q2 2009 financial results for sparebank 1 gruppen presented by ceo kirsten idebøen
DESCRIPTION
Download presentation from press conference August 12th 2009. Last ned kvartalspresentasjonen for SpareBank 1 Gruppen AS - Q1/2009.TRANSCRIPT
1st half-year (H1) 2009Presentation of results SpareBank 1 Gruppen
Kirsten Idebøen, CEO
12 August 2009
22
Highlights H1 2009
• The rise of the stock market in the 2nd quarter contributed to historically strong quarterly profit
• SpareBank 1 Gruppen has commenced a broad-based restructuring programme that will create lasting and enhanced profitability and boost its competitiveness
• The 24.5% stake in First Securities has been sold
• Focus on new business within the securities area through Argo Securities and debt collection through SpareBank 1 Gruppen Finans Holding
• On 10 July 2009 SpareBank 1 Livsforsikring signed an agreement to sell its group defined-benefit pension portfolio to Gabler Pensjonsforsikring. The sale is subject to a successful share issue in Gabler, together with the approval of the authorities
33
Historically strong quarterly profit
• Pre-tax profit for H1 was MNOK 541 (297).The profit for Q2 was MNOK 441 (197)
• Profit after tax for H1 was MNOK 296 (211). The high tax cost is owing to the calculated effect of the tax exemption method in SpareBank 1 Livsforsikring
• Return on equity year-to-date is 12.3% (7.9%) p.a.
• At the end of June, total assets were NOK 59.7 billion, up NOK 3.3 billion from 31 December 2008.
• Core and capital adequacy ratio of 9.9% and 14.6% respectively as at 30 June 2009, against 9.4% and 12.6% at year-end
Pre-tax profit group
100
350
197
441
100
236
050
100150200250300350400450500
2007 2008 2009
MN
OK
Pre-tax profit - Q1 Pre-tax profit - Q2
44
Very good quarterly profit from the subsidiaries
• Overall profit before tax for the subsidiaries in H1 was MNOK 548 (338). The profit for Q2 was MNOK 423 (207)
• Strong investment and net risk result in the life insurance company. The company is financially sound
• Very good financial return year-to-date counterbalances a lower insurance result in the P&C insurance company
• Decline in profit as a result of lower volumes under management in ODIN Forvaltning
• Increased commission and financial income in Bank 1 Oslo
Pre-tax profit in subsidiaries
179
60
-8
66
230
81
2
233
-50
0
50
100
150
200
250
Ban
k 1
Osl
oko
nser
n
SB1
Livs
fors
.
SB1
Skad
efor
s.
OD
IN
MN
OK
Pre-tax profit - half year 2008Pre-tax profit - half year 2009
55
SpareBank 1 Gruppen group
Profit/loss for H1 2009Q2 Q1 Q2
Figures in MNOK 2009 2009 2008 2009 2008
Part of result from subsidiaries before tax - SpareBank 1 Livsforsikring 205.6 24.4 43.7 230.0 -8.1 - Additional provisions recognised as income in consolidated accounts -42.0 42.0 -41.7 0.0 20.9 - SpareBank 1 Skadeforsikring 184.9 48.1 125.0 233.0 179.1 - Bank 1 Oslo group 67.6 13.1 34.4 80.7 66.3 - ODIN Forvaltning 9.6 -7.5 29.2 2.2 59.5 - Argo Securities -11.9 -12.9 0.0 -24.8 0.0 - SpareBank 1 Medlemskort 4.1 5.6 4.2 9.7 8.2 - SpareBank 1 Gruppen Finans Holding 11.0 5.3 5.4 16.3 7.1 - Correction subsidiaries - pro forma IFRS -6.0 7.4 7.0 1.4 5.1Net result before tax from subsidiaries 423.0 125.4 207.2 548.3 338.2Total operating costs holding -12.1 -13.3 -11.9 -25.4 -22.7Net investment charges holding -7.0 -17.3 -12.9 -24.3 -36.5Gains from sale of companies 29.2 0.0 0.0 29.2 0.0Share of associated company - First Securities 8.4 5.1 16.4 13.5 20.6Net result before amortisation 441.4 99.9 198.8 541.3 299.6Amortisation 0.0 0.0 -1.3 0.0 -2.6Pre-tax result 441.4 99.9 197.5 541.3 297.0Taxes -150.7 -94.8 -50.0 -245.5 -85.9Net result for the period 290.7 5.2 147.4 295.9 211.1
Majority interest 292.9 7.5 147.0 300.3 210.6Minority interest -2.1 -2.3 0.4 -4.5 0.5
Half year
66
Bank 1 OsloHigh financial income and lower operating costs
77
Bank 1 Oslo (group)
High financial income and lower operating costs
• Pre-tax profit of MNOK 81 (66) for H1.The profit for Q2 was MNOK 68 (34)
• The main reasons for the improved performance are higher income from financial investments and lower operating costs
• Loan losses MNOK 60 (-17) in H1, of which MNOK 25 (-13) in Q2
• Gross non-performing and impaired loans amounted to 1.7% (0.6%) of gross loans as at 30 June 2009
• Positive result before tax from EM1 Oslo & Akershus of MNOK 3 (-13)
Pre-tax profit per quarter
2732
13
33 34
68
01020304050607080
2007 2008 2009M
NO
K
Pre-tax profit - Q1 Pre-tax profit - Q2
88
Bank 1 Oslo (parent bank)
Good lending growth, but reduced net interest income
• Lending growth of 17.9% last 12 months. Growth year-to-date was 7.1%, of which RM increased by 7.2% and CM by 6.7%
• Net interest income of MNOK 178 (193) in H1. In Q2 net interest income was MNOK 90 (96), down 7.0%
• Net interest income for H1 of 1.40% (1.81%)
Net interest income per quarter
90.4
97.0 96.7 95.9
105.3
89.9 88.8 89.9
80.0
85.0
90.0
95.0
100.0
105.0
110.0
Q32007
Q42007
Q12008
Q22008
Q32008
Q42008
Q12009
Q22009
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
Bank 1 Oslo (parent bank)
Margin and volume growth
The benchmark interest rate used in the margin calculation is 3 months NIBOR
MN
OK
1.42 %
2.21 %
0.68 %
2.32 %
1.15 %
0.91 %0.88 % 0.87 %
1.05 %0.77 %0.84 %
1.25 %
0.86 %
-0.35 %
0.88 %0.94 %
1.10 %1.23 %
1.35 %1.49 %
1.22 %1.34 %1.36 %
-0.13 %
10,000
12,000
14,000
16,000
18,000
20,000
22,000
Q32006
Q42006
Q12007
Q22007
Q32007
Q42007
Q12008
Q22008
Q32008
Q42008
Q12009
Q22009
-0.50 %
0.00 %
0.50 %
1.00 %
1.50 %
2.00 %
2.50 %
Lending Spread for ordinarylending to customers
Spread for depositsfrom customers
1010
220.0 214.0165.8 162.7
113.1
246.1
400.6459.2
358.0
203.6
% 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
Q12007
Q22007
Q32007
Q42007
Q12008
Q22008
Q32008
Q42008
Q12009
Q22009
MNOK
-
0.5
1.0
1.5
2.0
2.5
Total non-performing loansas % of gross loans
Bank 1 Oslo (parent bank)
Lower non-performing loans in Q2
Per cent
Non-performing loans = Total of overdue claims over 90 days and impaired non-overdue claims over 90 days
1111
4.7
17.0
2.210.2
-59.9-31.1-19.5 -9.3
-70.0
-60.0
-50.0
-40.0
-30.0
-20.0
-10.0
0.0
10.0
20.0
30.0
Half year 2008 Half year 2009
Bank 1 Oslo (parent bank)Lower losses in Q2, but increase compared with last year
MNOK
Individualwrite-downs
Collectiveimpairment
Net write-offsand incomings on
previous write-offs
Net loanlosses
1212
Bank 1 Oslo (group)
Increased commission and financial income
• Net commission income and other income of MNOK 134 (123) for H1– Commission income from real estate
agency up 14.8% to MNOK 55 (48)
• Income from financial investments was MNOK 77 (-10) in H1– The profit from the bank's bond
portfolio increased by MNOK 23 (-6)– Shares and primary capital certificates
by MNOK 41 (-9)
Other income per quarter
-40-20
020406080
100120140
Q32007
Q42007
Q12008
Q22008
Q32008
Q42008
Q12009
Q22009
MN
OK
Guarantee commissions/othersReal estate agency commissionRevenue from financial investmentsPayments systemCommission revenues from insurance and savings
1313
Bank 1 Oslo (group)Profit/loss for H1 2009
Q2 Q1 Q2Figures in MNOK 2009 2009 2008 2009 2008
Net interest income 89.7 88.5 96.5 178.2 193.4Other operating income 125.3 86.4 60.9 211.7 113.0Operating costs 123.0 127.4 136.2 250.4 257.1Operating result before losses 92.1 47.5 21.2 139.6 49.3Net loan loss provisions 25.0 34.9 -13.2 59.9 -17.0Share of associated company 0.5 0.6 0.0 1.0 0.0Pre-tax operating profit 67.6 13.1 34.4 80.7 66.3Taxes 8.9 2.2 9.4 11.1 18.4Net profit/loss for the period 58.7 10.9 24.9 69.6 47.9
Key figures Q2 Q1 Q2Figures in percentage 2009 2009 2008 2009 2008Net interest margin 1.41 % 1.41 % 1.75 % 1.40 % 1.81 %Cost/income ratioexcl. equity investment portfolio (parent bank) 74.5 % 70.9 % 73.0 % 72.6 % 71.7 %Cost/income ratioincl. equity investment portfolio 57.2 % 72.9 % 86.6 % 64.2 % 83.9 %Return on equity (parent bank) 21.6 % 4.7 % 10.6 % 13.2 % 10.1 %Return on equity 23.2 % 4.4 % 9.0 % 13.9 % 8.6 %Deposit coverage ratio 73.8 % 75.7 % 76.2 % 73.8 % 76.2 %Capital adequacy ratio (parent bank) 11.7 % 11.7 % 9.7 % 11.7 % 9.7 %Core capital adequacy ratio (parent bank) 8.4 % 8.3 % 9.1 % 8.4 % 9.1 %
Half year
Half year
1414
SpareBank 1 LivsforsikringStrong investment and risk result
1515
SpareBank 1 Livsforsikring
Strong investment and risk result
• Pre-tax profit of MNOK 230 (-8) in H1• Positive development in net risk result; MNOK
190 (92) year-to-date• The investment result was MNOK 301 (-1) in
H1. In Q2 it amounted to MNOK 351 (58)• Total assets as at 30 June 2009 were NOK
22.9 billion, up 8.1% from 31 December 2008• SpareBank 1 Livsforsikring signed an
agreement to sell its approximately NOK 4 billion group defined-benefit pension portfolio to Gabler Pensjonsforsikring– The company is expected to post a net gain
of approx. MNOK 50 in Q4– As part of the agreement, SpareBank 1
Livsforsikring will take a 15% stake in Gabler Pensjonsforsikring
– The sale is subject to a successful shareissue in Gabler, together with the approval of the authorities
Pre-tax profit per quarter
129
44
206
93
-52
24
-100
-50
0
50
100
150
200
250
2007 2008 2009
MN
OK
Pre-tax profit - Q1 Pre-tax profit - Q2
1616
SpareBank 1 Livsforsikring
Stronger buffer capital in the life insurance company
• Core and capital adequacy ratio of 15.6% (12.1%) and 18.7% (14.8%) respectively as at H1
• The buffer capital with additional provisions within a one-year interest rate guarantee equals 11.7% (8.2%) at the end of June
• Estimated solvency margin at the end of H1 was 241% (266%)
• The securities adjustment reserve was MNOK 54 as at 30 June 2009
Growth in buffer capital
11.7 %
5.8 %
5.8 %
8.2 %
6.3 % 6.0 %
-4 %
-2 %
0 %
2 %
4 %
6 %
8 %
10 %
12 %
14 %
Q12008
Q22008
Q32008
Q42008
Q12009
Q22009
Perc
ent
Securities adjustment reserveAdditional provisionsInterim profitCore capital in excess of minimum
1717
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
Modest rise in stocks in the group portfolio
NOK 15.0 (14.7) billion NOK 1.9 (1.3) billion NOK 4.7 (4.0) billion
As at 30 June 2009 *)
34.9 (31.4)%
24.4 (30.3)%
13.1 (12.4)%
22.4 (22.9)%
5.2 (3.0)%
4.0 (1.0)%0.1 (7.3)%
56.2 (26.9)%17.4 (32.6)%
22.2 (32.2)%32.1 (28.9)% 58.1 (54.4)%
9.8 (16.7)%
* Figures in parentheses are as at 31 December 2008
1818
3.2
2.7
3.7
3.5
2.7
10.4
28.4
0 5 10 15 20 25 30
Real estate
Hold to maturity
Foreign bonds
Norwegian bonds
Money market
Foreign shares
Norwegian shares
Percent
SpareBank 1 Livsforsikring
Return ordinary customer portfolio with guarantee as at 30 June 2009
1919
SpareBank 1 LivsforsikringValue-adjusted return on customer portfolios with guarantee year-to-date (excl. value change bonds held to maturity)
Source: company presentations
0.90.5
0.2
0.7
2.5
1.91.5
4.1
0
1
2
3
4
5
SpareBank 1 Storebrand Vital Nordea
Perc
ent
Q12009
Q22009
Q12009
Q22009
Q12009
Q22009
Q12009
Q22009
2020
Q2 Q1 Q2Figures in MNOK 2009 2009 2008 2009 2008 Insurance risk income 304.7 310.4 288.1 615.1 577.8 Insurance risk claims -190.7 -211.8 -243.7 -402.5 -450.9Risk result 114.0 98.6 44.4 212.6 126.8 Tecnical allocations -10.9 -11.7 -15.3 -22.6 -34.9Risk result after tecnical allocations 103.2 86.9 29.1 190.1 91.9 Fees 132.5 149.6 150.2 282.1 287.9 Expenses, exclusive comissions -132.2 -139.8 -140.5 -272.0 -264.2 Comissions -47.6 -47.0 -58.8 -94.6 -106.8Administration result -47.2 -37.3 -49.1 -84.5 -83.1 Net investment income 464.4 59.3 167.4 523.7 216.7 Guaranteed interest to policyholders -112.9 -110.1 -109.7 -223.0 -217.6Investment result 351.5 -50.8 57.7 300.7 -0.9Result before allocations 407.4 -1.1 37.7 406.3 7.9 Undistributed profits to customers -213.5 -8.9 -2.2 -222.4 -8.0 Return on company's assets 11.7 34.4 8.2 46.2 -8.0Net profit to owner before tax 205.6 24.4 43.7 230.0 -8.1 Taxes 0.0 0.0 0.0 0.0 0.0Net profit/loss for the period 205.6 24.4 43.7 230.0 -8.1
Key figures Q2 Q1 Q2 Half year2009 2009 2008 2009 2008
Capital adequacy ratio 18.7 % 14.8 %Buffer capital in % of insurance provisions 11.7 % 8.2 %
Half year
SpareBank 1 Livsforsikring Profit/loss for H1 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 172 year-to-date is included in SpareBank 1 Gruppen’s consolidated tax
2121
SpareBank 1 SkadeforsikringIncrease in financial income
2222
SpareBank 1 SkadeforsikringIncrease in financial income
• Pre-tax profit for H1 was MNOK 233 (179)
• Net financial income as at June was MNOK 228 (100). The financial return year-to-date equals 3.1% (1.4%)
• The insurance result for H1 totals MNOK 15 (85)
• The claims ratio for own account totals 76.5% (72.2%). The increase is due to major claims in CM in Q1– The claims ratio for own account was
73.5% (70.3%) in Q2• Combined ratio for own account is
98.1% (93.8%) as at 30 June 2009 • Positive portfolio growth within both
CM and RM in H1. Total portfolio increase of MNOK 115 (33), which amounts to 3.0% (0.9%)
Pre-tax profit per quarter
139125
185
6654 48
020406080
100120140160180200
2007 2008 2009M
NO
K
Pre-tax profit - Q1 Pre-tax profit - Q2
2323
66.7 %76.5 %72.1 %73.9 %69.3 %
20.7 % 21.9 %20.5 % 20.6 %
21.6 %
0 %
20 %
40 %
60 %
80 %
100 %
2005 2006 2007 2008 Half year2009
Claims ratio Cost ratio
SpareBank 1 SkadeforsikringTwo major claims in Q1 push up combined ratio for own account
Combined ratio for own account shown by quarter
Combined ratio for own account per annum
87.2%89.9% 94.6%
98.1%94.0%
22.1 %
72.5 % 72.4 % 74.0 % 74.2 % 70.3 % 74.1 %69.7 %
79.5 %73.5 %
21.8 % 19.7 %20.2 % 19.5 % 23.5 % 20.9 %23.3 %
21.1 %
95.6 %100.6 %
93.1 %95.1 %93.8 %93.9 %95.9 %91.9 %92.7 %
0 %
20 %
40 %
60 %
80 %
100 %
Q22007
Q32007
Q42007
Q12008
Q22008
Q32008
Q42008
Q12009
Q22009
Claims ratio Cost ratio
2424
SpareBank 1 SkadeforsikringProfit/loss for H1 2009
Q2 Q1 Q2Figures in MNOK 2009 2009 2008 2009 2008Gross written premium 1,033.7 1,237.9 1,034.8 2,271.7 2,226.0Net earned premium 940.2 919.2 908.5 1,859.4 1,811.1Net incurred claims -691.2 -730.5 -638.8 -1,421.7 -1,308.5Net insurance operating costs -207.6 -194.2 -213.4 -401.7 -391.1Changes in other technical reserves -13.4 -7.9 -19.5 -21.3 -26.4Operating result before finance 28.0 -13.3 36.8 14.7 85.1Net financial income 162.6 65.8 91.8 228.4 100.2Other costs -1.0 -0.3 0.2 -1.3 1.0Result before changes in security reserve 189.6 52.2 128.8 241.8 186.3Changes in security reserve -4.7 -4.1 -3.9 -8.8 -7.2Pre-tax profit 184.9 48.1 125.0 233.0 179.1Taxes -51.8 -13.5 -35.0 -65.2 -50.1Net profit/loss for the period 133.2 34.6 90.0 167.8 128.9
Key figures Q2 Q1 Q2Figures in percentage 2009 2009 2008 2009 2008Claims ratio, net 73.5 % 79.5 % 70.3 % 76.5 % 72.2 %Cost ratio, net 22.1 % 21.1 % 23.5 % 21.6 % 21.6 %Combined ratio, net 95.6 % 100.6 % 93.8 % 98.1 % 93.8 %Capital adequacy ratio 28.0 % 27.3 %
Half year
Half year
2525
ODIN ForvaltningIncreasing assets under management
2626
ODIN Forvaltning
Increasing assets under management
• Pre-tax profit of MNOK 2 (59) in H1• The decline in profits is owing to a
lower level of assets under management than in H1 2008
• Assets under management rose NOK 3.2 billion in H1 to NOK 22.3 billion.
• Equity fund market share equalled 12.8%, down from 13.8% at the beginning of the year
• 9 of 11 equity funds with better return than benchmark index as at 30 June 2009
Pre-tax profit per quarter
74
29
-7.5
30
67
9.6
-10
0
1020
30
40
5060
70
80
2007 2008 2009M
NO
KPre-tax profit - Q1 Pre-tax profit - Q2
2727
ODIN ForvaltningProfit/loss for H1 2009
Q2 Q1 Q2Figures in MNOK 2009 2009 2008 2009 2008Management fees 57.0 46.3 84.6 103.3 167.1Subscription and redemption fees 6.7 6.2 10.4 13.0 25.2Total operating income 63.8 52.5 95.0 116.3 192.2Salaries 18.5 19.2 26.3 37.7 53.3Depreciations 3.9 4.1 3.5 8.0 7.0Other operating costs 30.9 31.7 38.2 62.6 79.2Total operating costs 53.4 55.0 68.0 108.4 139.4Operating profit 10.4 -2.5 27.0 7.9 52.8Net financial income -0.8 -5.0 2.1 -5.8 6.7Pre-tax profit 9.6 -7.5 29.2 2.2 59.5Taxes 0.4 0.2 8.2 0.6 16.7Net profit/loss for the period 9.2 -7.7 21.0 1.5 42.8
Half year
2828
• The subgroup consists of factoring, debt collection and acquisition of non-performance portfolio
• SpareBank 1 Factoring received a licence at the end of Q1
• Pre-tax profit for H1 of MNOK (16)
• Strong growth in income in Actor Fordringsforvaltning, 55.9% last 12 months
Other companies
SpareBank 1 Gruppen Finans Holding
SpareBank 1 Medlemskort
• The company was established in October 2008
• SpareBank 1 Gruppen AS owns 75% of Argo Securities AS
• Pre-tax profit for H1 of MNOK (-25)
• SpareBank 1 Medlemskort operates the LO unions' joint membership database for delivery of membership cards, collection of insurance premiums for group insurance, plus operation of LOfavør, a rewards programme
• Pre-tax profit for H1 of MNOK 9.7 (8.3)
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%)
SpareBank 1 Gruppen Finans
Holding AS(100%)
2929
Other factors
3030
ESTIMATED PROFITABILITY EFFECT PER SUBPROJECT(MNOK)
450
-177
30
0
56
-7
89
-21
84
-48
191
-101
Total
FTEs
32311552984144Cost-saving measures
12719160047Income measures
191
84
89
56
30 450
Life insurance P&C insurance Bank 1 Group Other Total recommended measures
A pro-active restructuring programme that will produce considerable earnings improvements has been implemented. These improvements will be derived by 31 December 2010
3131
Bank. Insurance. And you.
3232
Appendix
3333
SpareBank 1 Gruppen group Quarterly results
Q2 Q1 Q4 Q3 Q2 Q1Figures in MNOK 2009 2009 2008 2008 2008 2008
Part of result from subsidiaries before tax - SpareBank 1 Livsforsikring 205.6 24.4 -647.6 -334.9 43.7 -51.8 - Additional provisions recognised as income in consolidated accounts -42.0 42.0 -307.7 286.8 -41.7 62.6 - SpareBank 1 Skadeforsikring 184.9 48.1 -19.3 58.0 125.0 54.1 - Bank 1 Oslo group 67.6 13.1 -57.1 -6.2 34.4 31.9 - ODIN Forvaltning 9.6 -7.5 30.0 25.7 29.2 30.3 - Argo Securities -11.9 -12.9 -4.0 0.0 0.0 0.0 - SpareBank 1 Medlemskort 4.1 5.6 -0.3 4.2 4.2 4.0 - SpareBank 1 Gruppen Finans Holding 11.0 5.3 4.7 3.6 5.4 1.7 - Correction subsidiaries - pro forma IFRS -6.0 7.4 -7.4 -3.3 7.0 -1.8Net result before tax from subsidiaries 423.0 125.4 -1,008.6 33.8 207.2 131.0Total operating costs holding -12.1 -13.2 -16.3 -8.8 -11.9 -10.8Net investment charges holding -7.0 -17.4 -15.4 -15.9 -12.9 -23.6Gains from sale of companies 29.2 0.0 -0.6 21.7 0.0 0.0Share of associated company - First Securities 8.4 5.1 -3.7 0.9 16.4 4.2Net result before amortisation 441.4 99.9 -1,044.6 31.6 198.8 100.8Amortisation 0.0 0.0 -1.3 -14.2 -1.3 -1.3Pre-tax result 441.4 99.9 -1,046.0 17.4 197.5 99.5Taxes -150.7 -94.8 -33.3 -7.0 -50.0 -35.9Net result for the period 290.7 5.2 -1,079.3 10.4 147.4 63.7
Majority interest 292.9 7.5 -1,078.9 10.2 147.0 63.5Minority interest -2.1 -2.3 -0.4 0.3 0.4 0.1
3434
SpareBank 1 Gruppen’s ownership structure
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%)
SpareBank 1 Oslo
(100%)
SpareBank 1Skadeforsikring
(100%)
SpareBank 1Livsforsikring
(100%)
ODIN Forvaltning
(100%)
Actor Fordrings-forvaltning
(100%)
Argo Securities
(75%)
Actor Portefølje(100%)
SpareBank 1 Factoring(100%)
SpareBank 1 Boligkreditt
EiendomsMegler 1
BNbank
(Bank-owned operation)
SpareBank 1 Gruppen Finans
Holding AS(100%)
SpareBank 1Medlemskort
(100%)
Actor Verdigjenvinning
(100%)
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
The Alliance
3535
Bank 1 Oslo (parent bank)Increasing non-performing loans in RM in Q2, reduced in CM
169.2 157.1102.3 104.7
63.8
178.7
283.1349.4
233.9
50.8
58.049.3
67.4
117.5
109.8
124.1
160.8
42.8
63.6
57.0
0.050.0
100.0150.0200.0250.0300.0350.0400.0450.0500.0
Q12007
Q22007
Q32007
Q42007
Q12008
Q22008
Q32008
Q42008
Q12009
Q22009
MN
OK
Corporate market Retail market
3636
0.9
0.50.2
0.7
2.5
1.9
1.5
3.8
0
1
2
3
4
SpareBank 1 Storebrand Vital Nordea
Perc
ent
Source: company presentations
SpareBank 1 Livsforsikring
Booked return for customer portfolios with guarantee year-to-date
Q12009
Q22009
Q12009
Q22009
Q12009
Q22009
Q12009
Q22009
SpareBank 1 Storebrand Vital Nordea
3737
SpareBank 1 Livsforsikring Balance sheet for H1 2009
Figures in MNOK 2009 2008 Intangible assets 77 397 Investments 1,955 1,253 Reinsurance's part of insurance obligations 215 167 Accounts receivable 565 461 Other assets 305 192 Prepayed liabilities and accrued income 0 4 Investments group portfolio 15,079 15,527 Investments options portfolio 4,737 4,663Total assets 22,934 22,666 Paid in capital 1,243 685 Other equity 535 962 Subordinated loan capital 525 525 Insurance obligations - contractual 15,142 15,312 Insurance obligations - investment options 4,811 4,698 Provisions for obligations 96 74 Premium deposits from reinsurance companies 124 94 Other obligations 361 250 Accrued liabilities, prepaied income 98 66Total liabilities and equity 22,934 22,666
Half year
3838
SpareBank 1 LivsforsikringGrowth in premium income
Q2 Q1 Q2 Half yearFigures in MNOK 2009 2009 2008 2009 2008 Individual annuity and pension insurance 65.3 62.8 58.4 128.1 108.7 Individual endowment insurance 120.3 119.2 117.0 239.5 232.2 Group pension insurance 94.1 273.4 135.2 367.5 512.8 Individual life insurance 42.3 41.7 40.1 84.1 80.7 Group life insurance 116.1 212.1 128.3 328.2 322.9 Unit Linked - Annuity 10.8 11.8 9.2 22.6 19.2 Unit Linked - Endowment 76.4 44.6 58.5 120.9 129.6 Defined contribution pension 193.0 190.9 174.4 383.8 334.2Total gross due premium income 718.3 956.5 721.0 1,674.8 1,740.4 Premium reserves transferred from other companies 83.8 65.7 85.9 149.5 314.5 Reinsurance ceded -40.0 -39.7 -132.2 -79.7 -158.6Premium income for own account 762.1 982.4 674.7 1,744.6 1,896.2
3939
SpareBank 1 Livsforsikring Profit/loss per portfolio for H1 2009
Figures in MNOKGroup
portfolio
Previouslyestablished
individual productsInvestment choice
portfolioCompanyportfolio Total
Risk result 191.9 -1.8 0.0 0.0 190.1Administration result 15.5 -21.6 -78.3 0.0 -84.5Net investment result 171.5 128.6 0.0 0.6 300.7Transferred to policyholders -146.2 -76.2 -0.1 0.0 -222.4Return on company's assets 0.0 0.0 0.0 46.2 46.2Sum 232.6 29.0 -78.4 46.8 230.0
4040
Key figures SpareBank 1 Gruppen with subsidiaries
Figures in MNOKQ2
2009Q1
2009Q4
2008Q3
2008Q2
2008Q1
2008Q4
2007Q3
2007Q2
2007GroupCapital adequacy ratio 14.6 % 14.5 % 12.6 % 12.0 % 13.0 % 12.6 % 13.1 % 11.3 % 11.6 %Core capital adequacy ratio 9.9 % 9.8 % 9.4 % 9.0 % 9.0 % 9.2 % 9.6 % 7.9 % 8.1 %Net profit acc. 295.9 5.2 -857.7 221.5 211.1 63.7 309.0 275.6 352.6Return on equity acc. 12.3 % 0.6 % -16.1 % 5.8 % 7.9 % 4.7 % 26.2 % 26.8 % 28.1 %
Life insuranceGross due premium income 718.3 956.5 704.7 697.2 721.0 1,019.4 822.9 844.6 1,596.5 Retail 315.2 280.1 285.5 267.5 283.1 287.4 413.0 462.6 1,226.9 Corporate 403.1 676.4 419.2 429.7 437.9 732.0 410.0 382.1 369.6Total assets 22,934 21,237 21,217 22,287 23,059 22,909 23,998 23,574 23,641Capital adequacy ratio 18.7 % 15.1 % 14.3 % 14.8 % 14.8 % 12.5 % 12.5 % 10.8 % 11.3 %
P&C insuranceNet earned premium 940.2 919.2 935.0 931.5 908.5 902.6 900.0 890.7 872.7 Retail 821.8 804.2 822.8 815.5 798.7 791.2 791.0 787.4 771.6 Corporate 93.7 91.0 89.9 90.5 85.0 87.6 88.0 85.7 -1,444.4 Reinsurance 24.7 24.0 22.3 25.5 24.7 23.8 20.0 17.6 1,545.5Net financial income 162.6 65.8 -72.0 8.9 91.8 8.4 102.0 85.2 119.8Return on financial assets 3.07 % 0.70 % -0.97 % 0.12 % 1.27 % 0.11 % 1.41 % 1.22 % 1.79 %Claims Ratio, net 73.5 % 79.5 % 69.7 % 74.1 % 70.3 % 74.2 % 74.0 % 72.4 % 74.6 %Cost Ratio, net 22.1 % 21.1 % 23.3 % 20.9 % 23.5 % 19.7 % 21.8 % 19.5 % 20.7 %
Bank 1 OsloNet interest income 89.9 88.8 89.9 105.3 95.9 96.7 97.0 90.4 83Net loan loss provisions 25.0 34.9 50.2 31.8 -13.2 -3.8 -3.0 -3.0 -2.6Loans 21,392 21,030 20,688 20,261 19,574 18,844 18,089 17,112 16,483 Retail 14,630 14,655 14,340 13,983 13,574 12,745 12,415 11,981 11,602 Corporate 6,762 6,376 6,348 6,279 6,000 6,098 5,674 5,131 4,880Deposits 15,786 15,914 15,925 14,122 14,681 13,578 13,378 13,550 13,325Capital adequacy ratio 11.7 % 11.6 % 8.0 % 9.3 % 9.9 % 11.4 % 10.0 % 9.8 % 9.8 %Net interest income/average totalt asse 1.40 % 1.41 % 1.48 % 1.82 % 1.81 % 1.86 % 1.92 % 1.85 % 1.78 %Return on equity acc. (parent bank) 13.2 % 4.7 % 1.7 % 6.7 % 10.1 % 9.5 % 9.3 % 10.2 % 9.5 %Return on equity acc. (group) 23.2 % 4.4 % -1.2 % 5.3 % 8.7 % 8.1 % 8.1 %
ODINAssets under management 22,347 17,431 19,163 23,581 30,508 31,400 37,800 45,600 51,100Equity fund market share 12.8 % 13.1 % 13.8 % 13.7 % 14.6 % 15.6 % 15.9 % 18.9 % 20.6 %
4141
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
30.06.2009 30.06.2008 31.12.2008Discount rate 4.00 % 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