Preliminary accounts for 2009 - Presentation of results from SpareBank 1 Gruppen AS by Kirsten Idebøen, CEO

Preliminary accounts for 2009

Presentation of results from SpareBank 1 Gruppen

Kirsten Idebøen, CEO

10 February 2010

22

Highlights

• Historically strong annual profit before tax for the Group SpareBank 1 Gruppen, including SpareBank 1 Livsforsikring, SpareBank 1 Skadeforsikring and Bank 1 Oslo

• The profitability project Delta is on schedule

• SpareBank 1 Skadeforsikring AS has bought Skandia Lifeline Norge’s entire health insurance business from Skandia Insurance Company Ltd with a 15 % market share

• Bank 1 Oslo AS is being spun off from SpareBank 1 Gruppen and is now owned directly by the SpareBank 1 banks (90 %) and the Norwegian Confederation of Trade Unions LO (10 %) with effect from 1 January 2010

33

Historically strong annual pre-tax profit

• Pre-tax profit for the year was MNOK 1,192 (-732). Profit in Q4 of MNOK 218 (-1,046)

• Profit after tax for 2009 was MNOK 881 (-858)

• Return on equity capital in 2009 of 17.1 % (-16.3 %)

• At year-end, total assets were NOK 61.4 billion, up NOK 5.0 billion from 31.12.08

• Core and capital adequacy ratio of 11.6 % and 16.1 % at 31.12.09, compared with 9.4 % and 12.6 % at year-end 2008

Pre-tax profit group per quarter

100

350

197

441

17

432

236

100

353

218240

-200

-100

0

100

200

300

400

500

2007 2008 2009

MN

OK

-1 046-1 200

-1 000

-800

-600

-400

-200

0

200

400

600

2007 2008 2009

Resultat før skatt 1. kvartal Resultat før skatt 2. kvartal

Resultat før skatt 3. kvartal Resultat før skatt 4. kvartal

-1,200

-1,000

-800

-600

-400

-200

0

200

400

600

2007 2008 2009

Pre-tax profit - Q1 Pre-tax profit - Q2

Pre-tax profit - Q3 Pre-tax profit - Q4

,

44

218115

-991

3

392

197

42

621

-1,200

-1,000

-800

-600

-400

-200

0

200

400

600

800

Ba

nk

1O

slo

ko

ns

ern

SB

1S

ka

de

fors

.

OD

IN

MN

OK

Pre-tax profit - year 2008

Pre-tax profit - year 2009

Record-high pre-tax profit for life insurance, P&C insurance and banking

• Overall profit before tax for the subsidiaries in 2009 was MNOK 1,243 (-637). Profit in Q4 of MNOK 247 (-1,009)

• Strong investment and risk results in the insurance company. Substantially strengthened buffer capital. Very strong value adjusted return and recognised return

• Very good financial return and strong portfolio growth in the P&C insurance company

• Increasing assets under management in ODIN Forvaltning

• High net interest income and good financial income for Bank 1 Oslo

Pre-tax profit / loss in subsidiaries

SB

1L

ivs

fors

.

55

SpareBank 1 Gruppen group

Profit/loss for 2009Q4 Q3 Q2 Q1 Q4

Figures in MNOK 2009 2009 2009 2009 2008 2009 2008

Part of result from subsidiaries before tax - SpareBank 1 Livsforsikring 81.0 81.2 205.6 24.4 -647.6 392.2 -990.5 - Additional provisions recognised as income in consolidated accounts 0.0 0.0 -42.0 42.0 -307.7 0.0 0.0 - SpareBank 1 Skadeforsikring 115.3 272.8 184.9 48.1 -19.3 621.1 217.7 - Bank 1 Oslo group 41.2 74.7 67.6 13.1 -57.1 196.6 3.1 - ODIN Forvaltning 24.0 16.0 9.6 -7.5 30.0 42.1 115.2 - Argo Securities -6.9 -14.6 -11.9 -12.9 -4.0 -46.3 -4.0 - SpareBank 1 Medlemskort 1.2 1.8 4.1 5.6 -0.3 12.6 12.1 - SpareBank 1 Gruppen Finans Holding 1.8 3.9 11.0 5.3 4.7 22.1 15.4 - Correction subsidiaries - pro forma IFRS -10.6 12.0 -6.0 7.4 -7.4 2.8 -5.6Net result before tax from subsidiaries 247.0 447.8 423.0 125.4 -1,008.6 1,243.1 -636.6Total operating costs (parent company) -15.5 -13.2 -12.1 -13.3 -16.3 -54.1 -47.8Net investment charges (parent company) -10.5 -2.1 -7.0 -17.3 -15.4 -37.0 -67.8Gains from sale of companies 0.0 0.0 29.2 0.0 -0.6 29.2 21.1Share of associated company -2.8 0.0 8.4 5.1 -3.7 10.7 17.7Net result before amortisation 218.1 432.4 441.4 99.9 -1,044.6 1,191.9 -713.4Amortisation 0.0 0.0 0.0 0.0 -1.3 0.0 -18.2Pre-tax result 218.1 432.4 441.4 99.9 -1,046.0 1,191.9 -731.6Taxes -34.7 -30.9 -150.7 -94.8 -33.3 -311.1 -126.2Net result for the period 183.4 401.5 290.7 5.2 -1,079.3 880.7 -857.7

Majority interest 184.6 404.1 292.9 7.5 -1,078.9 889.1 -858.1Minority interest -1.2 -2.6 -2.1 -2.3 -0.4 -8.3 0.4

Year

66

Bank 1 OsloHistoric annual profit with high net interest income and good financial income

77

Bank 1 Oslo (group)Historic annual profit with high net interest income and good financial income

• Pre-tax profit of MNOK 197 (3) in 2009. Result for Q4 was MNOK 41 (-57)

• Profit growth is attributable to higher income from financial investments and higher net interest income

• Losses on loans MNOK 123 (65) in 2009, of which MNOK 32 (50) in Q4

• Gross commitments in default and doubtful commitments amounted to 2.1 % (1.9 %) of gross lending at 31.12.09

• Pre-tax profit from EiendomsMegler 1 Oslo & Akershus of MNOK 7 (-55)

Pre-tax profit per quarter

27 32

13

33 3439

75

32

-57

41

68

-6

-80

-60

-40

-20

0

20

40

60

80

100

2007 2008 2009

MN

OK

Pre-tax profit - Q1 Pre-tax profit - Q2Pre-tax profit - Q3 Pre-tax profit - Q4

88

Bank 1 Oslo (parent bank)

Higher net interest income in second half-year

• Lending growth incl. Boligkreditt of 11.6 % in 2009, of which RM rose by 15.3 % and CM by 2.6 %

• Net interest income of MNOK 408 (388) in 2009. In Q4 net interest income was MNOK 119 (90)

• Net interest income at 31.12.09 of 1.59 % (1.71 %)

Netto renteinntekter og rentenetto

96.7 95.9105.3

89.9 88.8 89.9

110.6119.0

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

Q12008

Q22008

Q32008

Q42008

Q12009

Q22009

Q32009

Q42009

MN

OK

1.0 %

1.1 %

1.2 %

1.3 %

1.4 %

1.5 %

1.6 %

1.7 %

1.8 %

1.9 %

2.0 %

Net interest income Net interest income measuredagainst average total assets

99

2.21 %2.31 %

2.09 %

-0.13 %

0.11 %

0.88 %0.86 %0.87 % 0.77 %0.84 %

1.42 %

2.32 %

0.91 %1.05 %1.10 %

1.23 %1.35 %

1.49 %

1.22 %1.34 %1.36 %

0.68 %

-0.35 %

0.44 %

10,000

12,000

14,000

16,000

18,000

20,000

22,000

Q12007

Q22007

Q32007

Q42007

Q12008

Q22008

Q32008

Q42008

Q12009

Q22009

Q32009

Q42009

-0.50 %

0.00 %

0.50 %

1.00 %

1.50 %

2.00 %

2.50 %

Lending Spread for ordinarylending to customers

Spread for depositsfrom customers


Improved deposit margin in second half-year

The reference interest rate used in the margin calculation is 3 months NIBOR

MN

OK

1010


Greater losses on loans compared with last year – loss as percentage of gross lending 0.59 %

MNOK Individual write-downs

Group write-downs

Net write-offs and incomings

on previous write-offs

Total loss on loans

Total loss on loans Q4

-50.2-52.3-65.13.5-16.3 -32.3-123.2-35.0-65.9 -22.3

-140.0

-120.0

-100.0

-80.0

-60.0

-40.0

-20.0

0.0

20.0

2008 2009

1111

Bank 1 Oslo (group)

Increased commission and financial income

• Income from financial investments was MNOK 137 (-66) in 2009

– Bond portfolio: MNOK 50 (-15)– Shares and primary capital

certificates: MNOK 72 (-59)

• Net commission and other income of MNOK 305 (255) for 2009

– Commission income from real estate agency up 34.6 % to MNOK 127 (94)

Other income per quarter

-40

-20

0

20

40

60

80

100

120

140

Q12008

Q22008

Q32008

Q42008

Q12009

Q22009

Q32009

Q42009

MN

OK

Guarantee commissions/othersReal estate agency commissionRevenue from financial investmentsPayments systemCommission revenues from insurance and savings

1212

EiendomsMegler 1 – back on top

Source: Dagens Næringsliv. Tuesday 26 January

Market share Market shareGrowth 2009 2008

PRIVATmegleren 3 % 13 % 10 %EiendomsMegler 1 2 % 9 % 7 %OBOS 2 % 8 % 6 %Ihus 1 % 6 % 5 %DnB NOR 1 % 15 % 14 %Fokus Krogsveen 0 % 9 % 9 %Ring 0 % 4 % 4 %Postbanken 0 % 3 % 3 %Nordvik og partn 0 % 1 % 1 %Aktiv -1 % 12 % 13 %

1313

SpareBank 1 LivsforsikringHistoric annual profit with strong investment and risk results

1414

SpareBank 1 Livsforsikring

Historic annual profit with strong investment and risk results

• Pre-tax profit was MNOK 392 (-1.039) for 2009. Profit of MNOK 81 (-696) in Q4

• Positive development in net risk result: MNOK 352 (210) to date this year

• The investment profit was MNOK 557 (-906) for 2009 and MNOK 125 (-573) in Q4

• Total assets as at 31.12.09 were NOK 24.3 billion, up 14.5 % from 31.12.08


44

206

-335

81

-648

24

-52

93129111 81

47

-700-600

-500-400

-300-200-100

0100

200300

2007 2008 2009

MN

OK

Pre-tax profit/loss - Q1 Pre-tax profit/loss - Q2Pre-tax profit/loss - Q3 Pre-tax profit/loss - Q4

1515


Strengthened buffer capital in the life insurance company

• Core capital and capital adequacy ratio of 16.1 % and 19.0 % at 31.12.09, compared with 11.2 % and 14.3 % the previous year

• Buffer capital after application of the profit for the year was 11.7 % (5.8 %)* at 31.12.09

• Estimated solvency margin at the end of 2009 was 264 % (223 %)

• Additional provisions amounted to MNOK 289 (172) at year-end 2009

• The securities adjustment reserve was MNOK 327 (0) at 31.12.09

Growth in buffer capital

*) Buffer capital incl. profit for the year was 15.1 % (5.8 %)

11.7 %

6.0 %

11.7 %

5.8 %

5.8 %

13.7 %

-4 %

-2 %

0 %

2 %

4 %

6 %

8 %

10 %

12 %

14 %

16 %

Q32008

Q42008

Q12009

Q22009

Q32009

Q42009

Pe

rce

nt

Securities adjustment reserveAdditional provisionsInterim profitCore capital in excess of minimum

1616

Investment choice portfolio

Stocks Other Bonds

Company portfolio

Stocks OtherReal estate Bonds held to maturityBonds

Group portfolio

Stocks OtherReal estate Bonds held to maturityBonds

SpareBank 1 Livsforsikring Rising shareholding in the group portfolio

NOK 15.5 (14.7) billion NOK 2.5 (1.3) billion NOK 5.6 (4.0) billion

At 31.12.2009 *)

34.2 (31.4) %

24.3 (30.3) %

14.5 (12.4) %

21.7 (22.9) %

5.2 (3.0) %

19.4 (1.0) %0.1 (7.3) %

48.7 (26.9) % 14.7 (32.6) %

17.0 (32.2) %

31.5 (28.9) %61.4 (54.4) %

7.1 (16.7) %

* Figures in brackets are as at 31.12.08

1717


Good value-adjusted return on customer portfolios with

guarantee (excl. change in value construction)

4.7

7.1

3.13.5

6.25.4

9.5

0

1

2

3

4

5

6

7

8

9

10

11

12

SpareBank 1 Storebrand Vital Nordea

Pe

r c

en

t

Q32009

Q42009

Q32009

Q42009

Q32009

Q42009

Q32009

Q42009

NA

Source: company presentations

1818

SpareBank 1 SkadeforsikringHistoric results with high financial return and good portfolio growth

1919

SpareBank 1 SkadeforsikringHistoric results with high financial return and good portfolio growth

• Pre-tax profit was MNOK 621 (218) for 2009. Profit in Q4 of MNOK 115 (-19)

• Net financial income in 2009 was MNOK 535 (37). Financial return at 31.12.09 was 6.6 % (0.5 %)

• The insurance result for 2009 was MNOK 114 (216). In Q4 this was MNOK -2 (72)

• The claims ratio for own account totals 73.8 % (72.1 %) and the combined ratio for own account is 96.2 % (94.0 %) at 31.12.09

• Strong portfolio growth of 6.7 % (2.9 %)


125121

58

273

115

66 54 48

139

185

134

-19

-50

0

50

100

150

200

250

300

2007 2008 2009

MN

OK

Pre-tax profit - Q1 Pre-tax profit - Q2Pre-tax profit - Q3 Pre-tax profit - Q4

2020

SpareBank 1 Skadeforsikring Major claims in Q1 and Q4 push up combined ratio for own account

Combined ratio for own account per quarter Combined ratio for own account per year

87.2 %89.9 %

94.6 % 96.2 %94.0 %

24.8 %

74.0 % 74.2 %70.3 %

74.1 % 69.7 %79.5 %

73.5 % 67.5 % 74.8 %

23.5 % 20.9 %21.8 % 19.7 % 23.3 %

21.1 %22.1 %

21.9 %

99.6 %

89.3 %95.6 %

100.6 %93.1 %95.1 %93.8 %93.9 %95.9 %

0 %

20 %

40 %

60 %

80 %

100 %

Q42007

Q12008

Q22008

Q32008

Q42008

Q12009

Q22009

Q32009

Q42009

Claims ratio Cost ratio

66.7 %73.8 %72.1 %73.9 %69.3 %

20.7 % 21.9 %20.5 % 20.6 %

22.5 %

0 %

20 %

40 %

60 %

80 %

100 %

2005 2006 2007 2008 2009

Claims ratio Cost ratio

2121

SpareBank 1 Skadeforsikring has bought Skandia Lifeline Norge and is establishing a strong market position in health insurance

• On 23 Dec. 2009 SpareBank 1 Skadeforsikring AS signed a contract to buy Skandia Lifeline Norge’s entire health insurance business from Skandia Insurance Company Ltd.

• This gives the company 20,000 new insurance customers and a market share of 15 % of the Norwegian health insurance market

• The health insurance market has had an annual growth of 46 % from 2003 to 2008, and continued growth is expected in the years to come

• The transaction is subject to approval by the Norwegian and Swedish authorities

2222

ODIN ForvaltningRemoving subscription and redemption fees

2323

ODIN Forvaltning

Removing subscription and redemption fees

• Pre-tax profit was MNOK 42 (115) for 2009. Profit in Q4 of MNOK 24 (30)

• Assets under management rose in 2009 by NOK 8.8 billion to NOK 28.0 billion

• 9 out of 11 self-managed equity funds achieved a better return than their benchmark portfolios on 31.12.09

• Effective from 21 December 09, ODIN has removed subscription and redemption fees. There will only be an annual management fee


74

29

10

85

2616

74

3024

-7

30

67

-20

0

20

40

60

80

100

2007 2008 2009

MN

OK

Pre-tax profit/loss - Q1 Pre-tax profit/loss - Q2Pre-tax profit/loss - Q3 Pre-tax profit/loss - Q4

2424

Argo SecuritiesThe foundations have been laid

2525

Argo Securities:

The foundations have been laid

• In 2009 Argo Securities (73.25 %) expanded its workforce from 37 to 70 employees and is now a fully fledged brokerage house

• Designed for growth, the company is now taking market shares in a number of areas, as can be seen in the brokerage statistics for January

• The result for 2009 reflects the desire to expand and improve expertise– Pre-tax loss of MNOK -46.3

• The owners and the company are determined to achieve a profit in 2010

Source: Finansavisen Monday 1 February 2010

2626

SpareBank 1 Gruppen Finans Holding groupSolid performance in the first year of operation for the receivables management company

Actor Fordrings-forvaltning

(100% )

Actor Fordrings-forvaltning

(100% )

Actor Portefølje(100% )

Actor Portefølje(100% )

SpareBank 1 Factoring(100% )

SpareBank 1 Factoring(100% )

ActorVerdigjenvinning

(100% )

ActorVerdigjenvinning

(100% )

SpareBank 1 Gruppen Finans

Holding AS(100% )


Holding AS(100% )

2727

SpareBank 1 Gruppen Finans Holding groupSolid performance in the first year of operation for the receivables management company

• SpareBank 1 Gruppen Finans Holding group had an overall pre-tax profit of MNOK 22

• Actor Fordringsforvaltning (receivables management) had a pre-tax profit of MNOK 26 (15)

• SpareBank 1 Factoring had a pre-tax profit of MNOK 9 in 2009

– The company increased its market share by 1.4 % to 9.1 %

– The overall factoring market shrank by 13.6 %

• Actor Portefølje (portfolio acquisition) and its subsidiary Actor Verdigjenvinning (debt collection of old claims) had a total loss of MNOK 3 in 2009

– In Q4 the company bought several portfolios that ensure both companies good prospects for 2010

*)

*) In the group result, the profit for the first three months, MNOK 3.2, has been recognised directly in equity

Pre-tax profit for 2009

MNOK

8.9

22.125.8

-1.0-1.9

-5

0

5

10

15

20

25

30

Act

or

Fo

rdri

ng

s-fo

rval

tnin

g

Sp

areB

ank

1F

acto

rin

g

Act

or

Po

rtef

ølje

Act

or

Ver

di-

gje

nvi

nn

ing

Gro

up

2828

The profitability project Delta is ahead of schedule in terms of realisation of profitability effects and staff cutbacks - The 2009 accounts have been charged with restructuring costs of MNOK 70

REALISED EFFECTS AT 31 DECEMBER 2009

Realisation of profitability effects over time (MNOK, cumulative annual rate)

Realisation of staff rationalisation over time (FTEs, cumulative)

• An implemented measure qualifies for full-year effect. This 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

• Bank1 is still included in the figures. See the Appendix for figures excluding Bank1

450

332

125

29

182

35

2H 20101H 20102H 20091H 2009

Realised to date

Plan

177

135

82

31

105

36

2H 20101H 20102H 20091H 2009

Realised to date

Plan

2929

SpareBank 1 Gruppen

- well equipped for further growth

3030

Bank. Insurance. And you.

3131

Appendix

3232

SpareBank 1 Alliance

SpareBank 1 Gruppen AS

SpareBank 1SR-Bank (19,5 %)

SpareBank 1SMN

(19,5 %)

SpareBank 1Nord-Norge

(19,5 %)

SparebankenHedmark

(12 %)

SamarbeidendeSparebanker

(19,5 %)

Norwegian Confederation

of Trade Unions (LO) (10 %)

The AllianceSpareBank 1Skadeforsikring AS

(100%)

SpareBank 1Livsforsikring AS

(100%)

ODIN Forvaltning AS

(100%)

Argo Securities AS

(73,25%)

Bank-owned operation:

SpareBank 1 Boligkreditt AS

EiendomsMegler 1

BNbank ASA

SpareBank 1 Oslo & Akershus


Holding AS(100%)

SpareBank 1Medlemskort AS

(100%)

Broad alliance - Brands - Technology - Expertise - Shared processes / best practise - Purchasing

Regional centres of expertise - The Payments Sector: Trondheim - Credit: Stavanger - Teaching: Tromsø

SpareBank 1 Factoring AS

(100 %)

Actor Fordrings-forvaltning AS

(100 %)

Actor Portefølje AS

(100 %)

Actor Verdigjenvinning AS

(100 %)

3333

Bank 1 Oslo spun off from SpareBank 1 Gruppen with effect from 1 January 2010

• 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 Gruppen AS

• Establishing a clearer division between production and distribution in SpareBank 1 Alliansen was an important consideration in the decision to change the ownership model for Bank 1 Oslo

• Bank 1 Oslo will continue to be a part of SpareBank 1 Alliansen, which will involve a stronger commitment to the market in Oslo and Akershus

• Estimated effects for SpareBank 1 Gruppen as at 31 December 2009

– Core capital adequacy: +3.3 percentage points

– Capital adequacy: +4.1 percentage points

– Total assets: NOK -25.6 billion.

Products:- Life insurance- P&C insurance- Unit trusts- Securities trading- Receivables management- Factoring- Member cards- etc.

- Banking- Real estate agency- Distribution of products

SpareBank 1 banks LO

90% 10%

SpareBank 1 Gruppen AS

Bank 1 Oslo AS

3434

SpareBank 1 Gruppen group Quarterly results

Q4 Q3 Q2 Q1 Q4 Q3Figures in MNOK 2009 2009 2009 2009 2008 2008

Part of result from subsidiaries before tax - SpareBank 1 Livsforsikring 81.0 81.2 205.6 24.4 -647.6 -334.9 - Additional provisions recognised as income in consolidated accounts 0.0 0.0 -42.0 42.0 -307.7 286.8 - SpareBank 1 Skadeforsikring 115.3 272.8 184.9 48.1 -19.3 58.0 - Bank 1 Oslo group 41.2 74.7 67.6 13.1 -57.1 -6.2 - ODIN Forvaltning 24.0 16.0 9.6 -7.5 30.0 25.7 - Argo Securities -6.9 -14.6 -11.9 -12.9 -4.0 0.0 - SpareBank 1 Medlemskort 1.2 1.8 4.1 5.6 -0.3 4.2 - SpareBank 1 Gruppen Finans Holding 1.8 3.9 11.0 5.3 4.7 3.6 - Correction subsidiaries - pro forma IFRS -10.6 12.0 -6.0 7.4 -7.4 -3.3Net result before tax from subsidiaries 247.0 447.8 423.0 125.4 -1,008.6 33.8Total operating costs (parent company) -15.5 -13.2 -12.1 -13.2 -16.3 -8.8Net investment charges (parent company) -10.5 -2.1 -7.0 -17.4 -15.4 -15.9Gains from sale of companies 0.0 0.0 29.2 0.0 -0.6 21.7Share of associated company -2.8 0.0 8.4 5.1 -3.7 0.9Net result before amortisation 218.1 432.4 441.4 99.9 -1,044.6 31.6Amortisation 0.0 0.0 0.0 0.0 -1.3 -14.2Pre-tax result 218.1 432.4 441.4 99.9 -1,046.0 17.4Taxes -34.7 -30.9 -150.7 -94.8 -33.3 -7.0Net result for the period 183.4 401.5 290.7 5.2 -1,079.3 10.4

Majority interest 184.6 404.1 292.9 7.5 -1,078.9 10.2Minority interest -1.2 -2.6 -2.1 -2.3 -0.4 0.3

3535

Bank 1 Oslo (group)Profit/loss for 2009

Q4 Q3 Q2 Q1 Q4Figures in MNOK 2009 2009 2009 2009 2008 2009 2008

Net interest income 119.5 110.2 89.7 88.5 91.6 407.9 391.7Other operating income 99.7 130.7 125.8 87.0 43.4 443.2 188.4Operating costs 145.7 135.3 123.0 127.4 141.9 531.4 511.9Operating result before losses 73.5 105.6 92.6 48.0 -6.9 319.8 68.1Net loan loss provisions 32.3 30.9 25.0 34.9 50.2 123.2 65.1Pre-tax operating profit 41.2 74.7 67.6 13.1 -57.1 196.6 3.1Taxes 5.9 14.1 8.9 2.2 -1.5 31.1 15.4Net profit/ loss for the period 35.3 60.6 58.7 10.9 -55.6 165.5 -12.3

Key figures Q4 Q3 Q2 Q1 Q4Figures in percentage 2009 2009 2009 2009 2008 2009 2008Net interest margin 1.82 % 1.71 % 1.41 % 1.41 % 1.48 % 1.59 % 1.73 %Cost/ income ratioexcl. equity investment portfolio (parent bank) 63.5 % 65.1 % 74.5 % 70.9 % 79.3 % 68.1 % 70.2 %Cost/ income ratioincl. equity investment portfolio 66.5 % 56.2 % 57.0 % 72.6 % 104.5 % 62.4 % 88.3 %Return on equity (parent bank) 14.7 % 0.2 %Return on equity 15.7 % -1.5 %Deposit coverage ratio 69.8 % 77.0 %Capital adequacy ratio (parent bank) 12.1 % 8.0 %Core capital adequacy ratio (parent bank) 9.1 % 7.9 %

Year

Year

3636

165.8 162.7113.1

246.1

400.6459.2

358.0416.7 439.6

214.0

% 1. kv 2008

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

400.0

450.0

500.0

Q32007

Q42007

Q12008

Q22008

Q32008

Q42008

Q12009

Q22009

Q32009

Q42009

MNOK

-

0.5

1.0

1.5

2.0

2.5

Total non-performing loans

as % of gross loans

Bank 1 Oslo (parent bank)Stable development in non-performing loans in 2009, but higher than in 2008

Percent

Non-performing loans = Total of overdue claims over 90 days and impaired non-overdue claims over 90 days

3737

Bank 1 Oslo (parent bank) Stable development in non-performing loans

102.3 104.763.8

178.7

283.1349.4

233.9308.7 303.0

63.6

67.4

117.5

109.8

124.1

108.0 136.6

157.1

57.0

49.3

58.0

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

400.0

450.0

500.0

Q32007

Q42007

Q12008

Q22008

Q32008

Q42008

Q12009

Q22009

Q32009

Q42009

MN

OK

Corporate market Retail market

3838

SpareBank 1 Livsforsikring Profit/loss for 2009

*

* 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 158 year-to-date is included in SpareBank 1 Gruppen’s consolidated tax

Q4 Q3 Q2 Q1 Q4Figures in MNOK 2009 2009 2009 2009 2008 2009 2008 Insurance risk income 301.6 303.9 304.7 310.4 290.8 1,220.6 1,159.5 Insurance risk claims -218.9 -208.0 -190.7 -211.8 -207.5 -829.4 -895.7Risk result 82.7 95.9 114.0 98.6 83.3 391.2 263.9 Tecnical allocations -7.8 -8.5 -10.9 -11.7 -2.8 -38.9 -53.6Risk result after tecnical allocations 74.9 87.4 103.2 86.9 80.5 352.3 210.2 Fees 140.1 148.2 128.9 146.0 134.3 563.2 559.3 Expenses, exclusive comissions -150.0 -132.7 -132.2 -139.8 -113.6 -554.7 -511.8 Comissions -57.3 -49.7 -47.6 -47.0 -93.8 -201.6 -255.3Administration result -67.2 -34.2 -50.8 -40.9 -73.0 -193.1 -207.8 Net investment income 237.0 241.8 464.4 59.3 -463.2 1,002.4 -468.6 Guaranteed interest to policyholders -111.8 -110.3 -112.9 -110.1 -109.8 -445.0 -436.9I nvestment result 125.2 131.5 351.5 -50.8 -573.0 557.4 -905.6Result before allocations 58.4 184.7 403.8 -4.7 -565.6 642.1 -903.1 Allocation to additional provisions 28.9 -88.6 -68.2 0.0 345.1 -127.9 345.1 Compensation guaranteed interest 3.7 3.7 3.6 3.6 3.8 14.6 13.3 Transferred to policyholders -50.2 -5.1 -145.4 -8.9 7.3 -209.5 5.4 Return on company's assets 40.3 -13.4 11.7 34.4 -486.6 73.0 -499.7Net profit to owner before tax 81.0 81.2 205.6 24.4 -696.0 392.2 -1,038.9 Taxes 0.0 0.0 0.0 0.0 0.0 0.0 0.0Net profit/ loss for the period 81.0 81.2 205.6 24.4 -696.0 392.2 -1,038.9

Key figures Year2009 2008

Capital adequacy ratio 19.0 % 14.3 %Buffer capital in % of insurance provisions 15.1 % 5.8 %Buffer capital in % of insurance provisions after allocation of profits 11.7 % 5.8 %

Year

3939


Return ordinary customer portfolio with guarantee as at 31 December 2009

6.9

70.2

30.2

4.7

6.6

7.5

5.2

0 20 40 60 80

Real estate

Hold to maturity

Foreign bonds

Norwegian bonds

Money market

Foreign shares

Norwegian shares

Percent

4040


Booked return for customer portfolios with guarantee 2009

3.8

5.4

3.1 3.2

4.94.7

7.1

0

1

2

3

4

5

6

7

8

SpareBank 1 Storebrand Vital Nordea

Pe

rce

nt

NA

Q32009

Q42009

Q32009

Q42009

Q32009

Q42009

Q32009

Q42009

Source: company presentations

4141

SpareBank 1 Livsforsikring Balance sheet as at 31 December 2009

Figures in MNOK 2009 2008 Intangible assets 38 78 Investments 2,498 1,359 Reinsurance's part of insurance obligations 221 211 Accounts receivable 90 394 Other assets 241 322 Prepayed liabilities and accrued income 0 3 Investments group portfolio 15,629 14,808 Investments options portfolio 5,576 4,041Total assets 24,294 21,217 Paid in capital 1,243 1,204 Other equity 397 -67 Subordinated loan capital 525 525 Insurance obligations - contractual 15,513 14,813 Insurance obligations - investment options 5,658 4,080 Provisions for obligations 88 98 Premium deposits from reinsurance companies 129 117 Other obligations 658 372 Accrued liabilities, prepaied income 83 76Total liabilities and equity 24,294 21,217

Year

4242

SpareBank 1 Livsforsikring Growth in premium income

Q4 Q3 Q2 Q1 Q4 YearFigures in MNOK 2009 2009 2009 2009 2008 2009 2008 Individual annuity and pension insurance 77.5 64.1 65.3 62.8 61.4 269.6 224.7 Individual endowment insurance 125.5 121.7 120.3 119.2 116.6 486.7 462.4 Group pension insurance 87.2 109.4 94.1 273.4 125.9 564.1 771.8 Individual life insurance 43.9 43.1 42.3 41.7 41.3 171.0 163.0 Group life insurance 118.1 128.7 116.1 212.1 122.1 575.0 572.4 Unit Linked - Annuity 14.0 11.2 10.8 11.8 19.3 47.9 47.7 Unit Linked - Endowment 69.6 67.8 76.4 44.6 47.0 258.3 225.7 Defined contribution pension 184.7 185.2 193.0 190.9 171.2 753.7 674.6Total gross due premium income 720.5 731.1 718.3 956.5 704.7 3,126.4 3,142.3 Premium reserves transferred from other companies 45.0 90.9 83.8 65.7 77.7 285.4 469.9 Reinsurance ceded -39.0 -39.0 -40.0 -39.7 -39.8 -157.7 -238.6Premium income for own account 726.5 783.0 762.1 982.4 742.6 3,254.1 3,373.6

4343

SpareBank 1 LivsforsikringProfit/loss per portfolio as at 31 December 2009

Figures in MNOKGroup

portfolio

Previouslyestablished

individual productsInvestment choice

portfolioCompanyportfolio Total

Risk result 359.7 -6.0 -1.4 0.0 352.3Administration result 0.0 -49.7 -143.4 0.0 -193.1Net investment result 331.3 224.2 0.0 1.9 557.4Reserves - long life 0.0 -74.5 0.0 0.0 -74.5Compensation interest guarantee 14.6 0.0 0.0 0.0 14.6Transferred to policyholders -267.3 -70.1 0.0 0.0 -337.4Return on company's assets 0.0 0.0 0.0 73.0 73.0Sum 438.2 23.9 -144.7 74.9 392.2

4444

SpareBank 1 Skadeforsikring Profit/loss for 2009

Q4 Q3 Q2 Q1 Q4Figures in MNOK 2009 2009 2009 2009 2008 2009 2008Gross written premium 1,004.4 995.1 1,033.7 1,237.9 917.8 4,271.2 4,044.0Net earned premium 983.1 971.8 940.2 919.2 935.0 3,814.3 3,677.6Net incurred claims -735.8 -655.6 -691.2 -730.5 -652.1 -2,813.1 -2,651.3Net insurance operating costs -243.8 -212.5 -207.6 -194.2 -218.0 -858.0 -804.2Other insurance income/costs 0.5 -4.2 5.7 -3.4 4.4 -1.4 7.5Changes in other technical reserves -6.3 0.1 -13.4 -7.9 2.2 -27.5 -13.9Operating result before finance -2.3 99.7 33.7 -16.7 71.5 114.3 215.8Net financial income 128.6 177.8 158.3 70.1 -74.7 534.8 36.9Other costs -1.1 -1.1 -2.3 -1.3 -1.7 -5.8 -7.2Result before changes in security reserve 125.1 276.4 189.6 52.2 -5.0 643.3 245.5Changes in security reserve -9.8 -3.6 -4.7 -4.1 -14.4 -22.2 -27.8Pre-tax profit 115.3 272.8 184.9 48.1 -19.3 621.1 217.7Taxes -20.7 -59.2 -51.8 -13.5 -25.4 -145.2 -91.8Net profit/loss for the period 94.6 213.5 133.2 34.6 -44.7 475.9 125.9

Key figures Q4 Q3 Q2 Q1 Q4Figures in percentage 2009 2009 2009 2009 2008 2009 2008Claims ratio, net 74.8 % 67.5 % 73.5 % 79.5 % 69.7 % 73.8 % 72.1 %Cost ratio, net 24.8 % 21.9 % 22.1 % 21.1 % 23.3 % 22.5 % 21.9 %Combined ratio, net 99.6 % 89.3 % 95.6 % 100.6 % 93.1 % 96.2 % 94.0 %Capital adequacy ratio 26.5 % 29.2 %

Year

Year

4545

SpareBank 1 Skadeforsikring

Strong portfolio growth of 6.7 % (2.9 %) in 2009

Bestand BM

588634

704

500

550

600

650

700

750

2007 2008 2009

MN

OK

+7.9 %+10.9 %

+2.0 %

+5.8 %

+2.9 %

+6.7 %

Retail Market portfolio Corporate market portfolio Total portfolio

3,1283,191

3,377

3,000

3,100

3,200

3,300

3,400

2007 2008 2009

3,7163,825

4,080

3,5003,6003,7003,8003,9004,0004,1004,200

2007 2008 2009

4646

ODIN Forvaltning Profit/loss for 2009

Q4 Q3 Q2 Q1 Q4Figures in MNOK 2009 2009 2009 2009 2008 2009 2008Management fees 74.5 66.9 57.0 46.3 50.4 244.8 293.6Subscription and redemption fees 6.8 6.1 6.7 6.2 9.2 25.9 42.3Total operating income 81.4 73.0 63.8 52.5 59.6 270.7 336.0Salaries 27.0 23.4 18.5 19.2 23.0 88.1 101.6Depreciations 4.0 4.0 3.9 4.1 3.8 16.0 14.5Other operating costs 33.6 28.0 30.9 31.7 23.2 124.2 134.8Total operating costs 64.6 55.4 53.4 55.0 50.0 228.3 250.9Operating profit 16.8 17.6 10.4 -2.5 9.7 42.4 85.1Net financial income 7.2 -1.7 -0.8 -5.0 20.4 -0.3 30.1Pre-tax profit 24.0 16.0 9.6 -7.5 30.0 42.1 115.2Taxes 4.5 4.4 0.4 0.2 3.8 9.5 27.7Net profit/ loss for the period 19.5 11.5 9.2 -7.7 26.2 32.6 87.5

Year

4747

REALISED EFFECTS PROFITABILITY PROJECT

SUB PROJECT SpareBank 1 Skadeforsikring REPORT DATE 01.02.2010

84

79

47

37

16

2

22

7

Q3-09Q2-09 Q4-10Q1-10Q4-09 Q3-10Q2-10

4949

15

10

4

2

15

9

Q1-10Q4-09Q3-09 Q4-10Q3-10Q2-10Q2-09

Realisation of profitability effects per quarterRealisation of staffing consequences per quarter

(FTEs)

Prognose

Plan

Faktisk realisertRealised year-to date

Prognose

Plan


4848


SUB PROJECT SpareBank 1 Livsforsikring REPORT DATE 01.02.2010

191

162

150

119

43

1813

81

62

18

Q1-10Q4-09Q3-09Q2-09 Q2-10 Q4-10Q3-10

101

9494

79

68

2420

68

50

25

Q4-10Q3-10Q2-10Q1-10Q4-09Q3-09Q2-09


(FTEs)

Prognose

Plan


Prognose

Plan


4949


SUB PROJECT Bank 1 Oslo REPORT DATE 01.02.2010

89

7171

59

46

29

14

44

25

14

Q1-10Q4-09Q3-09Q2-09 Q2-10 Q4-10Q3-10

21

1919

10

777

12

9

7

Q4-10Q3-10Q2-10Q1-10Q4-09Q3-09Q2-09


(FTEs)

Prognose

Plan


Prognose

Plan


5050

Strong progress in the profitability project, also without the demerged Bank 1 Oslo

361

262

79

16

138

21

2H 20101H 20102H 20091H 2009

157

116

76

24

92

29

2H 20101H 20102H 20091H 2009

REALISED EFFECTS AS AT 31 DECEMBER 2009 – EXCLUDING BANK 1 OSLO

Realisation of profitability effects Realisation of staffing consequences (FTEs)

Prognose

Plan


Prognose

Plan


5151

The 2009 accounts have been charged with restructuring costs of MNOK 70

MNOK

• So far 24 severance packages have been given in the profitability project Delta with a value totaling MNOK 9.5

• The 2009 accounts have been charged with severance packages totaling a value of MNOK 30

26.0

70.0

3.7 2.0

39.0

01020304050607080

Ba

nk

1 O

slo

SB

1L

ivs

fors

.

SB

1S

ka

de

fors

.

Gro

up

Su

m

5252

Assumptions for calculating the pension liability in SpareBank 1 Gruppen

• SpareBank 1 Gruppen shows at all times the market value of the pension liability in the balance sheet

• SpareBank 1 Gruppen applies a new scale K2005

31.12.2009 31.12.2008 31.12.2007

Discount rate 4.40 % 3.80 % 4.80 %

Basic amount adjustment/inflation 4.25 % 3.75 % 4.25 %

Wage adjustment 4.50 % 4.00 % 4.25 %

Expected return on pension funds 5.80 % 5.80 % 5.80 %

AFP early retirement plan 40 % 40 % 40 %

Pension adjustments 2.50 % 1.50 % 2.30 %

Mortality K2005 K2005 K2005

Disability IR2003 IR2003 IR2003

Cancellations4 % below 50

years and 2 %above 50 years

4 % below 50years and 2 %

above 50 years

4 % below 50years and 2 %

above 50 years

5353

Key figures SpareBank 1 Gruppen with subsidiariesFigures in MNOK

Q42009

Q32009

Q22009

Q12009

Q42008

Q32008

Q22008

Q12008

Q42007

Group

Capital adequacy ratio 16.1 % 13.9 % 14.6 % 14.5 % 12.6 % 12.0 % 13.0 % 12.6 % 13.1 %

Core capital adequacy ratio 11.6 % 9.3 % 9.9 % 9.8 % 9.4 % 9.0 % 9.0 % 9.2 % 9.6 %

Net profit acc. 880.7 697.3 295.9 5.2 -857.7 221.5 211.1 63.7 1219.8

Return on equity p.a. 17.1 % 18.6 % 12.3 % 0.6 % -16.1 % 5.8 % 7.9 % 4.7 % 26.2 %

Life insurance

Gross due premium income 720.5 731.1 718.3 956.5 704.7 697.2 721.0 1,019.4 822.9

Retail 330.5 307.9 315.2 280.1 285.5 267.5 283.1 287.4 413.0

Corporate 390.0 423.2 403.1 676.4 419.2 429.7 437.9 732.0 410.0

Total assets 24,294 23,783 22,934 21,237 21,217 22,287 23,059 22,909 23,998


P&C insurance

Net earned premium 983.1 971.8 940.2 919.2 935.0 931.5 908.5 902.6 900.0

Retail 857.2 847.3 821.8 804.2 822.8 815.5 798.7 791.2 791.0

Corporate 100.2 99.3 93.7 91.0 89.9 90.5 85.0 87.6 88.0

Reinsurance 25.7 25.3 24.7 24.0 22.3 25.5 24.7 23.8 20.0

Net financial income 128.6 177.8 158.3 70.1 -74.7 10.5 92.0 9.1 97.5

Return on financial assets 6.60 % 5.26 % 3.07 % 0.70 % -0.97 % 0.12 % 1.27 % 0.11 % 1.41 %

Claims Ratio, net 74.8 % 67.5 % 73.5 % 79.5 % 69.7 % 74.1 % 70.3 % 74.2 % 74.0 %

Cost Ratio, net 24.8 % 21.9 % 22.1 % 21.1 % 23.3 % 20.9 % 23.5 % 19.7 % 21.8 %

Bank 1 Oslo

Net interest income 119.0 110.6 89.9 88.8 89.871 105.3 95.9 96.7 97

Net loan loss provisions 32.3 30.9 25.0 34.9 50.2 31.8 -13.2 -3.8 -3.0

Loans 20,926 21,247 21,392 21,030 20,688 20,261 19,574 18,844 18,089

Retail 14,407 14,396 14,630 14,655 14,340 13,983 13,574 12,745 12,415

Corporate 6,519 6,851 6,762 6,376 6,348 6,279 6,000 6,098 5,674

Deposits 14,596 15,490 15,786 15,914 15,925 14,122 14,681 13,578 13,378


Net interest income/average totalt assets 1.82 % 1.71 % 1.40 % 1.41 % 1.48 % 1.82 % 1.81 % 1.86 % 1.92 %

Return on equity acc. (parent bank) 14.7 % 16.0 % 13.2 % 4.7 % 1.7 % 6.7 % 10.1 % 9.5 % 9.3 %

Return on equity acc. (group) 15.7 % 17.0 % 23.2 % 4.4 % -1.2 % 5.3 % 8.7 % 8.1 % 8.1 %

ODIN

Assets under management 27,981 25,388 22,347 17,431 19,163 23,581 30,508 31,400 37,800

Equity fund market share 11.6 % 12.4 % 12.8 % 13.1 % 13.8 % 13.7 % 14.6 % 15.6 % 15.9 %

Investor Relations

Preliminary accounts for 2009 - Presentation of results from SpareBank 1 Gruppen AS by Kirsten Idebøen, CEO