Presentation of 1st Quarter Report 2009 Tromsø/Oslo, 29. april 2009 1
SpareBank 1 Nord-Norge Group Headoffice: Organization: Regional branches: Tromsø 6 regions Hammerfest Tromsø* Harstad Bodø Mo i Rana Local branches: 81 Number of man-years, Group: 811 *Including Representation office in Northwest Russia. 2
3 Organisation of the financial services group
Financial targets Financial strength targeted capital adequacy ratio (agreed in June 2008): SpareBank 1 Nord-Norge s confidence level has been fixed at 99.9 per cent. The Group s ambition is to increase the confidence level to 99.97 per cent by 2010. One of the strategic targets is that SpareBank 1 Nord-Norge shall be an incontestably strong bank financially. The Group s agreed target ratio for capital adequacy shall be based on the Group s internal process for the calculation of capital requirements (ICAAP) and shall be reviewed annually. The capital adequacy target is expressed in accordance with currently valid laws relating to capital adequacy. SpareBank 1 Nord-Norge s capital coverage target ratios are as follows: Core capital coverage: 9 per cent or higher Total capital coverage (capital adequacy) 12 per cent or higher 4
Capital adequacy ratio - Group (Amounts in NOK million) 31.03.09 31.03.08 31.12.08 Core capital 4 059 3 403 4 060 Supplementary capital 640 772 671 Equity and related capital resources 4 699 4 175 4 731 Total risk-weighted assets base - IRB 39 210 29 578 40 390 Basel I risk-weighted assets base 50 087 39 627 49 799 Adjusted risk-weighted assets base 40 069 35 665 44 819 Core capital adequacy ratio 10.13 % 9.54 % 9.06 % Supplementary capital adequacy ratio 1.60 % 2.16 % 1.50 % Capital adequacy ratio 11.73 % 11.71 % 10.56 % 5
Financial targets Capital adequacy ratio Core-capital coverage: 9 % or higher Total capital coverage: 12 % or higher Profitability ROE shall be comparable to the performance of competing banks in Norway. The targeted after-tax return is minimum 6 percentage points above the yield on long-term government bonds Effectiveness The targeted cost ratio is maximum 50% of income and shall be comparable to the level of competing banks in Norway Top-line growth The growth in interest contribution and provisions is targeted to be 2 percentage points above the growth in operating costs 6
Preliminary annual report and accounts 1st quarter Satisfactory result for the first quarter. The underlying banking operations remain good. The Bank s financial strength is good and its liquidity satisfactory. Main features (2008): Pre-tax operating result totalled NOK 189 million (NOK 66 million). After-tax return on equity capital: 13.5 per cent (3.6 per cent). Earnings per Primary Capital Certificate (PCC) (Parent Bank): NOK 2.68 (NOK 2.69). The underlying banking operations remain very good; the result from core operations before credit losses amounted to NOK 174 million (NOK 157million). The net result from financial investments amounted to NOK 68 million; (losses NOK 88 million) Overall cost development under control a 4.3 per cent increase in costs compared to 2008. Overall cost ratio 50.1 % (78.6 %). Low losses on loans, taking into consideration the general macro-economic situation : Net losses of NOK 53 million (NOK 3 million). Lending growth during the last 12 months (including loans transferred to SpareBank 1 Boligkreditt): 7.4% (11.2%). Retail banking market: 8.6 per cent (including SpareBank 1 Boligkreditt). Corporate market: 5.40per cent. The accounts show lending growth during the last 12 months of 2.2 per cent (4.5 per cent). Deposit growth during the last 12 months: 9.6 per cent (7.3%). Overall deposit coverage ratio: 67.0 per cent (62.4 %). The Bank has good financial strength with a core capital ratio at 10.1 % (9.5 %) Liquidity remains satisfactory 7
Profit and loss account - Group (Amounts in NOK million) 31.03.09 31.03.08 Net interest income 303 309 Net fee-, commision and other operating income 114 102 Net income from financial investments 68-88 Total net income 485 323 Total costs 243 254 Result before losses and writedowns 242 69 Net losses and write-downs 53 3 Result before tax 189 66 Tax 37 28 Minority interests 0 0 Profit for the period 152 38 8
Quarterly Summary Profit and loss account figures (Amounts in NOK million) 1Q09 4Q08 3Q08 2Q08 1Q08 Net interest income 303 349 349 313 309 Net fee-, commision and other operating income 114 103 94 112 102 Net income from financial investments 68 27-56 33-88 Total net income 485 479 387 458 323 Total costs 243 247 233 237 254 Result before losses and write-downs 242 232 154 221 69 Net losses and write-downs 53 114 41 25 3 Profit before tax 189 118 113 196 66 Return on equity capital 13.52 % 9.18 % 5.98 % 13.86 % 3.62 % Cost/income 50.10 % 51.57 % 60.21 % 51.75 % 78.64 % 9
Quarterly Summary Profit and loss account figures (Amounts in NOK million) The reduction in net interest 1Q09 4Q08 3Q08 2Q08 1Q08 income is due to Net interest income 303 349 349 313 309 reduced funding effect Net fee-, commision and from the bank's equity other operating income due to decreased 114 103 94 112 102 interest rates Net income from financial reduced deposit-margin investments which partly is 68 27-56 compensated 33by -88 Total net income 485 479 387 increased lending 458 323 Total costs 243 247 233 margin 237 254 Result before losses and write-downs 242 232 154 221 69 Net losses and write-downs 53 114 41 25 3 Profit before tax 189 118 113 196 66 Return on equity capital 13.52 % 9.18 % 5.98 % 13.86 % 3.62 % Cost/income 50.10 % 51.57 % 60.21 % 51.75 % 78.64 % 10
Group companies Profit before tax 31.03.09 31.03.08 SpareBank 1 Finans Nord-Norge AS 38 151 7 311 Sparebanken Factoring 886 0 SpareBank 1 Nord-Norge Invest AS -2 780-3 832 Eiendomsdrift AS 920 1 249 EiendomsMegler 1 Nord-Norge AS 115-1 782 BBL Eiendomsmegling AS 0 0 SpareBank 1 Nord-Norge Securities ASA - 54 287 Total 37 238 3 233 11
Results the Group In relation to the 1th quarter of 2008, the reasons for the change in the pre-tax result are as follows: Reduction in net interest income - NOK 6 mill. Reduction in net commission income - NOK 3 mill. Increase in income from financial investments Increase in other (non-interest) income Reduction in costs + NOK 156 mill. + NOK 15 mill. + NOK 11 mill. Increase in net losses - NOK 50 mill. Total + NOK 123 mill. 12
Very good underlying banking operations - (excl. SpareBank 1 Gruppen and financial investments) Group (Amounts in NOK million) 1Q09 4Q08 3Q08 2Q08 1Q08 4Q07 3Q07 Net interest income 303 349 349 313 309 324 307 Net fee- and commission income 92 100 93 106 95 110 117 Other operating income 22 3 1 6 7 13 5 Total costs 243 247 233 237 254 246 241 Income, core banking 174 205 210 188 157 201 188 Net losses and write-downs 53 114 41 25 3 8 2 Income, core banking after losses and write-downs 121 91 169 163 154 193 186 13
Top line growth 450 400 417 411 350 300 303 309 250 200 31.03.09 31.03.08 150 100 50 114 102 0 Net interest income Net fee-, commision and other operating income Gross lending including Boligkreditt Income growth -1.9% 11.8% 1.5% Costs growth -4.3% 14
Net interest- and credit commission income - Group 350 300 250 200 150 100 50 0 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 NOK Million Perc.of aver.tot.ass. 4.00 % 3.00 % 2.00 % 1.00 % 0.00 % 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 NOK Million 284 291 307 324 309 313 349 349 303 Perc.of aver.tot.ass. 2.05 % 2.03 % 2.08 % 2.15 % 2.06 % 2.10 % 2.31 % 2.21 % 1.88 % 15
Lending, Parent bank corporate market Loan volum corporate Loan contribution corporate 20 000 1.80 19 000 1.60 1.40 NOK 18 000 17 000 16 000 15 000 14 000 1.20 1.00 0.80 0.60 0.40 0.20 Interest contribution The interest margin is defined as the difference between the customer lending (deposit) interest rate and the Bank's average capital markets funding rate. 13 000 - dec.06 mar.07 jun.07 sep.07 dec.07 mar.08 jun.08 sep.08 dec.08 mar.09 16
Lending, Parent bank retail market Loan volum retail banking Loan contribution retail banking 39 000 1.80 38 000 1.60 37 000 1.40 NOK 36 000 35 000 34 000 33 000 32 000 31 000 30 000 1.20 1.00 0.80 0.60 0.40 0.20 Interest contribution The interest margin is defined as the difference between the customer lending (deposit) interest rate and the Bank's average capital markets funding rate. 29 000 - dec.06 mar.07 jun.07 sep.07 dec.07 mar.08 jun.08 sep.08 dec.08 mar.09 17
Customer deposits, Parent bank corporate market Deposit volum c orporate Deposit contribution corporate 21 000 2.00 19 000 1.80 1.60 NOK 17 000 15 000 13 000 11 000 9 000 1.40 1.20 1.00 0.80 0.60 0.40 0.20 Interest contribution The interest margin is defined as the difference between the customer lending (deposit) interest rate and the Bank's average capital markets funding rate. 7 000 - dec.06 mar.07 jun.07 sep.07 dec.07 mar.08 jun.08 sep.08 dec.08 mar.09 18
Customer deposits, Parent bank retail market Deposit volum retail banking Deposit contribution retail banking 20 000 3.00 2.80 19 000 2.60 NOK 18 000 17 000 16 000 15 000 14 000 13 000 12 000 2.40 2.20 2.00 1.80 1.60 1.40 1.20 1.00 0.80 0.60 0.40 0.20 - Interest contribution The interest margin is defined as the difference between the customer lending (deposit) interest rate and the Bank's average capital markets funding rate. dec.06 mar.07 jun.07 sep.07 dec.07 mar.08 jun.08 sep.08 dec.08 mar.09 19
Financial targets Capital adequacy ratio Core-capital coverage: 9 % or higher Total capital coverage: 12 % or higher Profitability ROE shall be comparable to the performance of competing banks in Norway. The targeted after-tax return is minimum 6 percentage points above the yield on long-term government bonds Effectiveness The targeted cost ratio is maximum 50% of income and shall be comparable to the level of competing banks in Norway Top-line growth The growth in interest contribution and provisions is targeted to be 2 percentage points above the growth in operating costs 20
Group operating costs NOK mill. 275 250 225 200 175 150 125 100 75 50 25 0 3.50 % 3.00 % 2.50 % 2.00 % 1.50 % 1.00 % 0.50 % 0.00 % 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 NOK Million Perc.of aver.tot.ass. 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 NOK Million 229 246 241 246 254 237 233 247 243 Perc.of aver.tot.ass 1.65 % 1.68 % 1.67 % 1.66 % 1.70 % 1.64 % 1.60 % 1.58 % 1.51 % 21
Group operating costs (NOK Million) 31.03.09 31.03.08 Change Wages and salaries 95 92 3 Pension costs 10 12-2 Social costs 11 9 2 Total personnel costs 116 113 3 Administration costs 75 80-5 Total personnel- and general administration costs 191 193-2 Depreciation and write-downs of fixed assets 13 14-1 Operating costs buildings 10 8 2 Other operating costs 29 39-10 Total operating costs 52 61-9 Total costs 243 254-11 22
Measures aimed at further improving profitability The Bank will now focus on the following main areas: Quality in all credit work to remain high Deposits the Bank s most important source of funding Additional sales focus on professional advisory services and the handling of customers Improved average interest margin for loans, especially within the corporate market Increased effectiveness Continuation/further development of cost-reducing measures Making specialist- and support functions more effective Changes in the Bank s distribution network, including reduced cash-related function 23
Key figures balance sheet (Amounts in NOK million) BALANCE SHEET 31.03.09 31.03.08 Change Change % Total assets 63 566 58 831 4 735 8.0% Gross lending 50 900 49 815 1 085 2.2% Loans and advances to customers including 56 923 53 020 3 903 7.4% SpareBank 1 Boligkreditt Deposits from customers 34 078 31 106 2 972 9.6% 24
Good development of customer deposits throughout the global financial crisis Deposits from customers 35 000 34 000 33 000 Volume according to markets 31.03.09 32 000 31 000 30 000 29 000 28 000 27 000 Corp. 32 % Retail 52 % 26 000 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 Public 16 % Overall deposit coverage ratio as at 31.3.09: 67.0 % Growth (last 12 months); 9.6%, Corporate 2.8%, Retail 9.0 %, Public sector 28.9 % 25
Deposit growth households 12 % Househol ds 12 months gr owth 9 % 6 % 3 % 0 % Jan 06 Apr 06 Jul 06 Okt 06 Jan 07 Apr 07 Jul 07 Okt 07 Jan 08 Apr 08 juli 08 okt 08 jan.09 Norway, households SNN, retail clients Source: Statistisk Sentralbyrå, Pengemengden M2, 1.april 2009 og SNN Bare, 1.april 2009 26
Deposit growth corporates 34 % Cor por ates 12 months gr owth 24 % 14 % 4 % -6 % Jan 06 Apr 06 Jul06 Okt 06 Jan 07 Apr 07 Jul07 Okt 07 Jan 08 Apr 08 juli08 okt 08 jan.09 Nor way, cor por at es SNN, cor por at e clien t s Source: Statistisk Sentralbyrå, Pengemengden M2, 1.april 2009 og SNN Bare, 1.april 2009 27
Group lending portfolio according to markets Loans and advances to customers including SpareBank 1 Boligkreditt AS 58 000 56 000 54 000 Volume according to markets 31.03.09 52 000 50 000 48 000 46 000 44 000 42 000 40 000 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 Corp/ Pub 33 % Retail incl. Boligkreditt 67 % Growth (last 12 months); 7.4 %, Corporate/Public 5.0%, Retail 8.6 % 28
Credit growth households 18 % Households 12 months grow th 15 % 12 % 9 % 6 % Jan 06 Apr 06 Jul 06 Okt 06 Jan 07 Apr 07 Jul 07 Okt 07 Jan 08 Apr 08 juli 08 okt 08 jan.09 Norway, households SNN, ret ail client s Source: Statistisk Sentralbyrå, Kredittindikatoren K2, 1.april 2009 og SNN Bare, 1.april 2009 29
Credit growth corporates Cor por at es 12 mon t hs gr owt h 25 % 20 % 15 % 10 % 5 % 0 % Jan 06 Apr 06 Jul06 Okt 06 Jan 07 Apr 07 Jul07 Okt 07 Jan 08 Apr 08 juli08 Okt 08 jan.09 Nor way, cor por ates SNN, cor por ate cl i ents Source: Statistisk Sentralbyrå, Kredittindikatoren K2, 1.april 2009 og SNN Bare, 1.april 2009 30
Credit area Quality Portfolio Migration, commitments in default and losses Measures 31
Portfolio The Group s corporate portfolio is well diversified. Exposure to certain sectors with historically large losses for the Bank was reduced last year. Fish farming Fishing industry Renting out of property An estimated 45 % of the portfolio is related to commercial rental, not renting out involving own property. The level of defaulted payments remains low. Increasing probability of default, but the level remains very low. 32
33 Group lending by sector
34 Portfolio exposure as of 31.03.2009
Risk change The reduced volume within high- and mediumrisk corporate commitments is largely related to repayments of project finance loans, coupled with amended classification of housing co-operatives. 35
36 Risk change
Loan to value Retail market Lending portfolio retail market The retail portfolio consists mainly of mortgages NOK 6.3 bill is transferred to Boligkreditt 37
Losses and commitments in default During the last 3 years, the Bank has experienced low credit losses, against a background of a favorable economic situation. Exposure to certain sectors with historically large losses for the Bank has been significantly reduced last year. Fish farming Fishing industry The level of credit losses is expected to be affected in line with lower general economic growth. Commitments in default and commitments in certain sectors are monitored very closely. Property projects Property rentals Fishing vessels (whitefish) Housing co-operatives Extended review of the portfolio generally and of high-risk commitments in the 4th quarter of 2008 and first half of 2009. 38
Portfolio measures Review of lending portfolio Monitoring of certain selected sectors Property projects Property rentals Fishing vessels (whitefish) Housing co-operatives Further enhancement of competence for advisory officers Special further training days in the credit area Changed focus on quality; from the granting of credit to quality in the follow-up of commitments Dedicated regional officers for portfolio monitoring 39
Identification of problem commitments The retail banking market Assessment of 1,010 commitments in the retail banking sector Criteria: Indications of problems (repeated cases of default) Mortgages in housing co-operatives with large communal debt (mortgages in housing co-operatives established after 2000) Large retail banking customers (over NOK 5 million) (bridging finance, property projects etc.) Customers with new external collection remarks Customers in class I > NOK 200,000 in commitments Review of and action plan for vulnerable commitments 40
Identification of problem commitments The corporate market Assessment of 1,162 commitments Comprises 28 % of all customers 39 % of volume To be done in 3 sessions during the first half of the year Criteria 1st priority Indications of problems (e.g. repeated cases of default of short duration) Building loans/ project financing Commercial property for rental (value assessment in relation to rental income) High utilisation of overdraft facility High risk > NOK 200,000 < NOK 3 million Not many new commitments are identified as challenging today. Decided on strategy; action plan for settlement/payment/winding up, turnaround or monitoring. 41
Collective write-downs The basis for collective write-downs in the Group is as follows: 1. Loans to customers high risk 2. Loans to customers - negative migration 3. Loans to customers in sectors involving particular challenges, where it is deemed probable that loss events have occurred at sector level For Group 3, an assessment is done with regard to sectors in relation to historical losses, observations in the Group s portfolio, macrovariables and knowledge of the sector involved. Increase in collective write-downs in 2008 NOK 34 mill. Increase in collective write-downs in Q1/2009 NOK 15 mill. Conservative methodology Collective write-downs total 0,43 % of gross loans as at 31.03.09 ( 0,40 % as at 31.12.08). 42
Losses on loans and guarantees - Group 350 300 250 200 150 100 50 0-50 2003 2004 2005 2006 2007 2008 1Q09 1.40 % 1.20 % 1.00 % 0.80 % 0.60 % 0.40 % 0.20 % 0.00 % -0.20 % Net losses Net losses, % of gross lending 2003 2004 2005 2006 2007 2008 1Q09 Individual write-downs for impaired value 345 206 112 20 55 202 38 Collective write-downs imp. value 0-1 -25-36 -13 40 17 Recoveries, previously confirmed losses 27 35 22 27 25 59 2 Net losses 318 170 65-43 17 183 53 Net losses, % of gross lending 0.86 % 0.45 % 0.16 % -0.09 % 0.03 % 0.36 % 0.10 % 43
44 Securities
Income from financial investments (Amount s in NOK million) 31.03.09 31.03.08 Dividends 0 8 Income from joint ventures 7 19 Gains/losses and net value changes on certificates and bonds 7-69 Gains/losses and net value changes on shares 37-55 Gains/losses and net value changes on foreign exchange and fin. derivatives 17 9 Income from financial investments 68-88
Shares 1.q-09 1.q-08 Total div./gains/losses + 37 mill - 47 mill Of which; Hurtigruten Group (HRG) + 45 mill - 30 mill Helgeland SPB + 2 mill + 8 mill Nordito + 7 mill 0 mill Other portfolio - 17 mill * - 25 mill Net shares + 37 mill - 47 mill * Of which foreign exchange loss Tavrichesky 11 mill Reduced limits for share-market exposure has been adopted by the Board of Directors Market value Total share portfolio as at 31.03.09: Of which; Hurtigruten Group (HRG) Helgeland Sparebank Tavrichesky Portefølje SNN Invest Other shares 575 mill 102 mill 46 mill 85 mill 144 mill 198 mill
Interest-bearing securities portfolio as at 31.03.09 Of the NOK 4,981 million total interest-bearing portfolio, reclassification of NOK 3,807 million was completed in the third quarter 2008. Without this reclassification, further unrealised losses on this portfolio amounting to NOK 212 million would have been charged to the profit and loss account for the second half of 2008. This unrealised loss would have been reduced to NOK 192 million for the first quarter of 2009. Previous write-downs of the reclassified portfolio of NOK 112 million will be amortised over the remaining life. NOK 18 million was booked as income in the second half of 2008, NOK 7 million in 1st quarter 09. Average maturity for reclassified portfolio as at 31.03.09; about 2.5 years. The value of the reclassified portfolio has been assessed with regard to the need for any adjustment for permanent impairment in value. As at 31.12.08, such write-down, amounting to NOK 46 million, had been made on two of the Bank s investments. No further write-down has been made on this part of the portfolio during the first quarter of 2009.
Interest-bearing portfolio Industry, Norway 4,8 % Subord. debt, Norway 2,6 % ABS 0,5 % CDO 2,3 % CPPI 1,2 % Certificates 12,0 % Fin. sector, abroad 25,0 % Fin. sector, Norway 21,2 % Covered bonds 30,4 % Total portfolio: NOK 7,654 million, of which NOK 2,326 million consist of covered bonds Increased portfolio compared with previous periods mainly certificates and and covered bonds. This represents a build-up of increased liquitity reserves, coupled with bonds which can be used in the authorities swap scheme. Reduced willingness to take on risk, within the area. Re-investment and new investment shall be subject to very low or low risk.
Liquidity
Good development of customer deposits throughout the global financial crisis Deposits from customers 35 000 34 000 33 000 Volume according to markets 31.03.09 32 000 31 000 30 000 29 000 28 000 27 000 Corp. 32 % Retail 52 % 26 000 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 Public 16 % Overall deposit coverage ratio as at 31.3.09: 67.0 % Growth (last 12 months); 9.6%, Corporate 2.8%, Retail 9.0 %, Public sector 28.9 %
Satisfactory liquidity situation Liquidity prognosis 2009 (NOK mill) 5000 4000 3000 2000 1000 0-1000 des.08 jan.09 feb.09 mar.09 apr.09 mai.09 jun.09 jul.09 aug.09 sep.09 okt.09 nov.09 des.09-2000 -3000-4000 -5000 Assumptions: 7 % growth in lending and deposits The green line shows 30-days forward average trend. The blue line shows actual figures on a daily basis.
Satisfactory liquidity Status medio April 2009 NOK mill Deposits in Norges Bank 3.140 Loan access in Norges Bank 2.402 Short term liquidity investements 1.017 Covered bonds ready for the authorities' swap scheme 911 Mortgages ready for use in the authorities' swap scheme 834 Funding due within 3 months 682 Funding due within 12 months 5.193
Ownership policy
Dividend policy SpareBank 1 Nord-Norge aims to produce profits which will provide the basis for offering a competitive rate of return on the Bank's PCC's. The level of dividend paid to PCC-holders will depend upon the annual profit made. The sum of the dividend paid and transfer made to the Dividend Equalisation Fund should reflect the PCC-holders share of the Bank's equity capital. As far as the split between the total cash dividend payment and transfer to the Dividend Equalisation Fund is concerned, the Bank will seek to give priority to achieving a high cash dividend share. When considering the split between these two elements, however, the Board of Directors will also take into consideration the Bank s equity capital situation. The bank will make transfers to/and from the Dividend Equalisation Fund in accordance with the level of profit for the year and currently applicable laws, rules and regulations.
PCC holder structure 30 31.03.08 31.03.09 25 20 % 15 20.6 27.1 27.9 23.5 25.4 10 18.6 12.2 5 8.1 0 10 largest PCC Holders 20 largest PCC Holders Holders residing in North Norway Foreign Holders 55
The 20 largest PCC holders as at 31.03.09 Number of Share of total PCC Holders of PCCs PCC Capital Pareto Aksjer Norge 940 929 5.25 % Pareto Aktiv 506 157 2.83 % Frank Mohn AS 431 362 2.41 % MP Pensjon 418 279 2.34 % Tonsenhagen Forretningssentrum A/S 319 126 1.78 % JPMorgan Chase Bank - client account 294 990 1.65 % Framo Development AS 238 798 1.33 % Mellon Bank - client account 214 980 1.20 % Sparebankstiftelsen DnB NOR 173 478 0.97 % Forsvarets Personellservice 158 534 0.89 % Karl Ditlefsen 154 359 0.86 % SpareBank 1 SR-Bank Finans 146 356 0.82 % Trond Mohn 143 279 0.80 % Citibank N.A. 140 154 0.78 % Sparebanken Rogaland Pensjonskasse 132 477 0.74 % Lærdal Finans A/S 128 423 0.72 % Olsen & Co s pensjonskasse 121 787 0.68 % Troms Kraft Invest A/S 115 133 0.64 % Terra Utbytte Verdipapirfond 106 438 0.59 % State Street Bank and Trust 103 554 0.58 % SUM 4 988 593 27.85 % 56
Summary 1st quarter 2009 key figures Group Amounts in NOK million 31.03.09 31.03.08 Change Change % PROFIT AND LOSS ACCOUNT Result before tax 189 66 123 186.4% BALANCE SHEET Total assets 63 566 58 831 4 735 8.0% Gross lending 50 900 49 815 1 085 2.2% Deposits from customers 34 078 31 106 2 972 9.6% KEY FIGURES 31.03.09 31.03.08 Change Change % Capital adequacy 11.7% 11.7% 0.0% After-tax return on equity capital 13.5% 3.6% 9.9% Cost/income 50.1% 78.6% -28.5% Manyear 811 825-14 Parent bank Result per PCC (Parent Bank) 2.68 2.69-0.01 57
58 Development features
North-Norway 3 counties and 88 municipalities Nordland: 235 500 inhabitants Troms: 154 200 inhabitants Finnmark: 72 600 inhabitants North-Norway totally: 462 300 inhabitants Employment in North-Norway 223.000 Public sector 43 % (34 %) Private sector 26 % (33 %) Tourism 10 % ( 9 %) Marine sector 5 % ( 1 %) Industry 5 % (13 %) Misc. 1 % (10 %) 59
Nord-Norge is less affected by the economic downturn than the rest of Norway. Norway Nord-Norge Increase in the number of bankruptcies in the period 1Q08 1Q09 +79% +21% Increase in number of jobless from March 08 to March 09 +69% +44% Unemployment December 2009 (estimate) 4.7% 3.9% Reason: Breakdown by sector Public sector 29.4% 39.5% Industry 9.5% 5.3% Business services 10.1% 5.6% 60
Contact information SpareBank 1 Nord-Norge Po. Box 6800 N-9298 Tromsø Norway For further information Chief Excecutive Officer, Hans Olav Karde Phone +47 776 22401, mob. +47 901 51981, e-mail hans.olav.karde@snn.no Deputy Chief Excecutive Officer, Oddmund Åsen Phone +47 776 22094, mob. +47 906 72757, e-mail oddmund.asen@snn.no Chief Financial Officer, Rolf Eigil Bygdnes Phone +47 776 22211, mob. +47 905 19774, e-mail rolf.eigil.bygdnes@snn.no Internet Homepage: Hugin-Online: On Primary Capital Certificates: www.snn.no www.huginonline.no www.grunnfondsbevis.no 61