• Disclaimer This presentation contains forward-looking statements that reflect management’s current views with respect to certain future events and potential financial performance. Although SpareBank 1 SR-Bank believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ materially from those set out in the forward-looking statements as a result of various factors. Important factors that may cause such a difference for SpareBank 1 SR-Bank include, but are not limited to: (i) the macroeconomic development, (ii) change in the competitive climate, (iii) change in the regulatory environment and other government actions and (iv) change in interest rate and foreign exchange rate levels. This presentation does not imply that SpareBank 1 SR- Bank has undertaken to revise these forward-looking statements, beyond what is required by applicable law or applicable stock exchange regulations if and when circumstances arise that will lead to changes compared to the date when these statements were provided. 2 Digitalization and growth makes SR-Bank a finance Åsane Bergen Sotra group for the South of Norway Fana +5% Oslo 135 133 Husnes Stord 128 Ølen Aksdal +25% Haugesund 34 Karmsund 30 Kopervik Åkra 27 Finnøy +21% +63% 20 Jørpeland 18 19 Randaberg 17 17 Stavanger Sola +58% 12 Sandnes Ålgård 7 8 Bryne 5 Nærbø Varhaug Egersund Grimstad Rogaland Vestland Agder Oslo and Viken Other Flekkefjord (Lending volume in NOK billion ) mar.18 mar.19 mar.20 Kristiansand Lyngdal Farsund Mandal Based on the new structure of counties in Norway from 1 January 2020. 3 Good underlying operations and strengthened solidity, but results marked by impairments and reduced financial income 3.4% 5.3% Return on equity after tax Q1 2020 12 months lending growth Pre-tax profit is NOK 247 million Of which retail market 5.3% and corporate market 5.6% 42.3% 6.6% Cost to income Q1 2020 12 months deposit growth 41.5% excluding income on investment securities Of which retail market 8.4% and corporate market 4.5% NOK 560 million 17.7%* Impairments on gross lending Q1 2020 Common equity tier 1 capital ratio Impairments on loans and financial commitments equivalent 1.05% (annualized) *On 23 April 2020, the annual general meeting approved the board’s proposal that no dividend be paid out for 2019. At the same meeting, the board was authorised to make a decision about the distribution of a dividend, at some later point in time, of up to NOK 5.50 per share based on the bank’s approved annual financial statements for 2019. The 4 authorisation will remain valid until the next ordinary general meeting in 2021. Key figures and financial targets for 2020 CET 1 Growth in cost Growth in loan 17,0%* 17,7% 16,7% 11,2% 4,9% 5,3% 3,0% - 5,0% 1,5% < 0,0% 2019 Q1 2020 Target 2020 2019 Q1 2020 Target 2020 2019 Q1 2020 Estimate 2020 *The EU’s capital adequacy regulations (CRR/CRD IV) came into force on 31 December 2019. These entail, among other things, a reduction in the capital requirements for loans to small and medium-sized enterprises (SME) and the elimination of the so-called Basel I floor. 5 Key figures – quarterly development Return on equity CET 1 21,2% 16,2% 17,0%* 17,7%** 14,7% 14,4% 14,4% 10,5% 8,3% 3,4% Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Cost ratio Earnings per share 47,0% 4,48 42,7% 42,3% 39,0% 35,6% 3,52 2,32 1,90 0,86 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 *The EU’s capital adequacy regulations (CRR/CRD IV) came into force on 31 December 2019. These entail, among other things, a reduction in the capital requirements for loans to small and medium-sized enterprises (SME) and the elimination of the so-called Basel I floor. ** On 23 April 2020, the annual general meeting approved the board’s proposal that no dividend be paid out for 2019. At the same meeting, the board was authorised to make a decision about the 6 distribution of a dividend, at some later point in time, of up to NOK 5.50 per share based on the bank’s approved annual financial statements for 2019. The authorisation will remain valid until the next ordinary general meeting in 2021. Income statement Group Income Statement (MNOK) Q1 2020 Q4 2019 Q3 2019 Q2 2019 Q1 2019 Net interest income 1.081 1.062 1.019 968 938 Net commission and other income 346 359 332 384 341 Net income on investment securities -28 22 89 340 676 Total income 1.399 1.443 1.440 1.692 1.955 Total operating expenses 592 678 615 602 583 Operating profit before impairments 807 765 825 1.090 1.372 Impairments on loans and financial commitments 560 139 66 -19 49 Operating profit before tax 247 626 759 1.109 1.323 Tax expense 26 141 166 209 177 Net profit 221 485 593 900 1.146 7 Change in profit 31.03.2019 – 31.03.2020 138 10 1.323 -704 -9 247 -511 31.03.2019 Net interest income incl. Other income Net income on Total operating expenses Impairments on loans and 31.03.2020 commission from investment securities financial commitments covered bond companies 8 Key figures Q1 20 Q4 19 Q3 19 Q2 19 Q1 19 Return on equity after tax (%) 3,4 8,3 10,5 16,2 21,2 Net interest margin (%) 1,64 1,64 1,61 1,58 1,60 Impairments on loans in % of gross loans incl. covered bond companies 1,05 0,26 0,13 -0,04 0,10 Loans and financial commitments in Stage 3 in % of gross loans 1,67 1,53 1,55 1,43 1,40 incl. covered bond companies Cost to Income ratio 42,3 47,0 42,7 35,6 29,8 Annual growth in loans to customers, gross 5,3 4,9 6,8 7,3 8,7 incl. covered bond companies (%) Annual growth in deposit from customers (%) 6,6 4,3 1,9 -3,0 -0,6 Total assets (BNOK) 278,6 255,9 251,6 246,5 241,9 Portfolio of loans in covered bond companies (BNOK) 4,2 4,2 6,3 8,9 9,0 Risk weighted assets (BNOK)* 125,8 121,7 141,7 139,5 134,7 Liquidity Coverage Ratio (LCR) (%) 135 155 153 154 172 Earnings per share (NOK) 0,86 1,9 2,32 3,52 4,48 Book value per share (NOK) 90,55 89,90 87,60 85,44 86,55 *The EU’s capital adequacy regulations (CRR/CRD IV) came into force on 31 December 2019 and resulted in a ‘fracture’ in the historical RWA figures. 9 Consolidated income and cost profile Income profile Cost profile Net interest income* Total personnel expenses Net commission and other income +148 Total other operating expenses +9 1.427 583 592 1.279 1.421 1.427 1.352 1.351 343 1.279 678 239 244 353 343 333 323 602 615 592 333 373 583 282 239 245 240 244 1.084 1.068 1.084 946 946 979 1.028 344 348 344 357 375 396 348 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 31.03.2019 31.03.2020 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 31.03.2019 31.03.2020 *Income profile consists of net interest income, incl. commission income from covered bond companies, and net commission and other income excl. financial income. 10 Lending and deposit margins Lending margins* Deposit margins 2,92% 2,85% 2,81% 2,74% 2,73% 2,72% 2,77% 2,77% 2,73% 0,63% 0,53% 0,56% 0,41% 1,69% 1,50% 1,51% 1,50% 0,30% 0,24% 0,24% 1,40% 1,36% 1,36% 1,32% 1,36% 0,22% 0,22% 0,14% 0,08% 0,04% 0,05% -0,05% -0,09% -0,06% 0,03% -0,18% Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Corporate market Retail market Corporate market Retail market Definition: Average customer interest rate against 3-month moving average for 3-month NIBOR. *Lending margins include loan portfolio in covered bond companies. 11 Lending volume and 12 months growth Retail Market Corporate Market (incl. Capital Market) 17,8% 15,7% 12,2% 11,8% 9,6% 10,3% 4,5% 4,8% 4,8% 5,3% 5,6%* 3,0% 2,9% 3,2% 3,6% 4,0% 3,8% 5,2% 136 137 125 126 128 129 130 132 134 74 74 75 75 78 63 66 68 71 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Volume in NOK billion Growth % Volume in NOK billion Growth % Figures incl. loan portfolio in covered bond companies. *12 months lending growth in Corporate Market excluding currency effect is 3.2 % 12 Loan portfolio as at 31.03.2020 • Gross loans (incl.