SpareBank 1 SR-Bank ASA's profit before tax for the first quarter of 2024 was
NOK 1,498 million. The group took market share with good lending growth, higher
income and low losses.

The quarterly result was NOK 367 million higher than in the same quarter in
2023. The return on equity after tax for the quarter amounted to 14.6%.

The growth in Norwegian households' and businesses' debt has slowed in line with
the interest rate hikes over the past year. Despite this, SpareBank 1 SR-Bank
saw good growth in its lending volume in both the retail and corporate markets.
For the first quarter of 2024, lending growth amounted to 5.8% in Retail Market,
9.9% in Large Corporates and 15.5% in SME & Agriculture. Overall, gross lending
to customers has risen by NOK 20 billion in the past 12 months.

"We have seen solid growth over time and are taking a greater share of a highly
competitive market. At the same time, we are committed to ensuring good risk
management as we grow and correct pricing for customers," says CEO Benedicte
Schilbred Fasmer, continuing: 

"In the past year, we have also seen a sharp increase in the number of advice
meetings, with customers more frequently wanting our help with financial
planning. This gives customers the confidence to realise their projects while
building stronger relationships with customers and giving our business more
breadth. 

The group's net impairment provisions on loans and financial liabilities
amounted to NOK 35 million as at the end of the first quarter of 2024. This is
on a par with the corresponding quarter in 2023, and slightly higher than in the
previous quarter. The impairment provisions corresponded to 0.05% of gross
lending in the first quarter. The quality of our retail and corporate market
portfolios is good.

SpareBank 1 SR-Bank saw better net interest income and net commissions and other
operating income in the first quarter than in the same period in 2023. Net
interest income increased with 23,3%, to NOK 1,729 million, mainly due to
lending growth, increased margins and higher interest on equity. 

Net commission and other income increased by 5.6% from the first quarter of
2023, to NOK 480 million in the first quarter of 2024. The main reasons for the
increase were increased arrangement and customer fees in Large Corporates,
growth in income from savings and investments, as well as income from money
transfer services. EiendomsMegler 1 SR-Eiendom and SpareBank 1 SR-Bank
Forretningspartner also saw improved results for the first quarter of 2024
compared with the first quarter of 2023.

Net income from financial investments was NOK 149 million in the quarter, with
income from associated companies amounting to 143 million kroner.

The group's cost/income ratio was 35% for the first quarter, down from 39.5% for
the first quarter of 2023. The groups operating costs increased in the first
quarter of 2024 to NOK 826 million, up from NOK 761 million for the first
quarter of 2023. Personnel costs were higher, mainly due to more FTEs. 

The majority of the companies and households in the group's portfolio have been
able to adapt to the higher costs and the higher level of interest rates over
the past few years. The companies in The Central Bank of Norway's regional
network said that they are somewhat more optimistic than before about
developments in the coming year.

"We know that many companies are experiencing pressure on profitability and
lower investment levels, with the building and construction sector experiencing
a challenging period. However, the high activity in Southwest Norway means that
these companies are also faring better in this region. We expect the regional
differences in both the business sector and housing market to last for some time
to come. SpareBank 1 SR-Bank is well diversified and positioned for further
growth in Southern Norway," says Benedicte Schilbred Fasmer.

On April 17th, the group received approval from the Norwegian Competition
Authority to merge with SpareBank 1 Sørøst-Norge. The merger process with
SpareBank 1 Sør-Norge on October 1st is proceeding as planned.

Q1 2024

o Profit before tax: NOK 1,498 million (NOK 1,131 million)
o Net profit: NOK 1,191 million (NOK 881 million)
o Return on equity after tax: 14.6% (12.5%)
o Earnings per share: NOK 4.26 (NOK 3.31)
o Net interest income: NOK 1,729 million (NOK 1,402 million)
o Net commissions and other operating income: NOK 480 million (NOK 455 million)
o Net income from financial investments: NOK 149 million (NOK 71 million)
o Operating costs: NOK 826 million (NOK 761 million)
o Impairment provisions on loans and financial liabilities: NOK 35 million (NOK
35 million)
o Total lending growth over past 12 months: 7.7% (10.5%) 
o Growth in deposits over past 12 months: -0.9% (7.1%)
o Deposit growth in the past 12 months, excl. public sector: 6.1% (10.9%) 
o Common Equity Tier 1 capital: 17.62% (17.42%)
o Capital ratio: 22.05% (21.05%)
(Q1 2023 in brackets) 

The full interim report is available for download from www.sr-bank.no.

Stavanger, 25.4.2024

Contact people:
Benedicte Schilbred Fasmer, CEO, Tel. +47 950 60 034
Inge Reinertsen, CFO, Tel. +47 909 95 033
Morten Forgaard, Finance Director, Tel. +47 916 21 425
Øyvind Knoph Askeland, Chief Communications Officer, Tel. +47 922 32 639

This information is disclosed in compliance with section 5-1 of the Securities
Trading Act.

Click here for more information

© Oslo Bors ASA, source Oslo Stock Exchange