q4 2008 financial results for sparebank 1 gruppen presented by acting ceo kirsten idebøen

Preliminary results 2008Financial statements SpareBank 1 Gruppen

Kirsten Idebøen, acting CEOBrigitte Ninauve, financial director

12 February 2009

22

Highlights 4th quarter 2008• The results have been strongly affected by the weak financial markets. SpareBank 1 Livsforsikring

has a shareholding of 12 % in the group portfolio as at 31 December 2008. The Group has a solid capital base

• One-off factors for SpareBank 1 Gruppen in 2008 totalled MNOK -405

• In October SpareBank 1 Gruppen AS acquired a 75 % stake in a newly established brokerage house that is jointly owned with former employees of Kaupthing’s Norwegian brokers. Argo Securities AS was granted a license at the end of November

• In Q4 SpareBank 1 Gruppen AS reached agreement with SpareBank 1 Nord-Norge regarding the acquisition of its factoring business for a purchase price of up to MNOK 40. The company will merge into SpareBank 1 Factoring AS – formerly Glitnir Factoring

• SpareBank 1 Gruppen AS purchases the remaining 10 % of Actor Fordringsforvaltning for MNOK 16 from Sparebanken Sør with effect from 1 January 2009

• In Q4 SpareBank 1 Gruppen AS’ owners injected equity into the Group through an incremental placement totalling MNOK 924

33

Weak result for year, but solid capital base

• The pre-tax loss for 2008 was MNOK -724, down MNOK 1,904 against the previous year

• At the end of 2008, the assets under management were NOK 56.5 billion, up NOK 2.2 billion from 31 December 2007

• The return on equity after tax was -16.3 % (26.2 %)

• Core and capital adequacy ratios were 9.0 % and 12.0 % for the year, against 9.6 % and 13.1 % in 2007

• Additional provisions of MNOK 308 taken to income in the consolidated accounts were reversed in Q4. SpareBank 1 Livsforsikring has utilised MNOK 345 to cover the negative investment result in the annual report and accounts

Pre-tax profit/loss group

-1,038

1,0011,180

-724

240375

-1,500

-1,000

-500

0

500

1,000

1,500

Q42006

Q42007

Q42008

2006 2007 2008MN

OK

Pre-tax profit - Q4 Pre-tax profit

44

380459

299

131228

1134

-991

-1,200

-1,000

-800

-600

-400

-200

0

200

400

600

SB1

Skad

efor

s.

OD

IN

MN

OK

Pre-tax profit 2007Pre-tax profit 2008

Product companies strongly affected by the financial crisis• The combined loss for the year for the

subsidiaries was MNOK -629 compared to a profit of MNOK 1,258 last year

• The life insurance company was strongly affected by the financial unrest and one-off factors. The company is financially sound

• The excellent insurance result balances out the weak financial result in the P&C insurance company

• Reduced volumes under management in ODIN Forvaltning

• Good underlying bank operation in Bank 1 Oslo. The results so far this year are marked by write-downs, losses on securities and net losses on loans

Pre-tax profit subsidiaries

SB1

Livs

fors

.*

Ban

k 1

Osl

oko

nser

n

55

One-off factors in 2008 of MNOK -405

MNOKSpareBank 1 LivsforsikringIT write-downs -417Settlements/claims -52Subtotal -469

ODIN Forvaltning groupForeign exchange gain 15Subtotal 15

SpareBank 1 Gruppen AS and SpareBank 1 Skadeforsikring AShave sold their shares in Alka Forsikring 49Subtotal 49

Total -405

66

Q4 Q3 Q2 Q1 Q4Figures in MNOK 2008 2008 2008 2008 2007 2008 2007

Part of result from subsidiaries before tax - SpareBank 1 Livsforsikring -647.7 -334.9 43.7 -51.8 46.6 -990.6 380.0 - Additional provisions recognised as income in consolidated accounts -307.7 286.8 -41.7 62.6 0.0 0.0 0.0 - SpareBank 1 Skadeforsikring -9.4 58.0 125.0 54.1 133.6 227.6 458.9 - Bank 1 Oslo group -56.3 -6.2 34.4 31.9 32.4 3.9 130.9 - ODIN Forvaltning 27.7 25.7 29.2 30.3 73.7 112.9 299.5 - Share of other companies 0.2 7.7 9.6 5.7 4.8 23.3 19.0 - Correction subsidiaries - pro forma IFRS -7.8 -3.3 7.0 -1.8 -41.0 -5.9 -30.5Net result before tax from subsidiaries -1,000.9 33.8 207.2 131.0 250.1 -628.9 1,257.9Total operating costs holding -16.3 -8.8 -11.9 -10.8 -17.7 -47.8 -60.9Net investment charges holding -15.5 -15.9 -12.9 -23.6 -12.4 -67.9 -46.2Gains from sale of companies holding -0.6 21.7 0.0 0.0 0.0 21.1 0.0Share of associated company - First Securities -3.7 0.9 16.4 4.2 21.8 17.7 56.9Net result before amortisation -1,036.9 31.6 198.8 100.8 241.7 -705.7 1,207.8Amortisation -1.3 -14.2 -1.3 -1.3 -1.3 -18.2 -28.0Pre-tax result -1,038.2 17.4 197.5 99.5 240.4 -724.0 1,179.8Taxes 9.0 -7.0 -50.0 -35.9 88.4 -83.9 39.2Net result for the period -1,029.3 10.4 147.4 63.7 328.7 -807.8 1,219.0

Majority interest -1,028.9 10.2 147.0 63.5 328.6 -808.2 1,218.4Minority interest -0.4 0.3 0.4 0.1 0.2 0.38 0.6

Year

*

* The figures have been restated in accordance with new annual accounts regulations for P&C and life insurance companies** Other companies comprise SpareBank 1 Medlemskort AS, Actor Fordringsforvaltning AS and Argo Securities AS

*

SpareBank 1 Gruppen

Preliminary results 2008

**

77

Bank 1 OsloGood underlying bank operation

88

Bank 1 Oslo (group)

Good underlying bank operation

• Pre-tax profit of MNOK 4 (131) for 2008

• Q4 loss of MNOK -56 (profit of 32)• Unrealised losses on securities

totalled MNOK 73 in 2008, of which the bank’s shares in Nordito AS were written-down by MNOK 23 and goodwill in EiendomsMegler 1 was written-down by MNOK 26

• Loan losses MNOK 65 (-10) for the year. MNOK 50 (-3) in Q4

• Gross non-performing and impaired loans amount to 2.5 % (0.9 %) of gross loans as at 31 December 2008

• Bank 1 Oslo has no direct or indirect exposure to the sub-prime market in the USA or to Icelandic banks. It is nevertheless affected by a general increase in the spread and unrest in the interest market

Pre-tax profit/loss per quarter

*

* Adjusted to take account of the gain of MNOK 100.4 on the sale of the Hamar portfolio in Q3 2006

28 27 3244

33 34

17

3949

32

-56

-6

-70

-50

-30

-10

10

30

50

70

2006 2007 2008MN

OK

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

99

Bank 1 Oslo (parent bank)

Good underlying bank operation

Underlying bank operation is defined as operating result before losses excluding exchange rate gains/losses, securities, derivatives, dividend, as well as extraordinary items

MNOK 31.12.2008 31.12.2007 ChangeNet interest income 387.8 347.1 11.7 %Other operating income 186.4 166.7 11.8 %Operating costs 388.6 369.2 5.3 %Result underlying bank operation 185.5 144.5 28.3 %

Cost/income ratio underlying bank operation 67.7 % 71.9 % -4.2 %

1010

Bank 1 Oslo

Competitive and consumer-friendly

• The bank was awarded a bronze medal in the Norwegian Bank Championships, in the category for mortgages within 80 % of the value of the home

• The medal is a reward for low prices on mortgages throughout one year

• Recently SpareBank 1 Oslo & Akershus was named as Norway’s fifth best bank, up from 47th place the previous year

1111


Higher interest income as a result of good growth

• Lending growth of 19.9 % during the past 12 months. The retail market increased by 23.5 % and the corporate market by 12.0 %

• Net interest income of MNOK 90 (97) in Q4. Net interest income for 2008 of MNOK 388 (347), up 11.7 %

• Accumulated net interest income measured against average total assets of 1.71 % (1.83 %) as at 31 December 2008

Net interest income per quarter

77.5 83.090.4

97.0 96.7 95.9105.3

89.9

0.0

20.0

40.0

60.0

80.0

100.0

120.0

Q12007

Q22007

Q32007

Q42007

Q12008

Q22008

Q32008

Q42008

MN

OK

1.40 %

1.50 %

1.60 %

1.70 %

1.80 %

1.90 %

2.00 %

Net interest income Net interest income measuredagainst average total assets

1212


Margin and volume developments

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

1.25 %1.15 %

1.05 %

0.78 %0.71 %0.72 %

0.90 %

0.62 %0.69 %

1.27 %

0.82 %0.91 %

0.98 %1.04 %

1.20 %

1.33 %

1.50 %

1.64 %

1.37 %

1.49 %1.51 %

0.83 %

0.81 %

1.42 %

10,000

12,000

14,000

16,000

18,000

20,000

22,000

Q12006

Q22006

Q32006

Q42006

Q12007

Q22007

Q32007

Q42007

Q12008

Q22008

Q32008

Q42008

0.40 %

0.60 %

0.80 %

1.00 %

1.20 %

1.40 %

1.60 %

1.80 %

Lending Spread for ordinarylending to customers

Spread for depositsfrom customers

1313

240.9 203.6 220.0 214.0165.8 162.7

113.1

246.1

517.1

234.5

1. kv 2008

%

0.0

100.0

200.0

300.0

400.0

500.0

600.0

Q32006

Q42006

Q12007

Q22007

Q32007

Q42007

Q12008

Q22008

Q32008

Q42008

MNOK

-

0.5

1.0

1.5

2.0

2.5

3.0

Total non-performing loansas % of gross loans

Bank 1 Oslo (parent bank)Increase in non-performing loans attributable to a few corporate market commitments

Percent

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

1414


Change in losses in last year

MNOK

44.4

9.9-22.7-11.8 -65.13.5-52.3 -16.3

-80.0

-60.0

-40.0

-20.0

0.0

20.0

40.0

60.0

Individualwrite-downs

Collectiveimpairment

Net write-offsand incomings on previous write-offs

Net loan losses

2007 2008

1515

Bank 1 Oslo (group)

Growth in other income

• Increase in commission income in 2008 of 8 % to MNOK 80 (74)

• Income from financial investments reduced owing to weak financial markets

• In 2008 the bank has written down the shares in Nordito AS by MNOK 23

• In 2008 the Bank group suffered a write-down of goodwill in EiendomsMegler 1 of MNOK 26

Other income per quarter

-40

-20

0

20

40

60

80

100

Q12007

Q22007

Q32007

Q42007

Q12008

Q22008

Q32008

Q42008

MN

OK

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

1616

Bank 1 Oslo (group)Profit/loss for 2008


Net interest income 91.6 106.7 96.5 96.9 97.5 391.7 348.3Other operating income 43.4 32.3 72.8 40.0 68.7 188.4 217.1Operating costs 141.1 113.1 148.2 108.8 136.6 511.1 444.4Operating result before losses -6.1 25.9 21.0 28.1 29.6 68.9 121.0Net loan loss provisions 50.2 31.9 -13.2 -3.8 -2.8 65.1 -9.9Pre-tax operating profit -56.3 -6.0 34.3 31.9 32.4 3.9 130.9Taxes -17.6 -1.5 9.4 8.9 11.5 -0.7 38.1Net profit/loss for the period -38.7 -4.6 24.8 23.0 20.9 4.6 92.8

Nøkkeltall Q4 Q3 Q2 Q1 Q4 YearTall i prosent 2008 2008 2008 2008 2007 2008 2007

Net interest margin 1.48 % 1.85 % 1.75 % 1.86 % 1.87 % 1.73 % 1.84 %Cost/income ratioexcl. equity investment portfolio (parent bank) 79.3 % 59.6 % 73.0 % 70.3 % 69.8 % 70.2 % 70.6 %Cost/income ratioincl. equity investment portfolio 104.5 % 81.4 % 87.5 % 79.5 % 82.4 % 88.1 % 78.6 %Return on equity (parent bank) 1.7 % 9.3 %Return on equity 0.6 % 8.1 %Deposit coverage ratio 77.2 % 74.2 %Capital adequacy ratio (parent bank) 8.1 % 9.8 %

Year

1717

SpareBank 1 LivsforsikringStrongly affected by the financial crisis and one-off events

1818

SpareBank 1 Livsforsikring

Strongly affected by the financial crisis and one-off events

• Pre-tax loss of MNOK -648 (47) in Q4 and loss of MNOK -991 (380) for 2008

• Improvement in the risk result before technical allocations; of MNOK 264 (187) in 2008

• The investment result totals MNOK -903 (969) and is strongly affected by the financial crisis

• Assets under management as at 31 December 2008 were NOK 21.1 billion– down by NOK 2.9 billion from 31 December

2007• No write-down of real estate in Q4• CDO investments written-down by MNOK 138 *• Negotiated settlement in 2008 amounted to

MNOK 52• A major IT project was written down by MNOK

417

Pre-tax profit/loss per quarter

*** Collateralized debt obligation ** MNOK 345 of the interest deficit was covered by customers’ additional provisions in the annual report and accounts

73 8347

-648

4893

-52

44129

-335

36111

-670

-570

-470

-370

-270

-170

-70

30

130

230

2006 2007 2008

MN

OK

Pre-tax profit/loss - Q1Pre-tax profit/loss - Q2Pre-tax profit/loss - Q3Pre-tax profit/loss - Q4

1919

SpareBank 1 LivsforsikringThe life insurance company has a solid capital base

• In July, SpareBank 1 Livsforsikring received a group contribution of MNOK 216 from its owners, SpareBank 1 Gruppen AS

• In October, SpareBank 1 Gruppen AS decided to transfer an additional MNOK 219 to the company as a group contribution to be paid in April 2009

• In December 2008, the holding company carried out a share capital increase in SpareBank 1 Livsforsikring of MNOK 300. The remaining guarantee totals MNOK 300

• Core capital and capital adequacy ratios of 11.2 % (9.6 %) and 14.3 % (12.5 %) respectively for 2008

• The buffer capital with additional provisions within a one-year interest rate guarantee equals 5.8 % (14.9 %) for the year

2020


Continued high shareholding in the group portfolio

NOK 14.7 billion NOK 1.3 billion NOK 4.0 billion

As at 31 December 2008

Group portfolio

30 %

32 %12 %3 %

23 %

Stocks OtherReal estate Bonds held to maturityBonds

Company portfolio

33 %

7 %1 %

32 %27 %

Stocks OtherReal estate Bonds held to maturityBonds

Investment choice portfolio

54 %17 %

29 %

Stocks Other Bonds

2121

6.7

5.3

-31.2

6.2

8.3

5.2

-42.4

-54

-60 -50 -40 -30 -20 -10 0 10 20

Real estate

Held to maturity

Hedge funds

Foreign bonds

Norwegian bonds

Money market

Foreign shares

Norwegian shares

Percent


Return on ordinary customer portfolio with guarantee as at 31 December 2008

2222


Value adjusted return on customer portfolios with guarantee per

Q3 and Q4 2008 (excl. value change bonds held to maturity)

Source: company presentations

Q32008

Q42008

Q32008

Q42008

Q32008

Q42008

Q32008

Q42008

-1.8-2.0-2.0 -1.8-2.1

-4.9

-0.2

0.3

-6

-5

-4

-3

-2

-1

0

1

SpareBank 1 Storebrand Vital Nordea

Perc

ent

2323 Source: company presentations


Booked return on customer portfolios with guarantee per Q3 and Q4 2008

0.60.1 0.3

-0.1

0.3

1.92.0

-2.8

-4

-3

-2

-1

0

1

2

3


Perc

ent


Q32008

Q42008

Q32008

Q42008

Q32008

Q42008

Q32008

Q42008

2424

SpareBank 1 Livsforsikring carries out IT write-downs of MNOK 417

• The life insurance company has pursued a programme for the broadrenewal of its system portfolio, including the core systems. The renewal was to take place through agreed delivery from an external supplier

• Owing to defaulted delivery, the life insurance company experienced IT write-downs of MNOK 417

• The life insurance company has cancelled the contract with the supplier

• The life insurance company is seeking restitution and compensation from the supplier for a maximum amount of MNOK 130

• No implications for the capital adequacy

• The write-down does not impact on customers

2525

SpareBank 1 LivsforsikringProfit/loss for 2008

* The investment result in 2008 is not directly comparable with the investment result in 2007. Based on new regulations, the figures for 2008 have been split in investment result and return on company’s assets.** In 2008 the accounting regulation for life insurance was adapted to international accounting standards (IFRS). As a result of this the company’s deferred tax advantage is not shown in the balance sheet, and consequently there is no tax cost in the company accounts. A tax cost of MNOK 16 is shown in the consolidated accounts of SpareBank 1 Gruppen in 2008

*

**

Q4 Q2 Q1 Q4Figures in MNOK 2008 2008 2008 2007 2008 2007 Insurance risk income 290.8 288.1 289.6 274.3 1,159.5 1,076.8 Insurance risk claims -207.5 -243.7 -207.2 -210.8 -895.7 -890.1Risk result 83.3 44.4 82.4 63.5 263.9 186.7 Technical allocations -2.8 -15.3 -19.6 -318.8 -53.6 -338.4Risk result after technical allocations 80.5 29.1 62.8 -255.3 210.2 -151.7 Fees 138.1 150.2 137.7 171.4 572.6 616.5 Expenses, exclusive comissions -113.6 -140.5 -123.7 -121.7 -511.8 -457.8 Comissions -93.8 -58.8 -48.0 -55.2 -255.3 -224.9Administration result -69.3 -49.1 -34.0 -5.5 -194.5 -66.3 Net investment income -460.9 167.4 49.3 304.2 -466.4 1,387.3 Guaranteed interest to policyholders -109.8 -109.7 -107.9 -105.6 -436.9 -418.4Investment result -570.7 57.7 -58.6 198.6 -903.3 968.9Result before allocations -559.5 37.7 -29.8 -62.2 -887.6 750.9 Allocation to additional provisions 345.1 0.0 0.0 -160.0 345.1 -160.0 Transferred to policyholders 7.3 -2.2 -5.8 268.7 5.4 -211.0 Return on company's assets -440.6 8.2 -16.2 0.0 -453.6 0.0Net profit to owner before tax -647.7 43.7 -51.8 46.5 -990.6 380.0 Taxes -83.5 -11.6 5.7 124.7 0.0 236.7Net profit/loss for the period -731.2 32.1 -46.1 171.2 -990.6 616.6

Key figures Q4 Q2 Q1 Q4 Year2008 2008 2008 2007 2008 2007

Capital adequacy ratio 14.3 % 12.5 %Buffer capital in % of insurance provisions 5.8 % 14.9 %Buffer capital in % of insurance provisions after allocation of profits 5.8 % 9.3 %

Year

2626

SpareBank 1 SkadeforsikringThe insurance business producedexcellent results

2727

SpareBank 1 SkadeforsikringThe insurance business produced excellent results

• The pre-tax loss for Q4 came to MNOK -9 (134) and the profit for 2008 is MNOK 228 (459)

• The insurance result for the year totals MNOK 200 (83)

• Net claims ratio at year-end of 72.1 % (73.9 %)

• Net financial income for the year is MNOK 54 (378) and includes a gain from the sale of Alka Forsikring in Q3

• Combined ratio of 94.0 % (94.6 %) as at 31 December 2008

• Capital adequacy ratio of 25.8 % (17.9 %) at the end of the year

Pre-tax profit per quarter

139125

82 77

134

18

665450

58

121

-9

-200

2040

6080

100120

140160

2006 2007 2008M

NO

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

2828

SpareBank 1 SkadeforsikringTotal portfolio growth of 3.3 % in 2008 in a market characterised by increased competition

Retail Market (RM) portfolio(excl. group home insurances)

Corporate market (CM) portfolio

2.3 % growth in 2008 7.9 % growth in 2008

2,631

2,691

24.5

30.515.6

-10.6

2,5802,6002,6202,6402,6602,6802,7002,720

2007Change

Q12008

ChangeQ2

2008

ChangeQ3

2008

ChangeQ4

20082008

MN

OK

Total RM portfolio Change in RM portfolio

634

588

11.616.7

12.6

5.2

560570580590600610620630640

2007Change

Q12008

ChangeQ2

2008

ChangeQ3

2008

ChangeQ4

20082008

MN

OK

Total CM portfolio Change in CM portfolio

2929

69.0 % 72.1 %73.9 %69.3 %66.7 %

20.6 %20.7 %

22.1 %20.5 %

21.9 %

0 %

10 %

20 %

30 %

40 %

50 %

60 %

70 %

80 %

90 %

100 %

2004 2005 2006 2007 2008Claims ratio Cost ratio

SpareBank 1 SkadeforsikringDevelopment in net combined ratio

Combined ratio per quarter Combined ratio per year

87.2 %89.9 %

94.6 %91.1 % 94.0 %

23.3 %

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

63.5 %

20.9 %23.5 %19.7 %21.8 %21.2 %

21.4 %19.5 %20.2 %

91.9 % 95.9 % 93.9 % 93.8 % 95.1 % 93.1 %92.7 %97.9 %

84.9 %

0 %

10 %

20 %

30 %

40 %

50 %

60 %

70 %

80 %

90 %

100 %

Q42006

Q12007

Q22007

Q32007

Q42007

Q12008

Q22008

Q32008

Q42008

Claims ratio Cost ratio

3030

SpareBank 1 Skadeforsikring

Allocation of financial assets

Total: NOK 7.7 billion

Bonds held to maturity11.6 %

Bonds60.1 %

Hedge funds4.3 %

Stocks5.0 %

Real estate15.1 %

Bank deposits3.9 %

3131

SpareBank 1 SkadeforsikringProfit/loss for 2008

* The figures have been restated in accordance with new insurance regulations

Q4 Q3 Q2 Q1 Q4Figures in MNOK 2008 2008 2008 2008 2007 2008 2007Gross written premium 917.8 900.2 1,034.8 1,191.2 875.3 4,044.0 3,844.6Net earned premium 935.0 931.5 908.5 902.6 899.7 3,677.6 3,516.5Net incurred claims -652.1 -690.7 -638.8 -669.7 -666.1 -2,651.3 -2,598.5Net insurance operating costs -218.0 -195.1 -213.4 -177.7 -196.3 -804.1 -726.7Changes in other technical reserves -5.9 10.3 -19.5 -7.0 -40.1 -22.1 -108.4Operating result before finance 59.0 56.1 36.8 48.3 -2.8 200.1 82.9Net financial income -60.4 10.6 93.5 10.7 102.2 54.4 377.9Other costs -1.7 -2.5 -1.5 -1.5 -1.2 -7.2 -4.5Result before changes in security reserve -3.1 64.2 128.8 57.4 98.2 247.3 456.3Changes in security reserve -6.2 -6.2 -3.9 -3.4 35.4 -19.7 2.7Pre-tax profit -9.4 58.0 125.0 54.1 133.6 227.6 458.9Taxes 2.6 -16.2 -35.0 -15.1 -37.4 -63.7 -128.5Net profit/loss for the period -6.8 41.7 90.0 39.0 96.2 163.9 330.4

Key figures Q4 Q3 Q2 Q1 Q4Figures in percentage 2008 2008 2008 2008 2007 2008 2007Claims ratio, net 69.7 % 74.1 % 70.3 % 74.2 % 74.0 % 72.1 % 73.9 %Cost ratio, net 23.3 % 20.9 % 23.5 % 19.7 % 21.8 % 21.9 % 20.7 %Combined ratio, net 93.1 % 95.1 % 93.8 % 93.9 % 95.9 % 94.0 % 94.6 %Capital adequacy ratio 25.8 % 17.9 %

Year

Year

**

3232

ODIN ForvaltningLower assets under management

3333

ODIN Forvaltning

Lower assets under management

• Pre-tax profit of MNOK 28 (74) in Q4 and profit for 2008 of MNOK 113 (299)

• Net financial income of MNOK 18 (5) in Q4, of which foreign currency gains amounted to MNOK 15

• The drop in profits was mainly caused by a decrease in the assets under management due to the financial crisis and low new subscriptions

• The assets under management fell in 2008 NOK 18.6 billion, of which NOK 4.4 billion in Q4 to NOK 19.2 billion

• Market share equity funds was 13.8 %, a reduction from 15.9 % at the turn of the year

Pre-tax profit per quarter

52

6772 74

8576 74

2830 29

50

26

0102030405060708090

2006 2007 2008M

NO

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

3434

Stable development in savings agreements the last year in spite of the financial crisis

65.984.3 88.2 84.1

107.3

150.6

198.7

239.6223.6

629632626

600

549

508497

579588

0

50

100

150

200

250

300

2000 2001 2002 2003 2004 2005 2006 2007 2008

Num

ber

of a

gree

men

ts (1

,000

)

400

450

500

550

600

650

Ave

rage

am

ount

in N

OK

Number of savings agreements Average amount per agreement

3535

ODIN ForvaltningProfit/loss for 2008


Management fees 50.4 76.1 84.6 82.5 110.7 293.6 488.1Subscription and redemption fees 9.2 7.9 10.4 14.7 24.4 42.3 97.7Total operating income 59.6 84.1 95.0 97.2 135.1 336.0 585.8Salaries 23.0 25.3 26.3 27.0 27.4 101.6 144.4Depreciations 3.8 3.7 3.5 3.4 3.7 14.5 13.7Other operating costs 23.2 32.4 38.2 41.0 34.9 134.8 144.1Total operating costs 50.0 61.5 68.0 71.4 65.9 250.9 302.2Operating profit 9.7 22.6 27.0 25.8 69.2 85.1 283.6Net financial income 18.1 3.1 2.1 4.5 4.5 27.8 15.9Pre-tax profit 27.7 25.7 29.2 30.3 73.7 112.9 299.5Taxes 7.8 7.2 8.2 8.5 20.9 31.6 84.1Profit after tax 20.0 18.5 21.0 21.8 52.9 81.3 215.4

Year

3636

Other factors

3737

• In Q1 2008, Frisk Forsikring was launched as a new brand for a product group

• Used by SpareBank 1 Skadeforsikring and SpareBank 1 Livsforsikring for sales in new channels

• First agreement was signed with 15 organisations in Norway’s Confederation of Sports with 230,000 members

• In Q1 2009 an agreement was signed with the Norwegian Football Association with its 375,000 members

• This forms the basis for direct sales of products to well over half a million sports members – and their families and friends

New kick-off from Frisk Forsikring

3838

Bank. Insurance. And you.

3939

Appendix

4040

Q4 Q3 Q2 Q1 Q4 Q3Figures in MNOK 2008 2008 2008 2008 2007 2007

Part of result from subsidiaries before tax - SpareBank 1 Livsforsikring -647.7 -334.9 43.7 -51.8 46.6 111.2 - Additional provisions recognised as income in consolidated accounts -307.7 286.8 -41.7 62.6 0.0 0.0 - SpareBank 1 Skadeforsikring -9.4 58.0 125.0 54.1 133.6 120.8 - Bank 1 Oslo group -56.3 -6.2 34.4 31.9 32.4 38.7 - ODIN Forvaltning 27.7 25.7 29.2 30.3 73.7 84.5 - Share of other companies 0.2 7.7 9.6 5.7 4.8 3.9 - Correction subsidiaries - pro forma IFRS -7.8 -3.3 7.0 -1.8 -41.0 20.8Net result before tax from subsidiaries -1,000.9 33.8 207.2 131.0 250.1 379.9Total operating costs holding -16.3 -8.8 -11.9 -10.8 -17.7 -10.2Net investment charges holding -15.5 -15.9 -12.9 -23.6 -12.4 -11.9Gains from sale of companies holding -0.6 21.7 0.0 0.0 0.0 0.0Share of associated company - First Securities -3.7 0.9 16.4 4.2 21.8 2.4Net result before amortisation -1,036.9 31.6 198.8 100.8 241.7 360.2Amortisation -1.3 -14.2 -1.3 -1.3 -1.3 -7.0Pre-tax result -1,038.2 17.4 197.5 99.5 240.4 353.3Taxes 9.0 -7.0 -50.0 -35.9 88.4 -70.2Net result for the period -1,029.3 10.4 147.4 63.7 328.7 283.1

Majority interest -1,028.9 10.2 147.0 63.5 328.6 282.9Minority interest -0.4 0.3 0.4 0.1 0.2 0.2

SpareBank 1 Gruppen consolidated Quarterly results

**

**

* The figures have been restated in accordance with new annual accounts regulations for P&C and life insurance companies** Other companies comprise SpareBank 1 Medlemskort AS, Actor Fordringsforvaltning AS and Argo Securities AS

4141

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 1Oslo

(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%)

Verdigjenvinning(100%)

* SpareBank 1 Gruppen Finans Holding AS’ function is to coordinate the underlyingcompanies (Application for concession has been sent to The Financial Supervisory Authority of Norway)

First Securities(24,5%)

SpareBank 1 Boligkreditt

EiendomsMegler 1

BNbank

(Bank-ownedoperation)

*SpareBank 1 Gruppen Finans

Holding AS(100%)

SpareBank 1 Gruppen’s ownership structure

4242

Bank 1 Oslo (parent bank)Development in non-performing loans at the end of 2008

193.3 160.8 169.2 157.1102.3 104.7 63.8

178.7

399.647.657.0

63.6 58.049.3

67.4

117.5

186.9

47.6 50.842.8

0.0

100.0

200.0

300.0

400.0

500.0

600.0

Q32006

Q42006

Q12007

Q22007

Q32007

Q42007

Q12008

Q22008

Q32008

Q42008

MN

OK

Corporate market Retail market

4343

SpareBank 1 LivsforsikringBalance sheet for 2008

* Based on new accounting regulations pursuant to a new act relating to insurance, life insurance companies are exempt from preparing comparison figures for 2007

*Figures in MNOK 31.12.2008 30.09.2008 Intangible assets 78.3 454.0 Investments 1,359.1 1,750.4 Reinsurance's part of insurance obligations 211.2 172.6 Accounts receivable 394.3 236.8 Other assets 321.5 759.2 Prepayed liabilities and accrued income 3.4 3.3 Investments group portfolio 14,808.0 14,693.8 Investments options portfolio 4,041.0 4,216.6Total assets 21,216.9 22,286.6 Paid in capital 1,203.7 685.1 Other equity -66.9 1,119.7 Subordinated loan capital 525.0 525.0 Insurance obligations - contractual 14,812.6 15,262.8 Insurance obligations - investment options 4,079.8 4,216.6 Provisions for obligations 98.4 72.1 Premium deposits from reinsurance companies 116.6 94.1 Other obligations 371.9 227.7 Accrued liabilities, prepaied income 75.9 83.5Total liabilities and equity 21,216.9 22,286.6

4444

SpareBank 1 LivsforsikringDevelopment in premium income

Q4 Q3 Q2 Q1 Q4 YearFigures in MNOK 2008 2008 2008 2008 2007 2008 2007 Individual annuity and pension insurance 61.4 54.6 58.4 50.3 103.4 224.7 253.5 Individual endowment insurance 116.6 113.6 117.0 115.3 118.3 462.4 1,465.6 Group pension insurance 125.9 133.2 135.2 377.6 158.3 771.8 700.9 Individual life insurance 41.3 41.0 40.1 40.7 41.3 163.0 156.7 Group life insurance 122.1 127.4 128.3 194.6 116.0 572.4 546.1 Unit Linked - Annuity 19.3 9.2 9.2 10.0 21.7 47.7 64.5 Unit Linked - Endowment 47.0 49.1 58.5 71.1 128.2 225.7 672.7 Defined contribution pension 171.2 169.1 174.4 159.8 135.7 674.6 590.4Total gross due premium income 704.7 697.2 721.0 1,019.4 822.9 3,142.3 4,450.5 Premium reserves transferred from other companies 77.7 77.7 85.9 228.5 116.6 469.9 447.9 Reinsurance ceded -39.8 -40.2 -132.2 -26.4 -18.0 -238.6 -71.4Premium income for own account 742.6 734.7 674.7 1,221.5 921.5 3,373.6 4,827.0

4545

SpareBank 1 LivsforsikringResults per portfolio

*

* Incl. write-down of an IT project by MNOK 417

Figures in MNOKGroup

portfolio

Previouslyestablished

individual productsInvestment choice

portfolioCompanyportfolio Total

Risk result 208.4 2.2 -0.3 0.0 210.2Administration result -24.3 -39.6 -130.5 0.0 -194.5Net investment result -476.3 -427.0 0.0 0.0 -903.3Transferred to policyholders 158.1 193.3 -0.9 0.0 350.5Return on company's assets 0.0 0.0 0.0 -453.6 -453.6Sum -134.1 -271.2 -131.7 -453.6 -990.6

4646

Key figures

1) All figures are in MNOK, except for the number of savings agreements

2) All figures are per quarter, unless otherwise stated

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

4) Assets under management are total assets under management excl. receivables and reinsurance shares of gross insurance provisions

Figures in MNOK 1) & 2)Q4

2008Q3

2008Q2

2008Q1

2008Q4

2007Q3

2007Q2

2007Q1

2007Q4

2006GroupCapital adequacy ratio acc. 12.0 % 12.0 % 13.0 % 12.6 % 13.1 % 11.3 % 11.6 % 12.5 % 12.9 %Core capital adequacy ratio acc. 9.0 % 9.0 % 9.0 % 9.2 % 9.6 % 7.9 % 8.1 % 9.0 % 9.3 %Net profit acc. -807.8 221.5 211.1 63.6 309.0 275.6 352.6 241.3 406.2

Life insuranceGross due premium income 704.7 697.2 721.0 1,019.4 822.9 844.6 1,596.5 1,186.4 713.1 Retail 285.5 267.5 283.1 287.4 413.0 462.6 1,226.9 510.6 422.4 Corporate 419.2 429.7 437.9 732.0 410.0 382.1 369.6 675.8 290.7Investment result 3) - - - - 199.0 224.5 407.6 138.6 435.3Value adjusted return on assets 3) - - - - 0.6 % 0.7 % 3.7 % 1.4 % 3.7 %Total assets acc. 21,079 22,286 23,087 23,388 23,998 23,574 23,641 22,711 22,041Capital adequacy ratio acc. 14.3 % 14.8 % 14.8 % 12.5 % 12.5 % 10.8 % 11.3 % 12.0 % 12.6 %

P&C insuranceNet earned premium 935.0 931.5 908.5 902.6 900.0 890.7 872.7 853.4 877.5 Retail 822.8 815.5 798.7 791.2 791.0 787.44 771.6 755.3 777.3 Corporate 89.9 90.5 85 87.6 88.0 85.7 -1444.4 1,608.8 81.2 Reinsurance 22.3 25.5 24.7 23.8 20.0 17.6 1545.5 -1510.7 19Net financial income -60.4 10.6 93.5 10.7 102.0 85.2 119.8 70.7 73.4Assets under management acc. 4) 7,408.3 7,312.1 7,214.9 7,422.0 7,222.0 6,981.4 6,689.3 6,493.2 6,052.9 Return on financial assets -0.81 % 0.14 % 1.30 % 0.14 % 1.41 % 1.22 % 1.79 % 1.09 % 1.21 %Claims Ratio, net 69.7 % 74.1 % 70.3 % 74.2 % 74.0 % 72.4 % 74.6 % 76.7 % 69.3 %Cost Ratio, net 23.3 % 20.9 % 23.5 % 19.7 % 21.8 % 19.5 % 20.7 % 21.2 % 20.6 %

Bank 1 OsloNet interest income 91.6 105.3 95.9 96.7 97 90.4 83.0 77.5 83.5Net loan loss provisions 50.2 31.8 -13.2 -3.8 -3.0 -3 -2.6 -1.4 -2.1Loans acc. 21,683 20,721 19,597 18,757 18,013 17,044 16,422 15,614 15,282 Retail 15,331 14,551 13,690 12,872 12,417 11,981 11,602 11,121 10,764 Corporate 6,352 6,170 5,907 5,885 5,596 5,063 4,820 4,493 4,518Deposits acc. 15,925 14,122 14,681 13,578 13,378 13,550 13,325 13,055 11,617Capital adequacy ratio acc. 8.1 % 8.6 % 8.8 % 10.4 % 9.8 % 9.8 % 9.8 % 10.6 % 11.0 %Net interest income/average totalt assets 1.48 % 1.82 % 1.81 % 1.86 % 1.92 % 1.85 % 1.78 % 1.76 % 1.95 %Return on equity acc. (parent bank) 1.7 % 6.7 % 10.1 % 9.5 % 9.3 % 10.2 % 9.5 % 8.0 % 16.3 %Return on equity acc. (group) 0.6 % 5.5 % 9.0 % 8.3 % 8.1 %

ODINAssets under management acc. 19,163 23,581 30,508 31,400 37,800 45,600 51,100 46,900 43,600Equity fund market share acc. 13.8 % 13.7 % 14.6 % 15.6 % 15.9 % 18.9 % 20.6 % 21.0 % 20.4 %Savings agreements acc. 223,643 225,732 236,182 236,681 239,605 233,539 232,563 223,790 198,677

4747

Premises for calculating the pension liability

• SpareBank 1 Gruppen always shows the prevailing market value of its pension liabilities in the balance sheet

• Deviations from estimates are recognised directly in equity each quarter. For 2008, MNOK 155 is recognized in equity

• SpareBank 1 Gruppen uses a new scale of tariffs, K2005

31.12.2008 31.12.2007 31.12.2006Discount rate 3.80 % 4.80 % 4.45 %Basic amount adjustment/inflation 3.75 % 4.25 % 4.25 %Wage adjustment 4.00 % 4.25 % 4.00 %Expected return on pension funds 5.80 % 5.80 % 5.40 %AFP early retirement plan 40 % 40 % 40 %Pension adjustments 1.50 % 2.30 % 1.90 %

Mortality K2005 K2005 K1963Disability 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

q4 2008 financial results for sparebank 1 gruppen presented by acting ceo kirsten idebøen

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