Interim report for the 3rd quarter of 2008. Glitnir Bank ASA

Interim report for the 3rd quarter of 2008 Glitnir Bank ASA

contents Report of the Directors...3 Consolidated Income Statement...5 Consolidated Balance Sheet...6 Consolidated Statement of Changes in Equity...7 Consolidated Cash Flow Statement...8 Notes to the Consolidated Financial Statements...9 Income Statement - Parent Bank...13 Balance Sheet - Parent Bank...14 Statement of Changes in Equity - Parent Bank...15 Cash Flow Statement - Parent Bank...16 Notes to Financial Statements - Parent Bank...17 [ 2 ]

Glitnir bank ASA Introduction The financial turmoil, the situation in Iceland and the general trend in the economy have affected Glitnir Bank ASA in the third quarter of 2008. After several international financial institutions applied for creditor protection, failed, or had to be rescued by the authorities, parts of the financial market stopped functioning. This caused challenges for Glitnir banki hf. among others, and the bank was taken over by the Icelandic government at the beginning of October 2008. At the same time, a decision was made to sell all foreign subsidiaries, including Glitnir Bank ASA. The situation in Iceland also caused liquidity challenges for Glitnir Bank ASA, and from 9 October 2008 the Bank was secured liquidity of up to NOK 5 billion through support from the Norwegian Banks Guarantee Fund. A process to sell Glitnir Bank ASA was initiated in this connection, and on 20 October an agreement was signed with the SpareBank 1 banks (SpareBank 1 SMN, SpareBank 1 SR-Bank, SpareBank 1 Nord-Norge, Sparebanken Hedmark and Samarbeidende Sparebanker AS) for the acquisition of Glitnir Bank ASA. The subsidiaries Glitnir Privatøkonomi AS and Glitnir Eiendomsfinans AS are not included in the agreement. These companies were taken over by representatives of their respective management teams at the same time. The acquisition of Glitnir Bank ASA is conditional on licensing from the Ministry of Finance, and final clarification is expected during November. The Bank s operations will continue as at present until the issue of licensing has been resolved. The Board of Directors regards this as a good solution for clients, lenders, staff, and the bank s subsidiaries. The SpareBank 1 banks provide a strong basis for further development of the business and relationships with customers, and as new owners they have expressed their interest in continuing to build on the expertise that Glitnir can offer. The price for the Bank was NOK 300 million. This price does not reflect the underlying value, but is a function of the turmoil in the financial sector, the situation in Iceland, and the period of time that was available for carrying out the sale. The financial turmoil, the situation of Glitnir banki hf. and the sale of subsidiaries have resulted in the need for amortisation and write-downs of the bond portfolio and goodwill related to the subsidiaries. In total, this amounted to NOK 359 million before tax in the 3rd quarter, and as a result of this the Group s loss before tax came to NOK 262 million for the quarter. The underlying earnings in the 3rd quarter are at the same level as for the previous quarters. Glitnir Bank ASA Bolig- og Næringsbanken ASA and Glitnir Bank ASA merged in March 2008 with effect for accounting purposes from 1 January 2008. Both companies were wholly owned by the Icelandic banking group, Glitnir banki hf., and the merger was implemented with business continuity. Bolig- og Næringsbanken ASA was the acquiring bank in the merger, and the name of the new bank is Glitnir Bank ASA. The accounting figures for 2007 include both banks and have been prepared in compliance with International Financial Reporting Standards (IFRS). Glitnir Bank ASA is a Norwegian bank subject to Norwegian regulations and supervision. The bank is a member of the Banks Guarantee Fund on a par with other Norwegian banks. Accounting policies Glitnir Bank presents its consolidated accounts and separate company accounts for the Parent Bank in compliance with International Financial Reporting Standards (IFRS). The interim report has been prepared in accordance with IAS 34, Interim Financial Reporting. No changes were made to the accounting policies in 2008. Results As a result of write-downs and amortisation of bonds and goodwill, Glitnir Bank has a loss before tax of NOK 158 million for the year to date. Total write-downs and amortisation amounted to NOK 453 million for the year to date. Adjusted for this, profit before tax came to NOK 295 million at 30 September. Profit before tax at 30 September 2007 was NOK 358 million. In addition to the effects mentioned above, in 2008 the Bank has had expenses related to the implementation of the merger, establishment of the programme for the issue of covered bonds and a loss in Glitnir Privatøkonomi. Pressure on deposit margins and a reduced volume of lending have reduced net interest income. Increased margins in the lending market and increased interest rate levels have however more than compensated for this, and net interest income has increased somewhat during the year to date compared with the corresponding period in 2007. The Group s financial instruments which mature after more than one year are reported at fair value. Interest rate risk and exchange rate risk within the Group are low, and fluctuations in interest rates and rates of exchange shall have a limited net profit effect. During periods when interest rate spreads between different instruments develop differently, effects on earnings may arise. During the 1st half-year of 2008 this had a positive effect on earnings, while the effect in the 3rd quarter was negative. As part of the Bank s bond portfolio, since 2006 Glitnir Bank ASA has owned bonds issued by Glitnir banki hf. for NOK 155 million. These were written down in their entirety in the 3rd quarter of 2008. [ 3 ]

Operating expenses have risen in 2008 compared with 2007. In addition to the effects of the consolidation of Glitnir Privatøkonomi and Glitnir Eiendomsfinans, the increase is due to a write-down of goodwill and to merger and marketing costs. The underlying level of costs within the banking operations remains stable. In October 2008, Glitnir Privatøkonomi and Glitnir Eiendomsfinans were taken over by representatives of their respective management teams. The remaining goodwill, totalling NOK 182 million, was charged in its entirety during the 3rd quarter. Lending and Funding During 2008, the Bank has reduced its exposure to areas that are not defined as core business. Among other initiatives, loans to housing co-operatives for NOK 1.4 billion were sold in March 2008. In addition, exposure to commercial property has been reduced during the year. Lending totalled NOK 48.2 billion at the end of the 3rd quarter, compared with NOK 49.6 billion at the 2nd quarter of 2008. To date this year, lending has decreased by NOK 4.9 billion. Year-to-date deposits have fallen by NOK 4.1 billion. The reduction is primarily related to large corporate customers and deposits of more than NOK 2 million. In the 3rd quarter, deposits decreased by NOK 1.3 billion. Due to the situation in Iceland and the resulting turbulence around Glitnir Bank ASA, deposits declined further in October 2008. Of the Bank s lending, 48 % is exposed to real estate operations, while almost 39 % is exposed to the retail market. Loan disbursements have generally been low, but risk may increase if there is a substantial decline in the value of the security for the Bank s lending. In total, the loan portfolio risk is regarded as relatively low. Non-performing loans totalled NOK 431 million at the end of the quarter. This is a higher figure than at the end of the 2nd quarter, when non-performing loans stood at NOK 207 million, having been NOK 127 million at the year-end. The increase in the 3rd quarter is mainly due to a commitment in which the security is regarded as satisfactory. To date this year, the Bank s impairment losses on loans total NOK 15 million. Solvency The Group s capital base, including 50 per cent of the operating profit after impairment losses for the period, was NOK 4,444 million at the close of the period, giving a capital adequacy ratio of 11.0 per cent. Tier 1 capital totalled NOK 3,247 million, giving a tier 1 capital ratio of 8.1 per cent at the end of September 2008. Risk-weighted assets amounted to NOK 40,271 million at the same date. The Board of Directors views the relationship between the capital adequacy of Glitnir Bank ASA and relevant risks as satisfactory. By comparison, the tier 1 capital ratio and capital adequacy ratio were 7.6 and 10.5 per cent respectively at the year-end. Outlook The support from the Norwegian Banks Guarantee Fund and the agreement with the SpareBank 1 banks regarding the acquisition of Glitnir Bank ASA ensure liquidity and a good ownership solution for the Bank. Operations will continue as at present until the issue of licensing has been clarified. The way in which the business is to be coordinated with the SpareBank 1 banks will then be considered. Changes in value related to financial instruments may have a greater impact on earnings in 2008 than normal, owing to greater fluctuations in interest rate differences between different types of instrument. The acquisition and the situation in Iceland have resulted in costs for the bank, and somewhat higher expenses must be expected in the 4th quarter. The negative consequences of the financial turmoil for the real economy are likely to increase significantly in the time ahead, and in the fourth quarter of 2008 there will be a risk of greater impairment of loans than previously this year. The underlying operation is regarded as stable and sound, and Glitnir Bank ASA has satisfactory capital adequacy and financial strength in relation to the risk associated with its activities. The Board of Directors Trondheim, 13 november 2008 [ 4 ]

resultatregnskap Group nok million note Q3 2008 Q3 2007 30.09.08 30.09.07 full year 2007 Interest and similar income 964 809 2 884 2 242 3 174 Interest expense and similar charges 780 640 2 346 1 776 2 525 Net income from interest and credit commissions 184 169 538 466 649 Change in value of fin instr carried at fair value 211-61 415-351 -207 Other operating income and net gain/(loss) 2-344 77-418 449 346 Total other operating income -133 16-3 98 139 Salaries and general administrative expenses 114 65 376 191 303 Depreciation, amortisation & write-downs 5 177 4 265 12 21 Other operating expenses 19 8 37 23 38 Other gains and losses 0 0 0-17 -18 Total other operating expenses 310 77 678 209 344 Operating profit before impairment losses -259 108-143 355 444 Impairment losses on loans and advances 3-3 15-5 -10 Operating profit after impairment losses -262 111-158 360 454 Income from interests in associates 0-4 0-2 -7 Profit before income tax -262 107-158 358 447 Income tax expense -16 30 27 101 123 Net profit for the period -246 77-185 257 324 Earnings per share (whole NOK) (19.87) 6.22 (14.94) 20.76 26.17 [ 5 ]

balance sheet Group nok million note 30.09.08 30.09.07 31.12.07 Deferred tax assets 56 2 53 Intangible assets 33 41 287 Interests in associates 0 92 0 Tangible assets 94 92 96 Repossessed properties 19 15 15 Loans and advances 48 150 52 281 53 099 Prepayments and accrued income 129 77 63 Financial derivatives 1 067 1 093 1 004 Short-term investment securities 2 737 2 935 2 912 Cash and balances with credit institutions 231 452 832 Total assets 52 516 57 080 58 361 Equity and liabilities Share capital 6 619 619 619 Retained earnings 2 528 2 647 2 712 Total equity 6 3 147 3 266 3 331 Subordinated loan capital 1 388 1 463 1 468 Liabilities to credit institutions 3 9 967 9 112 10 585 Debt securities in issue 3 16 763 19 306 18 930 Accrued expenses and deferred income 253 160 331 Other short-term liabilities 1 326 141 233 Financial derivatives 1 215 1 347 1 220 Customer deposits and accounts payable to customers 18 457 22 285 22 263 Total liabilities 49 369 53 814 55 030 Total equity and liabilities 52 516 57 080 58 361 The Board of Directors Trondheim, 13 november 2008 [ 6 ]

Changes in Equity g Group Share- other total nok million capital reserves equity Balance Sheet at 1 January 2007 * 599 2 351 2 950 Capital increase 20 83 103 Dividend paid for 2006 0-50 -50 Result for the period 0 257 257 Other paid-up share capital - share option scheme from Glitnir Bank hf. 0 7 7 Balance Sheet at 30 September 2007 619 2 648 3 267 Result for the period 0 67 67 Other paid-up share capital - share option scheme from Glitnir Bank hf. 0-5 -5 Capital gain relating to purchase of associate of subsidiary 0 2 2 Balance Sheet at 31 December 2007 619 2 712 3 331 Result for the period 0-185 -185 Other Paid-up Share capital - Share option Sheme from Glitnir Bank hf. 0 1 1 Balance Sheet at 30 September 2008 619 2 528 3 147 *Share capital is shown in the amount it would have been if the merger had taken place on 1 January 2007. [ 7 ]

Cash Flow Statement Group nok million 30.09.08 30.09.07 full year 2007 Cash flows from operating activities Interest/commission received and fees received from customers 1 718 457 1 056 Interest/commission paid and fees paid to customers -223-92 -811 Interest received on other investments 219 154 217 Interest paid on other loans -1 552-1 135-1 580 Receipts/disbursements (-) on loans and advances to customers 5 855-1 231-1 703 Receipts/payments on customer deposits and debt -3 103 1 888 2 005 Receipts/payments (-) on liabilities to credit institutions -1 799 1 100 2 645 Receipts/payments (-) on securities in issue -929-849 -1 122 Other receipts/payments -258-157 -59 Payments to suppliers for goods and services -211-130 -129 Payments to employees, pensions and social security expenses -180-108 -149 Tax paid -88-104 -104 Net cash flow from operating activities -550-207 266 Cash flows from investing activities Receipts/payments (-) on balances with credit institutions -175 59 80 Receipts/payments (-) on short-term investment securities 154-52 -32 Receipts/payments (-) on long-term investment securities -15 2 122 Sale of operating assets, etc 0 17 17 Purchase of operating assets, etc -15-12 -266 Net cash flow from investing activities -51 14-79 Cash flows from financing activities Dividends paid 0-50 -50 Changes in capital (share issues, etc) 0 104 104 Net cash flow from financing activities 0 54 54 Net cash flow for the period -601-139 241 Cash and balances with central banks at 1 January 832 591 591 Cash and balances with central banks at 30 September 231 452 832 [ 8 ]

Notes 1. Accounting policies The financial statements for the third quarter have been prepared in compliance with IFRS, including IAS 34 on Interim Financial Reporting. Both the financial statements for the Group and for the Parent Bank are based on IFRS. A description of the accounting policies applied by the Group in preparing the financial statements is provided in the Annual Report for 2007. Glitnir Bank ASA and Bolig- og Næringsbanken ASA merged with effect from 1 January 2008. The merger is treated as a business continuity merger, and comparative figures for 2007 have been restated as though the two companies had been merged also in 2007. See separate note for further details. 2. Other operating income Group nok million Q3 2008 Q3 2007 30.09.08 30.09.07 full year 2007 Guarantee commission 1 2 4 6 8 Net commission income/expense 4 3 1 14 25 Net gain/loss on securities -153 5-145 9 12 Net gain/loss on foreign exchange -210 67-335 418 278 Operating income, real estate 0 0 1 1 1 Other operating income 14 0 56 1 22 Total other operating income and net gain/(loss) -344 77-418 449 346 Net gain/loss on foreign exchange is mainly attributable to effects of exchange gains/losses which arise when borrowing and lending in foreign currencies is translated at the current exchange rate. Forward exchange contracts are measured at fair value with value changes carried through profit or loss. Exchange gain/loss effects on this line will therefore be wholly or partially equalled by effects with sign reversed under the line Change in value of financial instruments carried at fair value through profit or loss. In the third quarter it is written down NOK 155 million at bonds to parent bank, Glitnir Banki hf, specified under net gain/loss on securities. 3. Funding The Group had issued bonds and certificates in the nominal amount of NOK 8 624 million so far in 2008, either as new issues or increases in existing tap issues. Fixed-rate loans are measured at fair value on the balance sheet, while variable-rate loans are measured at amortised cost. Group nok million certificates bonds total Net debt (nominal) at 1 January 2008 2 944 15 909 18 853 New issues 510 0 510 Increase in existing issues 675 261 936 Purchase and maturity of existing issues -1 874-692 -2 566 Net debt (nominal) at 31 March 2008 2 255 15 478 17 733 New issues 0 7129 7129 Increase in existing issues 0 50 50 Purchase and maturity of existing issues -884-6249 -7133 Net debt (nominal) at 30 June 2008 1 371 16 408 17 779 New issues 0 0 0 Increase in existing issues 0 0 0 Purchase and maturity of existing issues -333-360 -693 Net debt (nominal) at 30 September 2008 1 038 16 048 17 086 [ 9 ]

Liabilities to credit institutions Group nok million total New borrowings during the period - EUR million 0 Loans redeemed during the period - EUR million 0 Unutilised credit facilities - EUR million 0 Unutilised credit facilities - NOK million 0 4. Dividends paid At the Annual General Meeting on 28 April 2008, it was decided not to distribute a dividend for 2007. For 2006 a dividend was distributed of NOK 5.13 per share, in total NOK 50 million, in the acquiring company. 5. Write-downs General In connection with the sale of Glitnir Bank ASA in October 2008, the subsidiaries Glitnir Privatøkonomi AS (GPØ) and Glitnir Eiendomsfinans AS (GEF) were sold. From and including the fourth quarter, these companies will be regarded as discontinued operations under IFRS 5. As a result of the sale, the Bank has written down all recognised values related to the investments in GPØ and GEF in the third quarter. The selling price was a function of the financial turmoil and the period of time that was available. gpø During 2006 and 2007 Glitnir Bank increased its holding and obtained control over the company Norsk Privatøkonomi ASA, which was later renamed Glitnir Privatøkonomi AS (GPØ). On a commission basis, GPØ brokers third-party financial services, including services from Glitnir Bank ASA. GPØ was sold in October, and the bank has written down all recognised values related to the investment in GPØ in the third quarter. The deferred tax asset related to negative earnings was expensed in its entirety in the third quarter. In total, write-downs in the third quarter amount to NOK 139 million, and are included in the income statement line Depreciation, amortisation and write-downs and Income tax expense with NOK 122 million and NOK 17 million respectively. During the 1st half-year of 2008 a total of NOK 78 million was written down in connection with intangible assets, including licensing, customer lists and goodwill. The write-down is included in the income statement line Depreciation, amortisation and write-downs. gef On 31 December 2007 Glitnir Eiendomsfinans AS (GEF), which was a wholly owned subsidiary of Glitnir Bank ASA, acquired the entire business (everything the company owned) of Eiendomsfinans AS. GEF was sold in October, and the Bank has written down all recognised values related to the investment in GEF in the third quarter. Impairment of goodwill and intangible assets amounted to NOK 45 million and is included in the income statement line Depreciation, amortisation and write-downs. In addition, the book equity in GEF has been written down against receivables by NOK 11 million, and is included in the income statement line Other operating expenses. [ 10 ]

6. Disclosures relating to the merger Bolig- og Næringsbanken ASA (the acquiring company) merged as of 1 January 2008 with Glitnir Bank ASA (the acquired company), and changed the name to Glitnir Bank ASA. The acquired company, Glitnir Bank ASA, operates a banking business in the Parent Bank, and a factoring business through the wholly owned subsidiary Glitnir Factoring AS. All activities belonging to the merged companies have been continued within the merged group. Following the merger, the banking business from the acquired company has been integrated with the banking business in the acquiring company. The merger between Bolig- og Næringsbanken ASA (acquirer) and Glitnir Bank ASA (acquiree) as of 1 January 2008 is a merger under joint control since the parent companies in the merged group were both wholly owned by Glitnir Banki h.f. of Iceland at the date of merger. As a consequence, the merger has been conducted as a business continuity merger in which capitalised assets under IFRS at 31 December 2007 for the merging groups formed the base for the merger balance sheet for the new group at 1 January 2008. The acquiree company, Glitnir Bank ASA, did its financial reporting in 2007 under generally accepted accounting principles in Norway (N-GAAP) and has therefore restated the balance sheet figures to IFRS as of 31 December 2007 as the basis for the merger balance sheet. Comparative figures for 2007 in the merged group have been restated as though the merged groups were also a group reporting under IFRS in 2007. The last-mentioned applies likewise to the comparative figures for the Parent Bank. Because the merger was conducted as a business continuity merger, no new goodwill arose as a result of the business integration between the merging companies. The acquiring company has however recognised goodwill relating to goodwill recognised in the acquired company in connection with an earlier business integration in the acquired company. In the acquiring company s opinion, recoverable amounts of goodwill exceed the amounts recognised, and the conclusion is not sensitive with regard to the assumptions used when calculating recoverable amounts. In connection with the merger, the acquiring company issued 2 626 131 shares with a face value of NOK 50 each, in total NOK 131 million. In addition, the share premium reserve has increased by NOK 68 million. Merger balance sheet at 1 January 2008 Group nok million Acquirer acquiree merger effects merger balance Deferred tax assets 51 3 54 Intangible assets 263 24 287 Interests in associates 0 0 0 Tangible fixed assets 81 15 96 Repossessed properties 15 0 15 Loans and advances 46 568 6 531 53 099 Prepayments and accrued income 43 20 63 Financial derivatives 625 378 1 003 Short-term investment securities 2 572 340 2 912 Cash and balances with credit institutions 638 194 832 Total assets 50 856 7 505 58 361 Share capital 488 116 15 619 Other undistributable equity 0 83-15 68 Retained earnings 2 163 481 2 644 Minority interest 0 0 0 Total equity 2 651 680 3 331 Subordinated loan capital 1 268 201 1 469 Liabilities to credit institutions 9 997 588 10 585 Debt securities in issue 18 868 62 18 930 Accrued expenses and deferred income 287 44 331 Other short-term liabilities 142 91 233 Financial derivatives 884 336 1 220 Customer deposits and accounts payable to customers 16 759 5 503 22 262 Total liabilities 48 205 6 825 55 030 Total equity and liabilities 50 856 7 505 58 361 [ 11 ]

Restatement of comparative figures, 2007 Consolidated Income Statement The following statement shows how the comparative figures for the 2007 Consolidated Income Statement have been restated from the results previously presented for Bolig- og Næringsbanken ASA for 2007. Group nok million Acquirer Acquiree total Interest and similar income 2 733 441 3 174 Interest expense and similar charges 2 242 282 2 524 Net income from interest and credit commissions 491 159 650 Change in value of fin instr carried at fair value -225 17-208 Other operating income 312 34 346 Total other operating income 87 51 138 Salaries and general administrative expenses 223 81 304 Ordinary depreciation 19 2 21 Other operating expenses 30 8 38 Other gains and losses -18 0-18 Total other operating expenses 254 91 345 Operating profit before impairment losses 324 119 443 Impairment losses on loans and advances 1-12 -11 Operating profit after impairment losses 323 131 454 Income from interests in associates -7 0-7 Profit before income tax 316 131 447 Income tax expense 87 36 123 Net profit for the period 229 95 324 [ 12 ]

Income Statement parent bank nok million note Q3 2008 Q3 2007 30.09.08 30.09.07 full year 2007 Interest and similar income 645 578 2 029 1 598 2 286 Interest expense and similar charges 568 490 1 789 1 354 1 952 Net income from interest and credit commissions 77 88 240 244 334 Change in value of fin instr carried at fair value 190-75 364-429 -278 Other operating income and net gain/(loss) 2-374 81-489 465 329 Total other operating income -184 6-125 36 51 Salaries and general administrative expenses 69 39 206 128 176 Depreciation, amortisation and write-downs 4 4 13 12 17 Other operating expenses 3 4 6 11 16 Other gains and losses 0 0 0-1 -1 Total other operating expenses 76 47 225 150 208 Operating profit before impairment losses -183 47-110 130 177 Impairment losses on loans and advances 45-3 53-6 -10 Operating profit after impairment losses -228 50-163 136 187 Income from interests in group companies 5-202 0-273 0 0 Profit before income tax -430 50-436 136 187 Income tax expense -64 13-45 38 49 Net profit for the period -366 37-391 98 138 Earnings per share (whole NOK) (29.56) 2.99 (31.58) 7.92 11.15 [ 13 ]

balance sheet parent bank nok million note 30.09.08 30.09.07 31.12.07 Deferred tax assets 6 0 4 Intangible assets 9 17 15 Interests in group companies 1 941 1 791 1 935 Tangible fixed assets 76 79 78 Repossessed properties 4 0 0 Loans and advances 18 154 28 261 28 949 Prepayments and accrued income 114 72 44 Financial derivatives 1 003 1 046 986 Short-term investment securities 3 279 3 401 3 378 Cash and balances with credit institutions 12 564 10 147 10 827 Total Assets 37 150 44 814 46 216 Share capital 6 619 619 619 Retained earnings 1 249 1 603 1 639 Total equity 6 1 868 2 222 2 258 Deferred tax 0 1 0 Subordinated loan capital 1 388 1 464 1 468 Liabilities to credit institutions 3 10 608 9 111 10 584 Debt securities in issue 3 2 434 8 328 8 237 Accrued expenses and deferred income 111 74 137 Other short-term liabilities 1 169 62 127 Financial derivates 1 151 1 257 1 135 Customer deposits and accounts payable to customers 18 421 22 295 22 270 Total liabilities 35 282 42 592 43 958 Total equity and liabilities 37 150 44 814 46 216 The Board of Directors Trondheim, 13 november 2008 [ 14 ]

Changes in Equity parent bank Share share premium other paid-up other total nok million capital reserve share capital reserves equity Balance Sheet at 1 January 2007* 599-15 282 1 199 2 065 Capital increase 20 83 0 0 103 Dividend paid for 2006 0 0 0-50 -50 Result for the period 0 0 0 97 97 Other paid-up share capital - share option scheme from Glitnir Bank hf. 0 0 7 0 7 Balance Sheet at 30 September 2007* 619 68 289 1 246 2 222 Result for the period 0 0 0 41 41 Other paid-up share capital - share option scheme from Glitnir Bank hf. 0 0-5 0-5 Balance Sheet at 31. December 2007 619 68 284 1 287 2 258 Result for the period 0 0 0-391 -391 Other paid-up share capital - share option scheme from Glitnir Bank hf. 0 0 1 0 1 Balance Sheet at 30. September 2008 619 68 285 896 1 868 *Share capital is shown in the amount it would have been if the merger had taken place on 1 January 2007. [ 15 ]

Cash Flow Statement parent bank nok million 30.09.08 30.09.07 full year 2007 Cash flows from operating activities Interest/commission received and fees received from customers 840-328 -115 Interest/commission paid and fees paid to customers -275-92 -813 Interest received on other investments 503 172 242 Interest paid on other loans -985-766 -1 070 Receipts/disbursements (-) on loans and advances to customers 10 705-2 967-3 381 Receipts/payments on customer deposits and debt -3 146 1 900 2 930 Receipts/payments (-) on liabilities credit institutions -1 156 1 100 1 729 Receipts/payments (-) on securities in issue -4 580 169 176 Other receipts/payments -272-141 9 Payments to suppliers for goods and services -125-99 -136 Payments to employees, pensions and social security expenses -80-69 -101 Tax paid -25-29 -25 Net cash flow from operating activities 1 403-1 150-555 Cash flows from investing activities Receipts/payments (-) on balances with credit institutions -1 910 922 917 Receipts/payments (-) on short-term investment securities 154-52 -32 Receipts/payments (-) on long-term investment securities -369 0-110 Purchase of operating assets, etc -10-11 -11 Net cash flow from investing activities -2 135 859 764 Cash flow from financing activities Dividends paid 0-50 -50 Changes in capital (share issues, etc) 0 103 103 Net cash flows from financing activities 0 53 53 Net cash flow for the period -732-238 262 Cash and balances with central banks at 1 January * 752 490 490 Cash and balances with central banks at 30 September 20 252 752 * For the Parent Bank, this relates to deposits with Norges Bank and cash in hand. [ 16 ]

Notes 1. Accounting policies See the description for the Group. All accounting policies described there also apply to the Parent Bank. 2. Other operating expenses parent Bank nok million Q3 2008 Q3 2007 30.09.08 30.09.07 full year 2007 Guarantee commission 1 2 4 6 8 Net commission income/expenses 2 2-4 12 19 Net gain/loss on securities -154 4-145 9 12 Net gain/loss on foreign exchange -227 72-358 436 287 Operating income, real estate 0 0 0 1 1 Other operating expenses 4 1 14 1 2 Total other operating expenses and net gain/(loss) -374 81-489 465 329 Net gain/loss on foreign exchange is mainly attributable to effects of foreign exchange gains/losses which arise when borrowing and lending in foreign currencies is translated at the current exchange rate. Forward exchange contracts are measured at fair value with value changes carried through profit or loss. Exchange gain/loss effects on this line will therefore be wholly or partially equalled by effects with sign reversed under the line for Change in value of financial instruments carried at fair value through profit or loss. In the third quarter it is written down NOK 155 million at bonds to parent bank, Glitnir Banki hf, specified under net gain/loss on securities. 3. Funding The Parent Bank had issued no bonds or certificates so far in 2008. Fixed-rate loans are measured at fair value on the balance sheet, while variable-rate loans are measured at amortised cost. parent bank nok million certificates bonds total Net debt (nominal) at 1 January 2008 2 394 5 765 8 159 Purchase and maturity of existing issues -1 324-46 -1 370 Net debt (nominal) at 31 March 2008 1 070 5 718 6 788 New issues 0 0 0 Increase in existing issues 0 0 0 Purchase and maturity of existing issues -874-2994 -3868 Net debt (nominal) at 30 June 2008 196 2 724 2 920 New issues 0 0 0 Increase in existing issues 0 0 0 Purchase and maturity of existing issues -196-94 -290 Net debt (nominal) at 30 September 2008 0 2 630 2 630 [ 17 ]

Liabilities to credit institutions parent bank nok million total Newborrowing during the period - EUR million 0 Loans redeemed during the period - EUR million 0 Unutilised credit facilities - EUR million 0 Unutilised credit facilities - NOK million 0 4. Dividends paid At the Annual General Meeting on 28 April 2007, it was decided not to distribute a dividend for 2007. For 2006 a dividend was distributed of NOK 5.13 per share, in total NOK 50 million, in the acquiring company. 5. Write-downs As described in Note 5 to the consilidatet financial statements, Glitnir Privatøkonomi AS (GPØ) and Glitnir Eiendomsfinans AS (GEF) was sold in October. This means that the bank has written down all recognised values related to the investments in GPØ and GEF in the third quarter to NOK 0, with NOK 186 million for GPØ and NOK 16 million for GEF for the third quarter. The write-down is included in the income statement line Depreciation, amortisation and write-downs. [ 18 ]

6. Disclosures relating to the merger For a description of the merger between Bolig- og Næringsbanken ASA (the acquiring company) and Glitnir Bank ASA (the acquired company) as of 1 January 2008, see the description in the notes to the consolidated financial statements. Merger balance sheet at 1 January 2008 parent bank nok million Acquirer Acquiree Merger effects Merger balance Deferred tax assets 1 3 0 4 Intangible assets 15 0 0 15 Interests in group companies 1 881 54 0 1 935 Interests in associates 0 0 0 0 Tangible fixed assets 76 2 0 78 Repossessed properties 0 0 0 0 Loans and advances 22 608 6 341 0 28 949 Prepayments and accrued income 31 13 0 44 Financial derivatives 608 378 0 986 Short-term investment securities 3 023 355 0 3 378 Cash and balances with credit institutions 10 633 194 0 10 827 Total Assets 38 876 7 340 0 46 216 Share capital 488 116 15 619 Other undistributable equity 0 83-15 68 Retained earnings 1 101 470 0 1571 Total equity 1 589 669 0 2 258 Subordinated loan capital 1 268 201 0 1 469 Liabilities to credit institutions 9 997 587 0 10 584 Debt securities in issue 8 175 62 0 8 237 Accrued expenses and deferred income 100 37 0 137 Other short-term liabilities 120 7 0 127 Financial derivatives 798 336 0 1 134 Customer deposits and debt 16 829 5 441 0 22 270 Total liabilities 37 287 6 671 0 43 958 Total equity and liabilities 38 876 7 340 0 46 216 [ 19 ]

Restatement of comparative figures, 2007 Income Statement The statement below shows how comparative figures for the 2007 Income Statement have been restated from the results previously presented for Bolig- og Næringsbanken ASA for 2007. parent bank nok million Acquirer Acquiree total Interest and similar income 1 873 413 2 286 Interest expense and similar charges 1 670 282 1 952 Net income from interest and credit commissions 203 131 334 Change in value of fin instr carried at fair value -295 17-278 Other operating expenses 300 29 329 Total other operating expenses 5 46 51 Salaries and general administrative expenses 116 61 177 Ordinary depreciation 15 1 16 Other operating expenses 9 6 15 Other gains and losses -1 0-1 Total other operating expenses 139 68 207 Operating profit before impairment losses 69 109 178 Impairment losses on loans and advances 2-12 -10 Operating profit after impairment losses 67 121 188 Income from interests in associates 0 0 0 Income from interests in group companies 0 0 0 Profit before income tax 67 121 188 Income tax expense 16 34 50 Net profit for the period 51 87 138 [ 20 ]

[ 21 ] Styrets beretning / BNbank årsberetning 2007 glitnir bank asa Onr. 914 864 445