PRESS RELEASE Third quarter report and accounts 2007: A very good result for SpareBank 1 Nord-Norge Main features (amounts and percentages in brackets refer to 2006): A very good result o Pre-tax operating result: NOK 643 million (NOK 601 million) o After-tax return on equity capital: 17.9 per cent (19.5%) o Earnings per PCC (Primary Capital Certificate) so far this year: NOK 7.13 (NOK 7.04) Aggregate revenue generation from financial investments: NOK 137 million (NOK 108 million) o A very good result for SpareBank 1 Gruppen AS. The Bank s share of the company s result amounts to NOK 170 million (NOK 110 million). o Unrealised losses on the Bank s shareholding in Hurtigruten ASA total NOK 51 million. o Unrealised losses on interest-bearing securities total NOK 36 million. Core banking operations doing very well Overall cost ratio: 52.1 per cent (53.0%) Low losses on loans: Net losses of NOK 9 million (a gain of NOK 11 million Lending growth during the last 12 months (including loans transferred to SpareBank 1 Boligkreditt): 11.4 per cent (10.6%) The accounts show 7.3 per cent lending growth during the last 12 months. Deposit growth during the last 12 months: 9.0 per cent (7.2%) Deposit coverage ratio: 61.9 per cent (60.9%) SpareBank 1 Nord-Norge s pre-tax operating result for the first 9 months of 2007 totalled NOK 643 million profit, up by NOK 42 million on the corresponding interim period last year. We are very pleased with the result, which shows that we have been able to make the most of one of the best general economic growth periods that Norway has ever experienced, says Hans Olav Karde, Chief Executive Officer of SpareBank 1 Nord-Norge. SpareBank 1 Nord-Norge s results reflect that activity levels within the Bank s region remain high. Deposits were up by 9 per cent during the last 12 months, lending by 11.4 per cent. The results which are now presented show a general growth in revenue generation from all our market areas. It is just not our traditional banking operations which are doing well but also the sale of products such as insurance and various types of savings products, explains Karde. The accounts are affected by unrealised losses within the securities market. This involves write-down of the Bank s shares in Hurtigruten ASA and the bond portfolio, the latter due to the turbulence in international financial markets, continues Karde.
The financial turbulence has also made it more expensive to raise funding loans abroad. This has also had an impact on SpareBank 1 Nord-Norge We have shown strength and competitiveness within all the Bank s market areas, concludes Karde. SpareBank 1 Nord-Norge continues to receive a good contribution to its overall profits from SpareBank 1 Gruppen AS, owned by the Bank and the other member banks in the SpareBank 1 alliance. The Bank s share of SpareBank 1 Gruppen s result for the first 9 months amounted to NOK 170 million, up by NOK 60 million on the corresponding interim period last year. The main Board of Directors is very pleased with the result for the first 9 months of 2007. Every effort will continue to be made in order to further boost the Group s revenue generation and to achieve more cost-effective operations. More details relating to the Group s operations can be found in the attached reports. Any questions in this connection should be directed to Hans Olav Karde, Chief Executive Officer, telephone number: 77 62 24 01, or Oddmund Aasen, Deputy Chief Executive Officer, telephone number: 77 62 20 94. We would also refer to the Bank s home page: www.snn.co Some brief background information on SpareBank 1 Nord-Norge SpareBank 1 Nord-Norge is a leading provider of financial products and services to the retail banking- and corporate markets and to the public sector in the region. The Bank has an aggregate customer base of some 245,000 retail banking customers, about 40,500 corporate customers, including public sector entities, clubs and associations, and approximately 98,000 insurance product customers. The Bank has 83 branches in Finnmark, Troms, Nordland and on Svalbard (Spitzbergen), and a representative office in Murmansk, Russia. Tromso, 24 October 2007 For and on behalf of SpareBank 1 Nord-Norge Kjell Kolbeinsen Director, Information and Public Relations
SpareBank 1 Nord-Norge 3 rd quarter report and accounts 2007 The Group Main features (amounts and percentages in brackets refer to same period in 2006): A very good result o Pre-tax operating result totalled NOK 643 million (NOK 601 million). o After-tax return on equity capital amounted to 17.9 per cent (15.9%). o Earnings per Primary Capital Certificate (PCC) at 3 rd quarter NOK 7.13 (NOK 7.04). Aggregate revenue generation from financial investments amounted to NOK 137 million (NOK 108 millon). o A very good result for SpareBank 1 Gruppen AS, the Bank s share of which amounted to NOK 170 million (NOK 110 million). o Urealised losses on the Bank s shareholding in Hurtigruten ASA total NOK 51 million. o Urealised losses on interest-bearing portfolio total NOK 36 million. Core banking operations did very well. The overall cost ratio ended up at 52.1 per cent (53.0%). Low losses on loans: Net losses of NOK 9 million (a NOK 11 million income at the end of the third quarter of 2006). Lending growth during the last 12 months (including loans transferred to SpareBank 1 Boligkreditt): 11.4% (10.6%). The accounts show 7.3 per cent lending growth for the last 12 months. Deposit growth during the last 12 months amounted to 9.0 per cent (7.2%). Overall deposit coverage ratio: 61.9 per cent (60.9%). Introductory comments Group quarterly accounts have been prepared in accordance with the International Financial Reporting Standards (IFRS), including IAS 34 relating to interim reporting. The Parent Bank s quarterly accounts have also been prepared in accordance with IFRS, following the decision to allow banks to report their company accounts too according to IFRS with effect from the first quarter of 2007. Figures for the third quarter of 2006 have been restated in relation to previously reported figures in order for the information to be comparable. In the same way, figures from the cash flow statement, notes to the accounts and key financial analysis have been restated for the third quarter of 2006. The transition to IFRS in the Parent Bank s accounts involves the use of different principles for the inclusion of subsidiaries and joint venture operations in the two accounts. In IFRS-related Group accounts, the equity method of accounting is applied, results from the joint venture operations being incorporated in the Group s profit and loss account according to the equity stakes in question, and allowing for the value of the equity stakes stated in the Balance Sheet. Subsidiaries results are consolidated into the Group accounts. In accordance with IFRS only the cost method of accounting is to be used in company accounts. This means that the book values of subsidiaries and joint venture operations in the Parent Bank s Balance Sheet are based on historic cost. In the Parent Bank s Profit and Loss Account, only the annual dividend payments received from these companies are shown. The effects of the transition to IFRS in the Parent Bank s accounts are shown in direct relation to the equity capital as at 01.01.2007. Results The Sparebanken Nord-Norge Group s pre-tax operating result amounted to NOK 643 million for the first 9 months of 2007. This is equivalent to 1.5 per cent of average assets. The corresponding figures for the same interim period last year were NOK 601 million and 1.6 per cent respectively. The after-tax return on equity capital for the Group as a whole finished up at 17.9 per cent, with Parent Bank earnings per PCC amounting to NOK 7.13. The taxation cost has been estimated at NOK 145 million. In comparison with the end of the third quarter of 2006, the NOK 42 million improvement in the pre-tax result is primarily ascribable to the following factors: Increase in net interest income Increase in net commission income Increase in revenue generation from financial investments Reduction in other (non-interest) income Increase in costs Increase in net losses NOK 67 million NOK 23 million NOK 29 million - NOK 12 million - NOK 45 million - NOK 20 million
Net interest income and average interest margin Group net interest income for the first 9 months of 2007 was up NOK 67 million on the same interim period last year. In relation to average assets, this amounted to 2.06 per cent, after a shrinkage of 0.10 percentage points during the last 12 months. This is due to a continued situation of strong competition within the Bank s market area, coupled with a positive development in the level of credit risk in the market. It should however be mentioned that the net interest margin as a percentage of average assets has increased somewhat during 2007. Net income from banking services Net commission income totalled NOK 293 million for the first 9 months of 2007, up from NOK 270 million for the corresponding interim period in 2006. Income from financial investments The net result from financial investments totalled NOK 137 million at the end of the third quarter of 2007, as against NOK 108 million for the same interim period last year. The income is made up as follows: Dividends from shares NOK 11 million Bank s share of SpareBank 1 Gruppen s result NOK 170 million Bank s share of SpareBank 1 Boligkreditt NOK 1 million Net losses on securities - NOK 72 million Net gains from foreign exchange and financial derivatives NOK 27 million Of the net losses of NOK 72 million on securities, an amount of NOK 51 million is accounted for by unrealised losses on the Bank s shareholding in the Hurtigruten ASA. In addition, unrealised losses of NOK 36 million on the Bank s portfolio of interest-bearing securities have been charged to the profit and loss account. The latter is mainly due to changes in the assessed market value of the interestbearing portfolio as a result of the turbulence in the credit markets during the third quarter of 2007. Operating costs At the end of the third quarter of 2007, ordinary operating costs totalled NOK 709 million, up by NOK 45 million on the same interim period in 2006. In relation to average assets, this amounted to 1.7 per cent, after a shrinkage of 0.1 percentage points compared with the same interim period last year. At the end of the third quarter of 2007, the overall cost ratio for the Group as a whole amounted to 52.1 per cent, down from 53.0 per cent at the same time in 2006. As at 30.09.2007, Group manning levels were equivalent to 804 man-years, of which the Parent Bank accounted for 721. Net credit losses and commitments in default At the end of the third quarter of 2007, net loan losses for the Group as a whole amounted to NOK 9 million. The corresponding figure at the same time in 2006 was a net gain of NOK 11 million. The increase in credit losses shown in the accounts is ascribable to a higher level of confirmed losses. Individual and collective write-downs were reduced in comparison with the second quarter of 2007. At the end of the quarter currently under review, net commitments in default and bad and doubtful commitments amounted to NOK 406 million, equivalent to 0.83 per cent of gross lending, after a reduction of NOK 158 million since the beginning of the year. Efforts to reduce the level of commitments in default as well as bad and doubtful commitments are proceeding well. In the Board of Directors opinion, the quality of the Bank s lending portfolio remains good. Tax The Group s tax cost has been estimated at NOK 145 million as at 30.09.2007. This amounts to 22.6 per cent of the Group s result before tax. In the Parent Bank s accounts, the basis for tax has been reduced by permanent differences, coupled with effects of the exemption model. Estimated wealth tax has to be added to the above figure. Total assets At the end of the third quarter of 2007, Group aggregate assets stood at NOK 59,567 million. During the last 12 months, the balance sheet expanded by NOK 7,010 million or 13.3 per cent. Loans Group gross lending to customers totalled NOK 48,958 million at the end of the second quarter of 2007. Compared to the same interim period in 2006, this involved an increase of 7.3 per cent. Retail banking loans expanded by 6.2 per cent, the corporate- and public sectors by 9.2 per cent. At the end of the quarter, house mortgage loans amounting to NOK 1,871 million had been transferred to SpareBank 1 Boligkreditt AS. Lending growth including these loans was 11.4 per cent. The share of total loans made to retail banking customers was a little higher than 12 months ago, accounting for 64.7 per cent of aggregate lending at the end of the third quarter of 2007. The main Board of Directors would still like to see increased lending growth. It should be pointed out in this connection that in the case of all new loans, particular
importance is attached to customers ability to service their outstanding commitments, and to a satisfactory level of collateral assets and/or other security provided, in order to keep the overall credit risk at an acceptable level. Deposits from customers, savings and placements For the Group as a whole, deposits from customers amounted to NOK 30,298 million as at 30.09.2007. During the last 12 months, deposits rose by NOK 2,504 million or 9.0 per cent. Deposits from the retail banking area increased by 8.7 per cent, the corporate- and public sectors by 16.7 per cent. Basel II New capital adequacy rules and regulations (Basel II EU s new directive for capital adequacy) were introduced in Norway with effect from 1 January 2007. The new set of rules and regulations is based on a proposal for a new standard for capital adequacy calculations from Bank for International Settlements (BIS). SpareBank 1 Nord-Norge has applied to and received permission from The Financial Supervisory Authority of Norway to use internal measuring methods (Internal Rating Based Approach Foundation) for credit risk from 1 January 2007. From 2007, therefore, the statutory minimum requirement for capital adequacy relating to credit risk will be based on the Bank s internal risk assessment. This will make the statutory minimum requirement for capital adequacy more risk-sensitive, which means that the capital requirement will to a larger extent correspond to the risk contained in the underlying portfolios. The use of internal measuring methods involves comprehensive demands as far as the Bank s organisation, competence, risk models and risk management systems are concerned. As a result of transitional rules relating to the new directive mentioned above, IRB-banks will still not experience the full impact of the reduced regulatory capital requirements until 2010. Equity capital and capital adequacy As at 30.09.2007, the capital adequacy ratio was 9.22 per cent (9.33 per cent) of the statutory weighted asset calculation basis. The calculations in 2007 have been made in accordance with the transitional rules and regulations introduced by The Financial Supervisory Authority of Norway. The core capital coverage ratio was 8.04 per cent (8.30 per cent) at the end of the quarter. At the end of the third quarter of 2007, the Parent Bank s capital adequacy ratio amounted to 9.46 per cent (10.02 %), the core capital ratio 8.15 per cent (8.78 %). The shrinkage in the Parent Bank s capital adequacy ratio since the beginning of the year is attributable to IFR-effects having been shown direct in relation to the equity capital. Changes in the Bank s equity capital are apparent from the quarterly accounts. If 50 per cent of the result so far this year were to be factored into the computations, the Parent Bank s and Group s capital adequacy ratios at the end of the third quarter of 2007 would have been 9.97 per cent and 9.90 per cent respectively. The Bank s PCC-holders The Bank has a NOK 841 million PCC-capital, made up of 16,813,952 certificates. As at 30.6.2007, the Bank had 8,369 PCC-holders, involving an increase of 417 investors during the last 12 months. The number of PCC-holders from Nord-Norge was 2,089 at the end of the quarter. Notes to the Interim Accounts include a list of the Bank s 20 largest PCC-holders. Concluding remarks The main Board of Directors is very pleased with the result for the third quarter of 2007. Efforts will continue to be made in order to increase overall Group revenue generation further and to make operations more cost-effective. Every effort will be made to achieve this through increased riskfree revenue generation, through the sale of other products and services and higher growth within the lending area, coupled with good quality and cost control. Tromso, 23 October 2007 The main Board of Directors of SPAREBANKEN NORD-NORGE
Key figures group Amounts in NOK million and in % of average assets 30.09.07 % 30.09.06 % 31.12.06 % From the profit and loss account Net interest income 882 2.06 % 815 2.16 % 1,097 2.14 % Net fee-, commision and other operating income 342 0.80 % 331 0.88 % 442 0.86 % Net income from financial investments 137 0.32 % 108 0.29 % 301 0.59 % Total income 1,361 3.17 % 1,254 3.32 % 1,840 3.59 % Costs 709 1.65 % 664 1.76 % 911 1.78 % Profit before losses 652 1.52 % 590 1.56 % 929 1.81 % Losses 9 0.02 % -11-0.03 % -43-0.08 % Profit before tax and minority interests 643 1.50 % 601 1.59 % 972 1.90 % Tax 145 0.34 % 158 0.42 % 205 0.40 % Minority interests 3 0.01 % 4 0.01 % 5 0.01 % Profit for the period 495 1.15 % 439 1.16 % 762 1.49 % Profitability Return on equity capital 1 17.9 % 19.5 % 24.6 % Interest margin 2 2.06 % 2.2 % 2.1 % Cost/income 3 52.1 % 53.0 % 49.5 % Balance sheet Figures Loans and advances to customers 48,958 45,644 46,226 Loans and advances to customers including SparerBank 1 Boligkreditt 51,125 45,644 46,245 Deposits from customers 30,286 27,782 27,784 Deposits as a percentage of gross lending 4 61.9 % 60.9 % 60.1 % Growth in loans and advances to customers past 12 months 7.3 % 10.6 % 11.0 % Growth in loans and advances to customers including SpareBank 1 Boligkreditt 11.4 % 10.6 % 11.1 % Growth in deposits from customers past 12 months 9.0 % 7.2 % 9.6 % Average assets 5 57,176 50,297 51,230 Total assets 59,567 52,557 54,962 Losses on loans and commitments in default Losses on loans to customers as a percentage of gross loans 0.02 % -0.03 % -0.09 % Commitments in default as a percentage of gross loans 0.32 % 0.47 % 0.52 % Commitments at risk of loss as a percentage of gross loans 0.84 % 1.34 % 1.12 % Net commitments in default and at risk of loss as a percentage of gross loans 0.83 % 1.30 % 1.22 % Solidity Capital adequacy 6 9.2 % 9.3 % 10.4 % Core capital adequacy 7 8.0 % 8.3 % 9.8 % Core capital 2,958 2,945 3,478 Net subordinated capital 3,393 3,309 3,688 Risk-weighted assets base for capital 36,783 35,473 35,594 Branches and manyears Branches 81 85 85 Manyear 804 764 767 Primary Capital Certificates 30.09.07 2006 2005 2004 2003 2002 PCC ratio overall 8 32.50 % 35.60 % 39.01 % 41.71 % 43.94 % 45.54 % Quoted/market price NONG as at 132.50 149.50 157.00 276.00 184.00 127.50 Quotation value 9 2,228 2,367 2,486 1,821 1,214 841 Equity capital per PCC (NOK) 10 66.20 63.73 60.07 58.49 149.01 149.01 Profit per PCC (NOK) 11 7.13 14.03 11.64 24.04 14.01 4.35 Cash dividend per PCC to be paid 12 10.00 10.00 19.00 14.00 10.00 P/E (Price/Earnings) 13 15.1 10.7 13.5 11.5 13.1 12.4 P/V (Price/Book Value) 14 2.0 2.3 2.6 4.7 1.2 0.9 1 Profit for the period as a percentage of average total equity, calculated as average amount of quarterly equity and per 01.01. and 31.12. 2 Total interest margin as a percentage of average total assets. 3 Total costs as a percentage of total net income. 4 Deposits from customers as a percentage of gross lending. 5 Average assets are calculated as average assets each quarter and at 01.01. and 31.12. 6 Net subordinated capital as a percentage of calculated risk-weighted balance 7 Core capital as a percentage of calculated risk-weighted balance 8 PCC holders share of equity capital as at 01.01. 9 Quoted price on Oslo Stock Exchange multiplied by numbers of PCC's outstanding 10 PCC-capital + Premium Fund + Dividend Equalisation Fund, divided by number of PCC's outstanding 11 Profit for the period (parent bank) multiplied by PCC holders' share of the equity capital as at 01.01., in relation to total number of PCC's. 12 Cash dividend per PCC for the accounting year. Resolution made by Main Borad of Directors 13 Market price on Oslo Stock Exchange at end of period, divided by result for the period per PCC. 14 Market price on Oslo Stock Exchange at end of period, divided by book value of equity capital per PCC. Side 1 av 18
Profit and loss account Parent Bank Group (Amounts in NOK million) 31.12.06 3rd q.06 3rd q.07 30.09.06 30.09.07 30.09.07 30.09.06 3rd q.07 3rd q.06 31.12.06 2,193 567 840 1,568 2,274 Interest income 2,297 1,582 847 573 2,215 1,123 291 541 770 1,418 Interest costs 1,415 767 540 290 1,118 1,070 276 299 798 856 Net interest income 882 815 307 283 1,097 386 101 112 288 316 Fee- and commission income 342 319 122 102 427 69 16 15 52 49 Fee- and commission costs 49 49 15 15 65 8 1 0 6 1 Other operating income 49 61 15 14 80 325 86 97 242 268 Net fee-,commission and other operating income 342 331 122 101 442 31 3 0 17 11 Dividend 11 17 1 3 17 0 1 0 14 60 Income from investments 171 110 55 41 189 95 1-56 -20-55 Net gain from investments in securities -45-19 -58 3 95 126 5-56 11 16 Net income from financial investments 137 108-2 47 301 1,521 367 340 1,051 1,140 Total income 1,361 1,254 427 431 1,840 411 104 111 303 312 Personell costs 357 344 127 115 469 246 51 65 179 198 General administration costs 220 198 72 60 274 34 9 10 26 27 Ordinary depreciation 38 34 13 11 49 129 31 31 97 101 Other operating costs 94 88 29 27 119 820 195 217 605 638 Total costs 709 664 241 213 911 701 172 123 446 502 Profit before losses 652 590 186 218 929-48 -5 1-12 7 Losses 9-11 2-6 -43 749 177 122 458 495 Profit before tax 643 601 184 224 972 190 51 44 145 137 Tax 145 158 46 53 205 0 0 0 0 0 Minority interests 3 4 1 2 5 559 126 78 313 358 Profit for the period 495 439 137 169 762 Side 2 av 18
Profit and loss account Parent Bank Group (Amounts in NOK million) 31.12.06 3rd q.06 3rd q.07 30.09.06 30.09.07 30.09.07 30.09.06 3rd q.07 3rd q.06 31.12.06 2,193 567 840 1,568 2,274 Interest income 2,297 1,582 847 573 2,215 1,123 291 541 770 1,418 Interest costs 1,415 767 540 290 1,118 1,070 276 299 798 856 Net interest income 882 815 307 283 1,097 386 101 112 288 316 Fee- and commission income 342 319 122 102 427 69 16 15 52 49 Fee- and commission costs 49 49 15 15 65 317 85 97 236 267 Net fee- and commission income 293 270 107 87 362 31 3 0 17 11 Dividends 11 17 1 3 17 0-13 0 0 20 Income from joint ventures 171 110 55 41 189 0 14 0 14 40 Income from Group companies 31 4 0 31 71 Dividends received and other income from securities with variable yield 182 127 56 44 206 0 0 0 0 0 Gains/losses and net value changes on loans 0 0 0 0 0 1-2 -32-1 -37 Gains/losses and net value changes on certificates and bonds -37-1 -31 0-9 29-11 -31-66 -45 Gains/losses and net value changes on shares -35-66 -34 3 23 65 14 7 47 27 Gains/losses and net value changes on foreign exchange and fin. derivatives 27 34 7 0 64 0 0 0 0 0 Gains/losses and net value changes on other financial assets 0 14 0 0 17 95 1-56 -20-55 Total net value changes and gains/losses on financial assets at -45-19 -58 3 95 fair value 0 0 0 0 0 Value changes on hedged objects in portfolio hedge of interest rate risk 0 0 0 0 0 126 5-56 11 16 Income from financial investments 137 108-2 47 301 8 1 0 6 1 Other operating income 49 61 15 14 80 1,521 367 340 1,051 1,140 Total net income 1,361 1,254 427 431 1,840 330 83 89 240 246 Wages and salaries 284 275 103 102 383 39 14 15 36 43 Pension costs 45 39 15 15 38 42 7 7 27 23 Social costs 28 30 9-2 48 246 51 65 179 198 Administration costs 220 198 72 60 274 657 155 176 482 510 Total personnel- and general administration costs 577 542 199 175 743 34 9 10 26 27 Depreciation and write-downs of fixed assets 38 34 13 11 49 5 2 1 4 4 Operating costs buildings 16 12 6 4 16 124 29 30 93 97 Other operating costs 78 76 23 23 103 129 31 31 97 101 Total operating costs 94 88 29 27 119 820 195 217 605 638 Total costs 709 664 241 213 911 701 172 123 446 502 Profit before losses 652 590 186 218 929-48 -5 1-12 7 Losses 9-11 2-6 -43 749 177 122 458 495 Profit before tax 643 601 184 224 972 190 51 44 145 137 Tax 145 158 46 53 205 559 126 78 313 358 Profit for the period 498 443 138 171 767 Minority interests 3 4 1 2 5 559 126 78 313 358 Profit for the period 495 439 137 169 762 Side 3 av 18
Balance sheet Parent Bank Group (Amounts in NOK million) 31.12.06 30.09.06 30.09.07 30.09.07 30.09.06 31.12.06 Assets 823 298 274 Cash and balances with central banks 274 298 823 1,529 1,047 4,392 Loans and advances to credit institutions 3,030 38 523 45,384 44,867 47,783 Loans and advances to customers 48,958 45,644 46,226 188 229 156 - individual write-downs for impaired value 159 235 195 174 184 163 - collective write-downs for impaired value 168 187 178 45,022 44,454 47,464 Net loans and advances to customers 48,631 45,222 45,853 4,804 4,284 4,529 Certificates and bonds 4,529 4,284 4,805 490 452 468 Shares 584 455 549 123 88 167 Investments in Group Companies 620 620 667 Investments in joint ventures 989 660 785 449 437 359 Financial derivatives 358 437 449 83 90 83 Deferred tax 85 102 84 674 607 599 Other assets 1,087 1,061 1,091 54,617 52,377 59,002 Total assets 59,567 52,557 54,962 Liabilities 1,983 2,617 3,210 Deposits from credit institutions 3,210 2,588 1,965 27,874 27,886 30,316 Due to customers 30,286 27,782 27,784 18,741 16,011 18,935 Debt securities in issue 18,935 16,012 18,741 372 438 367 Financial derivatives 367 438 372 1,016 1,142 1,473 Other liabilities 1,612 1,268 1,202 1,374 1,303 1,243 Subordinated loan capital 1,243 1,302 1,374 51,360 49,397 55,544 Total liabilities 55,653 49,390 51,438 Equity 792 792 841 Primary Capital Certificates (PCC) 841 792 792 8 8 76 PCC premium reserve 76 8 8 209 119 196 Dividend Equalisation Fund 196 170 207 158 0 0 Set aside for dividend payments 0 0 158 1,904 1,657 1,880 The Savings Bank's Fund 1,876 1,625 2,023 186 91 107 Donations 107 107 186 0 0 0 Fund for unrealised gains 0 0 0 0 0 0 Other equity capital 316 17 145 0 313 358 Profit for the period 494 439 0 Minority interests 8 9 5 3,257 2,980 3,458 Total equity 3,914 3,167 3,524 54,617 52,377 59,002 Total liabilities and equity 59,567 52,557 54,962 Side 4 av 18
Balance sheet Parent Bank Group (Amounts in NOK million) 31.12.06 30.09.06 30.09.07 30.09.07 30.09.06 31.12.06 Assets 823 298 274 Cash and balances with central banks 274 298 823 1,529 1,047 4,392 Loans and advances to credit institutions 3,030 38 523 45,384 44,867 47,783 Loans and advances to customers 48,958 45,644 46,226 188 229 156 - individual write-downs for impaired value 159 235 195 174 184 163 - collective write-downs for impaired value 168 187 178 45,022 44,454 47,464 Net loans and advances to customers 48,631 45,222 45,853 123 88 167 Investments in group companies 620 620 667 Investments in joint ventures 989 660 785 4,804 4,284 4,529 Certificates and bonds 4,529 4,284 4,805 490 452 468 Shares and parts 584 455 549 0 0 0 Value changes of hedging objects relating to portfolio hedging of interest rate risk 0 0 0 83 90 83 Deferred tax 85 102 84 95 90 131 Fixed assets 569 495 506 449 437 359 Financial derivatives 358 437 449 4 4 4 Repossessed assets 4 4 4 160 69 164 Other assets 205 107 156 73 419 267 Accrued income 275 427 335 342 25 33 Prepayments 34 28 90 54,617 52,377 59,002 Total assets 59,567 52,557 54,962 Liabilities 1,983 2,617 3,210 Deposits from credit institutions 3,210 2,588 1,965 27,874 27,886 30,316 Due to customers 30,286 27,782 27,784 18,741 16,011 18,935 Debt securities in issue 18,935 16,012 18,741 0 0 0 Value changes of hedging objects relating to portfolio hedging of interest rate risk 0 0 0 372 438 367 Financial derivatives 367 438 372 429 375 480 Other liabilities 514 405 522 428 625 860 Incurred costs 959 708 514 159 142 133 Provisioning against incurred liabilites and costs 139 155 166 1,374 1,303 1,243 Subordinated loan capital 1,243 1,302 1,374 51,360 49,397 55,544 Total liabilities 55,653 49,390 51,438 Equity 792 792 841 Primary Capital Certificates (PCC) 841 792 792 8 8 76 PCC premium reserve 76 8 8 0 0 0 Fund for evaluation differences 316 17 145 1,904 1,970 2,238 The Savings Bank's Fund 2,370 2,064 2,023 367 119 196 Dividend Equalisation Fund 196 170 365 186 91 107 Donations 107 107 186 0 0 0 Other equity capital 0 0 0 Minority interests 8 9 5 3,257 2,980 3,458 Total equity 3,914 3,167 3,524 54,617 52,377 59,002 Total liabilities and equity 59,567 52,557 54,962 Side 5 av 18
Result from the Group's quarterly accounts (Amounts in NOK million) 3q 07 2q 07 1q 07 4q 06 3q 06 2q 06 1q 06 4q 05 3q 05 Interest income 847 768 682 633 573 536 473 471 442 Interest costs 540 477 398 351 290 266 211 203 171 Net interest income 307 291 284 282 283 270 262 268 271 Fee- and commission income 122 117 103 108 102 114 103 101 113 Fee- and commission costs 15 18 16 16 15 15 19 16 13 Other operating income 15 19 15 19 14 22 25 22 23 Net fee-,commission and other operating income 122 118 102 111 101 121 109 107 123 Dividend 1 4 6 0 3 6 8 1 0 Income from investments 55 68 48 70 17 48 21 50 18 Net gain from investments in securities -58 2 13 114 3-58 36 45 23 Net income from financial investments -2 72 67 184 23-4 65 96 41 Total income 427 481 453 577 407 387 436 471 435 Personell costs 127 120 109 125 115 123 106 116 123 General administration costs 72 78 70 67 36 71 67 70 61 Ordinary depreciation 13 13 12 15 11 11 12 13 12 Other operating costs 29 35 31 31 27 31 30 29 27 Total costs 241 246 222 238 189 236 215 228 223 Profit before losses 186 235 231 339 218 151 221 243 212 Losses 2 5 2-32 -6 1-6 24 9 Profit before tax 184 230 229 371 224 150 227 219 203 Tax 46 43 56 47 53 43 62 40 43 Minority interests 1 1 1 1 2 1 1 1 0 Profit for the period 137 186 172 323 169 106 164 178 160 Profitability Return on equity capital 17.91 % 19.83 % 19.50 % 24.60 % 19.53 % 18.40 % 22.49 % 20.49 % 19.10 % Interest margin 2.06 % 2.04 % 2.05 % 2.14 % 2.16 % 2.15 % 2.16 % 2.39 % 2.45 % Cost/income 52.09 % 50.11 % 49.00 % 48.60 % 52.03 % 54.80 % 49.30 % 52.34 % 53.90 % Balance sheet Figures Loans and advances to customers 48,958 47,852 47,649 46,226 45,644 43,765 42,426 41,638 41,272 Deposits from customers 30,286 32,390 28,994 27,784 27,782 28,324 25,526 25,350 25,910 Deposits as a percentage of gross lending 61.9 % 67.7 % 60.8 % 60.1 % 60.9 % 64.7 % 60.2 % 60.9 % 62.9 % Growth in loans and advances to customers past 12 months 7.3 % 9.3 % 12.3 % 11.0 % 10.6 % 10.3 % 11.3 % 9.8 % 8.0 % Growth in deposits from customers past 12 months 9.0 % 14.4 % 13.6 % 9.6 % 7.2 % 11.1 % 9.2 % 10.2 % 14.0 % Average assets 57,176 56,379 55,339 51,230 50,297 49,544 48,568 44,911 44,105 Total assets 59,567 58,460 55,715 54,962 52,557 51,496 48,506 48,630 46,321 Losses on loans and commitments in default Losses on loans to customers as a percentage of gross loans 0.02 % 0.03 % 0.02 % -0.09 % -0.03 % -0.02 % -0.06 % 0.16 % 0.13 % Commitments in default as a percentage of gross loans 0.32 % 0.38 % 0.42 % 0.52 % 0.47 % 0.75 % 0.57 % 0.60 % 1.03 % Commitments at risk of loss as a percentage of gross loans 0.84 % 0.96 % 0.97 % 1.12 % 1.34 % 1.38 % 1.56 % 1.71 % 0.38 % Net commitments in default and at risk of loss as a percentage of gross loans 0.83 % 0.97 % 1.01 % 1.22 % 1.30 % 1.59 % 1.51 % 1.68 % 0.92 % Solidity Capital adequacy 9.2 % 10.2 % 10.4 % 10.4 % 9.3 % 10.3 % 11.2 % 10.9 % 10.4 % Core capital adequacy 8.0 % 9.0 % 8.6 % 9.8 % 8.3 % 8.9 % 9.7 % 9.6 % 8.8 % Core capital 3,393 3,776 3,013 3,478 2,945 2,934 3,159 3,037 2,746 Net subordinated capital 2,958 3,309 3,625 3,688 3,309 3,388 3,636 3,464 3,237 Risk-weighted assets base for capital 36,783 36,888 34,898 35,594 35,473 33,042 32,603 31,750 31,288 Side 6 av 18
Result from the Parent Bank's quarterly accounts (Amounts in NOK million) 3q 07 2q 07 1q 07 4q 06 3q 06 2q 06 1q 06 4q 05 3q 05 Interest income 840 758 676 625 567 517 484 467 440 Interest costs 541 477 400 353 291 252 227 204 172 Net interest income 299 281 276 272 276 265 257 263 268 Fee- and commission income 112 109 95 98 101 95 92 90 100 Fee- and commission costs 15 17 17 17 16 17 19 15 13 Other operating income 0 0 1 1 1 0 5 6 4 Net fee-,commission and other operating income 97 92 79 84 86 78 78 81 91 Dividend 0 4 6 0 3 5 9 0 0 Income from investments 0 0 61 0 0-1 14 51 25 Net gain from investments in securities -56-6 7 115 2-57 36 49 21 Net income from financial investments -56-2 74 115 5-53 59 100 46 Total income 340 371 429 470 367 290 394 444 405 Personell costs 111 107 95 108 104 106 93 103 109 General administration costs 65 70 63 67 51 67 61 63 55 Ordinary depreciation 10 9 8 8 9 8 9 9 8 Other operating costs 31 35 34 32 31 32 34 31 32 Total costs 217 221 200 215 195 213 197 206 204 Profit before losses 123 150 229 255 172 77 197 238 201 Losses 1 4 2-36 -5 0-7 23 9 Profit before tax 122 146 227 291 177 77 204 215 192 Tax 44 39 54 45 51 37 57 39 37 Profit for the period 78 107 173 246 126 40 147 176 155 Profitability Return on equity capital 14.34 % 17.04 % 21.40 % 19.10 % 14.70 % 13.40 % 21.19 % 20.85 % 18.99 % Interest margin 2.01 % 1.99 % 2.01 % 2.10 % 2.13 % 2.12 % 2.13 % 2.38 % 2.44 % Cost/income 55.96 % 52.63 % 46.40 % 54.00 % 57.60 % 59.94 % 50.13 % 51.56 % 53.61 % Balance sheet Figures Loans and advances to customers 47,783 46,761 46,706 45,384 44,867 43,079 41,824 41,065 40,776 Deposits from customers 30,316 32,435 29,062 27,874 27,886 28,432 25,620 25,466 26,058 Deposits as a percentage of gross lending 63.4 % 69.4 % 62.2 % 61.4 % 62.2 % 66.0 % 61.3 % 62.0 % 63.9 % Growth in loans and advances to customers past 12 months 6.5 % 8.5 % 11.7 % 10.5 % 10.0 % 9.9 % 11.0 % 9.3 % 7.4 % Growth in deposits from customers past 12 months 8.7 % 14.1 % 13.4 % 9.5 % 7.0 % 11.0 % 8.9 % 10.4 % 14.0 % Average assets 56,737 55,982 54,986 50,969 50,057 49,284 48,239 44,423 43,514 Total assets 59,002 57,974 55,354 54,617 52,377 51,373 48,418 48,060 45,737 Losses on loans and commitments in default Losses on loans to customers as a percentage of gross loans 0.02 % 0.03 % 0.02 % -0.11 % -0.04 % -0.03 % -0.07 % 0.15 % 0.13 % Commitments in default as a percentage of gross loans 0.30 % 0.34 % 0.40 % 0.50 % 0.45 % 0.73 % 0.55 % 0.59 % 1.02 % Commitments at risk of loss as a percentage of gross loans 0.83 % 0.93 % 0.96 % 1.11 % 1.33 % 1.38 % 1.55 % 1.71 % 0.37 % Net commitments in default and at risk of loss as a percentage of gross loans 0.80 % 0.92 % 0.99 % 1.19 % 1.28 % 1.57 % 1.49 % 1.67 % 0.89 % Solidity Capital adequacy 9.5 % 10.4 % 10.9 % 10.4 % 10.0 % 10.9 % 11.1 % 11.1 % 11.1 % Core capital adequacy 8.1 % 8.6 % 9.0 % 9.7 % 8.8 % 9.3 % 9.5 % 9.6 % 9.3 % Core capital 3,080 3,080 3,035 3,360 2,958 2,946 2,971 2,986 2,847 Net subordinated capital 3,716 3,716 3,672 3,614 3,377 3,455 3,495 3,461 3,385 Risk-weighted assets base for capital 35,709 35,709 33,765 34,640 33,685 31,745 31,404 31,118 30,631 Primary Capital Certificates Quoted/market price NONG as at 132.50 140.50 140.50 149.50 137.00 138.00 138.75 157.00 125.50 Equity capital per PCC (NOK) 66.20 64.90 61.58 73.70 58.00 58.68 60.07 60.07 58.23 Profit per PCC (NOK) 7.13 5.58 3.66 14.03 7.04 4.23 3.46 11.64 1.22 P/E (Price/Earnings) 15.1 11.8 9.0 10.7 12.6 16.3 10.0 13.5 11.1 P/V (Price/Book Value) 2.0 2.2 2.3 2.0 2.4 2.4 2.3 2.6 2.2 Total number of PCC 16,813,952 16,813,952 15,832,844 15,832,844 15,832,844 15,832,844 15,832,844 15,832,844 15,832,844 PCC owned by SNN 0 0 0 0 0 0 0 0 0 Side 7 av 18
Change in equity Parent Bank Group (Amounts in NOK million) 31.12.06 30.09.06 30.09.07 30.09.07 30.09.06 31.12.06 2,736 2,736 3,257 Equity capital as at 1.1. 3,524 2,942 2,942-18 -64-41 Implementation effects IFRS transition 0 0 0 559 313 358 Profit for the period 495 439 762 0 0-158 Dividend -158-158 -158 0 0 117 Dividend issue 117 0 0-20 -5-75 Other equity adjustments -70-65 -27 Minority interests 6 9 5 3,257 2,980 3,458 Equity at end of period 3,914 3,167 3,524 Side 8 av 18
Cash Flow Analysis Parent Bank Group (Amounts in NOK million) 31.12.06 30.09.06 30.09.07 30.09.07 30.09.06 31.12.06 749 458 495 Profit before tax 643 601 972 34 17 27 + Ordinary depreciation 38 34 49 0 0 0 + Write-downs, gains/losses fixed assets 0 0-11 -48-12 7 + Losses on loans and guarantees 9-11 -43 190 145 137 - Tax 145 158 205 0 0 0 - Group contributions 0 0 0 158 158 158 - Dividend paid on PCCs 158 158 158 387 160 234 Provided from the year's operations 387 308 604 366 175 336 Change in sundry liabilities: + increase/ - decrease 337 41-37 -539-138 201 Change in various claims: - increase/ + decrease 158-124 -155-4,402-3,850-2,449 Change in gross lending to and claims on customers: - increase/ + decrease -2,787-4,054-4,653-735 -251 297 Change in short term-securities: - increase/ + decrease 241-228 -843 2,407 2,420 2,442 Change in deposits from and debt owed to customers: + increase/ - decrease 2,502 2,432 2,434 180 814 1,227 Change in debt owed to credit institutions: + increase/ - decrease 1,245 815 192-2,336-670 2,288 A. Net liquidity change from operations 2,083-810 -2,458-31 -18-63 - Investment in fixed assets -101-26 -84 0 0 0 + Sale of fixed assets 0 0 40-58 -51-91 Change in holdings of long-term securities: - increase/ + decrease -204-165 -290-89 -69-154 B. Liquidity change from investments -305-191 -334 3,071 360 194 Change in borrowings through the issuance of securities: + increase/ - decrease 194 344 3,073-16 -35-14 Change in PCC/subordinated loan capital: + increase/ - decrease -14 13 85 3,055 325 180 C. Liquidity change from financing 180 357 3,158 593-414 2,314 A + B + C. Total change in liquidity 1,958-644 366 1,759 1,759 2,352 + Liquid funds at the start of the period 1,346 980 980 2,352 1,345 4,666 = Liquid funds at the end of the period 3,304 336 1,346 Liquid funds are defined as cash-in-hand, claims on central banks, plus loans to and claims on credit institutions. Side 9 av 18
Notes Accounting Principles The Group's quarterly accounts have been prepared in accordance with International Financial Reporting Standards (IFRS), including IAS 34 relating to interim reporting. In its resolution dated 30.03.2007, the Minstry of Finance gave its permission for the use of IFRS in Parent Bankaccounts involving interim reporting with effect from the second quarter of 2007. Furthermore, banks have been given the option of applying IFRS to Parent Bank accounts from the first quarter of 2007. The Bank has chosen to apply IFRS to the Parent Bank's accounts from the first quarter of 2007. The figures for the third quarter of 2006 and at 31.12.06 for the profit and loss account, balance sheet, Notes to the accounts and financial highlights have been restated in relation to earlier reports in order to be able to compare the figures with those for the third quarter of 2007. The taxation cost for the quarter has been based on an estimated, average, annual effective tax rate in accordance with the annual assessment of tax. Side 10 av 18
Parent Bank Group (Amounts in NOK million) 31.12.06 30.09.06 30.09.07 30.09.07 30.09.06 31.12.06 Capital Adequacy New capital adequacy rules and regulations (Basel II EU s new directives for capital adequacy) were implemented in Norway with effect from 1 January 2007. The new rules and regulations are based on Bank for International Settlements (BIS) proposal for a new standard for capitaladequacy calculations. SpareBank 1 Nord-Norge has applied to and received permission from Kredittilsynet (The Financial Supervisory Authorityof Norway) (FSAN) to apply internal calculation methods (Internal Rating-Based Approach) for credit risk from 1 January 2007. With effect from 2007, therefore, the statutory minimum capital adequacy requirement for credit risk will be based on the Bank s internal assessment of risk. This will make the statutory minimum capital adequacy requirement more risk-sensitive, which means that the capital requirement will to a larger extent correspond to the risk contained in the underlying portfolios in question. The use of internal calculation methodswill involve comprehensive demands on the Bank s organisation, competence, risk models and risk management systems. 3,360 2,958 3,343 Core capital 3,440 2,945 3,337 0 0-450 Deduction items core capital: -482 0-324 945 942 916 Supplementary capital 916 942 937 0 0-450 Deduction items supplementary capital: -482 0-324 -691-523 0 Subord. loan-and equity cap. participations in other fin.inst. 0 0 0 0 0 0 Capital adequacy reserves 0-577 0 3,614 3,377 3,361 Net equity and related capital resources 3,393 3,309 3,625 34,640 33,685 37,390 Total risk-weighted assets base - 100 % 38,719 35,473 36,735 35,521 Total risk-weighted assets base IRB - 95 % 36,783 9.70 % 8.78 % 8.15 % Core capital adequacy ratio* 8.04 % 8.30 % 8.63 % 0.73 % 1.24 % 1.31 % Supplementary capital adequacy ratio* 1.18 % 1.03 % 1.75 % 10.43 % 10.02 % 9.46 % Capital adequacy ratio* 9.22 % 9.33 % 10.39 % * Figures for 3rd quarter 2007 are calculated in accordance with IRB Figures for 2006 are calculated in accordance with NGAAP, not restated in accordance with IFRS Net bad and doubtful commitments 226 201 144 Commitments in default, not bad and doubtful 157 213 241 504 598 398 + Bad and doubtful commitments 411 611 519 188 226 158 - Individual write-down for impaired value 162 231 196 542 573 384 = Net bad and doubtful commitments 406 593 564 Losses incorporated in the accounts -76-34 -31 + Period's change in individual write-down for impaired value -30-33 -73-36 -27-16 + Period's change in collective write-down for impaired value -16-27 -36 + Period's confirmed losses against which individual write-downs 87 67 69 were previously made 69 67 87 + Period's confirmed losses against which individual write-downs 4 4 3 were previously not made 4 4 6 27 22 18 - Recoveries in respect of previously confirmed losses 18 22 27-48 -12 7 = Total losses on loans 9-11 -43 Side 11 av 18
Individual- and collective write-downs for impaired value Parent Bank Group (Amounts in NOK million) 31.12.06 30.09.06 30.09.07 30.09.07 30.09.06 31.12.06 Individual write-downs for impaired value: Individual write-downs for impaired value 264 264 189 on loans and guarantees as at 01.01. 196 268 269 - Confirmed losses during the period on loans and guarantees, 87 66 69 against which individual write-downs for impaired value has prev. been made 75 66 87 48 43 39 - Reversal of previous years' individual write-downs for impaired value 39 43 48 + Increase in write-downs for impaired value for commitments against which 15 16 11 individual write-downs for impaired value were previously made 12 17 17 + Write-downs for impaired value for commitments against which no 45 60 66 individual write-downs for impaired value was previously raised 67 60 45 0 0 + Effect of implementing IFRS/new lending rules and regulation 0 0 = Individual write-downs for impaired value 189 231 158 on loans and guarantees 161 237 196 Collective write-downs for impaired value: 214 214 174 and guarantees as at 01.01. 179 217 217 + Period's Collective write-downs for impaired value against losses -40-30 -11 on loans and guarantees -11-30 -39 0 0 0 + Effect of implementing IFRS/new lending rules and regulation 0 0 0 = Collective write-downs for impaired value against losses on loans, 174 184 163 and guarantees 168 187 178 *Individual write-downs for impaired value on guarantees, NOK 2 million, are included in the Balance Sheet as liabilities under 'Provisions against liabilities'. Side 12 av 18
Loans and losses broken down by sector and industry Group 30.09.07 IFRS Group 31.12.06 IFRS % Share losses Losses Loans % Share losses Losses Loans 0 % 0 0 Central government administration,social security administration 0 % 0 21 0 % 0 237 Counties/municipalities 0 % 0 213-4 % -1 2,983 Agriculture, forestry, fisheries, hunting and fish farming 188 % -30 2,575 0 % 0 34 Production of crude oil and natural gas 0 % 0 22 37 % 10 1,559 Industry and mining 19 % -3 1,344 7 % 2 1,251 Building and construction, power and water supply -25 % 4 1,178 37 % 10 1,628 Wholesale and retail trade; hotel and restaurant industry -56 % 9 1,696 0 % 0 2 International shipping and pipeline transport 0 % 0 1 7 % 2 1,254 Transport and communication -6 % 1 1,210 44 % 12 7,474 Financing, property management and business services -88 % 14 6,548 4 % 1 805 Other services -25 % 4 760 0 % 0 66 Insurance, fund management and financial services 0 % 0 103 0 % 0 53 Foreign sector retail 0 % 0 52 7 % 2 31,612 Retail banking market -150 % 24 30,503-15 % -4 Collective write-downs for impaired value corporate banking losses 313 % -50-26 % -7 Collective write-downs for impaired value retail banking losses -69 % 11 100 % 27 48,958 Gross lending/ losses on customers 100 % -16 46,226 18 Recoveries from previously written off losses 27 9 Net losses - the Group -43 Side 13 av 18
Deposits broken down by sector and industry Group - IFRS 30.09.07 30.09.06 31.12.06 Central government administration and social security administration 305 1,185 277 Counties and municipalities 4,274 3,166 3,796 Agriculture, forestry, fisheries, hunting and fish farming 955 723 796 Production of crude oil and natural gas 1 1 0 Industry and mining 609 372 643 Building and construction, power and water supply 1,453 1,173 1,202 Wholesale and retail trade; hotel and restaurant industry 1,316 1,307 1,273 International shipping and pipeline transport 15 7 9 Financing, property management and business services 2,438 2,084 2,275 Transport and communication 644 733 635 Insurance, fund management and financial services 427 530 223 Other service industries 1,888 1,742 1,704 Retail banking market 15,770 14,567 14,762 Foreign retail banking market 191 192 189 Deposits from customers 30,286 27,782 27,784 Side 14 av 18
Subsidiaries Profit from ordinary operations (Amounts in NOK 1 000) after tax Equity Share of Eq.% 30.09.07 30.09.06 31.12.06 30.09.07 30.09.06 31.12.06 SpareBank 1 Finans Nord-Norge AS 100.00 12,746 10,514 14,732 127,119 89,200 114,418 SpareBank 1 Nord-Norge Invest AS 100.00 7,828 248-139 81,850 30,479 74,091 Eiendomsdrift AS 100.00 145 6,472 7,238 45,414 63,863 45,269 EiendomsMegler 1 Nord-Norge AS 100.00 1,350 5,131 5,313 13,505 12,608 12,155 SpareBank 1 Nord-Norge Securities ASA 54.00 1,983 4,980 6,368 9,218 10,837 5,648 ANS Bygginvestor 1 52.36 0 0 0 67 67 67 Side 15 av 18
Other assets Parent Bank Group 31.12.06 30.09.06 30.09.07 30.09.07 30.09.06 31.12.06 95 90 131 Fixed assets 569 495 506 4 4 4 Reprossessed assets 4 4 4 73 419 267 Accrued income 275 427 335 342 25 33 Prepayments 34 28 90 160 69 164 Other assets 205 107 156 674 607 599 Total other assets 1,087 1,061 1,091 Other liabilities 428 625 860 Costs incurred 959 708 514 159 142 133 Provisioning against incurred liabilities and costs 139 155 166 429 375 480 Other liabilities 514 405 522 1,016 1,142 1,473 Total other liabilities 1,612 1,268 1,202 Side 16 av 18
PCC Holders The 20 largest PCC holders as at 30.09.07 Number Share of total PCC Holders of PCCs PCC Capital Pareto Aksjer Norge 679,400 4.04% Frank Mohn AS 356,383 2.12% MP Pensjon 323,440 1.92% JPMorgan Chase Bank - client account 316,590 1.88% Pareto Aktiv 304,150 1.81% Tonsenhagen Forretningssentrum AS 264,550 1.57% JPMorgan Chase Bank 250,542 1.49% Terra Utbytte 238,925 1.42% Framo Development AS 216,666 1.29% Mellon Bank - client account 210,300 1.25% BNP Paribas Securities 206,870 1.23% Citibank International 200,625 1.19% Troms Kraft Invest AS 157,450 0.94% National Financial Services Citibank N.A. 149,054 0.89% Forsvarets Personellservice 138,720 0.83% Karl Ditlefsen 136,153 0.81% Trond Mohn 130,000 0.77% State Street Bank - client account 120,304 0.72% Sparebankstiftelsen DnB NOR 118,500 0.70% Fred Olsen & Co's Pensjonskasse 110,500 0.66% SUM 4,629,122 27.53% Side 17 av 18
Business Areas Management has made an assessment of which business areas are deemed reportable with respect to form of distribution, products and customers. The primary format of reporting takes as a starting point risk and yield profiles of various assets and reporting is divided into private customers (Retail Banking Market), business customers (Corporate and Public Market) and leasing. The bank's own investment activities are not a separately reportable segment and appear under the item "unallocated" together with activities which cannot be allocated to either private or business segments. (Amounts in NOK million) Banking Market Banking Market Leasing Unallocated Total 30.09.07 Net interest income 481 310 39 52 882 Net fee and commission income 164 104-2 27 293 Other operating income 0 0 5 181 186 Operating costs 385 253 24 47 709 Profit before losses 260 161 18 213 652 Losses -16 23 2 0 9 Profit before income tax 276 138 16 213 643 Loans and advances to customers 31,029 16,342 1,587 0 48,958 Individual write-downs for impaired value on loans and advances to customers -48-108 -3 0-159 Collective write-downs for impaired value on loans and advances to customers -42-121 -5 0-168 Other assets 0 0 23 10,913 10,936 Total assets per business area 30,939 16,113 1,602 10,913 59,567 Lending to and deposits to customers 15,770 14,516 0 0 30,286 Other liabilities and equity capital 0 0 1,602 27,679 29,281 Total equity and liabilities per business area 15,770 14,516 1,602 27,679 59,567 Side 18 av 18