q1 2009 financial results for sparebank 1 gruppen presented by acting ceo kirsten idebøen

Quarter 1 2009Presentation of results SpareBank 1 Gruppen

Kirsten Idebøen, acting CEO

28 April 2009

Highlights 1st quarter 2009

22

• 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

Satisfactory profit before tax, considering the current market conditions

• Pre-tax profit in Q1 was MNOK 99.9 (99.5)

• Profit after tax in Q1 was MNOK 5 (64). The high tax cost is owing to the calculated effect of the tax exemption method in SpareBank 1 Livsforsikring

• At the end of March, assets under management were NOK 58.3 billion, up NOK 1.8 billion from 31 December 2008

• Core and capital adequacy ratio of 9.8 % and 14.5 % respectively as at 31 March 2009, against 9.4 % and 12.6 % last year

Pre-tax profit group

236

100 100137

122

0

50

100

150

200

250

2005 2006 2007 2008 2009

MN

OK

Pre-tax profit - Q1

33

Product companies hit by financial crisis

Pre-tax profit/loss in subsidiaries

• Overall profit before tax for the subsidiaries in Q1 was MNOK 125 (131)

• Positive growth and improvement in net risk result. The life insurance company is financially sound

• Healthy financial return to date this year counterbalances a weaker insurance result in the P&C insurance company

• Reduced volumes under management in ODIN Forvaltning yield negative result

• Increased commission and financial income in Bank 1 Oslo. Profit in first quarter dominated by higher loan loss provisions and reduced net interest income

54

30

-52

32

2413

-8

48

-70

-50

-30

-10

10

30

50

70

SB1

Skad

efor

s.

OD

INMN

OK

Pre-tax profit Q1 2008Pre-tax profit Q1 2009

SB1

Livs

fors

.*

Ban

k 1

Osl

oko

nser

n

11*

66*

* 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.

44

SpareBank 1 Gruppen group

Profit/loss for Q1 2009Year

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 -5.6Net result before tax from subsidiaries 125.4 131.0 -636.6Total operating costs holding -13.2 -10.8 -47.8Net investment charges holding -17.4 -23.6 -67.8Gains from sale of companies holding 0.0 0.0 21.1Share of associated company - First Securities 5.1 4.2 17.7Net result before amortisation 99.9 100.8 -713.4Amortisation 0.0 -1.3 -18.2Pre-tax result 99.9 99.5 -731.6Taxes -94.8 -35.9 -126.2Net result for the period 5.2 63.7 -857.7

Majority interest 7.5 63.5 -858.1Minority interest -2.3 0.1 0.4

Q1

*

* Other companies comprise SpareBank 1 Gruppen Finans Holding AS (parent company), Actor Fordringsforvaltning AS, SpareBank 1 LTO AS and Verdigjenvinning AS

55

Bank 1 OsloIncreased commission and financial income

66

Bank 1 Oslo (group)

Increased commission and financial income

Pre-tax profit per quarter

77

27 32

13

-70

-50

-30

-10

10

30

50

2007 2008 2009

MN

OK

Pre-tax profit - Q1

• Pre-tax profit of MNOK 13 (32) for Q1

• The decline in profit is largely attributable to higher loan loss write-downs, combined with reduced net interest income

• Losses on loans MNOK 35 (-4) in Q1

• Gross non-performing and impaired loans amount to 2.1 % (0.9 %) of gross loans as at 31 March 2009

Bank 1 Oslo (parent bank)

Good lending growth, but reduced net interest income

88

Net interest income per quarter

83.090.4

97.0 96.7 95.9105.3

89.9 88.8

0.0

20.0

40.0

60.0

80.0

100.0

120.0

Q22007

Q32007

Q42007

Q12008

Q22008

Q32008

Q42008

Q12009

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

• Lending growth of 17.4 % last 12 months. RM rose by 23.5 % and CM by 4.6 %

• Net interest income of MNOK 89 (97) in Q1, down 8.2 %

• Net interest income for first quarter of 1.41 % (1.86 %)


Margin and volume growth

The reference interest rate used in the margin calculation is 3 months NIBOR + 0.10 bp (the bank’s intra-group interest rate)

MN

OK 1.15 %

1.05 %

0.81 %0.71 %0.72 %

0.90 %

0.62 %0.69 %

1.27 %

2.17 %

0.91 %0.98 %1.04 %1.20 %

1.33 %1.50 %

1.64 %

1.37 %1.49 %1.51 %

0.83 %

0.78 %

1.25 %

-0.19 %10,000

12,000

14,000

16,000

18,000

20,000

22,000

Q22006

Q32006

Q42006

Q12007

Q22007

Q32007

Q42007

Q12008

Q22008

Q32008

Q42008

Q12009

-0.20 %

0.30 %

0.80 %

1.30 %

1.80 %

2.30 %

Lending Spread for ordinarylending to customers

Spread for depositsfrom customers

99


Increase in non-performing loans

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

203.6 220.0 214.0165.8 162.7

113.1

246.1

400.6459.2

240.9

% 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

Q42006

Q12007

Q22007

Q32007

Q42007

Q12008

Q22008

Q32008

Q42008

Q12009

MNOK

-

0.5

1.0

1.5

2.0

2.5

Total non-performing loansas % of gross loans

Per cent

1010


Increase in losses on loans

MNOK

-1.13.8

-0.15.0

-34.90.3-25.9 -9.3

-40.0

-35.0

-30.0

-25.0

-20.0

-15.0

-10.0

-5.0

0.0

5.0

10.0

Q1 2008 Q1 2009

Individualwrite-downs

Collectiveimpairment

Net write-offsand incomings on previous write-offs

Net loanlosses

1111

Bank 1 Oslo (group)

Increased commission and financial income

• Net commission income and other income of MNOK 88 (52) for Q1

• Commission income from real estate agency up 44.4 % to MNOK 29 (20)

• Positive result from EM1 Oslo & Akershus of MNOK 0.1 (-5.9). The improvement is owing to:– comprehensive restructuring in 2008– link between the public’s expectations of

interest rates and home purchases– recovery in the market– EM1 has increased its market share from

7.1 % as at 31 December 2008 to 8.2 %

• Income from financial investments was MNOK 21 (-5) and is owing to:– value change of bonds and primary

capital certificates– currency and derivatives income– dividend received from shares and

primary capital certificates

Other income per quarter

-40

-20

0

20

40

60

80

100

Q22007

Q32007

Q42007

Q12008

Q22008

Q32008

Q42008

Q12009

MN

OK

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

1212

Bank 1 Oslo (group)Profit/loss for Q1 2009

Figures in MNOK 2009 2008

Net interest income 88.5 96.9Other operating income 86.4 52.1Operating costs 127.4 120.9Operating result before losses 47.5 28.1Net loan loss provisions 34.9 -3.8Share of associated company 0.6Pre-tax operating profit 13.1 31.9Taxes 2.2 8.9Net profit/loss for the period 10.9 23.0

Key figures Q1Figures in percentage 2009 2008Net interest margin 1.41 % 1.86 %Cost/income ratioexcl. equity investment portfolio (parent bank) 70.9 % 70.3 %Cost/income ratioincl. 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 %

Q1

1313

SpareBank 1 LivsforsikringPositive increase in profit before tax

1414

SpareBank 1 Livsforsikring

Positive increase in profit before tax

Pre-tax profit/loss per quarter

1515

• Pre-tax profit of MNOK 24 (-52) in Q1• Positive development in net risk result;

MNOK 87 (63) to date this year• The investment result reflects the

financial crisis and is MNOK -51 (-59)• Total assets as at 31 March 2009 are

NOK 21.2 billion, up NOK 0.1 billion from 31.12.08

• The return on the company’s assets so far this year totals MNOK 34 (-16) and is due to the company being out of shares in the company portfolio, as well as one-off factors

• Additional provisions may not be utilised during the year in the company, but are recognised as income in the consolidated accounts in SpareBank 1 Gruppen by MNOK 42 in Q1

93

-52

24

-100

-50

0

50

100

150

2007 2008 2009

MN

OK

Pre-tax profit/loss - Q1


The life insurance company financially sound

Growth in buffer capital

1616

8.2 %

6.0 %5.8 %

9.3 %

6.3 %5.8 %

-4 %

-2 %

0 %

2 %

4 %

6 %

8 %

10 %

Q42007

Q12008

Q22008

Q32008

Q42008

Q12009

Perc

ent

Securities adjustment reserveAdditional provisionsInterim profitCore capital in excess of minimum

• Core capital and capital adequacy ratio of 11.7 % (9.7 %) and 15.1 % (12.5 %) respectively as at first quarter

• The buffer capital with additional provisions within a one year interest rate guarantee equals 6.0 % (6.3 %) at the end of March

• Estimated solvency margin at the end of Q1 was 191 % (238 %)


Continued high shareholding in the group portfolio

As at 31 March 2009

Investment choice portfolio

53 %13 %

34 %

Stocks Other Bonds

Group portfolio

26 %

35 %11 % 5 %

23 %

Stocks OtherReal estate Bonds held to maturityBonds

Company portfolio

26 %

0 % 6 %32 %

36 %

Stocks OtherReal estate Bonds held to maturityBonds

NOK 14.8 billion NOK 3.9 billionNOK 1.4 billion

1717


Value-adjusted return on customer portfolios with guarantee (excl.

value change bonds held to maturity)

-4,9

-2,1

0,5

-0,2

0,3

-6

-5

-4

-3

-2

-1

0

1

SpareBank 1 Storebrand Vital Nordea

Perc

ent

Q42008

Q12009

Q42008

Q12009

Q42008

Q12009

Q42008

Q12009

N/A N/A N/A

1818 Source: company presentations

SpareBank 1 Livsforsikring Profit/loss for Q1 2009

Figures in MNOK 2009 2008 Insurance risk income 310.4 289.6 Insurance risk claims -211.8 -207.2Risk result 98.6 82.4 Tecnical allocations -11.7 -19.6Risk result after tecnical allocations 86.9 62.8 Fees 149.6 137.7 Expenses, exclusive comissions -139.8 -123.7 Comissions -47.0 -48.0Administration result -37.3 -34.0 Net investment income 59.3 49.3 Guaranteed interest to policyholders -110.1 -107.9Investment result -50.8 -58.6Result 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 -16.2Net profit to owner before tax 24.4 -51.8 Taxes 0.0 0.0Net profit/loss for the period 24.4 -46.1

Key figures Q12009 2008

Capital adequacy ratio 15.1 % 12.5 %Buffer capital in % of insurance provisions 6.0 % 6.3 %

Q1

*

* 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

1919

SpareBank 1 SkadeforsikringGood financial return andportfolio growth to date this year

2020

SpareBank 1 SkadeforsikringGood financial return and portfolio growth to date this year

Pre-tax profit per quarter

• Pre-tax profit for Q1 was MNOK 48 (54)

• Net financial income as at March was MNOK 66 (8). The financial return to date this year equals 0.7 % (0.1 %)

• The insurance result for Q1 totals MNOK -13 (48)

• The claims ratio for own account totals 79.5 % (74.2 %). The increase is owing to major claims within CM

• Combined ratio for own account is 100.6 % (93.9 %) as at 31 March 2009

• Positive portfolio growth within both CM and RM in Q1. Total portfolio increase of MNOK 68 (15)

66

5448

0

10

20

30

40

50

60

70

2007 2008 2009M

NO

KPre-tax profit - Q1

2121

SpareBank 1 SkadeforsikringTwo major claims in Q1 push up combined ratio for own account

Combined ratio for own account shown by quarter

69.0 % 72.1 %73.9 %69.3 %66.7 %

20.6 %20.7 %

22.1 % 20.5 %21.6 %

0 %

10 %

20 %

30 %

40 %

50 %

60 %

70 %

80 %

90 %

100 %

2004 2005 2006 2007 2008Claims ratio Cost ratio

Combined ratio for own account per annum

87.2 %89.9 %

94.6 %91.1 % 93.7 %

21.1 %

76.7 % 72.5 % 72.4 % 74.0 % 74.2 % 70.3 % 74.1 % 69.7 %79.5 %

19.5 % 21.8 %21.2 %20.2 % 19.7 % 23.5 % 20.9 % 23.3 %

97.9 %92.7 % 91.9 %

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

-10 %

10 %

30 %

50 %

70 %

90 %

110 %

Q12007

Q22007

Q32007

Q42007

Q12008

Q22008

Q32008

Q42008

Q12009

Claims ratio Cost ratio

2222

SpareBank 1 Skadeforsikring

Allocation of financial assets

Bank deposits3.6 %

Bonds60.9 %

Stocks4.5 %

Bonds held to maturity11.8 %

Real estate15.0 %

Hedge funds4.2 %

Total: NOK 7.8 billion

As at 31 March 2009

2323

SpareBank 1 SkadeforsikringProfit/loss for first quarter 2009

Figures in MNOK 2009 2008Gross written premium 1,237.9 1,191.2Net earned premium 919.2 902.6Net incurred claims -730.5 -669.7Net insurance operating costs -194.2 -177.7Changes in other technical reserves -7.9 -7.0Operating result before finance -13.3 48.3Net financial income 65.8 8.4Other costs -0.3 0.8Result before changes in security reserve 52.2 57.5Changes in security reserve -4.1 -3.4Pre-tax profit 48.1 54.1Taxes -13.5 -15.1Net profit/loss for the period 34.6 39.0

Key figuresFigures in percentage 2009 2008Claims 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 %

Q1

Q1

2424

ODIN ForvaltningReduced assets under management

2525

ODIN Forvaltning

Reduced assets under managementPre-tax profit as at Q1

-7

30

67

-100

1020304050607080

2007 2008 2009

MN

OK

• Pre-tax loss of MNOK -7 (30) in Q1• The decline in profits is owing to a

lower level of assets under management than in Q1 2008

• Assets under management fell NOK 1.7 billion in Q1 to NOK 17.5 billion.

• Equity fund market share equalled 13.1 %, down from 13.8 % at the beginning of the year

Growth in profit for the year before tax

60.6

146.4

232.1

299.5

115.2

3.44.824.030.320.415.6

83.2

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

MN

OK

2626

ODIN ForvaltningProfit/loss for Q1 2009

Figures in MNOK 2009 2008Management fees 46.3 82.5Subscription and redemption fees 6.2 14.7Total operating income 52.5 97.2Salaries 19.2 27.0Depreciations 4.1 3.4Other operating costs 31.7 41.0Total operating costs 55.0 71.4Operating profit -2.5 25.8Net financial income -5.0 4.5Pre-tax profit -7.5 30.3Taxes -1.9 8.5Net profit -5.6 21.8

Q1

2727

Argo Securities

2828

New securities business

Argo Securities

New securities business

2929

Q1Figures in MNOK 2009Commission income on stocks & derivatives 4.5Debt Capital Markets 0.6Net trading result 0.3Fee income Corporate finance 0.2Total operating income 5.7Salaries, bonus etc. -14.0Depreciations -1.1Losses on accounts receivable 0.0Other operating costs -4.8Operating profit -14.2Net financial income 1.3Pre-tax profit -12.9Taxes 3.6Profit after tax -9.3

• The company was established in October 2008

• SpareBank 1 Gruppen AS owns 75 % of Argo Securities AS

• The group’s share of profit after tax is a loss of MNOK 7.0, owing to start-up costs

SpareBank 1 Gruppen Finans HoldingNew value chain within debt collection

3030

SpareBank 1 Gruppen Finans Holding

New value chain within debt collection

3131

• Consists of factoring, debt collection and acquisition of non-performance portfolio

• Target group: Banks, insurance companies, card companies and other finance companies– Demand for this type of product

supplied by established finance institution

• Strengthens Sparebank 1 Gruppen as a supplier of financial products and strengthens the Group’s financial foundations– Supplements the Group’s traditional

products– The products have historically been

profitable, and shown increasing earnings

– Partly counter-cyclical

Actor Fordrings-forvaltning

(100%)

SpareBank 1 LTO

(100%)

SpareBank 1 Factoring(100%)

Verdigjenvinning(100%)

SpareBank 1 Gruppen Finans

Holding AS(100%)

Financial information:• The parent company’s equity

approx MNOK 225• Approx. 90 employees (group)• Expected overall turnover 2009: MNOK

137• Expected overall EBIT 2009: MNOK 32

Other factors

3232

New profitability programme at SpareBank 1 Gruppen which commenced in first quarter is expected to yield significant bottom line effect

3333

• 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

3434

Bank. Insurance. And you.

Appendix

3535

SpareBank 1 Gruppen group Quarterly results

Q1 Q4 Q3 Q2 Q1 Q4Figures 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 -41.0Net result before tax from subsidiaries 125.4 -1,008.6 33.8 207.2 131.0 250.1Total operating costs holding -13.2 -16.3 -8.8 -11.9 -10.8 -17.7Net investment charges holding -17.4 -15.4 -15.9 -12.9 -23.6 -15.2Gains from sale of companies holding 0.0 -0.6 21.7 0.0 0.0 2.8Share of associated company - First Securities 5.1 -3.7 0.9 16.4 4.2 21.8Net result before amortisation 99.9 -1,044.6 31.6 198.8 100.8 241.7Amortisation 0.0 -1.3 -14.2 -1.3 -1.3 -1.3Pre-tax result 99.9 -1,046.0 17.4 197.5 99.5 240.4Taxes -94.8 -33.3 -7.0 -50.0 -35.9 89.2Net 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 63.5 329.3Minority 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

3636

SpareBank 1 Gruppen’s ownership structure

SpareBank 1 Gruppen AS

- Broad alliance- Brands- Technology- Expertise- Shared processes and utilisation of best practise- Purchasing

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

SpareBank 1SR-Bank (19.89 %)

SpareBank 1SMN

(19.89 %)

SpareBank 1Nord-Norge (19.89 %)

SparebankenHedmark (11.14%)

SamarbeidendeSparebanker (19.89 %)

LO(9.29%)

The Alliance

SpareBank 1 Oslo

(100%)

SpareBank 1Skadeforsikring

(100%)

SpareBank 1Livsforsikring

(100%)

ODIN Forvaltning

(100%)

Actor Fordrings-forvaltning

(100%)

Argo Securities

(75%)

SpareBank 1 LTO

(100%)

SpareBank 1 Factoring(100%)

First Securities(24.5%)

SpareBank 1 Boligkreditt

EiendomsMegler 1

BNbank

(Bank-owned operation)

*SpareBank 1 Gruppen Finans

Holding AS(100%)

SpareBank 1Medlemskort

(100%)

Verdigjenvinning(100%)

3737

Bank 1 Oslo (parent bank)Increasing non-performing loans in CM

160.8 169.2 157.1102.3 104.7

63.8

178.7

283.1349.442.8

63.6 58.049.3

67.4

117.5

109.8

193.3

47.657.050.8

0.050.0

100.0150.0200.0250.0300.0350.0400.0450.0500.0

Q42006

Q12007

Q22007

Q32007

Q42007

Q12008

Q22008

Q32008

Q42008

Q12009

MN

OK

Corporate market Retail market

3838

SpareBank 1 LivsforsikringBalance sheet for Q1 2009

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 4,683Total 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 86Total liabilities and equity 21,237 22,909

Q1

3939


Return ordinary customer portfolio with guarantee as at 31 March2009

1,6

1,4

1

2,1

1,4

-8,7

-0,1

-10 -8 -6 -4 -2 0 2 4

Real estate

Held to maturity

Foreign bonds

Norwegian bonds

Money market

Foreign shares

Norwegian shares

Percent

4040


Booked return for customer portfolios with guarantee

-2,8

0,30,5

2,0 1,9

-4

-3

-2

-1

0

1

2

3


Perc

ent

Q42008

Q12009

Q42008

Q12009

Q42008

Q12009

Q42008

Q12009


N/A N/A N/A

4141 Source: company presentations

SpareBank 1 LivsforsikringGrowth in premium income

Q1Figures 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 190.9 159.8Total gross due premium income 956.5 1,019.4 Premium reserves transferred from other companies 65.7 228.5 Reinsurance ceded -39.7 -26.4Premium income for own account 982.4 1,221.5

4242

SpareBank 1 LivsforsikringProfit/loss per portfolio

Figures in MNOKGroup

portfolio

Previouslyestablished

individual productsInvestment choice

portfolioCompanyportfolio Total

Risk result 89.8 -2.6 -0.3 0.0 86.9Administration result 10.7 -11.5 -36.5 0.0 -37.3Net investment result -28.5 -22.2 0.0 0.0 -50.8Transferred to policyholders -8.4 0.0 -0.5 0.0 -8.9Return on company's assets 0.0 0.0 0.0 34.4 34.4Sum 63.5 -36.3 -37.3 34.4 24.4

4343

Tax matters I - SpareBank 1 Livsforsikring – Realised gains and losses

4444

• 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)

Tax matters II - SpareBank 1 Livsforsikring– Unrealised gains and losses

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• 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 laterrealisation at current value will not entail any change in the taxbasis – 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

Tax cost in SpareBank 1 Gruppen’s consolidated accounts as at 31 March 2009

Skatte-(Beløp i mill.kr.) Skatte- kostnad

g runnlag -28 %

Resultat før skatt i Liv 24,4 6,8Kollekt iv- og selskapspo rteføljen :Realiserte tap 78,9 22,1Urealisert verdiendring (tap) 99,9 28,0Investeringsvalgporte føljen:Realiserte tap 66,9 18,7

270,1 75,6I konsernregnskapet:Bruk av tilleggsavsetninger 42,3 11,8

312,4 87,4

MNOK

Pre-tax profit in SpareBank 1 LivsforsikringGroup and company portfolio:Realised losses Unrealised value changes (loss)Investment choice company portfolio:Realised losses

In consolidated accounts:Use of additional provisions

Tax base Tax costs

4646

SpareBank 1 SkadeforsikringPortfolio growth of 4.0 % last 12 months

Portfolio RM (excl. group home) Portfolio CM

2,655

2,725

30.515.6

-10,6

34,5

2,5802,6002,6202,6402,6602,6802,7002,7202,740

Q12008

ChangeQ2

2008

ChangeQ3

2008

ChangeQ4

2008

ChangeQ1

2009

Q12009

MN

OK

Total RM portfolio Change in RM portfolio

654

593

19.2

11.616.7

12.6

560570580590600610620630640650660

Q12008

ChangeQ2

2008

ChangeQ3

2008

ChangeQ4

2008

ChangeQ1

2009

Q12009

MN

OK

Total CM portfolio Change in CM portfolio

10.1 % growth last 12 months2.6 % growth last 12 months

* Overall portfolio growth incl. group home last 12 months equals 2.9 %

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Key figures SpareBank 1 Gruppen with subsidiaries

1) All figures are stated in MNOK

2) All figures are quarterly, except for where otherwise stated

3) Following entry into force of new activities act on 1 January 2008, these benchmark figures are not relevant

Figures in MNOK 1) & 2)Q1

2009Q4

2008Q3

2008Q2

2008Q1

2008Q4

2007Q3

2007Q2

2007Q1

2007GroupCapital adequacy ratio 14.5 % 12.6 % 12.0 % 13.0 % 12.6 % 13.1 % 11.3 % 11.6 % 12.5 %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

Life insuranceGross 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 Corporate 676.4 419.2 429.7 437.9 732.0 410.0 382.1 369.6 675.8Investment result 3) - - - - 0.0 199.0 224.5 407.6 138.6Value 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 22,711Capital adequacy ratio 15.1 % 14.3 % 14.8 % 14.8 % 12.5 % 12.5 % 10.8 % 11.3 % 12.0 %

P&C insuranceNet earned premium 919.2 935.0 931.5 908.5 902.6 900.0 890.7 872.7 853.4 Retail 804.2 822.8 815.5 798.7 791.2 791 787.44 771.6 755.3 Corporate 91.0 89.9 90.5 85 87.6 88.0 85.7 -1444.4 1608.82 Reinsurance 24.0 22.3 25.5 24.7 23.8 20.0 17.6 1545.5 -1510.72Net financial income 65.8 -72.0 8.9 91.8 8.4 102.0 85.2 119.8 70.7Return 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 OsloNet interest income 88.8 89.9 105.3 95.9 96.7 97.0 90.4 83.0 77.5Net loan loss provisions 34.9 50.186 31.8 -13.2 -3.8 -3 -3 -2.6 -1.4Loans 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 4,534Deposits 15,914 15,925 14,122 14,681 13,578 13,378 13,550 13,325 13,055Capital 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 %

ODINAssets under management 17,431 19,163 23,581 30,508 31,400 37,800 45,600 51,100 46,900Equity fund market share 13.1 % 13.8 % 13.7 % 14.6 % 15.6 % 15.9 % 18.9 % 20.6 % 21.0 %

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Premises for calculating the pension liability in SpareBank 1 Gruppen

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31.03.2009 31.03.2008 31.12.2008Discount rate 3.80 % 4.80 % 3.80 %Basic amount adjustment/inflation 3.75 % 4.25 % 3.75 %Wage adjustment 4.00 % 4.25 % 4.00 %Expected return on pension funds 5.80 % 5.80 % 5.80 %AFP early retirement plan 40 % 40 % 40 %Pension adjustments 1.50 % 2.30 % 1.50 %

Mortality K2005 K2005 K2005Disability 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

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

• SpareBank 1 Gruppen applies a new scale K2005

q1 2009 financial results for sparebank 1 gruppen presented by acting ceo kirsten idebøen

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