Notification of an order for correction from the Norwegian Financial Supervisory Authority

Notification of an order for correction from the Norwegian Financial Supervisory Authority

Issuer

Sparebanken Møre

In the afternoon on July 4th Sparebanken Møre has received an order for
correction from the Norwegian Financial Supervisory Authority.

Reference is made to stock exchange announcements from Sparebanken Møre on 28
February 2024 and 31 January 2024, which state that the extraordinary general
meeting of Sparebanken Møre on 28 February 2024 resolved that primary capital
equivalent to NOK 25,999,252.50 shall be converted into equity share capital by
the issuance of 360,750 equity certificates, and that the new equity
certificates shall be transferred free of charge to a savings bank foundation
with a non-profit purpose established in connection with the conversion
(Sparebankstiftelsen Sparebanken Møre). It was also decided that NOK 175 million
of previous years' allocated funds for gifts to charitable purposes will be
transferred to the new savings bank foundation.

In connection with the Norwegian Financial Supervisory Authority's (the "FSA")
consideration of the application for permission to establish the savings bank
foundation, the FSA has considered the bank's practice of recording unpaid gifts
for non-profit purposes as other liabilities in the bank's accounts. As of year
end 2023, NOK 175 million has been accounted for structural purposes and NOK 160
million for other gifts to charitable purposes. These funds are accounted as
other liabilities in the financial statements.

Sparebanken Møre understands the notification so that the FSA believes that
funds that have been set aside for gifts, but which have not been decided to be
distributed to gift recipients at the turn of the year, should be transferred to
the gift fund and not booked as other debts.

The FSA is also of the opinion that the result of gift funds being accounted as
other liabilities and not as gift funds is that the equity certificates share
over time has received too large a share of the profit. If the funds had been
injected into the bank's gift fund, this would have resulted in a lower
ownership fraction in previous years than what has been assumed for the
distribution of profits and dividend funds.

It is stated in the notification that the FSA believes that corrections should
be made in the following way:
1. The Bank must recalculate the ownership fraction as it would have been at the
end of the years 2014 to 2023. In the calculation, the structural fund and
unpaid gifts that have not been decided must be included in the primary capital.
2. The primary capital's share of the surplus available for use in each year is
calculated using the ownership fraction as calculated in item 1.
3. The sum of the difference between the actual allocation of surplus to the
primary capital and the calculated allocation pursuant to item 2 for the period
2014 to 2023 shall be added to the primary capital before the result for 2024 is
allocated in the ordinary manner.

The FSA requests that the bank calculates the compensation resulting from the
notice of correction order. The bank will start work on making calculations as
requested by the FSA.

It is also stated in the notification that the FSA aims to process the
application for permission to establish the savings bank foundation after the
case concerning gift funds has been concluded.

The notice sets a deadline of 26 August 2024 for Sparebanken Møre to submit
comments on the notice. Sparebanken Møre disagrees with the FSA's assessments
and will devote time to a review and assessment of the factual and legal basis
for the notified order. The bank's comments will be sent to the FSA by the
deadline.

Contact persons:
• Trond Lars Nydal, CEO, tlf. +47 951 79 977
• John Arne Winsnes, CFO, tlf. +47 462 80 999
• Runar Sandanger, Senior Economist, tlf. +47 950 43 660

This information is considered to be inside information pursuant to the EU
Market Abuse Regulation (MAR) and is subject to the disclosure requirements
pursuant to Section 5-12 the Norwegian Securities Trading Act. The stock
exchange announcement was published by Karen Sofie Synnes, Senior Advisor
Administration of Sparebanken Møre on 5 July 2024 at 01:15.

The information, opinions and forward-looking statements contained in this
announcement speak only as at its date and are subject to change without notice.
The Bank does not undertake any obligation to review, update, confirm, or to
release publicly any revisions to any forward-looking statements to reflect
events that occur or circumstances that arise in relation to the content of this
announcement.

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