SpareBank 1 SMN: Adjusted Pillar 2 requirement after evaluation, SREP 2018

With reference to Financial Institutions Act 2015 Section 13-6, 7^th point, 2^nd paragraph, The Financial Supervisory Authority of Norway has made the following resolution:

SpareBank 1 SMN shall have core capital above the minimum and buffer requirements equaling 1.9 per cent of risk weighted assets (Pillar 2 requirement), but no less than 1,794 million NOK. This is a reduction of 0.3 precentage point from 2.1 % required in 2016. The requirement shall cover risks that the bank is exposed to and that are not, or just partially, covered by Pillar 1. The Pillar 2 requirments shall be fulfilled with core equity. SpareBank 1 SMNs CET1-requirement will be 13.9 % by the end of 1^st quarter 2019.

SpareBank 1 SMN had a CET1 ration of 14.9 % by the end of 3^rd quarter 2018. The bank considers itself well capitalized in relation to the current capital requirements.

Contact persons:

CFO Kjell Fordal, [phone]

CRO Ola Neråsen, [phone]

This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)

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Source: SpareBank 1 SMN via Globenewswire