3rd quarter (Q3) 2009 - Presentation of results from SpareBank 1 Gruppen

3rd quarter (Q3) 2009Presentation of results from SpareBank 1 Gruppen

Kirsten Idebøen, CEO

29 October 2009

Highlights

22

• Historically good pre-tax profit as at the 3rd quarter

• Bank 1 Oslo AS is leaving the group SpareBank 1 Gruppen AS and will be directly owned by the SpareBank 1 banks (90%) and the Norwegian Confederation of Trade Unions (LO) (10%) with effect from 1 January 2010

• SpareBank 1 Livsforsikring has entered into an agreement with Gabler Wassum concering the operation and administration of its portfolio of approx. NOK 4 billion in the area of group defined-benefit pensions– An agreement was also signed giving Gabler Wassum an option to purchase the

portfolio by the end of 2010

• The implementation of measures in the profitability project being carried out is progressing well– The project’s aim is to yield profitability improvements with a full-year effect of

MNOK 450 from 31 December 2010, and SpareBank 1 Gruppen is ahead of schedule with regard to realising both profitability effects and staffing reductions

Very strong quarterly results

• Pre-tax profit as at Q3 was MNOK 974 (314). Profit in Q3 of MNOK 432 (17)

• Profit after tax year-to-date was MNOK 697 (222)

• Return on equity year-to-date of 18.6% (5.8%) p.a.

• Total assets at the end of September were NOK 60.7 billion, up NOK 4.3 billion from 31 December 2008

• Core and capital adequacy ratio estimated at 9.3% and 13.9%, respectively, as at 30 September 2009, as opposed to 9.4% and 12.6 % at year-end

Pre-tax profit, Group, by quarter

100

350

197

441

17

432

100

236

353

050

100150200250300350400450500

2007 2008 2009

MN

OK

Pre-tax profit - Q1 Pre-tax profit - Q2 Pre-tax profit - Q3

33

Very good quarterly profit from the subsidiaries

Pre-tax profit in the subsidiaries

• Overall pre-tax profit for the subsidiaries as at Q3 was MNOK 996 (372). Profit in Q3 of MNOK 448 (34)

• Strong investment and risk result in the life insurance company. Substantially strengthened buffer capital

• Very good financial return and good results in the P&C insurance company

• Rising capital under management in ODIN Forvaltning

• Higher net interest income in Q3 and good financial income in Bank 1 Oslo

237

85

-343

60

311

155

18

506

-400

-300-200

-1000

100

200300

400500

600

Ban

k 1

Osl

o gr

oup

SB1

Skad

efor

s.

OD

IN

MN

OK

Pre-tax profit - YTD 2008Pre-tax profit - YTD 2009

-35*

SB1

Livs

fors

.

* In SpareBank 1 Gruppen’s consolidated accounts, NOK 307.7 million of the loss on interest in 2008 was covered by the customer’s additional provisions.

44

SpareBank 1 Gruppen group

Profit/loss as at Q3 2009Q3 Q2 Q1 Q3

Figures in MNOK 2009 2009 2009 2008 2009 2008

Part of result from subsidiaries before tax - SpareBank 1 Livsforsikring 81.2 205.6 24.4 -334.9 311.2 -342.9 - Additional provisions recognised as income in consolidated accounts 0.0 -42.0 42.0 286.8 0.0 307.7 - SpareBank 1 Skadeforsikring 272.8 184.9 48.1 58.0 505.8 237.0 - Bank 1 Oslo group 74.7 67.6 13.1 -6.2 155.4 60.2 - ODIN Forvaltning 16.0 9.6 -7.5 25.7 18.1 85.2 - Argo Securities -14.6 -11.9 -12.9 0.0 -39.4 0.0 - SpareBank 1 Medlemskort 1.8 4.1 5.6 4.2 11.4 12.4 - SpareBank 1 Gruppen Finans Holding 3.9 11.0 5.3 3.6 20.2 10.7 - Correction subsidiaries - pro forma IFRS 12.0 -6.0 7.4 -3.3 13.4 1.8Net result before tax from subsidiaries 447.8 423.0 125.4 33.8 996.1 372.0Total operating costs holding -13.2 -12.1 -13.3 -8.8 -38.6 -31.5Net investment charges holding -2.1 -7.0 -17.3 -15.9 -26.5 -52.4Gains from sale of companies 0.0 29.2 0.0 21.7 29.2 21.7Share of associated company - First Securities 0.0 8.4 5.1 0.9 13.5 21.4Net result before amortisation 432.4 441.4 99.9 31.6 973.7 331.2Amortisation 0.0 0.0 0.0 -14.2 0.0 -16.8Pre-tax result 432.4 441.4 99.9 17.4 973.7 314.4Taxes -30.9 -150.7 -94.8 -7.0 -276.4 -92.9Net result for the period 401.5 290.7 5.2 10.4 697.3 221.5

Majority interest 404.1 292.9 7.5 10.2 704.4 220.8Minority interest -2.6 -2.1 -2.3 0.3 -7.1 0.8

Year to date

55

Bank 1 Oslo to be demerged from SpareBank 1 Gruppen

66

• Bank 1 Oslo will be directly owned by the SpareBank 1 banks (90%) and LO (10%) with the same ownership stake as in SpareBank 1 Gruppen AS

• There is an effort to implement the change of ownership with effect from 1 January 2010. A licence has been granted

• Establishing a clearer division between production and distribution in SpareBank 1 Alliansen was an important consideration in the decision to change the ownership model for Bank 1 Oslo

• Bank 1 Oslo will continue to be a part of SpareBank 1 Alliansen, which will involve a stronger commitment to the market in Oslo and Akershus

• Estimated effects for SpareBank 1 Gruppen as at 30 September 2009– Core capital adequacy: +1.4 percentage

points– Capital adequacy: +2.2 percentage points– Total assets: NOK -25.7 billion.

SpareBank 1 banks LO

10%90%

SpareBank 1 Gruppen AS

Bank 1 Oslo AS

Products:- Life insurance- P&C insurance- Unit trusts- Securities trading- Receivables management- Factoring- Member cards- etc.

- Banking- Real estate agency- Distribution ofproducts

Bank 1 OsloHigher net interest income in 3rd quarterand good financial income

77

Bank 1 Oslo (group)Higher net interest income in Q3 and good financial income

Pre-tax profit by quarter• Pre-tax profit of MNOK 155 (60)

as at Q3. Profit in Q3 was MNOK 75 (-6)

• The earnings advance is chiefly due to higher revenue from financial investments

• Loan losses MNOK 91 (15) as at Q3, of which MNOK 31 (32) in Q3

• Gross non-performing and impaired loans amounted to 2.0% (1.2%) of gross loans as at 30 September 2009

• Positive pre-tax earnings from EiendomsMegler 1 Oslo & Akershus of MNOK 5 (-17)

2732

13

33 3439

7568

-6

-20-10

01020304050607080

2007 2008 2009

MN

OK


88

Bank 1 Oslo (parent bank)

Higher net interest income in Q3

99

Net interest income

97.0 96.7 95.9105.3

89.9 88.8 89.9

110.6

0

20

40

60

80

100

120

Q42007

Q12008

Q22008

Q32008

Q42008

Q12009

Q22009

Q32009

MN

OK

1.0 %1.1 %1.2 %1.3 %1.4 %1.5 %1.6 %1.7 %1.8 %1.9 %2.0 %

Net interest income Net interest income measuredagainst average total assets

• Lending growth incl. Boligkreditt of 14.7% the past 12 months. Year-to-date growth was 10.2%, of which CM increased by 11.0% and CM by 8.2%

• Net interest income of MNOK 289 (298) as at Q3. In Q3 net interest income was MNOK 111 (105).

• Net interest income as at Q3 of 1.51% (1.81%).

2.32 %2.21 %2.31 %

-0.35 %-0.13 %

0.91 %0.88 %

0.86 %

1.05 %

0.77 %0.84 %

1.42 %1.15 %

0.87 %0.94 %

1.10 %1.23 %

1.35 %1.49 %

1.22 %1.34 %1.36 %

0.68 %

0.11 %

10,000

12,000

14,000

16,000

18,000

20,000

22,000

Q42006

Q12007

Q22007

Q32007

Q42007

Q12008

Q22008

Q32008

Q42008

Q12009

Q22009

Q32009

-0.50 %

0.00 %

0.50 %

1.00 %

1.50 %

2.00 %

2.50 %

Lending Spread for ordinarylending to customers

Spread for depositsfrom customers


Margin and volume growth

The benchmark interest rate used in the margin calculation is the 3 month NIBOR

MN

OK

1010


Changes in non-performing loans

Non-performing loans = Total of overdue claims over 90 days and impaired non-overdue claims over 90 days

214166 163

113

246

401459

358417

220

1. kv 2008 Percent

050

100150200250300350400450500

Q22007

Q32007

Q42007

Q12008

Q22008

Q32008

Q42008

Q12009

Q22009

Q32009

MNOK

-

0.5

1.0

1.5

2.0

2.5

Total non-performing loansas % of gross loans

1111


Higher losses compared with last year – annualised loss in percent of gross loans is 0.57%

MNOK Individualwrite-downs

Collectiveimpairment

Net write-offsand incomings onprevious write-offs

TotalLoan losses

-23.6 -14.93.55.2 -90.9-30.8-37.8 -22.3

-100.0

-80.0

-60.0

-40.0

-20.0

0.0

20.0

Year to date 2008 Year to date 2009

1212

Bank 1 Oslo (group)

Higher commission and financial income

-40-20

02040

6080

100

120140

Q42007

Q12008

Q22008

Q32008

Q42008

Q12009

Q22009

Q32009

MN

OK

Guarantee commissions/othersReal estate agency commissionRevenue from financial investmentsPayments systemCommission revenues from insurance and savings

• Net interest commission income and other income of MNOK 215 (183) as at Q3– Commission income from real estate

agency was up 36.7% to MNOK 91 (66)

• Income from financial investments was MNOK 129 (-38) as at Q3– Bond portfolio: MNOK 46 (-23)– Shares and primary capital certificates:

MNOK 65 (-23)

Other income per quarter

1313

SpareBank 1 LivsforsikringStrong investment and risk result

1414

SpareBank 1 Livsforsikring

Strong investment and risk result

1515

Pre-tax profit by quarter

129

44

206

111

-335

8193

-52

24

-400

-300

-200

-100

0

100

200

300

2007 2008 2009MN

OK

Pre-tax profit/loss - Q1 Pre-tax profit/loss - Q2Pre-tax profit/loss - Q3

• Pre-tax profit was MNOK 311 (-343) as at Q3. Profit in Q3 was MNOK 81 (-335)

• Strong performance in net risk result: MNOK 277 (130) year-to-date

• Investment result was MNOK 432 (-333) as at Q3. In Q3 it was MNOK 132 (-332)

• Total assets as at 30 September 2009 were NOK 23.8 billion., up 12.1% from 31 December 2008


Stronger buffer capital in the life insurance company

Growth in buffer capital

1616

13.7 %

5.8 % 6.0 %5.8 %8.2 %

11.7 %

-4 %-2 %0 %2 %4 %6 %8 %

10 %12 %14 %16 %

Q22008

Q32008

Q42008

Q12009

Q22009

Q32009

Perc

ent

Securities adjustment reserveAdditional provisionsInterim profitCore capital in excess of minimum

• Core and capital adequacy ratio estimated at 15.3% and 18.3%, respectively, as at 30 September 2009, as opposed to 11.2% and 14.3 % at year-end

• Buffer capital with additional provisions within a one-year interest rate guarantee equals 13.7% (5.8%) at the end of September

• Estimated solvency at the end of Q3 was 242% (255%)

• The securities adjustment reserve was MNOK 238 as at 30 September 2009


Modest rise in equities in the group portfolio

As at 30 September 2009 *)

Investment choice portfolio

Stocks Other Bonds

Group portfolio

Stocks OtherReal estate Bonds held to maturityBonds

Company portfolio

Stocks OtherReal estate Bonds held to maturityBonds

35.8 (31.4)%

24.0 (30.3)%

13.8 (12.4)%

21.8 (22.9)%

4.6 (3.0)%

3.7 (1.0)%0.1 (7.3)%

58.3 (26.9)%17.0 (32.6)%

20.8 (32.2)%31.9 (28.9)% 59.7 (54.4)%

8.4 (16.7)%

NOK 15.3 (14.7) billion NOK 5.2 (4.0) billionNOK 2.0 (1.3) billion

* Figures in parentheses are as at 31 December 2008

1717


Value-adjusted return on customer portfolios with guarantee (excl.

change in value construction)

2.5

4.1

1.51.9

3.53.1

7.1

0

1

2

3

4

5

6

7

8

SpareBank 1 Storebrand Vital Nordea

Perc

ent

Q22009

Q32009

Q22009

Q32009

Q22009

Q32009

Q22009

Q32009

NA

1818 Source: company presentations

SpareBank 1 SkadeforsikringHigh financial income and goodinsurance result

1919

SpareBank 1 SkadeforsikringHigh financial income and good insurance result

Pre-tax profit by quarter• Pre-tax profit was MNOK 506

(237) as at Q3. Profit in Q3 was MNOK 273 (58)

• Net financial income as at Q3 was MNOK 406 (112). The financial return year-to-date equals 5.3% (1.6%)

• The insurance result as at Q3 was MNOK 117 (144). In Q3 this was MNOK 100 (56)

• The claims ratio for own account was 73.4% (72.9 %) and the combined ratio for own account 95.1% (94.3 %) as at 30 September 2009

• Positive portfolio growth in both CM and RM. Total portfolio increase of MNOK 196 (105), which amounted to 5.1% (2.9%)

139 125121

58

273

66 54 48

185

0

50

100

150

200

250

300

2007 2008 2009

MN

OK


2020

SpareBank 1 SkadeforsikringTwo major claims in Q1 push up combined ratio for own account

Combined ratio for own account shown by quarter

Combined ratio for own account by year

87.2% 89.9%94.6% 95.1%94.0%

21.9 %

72.4 % 74.0 % 74.2 % 70.3 % 74.1 % 69.7 %79.5 % 73.5 %

67.5 %

19.7 % 23.5 %19.5 % 21.8 % 20.9 % 23.3 %21.1 %

22.1 %

89.3 %95.6 %

100.6 %93.1 %95.1 %93.8 %93.9 %95.9 %

91.9 %

0 %

20 %

40 %

60 %

80 %

100 %

Q32007

Q42007

Q12008

Q22008

Q32008

Q42008

Q12009

Q22009

Q32009

Claims ratio Cost ratio

66.7 % 73.4 %72.1 %73.9 %69.3 %

20.7 % 21.9 %20.5 % 20.6 %

21.7 %

0 %

20 %

40 %

60 %

80 %

100 %

2005 2006 2007 2008 YTD2009

Claims ratio Cost ratio

2121

ODIN ForvaltningRising assets under management

2222

ODIN Forvaltning

Rising assets under management

2323

Pre-tax profit by quarter

74

29

10

85

2616

-7

30

67

-20

0

20

40

60

80

100

2007 2008 2009

MN

OK

Pre-tax profit/loss - Q1 Pre-tax profit/loss - Q2Pre-tax profit/loss - Q3

• Pre-tax profit was MNOK 18 (85) as at Q3. Profit in Q3 was MNOK 16 (26)

• Assets under management grew by NOK 6.3 billion on the first three quarters of the year to NOK 25.4 billion

• The market share for equity funds was 12.4%, a decline from 13.8% at year-end

• 9 of 11 self-managed equity funds with better returns than reference index as at 30 September 2009

• All self-managed equity funds with better returns than reference index the past five years

Implementation of profitability project progressing well, and the Group is ahead of schedule with regard to realising profitability effects and reductions in staffing

REALISED EFFECTS AS AT 30 SEPTEMBER 2009

450

332

125

5429

87

35

H2 2010H1 2010H2 2009H1 2009 Q3 2009

Realised year-to date

Plan

Realisation of profitability effects over time

(MNOK, cumulative annual rate)177

135

82

3631

72

36

H2 2010H1 2010H2 2009H1 2009 Q3 2009

Realisation of staffing consequences over time (FTEs, cumulative)

Realised year-to-date

Plan

- An implemented measure qualifies for full-year effect. The method ensures a focus on implementation- Of the reduction in FTEs a large percentage comes from natural wastage and a reduction in the use of temps

2424

2525

Bank. Insurance. And you.

Appendix

2626

SpareBank 1 Gruppen’s company and ownership structureSpareBank 1

SR-Bank (19.5%)

SpareBank 1SMN

(19.5%)

SpareBank 1Nord-Norge (19.5%)

SparebankenHedmark

(12%)

SamarbeidendeSparebanker (19.5%)

Norwegian Confederation of Trade Unions (LO)

(10%)

SpareBank 1 Gruppen AS

SpareBank 1 Oslo

(100%)

SpareBank 1Skadeforsikring

(100%)

SpareBank 1Livsforsikring

(100%)

ODIN Forvaltning

(100%)

Actor Fordrings-forvaltning

(100%)

Argo Securities

(75%)

Actor Portefølje(100%)

SpareBank 1 Factoring(100%)

SpareBank 1 Boligkreditt

EiendomsMegler 1

BNbank

(Bank-owned operation)

SpareBank 1 Gruppen Finans

Holding AS(100%)

SpareBank 1Medlemskort

(100%)

Actor Verdigjenvinning

(100%)

Broad alliance- Brands- Technology- Expertise- Shared processes and utilisation of best practise- Purchasing

Regional centres of expertise- The Payments Sector: Trondheim- Credit: Stavanger- Teaching: Tromsø

The Alliance

2727

SpareBank 1 Gruppen group Quarterly results

Q3 Q2 Q1 Q4 Q3 Q2Figures in MNOK 2009 2009 2009 2008 2008 2008

Part of result from subsidiaries before tax - SpareBank 1 Livsforsikring 81.2 205.6 24.4 -647.6 -334.9 43.7 - Additional provisions recognised as income in consolidated accounts 0.0 -42.0 42.0 -307.7 286.8 -41.7 - SpareBank 1 Skadeforsikring 272.8 184.9 48.1 -19.3 58.0 125.0 - Bank 1 Oslo group 74.7 67.6 13.1 -57.1 -6.2 34.4 - ODIN Forvaltning 16.0 9.6 -7.5 30.0 25.7 29.2 - Argo Securities -14.6 -11.9 -12.9 -4.0 0.0 0.0 - SpareBank 1 Medlemskort 1.8 4.1 5.6 -0.3 4.2 4.2 - SpareBank 1 Gruppen Finans Holding 3.9 11.0 5.3 4.7 3.6 5.4 - Correction subsidiaries - pro forma IFRS 12.0 -6.0 7.4 -7.4 -3.3 7.0Net result before tax from subsidiaries 447.8 423.0 125.4 -1,008.6 33.8 207.2Total operating costs holding -13.2 -12.1 -13.2 -16.3 -8.8 -11.9Net investment charges holding -2.1 -7.0 -17.4 -15.4 -15.9 -12.9Gains from sale of companies 0.0 29.2 0.0 -0.6 21.7 0.0Share of associated company - First Securities 0.0 8.4 5.1 -3.7 0.9 16.4Net result before amortisation 432.4 441.4 99.9 -1,044.6 31.6 198.8Amortisation 0.0 0.0 0.0 -1.3 -14.2 -1.3Pre-tax result 432.4 441.4 99.9 -1,046.0 17.4 197.5Taxes -30.9 -150.7 -94.8 -33.3 -7.0 -50.0Net result for the period 401.5 290.7 5.2 -1,079.3 10.4 147.4

Majority interest 404.1 292.9 7.5 -1,078.9 10.2 147.0Minority interest -2.6 -2.1 -2.3 -0.4 0.3 0.4

2828

2

16

37

47

7984

7

Q4-10Q3-10Q2-10Q1-10Q4-09Q3-09Q2-09

4848

1510

41.50

9

0

Q4-10Q3-10Q2-10Q1-10Q4-09Q3-09Q2-09

Realiserte effekter per kvartal (MNOK)

Realiserte bemanningsreduksjoner per kvartal (Årsverk)

Prognose

Plan

Faktisk realisert

Prognose

Plan

Faktisk realisert

REALISED PROFITABILITY EFFECTS AND REDUCTIONS IN STAFFING

SUB PROJECT SpareBank 1 Skadeforsikring REPORT DATE 08.10.2009



(MNOK, cumulative annual rate)Realisation of staffing consequences over time

(FTEs, cumulative)


2929

191

162

150

119

43

1813

51

18

Q4-10Q3-10Q2-10Q1-10Q4-09Q3-09Q2-09

101

9494

79

68

2420

50

25

Q4-10Q3-10Q2-10Q1-10Q4-09Q3-09Q2-09

Prognose

Plan

Faktisk realisert

Prognose

Plan

Faktisk realisert

SUB PROJECT SpareBank 1 Livsforsikring REPORT DATE 08.10.2009





(FTEs, cumulative)


3030

89

7171

59

46

29

14

46

25

14

Q1-10Q4-09Q3-09Q2-09 Q4-10Q3-10Q2-10

21

1919

10

777 7

9

7

Q2-09 Q4-10Q3-10Q2-10Q1-10Q4-09Q3-09

Realiserte effekter per kvartal (MNOK)

Realiserte bemanningsreduksjoner per kvartal (Årsverk)

Prognose

Plan

Faktisk realisert

Prognose

Plan

Faktisk realisert

SUB PROJECT Bank 1 Oslo REPORT DATE 09.10.2009





(FTEs, cumulative)


3131

Bank 1 Oslo (group)Profit/loss as at Q3 2009

Q3 Q2 Q1 Q3Figures in MNOK 2009 2009 2009 2008 2009 2008

Net interest income 110.2 89.7 88.5 106.7 288.5 300.1Other operating income 130.7 125.8 87.0 32.0 343.5 145.0Operating costs 135.3 123.0 127.4 113.0 385.7 370.1Operating result before losses 105.6 92.6 48.0 25.7 246.2 75.0Net loan loss provisions 30.9 25.0 34.9 31.9 90.9 14.9Pre-tax operating profit 74.7 67.6 13.1 -6.2 155.4 60.2Taxes 14.1 8.9 2.2 -1.5 25.2 16.9Net profit/loss for the period 60.6 58.7 10.9 -4.7 130.2 43.2

Key figures Q3 Q2 Q1 Q3Figures in percentage 2009 2009 2009 2008 2009 2008Net interest margin 1.71 % 1.41 % 1.41 % 1.85 % 1.51 % 1.82 %Cost/income ratioexcl. equity investment portfolio (parent bank) 65.1 % 74.5 % 70.9 % 59.6 % 69.9 % 67.4 %Cost/income ratioincl. equity investment portfolio 56.2 % 57.0 % 72.6 % 81.4 % 61.0 % 83.1 %Return on equity (parent bank) 16.1 % 6.7 %Return on equity 17.0 % 5.2 %Deposit coverage ratio 72.9 % 71.6 %Capital adequacy ratio (parent bank) 11.0 % 9.3 %Core capital adequacy ratio (parent bank) 8.1 % 8.7 %

Year to date

Year to date

3232

Bank 1 Oslo (parent bank) Increasing non-performing loans in CM in Q3, reduced in RM

157102 105

64

179

283349

234309

57

49

67

117

110

124

108

16964 58

51

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

400.0

450.0

500.0

Q22007

Q32007

Q42007

Q12008

Q22008

Q32008

Q42008

Q12009

Q22009

Q32009

MN

OK

Corporate market Retail market

3333

SpareBank 1 Livsforsikring Profit/loss as at Q3 2009

*

Q3 Q2 Q1 Q3Figures in MNOK 2009 2009 2009 2008 2009 2008 Insurance risk income 303.9 304.7 310.4 291.0 919.0 868.8 Insurance risk claims -208.0 -190.7 -211.8 -237.3 -610.5 -688.2Risk result 95.9 114.0 98.6 53.7 308.5 180.5 Tecnical allocations -8.5 -10.9 -11.7 -15.9 -31.1 -50.8Risk result after tecnical allocations 87.4 103.2 86.9 37.8 277.4 129.8 Fees 151.9 132.5 149.6 146.6 434.0 434.5 Expenses, exclusive comissions -132.7 -132.2 -139.8 -134.0 -404.7 -398.2 Comissions -49.7 -47.6 -47.0 -54.7 -144.3 -161.5Administration result -30.5 -47.2 -37.3 -42.1 -115.0 -125.2 Net investment income 241.8 464.4 59.3 -222.2 765.5 -5.5 Guaranteed interest to policyholders -110.3 -112.9 -110.1 -109.5 -333.3 -327.1Investment result 131.5 351.5 -50.8 -331.7 432.2 -332.6Result before allocations 188.3 407.4 -1.1 -336.0 594.6 -328.0 Undistributed profits to customers -93.7 -213.5 -8.9 6.1 -316.1 -1.9 Return on company's assets -13.4 11.7 34.4 -5.0 32.7 -13.0Net profit to owner before tax 81.2 205.6 24.4 -334.9 311.2 -342.9 Taxes 0.0 0.0 0.0 0.0 0.0 0.0Net profit/loss for the period 81.2 205.6 24.4 -334.9 311.2 -342.9

Key figures Q3 Q2 Q1 Q3 Year to date2009 2009 2009 2008 2009 2008

Capital adequacy ratio 18.3 % 14.8 %Buffer capital in % of insurance provisions 13.7 % 5.8 %

Year to date

* The company’s accounts do not show the tax cost because deferred tax advantages are not recognised in accordance with accounting standard IAS 12. The company’s tax cost of MNOK 141 year-to-date is included in SpareBank 1 Gruppen’s consolidated tax

3434


Return ordinary customer portfolio with guarantee as at 30 September 2009

4.9

4.0

6.0

5.0

3.7

24.0

48.7

0 10 20 30 40 50 60

Real estate

Hold to maturity

Foreign bonds

Norwegian bonds

Money market

Foreign shares

Norwegian shares

Percent

3535


Booked return for customer portfolios with guarantee year-to-date

3636

2.5

3.8

1.51.9

3.23.1

5.4

0

1

2

3

4

5

6

SpareBank 1 Storebrand Vital Nordea

Perc

ent

NA

Q22009

Q32009

Q22009

Q32009

Q22009

Q32009

Q22009

Q32009

Source: company presentations

SpareBank 1 Livsforsikring Balance sheet as at Q3 2009

Figures in MNOK 2009 2008 Intangible assets 61 454 Investments 2,013 1,752 Reinsurance's part of insurance obligations 217 183 Accounts receivable 585 237 Other assets 300 265 Prepayed liabilities and accrued income 0 3 Investments group portfolio 15,386 14,735 Investments options portfolio 5,221 4,217Total assets 23,783 21,846 Paid in capital 1,243 685 Other equity 616 627 Subordinated loan capital 525 525 Insurance obligations - contractual 15,449 15,243 Insurance obligations - investment options 5,300 4,256 Provisions for obligations 100 72 Premium deposits from reinsurance companies 127 94 Other obligations 307 260 Accrued liabilities, prepaied income 118 83Total liabilities and equity 23,783 21,846

Year to date

3737

SpareBank 1 LivsforsikringGrowth in premium income

Q3 Q2 Q1 Q3 Year to dateFigures in MNOK 2009 2009 2009 2008 2009 2008 Individual annuity and pension insurance 64.1 65.3 62.8 54.6 192.2 163.3 Individual endowment insurance 121.7 120.3 119.2 113.6 361.2 345.8 Group pension insurance 109.4 94.1 273.4 133.2 476.9 646.0 Individual life insurance 43.1 42.3 41.7 41.0 127.1 121.8 Group life insurance 128.7 116.1 212.1 127.4 456.9 450.3 Unit Linked - Annuity 11.2 10.8 11.8 9.2 33.9 28.4 Unit Linked - Endowment 67.8 76.4 44.6 49.1 188.8 178.7 Defined contribution pension 185.2 193.0 190.9 169.1 569.0 503.3Total gross due premium income 731.1 718.3 956.5 697.2 2,405.9 2,437.6 Premium reserves transferred from other companies 90.9 83.8 65.7 77.7 240.4 392.2 Reinsurance ceded -39.0 -40.0 -39.7 -40.2 -118.7 -198.8Premium income for own account 783.0 762.1 982.4 734.7 2,527.5 2,631.0

3838

SpareBank 1 LivsforsikringProfit/loss per portfolio as at Q3 2009

Figures in MNOKGroup

portfolio

Previouslyestablished

individual productsInvestment choice

portfolioCompanyportfolio Total

Risk result 279.7 -2.8 0.6 1.3 278.7Administration result 25.6 -32.6 -108.0 0.0 -115.0Net investment result 253.0 177.9 0.0 0.0 430.9Transferred to policyholders -200.8 -114.2 -1.2 0.0 -316.1Return on company's assets 0.0 0.0 0.0 32.7 32.7Sum 357.5 28.3 -108.6 34.0 311.2

3939

SpareBank 1 SkadeforsikringProfit/loss as at Q3 2009

Q3 Q2 Q1 Q3Figures in MNOK 2009 2009 2009 2008 2009 2008Gross written premium 995.1 1,033.7 1,237.9 900.2 3,266.8 3,126.2Net earned premium 971.8 940.2 919.2 931.5 2,831.3 2,742.6Net incurred claims -655.6 -691.2 -730.5 -690.7 -2,077.3 -1,999.1Net insurance operating costs -212.5 -207.6 -194.2 -195.1 -614.2 -586.2Other insurance income/costs -4.2 5.7 -3.4 0.1 -1.9 3.1Changes in other technical reserves 0.1 -13.4 -7.9 10.3 -21.1 -16.1Operating result before finance 99.7 33.7 -16.7 56.2 116.7 144.2Net financial income 177.8 158.3 70.1 10.5 406.2 111.6Other costs -1.1 -2.3 -1.3 -2.5 -4.7 -5.4Result before changes in security reserve 276.4 189.6 52.2 64.2 518.2 250.5Changes in security reserve -3.6 -4.7 -4.1 -6.2 -12.4 -13.5Pre-tax profit 272.8 184.9 48.1 58.0 505.8 237.0Taxes -59.2 -51.8 -13.5 -16.2 -124.5 -66.4Net profit/loss for the period 213.5 133.2 34.6 41.7 381.3 170.6

Key figures Q3 Q2 Q1 Q3Figures in percentage 2009 2009 2009 2008 2009 2008Claims ratio, net 67.5 % 73.5 % 79.5 % 74.1 % 73.4 % 72.9 %Cost ratio, net 21.9 % 22.1 % 21.1 % 20.9 % 21.7 % 21.4 %Combined ratio, net 89.3 % 95.6 % 100.6 % 95.1 % 95.1 % 94.3 %Capital adequacy ratio 27.0 % 27.0 %

Year to date

Year to date

4040

ODIN ForvaltningProfit/loss as at Q3 2009

Q3 Q2 Q1 Q3Figures in MNOK 2009 2009 2009 2008 2009 2008Management fees 66.9 57.0 46.3 76.1 170.2 243.2Subscription and redemption fees 6.1 6.7 6.2 7.9 19.1 33.1Total operating income 73.0 63.8 52.5 84.1 189.3 276.3Salaries 23.4 18.5 19.2 25.3 61.1 78.6Depreciations 4.0 3.9 4.1 3.7 12.0 10.7Other operating costs 28.0 30.9 31.7 32.4 90.6 111.6Total operating costs 55.4 53.4 55.0 61.5 163.8 200.9Operating profit 17.6 10.4 -2.5 22.6 25.6 75.4Net financial income -1.7 -0.8 -5.0 3.1 -7.4 9.7Resultat før skatt 16.0 9.6 -7.5 25.7 18.1 85.2Skattekostnad 4.4 0.4 0.2 7.2 5.1 23.8Resultat 11.5 9.2 -7.7 18.5 13.1 61.3

Year to date

4141

Other companies

• The subgroup consists of factoring, debt collection and acquisition of non-performance portfolio

• Pre-tax profit as at Q3 of MNOK 20

SpareBank 1 Gruppen Finans Holding

SpareBank 1 Medlemskort

• The company was established in October 2008

• SpareBank 1 Gruppen AS owns 75% of Argo Securities AS

• Pre-tax profit as at Q3 of MNOK -39

• SpareBank 1 Medlemskort operates the LO unions' joint membership database for delivery of membership cards, collection of insurance premiums for group insurance, plus operation of LOfavør, a rewards programme

• Pre-tax profit as at Q3 of MNOK 11 (12)


(100%)


(100%)





ActorVerdigjenvinning

(100%)

ActorVerdigjenvinning

(100%)


Holding AS(100%)


Holding AS(100%)

4242

Assumptions for calculating the pension liability in SpareBank 1 Gruppen

4343

30.09.2009 30.09.2008 31.12.2008Discount rate 4.40 % 4.80 % 3.80 %Basic amount adjustment/inflation 4.00 % 4.25 % 3.75 %Wage adjustment 4.00 % 4.25 % 4.00 %Expected return on pension funds 5.80 % 5.80 % 5.80 %AFP early retirement plan 40 % 40 % 40 %Pension adjustments 2.50 % 2.30 % 1.50 %

Mortality K2005 K2005 K2005Disability IR2003 IR2003 IR2003

Cancellations4 % below 50

years and 2 %above 50 years

4 % below 50years and 2 %

above 50 years

4 % below 50years and 2 %

above 50 years

• SpareBank 1 Gruppen shows at all times the market value of the pension liability in the balance sheet

• SpareBank 1 Gruppen applies a new scale K2005

Key figures SpareBank 1 Gruppen with subsidiariesFigures in MNOK

Q32009

Q22009

Q12009

Q42008

Q32008

Q22008

Q12008

Q42007

Q32007

GroupCapital adequacy ratio 13.9 % 14.6 % 14.5 % 12.6 % 12.0 % 13.0 % 12.6 % 13.1 % 11.3 %Core capital adequacy ratio 9.3 % 9.9 % 9.8 % 9.4 % 9.0 % 9.0 % 9.2 % 9.6 % 7.9 %Net profit acc. 697.3 295.9 5.2 -857.7 221.5 211.1 63.7 309.0 275.6Return on equity p.a. 18.6 % 12.3 % 0.6 % -16.1 % 5.8 % 7.9 % 4.7 % 26.2 % 26.8 %

Life insuranceGross due premium income 731.1 718.3 956.5 704.7 697.2 721.0 1,019.4 822.9 844.6 Retail 307.9 315.2 280.1 285.5 267.5 283.1 287.4 413.0 462.6 Corporate 423.2 403.1 676.4 419.2 429.7 437.9 732.0 410.0 382.1Total assets 23,783 22,934 21,237 21,217 22,287 23,059 22,909 23,998 23,574Capital adequacy ratio 18.3 % 18.7 % 15.1 % 14.3 % 14.8 % 14.8 % 12.5 % 12.5 % 10.8 %

P&C insuranceNet earned premium 971.8 940.2 919.2 935.0 931.5 908.5 902.6 900.0 890.7 Retail 847.3 821.8 804.2 822.8 815.5 798.7 791.2 791.0 787.4 Corporate 99.3 93.7 91.0 89.9 90.5 85.0 87.6 88.0 85.7 Reinsurance 25.3 24.7 24.0 22.3 25.5 24.7 23.8 20.0 17.6Net financial income 177.8 158.3 70.1 -74.7 10.5 92.0 9.1 97.5 86.2Return on financial assets 5.26 % 3.07 % 0.70 % -0.97 % 0.12 % 1.27 % 0.11 % 1.41 % 1.22 %Claims Ratio, net 67.5 % 73.5 % 79.5 % 69.7 % 74.1 % 70.3 % 74.2 % 74.0 % 72.4 %Cost Ratio, net 21.9 % 22.1 % 21.1 % 23.3 % 20.9 % 23.5 % 19.7 % 21.8 % 19.5 %

Bank 1 OsloNet interest income 110.6 89.9 88.8 89.9 105.31 95.9 96.7 97.0 90.4Net loan loss provisions 30.9 25.0 34.9 50.2 31.8 -13.2 -3.8 -3.0 -3.0Loans 21,247 21,392 21,030 20,688 20,261 19,574 18,844 18,089 17,112 Retail 14,396 14,630 14,655 14,340 13,983 13,574 12,745 12,415 11,981 Corporate 6,851 6,762 6,376 6,348 6,279 6,000 6,098 5,674 5,131Deposits 15,490 15,786 15,914 15,925 14,122 14,681 13,578 13,378 13,550Capital adequacy ratio 11.0 % 11.7 % 11.6 % 8.0 % 9.3 % 9.9 % 11.4 % 10.0 % 9.8 %Net interest income/average totalt assets 1.71 % 1.40 % 1.41 % 1.48 % 1.82 % 1.81 % 1.86 % 1.92 % 1.85 %Return on equity acc. (parent bank) 16.0 % 13.2 % 4.7 % 1.7 % 6.7 % 10.1 % 9.5 % 9.3 % 10.2 %Return on equity acc. (group) 17.0 % 23.2 % 4.4 % -1.2 % 5.3 % 8.7 % 8.1 % 8.1 %

ODINAssets under management 25,388 22,347 17,431 19,163 23,581 30,508 31,400 37,800 45,600Equity fund market share 12.4 % 12.8 % 13.1 % 13.8 % 13.7 % 14.6 % 15.6 % 15.9 % 18.9 %

4444

3rd quarter (Q3) 2009 - Presentation of results from SpareBank 1 Gruppen

Investor Relations

Transcript of 3rd quarter (Q3) 2009 - Presentation of results from SpareBank 1 Gruppen