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3rd quarter (Q3) 2009 - Presentation of results from SpareBank 1 Gruppen

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

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3rd quarter (Q3) 2009 - Presentation of results from SpareBank 1 Gruppen

  1. 1. 3rd quarter (Q3) 2009 Presentation of results from SpareBank 1 Gruppen Kirsten Idebøen, CEO 29 October 2009
  2. 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 2 2
  3. 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. 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. 4 4
  5. 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 5 5
  6. 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. 6 6
  7. 7. Bank 1 Oslo Higher net interest income in 3rd quarter and good financial income 7 7
  8. 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. 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. 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. 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 11
  12. 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 12
  13. 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 13 13
  14. 14. SpareBank 1 Livsforsikring Strong investment and risk result 14 14
  15. 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. 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 16 16
  17. 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 17 17
  18. 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. 19. SpareBank 1 Skadeforsikring High financial income and good insurance result 19 19
  20. 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 20
  21. 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. 22. ODIN Forvaltning Rising assets under management 22 22
  23. 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. 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. 25. Bank. Insurance. And you. 25 25
  26. 26. Appendix 26 26
  27. 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. 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 28
  29. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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

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