SpareBank 1 SMN sets new common equity tier 1 capital target

SpareBank 1 SMN's board approved a new long-term target for its common equity Tier 1 capital, effective from December 31, 2025. This decision follows Finanstilsynet's new Pillar 2 requirement, as detailed in a separate stock exchange announcement on November 24, 2025. The new target is set at a minimum of 15.9 percent.

Additionally, a temporary Pillar 2 capital add-on of 0.7 percentage points, pending the approval and implementation of new IRB models for corporate clients, has been removed. Finanstilsynet approved these models, which were implemented during the fourth quarter of 2025, leading to the lapse of the temporary requirement.

While the new models increase risk weights for corporate clients and expand the calculation basis, the overall impact of the temporary capital requirement's removal and the increased calculation basis is estimated to be approximately neutral.