SpareBank 1 Ostlandet

That was the last presentation of today's last bank. And it comes from the bank that most of you are on the home stretch of the Oslo Sparbank in the east. Welcome to the stage, Clara-Lise Ås, and now it has been Gregel Bolstaf.

Thank you very much. And if you have a regimen to press on, I'm very happy.

A part of the Kostneros project at SMN, you can join. There,

yes. I'm so tall, I didn't see it. I'm very happy to be here today. I must say as Jan Frode that I feel proud to be part of this alliance. And it's really fun to hear both Inge, Anne-Karoline and Jan Frode, together with their finance directors, talk about the banking world, because it's going pretty well. I'm going to go through the numbers for the Sparbank in the east, and we are proud of the numbers we deliver. We have a single-use tax deduction of 14.9%, and there is no doubt that it is delivered across the entire peninsula, from our entire finance department. So we have up on all revenue lines. Remember one thing, we have a slightly lower contribution from these alliance companies, we have lower shares, but at the same time it is a good contribution for us. And we have a lower loss cost this quarter, which I will also get into more closely. I'm going to draw three things out. The tax net is up 3.2%, compared to last year, per form that would have been fused in if it had been totens. So we experience that as a good growth in the tax net, and at the same time it is the personal market that contributes the most. We are really good at broad income. We deliver on insurance, whether it is damage, life or pension, savings and at least the income tax. They have an all-time high on turnover, and it is really fun to see that the version of the three income tax companies to one, gives a strength and strength and a real focus forward. The finance post is not going to be regularly transferred, but the costs, I have to mention, because we have high cost growth. It is also characterized by the cost of the income tax. If we take away .2% of the total of 40 million and 25 million of the fusion costs, the costs will be flat from the first quarter. But we have been working the last year to build the bank further. We have invested in new investments, and we have invested in an even more robust and safe bank, and it is investments that we think will have real effects. We are also working on the growth of private banking, the Drammen investment and the quality of the after-sales. We have done a lot of important work here, and 2025 is also an investment year. The loss is low, as I said, 1 million, it is almost nothing. We have worked well with the portfolio, the robustness of the portfolio is solid. And we, as all other banks say, we want a profit growth and it should be a good case, and we are concerned about it. We deliver our financial goals, we look at all of these, and then there are some who can ask themselves where the goals are in the costs. That is something we will work with and introduce before the beginning of 2026. As part of a new strategy, we will also work with costs. In the future, despite 2025 being an investment year, it is important to take out the effects and get some profit in the long run. And remember, the TOTA and Sparbank version were, at the time, no cost-synchro version. It is to get even more power on the upland side. Here I can say that it is the right side of the coin, I can call it that. In any case, an important part of the country is also the TOTA side. And it is simply to get even more power on the income side, which was the most important driver for this version. So we deliver well on our financial goals. A little about the market, it is probably a strong quarter. We also said last quarter, and it has only gotten even better this quarter. We take market shares, we have a growth outflow that is higher than the market growth, and we take special market shares outside of the old market. And we see that we have good benefits from the relationship with LO, and our professional association offer is among the best in the market. So we see a special growth there. The broadsale guide mentioned, a really good quarter this one, on insurance. Because it gets even more important, which has also been mentioned by several here, that when the interest rates gradually decrease, which is what we expect in the whole market, it is important to show that we are a good total supplier, and that we can deliver financial services that can meet the demand, either by a personal customer or by a company of the same size. So broadsale is important. And these curves are incredibly fun to show. We see a good growth on both the provisional insurance and the income side, as mentioned. The business market, there it is more moderate. And it is exciting to hear the other bank managers talk about that there has been lower growth, because there is also a rise. And when we had a financial expectation survey in May, we saw that there are still more pessimists than optimists in the eastern region, especially in the inland. So of course, here it has been more calm the last quarter. We have flat growth, but it is a good pipeline. That is to say, we see that there are more now who are on their way out of the known uncertainty and uncertainty, and that the desire to invest looks like it has increased, but when they materialize, we do not know yet. But there is more desire to invest in the tax-sensitive markets, such as the food industry and agriculture. So here is an exciting time in the meeting. And then we have a very high customer base. I have to note that it is very fun to see that customers have appreciated our way of driving the bank. Physically stable, really good advisors who know the industry and can sit close to the environment. In addition, we have really good digital solutions that are also developed by the same agency. So we think that we are well positioned when the growth comes back. We are concerned with the development of our financial system, and we have some new investments we have made in the last year. In October last year, we launched a new office in Drammen, it was 25 years ago, and it has gone very well. In May this year, we opened a permanent location on the Dragenestorg, it is called Flagship Store Location, for those who have come to Drammen, a very nice place. And we see that we are in front of our financial plans for Drammen, and it is an important market area for us, both on the personal market and in companies. In addition, we are increasing our investment, we are opening a new office in Lyir, now a three-year quarter, and we are planning the Drammen In 2018, the middle picture is, happy gang outside the Jøvik office, we are building a good regional center in Jøvik. This is an important investment in the upland side of the UN, and we have also a half year plan, established a customer center in Jøvik for the direct bank. The Drammen is a very good place, and we are building a new office in Lyir, now a three-year quarter, and we are planning the Drammen in the end of the year, early 2026. The Drammen is a very good place, and we are building a new office in Lyir, now a three-year quarter, This is an important investment in the upland side of the UN, and we have also a half year plan, established a customer center in Jøvik for the direct bank. And it is really good, because it makes us have a good holiday season in summer, which we have the highest response rate. It is an incredibly good response for customers who call in and get quick help. We are the leaders of customer service, together with Nordnorge, top three. We are proud of it, second year ahead. It is important to show that we are trustworthy to customers, through good services and advice, and we are very happy to see that. Before I explain the word rules, I will talk a little about the strategy work we are doing. We have now agreed on a vision for our companies, which is a little bit out of place. We have got an eastern country, and if someone wondered if we were planning to go to Tromsø and other places, we are not really. We have a focus on the eastern country. We have a simple message, but also important for us, to show a position we have thought of continuing to take. We are already big in the eastern country, and when we fusionated with Bank 1 Oslakkershus, seven or eight years ago, and Toten Sparbank last August, we have got a really good position in the eastern country, and we will continue to be that position. Because we are a bank of the eastern country, and for the eastern country. If you look at how the development has been for Sparbank 1, it is now 70% of our loan, which is outside the old homelands, so we grow mostly outside, and we think that the eastern country grows. The eastern country is big, it is diverse, it is a large and good local community that we are going to be a part of. Remember one thing, Majorstuen is our local area. Tveita, Økaren, Hamar, we are in Lier, we are going there very soon, as far as I know. We are in Drammen, and we are around, up in Tynnset, Kongsvinger, and so on. We are up over 40 places, and we will continue to be the physical place, because we believe that one of the keys to delivering well, and to delivering well in the future, is to be both physically in good shape, really good digital solutions, and advisors who know the industry, and the industry they are in. We have 180 years of experience with the eastern country. We know the eastern country best. That is almost the case. So then it fits well, the word and numbers are left to G. Regel.

Thank you, Clara Lise. So now we have the new term, which means to jump after Clara Lise. But I will go through the numbers, and try to give some information about the numbers we have behind. This is how we start with what is the most important part, the net and interest rates. It is a small increase, quarter by quarter, and we have a .6% increase from the same period last year. I should add that the slides you are seeing now are pro forma comparisons with the same quarter last year, which suggests that Toten Sparbank should have been in fusion, and it is important to have that. The profit margins, there are several here who have said that this is a historically good quarter for profit margins. It is also for us, it looks like you can hear the figure. The profit margins compared to the same quarter last year are .5% up. And there are some very important and fine drivers of that. One is damage insurance, it has been mentioned, it is up 26% from the same quarter last year. And it is not only an increase in the stock market as a result of the premium profits, but it is also a strong increase in the stock market and we also have good profit margins, which follows a low damage percentage in the share of the portfolio we have contributed. Very nice. Then it is nice to pull out the stock market from the -the-year side. It has of course been a hot market, that is also true. What is nice to have is that it is a very nice development in the new-buildings sales around Oslo and Akerhus. Both because it says something about the market in general, but it is also that we have a very good backlog of interesting projects that promise good for the future in the profit margins we have. In other areas, it is also worth pulling out this in the savings area. This with fund provisions, it is flat from the same period last year, but then we should take note of the point that when we have now gone out of, or the ex-totus is out of the IKA system, then we did not get the portfolios from IKA Capital Management. Under the circumstances, we have a growth in the savings provisions of 30% from the corresponding period last year. So it works very well in the savings area, something that is not completely unknown to a savings bank. I think I'll leave it at that. Results from the tax authorities, you can also see on the right side, this is a quarter that is the best we have seen in the last few years. Starting with the financial authorities, the SBA is a financial island. They have a good increase from the corresponding quarter last year, and that is linked to an increase in net and interest rates. Costs and losses are stable and low. When it comes to the totus housing loan, it is a company that is being developed in the third quarter. There, of course, the portfolio is taken into the savings bank, and the savings bank is a housing loan that is our covered bond exporter. So it is nice to have the results from the newly funded NOS with the green East. And in the quarter, you are on the mark in relation to this budget plan, so we also have good expectations. Net and finance. Clara-Lise was aware that in a quarter like this, it would have been nice to have more in both the future and the group above, so we are very pleased with what we actually own in the group, when it has contributed well. 73 million is the contribution from the group into our account. Then there are some more one-time effects here. We have sold ourselves out and made an agreement with the IKA group, which makes us post an exchange and a profit of 60 million in total in the quarter. It has also been worth mentioning that in the other finances, it is about 24 million that is being charged the bank's own hand on rents, and so on, other effects of market to market. If we manage to get the cost of the operation, it is Clara-Lise who is in on that point. We are in an investment period. These one-time costs are considered. 40 million on TET and EUR, 25 on the cost of the operation, so we are sideways from last quarter. Then you should also keep in mind that on the personnel side, we have an increase in the personnel side, which reflects, among other things, the commission's salary as a result of the strong annual tax. So we feel that this is a good cost-effective quarter, and reminds us of the concern cost per cent of 40. The loss cost of the period reflects that we have been through a kind of cycle internally in the bank. We started with the increase in the model, so there was an increase in the individual. Now we see that the individual goes down. We see that the findings are happening. Finally, we have taken something back on the model side. There is a good migration in the portfolio, and there are also adjustments of central macroeconomic factors. Finally, it is the few known engagements that have now been through observations, so that in the quarter we have not identified new problem engagements. That is in a way a good feeling. The last side, capital development, implementation of CRR3. It has given us a very good effect, in addition to the contribution from the period's results with a core of 18.3, so that is very good. We say that we expect, with today's balance, an effect of about 1.1 in reduction, when the new curve of the IRB risk-weight on housing loans is implemented in the third quarter. So there you have it. There are some minor effects than we have previously communicated, but nevertheless, the expected effects of the rule changes are marginally positive for the bank, and thus supports both growth and exchange capacity. With that, we will now open the HB. We have time for some questions.

We have

time. Thank you. Thank you. Herman Svall from Retro Securities again. On this, the cost goal, which you will come with next year, do you think there is any reason for it to be less ambitious than some of the other banks that present here, at least at the mortgage level, over time?

The answer is no. There is no reason to be less ambitious, but we have to think about where, again, some effects take some time to come out in life. Fusion effects can take some time, as you mentioned. So I think we should have respect for some things taking some time, but we should think that we should be ambitious too. Or would you say something else?

I think that's a very good question. I think that it should depend on the strategy. The board of directors is in the hall, so I think it's very good that you say that we should be ambitious. But it should depend on the revised strategy. That's central here. Thank you.

Also on very strong production costs, which obviously sells a lot of insurance products. And think about the new sales and premium growth and profitability on the stocks that have sold. And think about the profitability component, but is it like the one we see now reflects the damage results that have been through the year and Q2 in particular? Or are there some lag effects that cause some quarters to come out and get even better in the future?

There is a lag effect and there is a sliding average over time. I see a little bit of a threat, I know. So it's not just the results now, or the quarter now. Thank you.

But it will help that there have been lower damage percentages, and there has been a better increase, but we also have a growth rate. So it's clear that that has been positive for us.

We'll count one more question.

My name is Jens Strunning. Since I've worked as a tax adviser, I thought that all of you who know the Norwegian Board of Directors so well, you should write a call to the European Commission and ask and explain what damage the tax form has on the Norwegian Board of Directors. If they are together to do it, I think they might have had an effect, because I did it myself, and then I got a hard-picking answer back. And then you can explain the big things, that other taxes will come instead as more value-added tax on profits and tax on excess instead. And we are concerned about the Norwegian Board of Directors, because you know the Norwegian Board of Directors best of all, and also what is the Norwegian District.

Is

that a bad suggestion? We

can say that the Norwegian Board of Directors has taken responsibility this week. It's good. Just hang on to it. Thank you for that. Thank you, Geir Egel, thank you to Clara and Lise, and congratulations on your achievement.