SpareBank 1 Østlandet : Factbook and APM

F O R T R O L I G

Alternative performance measures

SpareBank 1 Østlandet's alternative performance measures (APMs) have been prepared in accordance with the ESMA guidelines on APMs and are indicators aimed at providing useful additional information to the financial statements. These performance measures are either adjusted indicators or measures that are not defined under IFRS or any other legislation and may not be directly comparable with the corresponding measures from other companies. The APMs are not intended to be a substitute for accounting figures drawn up according to IFRS and should not be given more emphasis than these accounting figures, but they have been included in financial reporting to give a fuller description of the Bank's performance. The APMs also represent important metrics for how the management is running the business.

Non-financial indicators and financial ratios defined by IFRS or other legislation are not defined as APMs. SpareBank 1 Østlandet's APMs are used both in the overview of main figures and in the directors' report, and in results presentations and prospectuses. All APMs are shown with corresponding comparative figures for previous periods.

Lending and deposit margins for the parent bank are calculated in relation to the daily average of loans to and deposits from customers. For all other main figures and APMs that are calculated using average balances, the average balance is calculated as the average of the opening balance for the current period and the closing balance for each of the quarters in the period.

Alternative performance	Definition and rationale
measures
	after tax - Interest expenses on hybrid capital
Profit after tax incl. interest hybrid
capital	The key figure shows Result after tax adjusted for interest on hybrid capital. Hybrid capital is
	according to IFRS classified as equity and interest expences are booked as an equity
	transaction. Hybrid capital has many similarities with debt items and differs from other equity
	in that it is interest-bearing and is not entitled to dividend payments. The key figure shows
	what profit after tax would have been if the interest expenses related to the hybrid capital had
	been recognized in the income statement.
	ℎ
		ℎ
Return on equity capital
	The return on equity after tax is one of SpareBank 1 Østlandet's most important financial
	measures and provides relevant information about the company's profitability in that it
	measures the company's profitability in relation to the capital invested in the business. The
	result is corrected for interest on hybrid capital, which is classified as equity under IFRS, but
	which it is more natural in this context to treat as debt, as hybrid capital is interest-bearing
	and is not entitled to dividend payments.
Result from core operations

Result from core operations provides relevant information about the profitability of the Bank's core business.

!

!

Cost-income-ratio

This indicator provides information about the relationship between revenue and costs, and is a useful measure to assess the cost-effectiveness of the enterprise. It is calculated as total operating costs divided by total revenue.

" ℎ	and
		#$ 3 &'

Lending margin

The loan margin is calculated for the retail and corporate market divisions and provides information on the profitability of the divisions' lending activities. Loans transferred to covered bond companies are included in the selection as they are included in the total lending activity.

F O R T R O L I G

F O R T R O L I G

Alternative performance		Definition and rationale
measures
		#$ 3 &' " ℎ
Deposit margin
The deposit margin is calculated for the retail and corporate market divisions and provides
	information on the profitability of the divisions' deposit activities.
		(	) '
Net interest margin
The net interest margin is calculated for the retail and corporate market divisions and
	provides information on the profitability of the divisions' overall lending and deposit activities.
	Loans transferred to covered bond companies are included in the selection as they are
	included in the total lending activity.
		) *
Net interest income inclusive of
commissions from covered bond
Loans transferred to covered bond companies are part of total lending, but the income and
companies
	expenses associated with these loans are recognised as commission income. The indicator is
	presented because it gives a good impression of net income from the overall lending and
	deposit activities.
			Total Assets
Total assets

Adjusted total assets

Gross loans to customers including loans transferred to covered bond companies

Deposit to loan ratio

Total assets is an established industry-specific name for all assets

! ) (

Total assets is an established industry-specific name for all assets plus loans transferred to covered bond companies included in the lending business.

( ) (

Loans transferred to covered bond companies are subtracted from the balance sheet, but are included in the total lending business.

'

+

The deposit coverage ratio provides relevant information about SpareBank 1 Østlandet's financing mix. Deposits from customers are an important means of financing the Bank's lending business and the indicator provides important information about the Bank's dependence on market financing.

'
+ )(
Deposit to loan ratio including loans
transferred to covered bond companies The deposit coverage ratio provides information about the financing mix in the overall lending
	business. Deposits from customers are an important means of financing the Bank's lending
	business and the indicator provides important information about the dependence of the overall
	lending business on market financing.
+			1
+	12	ℎ
Growth in loans during the last 12
months

This indicator provides information about activity and growth in the Bank's lending activity.

	+	) (		*#
Growth in loans including loans	+ 12 ℎ	) (		*# 12 ℎ 1
transferred to covered bond companies
(CB) in the last 12 months	This indicator provides information about activity and growth in the Bank's total lending
	activity. The Bank uses the covered bond companies as a source of funding, and the indicator
	includes loans transferred to the covered bond companies to highlight the activity and growth
	in overall lending including these loans.

F O R T R O L I G

F O R T R O L I G

Alternative performance

Definition and rationale

measures

'

1

'

12

ℎ

Growth in deposits in the last 12

months

This indicator provides information about the activity and growth of the depositing business

which is an important part of financing the Bank's lending activity.

(

+

Impairment on loans as a percentage

of gross loans

The indicator shows the impairment loss in relation to gross lending and provides relevant

information about the company's impairment losses in relation to lending volume. This

provides useful additional information to the recognised impairment losses as the cost is also

viewed in the context of lending volume and is thus better suited for comparison with other

(

2

Loans to and receivables from

+

customers in stage 2, percentage of

gross loans

The indicator provides relevant information about the Bank's credit risk and is considered as

useful additional information to the notes on losses.

(

3

Loans to and receivables from

+

customers in stage 3, percentage of

gross loans

The indicator provides relevant information about the Bank's credit risk and is considered as

useful additional information to the notes on losses.

+

ℎ

90

Commitments in default as percentage

+

of gross loans

The indicator provides relevant information about the Bank's credit risk and is considered as

useful additional information to the notes on losses.

+

Other doubtful commitments as

+

percentage of gross loans

The indicator provides relevant information about the Bank's credit risk and is considered as

useful additional information to the notes on losses.

)

Net commitments in default and other

+

doubtful commitments in percentage of

gross loans

The indicator provides relevant information about the Bank's credit risk and is considered as

useful additional information to the notes on losses.

8

8

Loan loss impairment ratio for

+

ℎ

90

defaulted commitments

The indicator provides relevant information about the Bank's credit risk and is considered as

useful additional information to the notes on losses.

8

8

Loan loss impairment ratio for doubtful

+

commitments

The indicator provides relevant information about the Bank's credit risk and is considered as

useful additional information to the notes on losses.

!

!

Equity ratio

The indicator provides information about the company's unweighted solvency ratio.

F O R T R O L I G

F O R T R O L I G

Alternative performance

Definition and rationale

measures

! 9* &

: EC certificate ratio

Number of Equity certificates issued

Book equity per EC

The indicator provides information about the value of the book equity per equity certificate.

This allows the reader to assess the reasonableness of the quoted price for the equity

certificate. It is calculated as the equity certificate holders' share of the equity at the end of

the period divided by the number of equity certificates.

( 9*

9

9*

Price/Earnings per EC

The indicator provides information on earnings per equity certificate against the exchange

price on the relevant date, helping to assess the reasonableness of the price for the equity

certificate. It is calculated as the price per equity certificate divided by annualised earnings

per equity certificate.

( 9*

Price/book equity

#H

9*

The indicator provides information about the book value of the equity per equity certificate

against the price at any given time. This allows the reader to assess the reasonableness of

the quoted price for the equity certificate. It is calculated as the price per equity certificate

divided by book equity per equity certificate (see definition of this measure above).

H

Average LTV (Loan to value)

The indicator provides information about the loan-to-value ratio in the lending portfolio and is

relevant for assessing risk of loss in the lending portfolio.

Loans transferred to SpareBank 1 Boligkreditt AS og SpareBank 1 Næringskreditt AS

and thus derecognised from the balance sheet

Loans transferred to covered bond

(CB) companies

Loans transferred to covered bond companies are subtracted from the balance sheet, but are

included in the total lending business. The indicator is used in calculating other APMs.

!

ℎ 365 366

ℎ

Act/Act

Act/Act is used to annualise the results figures included in the indicators. Results figures are

annualised in the indicators to make them comparable with figures for other periods.

Notable items

The indicator is used to calculate the underlying banking activity, which is shown as a

separate APM.

&T ℎ

+

U

9**

9** ℎ

Earnings per average equity certificate

The indicator shows the equity capital certificate holders' share of profit after tax distributed

by average number of equity capital certificates during the accounting period.

&T

ℎ +U 9**

Diluted earnings per average equity

9** ℎ

)

9** ℎ

certificate

The indicator shows the equity capital certificate holders' share of profit after tax distributed

by the sum of average number of equity capital certificates during the accounting period and

the number of equity capital certificates issued after the accounting period.

!

$

Total operating expenses before

Restructuring costs in connection with reorganization of the business are included in total

restructuring costs

operating expenses, but these costs are excluded when the business sets targets for growth in

operating expenses. These costs are kept out of line for growth figures to be comparable over

time. The key figure is presented as it provides a good basis for calculating underlying growth

in expenses.

F O R T R O L I G

		F O R T R O L I G
Alternative performance measures	1Q-2024	1Q-2023
	2024-01-01	2023-01-01
	2024-03-31	2023-03-31
Number of days	91	90
Profit after tax	860	652
Interest expenses on hybrid capital	19	15
Tax on interest expenses on hybrid capital	0	0
- Interest expenses on hybrid capital after tax	0	0
Profit after tax excl. interest on hybrid capital	840	636
Equity	20 661	19 258
- Hybrid capital	1 500	1 000
Equity excl. hybrid capital	19 161	18 258
Accumulated average equity excl. hybrid capital	19 410	18 592
Isolated averege equity excl. hybrid capital	19 410	18 592
Annualized profit after tax excl. interest on hybrid capital after tax	3 380	2 581
Diveded by average equity excl. hybrid capital	19 410	18 592
Return onequity capital	17,4 %	13,9 %
Total operating expenses	599	529
Total income	1 604	1 325
Cost-income-ratio	37,3 %	39,9 %
Grossloansto customers	134 465	127 896
+ Loanstransferred to SpareBank 1 Boligkreditt AS	63 903	61 178
+ Loanstransferred to SpareBank 1 Næringskreditt AS	1 040	1 213
Gross loans including loans transferredto covered bond companies	199 408	190 287
Grossloansto customers at the end of the period	134 465	127 896
-Gross loans to customersat the end of the same period last year	127 896	124 053
Growth in loansduring the last 12 month in NOK mill.	6 569	3 843
Divided by gross loansto customers at the end of the same period last year	127 896	124 053
Growth inloans during the last 12 months in per cent	5,1 %	3,1 %
Grossloansto customers incl. Loans transferred to covered bond companiesat the end of the period	199 408	190 287
-Gross loans to customers incl. Loans transferred to covered bond companies at the end of the same period last year	190 287	177 831
Growth in loans incl. Loans transferred to coverd bond companies in NOK mill.	9 121	12 457
Divided by gross loansto customers incl. Loans transferred to covered bond companiesat the end of the same period last year	190 287	177 831
Growth inloans incl. Loans transferred to covered bond companies during the last 12 months in per cent	4,8 %	7,0 %
Grossloansto customers at the end of the period	134 465	127 896
-Gross loans to customersat the end last quarter	133 681	130 851
Growth in loansduring the last 12 month in NOK mill.	784	-2 955
Divided by gross loansto customers at the end of last quarter	133 681	130 851
Growth inloans during the last quarter	0,6 %	-2,3 %
Grossloansto customers incl. Loans transferred to covered bond companiesat the end of the period	199 408	190 287
-Gross loans to customers incl. Loans transferred to covered bond companies at the end of last quarter	198 645	188 729
Growth in loans incl. Loans transferred to coverd bond companies in NOK mill.	763	1 558
Divided by gross loansto customers incl. Loans transferred to covered bond companieslast quarter	198 645	188 729
Growth inloans incl. Loans transferred to covered bond companies during the last quarter	0,4 %	0,8 %

F O R T R O L I G

F O R T R O L I G

Deposits from and liabilities to customers	108 193	100 400
Dividet by gross loans to and receivables from customers	134 465	127 896
Deposit to loan-ratio	80,5 %	78,5 %
Deposits from and liabilities to customers	108 193	100 400
Divided by grossloans to customers incl. Loans transferred to covered bond companies	199 408	190 287
Deposit to loan-ratio incl. loans transferred to covered bond companies	54,3 %	52,8 %
Deposits from customers at the end of the period	108 193	100 400
- Deposits from customers at the end of the same period last year	100 400	93 924
Growth in deposits in the last 12 months in NOK mill	7 793	6 476
Diveded by deposits from customers at the end of the same period last year	100 400	93 924
Growth in deposits in the last 12 months in per cent	7,8 %	6,9 %
Deposits from customers at the end of the period	108 193	100 400
- Deposits from customers at the end of the last quarter	106 535	98 813
Growth in deposits in the last quarter in NOK mill	1 658	1 587
Diveded by deposits from customers at the end of last quarter	106 535	98 813
Growth in deposits in the last quarter in per cent	1,6 %	1,6 %
Total assets	180 275	169 776
Accumulated average total assets	178 304	170 161
Isolated averege total assets	178 304	170 161
Total assets	180 275	169 776
+ Loans transferred to SpareBank 1 Boligkreditt AS	63 903	61 178
+ Loans transferred to SpareBank 1 Næringskreditt AS	1 040	1 213
Total assets incl. Loans transferred to covered bond companies (Business capital)	245 219	232 167
Losses on loans and guarantees	33	49
Losses on loans and guarantess annulized	133	198
Losses on loans and guarantees	133	198
Divided by grossloans to customers	134 465	127 896
Losses on loans and guarantees as a percentageof gross loans	0,1 %	0,2 %
Loans and advances to customers at Stage 2	14 202	11 531
Divided by grossloans to customers	134 465	127 896
Loans and advances to customers at Stage 2 in percentage of gross loans	10,6 %	9,0 %
Loans and advances to customers at Stage 3	1 953	812
Divided by grossloans to customers	134 465	127 896
Loans and advances to customers at Stage 3 in percentage of gross loans	1,5 %	0,6 %
Gross defaulted commitments for more than 90 days	397	294
Divided by grossloans to customers	134 465	127 896
Gross defaulted commitments in percentage of gross loans	0,3 %	0,2 %
Gross doubtful commitments (not in default)	1 611	521
Divided by grossloans to customers	134 465	127 896
Gross doubtful commitments (not in default) in percentage of gross loans	1,2 %	0,4 %
Net defaulted commitments	342	236
+ Net doubtful commitments	1 424	492
= Net defaulted and doubtful commitments	1 765	728
Divided by grossloans to customers	134 465	127 896
Net commitments in default and other doutful commitments, percentage of gross loans	1,3 %	0,6 %

F O R T R O L I G

		F O R T R O L I G
Individual impairments on defaulted commitments	56	58
Gross defaulted commitments for more than 90 days 2)	397	294
Loan loss impairment ratio on defaulted commitments	14 %	20 %
Individual impairments on doubtful commitments	188	30
Gross doubtful commitments (not in default)	1 611	521
Loan loss impairment ratio on doubtful commitments	12 %	6 %
Total equity capital	20 661	19 258
Divided by total assets	180 275	169 776
Equity ratio	11,5 %	11,3 %
Total equity capital	20 661	19 258
- Minority interest	271	272
- Provision for gifts	0	0
-Hybrid capital	1 500	1 000
= Book equity	18 890	17 986
Multiply by equity capital certificate ratio	69,95 %	70,04 %
= Equity certificate owners share of equity	13 213	12 598
Divided by number of EC's issued	115 829 789	115 829 789
Book equityper EC	114,07	108,76
Profit after tax for majority interest	860	652
Minority interest	7	8
Interest expenses on hybrid capital	19	15
Profit after tax for majority interest	833	628
Multiply by equity capital certificate ratio	69,95 %	70,04 %
= Equity capital owner's share of profit after tax	583	440
Divided by number of EC's issued	115 829 789	115 829 789
Earnings per equity certificate (in NOK)	5,03	3,80
Earnings per equity certificate annualized	20,23	15,41
Market price (in NOK)	124,40	113,80
Divided by earnings per EC	20,23	15,41
Price/Earnings per EC	6,15	7,39
Market price (in NOK)	124,40	113,80
Divided by book equity per EC	114,07	108,76
Price/Book equity	1,09	1,05
Profit after tax for controlling interest	833	628
Multiply by equity capital certificate ratio	69,95 %	70,04 %
= Equity capital owner's share of profit after tax	583	440
Divided by number of EC's issued	115 829 789	115 829 789
Diluted earnings per equity certificate (in NOK)	5,03	3,80
Number of days before emission	-	-
Number of days after emission	91	90
Number of equity certificates by the end of the period	115 829 789	115 829 789
Average equity certificates	115 829 789	115 829 789
Profit after tax for controlling interest	583	440
Dividet by average equity certificates	115 829 789	115 829 789
Earnings per average equity certificate (in NOK)	5,03	3,80
Profit after tax for controlling interest	583	440
Divided by average equity certificates+Equity certificates issued next year that is entitled to dividends	115 829 789	115 829 789
Diluted earnings earnings per average equity certificates	5,03	3,80

F O R T R O L I G