Good results Lower credit losses Good lending growth Reacquisition of SR-Fonds A/S

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2 Good results Lower credit losses Good lending growth Reacquisition of SR-Fonds A/S SR-BANK Group SUMMARY OF RESULT So far in 1995 Same period in 1994 Year 1994 NOK million % NOK million % NOK million % Net interest income Other income Total income Total costs Result before losses and write-downs Losses and write-downs (11) (0.06) Result from ordinary operations Tax cost Profit for the period SR-BANK Group So far in 1995 Same period in 1994 Year 1994 NOK million % NOK million % NOK million % Average assets 19,108 17,475 18,276 Capital adequacy ratio Total assets 19,499 17,883 18,754 Net loans 17,092 15,383 16,491 Deposits from customers 13,903 13,381 13,927 Net equity capital 1,510 1,445 1,563 Return on equity capital* Income per krone of costs** Number of man-years Number of branches * Result after losses and taxes, as a percentage of average equity capital. ** Income per krone of costs is defined as total income, exclusive of net trading gains/losses on current assets, divided by total operating costs. 2nd and 3rd quarter results will be published on 30 August and 25 October respectively. The illustration on the front page, Swords embedded in the mountain, symbolises the unification of Norway after the battle at Hafrsfjord in 872. The sculpture, by Fritz Røed, unveiled by the late King Olav V in 1983, was donated to the Municipality of Stavanger by SR-BANK.

3 Good results High activity levels and good lending growth provided the basis for the satisfactory progress of overall results enjoyed by the SR-BANK Group during the first quarter of Revenues ended up higher than expected, total costs were under control, and credit losses remained very low. The SR-BANK Group earned NOK 118 million before tax for the first quarter of 1995, compared with NOK 60 million for the same period last year. General background The economic situation in Norway is characterised by the country s favourable financial position. Norway s foreign debt will have been paid off during the course of this year. At the same time, growth within the domestic economy is good, but the first signs of increasing inflation are now evident. This has resulted in high rates of interest for government bonds with long maturities, whereas short-term market rates have generally been low. Despite a great deal of turbulence in international foreign exchange markets, the Norwegian krone has remained relatively stable, mainly following the developments of the German mark. Currencies which are important to Norway, such as the Swedish krona and the American dollar, have been subjected to large falls in their values. Commercial and industrial activity levels within the Bank s region of operations continue to be good. Exports from mainland-based industry are still increasing, the building sector is doing well, and the anticipated reduced overall activity within the oil sector has so far not produced any dramatic impact within the local economy. Within the financial industry, competition is getting fiercer in the Bank s region. This situation is characterised by the establishment of several new bank branches locally, and by the high activity levels within the financial brokerage sector. A general tendency towards an increasing propensity to take risks is now noticeable. This has resulted in downward pressure on the Bank s overall margins, and it also means that SR-BANK is having to fight for customers. SR-BANK is well prepared and equipped to handle this competition. Result The SR-BANK Group earned NOK 118 million before tax in the first quarter of 1995, as opposed to NOK 60 million for the corresponding quarter last year. Tax costs have been assessed at NOK 20 million. This is, among other factors, influenced by tax losses carried forward in the parent company and a subsidary. At the end of the first quarter, net interest income totalled NOK 191 million, compared with NOK 178 million for the same period the year before. Net interest income in relation to average assets amounted to 4.0 per cent and 4.08 per cent respectively. In March this year, an amount of NOK 14.2 million was booked as income in the Bank s accounts in respect of dividends earned from shares and PCCs. Other income was better than expected due to higher trading gains, improved earnings from foreign exchange trading and enhanced commission revenues. The main part of the Bank s bond portfolio consists of placements in short-term government securities. Operating costs developed according to plan, representing 2.66 per cent of total assets. An amount of NOK 24 million has been charged to the profit and loss account in respect of credit losses, corporate and retail customers accounting for NOK 19 million and NOK 5 million respectively of total losses. Recoveries relating to previous years confirmed losses amounted to NOK 22 million, of which corporate and retail commitments represented NOK 10 million and NOK 12 million respectively; the total amount has been credited to the Bank s accounts. Consequently, the overall net charge to the profit and loss account ended up at NOK 2 million, representing net losses. At the end of the quarter under review, commitments in default for more than 15 days totalled NOK 836 million. This Norwegian 3-month money market rates Norwegian 10-year state bond rates Interest rate developments in Norway from 1st quarter 1994, to 1st April 1995 showing 3-month money market rates and 10-year state bond rates Deposits from customers Net loans Deposits and loans (NOK million) at the SR-BANK Group from 1st quarter 1994, to 1st April

4 was about the same level as that which applied at the turn of the year, but significantly lower than at the end of the first quarter of 1994, at which time the comparable figure was NOK 1,041 million. Specific loss provisions relating to this portfolio of commitments in default totalled NOK 371 million, or 44%. In addition, specific loss provisioning in respect of commitments not in default amounted to NOK 156 million at the end of the first quarter of Balance Sheet At the end of the first quarter this year, aggregate Group assets stood at NOK 19.5 billion, after an expansion of NOK 0.7 billion or 4 per cent since the beginning of Since the start of the year, gross lending has increased by NOK 600 million to NOK 17.7 billion. This amounted to a 3.5 per cent growth so far this year. Deposits were at the same level as at the turn of the year. During the first quarter, the Bank raised a NOK 300 million 3-year fixed rate bond loan which has been linked to 6 months NIBOR by means of interest rate swaps. In addition, some NOK 600 million of the Group s funding came from the domestic certificate market. Capital adequacy The capital adequacy ratio, not including profit for the quarter under review, amounted to per cent for the Group and per cent for the Bank at the end of the quarter under review. The very slight reduction since the turn of the year is ascribable to the fact that only one third of the amount of non-specific loss provisions has been included in the capital adequacy calculations, and to increased lending volumes. Subsidiaries The subsidiaries are still doing well. The results at the end of the first quarter for Westbroker Finans A/S and SR-Eiendom A/S were NOK 9.2 million and NOK 2.8 million respectively. In march 1995 SR-BANK increased its ownership in the stock broker company 4 SR-Fonds A/S from 40% to 53%. The company s 1st quarter result was NOK 0,6 million. SR-BANK PCCs During the first quarter of 1995, there has been increasing investor interest in SR-BANK PCCs. Since the turn of the year, the number of PCC-holders has risen by 325 to 1,700, the main part thereof involving the Bank s own region. SR-BANK s 20 largest PCCholders at the end of the first quarter are shown below: 1. The Fidelity Funds 648, % 2. Arendal Fossekompani A/S 640, % 3. Sparebanken Midt-Norge 416, % 4. Hafslund Invest A/S 330, % 5. Avanse-fondene 310, % 6. Tveteraas Eiendomsselskap A/S 224, % 7. Sparebanken Vest 223, % 8. Folketrygdfondet 210, % 9. Norgeskreditt A/S 200, % 10. Clipper A/S 180, % 11. Sparebanken Nord-Norge 128, % 12. Sparebanken Sogn og Fjordane 105, % 13. Petter C.G. Sundt 100, % 14. Teknisk Bureau A/S 97, % 15. Oslo Kommunale Pensjonskasse 97, % 16. Lærdal Finans A/S 90, % 17. TS Eiendom A/S 90, % 18. Telespar A/S 80, % 19. Skipsaksjeselskapet Solvang 75, % 20. Mango A/S 72, % TOTAL 4,319, % Future prospects The Board of Directors expect overall results to continue to develop in a positive way during the remainder of the year. However, due to shares and PPC s dividends in the first quarter, and against the background of increasing competition, subsequent quarterly results will not match the level reached for the first three months of Stavanger, 24 April, 1995 The Board of Directors of Sparebanken Rogaland Operating result before and after losses and write-downs for the SR-BANK Group from 1st quarter 1994, to 1st April 1995 (NOK million) Operating result after losses and write-downs Operating result before losses and write-downs July 94 Sept. Nov. Jan. 95 April PCC price movements from July 1994, to April 1995 of the PCC s.

5 SR-BANK The SR-BANK Group So far Same period Year So far Same period Year (NOK million) in 1995 in in 1995 in Interest income , ,459 Interest costs Net interest income Trading gains/current assets 11 (24) (79) 11 (24) (79) Commission income Other income Total other operating income Total income Personnel costs Other operating costs Total operating costs Operating result before losses and write-downs Write-downs and losses/gains on fixed assets 0 0 (5) (0) (1) (1) Net losses 3 12 (3) 2 12 (10) Result from ordinary operations Tax cost Profit for the period SR-BANK The SR-BANK Group (NOK million) Assets Cash in hand and deposits with the Postal Giro and Bank of Norway Securities 1,115 1,204 1,064 1,118 1,204 1,064 Deposits with and loans to other financial institutions Gross lending 16,356 14,731 15,754 17,741 16,099 17,146 Specific loss provisions (504) (539) (509) (516) (558) (522) Non-specific loss provisions (125) (150) (125) (133) (158) (133) Net lending 15,727 14,042 15,120 17,092 15,383 16,491 Other claims Other current assets Fixed assets Total assets 18,350 16,791 17,581 19,499 17,883 18,754 Liabilities and equity capital Deposits from other financial institutions 1,137 1,327 1,222 1,199 1,321 1,227 Deposits from customers 12,987 12,410 12,908 13,903 13,381 13,927 Loans raised through the issuance of securities 1,933 1,033 1,448 1,933 1,033 1,448 Other liabilities Subordinated loan capital Equity capital as at 1 January 1, ,105 1, ,176 Profit for the period Total liabilities and equity capital 18,350 16,791 17,581 19,499 17,883 18,754

6 SR-BANK The SR-BANK Group (Amounts in NOK million) Total loans: Loans in default for days Loans in default for days Loans in default for days Loans in default in excess of 90 days Gross loans in default Specific loss provisions , Net loans in default Extent of provisioning raised against loans 46% 38% 47% 44% 37% 46% Of which non-performing loans account for (Amount in NOK million) Loans not in default, but against which provisions have been made Specific loss provisions Net loans, against which provisions have been made Extent of provisions made against loans % % % % % % The total amount of commitments in respect of one customer is deemed to be in default, and is included in the Bank's summaries of commitments in default, when instalments or interest remain unpaid 15 days after due date, or in cases where credit facilities have remained overdrawn for 15 days or longer. Commitments which have been in default for more than 60 days are subjected to loss assessment. 6 Loans in default, against which provisions have been made Loans not in default, but against which provisions have been made Loan loss provisions SR-BANK The SR-BANK Group (Amounts in NOK million) Specific loss provisions Specific provisions against losses on loans and guarantees as at Confirmed losses during the period in respect of loans and guarantees, where specific provisions have previously been made (11) (22) (71) (11) (23) (74) +/ Period s specific provisions against losses on loans and guarantees 8 (1) 26 7 (1) 23 Specific provisions against losses and guarantees as at General loss provisions General provisions against losses on loans and guarantees as at / Period s general provisions against losses on loans and guarantees 0 0 (25) 0 0 (25) General provisions against losses on loans and guarantees as at Loans and losses during the first quarter of 1995 (Amounts in NOK million) Loans and Gross Recoveries Net Percentage The SR-BANK Group guarantees losses losses of losses Corporate 7, % Retail 10, (7) (0.06%) Total 18, %

7 Statement of Income figures from the quarterly accounts (Amounts in NOK million) 1. Q. 4. Q. 3. Q. 2. Q. 1. Q. 4. Q. 3. Q. 2. Q. The SR-BANK Group Net interest income Other operating income (37) Total income Total operating costs Operating result before losses and write-downs Losses and write-downs 2 1 (29) Operating result Tax cost Profit for the period Balance sheet figures from the quarterly accounts (Amounts in NOK million) 1. Q. 4. Q. 3. Q. 2. Q. 1. Q. 4. Q. 3. Q. 2. Q. The SR-BANK Group Deposits from customers 13,903 13,927 13,448 13,746 13,381 13,238 11,871 11,613 Accrued interest on deposits Gross loans to customers 17,741 17,146 16,964 16,271 16,098 15,153 13,741 13,583 Loss provisions Net loans to customers 17,092 16,491 16,297 15,575 15,383 14,414 13,013 12,806 Accrued interest on loans Total assets Average assets 19,499 19,108 18,754 18,276 18,994 18,110 18,421 17,853 17,883 17,475 16,395 15,280 15,465 15,229 15,182 15,160 Commitments in default and non-performing loans (Amounts in NOK million) 1. Q. 4. Q. 3. Q. 2. Q. 1. Q. 4. Q. 3. Q. 2. Q. The SR-BANK Group Gross commitments in default Specific loss provisions 836 (371) 829 (379) 892 (355) 933 (382) (384) (400) (457) (469) Net commitments in default Gross non-performing loans Net non-performing loans Capital adequacy ratio (Amounts in NOK million) 1. Q. 4. Q. 3. Q. 2. Q. 1. Q. 4. Q. 3. Q. 2. Q. The SR-BANK Group The Saving Bank s Fund (111) (182) PCC capital Dividend Adjustment Fund/Donation Fund Core capital 1,142 1,142 1, Supplementary capital Non-specific loss provisions Reduction of equity capital 44 (29) 88 (29) 88 (18) 105 (19) 105 (12) 158 (13) 180 (14) 180 (23) Net equity capital 1,510 1,563 1,485 1,431 1,445 1,471 1, Total calculation basis 12,536 12,381 12,162 11,868 11,540 10,804 11,543 10,924 Capital adequacy ratio 12.05% 12.62% 12.21% 12.05% 12.52% 13.60% 10.35% 8.71% In the case of the capital adequacy ratio for the first quarter of 1995, the applicable share of the Group result has not been included in the calculations, 7

8 BLAD SR-BANK P.O.Box 218, 4001 Stavanger, Norway Telephone: Fax: SAUDA ETNE ØLEN SVEIO VINDAFJORD SULDAL Haugesund TYSVÆR UTSIRA KARMØY BOKN FINNØY RENNESØY HJELMELAND KVITSØY RANDABERG Stavanger STRAND Jørpeland FORSAND SOLA Sandnes SIRDAL GJESDAL KLEPP TIME BJERKREIM NORWAY GREAT BRITAIN DENMARK SWEDEN GERMANY THE NETHERLANDS BELGIUM HÅ Egersund EIGERSUND SOKNDAL LUND FLEKKEFJORD o. g. rasmussen a.s AS Verbum Grafiske PARTNER PRINT AS Sparebanken Rogaland should always be the leading bank in Rogaland and its neighbouring municipalities a position based on trust, a solid equity capital base and on the Bank's strong local roots and commitment.