Q4 2008 Financial results for SpareBank 1 Gruppen presented by acting CEO Kirsten Idebøen

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Download presentation from press conference February 12th 2009. Last ned kvartalspresentasjonen for SpareBank 1 Gruppen AS - Q3/2008.

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Q4 2008 Financial results for SpareBank 1 Gruppen presented by acting CEO Kirsten Idebøen

  1. 1. Preliminary results 2008 Financial statements SpareBank 1 Gruppen Kirsten Idebøen, acting CEO Brigitte Ninauve, financial director 12 February 2009
  2. 2. Highlights 4th quarter 2008 • The results have been strongly affected by the weak financial markets. SpareBank 1 Livsforsikring has a shareholding of 12 % in the group portfolio as at 31 December 2008. The Group has a solid capital base • One-off factors for SpareBank 1 Gruppen in 2008 totalled MNOK -405 • In October SpareBank 1 Gruppen AS acquired a 75 % stake in a newly established brokerage house that is jointly owned with former employees of Kaupthing’s Norwegian brokers. Argo Securities AS was granted a license at the end of November • In Q4 SpareBank 1 Gruppen AS reached agreement with SpareBank 1 Nord-Norge regarding the acquisition of its factoring business for a purchase price of up to MNOK 40. The company will merge into SpareBank 1 Factoring AS – formerly Glitnir Factoring • SpareBank 1 Gruppen AS purchases the remaining 10 % of Actor Fordringsforvaltning for MNOK 16 from Sparebanken Sør with effect from 1 January 2009 • In Q4 SpareBank 1 Gruppen AS’ owners injected equity into the Group through an incremental placement totalling MNOK 924 2 2
  3. 3. Weak result for year, but solid capital base Pre-tax profit/loss group • The pre-tax loss for 2008 was MNOK -724, down MNOK 1,904 against the previous year 1,500 1,180 • At the end of 2008, the assets under 1,001 1,000 management were NOK 56.5 billion, up NOK 2.2 billion from 31 December 2007 375 240 500 • The return on equity after tax was -16.3 MNOK % (26.2 %) 0 • Core and capital adequacy ratios were Q4 Q4 Q4 2006 2007 2008 -500 9.0 % and 12.0 % for the year, against 2006 2007 2008 9.6 % and 13.1 % in 2007 -724 -1,000 • Additional provisions of MNOK 308 taken -1,038 to income in the consolidated accounts -1,500 were reversed in Q4. SpareBank 1 Livsforsikring has utilised MNOK 345 to Pre-tax profit - Q4 Pre-tax profit cover the negative investment result in the annual report and accounts 3 3
  4. 4. Product companies strongly affected by the financial crisis Pre-tax profit subsidiaries • The combined loss for the year for the subsidiaries was MNOK -629 compared to 600 459 a profit of MNOK 1,258 last year 380 400 299 • The life insurance company was strongly 228 131 affected by the financial unrest and one-off 200 113 4 factors. The company is financially sound 0 • The excellent insurance result balances ODIN Skadefors. Livsfors.* Bank 1 Oslo out the weak financial result in the P&C MNOK -200 konsern SB1 SB1 insurance company -400 • Reduced volumes under management in ODIN Forvaltning -600 • Good underlying bank operation in Bank 1 -800 Oslo. The results so far this year are -991 marked by write-downs, losses on -1,000 securities and net losses on loans Pre-tax profit 2007 -1,200 Pre-tax profit 2008 4 4
  5. 5. One-off factors in 2008 of MNOK -405 MNOK SpareBank 1 Livsforsikring IT write-downs -417 Settlements/claims -52 Subtotal -469 ODIN Forvaltning group Foreign exchange gain 15 Subtotal 15 SpareBank 1 Gruppen AS and SpareBank 1 Skadeforsikring AS have sold their shares in Alka Forsikring 49 Subtotal 49 Total -405 5 5
  6. 6. SpareBank 1 Gruppen Preliminary results 2008 Q4 Q3 Q2 Q1 Q4 Year Figures in MNOK 2008 2008 2008 2008 2007 2008 2007 * * Part of result from subsidiaries before tax - SpareBank 1 Livsforsikring -647.7 -334.9 43.7 -51.8 46.6 -990.6 380.0 - Additional provisions recognised as -307.7 286.8 -41.7 62.6 0.0 0.0 0.0 income in consolidated accounts - SpareBank 1 Skadeforsikring -9.4 58.0 125.0 54.1 133.6 227.6 458.9 - Bank 1 Oslo group -56.3 -6.2 34.4 31.9 32.4 3.9 130.9 - ODIN Forvaltning 27.7 25.7 29.2 30.3 73.7 112.9 299.5 ** - Share of other companies 0.2 7.7 9.6 5.7 4.8 23.3 19.0 - Correction subsidiaries - pro forma IFRS -7.8 -3.3 7.0 -1.8 -41.0 -5.9 -30.5 Net result before tax from subsidiaries -1,000.9 33.8 207.2 131.0 250.1 -628.9 1,257.9 Total operating costs holding -16.3 -8.8 -11.9 -10.8 -17.7 -47.8 -60.9 Net investment charges holding -15.5 -15.9 -12.9 -23.6 -12.4 -67.9 -46.2 Gains from sale of companies holding -0.6 21.7 0.0 0.0 0.0 21.1 0.0 Share of associated company - First Securities -3.7 0.9 16.4 4.2 21.8 17.7 56.9 Net result before amortisation -1,036.9 31.6 198.8 100.8 241.7 -705.7 1,207.8 Amortisation -1.3 -14.2 -1.3 -1.3 -1.3 -18.2 -28.0 Pre-tax result -1,038.2 17.4 197.5 99.5 240.4 -724.0 1,179.8 Taxes 9.0 -7.0 -50.0 -35.9 88.4 -83.9 39.2 Net result for the period -1,029.3 10.4 147.4 63.7 328.7 -807.8 1,219.0 Majority interest -1,028.9 10.2 147.0 63.5 328.6 -808.2 1,218.4 Minority interest -0.4 0.3 0.4 0.1 0.2 0.38 0.6 * The figures have been restated in accordance with new annual accounts regulations for P&C and life insurance companies ** Other companies comprise SpareBank 1 Medlemskort AS, Actor Fordringsforvaltning AS and Argo Securities AS 6 6
  7. 7. Bank 1 Oslo Good underlying bank operation 7 7
  8. 8. Bank 1 Oslo (group) Good underlying bank operation • Pre-tax profit of MNOK 4 (131) for Pre-tax profit/loss per quarter 2008 70 • Q4 loss of MNOK -56 (profit of 32) 49 44 50 • Unrealised losses on securities 39 32 34 33 32 totalled MNOK 73 in 2008, of which 28 27 30 the bank’s shares in Nordito AS were 17 written-down by MNOK 23 and goodwill in EiendomsMegler 1 was 10 MNOK -6 written-down by MNOK 26 * -10 • Loan losses MNOK 65 (-10) for the 2006 2007 2008 year. MNOK 50 (-3) in Q4 -30 • Gross non-performing and impaired loans amount to 2.5 % (0.9 %) of -50 gross loans as at 31 December 2008 • Bank 1 Oslo has no direct or indirect -56 -70 exposure to the sub-prime market in the USA or to Icelandic banks. It is Pre-tax profit/loss - Q1 Pre-tax profit/loss - Q2 nevertheless affected by a general Pre-tax profit/loss - Q3 Pre-tax profit/loss - Q4 increase in the spread and unrest in the interest market * Adjusted to take account of the gain of MNOK 100.4 on the sale of the Hamar portfolio in Q3 2006 8 8
  9. 9. Bank 1 Oslo (parent bank) Good underlying bank operation MNOK 31.12.2008 31.12.2007 Change Net interest income 387.8 347.1 11.7 % Other operating income 186.4 166.7 11.8 % Operating costs 388.6 369.2 5.3 % Result underlying bank operation 185.5 144.5 28.3 % Cost/income ratio underlying bank operation 67.7 % 71.9 % -4.2 % Underlying bank operation is defined as operating result before losses excluding exchange rate gains/losses, securities, derivatives, dividend, as well as extraordinary items 9 9
  10. 10. Bank 1 Oslo Competitive and consumer-friendly • The bank was awarded a bronze medal in the Norwegian Bank Championships, in the category for mortgages within 80 % of the value of the home • The medal is a reward for low prices on mortgages throughout one year • Recently SpareBank 1 Oslo & Akershus was named as Norway’s fifth best bank, up from 47th place the previous year 10 10
  11. 11. Bank 1 Oslo (parent bank) Higher interest income as a result of good growth Net interest income per quarter 120.0 2.00 % • Lending growth of 19.9 % during 105.3 97.0 96.7 95.9 the past 12 months. The retail 100.0 1.90 % 90.4 89.9 83.0 market increased by 23.5 % and 77.5 80.0 1.80 % the corporate market by 12.0 % MNOK • Net interest income of MNOK 90 60.0 1.70 % (97) in Q4. Net interest income for 40.0 1.60 % 2008 of MNOK 388 (347), up 11.7 % 20.0 1.50 % • Accumulated net interest income 0.0 1.40 % measured against average total Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 assets of 1.71 % (1.83 %) as at 31 2007 2007 2007 2007 2008 2008 2008 2008 December 2008 Net interest income Net interest income measured against average total assets 11 11
  12. 12. Bank 1 Oslo (parent bank) Margin and volume developments 22,000 1.80 % 1.60 % 20,000 1.64 % 1.42 % 1.49 %1.51 %1.27 % 1.40 % 1.50 % 1.25 % 18,000 1.37 % 1.15 % 1.33 % 1.20 % MNOK 1.05 % 16,000 1.20 % 0.90 % 1.00 % 1.04 % 0.81 % 0.78 % 0.98 % 14,000 0.71 %0.72 % 0.91 % 0.69 % 0.80 % 0.62 % 0.83 % 0.82 % 12,000 0.60 % 10,000 0.40 % Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2006 2006 2006 2006 2007 2007 2007 2007 2008 2008 2008 2008 Lending Spread for ordinary Spread for deposits lending to custom ers from custom ers The reference interest rate used in the margin calculation is 3 months NIBOR + 0.10 bp (the bank’s intra-group interest rate) 12 12
  13. 13. Bank 1 Oslo (parent bank) Increase in non-performing loans attributable to a few corporate market commitments % MNOK Percent 3.0 600.0 1. kv 2008 2.5 500.0 2.0 400.0 1.5 300.0 517.1 1.0 200.0 246.1 234.5 240.9 203.6 220.0 214.0 0.5 100.0 165.8 162.7 113.1 - 0.0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2006 2006 2007 2007 2007 2007 2008 2008 2008 2008 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 13 13
  14. 14. Bank 1 Oslo (parent bank) Change in losses in last year MNOK 60.0 44.4 40.0 20.0 9.9 3.5 -11.8 -22.7 -52.3 -16.3 -65.1 0.0 Individual Collective Net write-offs Net loan -20.0 write-downs impairment and incomings on losses previous write-offs -40.0 -60.0 2007 2008 -80.0 14 14
  15. 15. Bank 1 Oslo (group) Growth in other income Other income per quarter • Increase in commission income in 100 2008 of 8 % to MNOK 80 (74) 80 • Income from financial investments 60 reduced owing to weak financial MNOK markets 40 • In 2008 the bank has written down 20 the shares in Nordito AS by MNOK 0 23 -20 • In 2008 the Bank group suffered a -40 write-down of goodwill in Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 EiendomsMegler 1 of MNOK 26 2007 2007 2007 2007 2008 2008 2008 2008 Guarantee commissions/others Real estate agency commission Revenue from financial investments Payments system Commission revenues from insurance and savings 15 15
  16. 16. Bank 1 Oslo (group) Profit/loss for 2008 Q4 Q3 Q2 Q1 Q4 Year Figures in MNOK 2008 2008 2008 2008 2007 2008 2007 Net interest income 91.6 106.7 96.5 96.9 97.5 391.7 348.3 Other operating income 43.4 32.3 72.8 40.0 68.7 188.4 217.1 Operating costs 141.1 113.1 148.2 108.8 136.6 511.1 444.4 Operating result before losses -6.1 25.9 21.0 28.1 29.6 68.9 121.0 Net loan loss provisions 50.2 31.9 -13.2 -3.8 -2.8 65.1 -9.9 Pre-tax operating profit -56.3 -6.0 34.3 31.9 32.4 3.9 130.9 Taxes -17.6 -1.5 9.4 8.9 11.5 -0.7 38.1 Net profit/loss for the period -38.7 -4.6 24.8 23.0 20.9 4.6 92.8 Nøkkeltall Q4 Q3 Q2 Q1 Q4 Year 2007 Tall i prosent 2008 2008 2008 2008 2007 2008 Net interest margin 1.48 % 1.85 % 1.75 % 1.86 % 1.87 % 1.73 % 1.84 % Cost/income ratio excl. equity investment portfolio (parent bank) 79.3 % 59.6 % 73.0 % 70.3 % 69.8 % 70.2 % 70.6 % Cost/income ratio incl. equity investment portfolio 104.5 % 81.4 % 87.5 % 79.5 % 82.4 % 88.1 % 78.6 % Return on equity (parent bank) 1.7 % 9.3 % Return on equity 0.6 % 8.1 % Deposit coverage ratio 77.2 % 74.2 % Capital adequacy ratio (parent bank) 8.1 % 9.8 % 16 16
  17. 17. SpareBank 1 Livsforsikring Strongly affected by the financial crisis and one-off events 17 17
  18. 18. SpareBank 1 Livsforsikring Strongly affected by the financial crisis and one- off events Pre-tax profit/loss per quarter • Pre-tax loss of MNOK -648 (47) in Q4 and loss of MNOK -991 (380) for 2008 230 129 • Improvement in the risk result before technical 111 93 83 130 48 7336 allocations; of MNOK 264 (187) in 2008 47 44 • The investment result totals MNOK -903 (969) 30 and is strongly affected by the financial crisis -70 2006 2007 -522008 • Assets under management as at 31 December 2008 were NOK 21.1 billion MNOK -170 – down by NOK 2.9 billion from 31 December -270 2007 • No write-down of real estate in Q4 -335 -370 • CDO investments written-down by MNOK 138 * -470 • Negotiated settlement in 2008 amounted to Pre-tax profit/loss - Q1 MNOK 52 Pre-tax profit/loss - Q2 -570 Pre-tax profit/loss - Q3 • A major IT project was written down by MNOK Pre-tax profit/loss - Q4 -670 417 -648 ** * Collateralized debt obligation ** MNOK 345 of the interest deficit was covered by customers’ additional provisions in the annual report and accounts 18 18
  19. 19. SpareBank 1 Livsforsikring The life insurance company has a solid capital base • In July, SpareBank 1 Livsforsikring received a group contribution of MNOK 216 from its owners, SpareBank 1 Gruppen AS • In October, SpareBank 1 Gruppen AS decided to transfer an additional MNOK 219 to the company as a group contribution to be paid in April 2009 • In December 2008, the holding company carried out a share capital increase in SpareBank 1 Livsforsikring of MNOK 300. The remaining guarantee totals MNOK 300 • Core capital and capital adequacy ratios of 11.2 % (9.6 %) and 14.3 % (12.5 %) respectively for 2008 • The buffer capital with additional provisions within a one-year interest rate guarantee equals 5.8 % (14.9 %) for the year 19 19
  20. 20. SpareBank 1 Livsforsikring Continued high shareholding in the group portfolio As at 31 December 2008 Company portfolio Investment choice portfolio Group portfolio 7 %1 % 12 %3 % 27 % 29 % 32 % 32 % 23 % 54 % 33 % 17 % 30 % Stocks Other Stocks Other Stocks Other Bonds Real estate Bonds held to maturity Real estate Bonds held to maturity Bonds Bonds NOK 14.7 billion NOK 1.3 billion NOK 4.0 billion 20 20
  21. 21. SpareBank 1 Livsforsikring Return on ordinary customer portfolio with guarantee as at 31 December 2008 Percent Norwegian shares -54 Foreign shares -42.4 Money market 5.2 Norwegian bonds 8.3 Foreign bonds 6.2 Hedge funds -31.2 Held to maturity 5.3 Real estate 6.7 -60 -50 -40 -30 -20 -10 0 10 20 21 21
  22. 22. SpareBank 1 Livsforsikring Value adjusted return on customer portfolios with guarantee per Q3 and Q4 2008 (excl. value change bonds held to maturity) Q3 Q4 Q3 Q4 Q3 Q4 Q3 Q4 2008 2008 2008 2008 2008 2008 2008 2008 1 0.3 0 -0.2 -1 -2 -1.8 Percent -1.8 -2.0 -2.0 -2.1 -3 -4 -5 -4.9 -6 SpareBank 1 Storebrand Vital Nordea 22 22 Source: company presentations
  23. 23. SpareBank 1 Livsforsikring Booked return on customer portfolios with guarantee per Q3 and Q4 2008 3 2.0 1.9 2 1 0.6 0.3 0.3 0.1 Percent 0 -0.1 -1 -2 -3 -2.8 -4 Q3 Q4 Q3 Q4 Q3 Q4 Q3 Q4 2008 2008 SpareBank 1 Storebrand 2008Vital Nordea 2008 2008 2008 2008 2008 Nordea SpareBank 1 Storebrand Vital 23 23 Source: company presentations
  24. 24. SpareBank 1 Livsforsikring carries out IT write-downs of MNOK 417 • The life insurance company has pursued a programme for the broad renewal of its system portfolio, including the core systems. The renewal was to take place through agreed delivery from an external supplier • Owing to defaulted delivery, the life insurance company experienced IT write-downs of MNOK 417 • The life insurance company has cancelled the contract with the supplier • The life insurance company is seeking restitution and compensation from the supplier for a maximum amount of MNOK 130 • No implications for the capital adequacy • The write-down does not impact on customers 24 24
  25. 25. SpareBank 1 Livsforsikring Profit/loss for 2008 Q4 Q2 Q1 Q4 Year Figures in MNOK 2008 2008 2008 2007 2008 2007 Insurance risk income 290.8 288.1 289.6 274.3 1,159.5 1,076.8 Insurance risk claims -207.5 -243.7 -207.2 -210.8 -895.7 -890.1 Risk result 83.3 44.4 82.4 63.5 263.9 186.7 Technical allocations -2.8 -15.3 -19.6 -318.8 -53.6 -338.4 Risk result after technical allocations 80.5 29.1 62.8 -255.3 210.2 -151.7 Fees 138.1 150.2 137.7 171.4 572.6 616.5 Expenses, exclusive comissions -113.6 -140.5 -123.7 -121.7 -511.8 -457.8 Comissions -93.8 -58.8 -48.0 -55.2 -255.3 -224.9 Administration result -69.3 -49.1 -34.0 -5.5 -194.5 -66.3 Net investment income -460.9 167.4 49.3 304.2 -466.4 1,387.3 Guaranteed interest to policyholders -109.8 -109.7 -107.9 -105.6 -436.9 -418.4 * Investment result -570.7 57.7 -58.6 198.6 -903.3 968.9 Result before allocations -559.5 37.7 -29.8 -62.2 -887.6 750.9 Allocation to additional provisions 345.1 0.0 0.0 -160.0 345.1 -160.0 Transferred to policyholders 7.3 -2.2 -5.8 268.7 5.4 -211.0 Return on company's assets -440.6 8.2 -16.2 0.0 -453.6 0.0 Net profit to owner before tax -647.7 43.7 -51.8 46.5 -990.6 380.0 Taxes -83.5 -11.6 5.7 124.7 0.0 236.7 ** Net profit/loss for the period -731.2 32.1 -46.1 171.2 -990.6 616.6 Key figures Q4 Q2 Q1 Q4 Year 2008 2008 2008 2007 2008 2007 Capital adequacy ratio 14.3 % 12.5 % Buffer capital in % of insurance provisions 5.8 % 14.9 % Buffer capital in % of insurance provisions after allocation of profits 5.8 % 9.3 % * The investment result in 2008 is not directly comparable with the investment result in 2007. Based on new regulations, the figures for 2008 have been split in investment result and return on company’s assets. ** In 2008 the accounting regulation for life insurance was adapted to international accounting standards (IFRS). As a result of this the company’s deferred tax advantage is not shown in the balance sheet, and consequently there is no tax cost in the company accounts. A tax cost of MNOK 16 is shown in the consolidated accounts of SpareBank 1 Gruppen in 2008 25 25
  26. 26. SpareBank 1 Skadeforsikring The insurance business produced excellent results 26 26
  27. 27. SpareBank 1 Skadeforsikring The insurance business produced excellent results Pre-tax profit per quarter • The pre-tax loss for Q4 came to MNOK 160 -9 (134) and the profit for 2008 is 139 134 140 MNOK 228 (459) 125 121 • The insurance result for the year 120 totals MNOK 200 (83) 100 • Net claims ratio at year-end of 72.1 % 82 77 (73.9 %) MNOK 80 66 58 • Net financial income for the year is 54 60 50 MNOK 54 (378) and includes a gain from the sale of Alka Forsikring in Q3 40 18 • Combined ratio of 94.0 % (94.6 %) as 20 at 31 December 2008 -9 0 • Capital adequacy ratio of 25.8 % (17.9 %) at the end of the year 2006 2007 2008 -20 Pre-tax profit/loss - Q1 Pre-tax profit/loss - Q2 Pre-tax profit/loss - Q3 Pre-tax profit/loss - Q4 27 27
  28. 28. SpareBank 1 Skadeforsikring Total portfolio growth of 3.3 % in 2008 in a market characterised by increased competition Retail Market (RM) portfolio Corporate market (CM) portfolio (excl. group home insurances) 2,720 640 11.6 634 15.6 630 2,691 -10.6 2,700 16.7 30.5 620 2,680 12.6 610 24.5 MNOK MNOK 2,660 600 5.2 2,640 2,631 588 590 2,620 580 2,600 570 2,580 560 Change Change Change Change Change Change Change Change 2007 Q1 Q2 Q3 Q4 2008 2007 Q1 Q2 Q3 Q4 2008 2008 2008 2008 2008 2008 2008 2008 2008 Total RM portfolio Change in RM portfolio Total CM portfolio Change in CM portfolio 7.9 % growth in 2008 2.3 % growth in 2008 28 28
  29. 29. SpareBank 1 Skadeforsikring Development in net combined ratio Combined ratio per year Combined ratio per quarter 100 % 94.6 % 94.0 % 91.1 % 89.9 % 97.9 % 100 % 87.2 % 92.7 % 91.9 % 95.9 % 93.9 % 93.8 % 95.1 % 93.1 % 90 % 84.9 % 90 % 20.7 % 21.9 % 21.2 % 22.1 % 80 % 20.6 % 21.8 % 20.9 % 19.7 % 20.5 % 23.5 % 20.2 % 23.3 % 19.5 % 80 % 70 % 21.4 % 70 % 60 % 60 % 50 % 50 % 40 % 40 % 76.7 % 73.9 % 72.1 % 74.2 % 74.1 % 69.3 % 74.0 % 69.0 % 72.4 % 72.5 % 66.7 % 70.3 % 69.7 % 30 % 63.5 % 30 % 20 % 20 % 10 % 10 % 0% 0% 2004 2005 2006 2007 2008 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2006 2007 2007 2007 2007 2008 2008 2008 2008 Claims ratio Cost ratio Claims ratio Cost ratio 29 29
  30. 30. SpareBank 1 Skadeforsikring Allocation of financial assets Bonds Bank deposits 60.1 % 3.9 % Bonds held to Hedge funds maturity 4.3 % 11.6 % Real estate Stocks 15.1 % 5.0 % Total: NOK 7.7 billion 30 30
  31. 31. SpareBank 1 Skadeforsikring Profit/loss for 2008 Q4 Q3 Q2 Q1 Q4 Year 2007 * 2007 * Figures in MNOK 2008 2008 2008 2008 2008 Gross written premium 917.8 900.2 1,034.8 1,191.2 875.3 4,044.0 3,844.6 Net earned premium 935.0 931.5 908.5 902.6 899.7 3,677.6 3,516.5 Net incurred claims -652.1 -690.7 -638.8 -669.7 -666.1 -2,651.3 -2,598.5 Net insurance operating costs -218.0 -195.1 -213.4 -177.7 -196.3 -804.1 -726.7 Changes in other technical reserves -5.9 10.3 -19.5 -7.0 -40.1 -22.1 -108.4 Operating result before finance 59.0 56.1 36.8 48.3 -2.8 200.1 82.9 Net financial income -60.4 10.6 93.5 10.7 102.2 54.4 377.9 Other costs -1.7 -2.5 -1.5 -1.5 -1.2 -7.2 -4.5 Result before changes in security reserve -3.1 64.2 128.8 57.4 98.2 247.3 456.3 Changes in security reserve -6.2 -6.2 -3.9 -3.4 35.4 -19.7 2.7 Pre-tax profit -9.4 58.0 125.0 54.1 133.6 227.6 458.9 Taxes 2.6 -16.2 -35.0 -15.1 -37.4 -63.7 -128.5 Net profit/loss for the period -6.8 41.7 90.0 39.0 96.2 163.9 330.4 Key figures Q4 Q3 Q2 Q1 Q4 Year Figures in percentage 2008 2008 2008 2008 2007 2008 2007 Claims ratio, net 69.7 % 74.1 % 70.3 % 74.2 % 74.0 % 72.1 % 73.9 % Cost ratio, net 23.3 % 20.9 % 23.5 % 19.7 % 21.8 % 21.9 % 20.7 % Combined ratio, net 93.1 % 95.1 % 93.8 % 93.9 % 95.9 % 94.0 % 94.6 % Capital adequacy ratio 25.8 % 17.9 % * The figures have been restated in accordance with new insurance regulations 31 31
  32. 32. ODIN Forvaltning Lower assets under management 32 32
  33. 33. ODIN Forvaltning Lower assets under management Pre-tax profit per quarter • Pre-tax profit of MNOK 28 (74) in Q4 90 85 and profit for 2008 of MNOK 113 (299) 76 80 74 • Net financial income of MNOK 18 (5) in 74 72 67 Q4, of which foreign currency gains 70 amounted to MNOK 15 60 52 50 • The drop in profits was mainly caused MNOK 50 by a decrease in the assets under 40 management due to the financial crisis 30 29 26 28 and low new subscriptions 30 • The assets under management fell in 20 2008 NOK 18.6 billion, of which NOK 10 4.4 billion in Q4 to NOK 19.2 billion 0 • Market share equity funds was 13.8 2006 2007 2008 %, a reduction from 15.9 % at the turn of the year Pre-tax profit/loss - Q1 Pre-tax profit/loss - Q2 Pre-tax profit/loss - Q3 Pre-tax profit/loss - Q4 33 33
  34. 34. Stable development in savings agreements the last year in spite of the financial crisis 300 650 632 629 626 Number of agreements (1,000) 600 239.6 250 588 223.6 600 Average amount in NOK 579 198.7 200 549 550 150.6 508 150 497 107.3 500 88.2 84.3 84.1 100 65.9 450 50 0 400 2000 2001 2002 2003 2004 2005 2006 2007 2008 Number of savings agreements Average amount per agreement 34 34
  35. 35. ODIN Forvaltning Profit/loss for 2008 Q4 Q3 Q2 Q1 Q4 Year 2007 Figures in MNOK 2008 2008 2008 2008 2007 2008 Management fees 50.4 76.1 84.6 82.5 110.7 293.6 488.1 Subscription and redemption fees 9.2 7.9 10.4 14.7 24.4 42.3 97.7 Total operating income 59.6 84.1 95.0 97.2 135.1 336.0 585.8 Salaries 23.0 25.3 26.3 27.0 27.4 101.6 144.4 Depreciations 3.8 3.7 3.5 3.4 3.7 14.5 13.7 Other operating costs 23.2 32.4 38.2 41.0 34.9 134.8 144.1 Total operating costs 50.0 61.5 68.0 71.4 65.9 250.9 302.2 Operating profit 9.7 22.6 27.0 25.8 69.2 85.1 283.6 Net financial income 18.1 3.1 2.1 4.5 4.5 27.8 15.9 Pre-tax profit 27.7 25.7 29.2 30.3 73.7 112.9 299.5 Taxes 7.8 7.2 8.2 8.5 20.9 31.6 84.1 Profit after tax 20.0 18.5 21.0 21.8 52.9 81.3 215.4 35 35
  36. 36. Other factors 36 36
  37. 37. New kick-off from Frisk Forsikring • In Q1 2008, Frisk Forsikring was launched as a new brand for a product group • Used by SpareBank 1 Skadeforsikring and SpareBank 1 Livsforsikring for sales in new channels • First agreement was signed with 15 organisations in Norway’s Confederation of Sports with 230,000 members • In Q1 2009 an agreement was signed with the Norwegian Football Association with its 375,000 members • This forms the basis for direct sales of products to well over half a million sports members – and their families and friends 37 37
  38. 38. Bank. Insurance. And you. 38 38
  39. 39. Appendix 39 39
  40. 40. SpareBank 1 Gruppen consolidated Quarterly results Q4 Q3 Q2 Q1 Q4 Q3 Figures in MNOK 2008 2008 2008 2008 2007 2007 * * Part of result from subsidiaries before tax - SpareBank 1 Livsforsikring -647.7 -334.9 43.7 -51.8 46.6 111.2 - Additional provisions recognised as income in consolidated accounts -307.7 286.8 -41.7 62.6 0.0 0.0 - SpareBank 1 Skadeforsikring -9.4 58.0 125.0 54.1 133.6 120.8 - Bank 1 Oslo group -56.3 -6.2 34.4 31.9 32.4 38.7 - ODIN Forvaltning 27.7 25.7 29.2 30.3 73.7 84.5 - Share of other companies ** 0.2 7.7 9.6 5.7 4.8 3.9 - Correction subsidiaries - pro forma IFRS -7.8 -3.3 7.0 -1.8 -41.0 20.8 Net result before tax from subsidiaries -1,000.9 33.8 207.2 131.0 250.1 379.9 Total operating costs holding -16.3 -8.8 -11.9 -10.8 -17.7 -10.2 Net investment charges holding -15.5 -15.9 -12.9 -23.6 -12.4 -11.9 Gains from sale of companies holding -0.6 21.7 0.0 0.0 0.0 0.0 Share of associated company - First Securities -3.7 0.9 16.4 4.2 21.8 2.4 Net result before amortisation -1,036.9 31.6 198.8 100.8 241.7 360.2 Amortisation -1.3 -14.2 -1.3 -1.3 -1.3 -7.0 Pre-tax result -1,038.2 17.4 197.5 99.5 240.4 353.3 Taxes 9.0 -7.0 -50.0 -35.9 88.4 -70.2 Net result for the period -1,029.3 10.4 147.4 63.7 328.7 283.1 Majority interest -1,028.9 10.2 147.0 63.5 328.6 282.9 Minority interest -0.4 0.3 0.4 0.1 0.2 0.2 * The figures have been restated in accordance with new annual accounts regulations for P&C and life insurance companies ** Other companies comprise SpareBank 1 Medlemskort AS, Actor Fordringsforvaltning AS and Argo Securities AS 40 40
  41. 41. SpareBank 1 Gruppen’s ownership structure SpareBank 1 SpareBank 1 Sparebanken SpareBank 1 Samarbeidende LO SR-Bank SMN Hedmark Nord-Norge (19.89%) Sparebanker (19.89%) (9.29%) (19.89 %) (19.89 %) (11.14%) SpareBank 1 Gruppen AS SpareBank 1 SpareBank 1 ODIN Oslo Skadeforsikring Forvaltning The Alliance (100%) (100%) (100%) SpareBank 1 SpareBank 1 Argo Boligkreditt Livsforsikring Securities (100%) (75%) - Broad alliance EiendomsMegler 1 - Brands BNbank - Technology *SpareBank 1 First Gruppen Finans - Expertise Securities (Bank-owned Holding AS - Shared processes and utilisation of best practise (24,5%) operation) (100%) - Purchasing - Regional centres of expertise SpareBank 1 Actor Fordrings- SpareBank 1 - The Payments Sector: Trondheim Factoring forvaltning LTO - Credit: Stavanger (100%) (100%) (100%) - Teaching: Tromsø Verdigjenvinning (100%) * SpareBank 1 Gruppen Finans Holding AS’ function is to coordinate the underlying 41 41 companies (Application for concession has been sent to The Financial Supervisory Authority of Norway)
  42. 42. Bank 1 Oslo (parent bank) Development in non-performing loans at the end of 2008 600.0 500.0 117.5 400.0 MNOK 300.0 47.6 67.4 399.6 47.6 200.0 50.8 57.0 42.8 63.6 58.0 100.0 186.9 193.3 160.8 169.2 157.1 49.3 178.7 102.3 104.7 63.8 0.0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2006 2006 2007 2007 2007 2007 2008 2008 2008 2008 Corporate market Retail market 42 42
  43. 43. SpareBank 1 Livsforsikring Balance sheet for 2008 * Figures in MNOK 31.12.2008 30.09.2008 Intangible assets 78.3 454.0 Investments 1,359.1 1,750.4 Reinsurance's part of insurance obligations 211.2 172.6 Accounts receivable 394.3 236.8 Other assets 321.5 759.2 Prepayed liabilities and accrued income 3.4 3.3 Investments group portfolio 14,808.0 14,693.8 Investments options portfolio 4,041.0 4,216.6 Total assets 21,216.9 22,286.6 Paid in capital 1,203.7 685.1 Other equity -66.9 1,119.7 Subordinated loan capital 525.0 525.0 Insurance obligations - contractual 14,812.6 15,262.8 Insurance obligations - investment options 4,079.8 4,216.6 Provisions for obligations 98.4 72.1 Premium deposits from reinsurance companies 116.6 94.1 Other obligations 371.9 227.7 Accrued liabilities, prepaied income 75.9 83.5 Total liabilities and equity 21,216.9 22,286.6 * Based on new accounting regulations pursuant to a new act relating to insurance, life insurance companies are exempt from preparing comparison figures for 2007 43 43
  44. 44. SpareBank 1 Livsforsikring Development in premium income Q4 Q3 Q2 Q1 Q4 Year Figures in MNOK 2008 2008 2008 2008 2007 2008 2007 Individual annuity and pension insurance 61.4 54.6 58.4 50.3 103.4 224.7 253.5 Individual endowment insurance 116.6 113.6 117.0 115.3 118.3 462.4 1,465.6 Group pension insurance 125.9 133.2 135.2 377.6 158.3 771.8 700.9 Individual life insurance 41.3 41.0 40.1 40.7 41.3 163.0 156.7 Group life insurance 122.1 127.4 128.3 194.6 116.0 572.4 546.1 Unit Linked - Annuity 19.3 9.2 9.2 10.0 21.7 47.7 64.5 Unit Linked - Endowment 47.0 49.1 58.5 71.1 128.2 225.7 672.7 Defined contribution pension 171.2 169.1 174.4 159.8 135.7 674.6 590.4 Total gross due premium income 704.7 697.2 721.0 1,019.4 822.9 3,142.3 4,450.5 Premium reserves transferred from other companies 77.7 77.7 85.9 228.5 116.6 469.9 447.9 Reinsurance ceded -39.8 -40.2 -132.2 -26.4 -18.0 -238.6 -71.4 Premium income for own account 742.6 734.7 674.7 1,221.5 921.5 3,373.6 4,827.0 44 44
  45. 45. SpareBank 1 Livsforsikring Results per portfolio Previously Group established Investment choice Company portfolio individual products portfolio portfolio Total Figures in MNOK 208.4 2.2 -0.3 0.0 210.2 Risk result -24.3 -39.6 -130.5 0.0 -194.5 Administration result -476.3 -427.0 0.0 0.0 -903.3 Net investment result 158.1 193.3 -0.9 0.0 350.5 Transferred to policyholders 0.0 0.0 0.0 * -453.6 -453.6 Return on company's assets -134.1 -271.2 -131.7 -453.6 -990.6 Sum * Incl. write-down of an IT project by MNOK 417 45 45
  46. 46. Key figures Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 1) All figures are in MNOK, Figures in MNOK 1) & 2) 2008 2008 2008 2008 2007 2007 2007 2007 2006 except for the number of Group Capital adequacy ratio acc. 12.0 % 12.0 % 13.0 % 12.6 % 13.1 % 11.3 % 11.6 % 12.5 % 12.9 % savings agreements Core capital adequacy ratio acc. 9.0 % 9.0 % 9.0 % 9.2 % 9.6 % 7.9 % 8.1 % 9.0 % 9.3 % 2) All figures are per quarter, Net profit acc. -807.8 221.5 211.1 63.6 309.0 275.6 352.6 241.3 406.2 unless otherwise stated Life insurance 3) Following the entry into Gross due premium income 704.7 697.2 721.0 1,019.4 822.9 844.6 1,596.5 1,186.4 713.1 force of the new insurance Retail 285.5 267.5 283.1 287.4 413.0 462.6 1,226.9 510.6 422.4 activities act on 1 January Corporate 419.2 429.7 437.9 732.0 410.0 382.1 369.6 675.8 290.7 2008, these measurement Investment result 3) - - - - 199.0 224.5 407.6 138.6 435.3 figures are not relevant Value adjusted return on assets 3) - - - - 0.6 % 0.7 % 3.7 % 1.4 % 3.7 % Total assets acc. 21,079 22,286 23,087 23,388 23,998 23,574 23,641 22,711 22,041 4) Assets under management Capital adequacy ratio acc. 14.3 % 14.8 % 14.8 % 12.5 % 12.5 % 10.8 % 11.3 % 12.0 % 12.6 % are total assets under management excl. P&C insurance receivables and reinsurance 935.0 931.5 908.5 900.0 890.7 872.7 853.4 877.5 Net earned premium 902.6 shares of gross insurance 822.8 815.5 798.7 791.0 787.44 771.6 755.3 777.3 Retail 791.2 provisions 89.9 90.5 85 88.0 85.7 -1444.4 1,608.8 81.2 Corporate 87.6 22.3 25.5 24.7 23.8 20.0 17.6 1545.5 -1510.7 19 Reinsurance Net financial income -60.4 10.6 93.5 10.7 102.0 85.2 119.8 70.7 73.4 Assets under management acc. 4) 7,408.3 7,312.1 7,214.9 7,422.0 7,222.0 6,981.4 6,689.3 6,493.2 6,052.9 Return on financial assets -0.81 % 0.14 % 1.30 % 0.14 % 1.41 % 1.22 % 1.79 % 1.09 % 1.21 % Claims Ratio, net 69.7 % 74.1 % 70.3 % 74.2 % 74.0 % 72.4 % 74.6 % 76.7 % 69.3 % Cost Ratio, net 23.3 % 20.9 % 23.5 % 19.7 % 21.8 % 19.5 % 20.7 % 21.2 % 20.6 % Bank 1 Oslo Net interest income 91.6 105.3 95.9 96.7 97 90.4 83.0 77.5 83.5 Net loan loss provisions 50.2 31.8 -13.2 -3.8 -3.0 -3 -2.6 -1.4 -2.1 Loans acc. 21,683 20,721 19,597 18,757 18,013 17,044 16,422 15,614 15,282 Retail 15,331 14,551 13,690 12,872 12,417 11,981 11,602 11,121 10,764 Corporate 6,352 6,170 5,907 5,885 5,596 5,063 4,820 4,493 4,518 Deposits acc. 15,925 14,122 14,681 13,578 13,378 13,550 13,325 13,055 11,617 Capital adequacy ratio acc. 8.1 % 8.6 % 8.8 % 10.4 % 9.8 % 9.8 % 9.8 % 10.6 % 11.0 % Net interest income/average totalt assets 1.48 % 1.82 % 1.81 % 1.86 % 1.92 % 1.85 % 1.78 % 1.76 % 1.95 % Return on equity acc. (parent bank) 1.7 % 6.7 % 10.1 % 9.5 % 9.3 % 10.2 % 9.5 % 8.0 % 16.3 % Return on equity acc. (group) 0.6 % 5.5 % 9.0 % 8.3 % 8.1 % ODIN Assets under management acc. 19,163 23,581 30,508 31,400 37,800 45,600 51,100 46,900 43,600 Equity fund market share acc. 13.8 % 13.7 % 14.6 % 15.6 % 15.9 % 18.9 % 20.6 % 21.0 % 20.4 % Savings agreements acc. 223,643 225,732 236,182 236,681 239,605 233,539 232,563 223,790 198,677 46 46
  47. 47. Premises for calculating the pension liability • SpareBank 1 Gruppen always 31.12.2008 31.12.2007 31.12.2006 shows the prevailing market Discount rate 3.80 % 4.80 % 4.45 % Basic amount adjustment/inflation 3.75 % 4.25 % 4.25 % value of its pension liabilities in Wage adjustment 4.00 % 4.25 % 4.00 % the balance sheet Expected return on pension funds 5.80 % 5.80 % 5.40 % • Deviations from estimates are AFP early retirement plan 40 % 40 % 40 % Pension adjustments 1.50 % 2.30 % 1.90 % recognised directly in equity each quarter. For 2008, MNOK 155 is Mortality K2005 K1963 K2005 recognized in equity Disability IR2003 IR2003 IR2003 • SpareBank 1 Gruppen uses a new 4 % below 50 4 % below 50 4 % below 50 scale of tariffs, K2005 years and 2 % years and 2 % years and 2 % Cancellations above 50 years above 50 years above 50 years 47 47

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