PRESS RELEASE Highlights

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1 PRESS RELEASE 1999 Highlights Well run banking operation and bull market produce unprecedented earnings Operating profit of NOK 598 million before tax SpareBank 1 SR-Bank is the district's savings bank 12% and NOK million in increased private deposits NOK 410 million in sales of securities products 15% increase in lending NOK 120 million in capital gain Cost percentage of % return on equity capital after tax NOK in profit on primary capital certificates The Board proposes to pay NOK 19 in dividends Strong alliance strengthens distribution and product development x Acquisition of 51% of First Securities x Acquisition of Vår Bank og Forsikring x EiendomsMegler 1 becomes nationwide chain Earnings and growth The SpareBank 1 SR-Bank group's profit before loss and write-downs was NOK 654 million, which is NOK 205 million more than last year's profit of NOK 449 million. Net losses of NOK 62 million and unspecified loss allocations in the amount of NOK 40 million, together with gains from capital assets worth NOK 46 million, resulted in a group profit before tax of NOK 598 million. Tax costs are estimated at NOK 147 million, which gives a profit for the year of NOK 451 million. Total assets increased in 1999 by 17% to NOK 36.4 billion. At the end of the year, the group's equity and subordinated loan capital was NOK 3,065 million and the capital adequacy ratio 12,12% turned into a good year for SpareBank 1 SR-Bank. The profit from the ordinary banking operation indicates an efficient bank as regards sales and operations. Combined with stock market gains and good management of the bank's securities, this produced an unprecedented profit for SpareBank 1 SR-Bank. The result also reflects an organization with products, ser v- ices and customer relations adapted to the market for private and business customers. The Board is very satisfied with the group's development and profit in A 15% growth in lending resulted in increased market shares in a region with a continued high level of activity and the 10% growth in deposits and new growth in alternative forms of savings indicate customers that have solid economies. Total operating income (excluding gains from securities) increased by 20% and cost-effectiveness was maintained at the same level. Gross default remains stable. Due to the improved balance, the group has increased the unspecified loss allocations by NOK 40 million. Market surveys confirm the bank's strong position as the leading bank in the region. 1

2 Profit performance The SpareBank 1 SR-Bank group's profit performance was very positive for all of The development within both the private and the business market was better than expected. This has to do with the fact that the there was considerably less of a decline in business activity than first expected as well as better framework conditions through lower interest rates. The positive development also confirms that the group's strategy with a market-oriented organ i- zation with products and services adapted to the customer is the right one. The group's profit of NOK 654 million before losses and write-downs has been achieved as a result of good growth in interest income and other income, a high level of cost-effectiveness and few losses. Net interest income for the group rose by NOK 100 million to NOK 895 million, an increase of 12%. NOK 61 million of net interest income comes from Westbroker Finans A/S. Compared with the average total assets, net interest income in 1999 constituted 2.63% as compared with 2.73% in The fall in the interest margin reflects most of all the competition in the market. The interest margin is also affected by the growth in credit to major customer commitments. The group's commission income increased in 1999 to NOK 231 million. The underlying growth within payment services is in the order of 25%. However, price reductions through the programs for preferred customers, which includes giving the full-service customers free use of electronic payment services within certain limits, reduced the growth for commission income to 14%. The good economy and the development on the stock exchange increased savings in securities and insurance over the last half year. The group's total sales of alternative savings products were NOK 800 million. Sales of non-life insurance increased and provided commission income in the amount of NOK 10 million last year. At the end of the year the bank's holding of shares, primary capital certificates and securities were posted at NOK 269 million. The return of 50.8% is 5.3 percent better than the total gain on the Oslo Stock Exchange and resulted in NOK 96 million in capital gains last year. The holding of certificates and bonds valued at NOK 1,902 million, which covers the bank's liquidity requirements, provided capital gains in the amount of NOK 1.4 million. Currency trading, for customers and the bank, gave a gain of NOK 25 million in NOK 50 million of other operating income comes from the sales of houses and commercial buildings through EiendomsMegler 1 Rogaland A/S. This is an increase of 41% compared with Total other income accounted for 30% of the group's income compared with 18% in Operating costs for the group in 1999 amounted to NOK 622 million, an increase of NOK 95 million compared with Measured in relation to the bank's total assets, this constituted 1.83%, the same ratio as for last year. Measured in relation to total operating income, the costs amounted to 49%. The nominal increase in costs is mainly a result of wage settlements and expertise, technology and process costs. Costs, including social security costs, associated with profit-oriented bonuses have increased by NOK 18 million to NOK 34 million for the group. IT costs have increased by NOK 15 million due to increased transaction volumes. Costs associated with the process work is estimated to be NOK 10 million. Investments in new processes and technology are necessary in order to maintain the quality of the group's services and will provide additional capacity. The current level of cost-effectiveness will be maintained. 2

3 Default trends are still satisfactory. Net losses of NOK 102 million include an increase in unspecified loss allocations of NOK 40 million. During the year, default over 90 days increased by NOK 36 million to NOK 275 million. The real estate agencies in the SpareBank 1 alliance have established a nationwide chain from 1999 under the name EiendomsMegler 1. SR-Eiendom A/S has changed its name to Eie n- domsmegler 1 Rogaland A/S in order to strengthen the brand name. EiendomsMegler 1 Rogaland A/S is Rogaland's largest real estate agency in both the residential and commercial market and had a good year with more than 2000 transactions at a total value of more than NOK 2,000 million. Operating income increased to NOK 54 million, resulting in a profit before tax of NOK 9.8 million. Westbroker Finans AS is the leading finance company in Rogaland and had total assets of NOK 2,450 million at the end of the year. The company increased its total assets by NOK 77 million, an increase of 3.3%. The main products are leasing, special financing, loans with mortgage in real property and vehicles, and loan brokering. The company offers products to the business, public and private sectors. The company achieved a profit before tax of NOK 37 million, a return on equity capital of 20.4%. Balance sheet The group's total assets increased by 16.5% to NOK 36,400 million in 1999, while the increase for the bank was 18.9% to NOK 34,800 million. Over the course of the year, lending to the private market increased by NOK 3,411 million (19%) and to businesses and the public sector by NOK 846 million (7,6%). This means an annual growth of 14.9% in the group's lending. Deposits from customers in 1999 have increased by NOK 1,730 million divided between NOK 1,136 million for private customers (11.6%) and NOK 594 million for businesses (7.7%). This is equal to an overall annual growth of 10%. The group's foreign exchange activities are conducted according to a policy with limited positions on its own books. The holding of bonds is adjusted to the authorities' requirements regarding liquid reserves. The interest risk for the bank's bond portfolio is reported to the Board on a monthly basis. This risk has been moderate throughout the past year. Investments in equity capital securities are at a moderate level in relation to the bank's balance sheet figures. Stavanger, 27 January 2000 The Board of Directors of Sparebanken Rogaland 3

4 Highlights HIGHLIGHTS SpareBank 1 SR-Bank Group So far in Corresponding in All of MAIN FIGURES NOK mill % NOK mill % NOK mill % Net interest income 895 2, , ,65 Net other operating income 381 1, , ,03 Total operating income , , ,67 Total operating costs 622 1, , ,96 Result before losses and write-downs 654 1, , ,72 Losses and write-downs 56 0, , ,02 Result of ordinary activities 598 1, , ,74 Taxes 147 0, , ,48 Profit 451 1, , ,26 Key figures SpareBank 1 SR-Bank Group So far in Corresponding in All of Average total assets Capital adequacy ratio 12,12 11,49 15,08 Core capital ratio 8,63 8,37 9,55 Total assets Net loans to customers Deposits from customers Net equity and subordinated loan capital Return on equity * 21,8 14,9 19,1 Income per cost krone ** 1,86 1,92 1,76 Cost per income krone 0,54 0,52 0,57 Number of man-years Number of offices Market price at the close of the quarter Primary capital certificate ratio *** 64,8 66,6 68,6 Profit per pimary capital certificate **** 40,4 25,4 30,2 Book equity per primary capital certificate ***** * Profit as a percentage of average equity ** Total income excluding net exchange and capital gains divided by total operating costs. *** Primary-capital-certificate owners' share of the bank's equity. **** Profit multiplied by the primary capital certificate ratio and divided by the number of primary capital certificates ***** Primary-capital-certificate capital plus the dividend equalization reserve divided by the number of primary capital certificates Regnskap kl. 10:31:50

5 Main Figures from the Profit and Loss Accounts and balance sheet SpareBank 1 SR-Bank PROFIT AND LOSS ACCOUNT SpareBank 1 SR-Bank Group (Amounts in NOK million) Interest income Interest costs Net interest income Dividends Income from ownership interests Commission income Commission costs Net exchange and capital gains Other operating income Net other operating income Total operating income Wages and general administration costs Other operating costs Total operating costs Profit before losses and write-downs Loss / gain financial fixed assets Loss on loans and guarantees Result of ordinary activities Taxes Profit ,2 25,4 40,4 Profit per primary capital certificate 40,4 25,4 30,2 SpareBank 1 SR-Bank BALANCE SHEET SpareBank 1 SR-Bank Group 31 Dec 30 June 30 June (Amounts in NOK million) Assets Cash and claims on central banks Claims on credit institutions Gross loans to customers Specified loss provisions Unspecified loss provisions Net loans to customers Acquired assets Securities Fixed assets Other assets Total assets Liabilities and equity Debt to credit institutions Deposits from customers Debt established on issue of securities Other debt Subordinated loan capital Equity Profit Total liabilities and equity Off-balance-sheet: Contingent liabilities (guarantees) Regnskap kl. 10:28:41

6 Loans for which loss provisions have been made SpareBank 1 SR-Bank SpareBank 1 SR-Bank Group 31 Dec 30 Sept 30 Sept 30 June 30 June 31 Dec (Amounts in NOK million) Non-performing loans for which Gross non-performing loans Specified loss provisions Net non-performing loans % 40% 47% Loan loss provision ratio 44% 36% 47% Of which gross non-accrual loans Performing loans for which loss provisions have been made Performing loans for which loss pr. have be Specified loss provisions Net loans for which loss pr. have been m % 35% 38% Loan loss provision ratio 38% 34% 35% Total loans for a customer are regarded as non-performing and included in the bank's overviews of non-performing loans when due instalments or interest payments have not been paid within 90 days after the due date or a line of credit is overdrawn for 90 days or more. The limit for regarding a loan as non-performing has been changed from 30 to 90 days. Loss provisions SpareBank 1 SR-Bank SpareBank 1 SR-Bank Group (Amounts in NOK million) Specified provisions to cover loss on loans and guarantees, January and guarantees for which specified loss provisions have been made previously /- The period's specified provisions for covering loss on loans and guarantees Specified provisions for covering Unspecified provisions to cover loss on loans and guarantees, January /- the period's unspecified provisions for covering loss on loans and guarantees Unspecified provisions for covering loss on loans and guarantees Loans and losses in 1999 Recoveries of SpareBank 1 SR-Bank Group Loans and Gross previous loan Net Loss (Amounts in NOK million) guarantees loss loss provision loss ratio Corporate ,47% Private customers ERR ,00% Transferred to unspecified Total ,30% Regnskap kl. 10:28:42