see increased pressure on the rent net over time, and a certain rent slide through the next period. We believe that we have a very good value proposition in the market, we experience that we can keep the rent net on a reasonable level, and we also have a very good underlying growth, which is to support a good rent net and so on. This time it shows a geographical spread on our external loans. I feel that we have a very good geographical spread on our external loans, which reduces our risk of concentration. We have 14% in Rogaland. We were in charge of Sparbank Invest and a large part of the management in Rogaland yesterday. We had board meetings, met customers, relationships. I also heard from the leader in Rogaland about the trip we have in Rogaland right now. We are going to strengthen ourselves in Rogaland, no doubt about that. We have a nice share of our loans in Agder. Vestland is of course still quite important. Oslo Akershus is increasing and will increase with our investment in Oslo and with the infusion of Oslo Fjord Sparebank. We are moving into Inkognitogata now on December 8th in Oslo. We are in place, we are going to strengthen ourselves and gradually build a position in the Oslo market. Our loans are linked to the sector, business and personal markets to the left of this picture. We are a bank dominated by low-risk loans, a large number of personal markets, an established bank of 55%, Bull is now making 14% of the loan portfolio to the bank, Brage Finans, which is a data company now, 6%, and our company loans are 25%. We can increase that over time. At the same time, there is no doubt that with the growth Bulldar has now, the personal market loan will also influence our foreign books in the long run. Very happy for the fantastic journey Bulldar has had in the last 6.5 billion in loans in this quarter and a fantastic start in the fourth quarter, which I will come back to in a little while. And Bøller has also had a fantastic start in the fourth quarter, as I mentioned. 2.9 billion in increased loan volume so far in the fourth quarter. 6.5 billion in the previous quarter. It's a fantastic growth. 75 billion in loans, i.e. Pt. And our goal this year was 73 billion. So we have already celebrated that we have reached a very ambitious goal for this year. which was 73 billion in loans on the Bulda concept. Very proud of that group too. They work incredibly well. There is no more offensive environment in Norwegian finance than that group in Bulda, and they are a part of Sparbanken Norge, and we are greatly proud of that too. The underlying cost growth is around 4.7%. The cost income is 29.4% in the quarter. If we correct for the fusion costs, we see 28.8%. We have a significant potential to work this down. Of course, it is also very much about revenue. If it is challenged, it will be more demanding, but we believe we will be able to work further down when it comes to cost income over time, when we realize the cost synergies here and especially the technical vision. But at the same time, I experience that this is strong and it is within the goals we have to be below 30 on cost income. If we look at the development in operating costs from Q3 last year to Q3 this year, the incorporation of joint capital management is a part of that. We don't have a lot of fusion costs this quarter. We have deductions on immaterial parts. That's quite a lot of money. It's on the added value that appears as a part of the fusion. We see it as a different practice. We see other banks that do not write off these added values, so if it compares the numbers, it may be an important point to take into account. But 48 million in writing-offs on intangible assets and an increase from the same quarter last year is of course significant, and this is mainly due to the fusion effects in fusion between the South and the West. Then we have the retail business, which varies a little with the activity level. The activity level is higher, so the costs are also a little higher. And then we have what we define as underlying cost growth at 41, which is these 4.7%. So in total, the costs are well over 900 million kvartals. If we look at the top picture, we are a bank with moderate risk, we are in low risk, we are in charge of managing our credit transactions in a good way. I experience that we work very well on the credit area, we work very well with learning on the credit area, we have learning days. We have learning loops, we have a very good regime now on cash test control, on credit quality, on case selection, on credit, on BM. In total, this means that over time we have had low losses and we have had a stable loss development, and we also have that in this quarter. 60 million in Morbank and housing credit, and then we have 13 million in losses in Prague Finance, which now, as I said, is consolidated into Sparbank Norway's accounts. The result development from Q3 last year to Q3 this year is as follows. We have a net income that is increased by 124 million. The supply revenue has gone up by 43 million. Connected business is doing very well. A lot of exciting things are happening there. We will come back to that in the last part of the presentation. Finance is down by 24 million. And then we have fusion-related deductions. up with 43 million, which weakens the results by 43 million. And then we have the overall cost growth of 980 million compared to the same quarter last year. And then we have the deficit almost unchanged, slightly up with 16 million, which means that we have a result for tax of a total of 2.3 billion in this quarter. That was a little about our banking business. Then I will point out a little further. What can one expect related to the development of Sparbank Norway? What can investors expect from the development and drive and ambitions with this new bank, which then delivers its first full quarter in this quarter? We are focused on ambitious goals. We will be a bank that is leading in one-capital-discounting. We have a clear ambition to be over 13%. It is ambitious in light of the added value and the goodwill we have as part of the fund. If we adjust for the goodwill added value and the reduction of these added values, we have an ambition to be over 15%. It can be far in comparison with our old goals in the old west at 13%, so that is high ambitions. We have relative goals in parentheses here. Then we have an ambition that we will be below 30% in exclusive fusion costs. Now we are below 30% already, including fusion costs, so we are very pleased with that. Pure core capital will be above 16%, there we are at 18.1, a very solid capital situation, and then we have an ambition of a division rate of 50%. Our cost synergies are targeted at over 425 million. We will second that in line with capital synergies and fusion costs per quarter. The capital synergies target over 3.4 billion. 2.1 billion is already realized. And then I will guide our fusion costs. We have an ambition to be below 380 million. That is ambitious. And that includes both the Oslofjord fusion and the fusion between the south and the west. Quick segue on these numbers, we have a status on the cost-efficiency function, as you can see here, phase in towards Q4-2027. A large part of our cost-efficiency came in connection with technical fusion, so we are in the lead, we see in the contours that we will succeed in this. And as I said, this is purely cost-efficient, we have not taken funding for profit, Other funding elements. I will come in on one example of funding gains that we have in this fusion. It is Brage Finance, where Sparbank Norway now takes over the funding. And where Brage alone wants to have a funding synergy of around 90 million a year, based on historical funding, by taking over that funding. So it's just one example of the gains that are outside of these cost synergies that we guide on quarterly. As I said, we will try to cover the combined fusion costs under 380 or around 380. If you look at the costs that have been incurred so far with the fusions, both Sbarbanken Norge, Sør-Vest and Oslofjord, it is incurred in 24-30 million. 157 million is incurred from Q1 to Q3 in 2025. We estimate 65 million more in Q4. And 103 million in 2026. And then we get a little in 2027. Estimated 25 million That will in sum make us able to cover a total of 380 million with both of these two functions. The capital synergy status is as follows. We have realized about 2.1 billion. We are 1.3 billion again. Just to illustrate what that would mean if they had already been in place with the last 1.3, then our capital coverage would have increased by 0.6 to 0.7. So that is the consequence of the capital coverage with the last 1.3 billion that we have the ambition to realize as a consequence of the gap between the south and the west. As the name suggests, we have clear ambitions with Sparbank Norway. We will cover the big cities in Norway over a period of time here. We are already a little ahead of schedule, I would say, in relation to what we had planned when we were discussing this right before the legal discussion and right after the legal discussion. It hasn't been long since the 2nd of May, but we have already started in Tønsberg. We have a talented leader in the field of employing people. This week we employ a leader for the investment in Molde and Kristiansund on the business market and the personal market. Reimon, who will lead the investment in Tromsø, is in place. On November 1, he has already been part of his first leadership meeting in the bank. And then we will establish ourselves in Trondheim when we find the right people to lead that investment. So we are well ahead of schedule and what we had planned when we took Sparbanket Norge name. At the same time, they want to take some time to get people in place. They are the right people, we do not have a bad time. We are interested in finding the right locations for a couple of these places. In Molde and Kristiansund, for the first time, we are going in together with Bari. It looks very good. It is a cost-effective way to establish itself. So we are in a very exciting development and I would also say that we are well ahead of the plans we thought we would have when we took the name and we sat and discussed the visions for Sparbank Norway in an early phase. What does this expansion mean in terms of growth goals? We have said that we will achieve an annual growth of between 6 and 8 percent, including geographical expansion. When we look at our growth numbers, we are above that on the personal market, including bulls, and we are slightly below X bulls. it is the new geography that will lift us up to the interval between 6 and 8. If there are very big changes in crop growth, this could of course be easy or difficult to realize, but with what we see in crop growth now, this is our level of ambition. The business market. Then we will rise to between 8 and 10. We are at 7.7% in the last 12 months, so it is not far up to this interval. When we get started properly in Oslo and the other geographical locations, then we will, I think, manage in this interval, given that we do not see very big changes in the market. Bølger, we have said, will have 100 billion in foreign currency at the beginning of 2028. We are also very well in line to do that. And then we also have key target numbers for our most important and largest product companies. From there it will of course help that we get these seven fire boxes that we are going to come to in the future, where we have the ambition to have over 6 billion in annual premium stock before the end of 2028. In this quarter, we adjust our goals a little after a strategy discussion in the Board of Finance from 10 to 12. We believe that we are well positioned to manage over 12% growth in the Board of Finance annually further, so a little adjustment up there. And then I will second our goal related to over 34 billion in AUM in Borea at the beginning of 2028. All these goals are also well within the range, we think. We will succeed with growth targets, and this without structural growth. Structural growth will eventually come to the top, but we will succeed with these growth intervals, and we want to be a bank at the beginning of 2028 that has a loan in the size of 620 billion, and of course a management capital that is much larger than that. Then we are an important national bank challenger. That's what we see ourselves as, a bank challenger. A bank that will challenge strongly in the national market by having a very strong local location. I see many trying to say that we will become less local because we become national. It does not make sense to think that we will become less local in Ettene, because if we establish ourselves in Molde and Kristiansund. Our perspective on this is that by becoming national, by getting a greater force, we will also have a stronger footprint locally. So we will not become less present in the Sognefjord, because if we also get an Oslo office, rather the opposite. What we are going to work with to achieve the goals that have just been shown is this simple strategy picture. We have a strong ambition to become Norway's largest and best savings bank. We have three important long-term goals. We will be among the best banks in Norway in banking, as we have been historically. I showed the total loss in the last three years and the last five years. That's the point. We will have customer experience at the top of Norway. There we will move forward in connection with both the development of the digital space, but not least the experience in our offices. We have no plans to put down an office. On the other hand, we have significant plans to establish an office to fulfill the vision of Sparbank Norway. We will be among the most attractive competent people in the Norwegian financial industry. We are working on this right now, especially in leadership development. There won't be a better place to work if you want to develop as a leader. And I'm going to get into the program we have in the next 10 months, linked to lifting leadership, building culture on record time in the new bank. We're going to build some positions in the next two to three years. We're going to build a land-spreading strong brand and we're going to be present in some of the biggest cities. We will have a strong product platform as the basis for long-term alliance independence. I will also second that in the last part of the presentation. We will be an attractive consolidator in the Norwegian banking sector and build a bank on strong banking values. If anyone is wondering why we are so interested, To debate the Sbarbank election, it is as follows. We believe that the most robust starting point for a long and happy life for Sbarbank Norway is through the single capital model. We saw how it went with the bank that in 2002 was Norway's largest Sbarbank and Norway's third largest Sbarbank, Sbarbank Nord, the same as we are today. They disappeared into another large business bank, DNB. We want to build a foundation. on Sparbanken Norge, which means that the purchase market is in the General Assembly and that we can continue with the management structure and the well-known Sparbanken Sør and Sparbanken Vest for 200 years, also into a new era. We want to build a robust foundation for this nationally challenging bank with also strong local presence. So Sparbank Norway gives even greater power to digital development, especially in the business market. We will capitalize on that. We will continue to build on that position. Incredibly proud of the IT environment that Burle Bank is running out of. We said in 2013 and 2014 that we do not outsource IT. We want low complexity in IT. We do not want three-part collaboration that is random alliances. We want two-part collaboration between us and Tieto and Evry in IT. which allows us to build in-house IT skills, business-oriented IT skills, so that we can solve customer problems faster than we would have done in a more complex structure. An incredibly good environment, an incredibly strong start, led by Signe Sundland, who is an eminent tech leader, who will be able to get a lot out of bigger power in Nybank. We have been talking about low complexity. We will continue to be on the front line in terms of cost-effectiveness. We believe that large-scale failures and alliances are greater than large-scale advantages. We believe we will compete well with those who have greater complexity on the cooperation front than we do. And then we have Bulder, who will also be Norway's digital bank challenger. We will be a national bank challenger, and they will be a digital bank challenger. And Bulder, as I have shown, is a fantastic woman in development. I will not go into detail about these Eight areas, but it is our strategic priorities that are crucial to succeed with these positions that we have been in, that we will succeed well with in the next two to three years. I am quite confident that the team we have in Sparbank Norway now, the organizational design, the people who sit in different positions, are incredibly eager to show that we can become a very exciting national bank challenger with a starting point in a strong head office in Kristiansand and a strong head office in Bergen. So that was a little about our direction, where we are going in the next few years. And then I would like to say a little about how this start has been, this first whole quarter, what we have succeeded in, and what we are going to work with a little more in the coming period. We genuinely believe that it is not customer exchange or other things that will be our competitive advantage. It will be our people, our heads, our culture, the willingness to make a difference in practice, the willingness to get the job done. It is an important honor mark in Sparbank Norway. It is those who just fix things, they are the most valuable employees. Those who are good at making a difference in practice, make good intentions for action. And it often starts with good leadership. If you have good leadership, the employees also enjoy it. And if you have good leadership, we manage to make effective and good decisions without much bureaucracy. And then we are busy making these smart decisions in everyday life that make us eventually come to another place. We have started a fairly intensive course of learning development to establish one culture, to establish one leadership in the new bank. We will have a lot of different leadership styles, but we will have a very good workforce for the leaders of Sparbank Norway to make conscious choices in everyday life, make a little more of the right decisions than we would have done if we had not had that workforce on the leadership side. We have had a number of gatherings. We gathered all the leaders right after the fusion in Kristiansand. We gathered all the leaders to point out the direction, a little of the direction that I have been in here, on a gathering we called Horizont, not so long ago. And then we had Winner Praxis this week, which is about lifting up single themes, lifting up the best people in the bank, to share experiences related to key elements, related to good leadership. This time and this week we worked with feedback. How to give feedback in a good way, in a nice way, and in a way where you get through that you genuinely want your colleagues to develop. A very exciting collection. 80 leaders divided into two collections, which is the new leadership body in Sparbank Norway. We have created a very clear program where the leaders, in addition, will put on what they want to work with at the top of this. But we have started all leadership meetings in Sparbank Norway with an hour of leader reflection. It happens all the time. We have winning practice, as we showed an example of, where we train on completely specific topics. We had that this week. This time we will all read the concepts in Good to Great. Started in Bergen, already carried out four special breakfasts there with the leaders. For my part, I will go to Kristiansand at the end of the month to run special breakfasts there. The horizon I was talking about, which is about setting the direction, we have carried out and then we will continue this program for the next ten months. The goal is that in the next ten months we will talk very little about the South and the West and a lot about us. Not only do we invest in our leaders, we also invest a lot of energy in the employees of the bank. One of the most important things we have done so far was the fusion party we had in Grieghallen. A fantastic gathering with 1,200 employees, which I think gave everyone energy, gave everyone the pride to be part of this journey, where we are going to build a new chapter in the banking history, on the shoulders of two great banks with over 200 years of history. And then we have carried out and set up a new organization on record time in a very safe way. We have, from the first of October, i.e. in the course of this quarter, set up a new organization. 100% on all levels. All employees are now placed. I am incredibly happy that we are done with this process. It is often a demanding process. There is a lot of uncertainty in such a process. But I want to point out that the cooperation with the representatives here has been fantastic. Constructively, the leaders have done a formidable job here, so it makes us just crumple our necks, get this in place on record time, but in a tidy way and in a process that everyone in Etterkant has been well satisfied with. That is incredibly important for us. So in place with new organization, important mileage to put pressure on further. And the fact that we have managed to take the market share when we have been in this process, I am greatly impressed by. We are building a very exciting ecosystem in Norsk Bank together with very good foreigners in foreign cooperation. We are a cooperation where it is free of choice if you want to be part of the different companies. We have an open cooperation model. It is not the same owners in the north, Balder, Boré and Brage. It goes fine. I will come back to the fact that we have a very open owner structure in these companies. If it is banks from other alliances or other cooperatives that want to be with us, as we do in Brage Finance now, then it is fine. We have one goal with this cooperation, which is to build offensive, good product companies, with great joy for our customers, and not least for the owners in these companies. A lot of exciting things are happening there. Seven local fire departments will start distributing fire insurance from January 1st. We are now working on getting them on the owner side. We will be able to solve this in a good way. They are very welcome. We are very concerned about strengthening the distribution of fire insurance and the underlying supply of fire insurance. This is important for all banks. Brage Finance has impressed me lately. We have built a national company on record time with good risk selection and good results. The market share for Brage is now 13.2% on solution-releasing. That's great. And then we have a market share on Bilon Nysalg at 7% in Norway now. So this company is developing at record speed. And the most important thing to note is the development of the market share from last year to this year when it comes to solution-releasing. It's a fantastic development. We will continue this development with very talented people in Brage Finans. And constantly new banks are coming to Brage Finance. Very happy for all the banks that are down in the left corner here, who are now with us or coming into Brage Finance. We have an incredibly fine distribution power through all these banks, but what impresses me most about Brage is that two thirds of the distribution comes outside of this bank distribution, so this is a company that is not dependent on these banks, but it is of course very important to have these banks with you, because they give an extra powerful distribution. Brage Finans is basically settled in the big Norwegian cities already. Norway will come after us. They have been in front of us, they have been visionaries, and they have picked up good people when they have had the opportunity. Therefore, we have built a national company that will be important in our national ambition. We will also make a very important move, as mentioned. We will refinance the foreclosure profile to Brage Finans through funding through Sparbank Norway. This will give an annual synergy of 90 million for all buyers. Sparbank Norway owns about 75% of the company, so a large part of this will also be a financing synergy, as you will see again. on the numbers in Sparbank Norway over time. This is the default structure. When this is refinanced, these synergies will be in place. Is this based on historical figures? With the growth Braga has, the synergies will be even greater if it looks forward than historically, because the funding needs would have been significantly higher forward than they have been historically. So here are significant synergies with the new ER structure and through fusion with Sparbank Norway, and that's what we're responsible for here. Borea is in a very strong development. I am very happy for this purchase. I am sure that it is right for Borea. I see the energy it contributes to employees in Borea. I see the energy it contributes to the bank. And a very nice development at AUM. Some banks have not really started yet, so here we have enormous potential. Borea has great funds. We have expanded the fund universe now. develop a very, very good company, and as you can see, AUM is doing very well, and I am quite confident that we will achieve at least 34 billion in AUM by the beginning of 2028 with this development. Eindhovensmegler Norge is also in place at record time. The leadership group in Eindhovensmegler Norge is in place in the third quarter. We carried out a legal discussion on November 1st to build a powerful Eindhovensmegler company in Norway. Here are the 2024 numbers. These numbers will most likely be much better in 2025. We are building a very robust company that will be very good for customers, but not least very good for Sparbank Norge over time. Incredibly offensive management, incredibly proud to see the energy of the first leadership group that the new leadership group had. This is going to be an incredibly good company, and we will lift the supply from where we came from, in the south and west, into the agribusiness of Norway, with the synergies we also see in this area. The synergies that are here, we have not taken with us into the total synergies that we second. We are in full swing in the new market area. We moved into Incognito Gata. 42 employees on December 8th. We are looking forward to that. In Molde and Kristiansund we are in place. Now we are in place both as a person on the business market and as a person on the market there. So that happened the last few days. Tønsberg. Ken Andersen has started. The same goes for the leader on the business market there. It will be very good. Reimond started on the 1st of November. He is actively working on finding our locations. I know he has some exciting alternatives. He has also hired a manager for the business market. It looks very good. We are well in progress. We work fast, but do not rush. We will do the same on the customer side. We will not have a negative risk selection here, because we have too little time to build volume. We will build stone by stone. That is the tradition in Sparbank Norway. We will also do that in new geographies. It works, at least according to the pace we had planned. Finally, I would like to share some perspectives on why I invest in Sparbanket Norge. One of the arguments for investing in Sparbanket Norge is that in this quarter, which we have now put back, we also had a one-capital program for employees. The employees have a strong faith in Sparbanket Norge, the development, and invest their own money in Sparbanket Norge. 85% of employees in the bank own one-capital, and a very large proportion sign on the program, That is the quarter we have left behind us. So why invest completely in SpareBank Norway? Not only do the employees believe in this. We are uniquely positioned for further growth. We are leading in cost efficiency. There we have great potential further. There we are going to second the capital market in the introduction of cost synergies. We have a bank with a low risk of foreign exchange portfolio. Only 25% is business market foreign exchange, the rest is personal market foreign exchange. This means that the risk-adjusted spending on an investment with us should be attractive. We are leading in digital development. We have gained even greater power through this fusion. Now we are going to put behind us a technical fusion in the fourth quarter next year. After that, we will be given a lot of capacity to take our next step when it comes to the development of the digital field, especially in the business market, so that we can follow the customers even better in relation to what we have done when it comes to increasing the biggest engagement. This is also mandatory when it comes to digital services in the business market, and also to a greater extent for larger customers. Bulda is a jewel in Sparbank Norway. It obviously has a high value, an important element that we will develop further. Bulda is ahead of the plan, both in terms of revenue, marginal revenue, and not least in terms of growth, as I have shown. Vi har et veldig sterkt samfunnsseierskap med 60% samfunnsseierskap. Det gir betydelige midler til gaver av kundutbytte, en styrke. Hvorfor har vi 60% samfunnsseierskap i Sparbanket Norge? Jo, fordi både Sparbanket Sør og Vest klarte seg uten statlig hjelp. in the mid-90s during the banking crisis, which makes a lot of the original social capital intact in Sbarbank Norway. It is a great value for all our interest groups and gives a robust starting point for building something sustainable and long-term around Sbarbank Norway. And not least based on traditional savings bank values. So I think getting better at working with performance culture, culture, leadership, I am quite confident that we will get very far in these ten months that we have defined, where we will become a big we. We work very well with creating a shared culture, that people are very proud to be part of this journey and this group. I am quite sure that we will succeed in that, so that we will historically succeed in building a performance culture in the previous Sbarbanken Vest. And then we want to be among the best in single-capital transfer. We have high ambitions. We have high financial goals. And when we deliver well on target in this breaking time we are now in, I am quite confident that we will deliver well also in the future. We are in line on the synergy side, both in terms of capital and costs. And we have a pretty good roadmap, I think, in terms of creating values, both through growth, but not least through good banking. So that was the last glimpse of the process. You can still send questions to this e-mail address, and Brede will follow along during this last part of our presentation, which is a question and answer discussion, where I will invite Brede and Hans Olav up to me, and then we will take some of the questions that have already come in, hopefully.

That's what we're going to do, Henrik. The first question is, because in a quarter where the bull grows over 6.5 billion, it is natural that the question is also about that. And what we have received a question about is that the target was 73 billion at the beginning of the year and 75 already at the beginning of November. What do you think about this target in the future?

I think that we hold on to the growth target we have next year, which is around 10 billion. And then we will come out higher this year than we had set. It's very exciting. It's a fantastic statement that this value proposition that Buldar has stands out incredibly well and that we are scaling much better than we did earlier in the phase with Buldar. We have not managed to take care of the traffic in the same way as we do now. We have developed a new credit tool that makes Now we can take advantage of the traffic we get in these trigger periods, for example with rent changes. So it is difficult to estimate, but of course with 2.9 billion growing so far this quarter, we will grow well in the last two months as well. And then I think the market can expect that the growth target for next year will remain the same, and that is on average 10 billion.

That's good, that's good. On the financial side, on your capital market day in August, you talked about that Bulder had delivered better results than in your forecasts due to the impact side. Are you worried now that the impact magic is starting to fall quite significantly here in Q3 for Bulder?

Yes, so a drop in the supply margin would not hit Bulder Haarest, to put it simply. There would be many other parts of the business that would be more influenced by that. I don't think that will be a big problem. We see that right now we are at pretty good prices. I'm not sure we would have had to be So I think that we have a very robust starting point. We will give them room to grow into the guiding we have done on the marginally calm. And right now they are a little over the marginal one-capital throw that we have guided on. And that means that it is a good trading space for bulls to grow further. within the framework of the business case we have given them. We are very concerned about giving them space for action within the business case that we have also guided on in the capital market, and what space they will get. And I am quite confident that they will succeed both with growth and not least with the marginal one-capital transfer that we have put there. And as I said, there is space for action within that, so if it were to be affected in any area, they are still within the framework we have set for them, and it looks very robust, if I may put it that way.

One of those who sent a question noticed that there was 13% calm on Bulder in Q2 and 12% in Q3. Hans Olav, do you have more knowledge on that?

We have received a risk-weighted gold that hits Bulder more than the rest of the bank from July 1st. So that means that the margin of peace, considering that it is 25% risk-based, is at around 12%. And we try to see through that. It is not given that the risk-based floor is maintained. So in the guidance we have given to Bulder, they will reach the salary goals they have set, provided that the risk-based floor is met at the time the goals are set. That's what we guide Bulder on.

That's good. While we are on capital, many have noticed that the capital coverage is stronger than what has been seen. Can you give a little more color to what has happened in this quarter?

Yes, and here comes the risk factor yellow. From June 30 to July 1, we get a drop in pure core capital coverage at 90 basis points. In the course of the quarter, we have a significant return on investment, which has helped us up again. We also have a certain relief from the commitment of the business market, which takes down the average risk value in the business market, plus that we have generally had a good risk value development in the business market. So we experience that a pure core capital coverage of 18.1% is a good sign of strength where we are now.

That's it, that's it. And a question about capital, remaining capital synergies are 1.3 billion. Do you have a timeline for realization of these?

Yes, we are very concerned about trying to get a clear timeline on what we are doing. Much of that will come with a request for advice on the conversion of the business market portfolio to IRB. We see that Sør-Norge has received an answer to that request after about a year, while DNB has had to wait significantly longer on the S-bank portfolio. We hope and expect that our target treatment time will be more similar to Sparbank's in Southern Norway than DNB's.

Cross your fingers for that. Jan-Erik, BM growth in the quarter and so far this year. Many other banks report zero or negative growth. What makes Sparbank Norway deliver such good growth to business customers?

I think that one of the biggest strengths of this fusion between two big banks, or strong banks, south and west, is the strength of the value proposition we get towards the business market. We are going up significantly when it comes to the biggest engagement. We want greater power in the development of the digital space. We are in a development in the business market that is extremely exciting. One of the greatest potentials for Sparbank Norway is to strengthen its position in the business market. We have a very good exit growth. I have experienced that the name, the reception of Fusione has been very good in the business market. And now we have a 12-year growth of 7.7. I see considerable potential for it to become even higher. We have a single market area where we will rise, where it is obvious that we have to work a little more to get value proposals in the new bank. So there we grow very well. It's about fusion, it's about strengthening value proposals, it's about very good work in the business market division over time, good at working with prospecting. We are very excited to see that in some environments, we have not lost a single year's worth of operating markets, especially operating markets. There are almost no people who have stopped with us because they want to be on that journey. So the strengthening of operating markets in Sparbank Norway is very visible in the contours we have in relation to this fusion. Very happy about that, and there we came to become a bank that is much tougher to compete with in the long run, and it is an important part of our social mission as Sparbank is also to support local business, and I think it will only get better and better, so we will see a nice growth over time, and this is just the beginning.

The best jettekam, let's say. Good growth also has net income consequences. Hans Olav, we have had a question on What are our expectations for the interest rate network further?

We have had a very good development in this quarter, so we are very pleased with that, with an increase of 1.8%. We have had an effect of falling Nibiru and good growth, which is slightly affected by margin sliding. But in total, it has been very good for us. In the numbers we present today, there is only a very small effect of the interest rate change that happened in June, and still no effect of the interest rate change that happened in September. Five-sixths of a change in interest will be seen by Q4. That is the first thing we want to say. What is positive for us is that we have a more dampened expectation for interest-settling now. That would be more positive for our interest net expectations than we might have thought when we were here three or six months ago. There are also some regulatory changes that will affect us. We want to have a return of around 50 million kroner per year from 2026, linked to the tax withdrawal account rule change. Plus, we believe that the introduction of central bank certificates will help NIBOR to pull the slitter up again to a more normalized level, from a relatively low level as it has been in the past. So we expect that we will have to work hard to maintain and increase the net income in the future as well, but a more reduced expectation of income changes makes us a little more positive now than we were maybe half a year ago.

And then I can add something, very important what Hans-Olof is referring to, but it is so that we have chosen not to second on the effects linked to net income by fusion. But I was pointing to 90 million in Prague in historical figures, most likely more in the future. We have obviously seen that, especially internationally, the savings market in Norway sounds good when it comes to getting money. There we obviously have synergies in relation to what the South and the West had for themselves earlier on financing costs. We also see that when it comes to our liquidity relationship, we will be able to pick up some. So we have a lot of things that will affect the net income, so we have chosen not to start seconding, because it can quickly become a little creative, but there is no doubt that there are significant effects there. So it will be to counteract a little of what Hans Olav has been talking about. And then we could have maybe started to second it, but I think it would have been difficult for the capital market to calculate this and what spread defects we are counting on. So we have chosen not to do that, but keep the hardcore costs on synergies and capital on synergies, but we could have done that too. So it is important to take into account that there are some that are on the other side.

Correct.

And then we will grow, of course.

And about costs and growth, another question on expansion costs. These 100 million you are now talking about in terms of new markets, is this a number that reflects your ambitions on slide 22, a little later in the presentation, or should we expect more costs, for example, related to the Trøndelag expansion?

Yes, that is a very good question. In the main this is the cost with a little margin, connected to the five offices that we were talking about, and with full effect at the introduction of all year's work. And then comes Trondheim in addition, and then we are at the beginning of the thinking there. We have people on the ground there already, we have Factoring Finance that has a total of 20 year's work there already. So we look forward to establishing a very exciting ecosystem. But again, be careful that this is about people. We are extremely aware that this is about good people and very interested in spending some time to find out who it is who can be involved in the investment, as we have done in Oslo with Ariel Andersen, who I am very happy to be a part of our team and who will also be involved in in both Tromsø and Trondheim, so he should be strong in there. But it's a bit about timing and a bit about people, but long story short, these are the five offices with a bit of headroom, and Trøndelag will come to the top of that.

While we're talking, there have been some more questions. Bulder. How do you feel about the competition in housing loans today, given that S-Banken is also more offensive? How far down can the margins come, Narek?

At least now we feel that we are very well priced, we are well competitive. And it is also the case that we should not speak about the interest market, so I do not want to go so far as to mean so much about the margin. But think very simply that we are well priced now, we are competitive, and I also think that no one has a more similar cost structure than Bulder in the Norwegian banking market. So when it comes to competing on the margin, no one can beat us. And we actually run Bulder on a marginally basis for just over 50 years, the same as we have had for a very long time now. And the credit tool that Bulder and the tech environment in the banks have developed, which we have called Hand på rattet, is a project that makes Bulder scale in a completely fantastic way without us raising the costs. So I am quite confident that it will be difficult to compete with us in terms of underlying cost structure.

Yes. We also have a question, Hans Olav. What are the cost synergies that are now rapidly emerging? And can you give examples of what in a way creates the difference from Q3 to Q4?

Yes. The big difference between both Q2 to Q3 and Q3 to Q4 lies in the annual production reductions. Towards the point we are heading towards in January 2025, we have some around 50 years worth of brutto down, where we have used approximately half of the years worth and invested in new market areas. So the development we will also see from Q3 and Q4 will largely be years worth, which per now lies with a deadline, or which has said yes to a voluntary action package.

So it is important to add that we are in the process of becoming a very good cost culture, so we have had a timely transition of all agreements, which you, Brede, have a lot of respect for. So we gradually see that we have also had a significant effect on the inclusion of other agreements than Tieto and Evri, which come after Teknisk. when it comes to cost synergies, and we will continue to do that. So there is also an element of that in what we gradually bring in of synergy effects.

Absolutely. That's right. I understand a new question. I understand it's difficult to answer given the uncertainty, but are you planning to share the customer exchange for next year? And do you get any signals on when the proposal for selection will be processed?

Yes, it's almost like, don't get me going. But we are extremely concerned about building a national savings bank, focusing on the value of the savings bank. We are quite confident that there is a strong political desire for our own capital to exist and be attractive. and experience that there is positive development in that direction. Now I have also had a dialogue with European authorities, which I think is good. So we plan for the special features that the savings sector has today, we also want to have further. I do not see for myself that it is enough thought through what the consequences will be if you are left with a private equity proof. with only drawbacks and only advantages, or only drawbacks with one-capital-wise, and it's only advantages when you go to the stock market model, then one-capital-wise will be a rarity, and it will also be very difficult for the smaller banks to get capital in one-capital-wise, because it's less attractive for investors, and it's not like the smaller savings banks are super attractive when it comes to getting money, so then they want to take the easiest way. So this will have great consequences if it is implemented. I think it's starting to sink in for those who are going to invest in this in the end. So I am optimistic, and we are definitely planning that the framework conditions we have today will also apply in the future.

Then we will take a concrete surplus disponibility on Q4, I think.

The last question for today. What do you think about the offer to look at the surplus account in the market? Do you think this will result in lower surplus margins?

It's impossible to answer. I think I should be very careful when talking about the conditions. And there is no doubt that part of the debate that has been around this topic has been impressive. There are a lot of things that I think we as a bank could have done better. So I think I'm satisfied with that.

It was supposed to be the last question, but I see another one coming in. Hans-Ola, you have it. What is the cause of the dramatic drop year after year for the results of the Q3? Does this trend continue in Q4?

Well, it's... If you look at Q3 2024, it was a quarter with a very high capital inflow and a very high capital inflow at 21.4. So that's both the capital inflow and a particularly good quarter in 2024, which is the cause of that decline. For the old Sbarbanken Vest. That's right, for Sbarbanken Vest. And that's Sbarbanken Vest, or Svegg's result per capita, which is in 2024, of course.

And there is no doubt that our ambition, with the goals and the guidance we have given, and the future prospects we see, we are just now in a time where we are investing quite heavily, while we have not received the synergy effects fully, either on capital or on costs. I am quite confident that this will be an exciting journey. We are right now in a situation where we both have fusion costs, but at the same time we have not had the effects. And then we invest quite a lot on new geography that we did not have the revenue for one day. So right now we are in a time of disruption. That is what we have tried to achieve now. And I am quite confident that this will also be an investment for the old owners of Sparmonken Vest over time.

Good. We'll let that be the last word, Jan-Erik. And with that we thank us here from Mediasit in Bergen. We wish you all a nice day ahead and a good weekend when that time comes. Thank you. Thank you.