Interim report from the Board of Directors

All figures relate to the Group. Figures in brackets refer to the corresponding period last year. The financial statements have been prepared in accordance with IFRS and the interim report has been prepared in conformity with IAS 34 Interim Financial Reporting.

RESULTS FOR Q1 2026
Profit before tax for the first quarter of 2026 amounted to NOK 275 million, or 1.03 per cent of average assets, compared with NOK 302 million, or 1.16 per cent, for the corresponding quarter last year.

Profit after tax for the first quarter of 2026 amounted to NOK 211 million, or 0.79 per cent of average assets, compared with NOK 232 million, or 0.89 per cent, for the corresponding quarter last year.

Return on equity was 9.9 per cent in the first quarter of 2026, compared with 11.2 per cent in the first quarter of 2025, and the cost income ratio was 45.7 per cent compared with 44.3 per cent for the first quarter of 2025. 

Earnings per equity certificate were  NOK 1.94 (NOK 2.13) for the Group and NOK 3.44 (NOK 3.38) for the parent bank. 

Net interest income 
Net interest income was  NOK 469 million for the quarter, which is NOK 16 million, or 3.3 per cent, lower than in the corresponding quarter of last year. This represents 1.75 per cent of assets, which is 0.12 percentage points lower than for the corresponding quarter last year.

In the retail market, both the interest margins for deposits and lending contracted compared with the first quarter of 2025. In the corporate market, the interest rate margins for deposits contracted while the margins for lending were on a par with the same levels as in the first quarter of 2025.

Other income
Other income was NOK 84 million in the quarter, which is NOK 3 million higher than in the first quarter of 2025. The net result from financial instruments of NOK 13 million for the quarter was NOK 2 million less than in the first quarter of 2025.  Capital losses from bond holdings amounted to NOK 1 million in the quarter, compared with capital gains of NOK 5 million in the first quarter of 2025. Capital gains from equities amounted to NOK 3 million compared with capital gains of NOK 1 million in the first quarter of 2025. This represents a positive change in value for fixed-rate lending of NOK 3 million, compared with a negative change in value of NOK 2 million in the same quarter last year. Income from foreign exchange and interest rate business for customers amounted to NOK 8 million in the quarter, NOK 2 million higher than in the same quarter last year.

Other income excluding financial instruments increased by NOK 5 million compared with the first quarter of 2025. The increase was mainly attributable to income from asset management and insurance sales.

Expenses 
Operating expenses amounted to NOK 253 million for the quarter, which is NOK 2 million higher than for the same quarter last year. Personnel expenses accounted for NOK 2 million of the rise in relation to the same period last year and totalled NOK 139 million. Other expenses were on a par with the same period last year. 

Provisions for expected credit losses and credit-impaired commitments 
Losses on loans and guarantees amounted to NOK 25 million in the quarter (NOK 13 million), corresponding to 0.09 per cent of average assets (0.05 per cent of average assets). Losses in the corporate segment amounted to NOK 20 million in the quarter, while losses in the retail segment amounted to NOK 4 million. At the end of the first quarter of 2026, provisions for expected credit losses totalled NOK 274 million, equivalent to 0.29 per cent of gross loans and guarantee commitments (NOK 272 million or 0.30 per cent).  Of the total provision for expected credit losses, NOK 28 million relates to credit-impaired commitments more than 90 days past due (NOK 33 million), which represents 0.03 per cent of gross loans and guarantee commitments (0.04 per cent), while NOK 144 million relates to other credit-impaired commitments (NOK 75 million), corresponding to 0.15 per cent of gross lending and guarantee commitments (0.08 per cent). 

Net credit-impaired commitments (commitments more than 90 days past due and other credit-impaired commitments)  have increased by NOK 790 million in the past 12 months. At end of the first quarter of 2026, the corporate market accounted for NOK 935 million of net credit-impaired commitments and the retail market NOK 144 million. In total, this represents 1.15 per cent of gross loans and guarantee commitments (0.32 per cent). 

Lending to customers
At the end of the first quarter of 2026, net lending to customers amounted to NOK 91,701 million (NOK 89,469 million). In the past 12 months, gross customer lending has increased by a total of NOK 2,931 million, equivalent to 3.3 per cent. Both retail lending and corporate lending have increased by 3.3 per cent in the past 12 months. Retail lending accounted for 65.7 per cent of total lending at the end of the first quarter of 2026 (65.6 per cent).

Customer deposits 
Customer deposits have increased by NOK 1,404 million, or 2.7 per cent, in the past 12 months. At the end of the first quarter of 2026, deposits amounted to NOK 52,665 million (NOK 51,262 million). Retail deposits have increased by 4.6 per cent in the past 12 months, while corporate deposits and public sector deposits are at the same levels. The retail market’s relative share of deposits amounted to 61.1 per cent (60.1 per cent), while deposits from the corporate market and public sector accounted for 38.9 per cent (39.9 per cent). 

LIQUIDITY AND FUNDING
Sparebanken Møre’s liquidity and funding are managed based on frameworks for its Liquidity Coverage Ratio (LCR), Net Stable Funding Ratio (NSFR), deposit-to-loan ratio and others. The regulatory minimum LCR and NSFR requirements are both 100 per cent. The Group has established minimum internal targets that exceed the regulatory requirements for LCR and NSFR as well as an internal target corridor for its deposit-to-loan ratio.

Sparebanken Møre’s liquidity coverage ratio (LCR) was 140 per cent (141 per cent) for the Group and 133 per cent (133 per cent) for the parent bank at the end of the quarter.

The NSFR ended at 117 per cent (119 per cent) at the end of the first quarter of 2026 (consolidated figure), while the bank’s and Møre Boligkreditt AS’s NSFRs ended at 122 per cent (121 per cent) and 103 per cent (108 per cent), respectively.

Both LCR and NSFR meet both external and internal requirements by good margin.

Deposits from customers represent the bank’s main source of funding. The deposit-to-loan ratio was 57.3 per cent (57.6 per cent) at the end of the first quarter of 2026, and this is within the established target corridor.

Total net market funding amounted to NOK 42.5 billion at the end of the quarter. Senior bonds with a remaining term to maturity of more than 1 year have a weighted remaining term to maturity of 2.30 years, while covered bond funding through Møre Boligkreditt AS correspondingly has a weighted remaining term to maturity of 2.96 years – overall for market funding in the Group (inclusive of T2 and T3) the remaining term to maturity is 2.89 years.

Møre Boligkreditt AS issues bonds based on the transfer of loans from the parent bank. Gross retail lending transferred to Møre Boligkreditt AS amounted to NOK 37,351 million at the end of the quarter, which corresponds to 40.6 per cent of the bank’s total lending.

RATING
In a Credit Opinion published on 17 January 2025, the rating agency Moody's confirmed Sparebanken Møre’s counterparty, deposit and issuer ratings as A1 with a stable outlook.

Møre Boligkreditt has the same issuer rating as the parent bank, while the mortgage credit company’s issuances are rated Aaa.

CAPITAL ADEQUACY 
Capital adequacy is calculated and reported in line with the EU capital requirements for banks and investment firms – CRD /CRR. Sparebanken Møre has authorisation from the Financial Supervisory Authority of Norway to use internal measurement methods, the Foundation IRB approach, for credit risk. Market risk calculations are based on the standardised approach and operational risk calculations on the basic indicator approach. The use of IRB involves comprehensive requirements for the bank’s organisation, expertise, risk models and risk management systems.

Pursuant to section 17-13 of the Financial Institutions Act, financial institutions participating in cooperating groups must carry out proportional consolidation regardless of the size of their owner interests. Sparebanken Møre carries out proportional consolidation of its owner interests in Kredittbanken ASA.

CRR3 entered into force in Norway on 1 April 2025. The bank has implemented CRR3 in its calculation of capital adequacy as at the end of the second quarter of 2025. The new LGD for institutions, elimination of the scaling factor in the risk-weighted formula and a lower conversion factor for undrawn commitments for corporates have a positive effect on the bank’s capital adequacy.

The Ministry of Finance has decided to increase the risk-weighted floor for mortgages from 20 to 25 per cent with effect from 1 July 2025. The bank implemented a new mortgage floor from and including the third quarter 2025. The floor is having a negative effect on the bank's capital adequacy in the order of 1.5 percentage points.

On 9 February 2026, a new application was submitted for the acquisition of equity certificates. A response to the application was received on 20 March 2026. The authorisation was granted on the condition that the buybacks do not reduce CET1 capital by more than NOK 64.7 million. Sparebanken Møre has deducted NOK 64.7 million from CET1 capital since authorisation was granted and will do so until the authorisation expires on 30 November 2026. In 2025, the buyback limit was NOK 42 million from February to June, and then NOK 59.8 million from October to the end of December. Deductions were made from CET1 capital equivalent to the applicable limits for the periods.

At the end of the first quarter of 2026, the CET1 capital ratio was 17.3 per cent (17.0 per cent).This is 1.15 percentage points higher than the total minimum requirement and the Financial Supervisory Authority of Norway’s expected capital adequacy margin (P2G) totalling 16.15 per cent. Primary capital amounted to 21.1 per cent (20.7 per cent), and Tier 1 capital was 19.1 per cent (18.7 per cent).

Sparebanken Møre’s total internal minimum CET1 capital ratio requirement is 16.15 per cent. The requirement consists of a minimum requirement of 4.5 per cent, a capital conservation buffer of 2.5 per cent, a systemic risk buffer of 4.5 per cent and a countercyclical buffer of 2.5 per cent. The Financial Supervisory Authority conducted a SREP in 2025. The individual Pillar 2 requirement for Sparebanken Møre has been set at 1.6 per cent, and the expected capital adequacy margin has been set at 1.25 per cent. At least 56.25 per cent of the Pillar 2 requirement (P2R) that resulted from the aforementioned SREP must be met with CET1 capital (0.9 per cent), while a minimum of 75 per cent must be met with Tier 1 capital. The capital requirement (P2R) margin must be met with CET1 capital.

The leverage ratio (LR) at the end of the first quarter of 2026 was 7.1 per cent (7.3 per cent). The regulatory minimum requirement (3 per cent) was met by a good margin. 

MREL
The Financial Supervisory Authority has set Sparebanken Møre’s effective MREL requirement at 35.7 per cent and the minimum requirement for subordination at 28.7 per cent, effective from 1 January 2026. At the end of the quarter, Sparebanken Møre’s actual MREL level was 42.4 per cent, while the level of subordination was 33.1 per cent of the risk-weighted assets.

Sparebanken Møre had issued NOK 4,000 million in subordinated bond debt at the end of first quarter of 2026.

SUSTAINABILITY
In line with the bank’s sustainability strategy and long-term objectives, the ESG work is being continued and strengthened through an increased focus on risk management, stress testing and scenario analyses related to ESG risk. The framework for green financing is also being further developed.

SUBSIDIARIES 
The aggregate profit of the bank’s subsidiaries for the first quarter of 2026 amounted to NOK 43 million after tax (NOK 43 million).

Møre Boligkreditt AS was established as part of the Group’s long-term funding strategy. The main purpose of the covered bond company is to issue covered bonds for sale to Norwegian and international investors. At the end of the first quarter of 2026, the company had nominal outstanding covered bonds of NOK 30.6 billion in the market. Around 38 per cent was issued in a currency other than NOK. At the end of the quarter, the parent bank held no bonds issued by the company. Møre Boligkreditt AS contributed NOK 44 million to the Group’s result in the first quarter of 2026 (NOK 43 million).

Møre Eiendomsmegling AS provides real estate brokerage services to both retail and corporate customers. The company made a NOK -3 million contribution to the result in the first quarter of 2026 (NOK -1 million). At the end of the quarter, the company employed 21 FTEs.

The purpose of Sparebankeiendom AS and Storgata 41-45 Molde AS is to own and manage the bank’s own commercial properties. The company contributed NOK 2 million to the result in the first quarter of 2026 (NOK 1 million). The companies have no staff. 

INVESTMENTS IN PRODUCT COMPANIES
The bank announced its decision to acquire stakes in Borea Asset Management AS (indirectly through Frende Kapitalforvaltning AS) and Kredittbanken ASA in its 2025 annual report. These investments were made in the first quarter of 2026, in line with what was announced in the annual report.

As a result, the bank acquired a 1.56 per cent stake in Kredittbanken ASA and a 5.25 per cent stake in Borea Asset Management AS in the first quarter.

EQUITY CERTIFICATES
At the end of the first quarter of 2026, there were 7,778 holders of Sparebanken Møre's equity certificates (EC). The proportion of ECs owned by foreign nationals and enterprises amounted to 4.2 per cent at the end of the quarter. 49,795,520 equity certificates have been issued.

Note 14 includes a list of the 20 largest holders of the bank’s ECs. As at 31 March 2026, the bank owned 161,117  equity certificates (including 50,000 equity certificates lent to Arctic in accordance with the market making agreement). These were purchased on the Oslo Børs at market price.

At the end of the first quarter of 2026, equity certificate capital accounted for 49.1 per cent of the bank’s total equity.

FUTURE PROSPECTS 
The conflict in the Middle East had a significant impact on developments in the international financial markets during the first quarter. The uncertain situation surrounding the Strait of Hormuz has not only resulted in significant fluctuations in commodity and energy prices but also fears of higher inflation in the coming period. This has contributed to expectations of higher interest rates in both Europe and the US.

Here at home, interest rates are also expected to rise. At the start of the year, Norges Bank signalled that it expected two interest rate cuts in 2026. However, expectations had changed to two hikes in interest rates in Monetary Policy Report 1/26. At the same time, both the central bank and other stakeholders point out that uncertainty is unusually high and that making economic forecasts in the current climate is difficult.

The backdrop is a Norwegian economy that is still performing well. Unemployment remains low, and households are likely to see another increase in purchasing power this year. At the same time, both Norges Bank and Statistics Norway expect growth in the Norwegian economy to be somewhat lower in 2026 than was anticipated at the end of last year. This must be weighed against the risk of persistently high and even rising inflation when setting interest rates.

Unemployment in Nordvestlandet remains lower than the national average, and many companies have strong order books. This includes the shipyards in the region. At the same time, our export-oriented business sector is being impacted by the uncertainty internationally.

Sparebanken Møre will remain a strong, committed supporter of both the business community and retail customers in the region. At the same time, the bank aims to deliver strong, sustainable returns for its investors. To achieve this, we will continue to focus on more efficient and profitable banking operations.

The bank's return on equity for the first quarter of 2026 was 9.9 per cent, while the cost income ratio was 45.7. Sparebanken Møre’s long-term financial performance targets a return on equity of above 13 per cent and a cost income ratio of less than 40.

Ålesund, 31 March 2026
29 April 2026

THE BOARD OF DIRECTORS OF SPAREBANKEN MØRE 

ROY REITE, Chair of the Board
KÅRE ØYVIND VASSDAL, Deputy Chair
JILL AASEN
  TERJE BØE
BIRGIT MIDTBUST
ANNE JORUNN VATNE 
MARIE REKDAL HIDE
SVERRE NJÅL BERSÅS

TROND LARS NYDAL, CEO