Pareto Bank ASA

Welcome, everyone. Welcome to the fourth quarter of the year. We start with the main features in the accounting. After that, the bank CFO, Vegard Toverud, will give us more details. Finally, I will give a status on our business areas and tell you a little about market views. We are happy to answer questions. Finally, for those of you who participate digitally, you can send questions to the chat. Pareto Bank received a tax return of NOK 675.6 million for 2025. The result was a decrease of 2% from 2024, as a result of a reduction in the volume of loans by 9% year-on-year, and higher loss costs. Self-inflation after tax was 12.4% and was affected by both the loss costs and a strong solidity. Several of the bank's property customers are still experiencing demanding times. This also means that the loss cost ended at 0.89% of net payments last year against 0.65% the year before. In the fourth quarter, there was a large increase in the loss costs, and this was mainly due to several commitments within housing development. the operational efficiency was still high, expressed through a good cost percentage. This also means that in addition to good cost control, the costs are reduced because we have a model for surplus distribution that is directly linked to profitability. This means that lower self-inflation contributes to a lower bonus salary, and thus also reduced personnel costs. For the first time in the bank's history, the year's result was lowered compared to the previous year. The result was 2% lower in 2025 compared to 2024. We delivered 676 in the result last year, compared to 687 million in 2024. The annual results reflect the challenges that several of the bank's housing development customers still experience. On the basis of the decline in loan volume and the strong capitalization, the bank's board proposes an exchange rate of 8 kroner per share, corresponding to 98.4% of the result the shareholders arranged for last year. The proposed exchange is in line with the bank's exchange policy, and must share at least 50% of the annual results and surplus capital. Capital discipline is also important for us, and the exchange proposal also naturally follows this. At Pareto Bank, we are long-term and building stone by stone. This has created values since the establishment in 2008. Now, the corresponding 94.50 kroner per share is divided between an accumulated exchange rate per share of 26.90 kroner and recorded values per share of 67.60 kroner. Considering the exchange rate proposal for 2025, the accumulated exchange rate per share increases to 35, and the recorded values per share are reduced accordingly. Then the main attraction for the forecast in the fourth quarter. Result after tax was 119.7 million, and that amounted to an own capital after tax of 8.3%. In Q4, net income was 293 million kroner, and the total net income ended at 18.8 billion kroner. The total net income was down by 209 million kroner from Q3, as a result of expected loan exemptions in terms of housing development, business and shipping financing. In addition, we had access to fewer loans, which meets our requirements for profitability and risk. Nevertheless, it is worth noting that the average loan volume in the fourth quarter was up by 0.4% compared to the third quarter. We got a significant increase in the downloads in the fourth quarter. These made up a total of 105.5 million. The individual downloads increased to 70.9 million and were linked to several engagements within housing development. In addition, we found losses of 30.4 million, and the findings were mainly linked to one competition within housing development. With this, I have given you the main features of the annual and part-year activities for the fourth quarter, and then Vegard will give us more details. Thank you.

It is natural when we look at the key figures for the last five quarters to start with the debt losses. The debt losses are very high in the quarter, over 100 million, and on an analysed basis we are up to over 2%. This of course puts a big damper on profitability, and is the biggest explanation factor for the one-capital tax deduction of 8.3%. On the other side of the slide, we see a net income relative to the previous quarter. As mentioned, we have a cost order, which means that the bonus depends on the profitability generated by the bank. Since the loan losses in the quarter affect the profitability, this also reduces the operational costs. This comes in addition to the fact that you have a good cost control, and therefore the cost income drops to 17.2% in the quarter. If we look at the quarter up against the previous quarter, or against the fourth quarter last year, the net income is down by 18 million. This is primarily due to the reduction in the volume of loans, but also pressure on margins. Towards the previous quarter, we raised net and interest rates by 6 million. This is because we cut interest rates more than we have a reduction in interest rates. In total, we have reduced... Is there anything happening? Totalt sett så har vi redusert innskuddene våre med nesten 12% i forhold til forrige kvartal. Eller 1,5 milliarder.

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