SRBNK: SpareBank 1 SR-Bank - Supervisory Review and Evaluation Process (SREP)

The Financial Supervisory Authority of Norway ("the FSA") regularly carries out a Supervisory Review and Evaluation Process,  "SREP", where they evaluate SpareBank 1 SR-Bank ASA’s risks and capital needs. The SREP includes a decision regarding the Pillar 2 Requirement and the Pillar 2 Guidance. SpareBank 1 SR-Bank ASA has now received this year's decision from the FSA. The Requirement is meant to cover risks which the bank is exposed to, and which is not, or only partially, covered by the Pillar 1 regulation. The Pillar 2 Requirement must be met with common equity tier 1 (CET1) capital.

SpareBank 1 SR-Bank ASA’s new Pillar 2 Requirement which comes in addition to the minimum requirements and buffer requirements under Pillar 1 is 1.6 % of risk weighted assets (RWA). The requirement is reduced by 0,1% since the previous SREP-assessment. In addition, the FSA requires a temporary buffer of 0.5 % of RWA, until the bank’s current application for IRB-model adjustment has been approved.

Further, the FSA expects SpareBank 1 SR-Bank ASA to maintain a Pillar 2 Guidance, i.e. a margin in the form of CET1 capital (“management buffer”), that exceeds the total capital requirement with 1.25 %. This is an increase of 0,25% since the previous assessment form the FSA.

The FSAs decision applies from 30th April 2022.

Stavanger, 29 April 2022

Contact:

Stian Helgøy, Vice President Investor Relations, Tel. +47 906 52 173

Inge Reinertsen, CFO, Tel. +47 909 95 033

This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.