SpareBank 1 Sørøst-Norges profit in the fourth quarter of 2023 was NOK 301
million almost the same as third quarter. For the full year 2023 the result is
NOK 1 310 million, an increase of NOK  244 million, from the corresponding year
of 2022 (pro forma). The result is driven by a positive development in net
interest income, but the contribution from SpareBank 1 Group has a negative
impact. The loan growth is still low but has slightly improved towards the end
of the year. The quality of the loan portfolio is considered good with very low
losses in 2023.

The Board of Directors is proposing dividends/gifts of NOK 543 million,
corresponding to NOK 3.88 per equity certificate and NOK 352 million in gift
funds for community capital. The total proposed dividend for 2023 NOK 895
millioner or a dividend share of 68 percent of the group result and 64 percent
of the parent banks result. The dividends and gifts calculated are in accordance
with the merger plan with SR-Bank.

The return on equity for the quarter was 9.3 %, compared with 9.4% in the
previous quarter. Taking into account one-time costs, the return on equity was
9.8% this quarter.  Increased net interest income for the quarter. The total
operation cost have increased in the quarter mainly due to costs to related to
bonuses, merger expenses, pensions (transition to ITP for 65 employees) as well
as consultant expenses related to the crisis management project. The results is
also affected by a negative outcome from SpareBank 1 Gruppen.  A review of the
loss provision model related to adjustments of safety margins on LGD
calculations and changes in scenario weighting in the corporate market portfolio
has resulted in recognition of losses both in the quarter and in 2023.

Return on equity for the hole year 10.2% (8.8% pro forma) and adjusted for
one-time effects 10.4% (9.6% pro forma)

Net interest income including commission income from mortgage credit
institutions grew by 3% this quarter and 21% in the past 12 months. In the
current year, the policy rate has been increased from 2.75 % to 4.50 %. The bank
has adjusted customer interest rates based on changes in the policy rate set by
Norges Bank. The most recent interest rate change in December 2023 took effect
from 24 January 2024 for corporate customers and from 10 March 2024 for retail
customers.

Other commission and other income (pro forma) have reduced by NOK 3 million this
quarter and NOK 16 million in 2023. This decline is primarily due to a reduction
in payment processing, securities trading, and management, in addition to low
activity in real estate brokerage.

Net profit from finance has decreases by NOK 3 million compared with the
previous quarter and NOK 77 million in 2023. The decline in the quarter and in
2023 is primarily due to a negative financial result in SpareBank 1 Gruppen of
NOK -17 million in the quarter and NOK -11 million for 2023. SpareBank 1 Gruppen
AS has conducted a valuation of the jointly controlled company, Kredinor AS. The
updated valuation results in an impairment of the ownership stake and has a
negative impact on SpareBank 1 Gruppen's parent and consolidated net profit of
NOK 769 million in the 4th quarter of 2023 and for the year 2023.  A good result
for Fremtind AS and SpareBank 1 Forsikring AS, however, contributes positively
and offsets parts of the write-down of the equity stake in Kredinor.
Compared to the previous year, the operating expenses in the group have
increased by NOK 90 million (7%), excluding one-time costs. Operating expenses
in the parent bank during the same period have increased by NOK 66 million (7%).
The increase is mainly due to higher costs of the alliance collaboration, ICT
costs, consultant expenses for implementation and compliance with regulatory
requirements, as well as underlying salary and price growth. The increased
operating expenses in subsidiary companies are a result of the acquisition of
Grenland Gruppen AS, with full effect from 2023, as well as general price and
wage inflation.


The Group's financial target is for a cost-income ratio of less than 40%. The
cost-income ratio excl. one-time cost per 4th quarter was 43.7% (44.8%) for the
Group and 35,8% (39.6%) for the parent bank excluding one-time costs.

The loan growth has been weak in the quarter and over the past year. Lending
growth in the quarter of 0.2 % compared with -0.6% in the same period the year
before. Lending growth for 2023 was 0.1%, compared with 2.5% for 2022. The loan
portfolio is considered to have good quality, as evidenced by low loan losses.
99 percent of the loan portfolio is classified in stage 1 and stage 2. Income
recognition of losses in the quarter and in 2023 amounted to NOK 42 million and
NOK 57 million respectively. The confirmed losses amount to a net of NOK 2
million for the year. 
 
At the end of the year, the proportionally consolidated Common Equity Tier 1
capital ratio was 19.4% (19.5%) 

On October 26, 2023, the companies announced a plan for the merger of SpareBank
1 SR-Bank ASA and SpareBank 1 Sør-Norge, with the aim of implementation 1st July
2024.
-Due to capacity constraints with external partners, suppliers, and internally,
we believe it makes sense to allow the process more time. Therefore, we are
working towards completing the legal merger 1st October 2024, says CEO of
SpareBank 1 Sørøst-Norge, Per Halvorsen.
This assumes that the corporation has obtained the necessary regulatory
approvals by that time.

Highlights of the 4th quarter of 2023 (figures in brackets concern the 4th
quarter of 2022)
o	Ordinary profit after tax of NOK 301 million (NOK 343 million)
o	EPS group NOK 1,27 (1,46)
o	Return on equity 9.3% (10.9%), adjusted for one-time effects 9.8% (11.3%)
o	Net interest income, inclusive of mortgage credit institutions, of NOK 563
million (NOK 523 million) 
o	Net other commission and other income NOK 171 million (NOK 190 million)
o	Net income from financial assets NOK 6 million (NOK 129 million)
o	Profit contributions from SpareBank 1 Gruppen and BN Bank ASA of NOK -17
million (NOK 39 million) and NOK 16 million (NOK 11 million), respectively
o	Losses on loans of income NOK 42 million (costs NOK 29 million) 
o	Lending and deposit growth in the past quarter was 0.2% (-0.6%) and -1.2%
(-1.3%), respectively.
o	Common Equity Tier 1 capital ratio 19.4% (19.5%)

Highlights for 2023 (figures in brackets relate to pro forma for 2022)
o	Ordinary profit after tax of NOK 1 310 million (NOK 1 067 million) 
o	EPS group NOK 5.47 (NOK 4.29)
o	Return on equity 10.2% (8.8%), adjusted for one-time effects 10.4% (9.6%)
o	The Board is proposing a cash dividend for equity certificate holders of NOK
3.88 (4.10) per equity certificate, totalling NOK 543 million (NOK 574 million),
and gift funds for community capital amounting to NOK 352 million (NOK 372
million)
o	Net interest income, inclusive of mortgage credit institutions, of NOK 2 163
million (1 795 million) 
o	Net other commission and other income NOK 724 million (NOK 740 million)
o	Net income from financial assets NOK 100 million (NOK 177 million)
o	Profit contributions from SpareBank 1 Gruppen and BN Bank ASA of NOK -11
million (NOK 53 million) and NOK 55 million (NOK 43 million), respectively
o	Losses on loans of income NOK 57 million (costs NOK 40 million) 
o	Lending and deposit growth in the past quarter was 0.1% (2.5%) and -0.1%
(1.2%), respectively

The full quarterly report can be downloaded from the Bank's website
sparebank1sorost.no
*) Figures in brackets indicate the amount for the corresponding period in 2022
pro forma for SpareBank 1 Sørøst-Norge. 


Sandefjord, 08.02.2024 

For further information: 

Per Halvorsen, CEO, Tel. +47 934 07 441 
Roar Snippen, CFO/IR, Tel. +47 976 10 360


This information must be disclosed pursuant to section 5-12 of the Securities
Trading Act.