Download presentation from press conference October 29th 2009. Last ned kvartalspresentasjonen for SpareBank 1 Gruppen AS - Q3/2009

1. 3rd quarter (Q3) 2009
Presentation of results
from SpareBank 1 Gruppen
Kirsten Idebøen, CEO
29 October 2009

2. Highlights
• Historically good pre-tax profit as at the 3rd quarter
• Bank 1 Oslo AS is leaving the group SpareBank 1 Gruppen AS and will be directly
owned by the SpareBank 1 banks (90%) and the Norwegian Confederation of Trade
Unions (LO) (10%) with effect from 1 January 2010
• SpareBank 1 Livsforsikring has entered into an agreement with Gabler Wassum
concering the operation and administration of its portfolio of approx. NOK 4 billion in
the area of group defined-benefit pensions
– An agreement was also signed giving Gabler Wassum an option to purchase the
portfolio by the end of 2010
• The implementation of measures in the profitability project being carried out is
progressing well
– The project’s aim is to yield profitability improvements with a full-year effect of
MNOK 450 from 31 December 2010, and SpareBank 1 Gruppen is ahead of
schedule with regard to realising both profitability effects and staffing reductions
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2

3. Very strong quarterly results
Pre-tax profit, Group, by quarter
• Pre-tax profit as at Q3 was MNOK
974 (314). Profit in Q3 of MNOK 432
500
441 432 (17)
450
400
• Profit after tax year-to-date was
350
350 353 MNOK 697 (222)
300 • Return on equity year-to-date of
MNOK
250 236 18.6% (5.8%) p.a.
197
200 • Total assets at the end of September
150
100 100 were NOK 60.7 billion, up NOK 4.3
100 billion from 31 December 2008
50 17 • Core and capital adequacy ratio
0 estimated at 9.3% and 13.9%,
2007 2008 2009 respectively, as at 30 September
2009, as opposed to 9.4% and 12.6
Pre-tax profit - Q1 Pre-tax profit - Q2 Pre-tax profit - Q3 % at year-end
3
3

4. Very good quarterly profit from the subsidiaries
Pre-tax profit in the subsidiaries
• Overall pre-tax profit for the subsidiaries
600
as at Q3 was MNOK 996 (372). Profit in 506
Q3 of MNOK 448 (34) 500
• Strong investment and risk result in the 400
311
life insurance company. Substantially 300 237
strengthened buffer capital 200 155
MNOK
• Very good financial return and good 85
100 60 -35*
results in the P&C insurance company 18
0
Livsfors.
• Rising capital under management in
ODIN
Skadefors.
Oslo group
SB1
-100
Bank 1
ODIN Forvaltning
SB1
• Higher net interest income in Q3 and -200
-343
good financial income in Bank 1 Oslo -300
-400
Pre-tax profit - YTD 2008
* In SpareBank 1 Gruppen’s consolidated accounts, NOK 307.7 million of the loss on Pre-tax profit - YTD 2009
interest in 2008 was covered by the customer’s additional provisions.
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5. SpareBank 1 Gruppen group
Profit/loss as at Q3 2009
Q3 Q2 Q1 Q3 Year to date
Figures in MNOK 2009 2009 2009 2008 2009 2008
Part of result from subsidiaries before tax
- SpareBank 1 Livsforsikring 81.2 205.6 24.4 -334.9 311.2 -342.9
- Additional provisions recognised as
income in consolidated accounts 0.0 -42.0 42.0 286.8 0.0 307.7
- SpareBank 1 Skadeforsikring 272.8 184.9 48.1 58.0 505.8 237.0
- Bank 1 Oslo group 74.7 67.6 13.1 -6.2 155.4 60.2
- ODIN Forvaltning 16.0 9.6 -7.5 25.7 18.1 85.2
- Argo Securities -14.6 -11.9 -12.9 0.0 -39.4 0.0
- SpareBank 1 Medlemskort 1.8 4.1 5.6 4.2 11.4 12.4
- SpareBank 1 Gruppen Finans Holding 3.9 11.0 5.3 3.6 20.2 10.7
- Correction subsidiaries - pro forma IFRS 12.0 -6.0 7.4 -3.3 13.4 1.8
Net result before tax from subsidiaries 447.8 423.0 125.4 33.8 996.1 372.0
Total operating costs holding -13.2 -12.1 -13.3 -8.8 -38.6 -31.5
Net investment charges holding -2.1 -7.0 -17.3 -15.9 -26.5 -52.4
Gains from sale of companies 0.0 29.2 0.0 21.7 29.2 21.7
Share of associated company - First Securities 0.0 8.4 5.1 0.9 13.5 21.4
Net result before amortisation 432.4 441.4 99.9 31.6 973.7 331.2
Amortisation 0.0 0.0 0.0 -14.2 0.0 -16.8
Pre-tax result 432.4 441.4 99.9 17.4 973.7 314.4
Taxes -30.9 -150.7 -94.8 -7.0 -276.4 -92.9
Net result for the period 401.5 290.7 5.2 10.4 697.3 221.5
Majority interest 404.1 292.9 7.5 10.2 704.4 220.8
Minority interest -2.6 -2.1 -2.3 0.3 -7.1 0.8
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6. Bank 1 Oslo to be demerged from SpareBank 1 Gruppen
• Bank 1 Oslo will be directly owned by the
SpareBank 1 banks (90%) and LO (10%)
with the same ownership stake as in SpareBank 1
SpareBank 1 Gruppen AS LO
banks
• There is an effort to implement the change
of ownership with effect from 1 January 90% 10%
2010. A licence has been granted
• Establishing a clearer division between SpareBank 1 Bank 1 Oslo
production and distribution in SpareBank 1
Gruppen AS AS
Alliansen was an important consideration in
the decision to change the ownership model
for Bank 1 Oslo Products: - Banking
- Life insurance - Real estate agency
• Bank 1 Oslo will continue to be a part of
- P&C insurance - Distribution of
SpareBank 1 Alliansen, which will involve a products
- Unit trusts
stronger commitment to the market in Oslo - Securities trading
and Akershus - Receivables management
• Estimated effects for SpareBank 1 Gruppen - Factoring
as at 30 September 2009 - Member cards
– Core capital adequacy: +1.4 percentage - etc.
points
– Capital adequacy: +2.2 percentage points
– Total assets: NOK -25.7 billion.
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7. Bank 1 Oslo
Higher net interest income in 3rd quarter
and good financial income
7
7

8. Bank 1 Oslo (group)
Higher net interest income in Q3 and good financial
income
Pre-tax profit by quarter
• Pre-tax profit of MNOK 155 (60)
as at Q3. Profit in Q3 was 80 75
MNOK 75 (-6) 70
68
• The earnings advance is chiefly 60
due to higher revenue from
financial investments 50
39
• Loan losses MNOK 91 (15) as at 40 33 32 34
MNOK
Q3, of which MNOK 31 (32) in 30 27
Q3 20 13
• Gross non-performing and 10 -6
impaired loans amounted to 0
2.0% (1.2%) of gross loans as
2007 2008 2009
at 30 September 2009 -10
• Positive pre-tax earnings from -20
EiendomsMegler 1 Oslo &
Akershus of MNOK 5 (-17) Pre-tax profit - Q1 Pre-tax profit - Q2 Pre-tax profit - Q3
8
8

9. Bank 1 Oslo (parent bank)
Higher net interest income in Q3
Net interest income
120 110.6 2.0 %
105.3
• Lending growth incl. Boligkreditt of 97.0 96.7 95.9
1.9 %
14.7% the past 12 months. Year- 100 89.9 88.8 89.9 1.8 %
to-date growth was 10.2%, of 80 1.7 %
which CM increased by 1.6 %
MNOK
11.0% and CM by 8.2% 60 1.5 %
• Net interest income of MNOK 289 1.4 %
40
(298) as at Q3. In Q3 net interest 1.3 %
income was MNOK 20
1.2 %
111 (105). 1.1 %
• Net interest income as at Q3 of 0 1.0 %
1.51% (1.81%). Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2007 2008 2008 2008 2008 2009 2009 2009
Net interest income Net interest income measured
against average total assets
9
9

10. Bank 1 Oslo (parent bank)
Margin and volume growth
22,000 2.32 % 2.31 % 2.50 %
2.21 %
20,000
2.00 %
18,000 1.49 % 1.36 %
1.35 % 1.34 % 1.50 %
1.15 % 1.22 %
1.23 %
MNOK
1.42 %
1.10 %
16,000 1.00 %
0.91 % 1.05 %
0.68 %
0.94 % 0.88 % 0.87 % 0.84 %
0.86 % 0.77 %
14,000 0.50 %
0.11 %
12,000 0.00 %
-0.13 %
10,000 -0.35 % -0.50 %
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2006 2007 2007 2007 2007 2008 2008 2008 2008 2009 2009 2009
Lending Spread for ordinary Spread for deposits
lending to custom ers from custom ers
The benchmark interest rate used in the margin calculation is the 3 month NIBOR
10
10

11. Bank 1 Oslo (parent bank)
Changes in non-performing loans
MNOK 1. kv 2008 Percent
500 2.5
450
400 2.0
350
300 1.5
250
459
200 401 417 1.0
358
150
220 214 246
100 0.5
166 163
50 113
0 -
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2007 2007 2007 2008 2008 2008 2008 2009 2009 2009
Total non-performing loans
as % of gross loans
Non-performing loans = Total of overdue claims over 90 days and impaired non-overdue claims over 90 days
11
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12. Bank 1 Oslo (parent bank)
Higher losses compared with last year – annualised loss in
percent of gross loans is 0.57%
MNOK Individual Collective Net write-offs Total
write-downs impairment and incomings on Loan losses
20.0 previous write-offs
5.2 3.5 -30.8 -14.9
-23.6 -37.8 -22.3 -90.9
0.0
-20.0
-40.0
-60.0
-80.0 Year to date 2008 Year to date 2009
-100.0
12
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13. Bank 1 Oslo (group)
Higher commission and financial income
Other income per quarter
140
• Net interest commission income and
120
other income of MNOK 215 (183) as at
100
Q3 80
– Commission income from real estate
MNOK
60
agency was up 36.7% to MNOK 91 (66)
40
• Income from financial investments was 20
MNOK 129 (-38) as at Q3 0
– Bond portfolio: MNOK 46 (-23) -20
– Shares and primary capital certificates: -40
MNOK 65 (-23) Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2007 2008 2008 2008 2008 2009 2009 2009
Guarantee commissions/others
Real estate agency commission
Revenue from financial investments
Payments system
Commission revenues from insurance and savings
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14. SpareBank 1
Livsforsikring
Strong investment and risk result
14
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15. SpareBank 1 Livsforsikring
Strong investment and risk result
Pre-tax profit by quarter
300
• Pre-tax profit was MNOK 311 206
(-343) as at Q3. Profit in Q3 was 200 129111
MNOK 81 (-335) 93 81
• Strong performance in net risk 100 44 24
result: MNOK 277 (130) year-to-
MNOK
0
date
2007 -52 2008 2009
• Investment result was MNOK 432 -100
(-333) as at Q3. In Q3 it was
MNOK 132 (-332) -200
• Total assets as at 30 September -300
2009 were NOK 23.8 billion., up
12.1% from 31 December 2008 -335
-400
Pre-tax profit/loss - Q1 Pre-tax profit/loss - Q2
Pre-tax profit/loss - Q3
15
15

16. SpareBank 1 Livsforsikring
Stronger buffer capital in the life insurance
company
Growth in buffer capital
• Core and capital adequacy ratio 16 %
estimated at 15.3% and 18.3%, 13.7 %
14 %
respectively, as at 30 September 11.7 %
12 %
2009, as opposed to 11.2% and
14.3 % at year-end 10 % 8.2 % 5.8 %
• Buffer capital with additional 8%
Percent
5.8 % 6.0 %
provisions within a one-year 6%
interest rate guarantee equals 4%
13.7% (5.8%) at the end of 2%
September 0%
• Estimated solvency at the end of -2 % Q2 Q3 Q4 Q1 Q2 Q3
Q3 was 242% (255%) 2008 2008 2008 2009 2009 2009
-4 %
• The securities adjustment reserve
was MNOK 238 as at 30 Securities adjustment reserve
Additional provisions
September 2009 Interim profit
Core capital in excess of minimum
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17. SpareBank 1 Livsforsikring
Modest rise in equities in the group portfolio
As at 30 September 2009 *)
Group portfolio Company portfolio Investment choice portfolio
35.8 (31.4)% 13.8 (12.4)% 0.1 (7.3)% 3.7 (1.0)% 31.9 (28.9)%
59.7 (54.4)%
4.6 (3.0)% 20.8 (32.2)%
17.0 (32.6)%
21.8 (22.9)% 58.3 (26.9)%
24.0 (30.3)% 8.4 (16.7)%
Stocks Other Stocks Other Bonds
Stocks Other Real estate Bonds held to maturity
Real estate Bonds held to maturity Bonds
Bonds
NOK 15.3 (14.7) billion NOK 2.0 (1.3) billion NOK 5.2 (4.0) billion
* Figures in parentheses are as at 31 December 2008
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18. SpareBank 1 Livsforsikring
Value-adjusted return on customer portfolios with guarantee (excl.
change in value construction)
Q2 Q3 Q2 Q3 Q2 Q3 Q2 Q3
2009 2009 2009 2009 2009 2009 2009 2009
8
7.1
7
6
5
Percent
4.1
4 3.5
3.1
3 2.5
1.9
2 1.5
1
NA
0
SpareBank 1 Storebrand Vital Nordea
18
18 Source: company presentations

19. SpareBank 1
Skadeforsikring
High financial income and good
insurance result
19
19

20. SpareBank 1 Skadeforsikring
High financial income and good insurance result
Pre-tax profit by quarter
• Pre-tax profit was MNOK 506
(237) as at Q3. Profit in Q3 was 300 273
MNOK 273 (58) 250
• Net financial income as at Q3 was
MNOK 406 (112). The financial return 200 185
year-to-date equals 5.3% (1.6%)
MNOK
150 139
• The insurance result as at Q3 was 121 125
MNOK 117 (144). In Q3 this was 100
MNOK 100 (56) 66
54 58
48
• The claims ratio for own account was 50
73.4% (72.9 %) and the combined
ratio for own account 95.1% (94.3 %) 0
as at 30 September 2009 2007 2008 2009
• Positive portfolio growth in both CM Pre-tax profit - Q1 Pre-tax profit - Q2 Pre-tax profit - Q3
and RM. Total portfolio increase of
MNOK 196 (105), which amounted to
5.1% (2.9%)
20
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21. SpareBank 1 Skadeforsikring
Two major claims in Q1 push up combined ratio for own
account
Combined ratio for own account shown Combined ratio for own account
by quarter by year
100.6 % 94.6% 95.1%
95.9 % 95.6 % 100 % 94.0%
100 % 91.9 % 93.9 % 93.8 % 95.1 % 93.1 % 89.9%
89.3 % 87.2%
21.1 %
19.5 %
21.8 % 19.7 % 20.9 % 23.3 %
22.1 % 20.7 % 21.9 % 21.7 %
80 % 23.5 % 21.9 % 80 % 20.6 %
20.5 %
60 % 60 %
40 % 74.0 % 74.2 % 74.1 % 69.7 %
79.5 % 73.5 % 40 % 73.9 %
72.4 % 70.3 % 67.5 % 69.3 % 72.1 % 73.4 %
66.7 %
20 % 20 %
0% 0%
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2005 2006 2007 2008 YTD
2007 2007 2008 2008 2008 2008 2009 2009 2009 2009
Claims ratio Cost ratio
Claims ratio Cost ratio
21
21

22. ODIN Forvaltning
Rising assets under management
22
22

23. ODIN Forvaltning
Rising assets under management
Pre-tax profit by quarter
• Pre-tax profit was MNOK 18 (85) as at 100
85
Q3. Profit in Q3 was MNOK 16 (26)
80 74
• Assets under management grew by 67
NOK 6.3 billion on the first three 60
quarters of the year to NOK 25.4
MNOK
billion 40 30 29
• The market share for equity funds was 26
16
12.4%, a decline from 13.8% at year- 20 10
end -7
• 9 of 11 self-managed equity funds with 0
better returns than reference index as 2007 2008 2009
-20
at 30 September 2009
• All self-managed equity funds with Pre-tax profit/loss - Q1 Pre-tax profit/loss - Q2
Pre-tax profit/loss - Q3
better returns than reference index the
past five years
23
23

24. Implementation of profitability project progressing well, and the
Group is ahead of schedule with regard to realising profitability
effects and reductions in staffing
REALISED EFFECTS AS AT 30 SEPTEMBER 2009
Realisation of profitability effects over time Realisation of staffing consequences over time
(FTEs, cumulative)
(MNOK, cumulative annual rate)
450 177
Plan Plan
Realised year-to date Realised year-to-date
135
332
82
72
125
87 36 36
31
54
29 35
H1 2009 Q3 2009 H2 2009 H1 2010 H2 2010 H1 2009 Q3 2009 H2 2009 H1 2010 H2 2010
- An implemented measure qualifies for full-year effect. The method ensures a focus on implementation
- Of the reduction in FTEs a large percentage comes from natural wastage and a reduction in the use of temps
24
24

25. Bank. Insurance. And you.
25
25

26. Appendix
26
26

27. SpareBank 1 Gruppen’s company and ownership structure
SpareBank 1 SpareBank 1 SpareBank 1 Sparebanken Samarbeidende Norwegian Confederation of
SR-Bank SMN Nord-Norge (19.5%) Hedmark Sparebanker (19.5%) Trade Unions (LO)
(19.5%) (19.5%) (12%) (10%)
SpareBank 1 Gruppen AS
SpareBank 1 SpareBank 1 ODIN
Oslo Skadeforsikring Forvaltning
(100%) (100%) (100%) The Alliance
SpareBank 1 SpareBank 1 SpareBank 1
Boligkreditt Medlemskort Livsforsikring
(100%) (100%) Broad alliance
EiendomsMegler 1
- Brands
BNbank - Technology
SpareBank 1 - Expertise
Argo
Gruppen Finans - Shared processes and utilisation of best practise
(Bank-owned Securities
Holding AS - Purchasing
operation) (75%)
(100%)
Regional centres of expertise
- The Payments Sector: Trondheim
- Credit: Stavanger
- Teaching: Tromsø
SpareBank 1 Actor Fordrings-
Actor Portefølje
Factoring forvaltning
(100%)
(100%) (100%)
Actor
Verdigjenvinning
(100%)
27
27

28. SpareBank 1 Gruppen group
Quarterly results
Q3 Q2 Q1 Q4 Q3 Q2
Figures in MNOK 2009 2009 2009 2008 2008 2008
Part of result from subsidiaries before tax
- SpareBank 1 Livsforsikring 81.2 205.6 24.4 -647.6 -334.9 43.7
- Additional provisions recognised as
income in consolidated accounts 0.0 -42.0 42.0 -307.7 286.8 -41.7
- SpareBank 1 Skadeforsikring 272.8 184.9 48.1 -19.3 58.0 125.0
- Bank 1 Oslo group 74.7 67.6 13.1 -57.1 -6.2 34.4
- ODIN Forvaltning 16.0 9.6 -7.5 30.0 25.7 29.2
- Argo Securities -14.6 -11.9 -12.9 -4.0 0.0 0.0
- SpareBank 1 Medlemskort 1.8 4.1 5.6 -0.3 4.2 4.2
- SpareBank 1 Gruppen Finans Holding 3.9 11.0 5.3 4.7 3.6 5.4
- Correction subsidiaries - pro forma IFRS 12.0 -6.0 7.4 -7.4 -3.3 7.0
Net result before tax from subsidiaries 447.8 423.0 125.4 -1,008.6 33.8 207.2
Total operating costs holding -13.2 -12.1 -13.2 -16.3 -8.8 -11.9
Net investment charges holding -2.1 -7.0 -17.4 -15.4 -15.9 -12.9
Gains from sale of companies 0.0 29.2 0.0 -0.6 21.7 0.0
Share of associated company - First Securities 0.0 8.4 5.1 -3.7 0.9 16.4
Net result before amortisation 432.4 441.4 99.9 -1,044.6 31.6 198.8
Amortisation 0.0 0.0 0.0 -1.3 -14.2 -1.3
Pre-tax result 432.4 441.4 99.9 -1,046.0 17.4 197.5
Taxes -30.9 -150.7 -94.8 -33.3 -7.0 -50.0
Net result for the period 401.5 290.7 5.2 -1,079.3 10.4 147.4
Majority interest 404.1 292.9 7.5 -1,078.9 10.2 147.0
Minority interest -2.6 -2.1 -2.3 -0.4 0.3 0.4
28
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29. REALISED PROFITABILITY EFFECTS AND REDUCTIONS IN STAFFING
SUB PROJECT SpareBank 1 Skadeforsikring REPORT DATE 08.10.2009
Realisation of profitability effects over time
Realiserte effekter per kvartal Realiserte bemanningsreduksjoner over kvartal
Realisation of staffing consequences per time
(MNOK)
(MNOK, cumulative annual rate) (Årsverk)
(FTEs, cumulative)
Plan Plan
Faktisk realisert
Realised year-to date Realised year-to-date
Faktisk realisert
84
Prognose 79 Prognose
48 48
47
37
16 15
9 10
7
2
0 0 1.5 4
Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10
29
29

30. REALISED PROFITABILITY EFFECTS AND REDUCTIONS IN STAFFING
SUB PROJECT SpareBank 1 Livsforsikring REPORT DATE 08.10.2009
Realisation of profitability effects over time
Realisation of staffing consequences over time
191
(MNOK, cumulative annual rate) (FTEs, cumulative)
Plan 162 Plan
101
Faktisk realisert
Realised year-to date 150 Realised year-to-date
Faktisk realisert
94 94
Prognose Prognose
79
119
68
50
51
43
25 24
20
18 18
13
Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10
30
30

31. REALISED PROFITABILITY EFFECTS AND REDUCTIONS IN STAFFING
SUB PROJECT Bank 1 Oslo REPORT DATE 09.10.2009
Realisation of profitability effects over time
Realiserte effekter per kvartal Realiserte bemanningsreduksjoner over kvartal
Realisation of staffing consequences per time
(MNOK)
(MNOK, cumulative annual rate) (Årsverk)
(FTEs, cumulative)
89 21
Plan Plan
Faktisk realisert
Realised year-to date Realised year-to-date
Faktisk realisert 19 19
Prognose Prognose
71 71
59
46 46
10
9
29 7 7 7 7 7
25
14 14
Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10
31
31

32. Bank 1 Oslo (group)
Profit/loss as at Q3 2009
Q3 Q2 Q1 Q3 Year to date
Figures in MNOK 2009 2009 2009 2008 2009 2008
Net interest income 110.2 89.7 88.5 106.7 288.5 300.1
Other operating income 130.7 125.8 87.0 32.0 343.5 145.0
Operating costs 135.3 123.0 127.4 113.0 385.7 370.1
Operating result before losses 105.6 92.6 48.0 25.7 246.2 75.0
Net loan loss provisions 30.9 25.0 34.9 31.9 90.9 14.9
Pre-tax operating profit 74.7 67.6 13.1 -6.2 155.4 60.2
Taxes 14.1 8.9 2.2 -1.5 25.2 16.9
Net profit/loss for the period 60.6 58.7 10.9 -4.7 130.2 43.2
Key figures Q3 Q2 Q1 Q3 Year to date
Figures in percentage 2009 2009 2009 2008 2009 2008
Net interest margin 1.71 % 1.41 % 1.41 % 1.85 % 1.51 % 1.82 %
Cost/income ratio
excl. equity investment portfolio (parent bank) 65.1 % 74.5 % 70.9 % 59.6 % 69.9 % 67.4 %
Cost/income ratio
incl. equity investment portfolio 56.2 % 57.0 % 72.6 % 81.4 % 61.0 % 83.1 %
Return on equity (parent bank) 16.1 % 6.7 %
Return on equity 17.0 % 5.2 %
Deposit coverage ratio 72.9 % 71.6 %
Capital adequacy ratio (parent bank) 11.0 % 9.3 %
Core capital adequacy ratio (parent bank) 8.1 % 8.7 %
32
32

33. Bank 1 Oslo (parent bank)
Increasing non-performing loans in CM in Q3, reduced in RM
500.0
450.0
400.0 110
350.0 108
117
300.0 124
MNOK
250.0
200.0 67
51 57 349
150.0 283 309
64 58
234
100.0 169 49 179
157
50.0 102 105
64
0.0
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2007 2007 2007 2008 2008 2008 2008 2009 2009 2009
Corporate market Retail market
33
33

34. SpareBank 1 Livsforsikring
Profit/loss as at Q3 2009
Q3 Q2 Q1 Q3 Year to date
Figures in MNOK 2009 2009 2009 2008 2009 2008
Insurance risk income 303.9 304.7 310.4 291.0 919.0 868.8
Insurance risk claims -208.0 -190.7 -211.8 -237.3 -610.5 -688.2
Risk result 95.9 114.0 98.6 53.7 308.5 180.5
Tecnical allocations -8.5 -10.9 -11.7 -15.9 -31.1 -50.8
Risk result after tecnical allocations 87.4 103.2 86.9 37.8 277.4 129.8
Fees 151.9 132.5 149.6 146.6 434.0 434.5
Expenses, exclusive comissions -132.7 -132.2 -139.8 -134.0 -404.7 -398.2
Comissions -49.7 -47.6 -47.0 -54.7 -144.3 -161.5
Administration result -30.5 -47.2 -37.3 -42.1 -115.0 -125.2
Net investment income 241.8 464.4 59.3 -222.2 765.5 -5.5
Guaranteed interest to policyholders -110.3 -112.9 -110.1 -109.5 -333.3 -327.1
Investment result 131.5 351.5 -50.8 -331.7 432.2 -332.6
Result before allocations 188.3 407.4 -1.1 -336.0 594.6 -328.0
Undistributed profits to customers -93.7 -213.5 -8.9 6.1 -316.1 -1.9
Return on company's assets -13.4 11.7 34.4 -5.0 32.7 -13.0
Net profit to owner before tax 81.2 205.6 24.4 -334.9 311.2 -342.9
Taxes * 0.0 0.0 0.0 0.0 0.0 0.0
Net profit/loss for the period 81.2 205.6 24.4 -334.9 311.2 -342.9
Key figures Q3 Q2 Q1 Q3 Year to date
2009 2009 2009 2008 2009 2008
Capital adequacy ratio 18.3 % 14.8 %
Buffer capital in % of insurance provisions 13.7 % 5.8 %
* The company’s accounts do not show the tax cost because deferred tax advantages are not recognised in accordance with accounting
standard IAS 12. The company’s tax cost of MNOK 141 year-to-date is included in SpareBank 1 Gruppen’s consolidated tax
34
34

35. SpareBank 1 Livsforsikring
Return ordinary customer portfolio with guarantee as at 30
September 2009
Percent
Norwegian shares 48.7
Foreign shares 24.0
Money market 3.7
Norwegian bonds 5.0
Foreign bonds 6.0
Hold to maturity 4.0
Real estate 4.9
0 10 20 30 40 50 60
35
35

36. SpareBank 1 Livsforsikring
Booked return for customer portfolios with guarantee year-to-date
Q2 Q3 Q2 Q3 Q2 Q3 Q2 Q3
2009 2009 2009 2009 2009 2009 2009 2009
6
5.4
5
4 3.8
3.2
Percent
3.1
3
2.5
1.9
2
1.5
1
NA
0
SpareBank 1 Storebrand Vital Nordea
36
36 Source: company presentations

37. SpareBank 1 Livsforsikring
Balance sheet as at Q3 2009
Year to date
Figures in MNOK 2009 2008
Intangible assets 61 454
Investments 2,013 1,752
Reinsurance's part of insurance obligations 217 183
Accounts receivable 585 237
Other assets 300 265
Prepayed liabilities and accrued income 0 3
Investments group portfolio 15,386 14,735
Investments options portfolio 5,221 4,217
Total assets 23,783 21,846
Paid in capital 1,243 685
Other equity 616 627
Subordinated loan capital 525 525
Insurance obligations - contractual 15,449 15,243
Insurance obligations - investment options 5,300 4,256
Provisions for obligations 100 72
Premium deposits from reinsurance companies 127 94
Other obligations 307 260
Accrued liabilities, prepaied income 118 83
Total liabilities and equity 23,783 21,846
37
37

38. SpareBank 1 Livsforsikring
Growth in premium income
Q3 Q2 Q1 Q3 Year to date
Figures in MNOK 2009 2009 2009 2008 2009 2008
Individual annuity and pension insurance 64.1 65.3 62.8 54.6 192.2 163.3
Individual endowment insurance 121.7 120.3 119.2 113.6 361.2 345.8
Group pension insurance 109.4 94.1 273.4 133.2 476.9 646.0
Individual life insurance 43.1 42.3 41.7 41.0 127.1 121.8
Group life insurance 128.7 116.1 212.1 127.4 456.9 450.3
Unit Linked - Annuity 11.2 10.8 11.8 9.2 33.9 28.4
Unit Linked - Endowment 67.8 76.4 44.6 49.1 188.8 178.7
Defined contribution pension 185.2 193.0 190.9 169.1 569.0 503.3
Total gross due premium income 731.1 718.3 956.5 697.2 2,405.9 2,437.6
Premium reserves transferred from other companies 90.9 83.8 65.7 77.7 240.4 392.2
Reinsurance ceded -39.0 -40.0 -39.7 -40.2 -118.7 -198.8
Premium income for own account 783.0 762.1 982.4 734.7 2,527.5 2,631.0
38
38

39. SpareBank 1 Livsforsikring
Profit/loss per portfolio as at Q3 2009
Previously
Group established Investment choice Company
Figures in MNOK portfolio individual products portfolio portfolio Total
Risk result 279.7 -2.8 0.6 1.3 278.7
Administration result 25.6 -32.6 -108.0 0.0 -115.0
Net investment result 253.0 177.9 0.0 0.0 430.9
Transferred to policyholders -200.8 -114.2 -1.2 0.0 -316.1
Return on company's assets 0.0 0.0 0.0 32.7 32.7
Sum 357.5 28.3 -108.6 34.0 311.2
39
39

40. SpareBank 1 Skadeforsikring
Profit/loss as at Q3 2009
Q3 Q2 Q1 Q3 Year to date
Figures in MNOK 2009 2009 2009 2008 2009 2008
Gross written premium 995.1 1,033.7 1,237.9 900.2 3,266.8 3,126.2
Net earned premium 971.8 940.2 919.2 931.5 2,831.3 2,742.6
Net incurred claims -655.6 -691.2 -730.5 -690.7 -2,077.3 -1,999.1
Net insurance operating costs -212.5 -207.6 -194.2 -195.1 -614.2 -586.2
Other insurance income/costs -4.2 5.7 -3.4 0.1 -1.9 3.1
Changes in other technical reserves 0.1 -13.4 -7.9 10.3 -21.1 -16.1
Operating result before finance 99.7 33.7 -16.7 56.2 116.7 144.2
Net financial income 177.8 158.3 70.1 10.5 406.2 111.6
Other costs -1.1 -2.3 -1.3 -2.5 -4.7 -5.4
Result before changes in security reserve 276.4 189.6 52.2 64.2 518.2 250.5
Changes in security reserve -3.6 -4.7 -4.1 -6.2 -12.4 -13.5
Pre-tax profit 272.8 184.9 48.1 58.0 505.8 237.0
Taxes -59.2 -51.8 -13.5 -16.2 -124.5 -66.4
Net profit/loss for the period 213.5 133.2 34.6 41.7 381.3 170.6
Key figures Q3 Q2 Q1 Q3 Year to date
Figures in percentage 2009 2009 2009 2008 2009 2008
Claims ratio, net 67.5 % 73.5 % 79.5 % 74.1 % 73.4 % 72.9 %
Cost ratio, net 21.9 % 22.1 % 21.1 % 20.9 % 21.7 % 21.4 %
Combined ratio, net 89.3 % 95.6 % 100.6 % 95.1 % 95.1 % 94.3 %
Capital adequacy ratio 27.0 % 27.0 %
40
40

41. ODIN Forvaltning
Profit/loss as at Q3 2009
Q3 Q2 Q1 Q3 Year to date
Figures in MNOK 2009 2009 2009 2008 2009 2008
Management fees 66.9 57.0 46.3 76.1 170.2 243.2
Subscription and redemption fees 6.1 6.7 6.2 7.9 19.1 33.1
Total operating income 73.0 63.8 52.5 84.1 189.3 276.3
Salaries 23.4 18.5 19.2 25.3 61.1 78.6
Depreciations 4.0 3.9 4.1 3.7 12.0 10.7
Other operating costs 28.0 30.9 31.7 32.4 90.6 111.6
Total operating costs 55.4 53.4 55.0 61.5 163.8 200.9
Operating profit 17.6 10.4 -2.5 22.6 25.6 75.4
Net financial income -1.7 -0.8 -5.0 3.1 -7.4 9.7
Resultat før skatt 16.0 9.6 -7.5 25.7 18.1 85.2
Skattekostnad 4.4 0.4 0.2 7.2 5.1 23.8
Resultat 11.5 9.2 -7.7 18.5 13.1 61.3
41
41

42. Other companies
SpareBank 1 Gruppen Finans Holding
SpareBank 1
Gruppen Finans
Holding AS SpareBank 1 Medlemskort
(100%)
SpareBank 1 Actor Fordrings-
Factoring forvaltning Actor Portefølje
(100%) (100%) (100%)
Actor
Verdigjenvinning
(100%)
• The company was • The subgroup consists of • SpareBank 1 Medlemskort
established in October factoring, debt collection and operates the LO unions'
2008 acquisition of non-performance joint membership database
• SpareBank 1 Gruppen portfolio for delivery of membership
AS owns 75% of Argo • Pre-tax profit as at Q3 of MNOK cards, collection of
Securities AS 20 insurance premiums for
• Pre-tax profit as at Q3 group insurance, plus
of MNOK -39 operation of LOfavør, a
rewards programme
• Pre-tax profit as at Q3 of
MNOK 11 (12)
42
42

43. Assumptions for calculating the pension liability in
SpareBank 1 Gruppen
30.09.2009 30.09.2008 31.12.2008
• SpareBank 1 Gruppen shows at all Discount rate 4.40 % 4.80 % 3.80 %
times the market value of the Basic amount adjustment/inflation 4.00 % 4.25 % 3.75 %
Wage adjustment 4.00 % 4.25 % 4.00 %
pension liability in the balance Expected return on pension funds 5.80 % 5.80 % 5.80 %
sheet AFP early retirement plan 40 % 40 % 40 %
• SpareBank 1 Gruppen applies a Pension adjustments 2.50 % 2.30 % 1.50 %
new scale K2005 Mortality K2005 K2005 K2005
Disability IR2003 IR2003 IR2003
4 % below 50 4 % below 50 4 % below 50
Cancellations years and 2 % years and 2 % years and 2 %
above 50 years above 50 years above 50 years
43
43

44. Key figures SpareBank 1 Gruppen with subsidiaries
Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3
Figures in MNOK 2009 2009 2009 2008 2008 2008 2008 2007 2007
Group
Capital adequacy ratio 13.9 % 14.6 % 14.5 % 12.6 % 12.0 % 13.0 % 12.6 % 13.1 % 11.3 %
Core capital adequacy ratio 9.3 % 9.9 % 9.8 % 9.4 % 9.0 % 9.0 % 9.2 % 9.6 % 7.9 %
Net profit acc. 697.3 295.9 5.2 -857.7 221.5 211.1 63.7 309.0 275.6
Return on equity p.a. 18.6 % 12.3 % 0.6 % -16.1 % 5.8 % 7.9 % 4.7 % 26.2 % 26.8 %
Life insurance
Gross due premium income 731.1 718.3 956.5 704.7 697.2 721.0 1,019.4 822.9 844.6
Retail 307.9 315.2 280.1 285.5 267.5 283.1 287.4 413.0 462.6
Corporate 423.2 403.1 676.4 419.2 429.7 437.9 732.0 410.0 382.1
Total assets 23,783 22,934 21,237 21,217 22,287 23,059 22,909 23,998 23,574
Capital adequacy ratio 18.3 % 18.7 % 15.1 % 14.3 % 14.8 % 14.8 % 12.5 % 12.5 % 10.8 %
P&C insurance
Net earned premium 971.8 940.2 919.2 935.0 931.5 908.5 902.6 900.0 890.7
Retail 847.3 821.8 804.2 822.8 815.5 798.7 791.2 791.0 787.4
Corporate 99.3 93.7 91.0 89.9 90.5 85.0 87.6 88.0 85.7
Reinsurance 25.3 24.7 24.0 22.3 25.5 24.7 23.8 20.0 17.6
Net financial income 177.8 158.3 70.1 -74.7 10.5 92.0 9.1 97.5 86.2
Return on financial assets 5.26 % 3.07 % 0.70 % -0.97 % 0.12 % 1.27 % 0.11 % 1.41 % 1.22 %
Claims Ratio, net 67.5 % 73.5 % 79.5 % 69.7 % 74.1 % 70.3 % 74.2 % 74.0 % 72.4 %
Cost Ratio, net 21.9 % 22.1 % 21.1 % 23.3 % 20.9 % 23.5 % 19.7 % 21.8 % 19.5 %
Bank 1 Oslo
Net interest income 110.6 89.9 88.8 89.9 105.31 95.9 96.7 97.0 90.4
Net loan loss provisions 30.9 25.0 34.9 50.2 31.8 -13.2 -3.8 -3.0 -3.0
Loans 21,247 21,392 21,030 20,688 20,261 19,574 18,844 18,089 17,112
Retail 14,396 14,630 14,655 14,340 13,983 13,574 12,745 12,415 11,981
Corporate 6,851 6,762 6,376 6,348 6,279 6,000 6,098 5,674 5,131
Deposits 15,490 15,786 15,914 15,925 14,122 14,681 13,578 13,378 13,550
Capital adequacy ratio 11.0 % 11.7 % 11.6 % 8.0 % 9.3 % 9.9 % 11.4 % 10.0 % 9.8 %
Net interest income/average totalt assets 1.71 % 1.40 % 1.41 % 1.48 % 1.82 % 1.81 % 1.86 % 1.92 % 1.85 %
Return on equity acc. (parent bank) 16.0 % 13.2 % 4.7 % 1.7 % 6.7 % 10.1 % 9.5 % 9.3 % 10.2 %
Return on equity acc. (group) 17.0 % 23.2 % 4.4 % -1.2 % 5.3 % 8.7 % 8.1 % 8.1 %
ODIN
Assets under management 25,388 22,347 17,431 19,163 23,581 30,508 31,400 37,800 45,600
Equity fund market share 12.4 % 12.8 % 13.1 % 13.8 % 13.7 % 14.6 % 15.6 % 15.9 % 18.9 %
44
44