Profit growth and a good return on equity for Sparebanken Vest

In the first quarter of 2024, Sparebanken Vest achieved a profit before tax of
NOK 1,256 (944) million and a return on equity of 21.6 (17.0) percent. The CET1
ratio was a solid 17.5 (18.4) % at the end of the quarter.

One year after the board of Sparebanken Vest decided to adjust the bank's target
for return on equity after tax from 12 to 13 per cent, the bank delivers a
return on equity in the quarter of 21.6 (17.0) per cent.
- We are operating the bank well and are positioned for further development at a
time when the framework conditions are changing rapidly and significantly, says
CEO Jan Erik Kjerpeseth.

Good lending and deposit growth
The bank has good lending and deposit growth over the past 12 months of 14.3 per
cent and 10.2 per cent respectively.

Gross lending to corporate customers amounts to NOK 63.9 (57.5) billion,
corresponding to lending growth over the last 12 months of 11.2 per cent and
last quarter of 4.9 per cent. Total gross lending to personal customers is NOK
201.5 (174.6) billion, corresponding to lending growth over the last 12 months
of 15.4 per cent and last quarter of 3.0 per cent.

Lending through the Bulder concept amounts to NOK 52.3 (27.5) billion at the end
of the quarter. Lending growth in the Bulder concept in the last 12 months is
NOK 24.8 billion, and in the last quarter NOK 5.4 billion.

Deposits from customers are NOK 127.4 (115.6) billion, corresponding to a
12-month growth of 10.2 per cent. Growth in deposits in the quarter is 3.0 per
cent. The deposits are divided by NOK 72.1 (63.7) billion for personal customers
and NOK 55.2 (52.0) billion for corporate customers.

Within the Bulder concept, the deposit volume has increased by NOK 2.8 billion
in the quarter, which means that the deposit coverage in the Bulder concept in
isolation was 21.0 (16.0) per cent at the end of the quarter. The number of
customers using Bulder as a daily bank has increased by 40 % so far this year
and has tripled in the past 12 months.

Solid lending portfolio
The quality of the bank's lending portfolio is good. Defaults and potential bad
debt are at a low level, and losses are moderate in the first quarter.

Defaults and potential bad debt for retail customers total NOK 293 (282)
million. As a percentage of gross lending to personal customers, this
corresponds to 0.15 (0.16) per cent. The development underpins the continued low
risk in the portfolio.

Defaults and potential bad debt for the corporate customers total NOK 1,152
(1,162) million. As a percentage of gross lending to business customers, this
amounts to 1.80 (2.02) per cent. The risk profile is assessed as moderate. Good
portfolio management, close follow-up and moderate exposure to cyclical
industries help to reduce the risk of loss.

Collectively, defaults and potential bad debt for personal and corporate
customers amount to 0.54 (0.62) per cent.

Low cost-to-income ratio
Operating costs as a percentage of net operating income was 26.0 (32.0) percent
in the first quarter of 2024.

The bank's operating costs in the first quarter are NOK 443 (450) million.
External fees have been reduced by NOK 17 million, mainly as a result of
replacing external consultants with permanent full-time employees. This,
together with general wage growth, means that wage costs are about 8 per cent
higher than in the first quarter of 2023. IT costs are about NOK 8 million
higher than in the first quarter of 2023, corresponding to a cost increase of
about 11 per cent.
- Despite high general price increases in society, our cost percentage is still
among the lowest in the industry, says Kjerpeseth.

Solid CET1 ratio
The bank's CET1 ratio is 17.5 (18.4) % at the end of the quarter. In the
quarter, the CET1 ratio has increased by 0.7 percentage points. Earnings
accumulation and reduced risk weights have a positive effect on the CET1 ratio.
The Norwegian Financial Supervisory Authority approved the bank's revised IRB
risk models during the quarter, and these were put into production during the
quarter.

The bank's current CET1 requirement is 14.8%, divided into a combined minimum
and buffer requirement of 14 % and an authority-set, bank-specific pillar 2
requirement of 0.8%. With a CET1 ratio of 17.5%, the bank has a margin of 2.7
percentage points to the requirement at the end of the quarter.

A change in outlook for several industries
After a steep year for many, the companies in the region say in the latest index
that they have a brighter view of the future:
- The companies in our region say that they are more optimistic about the next
six months than they have been for a long time. This is in line with the signals
we get from our business customers, says Jan Erik Kjerpeseth.

First quarter 2024 (first quarter 2023 in brackets) 
o	Very good return on equity: 21.6% (17.0%) 
o	Growth and higher interest rates increased nominal net interest income: NOK
1,462 (1,175) million 
o	Robust lending portfolio and good credit risk management gave low losses: NOK
44 (33) million 
o	Effective cost management gave a low cost-to-income ratio: 26.0% (32.0%) 
o	Good growth in lending and deposits in the last 12 months: 14.3% and 10.2%,
respectively 
o	Strong lending and deposit growth in Bulder: NOK 52.3 billion in lending and a
deposit-to-loan ratio of 21% at the end of the quarter 
o	Sound CET1 ratio: 17.5% (18.4%), well above the capital adequacy target of
16.05%. 
 
Sparebanken Vests will present its financial figures for the first quarter of
2024 at 09.00 CET on 30 April 2024.  
  
The presentation will be available
here: https://www.spv.no/om-oss/investor-relations/webcast    
   
Questions for the quarterly presentation may be sent to:
[e-mail]
 
An English texted recording of the presentation will be made available on the
following website later in the day on 30 April 2024:
https://www.spv.no/english/investor-relations/webcast

For more information, please contact:     
Jan Erik Kjerpeseth, CEO: [phone]  
Frank Johannesen, CFO: [phone]     
Brede Borgen Kristiansen, Director of Finance, Operations and Investor
Relations: [phone]     
Hanne Dankertsen, Director of Communications: [phone]     
    
Sparebanken Vest is Norway's second largest savings bank with approximately 800
dedicated and skilled employees. Since 1823, we have built up the trust of
Western Norwegians, which means that we have a solid market position. We are
present in 36 locations in Vestland, Rogaland and Møre og Romsdal. Through our
affiliated product companies, we are a complete financial house for all our
personal and corporate customers. We are proud to be an independent financial
group headquartered in Bergen with a central role in much of the value creation
that takes place in Western Norway.     
   
This information is subject to the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.

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