3rd quarter th October Terje Vareberg, Chief Executive Officer Inge Reinertsen, Chief Financial Officer

Transcription

1 SpareBank 1 SR-Bank Group 3rd quarter th October 2010 Terje Vareberg, Chief Executive Officer Inge Reinertsen, Chief Financial Officer

2 In brief 3rd quarter 2010 Profit before tax per was NOK 1,200 million (NOK 995 million) representing an after-tax return on equity: 15.1 % (16.9 %) Profit before tax Q3 was NOK 386 million (NOK 503 million) representing an after-tax return on equity : 14.3 % (25.2 %) Good development in underlying operations Loans incl. SpareBank 1 Boligkreditt grew by 6.6 % last 12 months, of which: Retail market 12.3 % Corporate market -1.7 % Deposits grew by 3.7 % last 12 months, of which: Retail market 5.4 % Corporate market 2.7 % Reduced loan loss provisions The merger between SpareBank 1 SR-Bank and Kvinnherad SpareBank will go through with effect from 1st November 2010 The Board of Directors propose to the Supervisory Board that an application is promoted to the Ministry of Finance of transformation to limited liability savings bank On 1 January 2011, Arne Austreid succeeds Terje Vareberg as Chief Executive Officer (Tall for samme periode i 2009 i parentes) Page 2 Q3 2010

3 Key figures Return on equity Cost ratio 16,9 % 15,1 % 60,3 % 10,0 % 47,0 % 45,6 % Deposit-to-loan Earnings per EC 56,1 % 57,9 % 55,5 % 4,9 4,9 3, Page 3 Q3 2010

4 The group s income profile Net interst, commisions and other income Comments The income is derived from a wide range of products provided by the parent bank and the subsidiaries A strong brand name, a high level of competence and good distribution capabilities are paramount elements that allow us to maintain and strengthen the group s ability to generate future earnings Net interest income Net commission an other income Page 4 Q3 2010

5 Income statement MNOK Q3 10 Q2 10 Q1 10 Q4 09 Q3 09 Net interest income Net c ommission and other income Net return on investment securities Total income Total operating expenses Operating profit before losses Impairment losses on loans and guarantees Operating profit before tax and min. int Tax expense Net profit Of which minority interests Page 5 Q3 2010

6 Key figures Return on equity after tax Net interest margin Cost ratio Impairment losses on loans and guarantees in % of gross loans incl. SpareBank 1 SR-Bank Impairment losses on loans and guarantees in % of gross loans excl. SpareBank 1 SR-Bank Non-performing and other problem commitments in % of gross loans incl. SpareBank 1 SR-Bank Non-performing and other problem commitments in % of gross loans excl. SpareBank 1 SR-Bank Annual growth in loans to customers, gross (incl. SpareBank 1 Boligkreditt) Annual growth in deposits from customers Total assets, BNOK Mortgage loans transferred to SpareBank 1 Boligkreditt, BNOK Finanstilsynet's liquidity indicator (excl. draw. facil.)*/** Result per equity certificate (EC), NOK Book value per equity certificate (EC), NOK kvartal kvartal ,1 % 14,3 % 16,9 % 25,2 % 17,5 % 1,4 % 1,3 % 1,3 % 1,5 % 1,4 % 45,6 % 48,7 % 47,0 % 39,0 % 46,7 % 0,18 % 0,18 % 0,38 % 0,38 % 0,32 % 0,23 % 0,23 % 0,41 % 0,41 % 0,38 % 1,2 % 1,2 % 0,8 % 0,8 % 1,0 % 1,5 % 1,5 % 1,0 % 1,0 % 1,2 % 6,6 % 6,6 % 8,8 % 8,8 % 5,3 % 3,7 % 3,7 % -0,3 % -0,3 % 2,4 % ,8 % 95,8 % 4,9 4,9 4,9 4,9 6,9 44,2 44,2 40,5 40,5 42,1 Number of certificates issued, millions * Key figure for the group not calculated for 2009 ** Issuance of new loan on of approximately NOK 4 billion with of 5.5 years gives liquidity indicator of 98.7% Page 6 Q3 2010

7 Net interest income Includes commission income from SpareBank 1 Boligkreditt MNOK Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Net interest income Commission income SpareBank 1 Boligkreditt Page 7 Q3 2010

8 Lending and deposit margins Definition: Average customer interest minus 3 months average nibor Page 8 Q3 2010

9 Lending growth, last 12 months % Volume MNOK ,8 % 29,2 % 20,8 % 13,5 % 5,9 % 30 % 25 % 20 % 15 % 10 % 5 % SB1 Boligkreditt 19,4 % CM; 38,1 % RM; 42,5 % - 0 % (10.000) -1,3 % -2,1 % -2,7 % -1,7 % -5 % Q308 Q408 Q109 Q209 Q309 Q409 Q110 Q210 Q310 Lending volume - CM Growth % - CM MNOK ,5 % 13,7 % 12,0 % 11,6 %11,1 % 10,7 % 12,4 % 12,1 % 12,3 % 18 % 16 % 14 % 12 % 10 % 8 % 6 % Growth in loans CM year-to-date: -0,2 % of which growth in Q3 2010: -0,5 % Growth in loans RM year-to-date : 8,7 % of which growth in Q3 2010: 3,0 % % % - 0 % Q308 Q408 Q109 Q209 Q309 Q409 Q110 Q210 Q310 Lending volume - RM incl. SpareBank 1 Boligkreditt Growth % - RM incl. SpareBank 1 Boligkreditt Page 9 Q3 2010

10 Loans by industry Oil/gas exploitation; 2,2 (2,4) Fishing/fish farming; 0,3 (0,3) Agriculture/forestry; 2,6 (2,6) Industry; 2,0 (2,2) Power/water supply; 0,5 (0,4) Construction and building; 2,1 (1,7) Commodity trade/hotels; 2,0 (2,4) Shipping/offshore; 4,5 (5,0) Development and sale of fixed property; 2,5 (2,5) Purchase and sale of fixed property; 1,9 (1,8) Housing cooperative; 1,1 (1,1) Retail customers; 42,5 (38,1) Real estate; 17,2 (18,2) Letting of fixed property; 11,2 (12,0) SpareBank 1 Boligkreditt; 19,4 (20,5) Service industry; 4,2 (5,6) Pub. management and financial services; 0,6 (0,5) Property management; 0,5 (0,7) Retail market 61,9 (58,7) All figures in percent. Figures for the same period in 2009 in parentheses. Volume incl. mortgage transferred to SpareBank 1 SR-Bank. Page 10 Q3 2010

11 Risk profile total loan portfolio High percentage of commitments with low risk 90% of the loan exposure, corresponding to 91% of the customers, meets the criteria for low or lowest risk. Expected losses in this part of the portfolio are extremely limited, amounting to 0.04% Exposure to high or highest risk corresponds to 2% of the loan exposure or 3% of the customers. Expected losses on this part of the portfolio amount to about 3.6% 99% of the customers, corresponding to 68% of the loan exposure, involve commitments of less than NOK 10 million. A limited number of customers have an exposure in excess of NOK 100 million. These have a lower default probability than the portfolio average Lowest Low risk, expected losses 0 %-0.50% Medium risk, expected losses % High highest risk, expected losses more than 2.00% Page 11 Q3 2010

12 Portfolio of housing loans LTV Very good collateral cover for loans with mortgages on residential property FSAN defines our guidelines for acceptable lending practice for housing loans. The main requirements relate to a through process, especially regarding the borrower s ability to service the loan and that the loan shall not exceed 90 per cent of the value of the property. The bank s lending practice complies with FSAN guidelines. Only 6 per cent of the exposure exceeds 75 per cent of the collateral values. There have been no significant changes in LTV during the last quarter. The calculation of LTV is based on the market value of the collateral. In the case of balance-distributed LTV, loans that exceed 60% of the collateral s market value the excess amount is distributed among the other intervals. In the case of totally distributed LTV the entire loan is allocated to one and the same interval. The figures include the portfolio transferred to Boligkreditt. Page 12 Q3 2010

13 Lending against mortgages in commercial property The portfolio is dominated by commitments with low risk The portfolio of commercial property represents the group s largest concentration on a single sector Accounts for approx. 14% of total exposure (EAD) including retail market customers The commercial property portfolio is dominated by low risk commitments and the credit quality is relatively stable 75% of the exposure is now classified as low risk, whilst 4% is classified as high risk Lowest Low risk, expected losses 0 %-0,50% Medium risk, expected losses 0,50-2,00 % High highest risk, expected losses more than 2% A significant part of the portfolio is interest-hedged, mainly by way of hedging contacts with a term of more than 5 years The portfolio is characterised by longterm leases with financially sound tenants. Vacant space is limited Page 13 Q3 2010

14 Deposit growth, last 12 months Volume BM; 51,9 % PM; 48,1 % Growth in deposits CM year-to-date: -1,8 % of which growth in Q3 2010: 0,6 % Growth in deposits RM year-to-date : 5,2 % of which growth in Q3 2010: -3,0 % Page 14 Q3 2010

15 Net commission income and other income MNOK Q3 10 Q2 10 Q1 10 Q4 09 Q3 09 Payment facilities Savings/placements Insurance products Commission income real estate (EM1) Commission income SpareBank 1 Boligkreditt Guarantee commission Salesprofit, building Arrangement- and customer fees Other Net commission and other income Page 15 Q3 2010

16 Other operating income in % of total income Def.: Net commission and other income + Currency/interest gains/losses Net interest income + Net commission and other income + Currency/interest gains/losses Page 16 Q3 2010

17 Savings/placements portfolio development As at , assets under management amounted to NOK 11.4 billion Up from NOK 10.6 billion at Approximately 55,000 current savings contracts Stable development in net new subscriptions Most of the assets are managed by SR-Forvaltning and ODIN SR-Fondsforvaltning sold to the ODIN Forvaltning AS with effect from Page 17 Q3 2010

18 Net return on investment securities MNOK Q3 10 Q2 10 Q1 10 Q4 09 Q3 09 Dividend Investment income, associates Securities gains/losses of which capital change in shares and certificates of which capital change in certificates and bonds Currency/interest gains/losses of which currency customer- and own-acc ount trading of which IFRS-effec ts Net return on investment securities Page 18 Q3 2010

19 Subsidiaries MNOK EiendomsMegler 1 SR-Eiendom AS Number of sales Operating profit before taxes 41,4 37,2 SpareBank 1 SR-Finans AS Total assets, NOK billion 5,0 5,0 Operating profit before taxes 52,8 74,1 SR-Forvaltning ASA Portfolio, NOK billion 5,9 5,4 Operating profit before taxes 15,7 16,3 SR-Investering AS Investmentportfolio Operating profit before taxes 5,9-8,0 SR-Fondsforvaltning AS Operating profit before taxes -3,3-4,6 Other Operating profit before taxes 0,2 2,2 Total subsidiaries Operating profit before taxes 112,7 117,2 Page 19 Q3 2010

20 Ownership interests MNOK SpareBank 1 Gruppen AS (19,5 % interest ownership) * Profit after tax 104,5 101,0 BN Bank ASA (23,5 % interest ownership) Profit after tax 18,0 18,2 Amortised 4,8 6,5 SpareBank 1 Boligkreditt AS (33,3 % interest ownership) Profit after tax 15,2 19,4 SpareBank 1 Næringskreditt AS (23,5% interest ownership) Profit after tax 1,5 - SpareBank 1 Utvikling Profit after tax -2,8 - Bank 1 Oslo AS (19,5% interest ownership) ** Profit after tax 32,0 25,4 Total owner interests Profit after tax 173,2 170,5 * The share of the profit is NOK 99.1 million. In addition a NOK 5.5 million correction from 2009 has been taken to income Page 20 Q3 2010

21 Result before tax per division As at (NOK 1,200 million) MNOK RM (parentbank) CM (parentbank) CM (incl subsidiaries) SB1 Alliance BN Bank and Bank 1 EM1 SR-Finans Other Page 21 Q3 2010

22 12 month growth in income and expense 20 % 15 % 10 % 15,7 % 16,5 % 5 % 0 % -5 % 0,0 % 2,5 % * -7,5 % 9,6 % 3,1 % * 5,8 % Growth in income Growth in expense -10 % -15 % Parentbank EiendomsMegler 1 SR-Eiendom SR-Finans Group *Year-on-year growth in expenses as at has been corrected for NOK 64 million net on contractual pensions (AFP) Page 22 Q3 2010

23 Cost ratio as at % Big differences in cost levels for the various activities 80 % EM1 SR-Eiendom has a high portion of costdriven income; 60 % 40 % whilst SR-Finans has an entirely different activity profile; but both companies are effective. 20 % 0 % Central companies in the group s value chain EM1 SR-Eiendom SR-Forvaltning SR-Finans Parentbank Group Page 23 Q3 2010

24 Impairment losses on loans and guarantees Jan-Sep Jan-Jun Jan-Mar Jan-Dec Jan-Sep MNOK Retail customers Corporate customers Net impairment losses on loans Jan-Sep Jan-Jun Jan-Mar Jan-Dec Jan-Sep MNOK Increased impairment losses on loans Reversed impairment losses on loans Net impairment losses on loans Impairment losses ratio 0,23 0,25 0,28 0,38 0,41 MNOK Sep 2010 Jun 2010 Mar 2010 Dec 2009 Sep 2009 Individual impairment losses on loans Collective impairment losses on loans Total impairment losses on loans Page 24 Q3 2010

25 Impairment losses on loans last 5 years MNOK % 500 0,5 400 Collective impairment losses on loans Individual impairment losses on loans 0,41 0,38 0,4 300 Impairment losses ratio ,23 0, , , ,01 0-0,1-0,12-0, , Page 25 Q3 2010

26 Provision rate for problem and gross nonperforming commitments as at Gross non-performing commitments Problem commitments (not non-performing) MNOK % MNOK 1,26 % % ,94 % 0,21 % 0,14 % ,10 % 348 0,35 % 0,54 % 0,42 % % 30% 28% 18% 26% 22% Gross non-performing loans Share provisions for individual impairment losses Gross non-performing loans in % of gross lending 0,54 % 0,27 % % 37% 12% 0,81 % 0,73 % % 31% 31% Problem commitments Share provisions for individual impairment losses Problem commitments in % of gross lending Gross non-performing commitments non-performing loans before deduction of loss provisions. Non-performing over 90 days. Problem commitments Commitments that are not non-performing for which a loss provision has been made Page 26 Q3 2010

27 Capital strength Core capital ratio 9,3 % 7,2 % 6,9 % Capital adequacy ratio Core capital ratio at end of Q was 9.3% - significant strengthening from 6.9% at the same time last year - Recapitalisation through issuance of equity capital certificates and Tier 1 Perpetual bonds in the autumn of 2009 Because of the transitional regulations, the minimum capital adequacy requirements are reduced to 80% of the requirements under Basel I rules. - Core capital coverage, without taking into account the transitional regulations, was 10.1% at the end of Q Transitional regulations extended to the end of ,1 % 9,3 % 11,6 % SpareBank 1 SR-Bank goal is to have a minimum core capital ratio of 9% Page 27 Q3 2010

28 Funding and liquidity management 4,500 4,000 3,500 Funding next 12 months Very good liquidity Mrd kr 3,000 2,500 2,000 1,500 As at the liquidity buffer totalled NOK 17.6 billion 1,000 0,500 0,000 Funding needs for 2010 have been covered Mrd kr 12,000 10,000 Funding Funding per year Egenbeholdning Issued a new 5.5-year senior loan of Euro 500 million under the bank s EMTN programme 8,000 6,000 4,000 2,000 0, Funding Egenbeholdning Stock of own bonds Page 28 Q3 2010

29 Liquidity buffer and bondportfolio Liquidity buffer Bondportfolio Mrd kr Market value BNOK Of which, securities classified to amortised cost BNOK Assets class Share Norwegian state/municipal 0,7 4 % 0,1 Norwegian bank/finance 1,8 11 % 0,5 Norwegian other 0,1 1 % 0,1 Foreign bank and finance 1,7 10 % 1,0 Other Norwegian covered bonds 12,2 72 % 9,6 Industry 0,2 1 % - Total 16,8 100 % 11, Liquidity buffer: cash, short-term placements, drawing rights in Norges Bank (bonds including covered bonds) and home loans that currently are ready to be transferred to Boligkreditt. Provided deposits and lending remain unchanged, with no new borrowing during the period. Page 29 Q3 2010

30 Financial targets Return on equity after tax 15,1 % Core capital ratio 9,3 % Capital adequacy ratio 11,6 % The aim of SpareBank 1 SR-Bank is to be among the top third in return on equity of comparable banks SpareBank 1 SR-Bank goal is to have a minimum core capital ratio of 9 % Page 30 Q3 2010

31 Rating Moody's Fitch Long- term debt A1 Long-term IDR A Outlook Stable Outlook Negative Outlook Last updated 7th September th March 2010 Page 31 Q3 2010

32 Merger with Kvinnherad Sparebank The merger between SpareBank 1 SR-Bank and Kvinnherad SpareBank will go through with effect from 1st November 2010 Joining forces to strengthen focus on Sunnhordland and Odda SpareBank 1 SR-Bank acquires all the assets, employees and obligations Kvinnherad Sparebank is to be converted into a savings bank foundation, the object of which is to contribute to benevolent causes that generally benefit Sunnhordland and Odda, and to be a long-term, stable owner of equity capital certificates in SpareBank 1 SR-Bank A good basis on which SpareBank 1 SR-Bank can strengthen its further concentration on Hordaland We believe that this is a good solution for the bank, our customers and the local communities in Kvinnherad, Odda and Stord, as well as for the region as a whole. SpareBank 1 SR-Bank has a strong position in its market areas and is an important partner for both private customers and trade and industry. These qualities will continue and be further strengthened when we now merge to become an even more powerful player in Hordaland. Åsmund Kåre Rørvik CEO, Kvinnherad Sparebank Page 32 Q3 2010

33 Conversion to limited liability savings bank? The group has a strong market position, profitability has been good over many years, and the group is well-positioned for profitable growth However, access to capital may be subject to more intensive competition One must expect the finance markets to be subject to more unrest and rapid changes in the years to come, compared with what we have experienced over the last two decades Demands relating to capital strength will intensify, and access to equity and external capital will, in some periods, be more demanding than has previously been the case Significantly sharper focus on the banks capitalisation by investors, rating agencies and the funding market, especially regarding core capital ratios Through the equity capital certificate, SpareBank 1 SR-Bank has some self-imposed limitations which in light of market trends may be unnecessarily demanding when it comes to ensuring a foundation for growth by way of raising competitive equity and external capital in the Norwegian and international markets At its meeting on the Board of Directors resolved to propose to the Supervisory Board that the bank seeks permission from the authorities to convert into a limited liability savings bank. - The Supervisory Board will consider the matter at the end of November. Page 33 Q3 2010

34 Prospects World economy continues to improve - especially in the emerging economies in Asia the improvement in industrialised countries is dampened by high unemployment and central government debt. Focus on the debt situation for a number of European countries has brought about an increase in the banks' funding costs and affected risk assessment and financial market pricing. - We must therefore be prepared to face uneasy markets in the future as well. New international rules governing liquidity raise some challenges for Norwegian banks as well, but should be manageable. The crisis has been mild in Norway and companies in general are becoming more optimistic. There is a tendency for credit demand from the business sector to increase The level of activity in the group s market area is affected by the activity in the petroleum sector. The estimates for future oil and gas investments indicate that the high activity level will be maintained. The group s liquidity and capital adequacy are reassuring and it is well positioned for growth and exploitation of interesting commercial opportunities in the time to come. Write downs are expected to stay at a relatively low level in the future. For SpareBank 1 SR-Bank, 2010 seen as a whole is expected to be a good year. Page 34 Q3 2010

35 Appendix Page 35 Q3 2010

36 Equity certificate - ROGG Owner shares as at : From Rogaland, Agder-fylkene and Hordaland: 46,4 % (62,4 %) Non-domestic: 8,0 % (7,7 %) Largest 10: 31,9 % (17,6 %) Largest 20: 38,8 % (25,0 %) No. of ROGG owners as at : (11 671) Employees in the group owned 3,7 % of the equity certificates by the end of 3rd quarter 2010 Turnover 3rd quarter 2010: 2,7 % (3,4 %) (Figures for corresponding period in 2009 are shown in parentheses) EC percentage 63,2 % 62,9 % 56,1 % 54,9 % Market price 53,00 50,00 27,08 55,21 Stock value (NOK million) 6409, Book value per EC, NOK (group) 44,19 42,07 37,23 37,64 Book value per EC, NOK (parentbank) 38,82 36,85 32,06 34,02 Earnings per EC 4,87 6,88 3,00 6,54 Dividend per EC n.a. 1,75 0,83 3,96 P/E 8,16 7,27 9,03 8,44 P/BV (group) 1,20 1,19 0,73 1,47 P/BV (parentbank) 1,37 1,36 0,84 1,62 Page 36 Q3 2010

37 20 largest equity certificate holders 20 largest EC holders per Number Stake Gjensidige Forsikring ,1% Odin Norge ,7% Odin Norden ,5% Køhlergruppen AS ,6% Coil Investment Group AS ,6% Clipper AS ,4% Frank Mohn AS ,4% Trygve Stangeland ,3% State Street Bank and Trust, U.S.A ,2% Lærdal AS ,0% Brown Brothers Harriman, U.S.A ,9% The Northern Trust, U.K ,8% Nordea Bank Norge ASA ,8% Westco AS ,7% SHB Stockholm Clients Account, Sverige ,7% Trygves Holding AS ,6% Bank of New York, U.S.A ,6% Bjergsted Investering AS ,6% Solvang Shipping AS ,6% Forsand Kommune ,6% Total 20 largest holders ,8% Page 37 Q3 2010

38 Price performance 1996 Q (dividend reinvested) Page 38 Q3 2010

39 SpareBank1 SR-Bank s Risk Profile Moderate risk profile, stable trends in credit quality The group s moderate risk profile is maintained The downturn in the Norwegian economy has been limited, and persistent low interest rates have contributed to a higher activity level and a continued rise in housing prices in the group s market area These trends contribute to maintaining the sound credit quality in the group s portfolio Måling av risikoeksponering er basert på et langsiktig snitt gjennom en konjunktursyklus. Det innebærer større stabilitet i misligholdsestimatene. Det langsiktige snittet på bedriftsmarkedsporteføljen ble besluttet endret med virkning fra årsskiftet. Effekten av dette er innarbeidet i alle data. Tallene inkluderer portefølje overført til Boligkreditt. Lowest low risk, expected losses 0 % - 0,50 % Medium risk, expected losses 0,50-2,00 % High highest risk expected losses more than 2,00 Page 39 Q3 2010

40 Risk profile in retail market portfolio Portfolio quality is very good and potential losses are limited The quality of the retail market portfolio is very good. Credit quality is characterised by the stable development The ongoing good portfolio growth over a lengthy period has not had any impact on the portfolio s credit quality Most of the portfolio is secured by way of mortgages on real estate. Collateral coverage is good, which implies limited potential losses so long as the value of the collateral is not significantly impaired Lowest low risk, expected losses 0 % - 0,50 % Medium risk, expected losses 0,50-2,00 % High highest risk expected losses more than 2,00 Page 40 Q3 2010

41 Risk Profile - Corporate market portfolio The portfolio quality is good, but growth in lending is still low The quality of the corporate market profile is good. The development is relatively stable and the portfolio s risk profile is maintained. Neither the portfolio s average default probability nor expected losses and requirements for risk-adjusted capital have changed significantly during Q3. Portfolio growth is limited. Måling av risikoeksponering er basert på et langsiktig snitt gjennom en konjunktursyklus. Det innebærer større stabilitet i misligholdsestimatene. Det langsiktige snittet på bedriftsmarkedsporteføljen ble besluttet endret med virkning fra årsskiftet. Effekten av dette er innarbeidet i alle data. Lowest low risk, expected losses 0 % - 0,50 % Medium risk, expected losses 0,50-2,00 % High highest risk expected losses more than 2,00 Page 41 Q3 2010

42 The country s largest savings bank 49 offices in Hordaland, Rogaland and Agder Total assets NOK 130 billion Group profit before tax as at : NOK million Main bank for 21 local municipal authorities More than retail market customers corporate customers About proud and capable employees Page 42 Q3 2010

43 SpareBank 1 SR-Bank EiendomsMegler 1 SR-Eiendom AS (100%) SpareBank 1 SR-Finans AS (100%) SpareBank 1 SR-Investering AS (100%) SpareBank 1 SR-Forvaltning ASA (100%)» Housing brokerage» Commercial property brokerage» Project brokerage» Market leder in Rogaland» Property management» Leasing» Special financing» Investments in longterm equity instruments» Asset management SpareBank 1 SR-Fondsforvaltning (100%) SpareBank 1 Boligkreditt AS (33,3%) SpareBank 1 Næringskreditt AS (23,5%)» Management of combination funds» Housing financing BN Bank ASA (23,5%) Bank 1 Oslo AS (19,5%) SpareBank 1 Gruppen AS (19,5%)» ODIN Forvaltning AS» SpareBank 1 Livsforsikring AS» SpareBank 1 Skadeforsikring AS» Argo Securities AS» SpareBank 1 Medlemskort AS» SpareBank 1 Gruppen Finans Holding AS» SpareBank 1 Factoring AS» Actor Fordringsforvaltning AS» Actor Portefølje AS Page 43 Q3 2010

44 SpareBank 1 Alliance structure SpareBank 1 SR-Bank (19,5%) SpareBank 1 SMN (19,5%) SpareBank 1 Nord-Norge (19,5%) Sparebanken Hedmark (12%) Samarbeidende Sparebanker (19,5%) LO (10%) SpareBank 1 Gruppen AS Owned directly by the banks: SpareBank 1 Boligkreditt AS SpareBank 1 Næringskreditt AS EiendomsMegler 1 AS BN Bank ASA Bank 1 Oslo AS SpareBank 1 Skadeforsikring AS (100%) Argo Securities AS (75%) SpareBank 1 Gruppen Finans Holding AS (100%) ODIN Forvaltning AS (100%) SpareBank 1 Livsforsikring AS (100%) SpareBank 1 Medlemskort AS (100%) Alliance cooperation Programme Focus areas» Brand» Technology» Competence» Common processes and use of best practices» Purchasing SpareBank 1 Factoring AS (100%) Actor Fordringsforvaltning AS (100 %) Actor Portefølje AS (100 %) Regional competence centres» Payment services: Trondheim» Credit: Stavanger» Training: Tromsø Actor Verdigjenvinning AS (100 %) Page 44 Q3 2010

45 The recommended bank PURPOSE VALUES SpareBank 1 SR-Bank will add value to the region in which we are a part of Courage to speak your mind, strength to create By being are a part of Able to view things on a long- Able to view things on a longterm perspective Open and sincere By showing Responsibilty and respect A will and ability to improve Page 45 Q3 2010

46 Contact details Headoffice/ Administration: Bjergsted Terrasse 1 Postboks Stavanger Terje Vareberg CEO -- Telephone: terje.vareberg@sr-bank.no Inge Reinertsen CFO -- Telephone: inge.reinertsen@sr-bank.no sparebank1@sr-bank.no Vidar Torsøe Investor relations -- Telephone: vidar.torsoe@sr-bank.no Page 46 Q3 2010