Presentation SpareBank 1 Gruppen 24 October - Kirsten Idebøen, Idebøen CEO
Key figures Pre-tax profit for the quarter (MNOK)* 529 Pre-tax profit for the year-to-date (MNOK)* 1,216 376 320 676 706 325-8 2010 2011 2010 2011 Annualised return on equity (%) Capital adequacy ratio as of the end of the quarter (%) 20.5 16.7 14.6 15.8 14.0 14.6 15.0 12.7 7.0 2010 2011 Q4 Q1 2 * For the purposes of comparison, the group's pre-tax results for 2010- are shown excluding SpareBank 1 Markets
Solid improvement in the overall business result compared with last year 814 YTD YTD 486 421 380 7 0 31 21 Life insurance business areaa P&C Insurance business areaa ODIN Forvaltning Receivables management 3
Insurance business area Record profits for insurance 4
Insurance business area (life and P&C combined) Low claims ratio and good profitability Gross combined ratio - Risk insurance for the quarter (%) Combined ratio risk insurance 94.5 95.2 93.9 92.7 95.5 89.1 21.7 14.1 17.3 19.1 19.1 24.8 83.4 82.6 18.5 20.1 67.8 17.5 As of H1 78.0% 83.0% 72.8 81.1 76.6 73.6 76.4 64.3 64.9 62.6 50.3 82.6% 85.3% 85.5% 88.2% 2011 Q4 2011 Q1 Net claims ratio Q4 Net cost ratio Q1 Actual cost effects of merging g business areas (MNOK) 214 225 N/A 85.0% N/A 89.9% *SpareBank 1's figures for risk insurance include SpareBank 1 Skadeforsikring Group and personal risk products legally belonging to SB1 Forsikring AS (formerly SB1 Liv AS) 148 179 2014 2015 5 Actual annual effect as at 30/09/13 Target total effect
SpareBank 1 Forsikring AS (life insurance business) Profit improvement and solid buffers Pre-tax profit for the quarter (MNOK) Buffer capital trend, per quarter (%) 202 16.3 14.8 14.8 15.5 13.6 12.8 145 147 137 17.8 99 Q1 Q4 Q1 Q4 Q1 Key figures as of ( ) in MNOK Gross due premium income: 2,950 (2,712) Risk result: 292 (202) Administration result: -2 (-30) Investment result: 305 (218) Core capital in excess of minimum Additional provisions Interim profit Securities adjustment reserve Market share personal insurance ( ) Life insurance, disability pension and disability capital Ranking Company Market share New premiums 258 (221) MNOK 1 - SpareBank 1 26.2% 2% (29.2%) 2%) 2 - Gjensidige 20.5% (18.6%) 3 - Frende 18.1% (12.1%) Pre-tax profit: 486 (380) 4 - Nordea 14.1% (16.2%) 6 5 - Eika 7.6% (7.6%)
SpareBank 1 Skadeforsikring Group (P&C insurance business) Process improvements, better risk composition and runoff gains contribute to increased profitability Pre-tax profit for the quarter (MNOK) 265 376 Actual effects of P&C costs project (MNOK) 135 141 124 140 169 175 158 185 198 174 Q4 Q1 Q1 Q4 Actual annual effect Target total effect 7 Key figures as of ( ) in MNOK Gross premium income: 4,138 (4,317) Insurance result: 420 (37) Pre-tax profit: 814 (421) Run-off gains I MNOK Q1 101.6 triggered by process improvements 125.7 triggered by process improvements triggered by process improvements. 251.0 MNOK 125 triggered by sale of Runoff og Marine-business
ODIN Forvaltning AS Increased total assets and costs reducing measures contributed to improved result 8
ODIN Forvaltning Increased total assets and costs reducing measures contributed to improved result Pre-tax profit for the quarter (MNOK) Return on equity funds for the year-to-date (%) 8.4 7.7 15.0 41.9.6 35.0 36.0 36.0 37.5 Fund 32.9 Benchmark 7.5 13.1 29. 23.0 27.5 26.6 25.3 27.0 3.2 17.2 27.7 13.2 28.1 20.0 22.6 19.7 Q1 ODIN Norge ODIN Sverige ODIN Finland ODIN Norden ODIN Europa ODIN Europa SMB ODIN Global ODIN Emerging Markets ODIN Maritim ODIN Offshore ODIN Eiendom I Key figures as of ( ) in MNOK Operating income: 210 (195) Pre-tax profit: 31 (0) Total assets: 30,416 (24,370) Market share equity and combination funds (%) Market share equity fund Market share combination fund 82 8.2 8.1 86 8.6 4.4 5.0 5.0 9 31/12/ 30/06/ 30/09/
Receivables management Good earnings in factoring and portfolio, deficit in debt collection business 10
Receivables management Good earnings in factoring and portfolio, deficit in debt collection business Pre-tax profit for the year-to-date (MNOK) 5 8 Q4 4 4 Q1-1 Factoring and Portfolio - Income growth due to higher lending volume and client turnover - Greater portfolio volume and good collection Debt collection - adjusted for non-recurring items, the pre-tax result is on a par with last year - Strong competition in the market - Positive trend in number of cases, increased debt collection income - Restructuring costs squeeze accounting result 11
Best when it comes to return on equity Average 2010- SpareBank 1 Gruppen 20.5% 12.8% Handelsbanken 14.2% 13.8% Gjensidige 13.3% 14.2% Storebrand 12.9% 8.1% DNB 12.1% 12.2% Nordea 11.2% 11.5% Danske Bank N/A 2.9% Source: The companies' financial statements. Return on equity after tax measured against a selected sample of mixed Nordic financial groups 12
Thank you for your time! Kirsten Idebøen 13
Appendix
The SpareBank 1 Alliance has a solid business model with its proximity to its customers and a conservative risk profile Shareholders and distributors SamSpar 19.5% 19.5% 19.5% 12% 19.5% 10% Products, commissions and dividend Sales SpareBank 1 Gruppen AS BN Bank Bank 1 Oslo Akershus SpareBank 1 Skadeforsikring (100%) ODIN Forvaltning (100%) Companies in the SpareBank 1 Alliance SpareBank 1 Boligkreditt EiendomsMegler 1 SpareBank 1 Næringskreditt SpareBank 1 Forsikring SpareBank 1 Medlemskort (100%) (100%) Conecto (100%) SpareBank 1 Gruppen Finans (100%) Alliance cooperation Brand, technology, expertise, processes, best practice and purchasing. Resource centres: Payment/Trondheim, credit/stavanger, training/tromsø 15
SpareBank 1 Gruppen Results Year to date Year to date Figures in MNOK Part of result from subsidiaries before tax -SpareBank 1 Forsikring AS 201.7 144.6 486.2 380.4 -SpareBank 1 Skadeforsikring Group 376.0 185.0 814.4 421.0 -ODIN Forvaltning AS 15.0 1.9 31.1 0.0 -SpareBank 1 Medlemskort AS 2.6 2.8 8.2 7.9 -Receivables management 4.0 4.7 7.0 20.8 -Correction Group -23.1 0.1-18.5-10.8 Total operating costs (parent company) -22.6 2.9-50.8-56.6 Net investment charges (parent company) -23.9-21.6-58.8-56.1 Amortisation -0.9 0.0-2.8 0.0 Pre-tax profit from continuing i operations *) 528.88 320.4 1 216.11 706.5 Income tax expense from continuing operations -107.0-46.1-245.2-103.8 Profit for the period from continuing operations 421.7 274.3 971.0 602.7 Profit from discontinued operations **) -3.6-46.6-150.7-111.7 Net result for the period 418.2 227.77 820.3 491.0 *) For the purposes of comparison, the figures for and in are shown excluding SpareBank 1 Markets. **) Includes the result for SpareBank 1 Markets for the first 9 months and the write-down of the shares in SpareBank 1 Markets due to the sale of SpareBank 1 Markets in. 16
SpareBank 1 Gruppen Key figures Q1 Q4 Q1 Year Group Net result for the period (MNOK) 418.2 87.1 315.0-47.6 227.7 63.4 199.9 443.4 Annualised return on equity (%) 20.5 % 15.6 % 23.1 % 8.7 % 12.7 % 10.5 % 15.9 % 8.7 % Capital adequacy ratio, accumulated (%) 15.0 % 14.6 % 14.0 % 14.6 % 16.7 % 15.9 % 14.8 % 14.6 % Core capital adequacy ratio, accumulated (%) 13.6 % 13.1 % 12.6 % 13.1 % 15.3 % 14.5 % 13.1 % 13.1 % SB1 Forsikring Risk result (MNOK) 106.8 104.3 80.7 89.8 79.7 92.6 29.4 291.5 Administration result (MNOK) 9.1-10.9-0.2-26.7-3.1-19.0-7.5-56.2 Investment result (MNOK) 101.0 38.1 166.3 51.2 97.3 47.0 73.2 268.8 Net result for the period (MNOK) 158.8 93.4 136.4-154.4 128.7 89.1 125.8 189.2 Buffer capital in % of insurance provisions*, accumulated (%) 17.8 % 15.5 % 14.8 % 13.6 % 16.3 % 14.8 % 12.8 % 13.6 % Capital adequacy ratio, accumulated (%) 17.8 % 17.6 % 18.0 % 18.5 % 19.0 % 20.0 % 17.5 % 18.5 % Securities adjustment reserve, accumulated (MNOK) 923.4 718.5 701.11 590.00 555.55 389.6 465.9 590.00 SB1 Skadeforsikring Group Operating result before finance (MNOK) 230.3 98.1 91.7 25.8 24.9 31.1-19.5 62.4 Net financial income (MNOK) 129.1 70.7 170.1 119.8 172.8 51.0 194.0 537.6 Net result for the period (MNOK) 302.3 115.9 219.4 151.8 142.6 42.2 139.5 476.1 Claims ratio, net (%) 64.3 % 73.4 % 73.3 % 69.1 % 81.4 % 78.0 % 84.9 % 78.3 % Cost ratio, net (%) 16.4 % 18.9 % 18.3 % 24.44 % 20.22 % 18.5 % 16.7 % 20.00 % Combined ratio, net (%) 80.7 % 92.3 % 91.7 % 93.4 % 101.5 % 96.5 % 101.6 % 98.2 % Portfolio (MNOK) 5 283 5 308 5 325 5 446 5 455 5 407 5 328 5 446 ODIN Forvaltning Management fees (MNOK) 74.5 69.2 66.7 62.5 64.0 63.4 67.2 257.1 Net result for the period (MNOK) 10.8 5.6 6.1-18.6 1.4-1.0-0.3-18.5 Total assets under management, accumulated (MNOK) 30 416 27 318 27 741 24 803 24 370 23 541 26 173 24 803 Market share equity fund, accumulated (%) 8.6 % 8.1 % 8.4 % 8.2 % 8.3 % 8.4 % 8.9 % 8.2 % Market share combination fund, accumulated (%) 5.0 % 5.0 % 4.8 % 4.4 % 4.0 % 4.1 % 3.8 % 4.4 % Receivables management Net result for the period (MNOK) 2.9-0.7 2.9 6.1 3.4 6.0 5.5 21.0 *) Buffer capital as at Q4 is shown after profits have been allocated 17
SpareBank 1 Gruppen Quarterly results Q1 Q4 Q1 Q4 Q1 Q4 Figures in MNOK 2011 2011 2011 2011 2010 2010 Part of result from subsidiaries before tax - SpareBank 1 Forsikring 201.7 137.0 147.4 99.0 144.6 141.8 94.1 98.1 77.7 109.0 129.4 72.5 85.8 - SpareBank 1 Skadeforsikring Group 376.0 173.6 264.8 197.9 185.0 70.4 165.5 167.6-88.8 56.2 50.3 307.5 253.9 - ODIN Forvaltning AS 15.0 7.7 8.4-20.3 1.9-1.5-0.5-8.5 6.3 12.2 11.9 16.5 17.0 - SpareBank 1 Medlemskort AS 2.6 1.9 3.7 2.4 2.8 2.4 2.8 4.5 2.0 2.5 3.1 1.9 2.7 - Receivables Management 4.0-1.0 4.0 8.1 4.7 8.4 7.7 8.1 14.5 5.2 9.0 7.9-3.6 - Correction Group -23.1 5.5-0.9-1.3 0.1-10.0-0.9-4.2 14.1 12.9-3.2-7.7-8.7 Net result before tax from subsidiaries *) 576.2 324.8 427.5 285.7 339.1 211.5 268.6 265.6 25.7 198.0 200.5 398.6 347.1 Total operating costs (parent company) -22.6-5.1 51-23.0-18.4 29 2.9-26.1-33.5-29.4-16.0-15.6-27.7 7-16.5 40.7 Net investment charges (parent company) -23.9-15.5-19.4-18.6-21.6-17.7-16.8-19.2-18.0-15.0-7.1-15.6-11.4 Amortisation -0.9-1.8 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 PRE-TAX PROFIT FROM CONTINUING OPERATIONS *) 528.8 302.3 385.1 248.6 320.4 167.8 218.3 217.1-8.2 167.5 165.7 366.5 376.4 Income tax expense from continuing operations -107.0-85.9-52.2-283.6-46.1-71.8 14.2 121.3 41.3-54.3-11.4-25.8-96.5 PROFIT FOR THE PERIOD FROM CONTINUING OPERATIONS 421.7 216.3 332.9-34.9 274.3 96.0 232.4 338.4 33.0 113.2 154.3 340.6 279.9 Profit from discontinued operations **) -3.6-129.3-17.8-12.7-46.6-32.6-32.5-57.4-37.3-15.9-2.4-16.6-20.9 NET RESULT FOR THE PERIOD 418.2 87.1 315.0-47.6 227.7 63.4 199.9 281.0-4.3 97.2 151.9 324.0 259.1 *) The sale of SpareBank 1 Markets was completed as of. For the purposes of comparison, the historical quarterly figures are shown excluding SpareBank 1 Markets. **) The figures for and include the quarterly result for SpareBank 1 Markets and the Group loss/write-down of the shares in SpareBank 1 Markets due to its sale. The figures from Q1-2010 show the result in SpareBank 1 Markets. 18
SpareBank 1 Forsikring AS Results year to date Q1 Year to date Year Figures in MNOK Insurance risk income 431.11 453.1 430.1 380.6 1 314.2 1 110.9 1 613.33 Insurance risk claims - 323.8-343.6-334.4-291.5-1 001.8-898.1-1 303.3 Risk result 107.2 109.5 95.7 89.2 312.5 212.8 310.0 Tecnical allocations - 0.4-5.1-15.0-9.5-20.6-11.0-18.5 Risk result after tecnical allocations 106.8 104.3 80.7 79.7 291.9 201.8 291.5 Reserves -4.3-7.4-10.4 0.0-22.1 0.0-50.6 Risk result after tecnical allocations and reserves 102.5 96.9 70.3 79.7 269.7 201.8 240.9 Fees 208.0 203.7 196.9 192.3 608.5 558.0 747.1 Expenses, exclusive comissions - 128.4-146.0-130.3-130.6-404.8-396.5-541.3 Comissions - 70.5-68.6-66.8-64.8-205.9-191.0-262.1 Administration result 9.1-10.9-0.2-3.1-2.1-29.5-56.2 Net investment income 214.6 154.3 276.5 218.8 645.3 560.5 732.3 Guaranteed interest to policyholders - 113.6-116.2-110.2-121.5-339.9-343.0-463.6 Investment result 101.0 38.1 166.3 97.3 305.4 217.5 268.8 Reserves -34.5-2.8-66.6-32.2-103.8-73.9-94.7 Investment result after reserves 66.5 35.4 99.7 65.0 201.6 143.6 174.1 Compensation guaranteed interest t 51 5.1 45 4.5 41 4.1 67 6.7 13.7 19.11 25.9 Result before additional provisions 183.2 125.9 173.9 148.4 483.0 335.0 384.7 Undistributed profits to customers - 40.5-9.7-63.3-53.3-113.5-96.3-86.8 Return on company's assets 59.1 20.8 36.8 49.6 116.7 141.7 181.5 Net profit to owner before tax 201.7 137.0 147.4 144.6 486.2 380.4 479.4 Taxes -42.9-43.6-11.11-15.9-97.6-36.8-290.22 Net profit/loss for the period 158.8 93.4 136.4 128.7 388.5 343.6 189.2 Key figures Year to date Year Capital adequacy ratio 17.8 % 19.0 % 18.5 % Buffer capital in % of insurance provisions 17.8 % 16.3 % 13.6 %*) 19 *) Buffer capital for is shown after allocation of the year's result.
SpareBank 1 Forsikring AS Results per portfolio year to date Previously Figures in MNOK Group portfolio established individual products Investment choice portfolio Company portfolio Total Risk result 295.5-3.0-0.7 0.0 291.9 Administration result 35.9-19.8-18.2 0.0-2.1 Net investment result 211.3 85.9 6.4 1.8 305.4 Reserves - long life - 125.9 0.0 0.0 0.0-125.9 Compensation interest guarantee 13.7 0.0 0.0 0.0 13.7 Transferred to policyholders -49.7-63.1-0.7 0.0-113.5 Return on company's assets 0.0 0.0 0.0 116.7 116.7 Sum 380.9 0.0-13.2 118.5 486.2 20
SpareBank 1 Forsikring AS Development of premium income Q1 Year to date Year Figures in MNOK Individual annuity and pension insurance 84.8 81.4 79.8 79.6 246.0 224.3 325.3 Individual endowment insurance 164.6 159.8 155.6 154.1 480.0 452.2 607.7 Group pension insurance 95.1 73.7 295.0 95.3 463.8 414.0 528.9 Individual life insurance 61.8 59.7 57.6 56.7 179.1 165.6 223.0 Group life insurance 154.0 151.0 265.6 136.2 570.7 507.5 632.5 Unit Linked - Annuity 11.4 3.0 8.6 8.2 23.0 26.1 34.4 Unit Linked - Endowment 45.3 16.8 33.2 31.6 95.3 103.5 134.7 Defined contribution pension 294.3 301.9 296.0 280.3 892.1 818.5 1 123.8 Total gross due premium income 911.5 847.3 1 191.3 842.0 2 950.1 2 711.6 3 610.2 Premium reserves transferred from other companies 153.0 202.4 98.7 116.8 454.1 413.8 575.2 Reinsurance ceded d - 47.44-46.0-47.5-42.4 4-140.9-112.1 1-154.55 Premium income for own account 1 017.1 1 003.7 1 242.6 916.4 3 263.3 3 013.2 4 030.8 21
SpareBank 1 Forsikring AS Return on customer portfolios with a guarantee as at 30/09/ Value-adjusted return excl. change in value construction : Booked return: 5.9 3.9 Percent 3.4 1.9 2.4 2.8 Percent 2.6 1.9 2.0 2.1 N/A N/A N/A SpareBank 1 Storebrand DNB Nordea N/A N/A N/A SpareBank 1 Storebrand DNB Nordea 22 Source: company presentations
SpareBank 1 Forsikring AS Return on ordinary customer portfolio with guarantee as at 30/09/ Percent Norwegian shares 14.0 Foreign shares 23.5 Money market 20 2.0 Norwegian bonds 3.7 Foreign bonds -0.6 Held to maturity 3.8 Real estate 5.7 23
SpareBank 1 Forsikring AS Balance sheet as of 30/09/ Year to date Year Figures in MNOK Intangible assets 194 138 165 Investments 3 513 3 109 3 140 Reinsurance's part of insurance obligations 223 206 213 Accounts receivable 102 75 105 Other assets 134 170 128 Prepayed liabilities and accrued income 0 0 6 Investments group portfolio 17 972 16 798 17 062 Investments t options portfolio 9 862 7 914 8 239 Total assets 32 001 28 412 29 059 Paid in capital 2 073 2 073 2 073 Other equity 817 772 428 Subordinated loan capital 200 200 200 Insurance obligations - contractual 17 930 16 723 16 953 Insurance obligations - investment options 10 156 8 024 8 347 Provisions for obligations 491 70 275 Premium deposits from reinsurance companies 143 139 139 Other obligations 78 337 553 Accrued liabilities, prepaied income 113 74 90 Total liabilities and equity 32 001 28 412 29 059 24
Asset allocation per portfolio as of 30/09/ 3 (31/12/) SB1 Forsikring AS SB1 Skadeforsikring Group Investment choice portfolio Group portfolio Company portfolio 45.3 (46.3) % 12.8 (12.6) % 40.9 (39.2) % 0.6 (0.7) % 0.2 (0.2) % 18.11 (18.4) % 9.3 (8.2) % 11.0 (10.1) % 99(110)% 9.9 (11.0) 0.4 (0.4) % 54.4 (53.2) % 27.0 (27.8) % 18.7 (19.6) % 66.6 (65.7) % 15.1 (15.8) % 69.7 (70.7) % Stocks Other Bonds NOK 9.9 9 (8.2) billion Stocks Other Stocks Other Real estate Real estate Real estate Bonds - amortized cost Bonds - amortized cost Bonds - amortized cost Bonds - market value Bonds - market value Bonds - market value NOK 17.9 (16.9) billion NOK 3.5 (3.1) billion NOK 11.2 (11.0) billion 25
SpareBank 1 Skadeforsikring Group Results year to date Q1 Year to date Year Figures in MNOK Gross written premium 1 154.0 1 370.8 1 612.9 1 172.6 4 137.7 4 316.8 5 600.4 Net earned premium 1 211.3 1 174.0 1 193.1 1 287.9 3 578.5 3 779.7 5 073.1 Net incurred claims -778.5-862.0-875.0-1 049.8-2 515.5-3 076.2-3 969.7 Net insurance operating costs -199.2-221.4-218.7-258.0-639.2-699.0-1 014.1 Other insurance income/costs 0.7 6.7 5.2 11.3 12.7 14.2 14.3 Changes in other technical reserves -4.0 0.7-13.0 33.5-16.2 17.9-41.2 Operating result before finance 230.3 98.1 91.7 24.9 420.2 36.5 62.4 Net financial income 129.1 70.7 170.1 172.8 369.9 417.8 537.6 Other costs 10.0 0.0 0.0 0.0 10.0 0.0-0.1 Result before changes in security reserve 369.5 168.88 261.8 197.77 800.1 454.3 599.99 Changes in security reserve 6.5 4.8 3.0-12.7 14.3-33.4 19.0 Pre-tax profit 376.0 173.6 264.8 185.0 814.4 421.0 618.9 Taxes -73.7-57.7-45.4-42.4-176.8-96.7-142.7 Net profit/loss for the period 302.3 115.9 219.4 142.6 637.6 324.3 476.1 Key figures Q1 Year to date Year Figures in percentage Claims ratio, net 64.3 % 73.4 % 73.3 % 81.5 % 70.3 % 81.4 % 78.3 % Cost ratio, net 16.4 % 18.9 % 18.3 % 20.0 % 17.9 % 18.5 % 20.0 % Combined ratio, net 80.7 % 92.3 % 91.7 % 101.5 % 88.2 % 99.9 % 98.2 % Capital adequacy ratio 39.0 % 34.6 % 37.1 % 26
ODIN Forvaltning Results year to date Q1 Year to date Year Figures in MNOK Management fees 74.5 69.2 66.7 64.0 210.3 194.6 257.1 Total operating income 74.5 69.2 66.7 64.0 210.3 194.6 257.1 Salaries -28.7-29.2-23.7-24.8-81.6-75.3-110.1 Depreciations -6.2-6.3-6.4-6.3-18.9-19.6-26.0 Other operating costs -24.9-26.3-28.4-31.2-79.77-100.6-130.5 Total operating costs -59.9-61.8-58.5-62.3-180.2-195.5-266.6 Operating profit 14.6 7.4 8.2 1.7 30.2-0.9-9.6 Net financial income 0.3 0.4 0.3 0.2 1.0 0.9-10.8 Pre-tax profit 15.0 7.7 8.4 1.9 31.1 0.0-20.4 Taxes -4.1 41-2.1 21-2.3 23-0.5 05-8.5 85 02 0.2 19 1.9 Net profit/loss for the period 10.8 5.6 6.1 1.4 22.6 0.1-18.5 27