Interim report from the Board of Directors

About the Company
Møre Boligkreditt AS is a wholly owned subsidiary of Sparebanken Møre. The company is licensed to operate as a mortgage company, issuing covered bonds. Møre Boligkreditt AS is Sparebanken Møre's most important source of market funding and an important part of the parent bank's long term funding strategy. The accounts have been prepared in accordance with IFRS. Figures in brackets refer to the corresponding period last year.

Results for Q3 2025
The financial statements of Møre Boligkreditt AS show a pre-tax profit of NOK 70 million in the third quarter of 2025 (NOK 54 million). Net interest income amounts to NOK 87 million (NOK 72 million), and expenses ended at NOK 16 million (NOK 14 million). No losses from financial instruments recorded in the quarter, compared with net losses of NOK 5 million in the third quarter of 2024.

The ECL amount to NOK 1 million in the quarter (return on loan losses of NOK 1 million). Profit after tax amounts to NOK 54 million (NOK 42 million).

Net mortgage lending decreased by NOK 3,193 million in the third quarter of 2025.

Two bond loans with total outstanding volume of NOK 3,084 million matured in September 2025, and Møre Boligkreditt AS made an early redemption of NOK 100 million in the third quarter of 2025. Møre Boligkreditt AS had 9 bond loans outstanding at 30 September 2025 with a total book value bond debt of NOK 31,618 million (NOK 35,673 million). Møre Boligkreditt AS reported Net Stable Funding Ratio (NSFR) of 118 per cent as at 30 September 2025.

Third quarter end results
By third quarter end 2025, the financial statements show a pre-tax profit of NOK 180 million (NOK 167 million). Net interest income amounts to NOK 245 million (NOK 216 million). Expenses amount to NOK 50 million (NOK 43 million). Net losses from financial instruments amount to NOK 10 million by third quarter end 2025, compared with net losses of NOK 12 million at third quarter end 2024.

The accounts were charged with NOK 5 million in loan losses at third quarter end 2025 (return on loan losses of NOK 6 million). Taxes amount to NOK 40 million at third quarter end of 2025 (NOK 37 million), and profit after tax amounts to NOK 140 million (NOK 130 million). Changes in value of basis swap spreads are added to other comprehensive income (OCI) with NOK 15 million after tax by third quarter end 2025, compared with NOK 8 million being charged at third quarter end 2024.

Total assets at third quarter end 2025 amount to NOK 39,160 million (NOK 42,418 million). Net mortgage lending amount to NOK 36,301 million (NOK 35,943 million) and the ECL calculation as at 30 September 2025 shows expected credit losses of NOK 10 million for Møre Boligkreditt AS (NOK 5 million).

At third quarter end 2025, the mortgages in the cover pool had an average loan-to-value ratio of 56.4 per cent, calculated as mortgage amount relative to the value of the property used as collateral (55.0 per cent).

The company's substitute assets included in the cover pool amounted to NOK 831 million at end-September 2025 (NOK 3,469 million). Over-collateralisation, calculated as the nominal value of the cover pool relative to the nominal value of outstanding covered bond loan debt was 21.0 per cent as at 30 September 2025 (14.5 per cent).

Møre Boligkreditt AS’ Liquidity Coverage Ratio (LCR) eligible assets amount to NOK 269 million as at 30 September 2025, reporting total LCR of 1,031 per cent by third quarter end 2025.

Capital strength 
At the end of the third quarter, paid in equity and retained earnings amount to NOK 2,262 million (NOK 1,759 million). Risk weighted assets amount to NOK 10,366 million (NOK 8,667 million). Net equity and subordinated loan capital amount to NOK 2,052 million at end-September 2025 (NOK 1,577 million). This corresponds to a Common Equity Tier 1 capital ratio of 19.8 per cent (18.2 per cent). Leverage ratio at end-September 2025 is 5.3 per cent (3.8 per cent). Møre Boligkreditt AS uses internal rating based (IRB) models to calculate capital requirements for credit risk.

Regulatory changes 
The Norwegian Ministry of Finance (MoF) adopted regulatory amendments that determined how CRR III is to be implemented in Norway. The Regulations entered into force in Norway 1 April 2025.

Minimum average risk weight floor increase for mortgages secured by Norwegian residential real estate applicable to banks using the internal ratings-based approach (IRB) from 20 to 25 per cent was effective from 1 July 2025.

Rating 
The rating agency Moody's has assigned Aaa-rating to all covered bond loans issued by Møre Boligkreditt AS.

Moody’s has assigned long-term and short-term issuer ratings of A1/Prime-1, and long-term and short-term Counterparty Risk Ratings of A1/Prime-1 to Møre Boligkreditt AS, aligned with the rating of the parent bank Sparebanken Møre. 

Outlook 
From September 2024 to September 2025, the Norwegian Consumer Price Index (CPI) rose by 3.6 per cent, while the CPI adjusted for tax changes and excluding energy products (CPI-ATE) increased by 3.0 per cent. These figures are broadly in line with, or slightly below, Norges Bank’s projections, but remain above the long-term inflation target of 2 per cent. Strong wage growth contributes to persistent inflationary pressures, particularly in the service sector. Nevertheless, Norges Bank announced a 0.25 percentage-point cut in the policy rate to 4.00 per cent at its September meeting. According to the central bank’s projected rate path, no further policy rate cuts are expected in 2025.

Unemployment in Norway remains low. In September 2025, the national registered unemployment rate stood at 2.1 per cent, compared to 1.7 per cent in the county of Møre og Romsdal. Unemployment is expected to remain at relatively low levels in the coming quarters, both nationally and regionally.

The national twelve-month growth rate in household loan debt continues to trend upward, reaching 4.2 per cent in August 2025. Seasonally adjusted growth in Norwegian house prices was 0.4 per cent in September. So far this year, nominal house price growth has been 6.7 per cent nationally and 4.1 per cent in Møre og Romsdal. The Board expects housing price growth to moderate in the second half of 2025.

Uncertainty surrounding future economic developments remains elevated. Geopolitical unrest and trade policy uncertainties continue to represent potential sources of volatility in financial markets. The Board anticipates this uncertainty to persist well into the next quarter.

Ålesund, 30 September 2025
22 October 2025
THE BOARD OF DIRECTORS OF MØRE BOLIGKREDITT AS

KJETIL HAUGE, Chair
ELISABETH BLOMVIK
KRISTIAN TAFJORD
SANDRA MYHRE HELSETH

OLE ANDRE KJERSTAD, Managing Director