Preliminary report and accounts 2014

5 February 2015

4th quarter report 2014 - Group

• Profits before tax: NOK 1 345 mill (1 181 mill)

• ROE: 12.2 % (13.0 %)

• ROE exclusive of write-down Russia: 14.8 %

• Very good solidity and liquidity

• Proposed cash dividend: NOK 1.90 kr (1.10)

• Payout ratio Group: 38.7 % (26.7 %)

• Continued good macroeconomic outlook for Nord-Norge

2

3

Nord-Norge – macro economy

Norwegian economy is moving northwards

4

North Norway will be the newcenter of gravity for theNorwegian economyTromsø, 11/11-14

5

Growth unless otherwise

stated

NORTHERN NORWAY NORWAY

Est.2013 2014 2015 2016 SSB 2013 2014 2015 2016

Private consumption 107 bn 2 % 2 % 3 % 2,1 % 2 % 2 % 3 %

Public consumption 73 bn 2 % 3 % 3 % 1,6 % 2 % 3 % 3 %

Fixed investments 42 bn 2 % 2 % 3 % 8,7 % 1 % 2 % 3 %

Exports international 49 bn 6 % 7 % 7 % -3,9 % 4 % 4 % 4 %

Imports international 46 bn 2 % 3 % 4 % 2,5 % 2 % 3 % 3 %

Exports to rest of

Norway 85 bn 2 % 2 % 3 %

Imports from rest of

Norway 128 bn 2 % 3 % 3 %

GDP (mainland) 182 bn 3 % 3 % 4 % 2,0 % 2 % 2 % 3 %

Employment 0,9 % 0,5 % 0,5 % 1,0 % 1,2 % 0,5 % 0,0 % 1,0 %

Unemployment level 2,9 % 3,0 % 3,1 % 3,0 % 2,6 % 3,1 % 3,7 % 3,5 %

Economic prognosis: Export growth Norway 4 %, North Norway 7 %

North Norway – macro-economic advantages

6

• Strong export industries with positive

impulses

• The regional oil and gas industry is still in an

early phase, thus representing an upside

rather than a downside potential

• Considerable infrastructure investments

are planned for the export industries

• The public sector represents a stabilising

factor

A diversified and growing export oriented business sector

Kilde: SSB/Menon

NO

K b

ill

Gro

wth

–p

rog

no

sis

Exports from North

Norway - NOK billAverage yearly growth 2014 – 2016; prognosis

7

Seafood from North Norwayon the global food dish

8

Export value from North Norway 2013Estimated share of national export value

Oil and gas: Considerable discoveries in 2014

Exploration activities 2014 - areas

Number of oil wellsNumber of oil wells Discoveries: Number and volume

Norw.sea

9

New fields with economic spill-over effects

10

Speed of exploitation influenced by oil price

Kilde: SSB/Menon

2048: 65% in the

north

11

NOK 300 bill. investments in infrastructure

12

Housing market in the north

13

38.958 30.716 21.087 32.561 18.446 17.929

16,6 %

11,2 %

8,1 % 8,1 %

11,6 %

8,1 %

0%

3%

6%

9%

12%

15%

0

10.000

20.000

30.000

40.000

50.000

Tromsø Bodø Finnmark Norge Troms ex Tromsø Nordland ex Bodø

House pricesPrice level and Growth y/y, December 2014

Average price, NOK per m2, all units Price increase y/y

14

Strategy and brand

SpareBank 1 Alliance; a frontrunner in digitalization

15

Banks on the internet; they all look the same

16

…while the world’s best internet bank is based on a mission

17

…a fact that has inspired SpareBank 1 Nord-Norge

For Nord-Norge!

18

A profitable business model

19

• A unique brand

• Local presence

• Regional knowledge

• A national alliance

• Focus on core banking

20

Financial figures

Main financial targets

21

Profitability:

• Banking operations at top

international level: Minimum

12% ROE

Solidity:

• undisputable solid

• Internal capital buffer of at least 1 percentage point above the statutory

minimum requirement.

• Long term goal for Core Tier 1 level is currently 14.5 %

Capital adequacy ratio - Group

22

9,9 %

10,6 %10,3 %

12,3 %12,6 %

5%

6%

7%

8%

9%

10%

11%

12%

13%

31.12.10 31.12.11 31.12.12 31.12.13 31.12.14

Tier I Capital Lower limit Common Equity Tier I

Profit and loss account - Group

23

(Amounts in NOK million) 31.12.14 31.12.13

Net interest income 1 426 1 285Net fee-, commision and other operating income 966 931Net income from financial investments 602 346Total net income 2 994 2 562

Total costs 1 328 1 209Result before losses and write-downs 1 666 1 353

Net losses and write-downs 321 172

Result before tax 1 345 1 181

Tax 223 214

Resultat virksomhet holdt for salg, etter skatt 27 0

Minority interests - 1 1

Result for the period 1 096 966

Return on equity capital 12,2 % 13,0 %

ROE excluding

write-downs

Russia:14.8 %

23

Quarterly summary – Profit and loss account figures (Amounts in NOK million) 4Q14 3Q14 2Q14 1Q14 4Q13

Net interest income 378 378 342 328 355Net fee-, commision and other operating income 237 238 248 243 262Net income from financial investments 51 119 189 243 85Total net income 666 735 779 814 702

Total costs 354 325 333 316 327Result before losses and write-downs 312 410 446 498 375

Net losses and write-downs 236 38 22 25 50Result before tax 76 372 424 473 325

Return on equity capital 1,5 % 13,5 % 15,8 % 18,6 % 13,7 %Cost/income 53,2 % 44,2 % 42,7 % 38,8 % 46,6 %

Result before tax exclusive of write-down Russia: NOK 376 mill24

25

Net interest income - Group

Changes in net interest income last quarter

Measured

against average

funding cost

26

456

89

11 8

460

0

50

100

150

200

250

300

350

400

450

500

Net interest

income 3Q14

Deposits margin Lending margin

corporate

Lendring margin

private

Other Net interest

income 4Q14

Lending margin, Parent bank

The interest

margin is defined

as the difference

between the

customer lending

(deposit) interest

rate and average 3

month NIBOR

1,82 %

2,25 %

2,50 %

2,48 % 2,48 %

2,72 % 3,05 %3,11 % 3,12 %

3,04 %2,92 %

2,99 %2,92 %

1,02 %

1,51 % 1,53 %1,64 % 1,68 %

2,15 %

2,41 %2,49 % 2,47 % 2,43 %

2,28 % 2,23 %2,30 %

0,00 %

0,50 %

1,00 %

1,50 %

2,00 %

2,50 %

3,00 %

3,50 %

4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14

Interest margin corporate Interest margin corporate27

Customer deposit, Parent bank

The interest margin is

defined as the

difference between

average 3 month NIBOR

and the customer

deposit interest rate

0,61 %

0,31 %

0,20 %

0,11 %0,05 %

0,00 %

-0,02 %-0,08 %

-0,12 %-0,16 %

-0,04 %-0,01 % 0,01 %

-0,11 %-0,17 %

-0,35 %

-0,46 %

-0,67 %-0,74 %

-0,81 % -0,81 % -0,82 % -0,81 % -0,79 %-0,84 %

-0,75 %

0,82 %

0,16 %

-0,08 %-0,14 %

-0,37 %

-0,46 %-0,50 % -0,50 %

-0,55 %-0,59 %

-0,43 %

-0,26 %-0,32 %

-1,00 %

-0,80 %

-0,60 %

-0,40 %

-0,20 %

0,00 %

0,20 %

0,40 %

0,60 %

0,80 %

1,00 %

4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14

Interest margin corporate Interest margin publicInterest margin retail28

Quarterly summary – Profit and loss account figures (Amounts in NOK million) 4Q14 3Q14 2Q14 1Q14 4Q13

Net interest income 378 378 342 328 355Net fee-, commision and other operating income 237 238 248 243 262Net income from financial investments 51 119 189 243 85Total net income 666 735 779 814 702

Total costs 354 325 333 316 327Result before losses and write-downs 312 410 446 498 375

Net losses and write-downs 236 38 22 25 50Result before tax 76 372 424 473 325

Return on equity capital 1,5 % 13,5 % 15,8 % 18,6 % 13,7 %Cost/income 53,2 % 44,2 % 42,7 % 38,8 % 46,6 %

29

Total commission and other income

526590 567

686

892 940

248 19

44

114100

21,4 %

25,1 %

27,8 %

31,5 %

36,3 %32,3 %

0%

5%

10%

15%

20%

25%

30%

35%

40%

0

200

400

600

800

1.000

1.200

2009 2010 2011 2012 2013 31.12.14

Total other operating income Net commision income Net fee-, commission and other income as % of total net return

30

Income from financial investmentsGroup

(Amounts in NOK million) 4Q14 3Q14 2Q14 1Q14 4Q13

Dividends 0 0 5 11 27

Income from joint ventures121 142 119 71 303

Gains/losses and net value changes on shares -69 -21 44 144 57Net value changes on bonds, foreign exchange and fin.derivatives -1 -2 21 17 35

Income from financial investments51 119 189 243 422

31

Of this write-down Russia NOK 93 mill in 4Q 2014

Group operating costs

32

(Amounts in NOK million)

31.12.14 31.12.13 Change

Wages and salaries 587 553 34Pension costs 41 31 10Social costs 76 54 22Total personnel costs 704 638 66

Administration costs 349 337 12Total personnel- and general administration costs 1 053 975 78

Depreciation and write-downs of fixed assets 97 56 41Total operating costs 178 178 0Total costs 1 328 1 209 119

32

Group operating costs

33 33

Core banking operations-(excl. income from financial investments)

34 34

(Amounts in NOK million) 4Q14 3Q14 2Q14 1Q14 4Q13

Net interest income 378 378 342 328 355Net fee- and commission income 212 219 221 214 210Other operating income 25 19 27 29 52Total costs 340 325 333 316 327

Underlying banking operations 275 291 257 255 290

Net losses and write-downs 44 38 22 25 50Underlying banking operations

after losses 231 253 235 230 240

Losses on loans and guarantees - customers

35

185

87101

195

172164

0,31 %

0,14 % 0,15 % 0,26 %0,21 % 0,19 %

0,00 %

0,20 %

0,40 %

0,60 %

0,80 %

1,00 %

1,20 %

1,40 %

0

50

100

150

200

250

2010 2010 2011 2012 2013 2014

NOK mill

Net losses Net losses in % of gross lending incl. SpareBank 1 Boligkreditt and Næringskreditt

Customer losses (NOK 164 mill) includes write-down Russia; NOK 35 mill

Group companies result before tax

36

(Amounts in NOK 1000) 31.12.14 31.12.13

SpareBank 1 Finans Nord-Norge AS 116 438 98 739SpareBank 1 Nord-Norge Portefølje AS 19 906 -29 776

SpareBank 1 Regnskapshuset Nord-Norge AS 3 839 -1 414EiendomsMegler 1 Nord-Norge AS 15 208 15 356SpareBank 1 Nord-Norge Forvaltning ASA 2 509 2 395North-West 1 Alliance Bank -3 245 1 586EiendomsMegler 1 Lofoten AS (owned by EM1 60%) 344 - 52

Nord-Norge Eiendom IV AS 1 230 0

Alsgården AS - 335 - 3

Fr. Langes gate 20 AS 1 406 0

Total 157 300 86 832

36

Profit allocation

37

The proposed cash dividend of NOK

1.90 will be distributed to equity

certificate holders registered as

owners as of 24.03.15.

Group pay-out ratio: 36.8 % to both

owner groups.

Equity certificate holders’ share of the

equity (ownership fraction ) at 1

January 2015: 47.33% (unchanged)

37

(Amounts in NOK million)

Parent Bank's profit after tax 743,3

Allocated to cash dividend 190,8

Allocated to dividend equalisation fund 161,0

Total to EC-holders 47,3 % 351,8

Pay-out ratio EC-holders 54,2 %

Allocated to donations 212,3

of which to donation to Sparebankstiftelsen SNN 167,3

Allocated to the Savings Bank's Fund 179,2

Total to the bank's community owned capital 52,7 % 391,5

Payout ratio community owned capital 54,2 %

Total allocated 743,3

Undistributed profit of Parent Bank's profit 45,8 %

Undistributed profit of Group's profit 63,2 %

As part of a faster normalisation of the dividend policy, the Board is planning a

further increase of the pay-out ratio for the accounting year 2015

Key figures balance sheet

31.12.14 31.12.13 Change %

Total assets 83 188 77 520 5 668 7,3%

Gross lending 61 249 57 282 3 967 6,9%

Loans and advances to customers incl SpareBank 1 Boligkreditt and Næringskreditt

84 980 80 581 4 399 5,5%

Deposits from customers 45 761 44 940 821 1,8%

38

Lending volume

70

%

30

%

Retail incl. SpareBank

1 Boligkreditt

59

%

41

%

Retail excl. SpareBank

1 Boligkreditt

68.03369.978

72.33174.665 75.914 75.956 76.982

79.08380.581 81.511 82.452

83.946 84.980

0

10 000

20 000

30 000

40 000

50 000

60 000

70 000

80 000

90 000

des. 11 mar. 12 jun. 12 sep. 12 des. 12 mar. 13 jun. 13 sep. 13 des. 13 mar. 14 jun. 14 sep. 14 des. 14

NOK milll

SpareBank 1 Boligkreditt and Næringskreditt Retail banking market Corporate and public

Growth past 12 months:

Loans and advances to customers incl SpareBank 1 Boligkreditt and Næringskreditt 5,5 %

Retail incl. SpareBank 1 Boligkreditt 6,1 %

Corporate and public 3,9 %39

Deposit volume

41 76539 675

43 745 43 26644 940

43 635

46 94945 386 45 761

80,9 %77,9 %

82,9 %

76,5 %78,45 %

75,71 %

79,86 %

75,19 % 74,71 %

30%

40%

50%

60%

70%

80%

90%

100%

0

5 000

10 000

15 000

20 000

25 000

30 000

35 000

40 000

45 000

50 000

des. 11 mar. 12 jun. 12 sep. 12 des. 13 mar. 14 jun. 14 sep. 14 des. 14

Retail banking market Corporate Public Deposits as a percentage of gross lending

Deposit growth excl. Treasury bills (exchange scheme):

Deposits growht past 12 months 6,8 %Retail banking market 9,1 %Public -1,9 %Corporate 6,1 %40

41

Credit area

The Group's non-performing, impaired and other problem commitments

42

31.12.09 31.12.10 31.12.11 31.12.12 31.12.13 31.03.14 30.06.14 30.09.14 31.12.14

Non-performing commitments 575 492 471 397 486 474 457 418 457

Other problem commitments 228 378 338 592 373 345 269 253 90

Individual write-down for impaired value (left axis) 232 273 208 303 244 235 217 243 171

Gross non-performing and impaired commitmentsin % of gross lending incl. agency loans (right axis)

1,34% 1,36% 1,18% 1,30% 1,06% 1,00% 0,88% 0,80% 0,64%

0,00%

0,50%

1,00%

1,50%

2,00%

2,50%

3,00%

0100200300400500600700800900

1.0001.100

MN

OK

Distribution on segments shows good diversificationLoan portfolio including Boligkreditt

A high share of retail- and primary industry lending represent a risk mitigating factor.

The Group has a well diversified corporate market lending portofolio.

No specific concerns related to the bank's loans to commercial property due to low interest rates and

good occupancy rates in the bank's market area. 43

Property

management

9,9 %

Wage-earners 42,5 %

SPB1 Boligkreditt 27,9 %Construction building 2,3 %

Other service industry 2,2 %

Agriculture, fisheries, fish

farming 5 %

Transport and wholsesale 6,3 %

Maritime sector 0,3 %

Other 3,9 %

Andre 19,7 %

SpareBank 1 Nord-Norge and Russia

• 2013: SNN decides to downscale activities in Russia. Start up of work on possible exit solutions

started, but due to a continuously deteriorating Russian economy, this has not been realized.

• The economic situation in Russia is challenging due to low oil price, economic sanctions, and a

weak RUB.

• Many Russian bank customers have moved their bank deposits to foreign or government owned

banks, or to banks they perceive as being guaranteed by the state. This has resulted in many

Russian banks, including TB, ending up in a difficult liquidity situation.

• SNN is the main owner in North West 1 Alliance Bank (NW1), TB owns 25 %.

• NW1 is primarily funded by SNN and has not experienced the same liquidity challenges that

many other Russian banks have.

44

Russia – exposure and status 31.12.14

• Equity exposure TB (NOK countervalue):

‒ TB: NOK 95 mill

‒ NW 1: NOK 70 mill

‒ Total: NOK 165 mill

• Exposure lending (NOK countervalue):

‒ TB/NW 1 NOK 450 mill

• Total exposure: NOK 615 mill

• SNN has reduced its exposure in Russia by more than NOK 200 million since 2013.

• Write-down as at 31.12.2014: NOK 300 mill

45

Portfolio – Oil related exposure as of 31.12.14

46

The exposure is 2.4 % of total gross lending (incl. Bolig- and Næringskreditt)

Oil Related Exposure by Line of Business (NOK mn)

Total

exposure

o/w

Shipping Comments

Operation (Maintaince & modification, PSV, AHTS*, MPU*) 964 964 all related to PSV, AHTS and MPU

Other 1.055 0

o/w 800 NOK mn are onshore

supportbase

Total 2.019 964

Portfolio – CHF denominated lending as at 31.01.15

47

• Limited portfolio – countervalue of 974 MNOK

• Fewer than 200 commitments – approx. 160 retail and 40 corporate

customers

• A product to customers with low LTV and good earnings

• Credit policy changed based on our experience last few months

48

Liquidity/funding

Funding instruments 31.12.2014

49

Maturity profile 31.12.14Capital markets funding (excl. SPABOL)

50

• Good diversification in terms of

maturities

• NOK 22.525 mill in capital market

funding exclusive of SB1

Boligkreditt

• SpareBank 1 Boligkreditt is an

important funding source.

Mortgage loans of NOK 23.733

mill transferred as at 31.12.14.

• Amount of gross maturities of

capital market funding next 12

months is NOK 3.611 mill

51

Summary

Why invest in SpareBank 1 Nord-Norge?

1) Continued strong macro economics in North Norway

2) Very strong position in the region

4) Good solidity and capacity for profitable growth

3) Profitable growth within core banking activities

52

SpareBank 1 Nord-Norge

P o Box 6800

N- 9298 Tromsø

CEO Jan-Frode Janson CFO Rolf Eigil Bygdnes

Tel +47 909 75183 Tel +47 905 19 774

SNN home page and internet bank: www.snn.no

Equity capital certificates in general: www.egenkapitalbevis.no

Financial calendar 2015:

29 April

12 August

29 October

Contact information:

54

Enclosures

Head office: Tromsø

Organisation: 5 regioner

Regional offices: Hammerfest

Tromsø

Harstad

Bodø

Mo i Rana

Branches: 66

Vision: For Nord-Norge!

SpareBank 1 Nord-Norge

55

Organisation of the financial services Group

56

SpareBank 1 Nord-NorgeFinancial Services Group

SpareBank 1 Nord-Norge Portefølje ASEquity stake 100 %

EiendomsMegler 1 Nord-Norge AS

Equity stake 100 %

EiendomsMegler 1 Lofoten ASEquity stake 60 %

North-West 1 Alliance Bank

Equity stake 75 %

SpareBank 1 Gruppen ASEquity stake 19,5 %

SpareBank 1 Boligkreditt ASEquity stake 14,71 %

SpareBank 1 Nord-Norge Forvaltning ASA

Equity stake 100 %

SpareBank 1 Næringskreditt ASEquity stake 20,83 %

BN Bank ASAEquity stake 23,5 %

Alliansesamarbeidet SpareBank 1 DAEquity stake 17,74 %

SpareBank 1 Regnskapshuset Nord-Norge ASEquity stake 100 %

SpareBank 1 Kundesenter ASEquity stake 100 %

SpareBank 1 Verdipapirservice ASEquity stake 100 %

SpareBank 1 Kredittkort ASEquity stake 19,83 %

SpareBank 1 Finans Nord-Norge ASEquity stake 100 %

Nord-Norge Eiendom IV ASEquity stake 100 %

Alsgården ASEquity stake 100 %

Fredrik Langs gate 20 ASEquity stake 100 %

SpareBank 1 Markets ASEquity stake 27,02 %

57

Main financial figures

Key figures12,6 %

7%

8%

9%

10%

11%

12%

13%

2010 2011 2012 2013 2014

Common Equity Tier I % incl share of result

12,2 %

4%

6%

8%

10%

12%

14%

16%

18%

20%

2009 2010 2011 2012 2013 2014

Return on equity capital

44,4 %

20%

25%

30%

35%

40%

45%

50%

55%

60%

2009 2010 2011 2012 2013 2014

Cost/income group

0,9 %

0,6 %

0,8 %

1,0 %

1,2 %

1,4 %

1,6 %

1,8 %

2,0 %

2009 2010 2011 2012 2013 2014

Total non-perf and impaired commitm. as % of gross loans

58

Quarterly results – net interest income

(Amounts in NOK million) 4Q14 3Q14 2Q14 1Q14 4Q13

Interest and similar income from loans to and claims on credit institutions 9 13 3 1 1Interest and similar income from loans to and claims on customers 697 699 658 686 773Interest and similar income from certificates, bonds and other interest-bearing securities 49 61 60 62 65Total interest income 0 0 0 0 0Interest and similiar income 755 773 721 749 839

Interest and similar costs on liabilities to credit institutions 16 17 14 13 - 19Interest and similar costs relating to deposits from and liabilities to customers 210 228 215 266 365Interest and similar costs related to the issuance of securities 124 122 121 113 108Interest and similar costs on subordinated loan capital 18 19 20 20 21Payments made to The Norwegian Banks' Guarantee Fund 9 9 9 9 9Total interest costs 377 395 379 421 484

Net interest income 378 378 342 328 355

59

Total commission and other income(Amounts in NOK million) 4Q14 3Q14 2Q14 1Q14 4Q13

Guarantee commissions 8 7 9 8 9Interbank commissions 5 4 5 4 5Credit arrangement fee 2 2 2 2 3Arrangement fee from SpareBank 1 Boligkreditt 81 80 87 95 91Arrangement fee from SpareBank 1 NN Finans 1 1 0 1 0Securities trading, administration and trust department services8 7 8 8 9Payment transmission services 55 67 57 52 55Brokerage commission 25 25 25 20 18Insurance services 33 32 38 31 32Other commission income 14 13 9 9 11Total commissions income 232 238 240 230 233

Operating- and sales income real estate 3 3 4 4 11Other operating income 22 16 23 25 41Total other operating income 25 19 27 29 52

Commission expenses 20 19 19 16 23

Net fee-, commision and other operating income 237 238 248 243 262

60

Operating expenses(in NOK million) 4Q14 3Q14 2Q14 1Q14 4Q13

Wages and salaries 152 159 134 142 154Pension costs 11 9 13 8 3Social costs 27 25 12 12 17Sum personalkostnader 190 193 159 162 174

Development costs 28 27 26 26 29Electronic data processing costs 19 17 17 15 14Marketing costs 16 19 19 21 14Travel - and training costs 10 5 8 9 10Communications 0 3 3 3 3Postage 3 3 3 3 3Consultancy services 6 4 6 6 10Cost involving the handling of cash 3 4 2 3 3Office-related costs 2 3 3 2 1Collection costs 1 1 1 1 1Ordinary depreciation 29 14 40 14 13Operating costs - premises/buildings 11 7 7 8 20Other operating costs incl rent 36 26 40 43 33Other costs 164 132 174 154 153

Total operating expenses 354 325 333 316 327

61

Credit growth corporates

62

3,9

3,4

-4

-2

0

2

4

6

8

10

12

14

16

2011M12 2012M12 2013M12 2014M12

%

Credit growth corporates. 12 mth growth

SNN, Corporate clients Norway, Corporates

Credit growth households

63

6,16,2

0

2

4

6

8

10

12

14

2011M12 2012M12 2013M12 2014M12

%

Credit growth households. 12 mth growth

SNN, Retail clients Norway, Households

Deposit growth corporates

64

6,1

4,3

-10

-5

0

5

10

15

20

2011M12 2012M12 2013M12 2014M12

%

Deposit growth corporates. 12 mth. growth

SNN, Corporate clients Norway, Corporates

Deposit growth households

65

9,1

7,2

0

2

4

6

8

10

12

2011M12 2012M12 2013M12 2014M12

%

Deposit growth households. 12 mth. growth

SNN, Retail clients Norway, Households

66

Credit area

Lending portfolio - comments

• Good increase in retail lending, with focus on commitments qualifying for

SpareBank 1 Boligkreditt (covered bond company).

• Moderate growth in corporate market lending in 2014.

• The portfolio and growth in corporate sector lending is diversified.

• Reduced individual losses in 2014 compared with losses as of 2013.

67

Loan losses: The Group's write-downs as at Q4 2014

68

Write-downs

2014 20134th quarter

2014 (iso)

4th quarter

2013 (iso)

Individual write-downs Retail market 25 14 17 2

Corporate market 148 136 81 34

SpareBank 1 Finans Nord-Norge 5 9 2 4

Other group units 16 13 7 4

Total individual write-downs 193 172 107 44

Collective write downs and other value change items 34 0 10 6

Effects from consolidations -63 0 -38 0

Total write-down on loans and guarantees 164 172 79 50

Portfolio - exposure as of 31.12.14, parent bank

69

0

5.000

10.000

15.000

20.000

25.000

30.000

35.000

Næringskreditt Boligkreditt Low risk Medium risk High risk Default/impaired

NO

K m

ill

Retail market Corporate market SB1 Boligkreditt SB1 Næringskreditt

Portfolio - exposure as of 31.12.14

70

Loans distributed by size of exposure and share of EAD

74%

11%9%

6%

70%

16%

8%6%

Below 10 mnok 10 - 100 mnok 100 - 250 mnok Above 250 mnok

Share of loanexposure (EAD) Dec 2014 Share of loanexposure (EAD) Dec 2013

Numbers includes SB 1 Bolig- and Næringskreditt

Loan losses: The Group's write-downs as of Q4 2014

71

Write-downs

2014 20134th quarter

2014 (iso)

4th quarter

2013 (iso)

Individual write-downs Retail market 25 14 17 2

Corporate market 148 136 81 34

SpareBank 1 Finans Nord-Norge 5 9 2 4

Other group units 16 13 7 4

Total individual write-downs 193 172 107 44

Collective write downs and other value change items 34 0 10 6

Effects from consolidations -63 0 -38 0

Total write-down on loans and guarantees 164 172 79 50

72

Equity certificate holders

Equity Certificates (EC) - holder structure

73 73

The 20 largest EC holders

74

Number of Share of total

Equity Certificate holders Equity Certificates capital

Pareto Aksje Norge 5.253.551 5,23 % MP Pensjon Pk 2.720.503 2,71 % Citibank, N.A. 2.385.597 2,38 % Pareto Aktiv 2.209.269 2,20 % Frank Mohn A/S 2.204.670 2,20 % Flps - Princ All Sec Stock Sub 1.795.800 1,79 % Sparebankstiftelsen Sparebank 1 Nord-Norge 1.411.606 1,41 % Forsvarets Personellservice 1.233.930 1,23 % Arctic Funds PLC 1.184.907 1,18 % Verdipapirfondet Dnb Norge (IV) 1.066.353 1,06 % VPF Pareto Verdi 1.056.986 1,05 % J.P. Morgan Chase Bank N.A. London 918.400 0,91 % Morgan Stanley & Co Llc 912.064 0,91 % Larre Eiendom 2 AS 873.623 0,87 % Tonsenhagen Forretningssentrum 2 AS 873.623 0,87 % Sparebankstiftelsen DnB NOR 840.306 0,84 % AS Atlantis Vest 806.114 0,80 % Renterisiko AS 770.265 0,77 % Consept Eiendom AS 739.796 0,74 % Morgan Stanley & Co Llc 662.873 0,66 %The 20 largest EC holders 29 920 236 29,80 %

74

The 20 largest EC holders residing in Northern Norway

75

Number of Share of total

Equity Certificate holders Equity Certificates Equity Certificate capital

Sparebankstiftelsen Sparebank 1 Nord-Norge 1.411.606 1,41 %

Consept Eiendom AS 739.796 0,74 %

Karl Ditlefsen 547.543 0,55 %

Norges Råfisklag 457.490 0,46 %

Troms Kraft AS 409.224 0,41 %

Tromstrygd 289.308 0,29 %

Taj Holding AS 260.000 0,26 %

Hansen Dahl Fiskeri AS 216.046 0,22 %

Tor Ovesen 206.556 0,21 %

Ole Alfred Rolf Ovesen 205.554 0,20 %

Agnar Holding AS 189.022 0,19 %

Gadd Holding AS 174.539 0,17 %

Entreprenørcompaniet Nord AS 169.596 0,17 %

Tromsø Skotøimagasin A/S 157.090 0,16 %

Rigamonti A/S 141.393 0,14 %

Brødrene Karlsen Holding AS 119.705 0,12 %

Odd Berg AS 119.545 0,12 %

Hemming Leonharth Andersen 113.567 0,11 %

Geir Andre Steiland 110.000 0,11 %

Hamneidet Eiendom AS 102.062 0,10 %

The 20 largest EC holders residing in Northern

Norway ¹) 6 139 642 6,12 %1) Postal code > 7999

75

76

SpareBank 1 Group and Alliance

Sr. Unsec. Ratings Fitch Moody’s

SpareBank 1 SMN A- / F2 A2 / P-1

SpareBank 1 SR-Bank A- / F2 A2 / P-1

SpareBank 1 Nord-Norge A / F1 A2 / P-1

Sparebank 1 Hedmark n/a A2 / P-1

• Founded 1996 - Economies of Scale - key banks in the Alliance trace their history back to the 1820’s

• Local presence – Norway’s most extensive branch network with 350 branches

• 2nd largest mortgage lender in the Norwegian Retail Market

• Market leader in its local markets - The neighbourhood bank with market shares from 30 - 50%

• Approx two thirds are retail lending- Rest is SME lending

SMN

SpareBank 1 - AllianceStrong alliance of Norwegian retail banks

Oslo

Tromsø

Trondheim

Bergen

Stavanger

Kristiansand

7777

Joint ProductPlatforms

Operational

Integration

Central

Functions

Property/Casualty Insurance

Life Insurance

Mutual Funds

Cards and Payments

Leasing Finance

Factoring and Collection

Markets

Risk Management

Underwriting procedures

(scorecards, models and credit policies)

IT System

SpareBank 1 Boligkreditt

SpareBank 1 Næringskreditt

Marketing and Branding

Business Development

Market Analysis

Procurement

Centres of Excellence

SpareBank 1

SR-Bank

SpareBank 1

SMN

SpareBank 1

Nord-Norge

Sparebank 1

Hedmark

11 Smaller SpareBank 1

Banks

The banks issue senior unsecured, subordinated and capital instruments individually

SpareBank 1 Alliance Structure

All banking and ancillary

products customers

Equity and creditinvestors

Covered bond investors

Mortgages, capital, commitments,

human resources etc.

Services, dividends,commissions,

covered bond funding

7878

SpareBank 1 - Alliance Second largest lender in Norway

Source: Banks‘ annual reports and own estimates, NBIM, Statistics Norway7979