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 Q4 2025
Profit before tax for the fourth quarter of 2025 amounted to NOK 393 million, or 1.46 per cent of average assets, compared with NOK 333 million, or 1.30 per cent, for the corresponding quarter last year.

Profit after tax for the fourth quarter of 2025 amounted to NOK 297 million, or 1.10 per cent of average assets, compared with NOK 251 million, or 0.98 per cent, for the corresponding quarter last year.

Return on equity was 14.1 per cent in the fourth quarter of 2025, compared with 12.2 per cent in the fourth quarter of 2024, and the cost income ratio was 39.8 per cent compared with 40.0 per cent for the fourth quarter of 2024. 

Earnings per equity certificate were NOK 2.78 (NOK 2.03) for the Group and NOK 2.26 (NOK 1.65) for the parent bank. 

Net interest income 
Net interest income was NOK 511 million for the quarter, which is NOK 11 million, or 2.1 per cent, lower than in the corresponding quarter of last year. This represents 1.90 per cent of total assets, which is 0.14 percentage points lower than for the corresponding quarter last year.

In the retail market, the interest margin for deposits contracted compared with the fourth quarter of 2024, and the deposit margin widened. In the corporate market, interest rate margins for both deposits and lending contracted somewhat compared with the fourth quarter of 2024.

Other income
Other income was NOK 102 million in the quarter, which is NOK 35 million higher than in the fourth quarter of 2024. Net result from financial instruments for the quarter of NOK 14 million, which is NOK 30 million higher than in the fourth quarter of 2024.  Capital gains from bond holdings were NOK 3 million in the quarter, compared with capital losses of NOK 24 million in the fourth quarter of 2024. Capital losses from equities amounted to NOK 6 million, compared with capital losses of NOK 4 million in the fourth quarter of 2024. No change in value for fixed-rate lending, compared with a negative change in value of NOK 8 million in the same quarter last year. Income from foreign exchange and interest rate business for customers amounted to NOK 9 million in the quarter, NOK 3 million less than in the same quarter last year.

Other income excluding financial instruments increased by NOK 5 million compared with the fourth quarter of 2024. The increase was mainly attributable to income from asset management and money-transfer services.

Expenses
Operating expenses amounted to NOK 244 million for the quarter, which is NOK 9 million higher than for the same quarter last year. Personnel expenses were NOK 2 million lower compared with the same period last year and totalled NOK 129 million. Other operating expenses increased by NOK 11 million from the same period last year.  

Provisions for expected credit losses and credit-impaired commitments 
Losses on loans and guarantees amounted to NOK 24 million in the quarter (NOK 21 million), corresponding to 0.09 per cent of average assets (0.08 per cent of average assets). Receipts on losses in the corporate segment amounted to NOK 2 million in the quarter, while receipts on losses in the retail segment amounted to NOK 21 million.

PRELIMINARY FINANCIAL STATEMENTS FOR 2025
Sparebanken Møre’s profit before tax for 2025 amounted to NOK 1,350 million, or 1.26 per cent of average assets, compared with NOK 1,426 million, or 1.43 per cent, for 2024.

Profit after tax for 2025 amounted to NOK 1,030 million, or 0.97 per cent of average assets, compared with NOK 1,086 million, or 1.09 per cent, for 2024.

Return on equity was 12.5 per cent for 2025, compared with 13.7 per cent for 2024, and the cost income ratio was 41.6 per cent, compared with 39.8 per cent for 2024.  Earnings per equity certificate were NOK 9.57 (NOK 9.95) for the Group and NOK 9.28 (NOK 9.55) for the parent bank. 

Net interest income
Net interest income totalled NOK 2,014 million (NOK 2,071 million) or 1.89 per cent (2.08 per cent) of average assets.

Interest rate margins on deposits contracted in both the retail and corporate markets compared with 2024. The lending margin for the corporate market has contracted somewhat compared with 2024, while for the retail market it has slightly improved.

Other income
Other income was NOK 376 million in 2025 (0.35 per cent of average assets). This is an increase of NOK 46 million compared with 2024.

Dividends amounted to NOK 6 million, compared with NOK 14 million in 2024. Capital gains from bond holdings were NOK 25 million, compared with losses of NOK 8 million in 2024. Capital gains on equities totalled NOK 1 million, compared with capital losses of NOK 9 million in 2024. Income from other financial instruments decreased by NOK 19 million compared with 2024.

Other income, excluding financial instruments, increased by NOK 30 million compared with 2024.

See Note 7 for a specification of other income.

Expenses
Total expenses were NOK 993 million, which is NOK 38 million higher than in 2024. Personnel expenses increased by NOK 13 million compared with 2024 and were NOK 538 million. Staffing has been reduced by 9 FTEs in the past 12 months to 393 FTEs. Other operating expenses were NOK 25 million higher than in 2024. See Note 8 for a specification of expenses.

The cost income ratio for 2025 was 41.6 per cent, which represents an increase of 1.8 percentage points compared with 2024.

Provisions for expected credit losses and credit-impaired commitments 
The accounts were charged NOK 47 million in losses on loans and guarantees in 2025, while the accounts for 2024 were charged NOK 20 million.

At the end of 2025, provisions for expected credit losses totalled NOK 263 million, equivalent to 0.29 per cent of gross loans and guarantee commitments (NOK 263 million or 0.29 per cent).  Of the total provision for expected credit losses, NOK 38 million relates to credit-impaired commitments more than 90 days past due (NOK 40 million), which represents 0.04 per cent of gross loans and guarantee commitments (0.04 per cent), while NOK 89 million relates to other credit-impaired commitments (NOK 76 million), corresponding to 0.10 per cent of gross lending and guarantee commitments (0.09 per cent).

Net credit-impaired commitments (commitments more than 90 days past due and other credit-impaired commitments) have decreased by NOK 116 million in the past 12 months. At year end 2025, the corporate market accounted for NOK 119 million of net credit-impaired commitments and the retail market NOK 160 million. In total, this represents 0.30 per cent of gross loans and guarantee commitments (0.45 per cent). 

Lending to customers
At the end of 2025, net lending to customers amounted to NOK 89,469 million (NOK 86,875 million). In the past 12 months, gross customer lending has increased by a total of NOK 2,594 million, equivalent to 3.0 per cent. Retail lending has increased by 3.1 per cent and corporate lending has increased by 2.7 per cent in the past 12 months. Retail lending accounted for 66.5 per cent of lending at year end 2025 (66.4 per cent).

Customer deposits 
Customer deposits have increased by NOK 3,785 million, or 7.6 per cent, in the past 12 months. At year end 2025, deposits amounted to NOK 53,335 million (NOK 49,550 million). Retail deposits have increased by 4.5 per cent in the past 12 months, while corporate deposits and public sector deposits have increased by 12.6 per cent. The retail market’s relative share of deposits amounted to 59.1 per cent (60.8 per cent), while deposits from the corporate market and public sector accounted for 40.9 per cent (39.2 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 177 per cent (167 per cent) for the Group and 169 per cent (150 per cent) for the parent bank at the end of the year.

The NSFR ended at 123 per cent (122 per cent) at the end of 2025 (consolidated figure), while the bank’s and Møre Boligkreditt AS’s NSFRs ended at 126 per cent (122 per cent) and 109 per cent (110 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 59.4 per cent (56.9 per cent) at the end of 2025, and this is within the established target corridor.

Total net market financing amounted to NOK 42.5 billion at the end of the year. Senior bonds with a remaining term to maturity of more than 1 year have a weighted remaining term to maturity of 2.15 years, while covered bond funding through Møre Boligkreditt AS correspondingly has a weighted remaining term to maturity of 3.21 years – overall for market funding in the Group (inclusive of T2 and T3) the remaining term to maturity is 3.03 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 37,590 million at year end, which corresponds to 41.9 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 method, for credit risk. Market risk calculations are based on the standard method and operational risk calculations on the basic method. The use of IRB involves comprehensive requirements for the bank’s organisation, expertise, risk models and risk management systems.

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 deducted approvals for institutions had 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.

In January 2025, a new application was submitted for the acquisition of equity certificates. Sparebanken Møre received a response to this application on 25 February 2025. New permission to acquire equity certificates was granted for a total amount of up to NOK 42 million. Authorisation was granted on the condition that the buybacks would not reduce CET1 capital by more than NOK 42 million. Sparebanken Møre deducted NOK 42 million from CET1 capital from when the date authorisation was granted and to when it expired on 30 June 2025. On 7 July 2025, a new application was submitted for the acquisition of equity certificates. A response to the application was received on 24 October 2025. Authorisation was granted on the condition that the buybacks would not reduce CET1 capital by more than NOK 59.8 million. Sparebanken Møre deducted NOK 59.8 million from CET1 capital between the date authorisation was granted and the date authorisation expired on 31 December 2025.

At the end of 2025 the CET1 capital ratio was 17.7 per cent (17.2 per cent). This is 1.51 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 21.5 per cent (21.1 per cent), and Tier 1 capital was 19.5 per cent (19.0 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 (P2G) margin must be met with CET1 capital.

The leverage ratio (LR) at year end 2025 was 7.2 per cent (7.4 per cent). The regulatory minimum requirement (3 per cent) was met by a good margin. 

MREL
On 1 January 2025, the Financial Supervisory Authority of Norway set Sparebanken Møre’s effective MREL requirement at 35.7 per cent of the risk-weighted assets at any given time. The minimum subordination requirement was set at 28.7 per cent. However, on 19 December 2025, the Financial Supervisory Authority of Norway set a new MREL requirement of 35.7 per cent and a minimum subordination requirement of 26.2 per cent, applicable from 1 January 2026. At the end of the year, Sparebanken Møre’s actual MREL level was 50.9 per cent, while the level of subordination was 36.9 per cent of the risk-weighted assets.

Sparebanken Møre has issued NOK 4,903 million in subordinated bond debt at the end of 2025.

SUBSIDIARIES 
The aggregate profit of the bank’s subsidiaries amounted to NOK 201 million after tax in 2025 (NOK 172 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 2025, the company had nominal outstanding covered bonds of NOK 30.6 billion. Around 38 per cent were 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 195 million to the Group’s result in 2025 (NOK 140 million).

Møre Eiendomsmegling AS provides real estate brokerage services to both retail and corporate customers. The company contributed NOK -3 million to the result in 2025 (NOK 0 million). At year end, the company employed 21 full-time equivalents. 

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 9 million to the result in 2025 (NOK 3 million). The companies have no staff. 

EQUITY CERTIFICATES
At year end 2025, there were 7,614 holders of Sparebanken Møre's equity certificates (EC). The proportion of ECs owned by foreign nationals and entities amounted to 4 per cent at the end of the year. 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 December 2025, the bank owned 231,141 ECs (including 50,000 ECs 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 fourth quarter of 2025, equity certificate capital accounted for 49.1 per cent of the bank’s total equity.

DIVIDEND POLICY
The aim of Sparebanken Møre is to achieve financial results which provide a good and stable return on the bank’s equity capital. The results should ensure that the owners of the equity receive a competitive long-term return in the form of cash dividends and capital appreciation on their equity.

Dividends consist of cash dividends for equity certificate holders and dividend funds for local communities. The proportion of profits allocated to dividends is in line with the bank’s capital strength. Unless the bank’s capital strength dictates otherwise, it is expected that about 50 per cent of this year’s surplus can be distributed as dividends.

Sparebanken Møre’s allocation of earnings should ensure that all EC holders are guaranteed equal treatment.

PROPOSED ALLOCATION OF PROFIT FOR THE YEAR
Please see the provisions on the distribution of profits in the Financial Institutions Act, including section 10-17, and Sparebanken Møre’s dividend policy. It is proposed that 73.1 per cent of the Group’s profit be distributed as cash dividends to equity certificate holders and dividend funds for local communities.

Based on the accounting breakdown of equity in the parent bank between equity certificate capital and the primary capital fund, 49.11 per cent of the profit will be allocated to equity certificate holders and 50.89 per cent to the primary capital fund. The Group posted earnings per equity certificate of NOK 9.57 in 2025 (NOK 9.28 in the parent bank). The Board of Directors is also planning to propose to the Annual General Meeting is that the cash dividend per equity certificate for the 2025 financial year be set at NOK 7.00, which will come to NOK 348.6 million in total. The corresponding provision for dividend funds for local communities will amount to NOK 361.2 million.

Proposed allocation of profit in the parent bank (figures in NOK millions):
Profit for the year                                                                             1,000
Share allocated to hybrid Tier 1 instrument holders                            60
Dividend funds (75.5 per cent):
To cash dividends                                                                   349
To dividend funds for the local community                            361              710
Strengthening of equity (24.5 per cent):
To the dividend equalisation fund                                            113
To the primary capital fund                                                       117          230
Total allocated                                                                                1,000

FUTURE PROSPECTS 
US policy was a key topic throughout 2025. The financial markets were particularly focused on the direction of the new administration’s trade policy. Although its trade policy gradually took shape during the second half of the year, uncertainty related to areas including geopolitical issues remains. There is reason to believe that macro international politics will continue to cause fluctuations in the financial markets going forward.

The Norwegian economy has appeared robust in the face of the increased international uncertainty. While the current upturn in the Norwegian economy appears to be somewhat less powerful than previously thought, a number of factors still point in a positive direction. Unemployment remains low and activity levels continue to rise in several industries. Household purchasing power has gradually strengthened and is expected to increase further. This is contributing to growth in the Norwegian mainland economy.

In Nordvestlandet, activity levels are holding up well and unemployment remains somewhat lower than in the rest of the country. The maritime cluster is enjoying good demand, and the shipyards have solid order books. This is having ripple effects for the wider economy.

Sparebanken Møre will continue to be a strong, committed supporter of the Bank's customers while delivering good, sustainable returns for its investors. To achieve this, the bank will continue to focus on efficient, sound operations in 2026 as well.

The bank’s return on equity for 2025 ended the year at 12.5 per cent, while its cost income ratio was 41.6. Sparebanken Møre’s long-term financial performance targets are a return on equity of above 13 per cent and a cost income ratio of less than 40.

Ålesund, 31 December 2025
28 January 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
BJØRN FØLSTAD

TROND LARS NYDAL, CEO