SpareBank 1 Ostlandet

Good morning, everyone, and welcome to Sparbanket Østlandet's quarter presentation for the first quarter of 2026. I hope the coffee cup is ready. It's a nice talk we're going to show today, and I can say that we think it's going to be a good start for 2026. If you have any questions, you can send them to investor at sbnostlandet.no underveis. We start the year with a good underlying business and have an annual capital return of 12.4%. This includes an operating budget of 80 million. If we exclude that, we are at a little over 13.2% for the first quarter, and in line with our goal. The net income is down this quarter. We see, like all other banks that have put forward, a demanding competitive situation. It is good for the customer that there is high activity to attract the best customer, and we see it both in the personal market and the business market that they are pressing the margins down. On the personal market we have a good growth, while on the business market it is still flat development. The area that we are particularly proud of is that we manage to be a total supplier to our customers. Broad income is up 8.7% from the same quarter last year, and we are very pleased that it is all over the line. There is insurance, there is funds, there are various savings products and pensions, and this is a development that is both part of our strategy, but also that it makes us a little less sensitive to interest rates, that we manage to get more income from other types of services. In terms of costs, it is still a little higher than we want. It is up 2.9 percent, and Ger Egil will go through the details later. But of course, there are also fusion costs, and action packages that also raise costs. Underlying 2.9 percent growth, and we are working with a number of measures that throughout the year will give a full-year effect in 2027. Take a look at the rules. They are moderate this quarter. What I can say is that our portfolio is solid, it is robust, and we do not see any special new industries or demanding conditions. There is still some freshness from the construction industry, but there is also a fairly solid and stable development of the portfolio. But we look at our long-term goals. We made a adjustment in the fourth quarter, where we set a cost goal. That was the first time in a couple of years we had had that. At the same time, we maintained the other goals that we set changes on last August 2024. Our most important goal is profitability. We want a long-term profitability of over 13%, and that's what we have to work for, both on the income side, the cost side, and on a smart balance management. In terms of costs, we have a high quarter, 48.2% for the company. Of course, the work package obviously affects the amount, but then working with measures will be important in the future. The exchange rate, we have a goal to deliver over 50%. We have divided out 70% now in April for 2025 results. And in the 17.8% of our solidity goals, it is actually included an investment of 70% on results, which means that we are the solid. So we are ready for more growth when the market takes a look at it. And when things are going well for the bank, we have the opportunity to give back to the owners. As mentioned, 12.70 kroner in 70% of the exchange rate that was shared with our owners in April, falls well behind on the two foundations that own large parts of the bank. Hedmark, a 44.46%, received over SEK 767 million in spending in April, and is giving out large amounts of funds to society in the Hedmark area. Toten Sparebank, where the inheritance is transferred through the Toten Foundation, also received large amounts through its 8.6% ownership, and divided for the first year as owners, 40 million. This is actually three times the amount Toten Sparebank gave in gifts, which the foundation can now give out based on donations. the opportunities they have, and here there is a lot to take from, in means that they can give back to the general public. And having a long-term ownership through the foundation, we think is an important part of our social contribution, and we are very happy that they have such a position, and give back through their ownership. In addition, we provide customer exchange. This is probably the most discussed matter in the last few years in the sparring market world. We believe that providing customer exchange is a safe way to provide support to the general public. For the general public, what does the local community and the general public consist of? There is no doubt that our customers are both personal customers, businesses, law and associations, and giving back through customer exchange means that we are very safe. An example on the screen is Røvnes and Årnes sports law. They must also receive customer exchange, so giving back means that we are a good supplement in addition to the funds that the foundation gives through its ownership. 582 million kroner was divided out on April 22nd. For a customer who has a loan of roughly 2 million kroner, this makes it about 26 basis points, so we think it is also a good contribution to Barsat in this share. At the same time, our social engagement is more exciting than just giving results to owners and customers. It is through the privilege, through sponsorships and gifts in a number of different activities that we also contribute to. Sports, talents, young, old, in all types of stocks, art and different types of arrangements, we give means to. And it can be wide sports, it can be at schools, and it can also be elite sports. And at the same time, they are not just the type of sports we give to, a lot goes there, and talents, and width, and elite, but we also give to other types of events, such as Ung Plattform, which is an initiative that connects to getting even more young people out in the working life, especially in the Oslo area. This is an initiative created by Ildsjæler in Oslo, and we are very happy to support this knowledge summit that was launched a couple of weeks ago, where it is about mentoring, career guidance and advice to young people, so that they get work training and the opportunity to get out into the work world. To get more people who are outside of this in, we think is an important part of our social project to contribute to. And at the same time, when we are going to develop Østlandet, that is our vision. Yes, we provide support through social media to various organizations, but we are also busy building a safe economy every day. We do this through, among other things, young entrepreneurship and participation with students in schools, and talk about a safe economy and safe and good economic choices. We know that this is important to prevent unemployment. In addition, we are actively supporting initiatives such as SAFE, the Anti-Fraud Center for Excellence, in Jøvik, in cooperation with the Sparbanksstiftelsen Hedemark and NTNU. This is an important initiative to combat the digital divide. At the same time, I would like to mention that we have a good example of the actual removal and prevention of dandruff in practice. For a short time, we experienced a customer who called the customer center and would like to transfer money. It was an 80-year-old man who then took a phone that seemed a bit special. Marius, who is in the middle of the trio to the right, and called our internal swindler department. And then the phone was quickly sent to the Oslo Police, and the swindler was actually attacked in action a quarter of an hour later, at the home of the victims. So it's a fantastic foreshadowing. So it's great to have brave people, so it's about learning and building competence internally. We've worked a lot with that, and this is a good example, and it gives effect. So building safe, good local communities and being there through the free will, social media, gifts, sponsorships and different types of initiatives, we believe is an important part of our social mission. In addition, we are concerned about being physically present, because it is also about developing the areas we are in. And Sparbank in Østlandet, we actually have the most physical branches in Østlandet. We notice that customers still have a need and wish to be able to talk to an advisor. Yes, we have to have the best digital offer as well, but the combination we can offer of being able to have proper physical meetings when you need it, we know is good, and something that makes customer satisfaction very high. In January, we will adjust something on the office network. And this is what we want to be aware of in the future, to see where we should be, where we should grow, where we should escalate, and I think there will be more exciting investments in the future. And at the same time, we adjust the customer offer so that we are even more sharp. Finanshus, there you meet the breadth of our offer. There you meet financial advisors, customer advisors, many offices are still drop-in, other places you book meetings, and you also have business advisors, and you have accounting and business partners, and finance. So there you have a full-scale financial institution. In addition, we have an advisory office. There it is a completely ordinary bank office, we can say, where you can meet your advisor and book meetings. And then we have a number of offices that are now only open on specific weekdays and when meetings are booked. So we will re-evaluate this over the autumn and see further what kind of development we will have. But I am also looking forward to opening new offices in private banking here in Vika for the autumn. So exciting things are happening in the future. So we have also received support from the board to look at an even more powerful main office at Hamar. And I have been given full power to negotiate a contract with Hamar Science Park, where working even closer to research and development will be an important part of the interaction effect we can get by moving into Hamar Science Park. It's a few years ahead, but we think this will be a really nice meeting place, given that we will agree on the agreement, and we think so. And then we will have a smart cancellation of the bank quarter where we are. So this will be exciting. It is a future-friendly workplace, but focus on development for the region. So what we do, everything we do, both to create good results, to provide for owners, customer exchange, and the freedom and social media to the different regions we are in, and our physical location, is with us to develop Østlandet, and that is our vision. We want to be there and build Østlandet as a region, and it is multifaceted and very diverse throughout Østlandet, and we are proud that it is our version. So before I go on to say a few words about Tala, I will say a little about the macro picture and a little about the business process. The macro in the Baltic countries is gradually improving. It is also more volatile than for Norway in total, as we see in the graph to the left. There is no doubt that the interest-sensitive sector in the Baltic countries is influenced by the time we are in. With interest rates yesterday, we know that there are still a number of companies that are now waiting with investments and new investments. So we will be there when the market comes to a standstill, and otherwise it is a good activity on the used housing market, while new buildings are very low. But if we take the personal market, it is a good drive. Towards the end of 2025, it was calmer, and we entered the year with some calmer pace, so we did some offensive measures at the beginning of 2026. The month of March was very good. We see it on increased market shares, isolated on panther housing in the Oslo area, which is much higher than what we have as an underlying market share, and moreover a good activity level. So the month of March took the quarter up again, and the entrance to the second quarter is very good. There is strong competition. We also get help from the L.O. relationship. We have a very good ambassadorship together through the L.O. favor benefits, and we see that large parts of the growth are L.O. members who are also total customers with the broad range of services we have. At the same time, there is margin pressure. As all banks report, there are demanding times on margins, and we are concerned with broad sales, as I mentioned earlier, to get even more services delivered to customers and to work towards profitability. In the business market, retail is also important, and funds, savings and pensions are important elements that our customer advisors have for our business customers as well. There is a foreign portfolio that is quite stable. We see that the new growth is dampened with payments, and we have a high competition, so that affects the margin picture. At the same time, we believe that we are well positioned to take more growth when the market comes to a standstill with the high customer satisfaction we have. We have an offer with both personal advice, i.e. direct contact persons and a good office network, and in addition a business center that handles the digital events and an efficient and good business market. But broad revenues are also important here, and both the personal market and the business market deliver well. I will also highlight private banking as an example, which has really taken shape in the last quarter. A lot on funds, very good growth of new customers, and volume. So that's fun. At the same time, insurance revenues have increased a lot in the last few years. Yes, some are premium revenues, but there is also stock development, which for us has been positive in numbers throughout the last quarter. Then there are costs. There is no doubt that we are actively working this year with a number of measures. It is both on technological improvements. How can we use artificial intelligence, automation and process efficiency? Because it is actually an efficiency battle. How can we use the tools to work even smarter and more scalable? In addition, we look at processes and what we can cut out. This with fewer time zones is not everything that can be solved with technology. Much must be solved with work finally. In addition, we look at purchasing processes and everything from consultant use to marketing to locations and so on. And then we communicated in the fourth quarter that we were going to be about 70 years less in 2027. And the action package that we mentioned initially, which we put 80 million more, there it is, it is about to solve between 50 and 60 of those years. And there is still a little movement in the numbers, and at the same time we see for ourselves that the remaining decline will occur through ordinary, what should I say, and regular departures through pensions and so on. And then we will continue the employment stop, where there is a very narrow reach to get into the bank. At the same time, we want a good working market internally and mobility to build competence. And then it will be possible to invest in simple places, obviously, because we still need to work with our technology and work with artificial intelligence. Then it is time to hand over the floor to the finance director, Gregel, who will tell you more about the details of the first quarter. Here you go.

Thank you, Clara-Lise. Good morning, everyone. I will try to give you a little more detail. Many of the good points have been taken by Clara-Lise, so we will see if we can dig into the text. We start with the results from the previous quarter and the corresponding quarter last year. As Klara-Lise has pointed out, we have some slightly larger effects from the previous quarter to this. Net and interest income has been mentioned. We will come back to that. We do that on all posts. The second is of course this with other revenues. Reminds of that we had a sales profit from the sale of Jungstorvet 5 at 163 million in the fourth quarter. So then you will see it as an effect there. Net revenue from financial investments, come in on the details, something lower than last quarter. There is something that contributes positively as well. It is flat on costs, even if taken into account by the goods packages, while the loss costs are significantly better than in the previous quarter. We also see that the tax effect, naturally enough, comes in the first quarter on the cut-off exchange. Compared to last year, the interest rates show the same picture compared to last quarter. This is the pressure that more people know about now. We still have a very, very good development in production revenues and other revenues. In terms of operating costs, we can see the effect of the consumer goods package, but the underlying cost growth is 2.9% in the last year. We think this is still at a good level, but we will continue to work with it. The key word is nominal kroner. I'll go into the simple positions. The easiest is, as Klara-Lise has mentioned, both PM and BM, growth outlooks, margin loss and so on. On the top level, net and interest rates are down, including the provisions from our credit companies, down 6.4% from last quarter. This is a picture you recognize, and it follows, among other things, the full effect of the last interest rate change that was carried out here on November 26th. And of course, Nibor has run a lot in advance of expectations of interest rates increases now in the last, which has also affected the interest rate around us. Provision revenues are very pleasant to report on. There is a good momentum over a long period of time. If you look to the right, you will see that compared to the same quarter a year ago, we have a growth of about 9%. The sales effect was mentioned in the fourth quarter, but if you also see that there are some seasonal effects in the provision revenues, the underlying growth is very good. We start with credit card and payment. There are seasonal effects in that, so there is something down in relation to the quarter. We expect that year after year, but compared to the same quarter a year before, there is a very solid growth in it. The insurance provision has been made clear. Our bank is a machine when it comes to trading and contributing to the customer getting good coverage in the insurance area. We have a very strong growth in premium income, both at PM and at BM. It is also nice to see that the model is something we are moving out. Take for example DRAM, which is still relatively newly established. There are very good effects on cross-border and insurance in particular. Funds provision. We can see that this is an area where there is a strong growth in assets under management. It takes some time before it appears in the provision revenue, but we know that the level of activity is very good. We see a very strong increase in the establishment of customers with savings accounts. And that binds the customer closer to us, in addition to the credit engagement. So it is a pleasant development, even though the level of the provisions is still relatively low. The property management provisions. A bit slow start to the year compared to last year. Klara-Lise had a slide that showed the turnover of utility bills. It is a bit lower this year than last year. Our brokerage is doing very well in the market as it is now. And of course, it is exciting to see in the future how interest rates and expectations about interest rates will affect the market. But anyway, good to know. Income from the electricity services is a development that is quite stable. We will be very clear that in the first quarter, a fusion has been carried out, the infusion of a larger electricity company, Siffer, which has taken some capacity in the company. So we see that it is a positive sign that they manage to absorb it at the same time as they have a development in income. The rest of the provisions are again compared to the same quarter last year. The fourth quarter was special. The Danish companies, it's nice to bring up Finans Østedalene, they have the highest quarterly results of the time, well influenced and helped by very low loss costs, but they also have a good growth in net and interest rates. So nice development there, and good cost control will be added. Totens Boligkredit is only available for comparison, while Meglern and Forretningspartner also deliver positive contributions to the bottom line. The group of joint companies has been presented by other owners, but the point is that they deliver at a good, high level. A little lower than last quarter. It comes a little from the future, among other things on the financial side, but at the same time at a fairly high level. The response also for the other joint controlled companies is that they deliver at the level that is expected. And there you also have the biggest explanation of what is netto finance. It is the 116 from the joint companies. Then it should be noted that we have a negative contribution to other financial instruments in the quarter. It is mainly linked to equity instruments with minus 45 in the quarter. The rest is largely as expected, and good development also in the interest and currency trade. The operating costs, it is obvious that it deserves some extra comments. As a little introduction, we are working on two large projects now. We have a fusion that we are in the process of technically setting the ball rolling. On the first weekend in June, there is a larger technical integration that takes place. And then we will finally be able to say that we are over on the same platforms all the way through the bank, and thus also be able to simplify the everyday life of many of our employees, and also put an even stronger focus on the customer side. This contributes to the increase in the cost of fusion. In addition, it is the tool packs that Klara-Lisa mentioned earlier. So under these two large projects, the underlying cost growth is 2.9%, as mentioned. The figures on staff costs, apart from the food packages, are the same as in the previous quarter. Off and down deadlines are some extras that were taken in the fourth quarter. There were some declines and out of some offices in relation to the fusion method. Otherwise, it is stable to compare with the first quarter of last year. The IKT costs, we had some on the core bank exchange at Tieto Evri in the fourth quarter, now it is reduced again. We know that the IKT costs are increasing and underlying, but it is also an area that has a strong focus in the Sparbank 1 development, but we also have a strong focus on IKT costs through our own cost programs. There is a large increasing cost post, and where we want to keep control of it. Market management is a bit campaign-driven, so it's good to have control of that. It will vary a bit from quarter to quarter. Fixed property, that's where it should be. My room in the fourth quarter, there was 15 million in it as part of the transaction on Jonsorve 5. There we are back where we should be. Fusion costs are commented, and the same is... Most other costs. Other operating costs. A nice message to give is that a relatively large and increasing cost in recent years has been the swindle. We see there that we have a good reduction in the swindle costs compared to last quarter. A reduction in the area of 10 million kroner. And the salary in itself is perhaps not the world's largest, but it shows hard work among many employees, and shows the quite strong story of Klara-Lise here, where we have employees all the way out in the customer line who work well with their colleagues on security, and actually manage to take the slap in action. So it's a comparison between the first line and what you see in the numbers. Let's talk about the operating costs. We've communicated a long-term ambition to increase the company's operating costs by 40%. We're not there yet. We have a lot of extra costs. Income is also affected by a margin pressure. But this is something that has a focus on administration and management. I mentioned the cost projects, Clara Lise mentioned the cost projects. It is established. One thing is the crew. We work a lot with that. There has been a relatively fast response from the Board of Directors and so on. But in addition, there are plans related to units. There are plans related to IT. There are plans related to other cost posts. There are established stricter budgets in many areas. And that is just to be able to take it down in that direction, and also reminds us of the so-called secondary ambition of having flat costs in Morbank until 2027, taken into account as fusion costs. The loss rate in the period is lower than what we have seen for a long time, and it is on a level that must be perceived as positive. 41 million kroner in total is a significant amount, but below that there are a lot of very pleasant observations. To start with what is not so nice at first, we have a couple of cases on PM, very unusual, a couple of single engagements, that drag this loss rate in PM. It is unusual high. But at the same time, given that there are a couple of known engagements that have been developed and confirmed, we also see that there is nothing on the portfolio search that is troublesome. The business market is on low levels, and to go a little deeper, we see that there are positive migrations from line 2 to line 1, and we can see that in the model-based drop-downs. The model-based drop-downs are basically macro-based on the one hand, which is promising, but it is also characterized by what is called growth and migration. I'll come back to that on the next slide. The macro expectation on the interest rate raises the expectation and the need for model-based losses in the future. And the effect there is in the area of 37 million kroner in total. But what we see is that in the other direction, there is a so-called positive migration with about 17 million and comes back with positive trend migration on the other side. I will also mention Finans Østlandet. 1.8 million in losses. That is very low and below normal, but it also shows that they have an experience of positive development in the portfolio and good control over it. So again, we land on a loss cost that is... Yes, here it says 10 basis points. It is on the bank's own portfolio. If we take credit companies, we talk about 7 basis points. To see what's happening below, take a look at the left-hand side, with scales and the like. A significant reduction in volume in step 2, corresponding increase in step 1. These are positive step migrations, where we see that new data, new information, especially from some BM customers, contributes to them migrating back to step 1, with a lower ECL. Trin 3 is stable both in percentage, volume and volume. We will soon go into landing, but to fly a little back in helicopter perspective, to look at the portfolio, we have four pretty familiar graphs you are used to seeing. The short summary is stable, stable, stable, and a significant improvement. It is nice to see that where the significant improvement is, it is on distances within the business market. This applies to the shorter distances and the slightly longer distances. And this is on the portfolio level, and we think this is a good sign that it also works well on a broad level within the business market division. And as Klara-Lise mentioned earlier, under macro, we see that there are industries that are still struggling, so that's not it, but we mean that we know our customers who are struggling and have a relatively good overview of them. And on the portfolio level, it looks good. So then, to draw it in on the last page, always in capital cover, We report a pure core capital growth of 17.8. We have a target of over 15.9. This is a good buffer, both in terms of growth ambitions, we have solid exchange capacity, risk bearing ability. And then we should mention, this is taken into account after the capital growth rules, also 70% exchange rate in these calculations. So it has been a stable quarter when it comes to regulations. We have now made a decision and hopefully reversed the risk levels on IRB units, especially housing units. But regardless of whether someone would choose to sit there, we see that we have a very solid position in terms of capital. So I think I'll leave it at that, and then we have investor contact Bjørn-Erik Orskau walking around with the microphone, so we'll take questions both from the hall, and then maybe some have come in from the internet as well. So then we're ready for you.

Thank you, and good morning, Roy Tilly from Arctic. I have several, but you can stop me when that's enough. Just the first, on the business side and on the business side, one of the alliance colleagues has taken a strategic assessment, so we'll see where they end. I don't think you want to say any other way than today, but as I read them, it's not quite obvious if it's financially strategic. How do you experience the strategic advantages of integrating it? It's difficult to judge from the outside, but how do you experience that it works?

I can start. That is actually a rather interesting discussion. We see that there is a slightly different strategic focus among our alliance partners. We can point to Trondheim, where they have one SMN and have a very strong focus on integration. We have probably been most inspired from that. We have strong co-localization. We have set clear goals for cooperation. A part of the strategy, which we have not communicated very clearly, is to win the total customer, where the compulsory one-sided goal is set between all business areas in the bank. And as you say, the other implicit questions we cannot answer.

I can mention that we see that we also like the organization market, together with our business partners, and see that we have a good offer for that segment. So the collaboration, as you say, has been a big focus for us in this strategy period we are in now.

Thank you. I'll take a few more. There was a rate increase yesterday, if you look at the margin, not just you, but everyone, which is probably a little lower right now, but that's where Nibor is, so that's probably... Good that you came, but I note that for the time being, no Norwegian banks have reported any interest changes in the market. Is it just a reflection of how tough the competition is? Are you all sitting and waiting for Bjørvika now, or how are you going to interpret this?

I don't think we're going to stand here and announce what we're doing. That's what we do when we do it, but I don't think there's any doubt that the competition is serious. And if we look at where we notice it the most, then it is as you mentioned the standard banks, the small savings banks, have been very active in the market, which creates an even greater price pressure than we have been used to. It has typically been the big business banks that have gone first, and then many others have quickly followed up. But now we see especially the small local savings banks have really driven a tough price pressure. So we notice that. On the margin, on the PM side. On the BM side, it's more case by case. I think it's more that there is a great interest for the good cases, which means that the prices have been pushed down, because there is typically good security and good customers for a typically lower margin than just a year ago. We notice that.

No, there's nothing to add. There were some old bank managers who got a bit on the poker when they were talking to the media, but that's starting to be many years ago.

But I can say that it's interesting how much capacity the last two years the banks got with the new real changes that happened in April last year, almost a year ago. So of course, we think it's definitely worth taking down the margins, as they have grown a lot in connection with many others.

I have one more question. In short, is it only things that have moved in the right direction, or are there also some customers who are out of the bank?

I was just about to say, Clara-Lise had a slide that shows a bit of what we call contests and the like. To a greater or lesser extent, you have contests and things that are moved away from the balance of the search. But it is also the case that on the way before that, they also work with, what shall I say, a lot of type of work out, if I'm missing a good Norwegian word, to help restructure the businesses. And it is clear that when you have been restructured over some time, and you have a reasonable and viable business case in the future, then it is out of the list to be back in payment. So that is a small mix in relation to it. But it is clear that there has been a lot of hard work with a lot of large individual engagements in recent years to get good solutions.

Thank you very much.

Then we have some questions from the web. From Simen in DNB. You have probably been a little aware of this, but you say that the growth on P-Mart is strong towards the end of the quarter. Simen is wondering a little about the momentum in April and May. Yes.

We had a calm end to 2025. We can say that there is no doubt that we are also influenced by the technical fusion and the time it takes to work with two PS, and we look forward to getting rid of two PS on the other side. So we notice that there has been more to maintain volume, which has been important, while where we have grown particularly well on the personal market has been in Storoslo. both in Drammen and in our priority regions in Oslo. So there we have grown significantly more and taken market shares that are also seen in total.

Of course, in the second quarter. Yes, that was a point to take into account as well. Very good momentum from March, which is taken into account at the start of the second quarter. It should be mentioned that when it comes to the share of new Pant, PM has never had such a high market share as we had in March. That's a good starting point, and it's not a coincidence either. Those who are in the Oslo district will see that we run quite hard, externally visible, on the local bank for Storoslo. But in addition, it is of course, it is worked again with both growth initiatives and total customer initiatives that are on the side of the obligations internally. So I hope to say, we experience that we have had very good traction, and it continues in the beginning, at least, of Token.

Yes, we see the whole of April and the start of May, and it's still a bit acute, so we'll see how it goes. But the focus is definitely to continue to defend and grow market shares across the market sector.

A question from Simen regarding losses, which are low in the quarter. Simen says that we have seen other east-based banks or niche banks report high losses, especially in housing development in the region. So he asks about some thoughts around housing development and our portfolio in the future, if we are concerned.

You can see, as you said, that this industry is not yet fresh. We don't see any new customers that we have challenges with. Here we have good insight in our customers, and we work closely with the customers we have. So we experience that we have taken some losses in previous quarters, and feel that we have a good overview of the development here.

No, and concretely, we have had the entire housing development industry on Watchlist for a couple of years now, and it is still not off Watchlist, to be as concrete as that, because it is in the same macro. But that also means that when you first are on Watchlist, it also means a much stronger focus, and a tighter process, and a tighter reception of customers. So it's probably a bit of both.

A question from Thomas Svendsen in SEB. A bit the same as Roy for Sovit, but he asks if there is any change in the competition intensity from when we were at the end of last year and into Q1. Or is it about the same?

There is still strong competition, I would say. And I mentioned the small local savings banks. We notice them well, especially abroad. But here in the Oslo area, it is more fragmented, but there is strong competition. Everyone wants to go to Oslo. So we notice that. So there is still, I would say, quite unchanged competition intensity in total. And then it varies a little from month to month. At least with MV, we see that we take Panty from where we lose. So it varies a little. But strong competition is good for the customer. That makes us have to sharpen ourselves.

Nils Christian Nøgne, SBN Markets. Also a little similar to what you have commented on already, but I still ask if we can comment on growth in different geographies, both for housing and businesses. How do we grow in the traditional versus the traditional?

On the domestic market, we defend market shares. We are a bit lower on the business market than we actually want. But on the PM, we defend market shares on the domestic market, but we have between 40 and 70 percent, depending on the office. It's very large. In Oslo, we take a significantly higher share, as I said, of new housing in relation to the market share we have. So we are bank number three in the Oslo area. There are two business banks in front of us, and then there are some who snuff on us in the neck, but we take definitive market shares. So especially Storoslo I want to bring forward. On the business market in Storoslo, we are more niche-oriented there. We have a lot of ownership, but we also experience good growth, especially in the Drammens region. There we have really grown more than we had expected in our plans.

I can also add that the inland area is large. It is not as large as the outland area, but the inland area is very large. There is also a difference in cities and a little more in the border area. And what we see in the border area, there is more of a down payment. while there is an increase in cities, and we stand strong, and we invest in cities, also in inland areas. So that has something to do with the growth dynamics there as well, and it's fair to say, if you also look at some of the smaller savings banks that establish themselves, they also draw in towards the inland cities, because they see a bit of the same. So it's to a certain degree there as well, that the intensity of... Yes, re-establishments are also quite powerful in the domestic market, so you have to understand the domestic market in detail. And of course, what we spend a lot of time on is what is the growth capacity? Is it permanently higher for the standard banks after CRR 3? Or are they now burning through a form of surplus capital? We think it's a fair analysis. We know that there are many who think the same. For our part, capital management is important. It will be in other banks as well. If you get surplus capital, you have a few ways to use it. Do you use it in competition? And for how long? Do you use it for owners? Do you have owners? So this is also something that I assume that analysts will spend some time on. For our part, it's about taking the credit risk and taking it to the places we want to be, and not least cross-sell it.

As I mentioned, or asked about segments or prioritized areas, the LH segment is important for us. And we see that about half, a little more than half of the new loans are for LH. And we also attract even more young people. I think that's very exciting. Between 18 and 34, who are also LH members. And also on the TOTEN side, I think we also have greater potential through TOTEN's fusion. To attract also LH segments. I was about to say the right side of Mjøsa, but I'm not allowed to say that. I said that just now, but it's nice all around Mjøsa, and on the TOTEN side, we will have the opportunity to grow even more.

Then we will round off with the last question, also from Nils Christian, a Segway there, to TOTEN. He is wondering about the integration costs with TOTEN in the first quarter, and maybe you can also comment a little around the guiding way earlier.

Yes, we can say that the integration cost is one thing that we see, the other is how it affects the way we work. And I think that when we finally get the technical version finished on the first weekend of June, then we all look forward to working more effectively, and also to be able to be even more powerful in the market on the activity side, on that side. And otherwise, on costs, you can maybe go. Yes, I can talk.

We have previously guided that we see the fusion cost at about 150 million. We do this internally, we don't report externally, but we can say that we are comfortable with it. There has been good control in the project so far. It will be easier to report when we get out of Tokyo, that's fair to say.

But we are now in the middle of the third trial version, and the first technical two trial versions have gone well. So we are well on the road, and we look forward to getting this done.

Yes, I would like to say thank you for now.

Thank you. Have a nice day.