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Quarter 1 2009
Presentation of results
SpareBank 1 Gruppen

Kirsten Idebøen, acting CEO




                              ...
Highlights 1st quarter 2009
•       Profit was hit by the turbulent financial markets. SpareBank 1 Livsforsikring has a
  ...
Satisfactory profit before tax, considering the
    current market conditions
          Pre-tax profit group
             ...
Product companies hit by financial crisis

                                                                    Pre-tax pro...
SpareBank 1 Gruppen group
     Profit/loss for Q1 2009
                                                                   ...
Bank 1 Oslo
        Increased commission and financial income




    6
6
Bank 1 Oslo (group)
    Increased commission and financial income
                                                        ...
Bank 1 Oslo (parent bank)
    Good lending growth, but reduced net interest
    income
                                   ...
Bank 1 Oslo (parent bank)
    Margin and volume growth
                                                                   ...
Bank 1 Oslo (parent bank)
     Increase in non-performing loans
                                                          ...
Bank 1 Oslo (parent bank)
     Increase in losses on loans

          MNOK
                                               ...
Bank 1 Oslo (group)
     Increased commission and financial income

•    Net commission income and other                  ...
Bank 1 Oslo (group)
     Profit/loss for Q1 2009
                                                                         ...
SpareBank 1
     Livsforsikring
     Positive increase in profit before tax




     14
14
SpareBank 1 Livsforsikring
     Positive increase in profit before tax

                                                  ...
SpareBank 1 Livsforsikring
     The life insurance company financially sound

                                            ...
SpareBank 1 Livsforsikring
     Continued high shareholding in the group portfolio
     As at 31 March 2009


            ...
SpareBank 1 Livsforsikring
 Value-adjusted return on customer portfolios with guarantee                           (excl.
 ...
SpareBank 1 Livsforsikring
     Profit/loss for Q1 2009
                                                                  ...
SpareBank 1
     Skadeforsikring
     Good financial return and
     portfolio growth to date this year




     20
20
SpareBank 1 Skadeforsikring
     Good financial return and portfolio growth to date this year

                           ...
SpareBank 1 Skadeforsikring
     Two major claims in Q1 push up combined ratio for own
     account
          Combined rat...
SpareBank 1 Skadeforsikring
     Allocation of financial assets
     As at 31 March 2009


                               ...
SpareBank 1 Skadeforsikring
     Profit/loss for first quarter 2009

                                                     ...
ODIN Forvaltning
     Reduced assets under management




     25
25
ODIN Forvaltning
     Reduced assets under management
                                                   Pre-tax profit as...
ODIN Forvaltning
     Profit/loss for Q1 2009



                                                          Q1
            ...
Argo Securities
     New securities business




     28
28
Argo Securities
     New securities business

                                                                            ...
SpareBank 1 Gruppen Finans Holding
     New value chain within debt collection




     30
30
SpareBank 1 Gruppen Finans Holding
     New value chain within debt collection

 •        Consists of factoring, debt coll...
Other factors




     32
32
New profitability programme at SpareBank 1 Gruppen
     which commenced in first quarter is expected to yield
     signifi...
Bank. Insurance. And you.
     34
34
Appendix




     35
35
SpareBank 1 Gruppen group
     Quarterly results
                                                            Q1          Q...
SpareBank 1 Gruppen’s ownership structure
                                                    SpareBank 1
              Sp...
Bank 1 Oslo (parent bank)
     Increasing non-performing loans in CM

                      500.0
                      45...
SpareBank 1 Livsforsikring
     Balance sheet for Q1 2009

                                                               ...
SpareBank 1 Livsforsikring
Return ordinary customer portfolio with guarantee as at 31 March
2009
                         ...
SpareBank 1 Livsforsikring
 Booked return for customer portfolios with guarantee

                    3
                  ...
SpareBank 1 Livsforsikring
     Growth in premium income



                                                              ...
SpareBank 1 Livsforsikring
     Profit/loss per portfolio




                                                         Pre...
Tax matters I - SpareBank 1 Livsforsikring
     – Realised gains and losses
     • The tax exemption method (Section 2-38 ...
Tax matters II - SpareBank 1 Livsforsikring
     – Unrealised gains and losses
     • Within the group portfolio (traditio...
Tax cost in SpareBank 1 Gruppen’s consolidated
     accounts as at 31 March 2009
                                         ...
SpareBank 1 Skadeforsikring
       Portfolio growth of 4.0 % last 12 months

            Portfolio RM (excl. group home)  ...
Key figures SpareBank 1 Gruppen with subsidiaries
                                                                        ...
Premises for calculating the pension liability in SpareBank
     1 Gruppen
                                               ...
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Q1 2009 Financial results for SpareBank 1 Gruppen presented by acting CEO Kirsten Idebøen

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Download presentation from press conference April 28th 2009. Last ned kvartalspresentasjonen for SpareBank 1 Gruppen AS - Q1/2009.

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Q1 2009 Financial results for SpareBank 1 Gruppen presented by acting CEO Kirsten Idebøen

  1. 1. Quarter 1 2009 Presentation of results SpareBank 1 Gruppen Kirsten Idebøen, acting CEO 28 April 2009
  2. 2. Highlights 1st quarter 2009 • Profit was hit by the turbulent financial markets. SpareBank 1 Livsforsikring has a shareholding of 11 % in the group portfolio as at 31 March 2009. The group is financially sound • The profit after tax is strongly affected by the calculated effect of the tax exemption method and tax rules for investments in foreign equity funds linked to SpareBank 1 Livsforsikring • SpareBank 1 Gruppen has commenced a profitability and cost cutting programme that will create lasting and enhanced profitability • Focus on new business within the securities area through Argo Securities and debt collection through SpareBank 1 Gruppen Finans Holding 2 2
  3. 3. Satisfactory profit before tax, considering the current market conditions Pre-tax profit group • Pre-tax profit in Q1 was MNOK 99.9 (99.5) • Profit after tax in Q1 was MNOK 5 250 236 (64). The high tax cost is owing to 200 the calculated effect of the tax exemption method in SpareBank 1 137 150 MNOK Livsforsikring 122 100 100 • At the end of March, assets under 100 management were NOK 58.3 billion, up NOK 1.8 billion from 31 50 December 2008 0 • Core and capital adequacy ratio of 2005 2006 2007 2008 2009 9.8 % and 14.5 % respectively as at 31 March 2009, against 9.4 % and Pre-tax profit - Q1 12.6 % last year 3 3
  4. 4. Product companies hit by financial crisis Pre-tax profit/loss in subsidiaries • Overall profit before tax for the 70 66* subsidiaries in Q1 was MNOK 125 (131) 54 • Positive growth and improvement in net 48 50 risk result. The life insurance company 32 30 is financially sound 30 • Healthy financial return to date this year 13 11* 24 counterbalances a weaker insurance 10 MNOK -8 result in the P&C insurance company ODIN Livsfors.* Bank 1 Oslo Skadefors. -10 • Reduced volumes under management konsern SB1 in ODIN Forvaltning yield negative SB1 -30 result • Increased commission and financial -50 income in Bank 1 Oslo. Profit in first -52 quarter dominated by higher loan loss -70 provisions and reduced net interest Pre-tax profit Q1 2008 income Pre-tax profit Q1 2009 * In the consolidated accounts, MNOK 42.0 (62.6) of the loss on interests is covered by the customer’s additional provisions in Q1 2009. Allowing for this, the pre-tax profit would have been MNOK 66.4 (10.8) from the life insurance company. 4 4
  5. 5. SpareBank 1 Gruppen group Profit/loss for Q1 2009 Q1 Year Figures in MNOK 2009 2008 2008 Part of result from subsidiaries before tax - SpareBank 1 Livsforsikring 24.4 -51.8 -990.5 - Additional provisions recognised as income in consolidated accounts 42.0 62.6 0.0 - SpareBank 1 Skadeforsikring 48.1 54.1 217.7 - Bank 1 Oslo konsern 13.1 31.9 3.1 - ODIN Forvaltning -7.5 30.3 115.2 - Argo Securities -12.9 0.0 -4.0 - SpareBank 1 Medlemskort 5.6 4.0 12.1 - Share of other companies * 5.3 1.7 15.4 - Correction subsidiaries - pro forma IFRS 7.4 -1.8 -5.6 Net result before tax from subsidiaries 125.4 131.0 -636.6 Total operating costs holding -13.2 -10.8 -47.8 Net investment charges holding -17.4 -23.6 -67.8 Gains from sale of companies holding 0.0 0.0 21.1 Share of associated company - First Securities 5.1 4.2 17.7 Net result before amortisation 99.9 100.8 -713.4 Amortisation 0.0 -1.3 -18.2 Pre-tax result 99.9 99.5 -731.6 Taxes -94.8 -35.9 -126.2 Net result for the period 5.2 63.7 -857.7 Majority interest 7.5 63.5 -858.1 Minority interest -2.3 0.1 0.4 * Other companies comprise SpareBank 1 Gruppen Finans Holding AS (parent company), Actor Fordringsforvaltning AS, SpareBank 1 LTO AS and Verdigjenvinning AS 5 5
  6. 6. Bank 1 Oslo Increased commission and financial income 6 6
  7. 7. Bank 1 Oslo (group) Increased commission and financial income Pre-tax profit per quarter 50 • Pre-tax profit of MNOK 13 (32) 32 for Q1 27 30 • The decline in profit is largely 13 attributable to higher loan loss 10 write-downs, combined with MNOK reduced net interest income -10 2007 2008 2009 • Losses on loans MNOK 35 (-4) in Q1 -30 • Gross non-performing and impaired loans amount to 2.1 -50 % (0.9 %) of gross loans as at 31 March 2009 -70 Pre-tax profit - Q1 7 7
  8. 8. Bank 1 Oslo (parent bank) Good lending growth, but reduced net interest income Net interest income per quarter 120.0 2.0 % 105.3 1.9 % • Lending growth of 17.4 % last 12 97.0 96.7 95.9 100.0 90.4 89.9 88.8 1.8 % months. RM rose by 23.5 % and CM 83.0 1.7 % 80.0 by 4.6 % 1.6 % MNOK • Net interest income of MNOK 89 60.0 1.5 % 1.4 % (97) in Q1, down 8.2 % 40.0 1.3 % • Net interest income for first quarter 1.2 % 20.0 of 1.41 % (1.86 %) 1.1 % 0.0 1.0 % Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2007 2007 2007 2008 2008 2008 2008 2009 Net interest income Net interest income measured against average total assets 8 8
  9. 9. Bank 1 Oslo (parent bank) Margin and volume growth 2.17 % 22,000 2.30 % 20,000 1.80 % 18,000 1.64 % 1.27 % 1.25 % MNOK 1.15 % 1.51 % 1.50 % 1.49 % 1.30 % 1.05 % 1.37 % 1.33 % 0.90 % 1.20 0.78 % 16,000 0.81 % 0.71 %0.72 % 0.69 % 1.04 % 0.62 % 0.98 % 0.80 % 0.91 % 0.83 % 14,000 0.30 % 12,000 -0.19 % -0.20 % 10,000 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2006 2006 2006 2007 2007 2007 2007 2008 2008 2008 2008 2009 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) 9 9
  10. 10. Bank 1 Oslo (parent bank) Increase in non-performing loans % MNOK Per cent 1. kv 2008 2.5 500.0 450.0 2.0 400.0 350.0 1.5 300.0 250.0 459.2 1.0 200.0 400.6 150.0 246.1 240.9 203.6 220.0 214.0 0.5 100.0 165.8 162.7 113.1 50.0 - 0.0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2006 2007 2007 2007 2007 2008 2008 2008 2008 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 10 10
  11. 11. Bank 1 Oslo (parent bank) Increase in losses on loans MNOK Net loan Net write-offs Collective Individual losses and incomings on impairment write-downs 10.0 previous write-offs 5.0 3.8 5.0 -34.9 -1.1 -9.3 0.3 -25.9 -0.1 0.0 -5.0 -10.0 -15.0 -20.0 -25.0 -30.0 -35.0 Q1 2008 Q1 2009 -40.0 11 11
  12. 12. Bank 1 Oslo (group) Increased commission and financial income • Net commission income and other Other income per quarter income of MNOK 88 (52) for Q1 • Commission income from real estate 100 agency up 44.4 % to MNOK 29 (20) 80 • Positive result from EM1 Oslo & 60 Akershus of MNOK 0.1 (-5.9). The MNOK improvement is owing to: 40 20 – comprehensive restructuring in 2008 0 – link between the public’s expectations of interest rates and home purchases -20 – recovery in the market -40 – EM1 has increased its market share from Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2007 2007 2007 2008 2008 2008 2008 2009 7.1 % as at 31 December 2008 to 8.2 % • Income from financial investments was Guarantee commissions/others MNOK 21 (-5) and is owing to: Real estate agency commission – value change of bonds and primary Revenue from financial investments Payments system capital certificates Commission revenues from insurance and savings – currency and derivatives income – dividend received from shares and primary capital certificates 12 12
  13. 13. Bank 1 Oslo (group) Profit/loss for Q1 2009 Q1 Figures in MNOK 2009 2008 Net interest income 88.5 96.9 Other operating income 86.4 52.1 Operating costs 127.4 120.9 Operating result before losses 47.5 28.1 Net loan loss provisions 34.9 -3.8 Share of associated company 0.6 Pre-tax operating profit 13.1 31.9 Taxes 2.2 8.9 Net profit/loss for the period 10.9 23.0 Key figures Q1 Figures in percentage 2009 2008 Net interest margin 1.41 % 1.86 % Cost/income ratio excl. equity investment portfolio (parent bank) 70.9 % 70.3 % Cost/income ratio incl. equity investment portfolio 72.9 % 81.1 % Return on equity (parent bank) 4.7 % 9.5 % Return on equity 4.4 % 8.1 % Deposit coverage ratio 75.7 % 72.7 % Capital adequacy ratio (parent bank) 11.6 % 11.4 % 13 13
  14. 14. SpareBank 1 Livsforsikring Positive increase in profit before tax 14 14
  15. 15. SpareBank 1 Livsforsikring Positive increase in profit before tax Pre-tax profit/loss per quarter • Pre-tax profit of MNOK 24 (-52) in Q1 • Positive development in net risk result; 150 MNOK 87 (63) to date this year • The investment result reflects the 93 financial crisis and is MNOK -51 (-59) 100 • Total assets as at 31 March 2009 are NOK 21.2 billion, up NOK 0.1 billion 50 from 31.12.08 MNOK 24 • The return on the company’s assets so far this year totals MNOK 34 (-16) and 0 is due to the company being out of 2007 2008 2009 shares in the company portfolio, as well -50 as one-off factors -52 • Additional provisions may not be utilised during the year in the company, -100 but are recognised as income in the Pre-tax profit/loss - Q1 consolidated accounts in SpareBank 1 Gruppen by MNOK 42 in Q1 15 15
  16. 16. SpareBank 1 Livsforsikring The life insurance company financially sound Growth in buffer capital 9.3 % 10 % • Core capital and capital adequacy ratio of 8.2 % 5.8 % 8% 11.7 % (9.7 %) and 15.1 % (12.5 %) 6.3 % 6.0 % 5.8 % respectively as at first quarter 6% • The buffer capital with additional Percent 4% provisions within a one year interest rate guarantee equals 6.0 % (6.3 %) at the 2% end of March 0% • Estimated solvency margin at the end of Q4 Q1 Q2 Q3 Q4 Q1 Q1 was 191 % (238 %) -2 % 2007 2008 2008 2008 2008 2009 -4 % Securities adjustment reserve Additional provisions Interim profit Core capital in excess of minimum 16 16
  17. 17. SpareBank 1 Livsforsikring Continued high shareholding in the group portfolio As at 31 March 2009 Company portfolio Group portfolio Investment choice portfolio 11 % 5 % 0% 6% 36 % 34 % 35 % 32 % 23 % 53 % 26 % 26 % 13 % Stocks Other Stocks Other Stocks Other Bonds Real estate Bonds held to maturity Real estate Bonds held to maturity Bonds Bonds NOK 14.8 billion NOK 3.9 billion NOK 1.4 billion 17 17
  18. 18. SpareBank 1 Livsforsikring Value-adjusted return on customer portfolios with guarantee (excl. value change bonds held to maturity) Q4 Q1 Q4 Q1 Q4 Q1 Q4 Q1 2008 2009 2008 2009 2008 2009 2008 2009 1 0,5 0,3 N/A N/A N/A 0 -0,2 -1 Percent -2 -2,1 -3 -4 -5 -4,9 -6 SpareBank 1 Storebrand Vital Nordea 18 18 Source: company presentations
  19. 19. SpareBank 1 Livsforsikring Profit/loss for Q1 2009 Q1 Figures in MNOK 2009 2008 Insurance risk income 310.4 289.6 Insurance risk claims -211.8 -207.2 Risk result 98.6 82.4 Tecnical allocations -11.7 -19.6 Risk result after tecnical allocations 86.9 62.8 Fees 149.6 137.7 Expenses, exclusive comissions -139.8 -123.7 Comissions -47.0 -48.0 Administration result -37.3 -34.0 Net investment income 59.3 49.3 Guaranteed interest to policyholders -110.1 -107.9 Investment result -50.8 -58.6 Result before allocations -1.1 -29.8 Allocation to additional provisions 0.0 0.0 Transferred to policyholders -8.9 -5.8 Return on company's assets 34.4 -16.2 Net profit to owner before tax 24.4 -51.8 Taxes * 0.0 0.0 Net profit/loss for the period 24.4 -46.1 Key figures Q1 2009 2008 Capital adequacy ratio 15.1 % 12.5 % Buffer capital in % of insurance provisions 6.0 % 6.3 % * 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 76 to date this year is included in SpareBank 1 Gruppen’s consolidated tax 19 19
  20. 20. SpareBank 1 Skadeforsikring Good financial return and portfolio growth to date this year 20 20
  21. 21. SpareBank 1 Skadeforsikring Good financial return and portfolio growth to date this year Pre-tax profit per quarter • Pre-tax profit for Q1 was MNOK 48 66 70 (54) 60 • Net financial income as at March was 54 MNOK 66 (8). The financial return to 48 50 date this year equals 0.7 % (0.1 %) MNOK 40 • The insurance result for Q1 totals MNOK -13 (48) 30 • The claims ratio for own account 20 totals 79.5 % (74.2 %). The increase is owing to major claims within CM 10 • Combined ratio for own account is 100.6 % (93.9 %) as at 31 March 0 2009 2007 2008 2009 • Positive portfolio growth within both Pre-tax profit - Q1 CM and RM in Q1. Total portfolio increase of MNOK 68 (15) 21 21
  22. 22. SpareBank 1 Skadeforsikring Two major claims in Q1 push up combined ratio for own account Combined ratio for own account shown by Combined ratio for own account per quarter annum 94.6 % 93.7 % 100 % 91.1 % 89.9 % 110 % 87.2 % 90 % 100.6 % 97.9 % 95.9 % 95.1 % 93.8 % 93.9 % 92.7 % 93.1 % 20.7 % 21.6 % 91.9 % 22.1 % 80 % 20.6 % 90 % 21.1 % 20.5 % 21.2 % 20.9 % 21.8 % 19.7 % 23.5 % 70 % 20.2 % 19.5 % 23.3 % 60 % 70 % 50 % 50 % 40 % 73.9 % 72.1 % 69.3 % 69.0 % 66.7 % 79.5 % 72.5 % 76.7 % 74.0 % 74.2 % 74.1 % 70.3 % 69.7 % 30 % 72.4 % 30 % 20 % 10 % 10 % 0% 2004 2005 2006 2007 2008 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 -10 % Claims ratio Cost ratio 2007 2007 2007 2007 2008 2008 2008 2008 2009 Claims ratio Cost ratio 22 22
  23. 23. SpareBank 1 Skadeforsikring Allocation of financial assets As at 31 March 2009 Bonds held to Real estate Bank deposits maturity 15.0 % 3.6 % 11.8 % Hedge funds Stocks 4.2 % 4.5 % Bonds 60.9 % Total: NOK 7.8 billion 23 23
  24. 24. SpareBank 1 Skadeforsikring Profit/loss for first quarter 2009 Q1 Figures in MNOK 2009 2008 Gross written premium 1,237.9 1,191.2 Net earned premium 919.2 902.6 Net incurred claims -730.5 -669.7 Net insurance operating costs -194.2 -177.7 Changes in other technical reserves -7.9 -7.0 Operating result before finance -13.3 48.3 Net financial income 65.8 8.4 Other costs -0.3 0.8 Result before changes in security reserve 52.2 57.5 Changes in security reserve -4.1 -3.4 Pre-tax profit 48.1 54.1 Taxes -13.5 -15.1 Net profit/loss for the period 34.6 39.0 Key figures Q1 Figures in percentage 2009 2008 Claims ratio, net 79.5 % 74.2 % Cost ratio, net 21.1 % 19.7 % Combined ratio, net 100.6 % 93.9 % Capital adequacy ratio 28.2 % 27.3 % 24 24
  25. 25. ODIN Forvaltning Reduced assets under management 25 25
  26. 26. ODIN Forvaltning Reduced assets under management Pre-tax profit as at Q1 80 67 70 60 • Pre-tax loss of MNOK -7 (30) in Q1 50 • The decline in profits is owing to a 40 MNOK 30 lower level of assets under 30 20 management than in Q1 2008 10 -7 • Assets under management fell NOK 0 1.7 billion in Q1 to NOK 17.5 billion. 2007 2008 2009 -10 • Equity fund market share equalled Growth in profit for the year before tax 13.1 %, down from 13.8 % at the beginning of the year 350.0 300.0 299.5 250.0 232.1 MNOK 200.0 150.0 146.4 83.2 100.0 115.2 60.6 50.0 15.6 20.4 30.3 24.0 4.8 3.4 0.0 97 98 99 00 01 02 03 04 05 06 07 08 19 19 19 20 20 20 20 20 20 20 20 20 26 26
  27. 27. ODIN Forvaltning Profit/loss for Q1 2009 Q1 Figures in MNOK 2009 2008 Management fees 46.3 82.5 Subscription and redemption fees 6.2 14.7 Total operating income 52.5 97.2 Salaries 19.2 27.0 Depreciations 4.1 3.4 Other operating costs 31.7 41.0 Total operating costs 55.0 71.4 Operating profit -2.5 25.8 Net financial income -5.0 4.5 Pre-tax profit -7.5 30.3 Taxes -1.9 8.5 Net profit -5.6 21.8 27 27
  28. 28. Argo Securities New securities business 28 28
  29. 29. Argo Securities New securities business Q1 Figures in MNOK 2009 • The company was established in Commission income on stocks & derivatives 4.5 Debt Capital Markets 0.6 October 2008 Net trading result 0.3 Fee income Corporate finance 0.2 • SpareBank 1 Gruppen AS owns 75 % Total operating income 5.7 of Argo Securities AS Salaries, bonus etc. -14.0 Depreciations -1.1 • The group’s share of profit after tax is Losses on accounts receivable 0.0 Other operating costs -4.8 a loss of MNOK 7.0, owing to start-up Operating profit -14.2 costs Net financial income 1.3 Pre-tax profit -12.9 Taxes 3.6 Profit after tax -9.3 29 29
  30. 30. SpareBank 1 Gruppen Finans Holding New value chain within debt collection 30 30
  31. 31. SpareBank 1 Gruppen Finans Holding New value chain within debt collection • Consists of factoring, debt collection SpareBank 1 Gruppen Finans and acquisition of non-performance Holding AS (100%) portfolio • Target group: Banks, insurance SpareBank 1 Actor Fordrings- companies, card companies and other SpareBank 1 Factoring forvaltning LTO finance companies (100%) (100%) (100%) – Demand for this type of product supplied by established finance Verdigjenvinning institution (100%) • Strengthens Sparebank 1 Gruppen as a supplier of financial products and Financial information: strengthens the Group’s financial • The parent company’s equity foundations approx MNOK 225 – Supplements the Group’s traditional • Approx. 90 employees (group) products • Expected overall turnover 2009: MNOK – The products have historically been 137 profitable, and shown increasing • Expected overall EBIT 2009: MNOK 32 earnings – Partly counter-cyclical 31 31
  32. 32. Other factors 32 32
  33. 33. New profitability programme at SpareBank 1 Gruppen which commenced in first quarter is expected to yield significant bottom line effect • The programme will create lasting and enhanced profitability for SpareBank 1 Gruppen • Broad involvement of the organisation – Assess potential for cost savings within all parts of the group – Assess the opportunities to increase revenues through initiatives to realise synergies between the companies in the group and as a supplier to the alliance banks • Implementation and realisation of initiatives will take place between Q3 2009 and Q2 2010 33 33
  34. 34. Bank. Insurance. And you. 34 34
  35. 35. Appendix 35 35
  36. 36. SpareBank 1 Gruppen group Quarterly results Q1 Q4 Q3 Q2 Q1 Q4 Figures in MNOK 2009 2008 2008 2008 2008 2007 Part of result from subsidiaries before tax - SpareBank 1 Livsforsikring 24.4 -647.6 -334.9 43.7 -51.8 46.6 - Additional provisions recognised as income in consolidated accounts 42.0 -307.7 286.8 -41.7 62.6 0.0 - SpareBank 1 Skadeforsikring 48.1 -19.3 58.0 125.0 54.1 133.6 - Bank 1 Oslo konsern 13.1 -57.1 -6.2 34.4 31.9 32.4 - ODIN Forvaltning -7.5 30.0 25.7 29.2 30.3 73.7 - Argo Securities -12.9 -4.0 0.0 0.0 0.0 0.0 - SpareBank 1 Medlemskort 5.6 -0.3 4.2 4.2 4.0 2.2 - Share of other companies * 5.3 4.7 3.6 5.4 1.7 2.6 - Correction subsidiaries - pro forma IFRS 7.4 -7.4 -3.3 7.0 -1.8 -41.0 Net result before tax from subsidiaries 125.4 -1,008.6 33.8 207.2 131.0 250.1 Total operating costs holding -13.2 -16.3 -8.8 -11.9 -10.8 -17.7 Net investment charges holding -17.4 -15.4 -15.9 -12.9 -23.6 -15.2 Gains from sale of companies holding 0.0 -0.6 21.7 0.0 0.0 2.8 Share of associated company - First Securities 5.1 -3.7 0.9 16.4 4.2 21.8 Net result before amortisation 99.9 -1,044.6 31.6 198.8 100.8 241.7 Amortisation 0.0 -1.3 -14.2 -1.3 -1.3 -1.3 Pre-tax result 99.9 -1,046.0 17.4 197.5 99.5 240.4 Taxes -94.8 -33.3 -7.0 -50.0 -35.9 89.2 Net result for the period 5.2 -1,079.3 10.4 147.4 63.7 329.5 Majority interest 7.5 -1,078.9 10.2 147.0 63.5 329.3 Minority interest -2.3 -0.4 0.3 0.4 0.1 0.2 * Other companies comprise SpareBank 1 Gruppen Finans Holding AS (parent company), Actor Fordringsforvaltning AS, SpareBank 1 LTO AS and Verdigjenvinning AS 36 36
  37. 37. SpareBank 1 Gruppen’s ownership structure SpareBank 1 SpareBank 1 SpareBank 1 Sparebanken Samarbeidende LO Nord-Norge (19.89 %) SR-Bank SMN Hedmark 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 SpareBank 1 Boligkreditt Medlemskort Livsforsikring - Broad alliance (100%) (100%) - Brands EiendomsMegler 1 - Technology BNbank - Expertise Argo First Securities - Shared processes and utilisation of best practise Securities (Bank-owned (75%) (24.5%) operation) - Purchasing - Regional centres of expertise *SpareBank 1 Gruppen Finans - The Payments Sector: Trondheim Holding AS - Credit: Stavanger (100%) - Teaching: Tromsø SpareBank 1 Actor Fordrings- SpareBank 1 Factoring forvaltning LTO (100%) (100%) (100%) Verdigjenvinning (100%) 37 37
  38. 38. Bank 1 Oslo (parent bank) Increasing non-performing loans in CM 500.0 450.0 109.8 400.0 350.0 117.5 300.0 MNOK 250.0 47.6 67.4 200.0 50.8 57.0 42.8 349.4 150.0 283.1 63.6 58.0 100.0 193.3 49.3 178.7 160.8 169.2 157.1 102.3 104.7 50.0 63.8 0.0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2006 2007 2007 2007 2007 2008 2008 2008 2008 2009 Corporate market Retail market 38 38
  39. 39. SpareBank 1 Livsforsikring Balance sheet for Q1 2009 Q1 Figures in MNOK 2009 2008 Intangible assets 78 356 Investments 1,366 1,648 Reinsurance's part of insurance obligations 213 70 Accounts receivable 520 428 Other assets 219 160 Prepayed liabilities and accrued income 0 3 Investments group portfolio 14,894 15,561 Investments options portfolio 3,947 4,683 Total assets 21,237 22,909 Paid in capital 830 530 Other equity 329 858 Subordinated loan capital 525 525 Insurance obligations - contractual 14,922 15,484 Insurance obligations - investment options 3,991 4,683 Provisions for obligations 87 53 Premium deposits from reinsurance companies 119 0 Other obligations 356 690 Accrued liabilities, prepaied income 77 86 Total liabilities and equity 21,237 22,909 39 39
  40. 40. SpareBank 1 Livsforsikring Return ordinary customer portfolio with guarantee as at 31 March 2009 Percent Norwegian shares -0,1 Foreign shares -8,7 Money market 1,4 Norwegian bonds 2,1 Foreign bonds 1 Held to maturity 1,4 Real estate 1,6 -10 -8 -6 -4 -2 0 2 4 40 40
  41. 41. SpareBank 1 Livsforsikring Booked return for customer portfolios with guarantee 3 2,0 1,9 2 1 0,5 0,3 N/A N/A N/A Percent 0 -1 -2 -3 -2,8 Q4 Q1 Q4 Q1 Q4 Q1 Q4 Q1 -4 2008 2009 2008 2009 2008 2009 2008 2009 SpareBank 1 Storebrand Vital Nordea Nordea SpareBank 1 Storebrand Vital 41 41 Source: company presentations
  42. 42. SpareBank 1 Livsforsikring Growth in premium income Q1 Figures in MNOK 2009 2008 Individual annuity and pension insurance 62.8 50.3 Individual endowment insurance 119.2 115.3 Group pension insurance 273.4 377.6 Individual life insurance 41.7 40.7 Group life insurance 212.1 194.6 Unit Linked - Annuity 11.8 10.0 Unit Linked - Endowment 44.6 71.1 Defined contribution pension 190.9 159.8 Total gross due premium income 956.5 1,019.4 Premium reserves transferred from other companies 65.7 228.5 Reinsurance ceded -39.7 -26.4 Premium income for own account 982.4 1,221.5 42 42
  43. 43. SpareBank 1 Livsforsikring Profit/loss per portfolio Previously Group established Investment choice Company portfolio individual products portfolio portfolio Total Figures in MNOK 89.8 -2.6 -0.3 0.0 86.9 Risk result 10.7 -11.5 -36.5 0.0 -37.3 Administration result -28.5 -22.2 0.0 0.0 -50.8 Net investment result -8.4 0.0 -0.5 0.0 -8.9 Transferred to policyholders 0.0 0.0 0.0 34.4 34.4 Return on company's assets 63.5 -36.3 -37.3 34.4 24.4 Sum 43 43
  44. 44. Tax matters I - SpareBank 1 Livsforsikring – Realised gains and losses • The tax exemption method (Section 2-38 of the Tax Act (Norway)): For investments in shares and share-related securities, realised gains are exempt from tax and losses are not deductible • For investments in companies resident in a low tax EEA country, income is nevertheless liable for taxation if the company ”is not established in real terms and in real terms conducts financial activity in the country” (Section 2-38 of the Tax Act, 3rd subsection, letter a – amendment to the law applicable from 1 January 2008) - Means that for SICAV funds registered in Luxemburg and Ireland, income is taxed, whilst losses are not deductible • As a consequence, the tax cost is higher than the normal rate of 28 % in the event of losses in the share portfolio and lower tax cost than the normal rate in the event of gains in the share portfolio (with the exception of SICAV funds). (In 2007 the tax cost was reduced by MNOK 285 as a result of the tax exemption method) 44 44
  45. 45. Tax matters II - SpareBank 1 Livsforsikring – Unrealised gains and losses • Within the group portfolio (traditional life assurance): - If the company has a securities adjustment reserve (the market value is greater than cost price for assets measured at fair value) unrealised value changes will not have any effect for tax purposes, because there will be a reverse entry in the securities adjustment reserve - If there is no securities adjustment reserve, the value change will have to be treated as a ”permanent difference” (because later realisation at current value will not entail any change in the tax basis – as would have been the case for a ”temporary difference”) The consequence is that an impairment in value entails a higher tax cost and an increase in value entails a lower tax cost than the normal rate of 28 % • Within the investment choice portfolio (unit linked and ITP): - Value changes have no effect for tax purposes because there will be a reverse entry in the size of the insurance liabilities 45 45
  46. 46. Tax cost in SpareBank 1 Gruppen’s consolidated accounts as at 31 March 2009 Skatt e- Tax costs MNOK i mill.kr.) Taxkatte- S base (Beløp kostnad g runnlag -28 % Resultat før skatt i Liv 2 4,4 6,8 Pre-tax profit in SpareBank 1 Livsforsikring Group and o g selskap spo rteføljen : Kolle kt iv- company portfolio: Realiserte t ap 7 8,9 22,1 Realised losses Urealisert value changes (tap) Unrealised verdie ndrin g (loss) 9 9,9 28,0 Investering svalgporte føljen: Investment choice company portfolio: Realiserte t ap 6 6,9 18,7 Realised losses 27 0,1 75,6 In consolidated accounts: I konsernreg nska pet: Brukof additional provisions Use av tilleggsavsetninger 4 2,3 11,8 31 2,4 87,4 46 46
  47. 47. SpareBank 1 Skadeforsikring Portfolio growth of 4.0 % last 12 months Portfolio RM (excl. group home) Portfolio CM 654 660 19.2 2,740 2,725 34,5 650 2,720 15.6 11.6 640 -10,6 2,700 30.5 630 16.7 2,680 620 MNOK MNOK 2,655 12.6 2,660 610 593 600 2,640 590 2,620 580 2,600 570 2,580 560 Q1 Change Change Change Change Q1 Q1 Change Change Change Change Q1 2008 Q2 Q3 Q4 Q1 2009 2008 Q2 Q3 Q4 Q1 2009 2008 2008 2008 2009 2008 2008 2008 2009 Total CM portfolio Change in CM portfolio Total RM portfolio Change in RM portfolio 10.1 % growth last 12 months 2.6 % growth last 12 months * Overall portfolio growth incl. group home last 12 months equals 2.9 % 47 47
  48. 48. Key figures SpareBank 1 Gruppen with subsidiaries 1) All figures are stated in Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 1) & 2) Figures in MNOK 2009 2008 2008 2008 2008 2007 2007 2007 2007 MNOK Group 2) All figures are quarterly, Capital adequacy ratio 14.5 % 12.6 % 12.0 % 13.0 % 12.6 % 13.1 % 11.3 % 11.6 % 12.5 % except for where otherwise Core capital adequacy ratio 9.8 % 9.4 % 9.0 % 9.0 % 9.2 % 9.6 % 7.9 % 8.1 % 9.0 % Net profit acc. 5.2 -857.7 221.5 211.1 63.7 309.0 275.6 352.6 241.3 stated 3) Following entry into force of Life insurance new activities act on 1 Gross due premium income 956.5 704.7 697.2 721.0 1,019.4 822.9 844.6 1,596.5 1,186.4 Retail 280.1 285.5 267.5 283.1 287.4 413.0 462.6 1,226.9 510.6 January 2008, these Corporate 676.4 419.2 429.7 437.9 732.0 410.0 382.1 369.6 675.8 benchmark figures are not Investment result 3) - - - - 0.0 199.0 224.5 407.6 138.6 relevant Value adjusted return on assets 3) - - - - 0.0 % 0.6 % 0.7 % 3.7 % 1.4 % Total assets 21,237 21,217 22,287 23,059 22,909 23,998 23,574 23,641 22,711 Capital adequacy ratio 15.1 % 14.3 % 14.8 % 14.8 % 12.5 % 12.5 % 10.8 % 11.3 % 12.0 % P&C insurance 919.2 935.0 931.5 908.5 902.6 900.0 890.7 872.7 853.4 Net earned premium 804.2 822.8 815.5 798.7 791.2 791 787.44 771.6 755.3 Retail 91.0 89.9 90.5 85 87.6 88.0 85.7 -1444.4 1608.82 Corporate 24.0 22.3 25.5 24.7 23.8 20.0 17.6 1545.5 -1510.72 Reinsurance Net financial income 65.8 -72.0 8.9 91.8 8.4 102.0 85.2 119.8 70.7 Return on financial assets 0.70 % -0.97 % 0.12 % 1.27 % 0.11 % 1.41 % 1.22 % 1.79 % 1.09 % Claims Ratio, net 79.5 % 69.7 % 74.1 % 70.3 % 74.2 % 74.0 % 72.4 % 74.6 % 76.7 % Cost Ratio, net 21.1 % 23.3 % 20.9 % 23.5 % 19.7 % 21.8 % 19.5 % 20.7 % 21.2 % Bank 1 Oslo Net interest income 88.8 89.9 105.3 95.9 96.7 97.0 90.4 83.0 77.5 Net loan loss provisions 34.9 50.186 31.8 -13.2 -3.8 -3 -3 -2.6 -1.4 Loans 21,030 20,688 20,261 19,574 18,844 18,089 17,112 16,483 15,655 Retail 14,655 14,340 13,983 13,574 12,745 12,415 11,981 11,602 11,121 Corporate 6,376 6,348 6,279 6,000 6,098 5,674 5,131 4,880 4,534 Deposits 15,914 15,925 14,122 14,681 13,578 13,378 13,550 13,325 13,055 Capital adequacy ratio 11.6 % 8.0 % 9.3 % 9.9 % 11.4 % 10.0 % 9.8 % 9.8 % 10.6 % Net interest income/average totalt assets 1.41 % 1.48 % 1.82 % 1.81 % 1.86 % 1.92 % 1.85 % 1.78 % 1.76 % Return on equity acc. (parent bank) 4.7 % 1.7 % 6.7 % 10.1 % 9.5 % 9.3 % 10.2 % 9.5 % 8.0 % Return on equity acc. (group) 4.4 % -1.2 % 5.3 % 8.7 % 8.1 % 8.10 % ODIN Assets under management 17,431 19,163 23,581 30,508 31,400 37,800 45,600 51,100 46,900 Equity fund market share 13.1 % 13.8 % 13.7 % 14.6 % 15.6 % 15.9 % 18.9 % 20.6 % 21.0 % 48 48
  49. 49. Premises for calculating the pension liability in SpareBank 1 Gruppen 31.03.2009 31.03.2008 31.12.2008 • SpareBank 1 Gruppen at all times Discount rate 3.80 % 4.80 % 3.80 % shows the market value of the Basic amount adjustment/inflation 3.75 % 4.25 % 3.75 % pension liability in the balance Wage adjustment 4.00 % 4.25 % 4.00 % sheet Expected return on pension funds 5.80 % 5.80 % 5.80 % AFP early retirement plan 40 % 40 % 40 % • SpareBank 1 Gruppen applies a Pension adjustments 1.50 % 2.30 % 1.50 % new scale K2005 Mortality K2005 K2005 K2005 Disability IR2003 IR2003 IR2003 4 % below 50 4 % below 50 4 % below 50 years and 2 % years and 2 % years and 2 % Cancellations above 50 years above 50 years above 50 years 49 49

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