Download presentation from press conference April 29th 2011. Presented by CEO Kirsten Idebøen.

1. 1st Quarter 2011
Q
Presentation of results
from SpareBank 1 Gruppen
Kirsten Idebøen, CEO
29 April 2011

2. Highlights
SPAREBANK 1 GRUPPEN
• Significantly improved profit for Q1
• Good return on equity of 12.4 (8.8) %
• Extensive restructuring in SpareBank 1 Livsforsikring has given tangible results
2

3. Significantly improved profit
Pre-tax profit Group* as of Q1, (MNOK)
162 • Pre-tax profit for Q1: MNOK 162 (131)
131 • Profit after tax for Q1: MNOK 152 (93)
• Annualised return on equity: 12.4 (8.8) %
87
68
• Capital adequacy ratio of 16.1 (20.3) %. Core
capital adequacy ratio of 12.6 (14.6) %
• The Group's total assets were NOK 41.3 billion,
compared to NOK 40.7 b ll
d billion at year-end 2010
d
2008 2009 2010 2011
* Comparison figures for 2008 and 2009 have been restated and do not include the Bank 1 Oslo Group
3

4. Improved profits in life and P&C insurance
Pre-tax profit per subsidiary as of Q1, (MNOK)
129
• Good investment result in SpareBank 1
Livsforsikring contributed to strongly improved
profit
92
– The life insurance company continued to build up
buffers throughout Q1
50 – Sufficient provisions for increased life expectancy
36
• Fewer winter-related claims in Q1 2011 reduced
14 12
15 claims ratio in SpareBank 1 Skadeforsikring
6
1
-1 • ODIN Forvaltning’s securities fund had NOK 33.4
billion in total assets
es
on
iv
de
subsidiarie
SB1 Li
SB1 Skad
correctio
– Up NOK 1.1 billion since year-end 2010
Group
ODIN
Other
– Result affected by high non-recurring costs
s
2010 2011
4

5. SpareBank 1
p
Livsforsikring
Strong investment result
contributes to good profit
5

6. SpareBank 1 Livsforsikring
Strong investment result contributes to g
g good profit
p
Development in risk result as of Q1
Pre-tax profit as of Q1, (MNOK) (MNOK)
129
92
87
92
69
63
24
-52
2008 2009 2010 2011 2008 2009 2010 2011
• Pre-tax result in Q1: MNOK 129 (92) • Net risk result: MNOK 69 (91)
• Investment result: MNOK 206 (69) in Q1 • Gross due premium income: MNOK 1,018
(981)
− CM: MNOK 696 (662)
• Provisions for increased life expectancy: − RM: MNOK 322 (319)
MNOK 33
• Administration result: MNOK -19 (-41) in Q1
6

7. SpareBank 1 Livsforsikring
Built up solid buffers
Buffer capital trend, per quarter (%)
Securities adjustment reserves per year
16.1 % (MNOK)
15.4 % 14.8 %
14.6
14 6 %
13.0 % 617
448
327
Q1 Q2 Q3 Q4 Q1
2010 2010 2010 2010 2011 2009 2010 Q1 2011
Core capital in excess of minimum Interim profit
Additional provisions Securities adjustment reserve
• Buffer capital including quarterly profits: 14.8 • Securities adjustment reserves: MNOK
(13.0) % 448 (454) in Q1
• Capital adequacy ratio: 19.2 (18.4) % • Total assets: NOK 26.2 billion, NOK 0.3
– Core capital adequacy ratio: 17.6 (15.6) % billion lower than at year-end 2010
• Estimated solvency margin: 295 (275) %
E ti t d l i
7

8. SpareBank 1 was the largest personal insurance provider
in Norway in 2010
Gross
New contracts
premium
SpareBank 1 32.9 % 22.3 %
Gjensidige 16.2 % 22.0 %
Storebrand 7.2 % 17.5 %
Nordea 17.7 % 12.5 %
Vital 2.5
25% 9.8
98%
Danica 4.5 % 6.1 %
Others* 19.0 % 9.8 %
* Other market players
New Gross
contracts premium
Frende 5.7 % 3.4 %
Terra 6.7 % 3.0 %
If 6.2 % 2.7 %
Personal insurance comprises products within Life insurance, disability insurance and disability capital.
Handelsbanken 0.4 % 0.7 %
New subscriptions and gross premium
Source: FNO market statistikk for 2010
8

9. SpareBank 1
Skadeforsikring Group
Improved results due to fewer winter-related claims
9

10. SpareBank 1 Skadeforsikring Group
Improved results due to fewer winter-related claims
winter related
• Pre tax
Pre-tax profit for Q1: MNOK 50 (36)
Pre-tax profit as of Q1, (MNOK)
– Insurance result: MNOK -30 (-53)
54
50
48 – Financial return of 1.1 (1.2) %
36
– Financial income: MNOK 95 (98)
• Total portfolio growth of MNOK 116, or
2.5 % since year-end 2010
– MNOK 37 from Unison Forsikring
2008 2009 2010 2011 – MNOK 79 from SpareBank 1
Skadeforsikring
– Total portfolio as of Q1 NOK 4.8 billion
48
• The NAF agreement has been established
and the first contracts sold
10

11. SpareBank 1 Skadeforsikring Group
Fewer winter-related claims reduced combined ratio in Q1
winter related
Net
N t combined ratio – quarterly (%)
bi d ti t l Net
N t combined ratio – cumulative (%)
bi d ti l ti
96.2 % 97.7 %
108.6 % 94.6 % 94.0 %
100.6 % 105.5 % 89.9 %
21.0 %
99.6 %
22.5 %
87.2 %
20.2 %
100.3 %
20 %
93.9 %
21.9 %
21.9 %
90.9 % 92.9 % 89.8 %
20.6 %
0.7
21.1 %
23.8 %
20.5 %
24.8 %
2
17.1 %
6
2
22.2 %
21.8 %
22.7 %
88.3 %
83.6 %
79.5 %
76.7 %
76.6 %
75.9 %
73.9 %
74.8 %
73.8 %
72.1 %
71.7 %
69.2 %
69.3 %
67.1 %
66.7 %
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2009 2009 2009 2009 2010 2010 2010 2010 2011 2005 2006 2007 2008 2009 2010
Net claims ratio Net cost ratio
Net claims ratio Net cost ratio
• Claims ratio as of Q1 2011 is lower than in Q1 2010,
but major losses and winter-related claims meant that
claims ratio still stayed h h
l ll d high
11

12. SpareBank 1 Skadeforsikring has the most
satisfied customers
• Norwegian customer barometer
g
survey shows SpareBank 1
Skadeforsikring has the industry's
most satisfied and loyal customers
• The company also ranked 12th in
customer satisfaction regardless of
the sector (out of 194 companies)
12

13. ODIN Forvaltning
g
Combination fund and new marketing profile
13

14. ODIN Forvaltning
Combination fund and new marketing profile
Pre-tax profit as of Q1, (MNOK)
• Pre-tax profit for Q1: MNOK 12 (14)
- Accounts charged with MNOK 8 in one-off
30
costs
• Profit after tax for Q1: MNOK 9 (11)
14
12
• Total
T t l assets of NOK 33 4 billion
t f 33.4 billi
- Up NOK 1.1 billion since year-end 2010
• Market h
M k t share of 10 6 % f equity fund as
f 10.6 for it f d
-7 per Q1, compared with 10.7 % at year-end
2008 2009 2010 2011 2010
• Market share of 3.2 % for newly acquired
combination fund
14

15. Argo Securities
g
The work on building a powerful capital
markets environment continues
15

16. Argo Securities
The work on building a p
g powerful capital markets environment
p
continues
Proactive recruitment in Argo Securities
• New recruitment will help achieve target market power
• The investments are expected to have significant result
effects throughout 2012
Shakeb Syed was appointed Argo Securities's new chief
economist
• Result as of Q1:
− Pre-tax: MNOK -3.4 (-2.7)
− After tax: MNOK -2.4 (-1.9)
• Increase in turnover
− Commission income on stocks and
derivatives: MNOK 12.1 (11.0)
− Debt capital markets: MNOK 5.8 (5.3)
− Corporate Finance: MNOK 10.9 (3.9)
16

17. SpareBank 1 Gruppen
p pp
Finans Group
Good performance in all business areas
within receivables management
17

18. SpareBank 1 Gruppen Finans Group
Good performance in all business areas within receivables
management
Pre-tax profit as of Q1, (MNOK)
2010 2011
7.2
• Pre-tax profit for Q1: MNOK 6.8 (3.7)
7.1
6.8 ― Lower losses and high factoring volume helped to
g
increased income in BA Factoring
― BA Portfolio's total portfolio volume as of Q1 was
MNOK 979, compared with MNOK 620 at year-end
3.7 2010
2.8
28
― Conecto AS and Actor Fordringsforvaltning were
merged into one company as of 1 January 2011
1.0 1.1
• Profit after tax for Q1: MNOK 4.5 (2.5)
(deb recovery)
Group**
B1G Finans
Annualised return on equity 6.3% (6.0%) for Q1
Conecto*
•
ortefølje
Factoring
BA
-1.6
BA
bt
SB
C
Po
*The debt collection company Conecto was acquired with accounting effect from 10th September 2010. The profit up to the acquisition date has been
recognised directly against equity in the group. The figure above shows proforma figures for 2010, i.e. the result as per Q1 2010 refers to Actor
g y g q y g p g p g , p Q
Fordringsforvaltning and Verdigjenvinning, including Conecto, in order to provide a more correct picture of operations in the company
**Pre-tax profit for SpareBank 1 Gruppen Finans Group also includes overheads and excess value amortisation
18

19. SpareBank 1 Gruppen Finans Group
SpareBank 1 Factoring consolidates its position as Norway's third
largest factoring company
SpareBank 1 Factoring:
Norway's third largest factoring company in Q1 2011 (%)
40.5 % 41.1 %
• SpareBank 1 Factoring had a total
39.5 %
37.7
37 7 % growth of 41 3 % from Q1 2010 to
41.3
Q1 2011
36.2 %
- The total market growth was 6.9
35.5 % 36.2 % 36.1 %
34.3 %
% in the same period
32.2 %
13.9 % 13.7 %
• Market share increased from 10.4 %
12.1 % 12.0 % 13.8 %
in Q1 2010 to 13.8 % in Q1 2011
13.0 % 12.6 %
11.0 % 11.5 %
10.4 %
Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011
DnB NOR Finans SG Finans Nordea Finans SB1 Factoring
19

20. Outlook
SPAREBANK 1 GRUPPEN
• The effects of the completed restructuring measures are expected to produce
an improved administration result in SpareBank 1 Livsforsikring. The company
is on the offensive within personal insurance
• Profitable portfolio growth in SpareBank 1 Skadeforsikring
• The unique and robust business model in the SpareBank 1-alliance gives a
strategic advantage
20

21. The nation s savings bank
nation's
21
21

22. Appendix
A di
22

23. SpareBank 1 Alliance
SpareBank 1 SpareBank 1 SpareBank 1 Sparebanken Samarbeidende
LO (Trade Union)
SR-Bank SMN Nord-Norge Hedmark Sparebanker
(10 %)
(19.5%) (19.5%) (19.5%) (12%) (19.5 %)
SpareBank 1 Gruppen AS
Argo SpareBank 1 ODIN
Securities Livsforsikring Forvaltning
(93.4%) (100%) (100%)
Alliance Cooperation
SpareBank 1 SpareBank 1 SpareBank 1
Medlemskort Gruppen Finans Skadeforsikring Broad cooperation
(100%) (100%) (100%)
- Technology
- Brand/communication
- Expertise
- Common processes and use of best practice
Unison Forsikring - Purchasing
Conecto
(100%)
(100%)
Regional competence centres
- Payment services: Trondheim
(Bank-owned companies) - Credit: Stavanger
-T i i
Training: T
Tromsø
SpareBank 1 Boligkreditt
EiendomsMegler 1
BNbank
SpareBank 1 Oslo og Akershus
23

24. SpareBank 1 Gruppen
Profit as of Q1 2011
Q1 Year
Figures in MNOK
g 2011 2010 2010
Part of result from subsidiaries before tax
- SpareBank 1 Livsforsikring 129.4 91.9 350.4
- SpareBank 1 Skadeforsikring Group 50.3 36.3 641.1
- ODIN Forvaltningg 11.9 14.4 64.6
- Argo Securities -3.4 -2.7 -57.6
- SpareBank 1 Medlemskort 3.1 3.4 11.1
- SpareBank 1 Gruppen Finans Group 6.8 -0.1 8.6
- Correction Group -0.9 15.1 17.6
Net result before tax from subsidiaries 197.1 158.2 1.036.0
Total operating costs (parent company) -27.7 -20.0 -7.6
Net investment charges (parent company) -7.1 -6.9 -43.2
Gains from sale of companies 0.0 0.0 0.0
Share of associated company 0.0 0.0 0.0
Pre
Pre- tax result 162.4 131.3 985.1
Taxes -10.5 -38.5 -153.6
Net result for the period 151.9 92.8 831.6
Majority interest 152.4 93.3 841.0
Minority interest -0.5
0.5 -0.5
0.5 -9.5
9.5
Q1 Year
Key figures 2011 2010 2010
Annualised return on equity 12.4 % 8.9 % 18.7 %
24

25. SpareBank 1 Gruppen
Quarterly results
Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1
Figures in MNOK 2011 2010 2010 2010 2010 2009 2009 2009 2009
Part of result from subsidiaries before tax
- SpareBank 1 Livsforsikring 129.4 72.5 85.8 100.3 91.9 81.0 81.2 205.6 24.4
- SpareBank 1 Skadeforsikring Group 50.3 307.5 253.9 43.4 36.3 115.3 272.8 184.9 48.1
- ODIN Forvaltning 11.9 16.5 17.0 16.7 14.4 24.0 16.0 9.6 -7.5
- Argo Securities -3.4 -24.0 -29.0 -1.9 -2.7 -9.5 -14.6 -11.9 -12.9
- SpareBank 1 Medlemskort 3.1 1.9 2.7 3.3 3.4 0.7 1.8 4.1 5.6
- SpareBank 1 Gruppen Finans Group 6.8 6.6 -4.9 7.0 -0.1 2.3 3.9 11.0 5.3
- Correction Group -0.9 -6.3 -7.4 16.3 15.1 -8.6 12.0 -6.0 7.4
Net result before tax from subsidiaries 197.1 374.6 318.1 185.1 158.2 205.2 373.1 355.4 112.3
Total operating costs (parent company) -27.7 -16.5 40.7 -11.9 -20.0 -15.5 -13.2 -12.1 -13.3
Net investment charges (parent company) -7.1 -15.6 -11.4 -9.3 -6.9 -9.8 -2.1 -7.0 -17.3
Gains from sale of companies 0.0 0.0 0.0 0.0 0.0 0.0 0.0 29.2 0.0
Share of associated company 0.0 0.0 0.0 0.0 0.0 -2.8 0.0 8.4 5.1
Pre-tax
Pre tax result 162.4
162 4 342.5
342 5 347.4
347 4 163.9
163 9 131.3
131 3 177.2
177 2 357.7
357 7 373.8
373 8 86.8
86 8
Taxes -10.5 -18.5 -88.4 -8.3 -38.5 -9.3 -27.3 -131.4 -92.5
Net result for the period 151.9 324.0 259.1 155.6 92.8 167.9 330.4 242.4 - 5.7
Majority interest 152.4 327.9 263.9 155.9 93.3 169.6 333.1 244.6 -3.4
Minority interest -0.5
0.5 -3.9
3.9 -4.8
4.8 -0.3
0.3 -0.5
0.5 -1.7
1.7 -2.6
2.6 -2.1
2.1 -2.3
2.3
25

26. SpareBank 1 Livsforsikring
Profit as of Q1 2011
Q1 Year
Figures in MNOK 2011 2010 2010
Insurance risk income 335.8 315.3 1.292.6
Insurance risk claims -255.5 -209.3 -939.0
Risk result 80.2 106.0 353.6
Tecnical allocations -10.8 -14.2 -28.2
Risk result after tecnical allocations 69.4 91.8 325.4
Fees 170.7 146.3 637.9
Expenses, exclusive comissions -129.7 -131.2 -589.2
Comissions
C i i -59.8
59 8 -55.9
55 9 -235.6
235 6
Administration result -18.7 -40.8 -186.9
Net investment income 319.1 176.3 764.3
Guaranteed interest to policyholders -113.3 -107.0 -447.0
Investment result 205.8 69.3 317.3
Reserves
R -33.0
33 0 -12.0
12 0 -45.3
45 3
Investment result after reserves 172.8 57.3 272.0
Compensation guaranteed interest 5.4 5.2 29.9
Result before additional provisions 228.8 113.6 440.4
Undistributed profits to customers -118.9 -42.2 -161.7
Return
Ret n on company's assets
compan 's 19.5
19 5 20.5
20 5 71.6
71 6
Net profit to owner before tax 129.4 91.9 350.4
Taxes 0.5 0.0 -60.2
Net profit/loss for the period 129.9 91.9 290.2
Key figures Q1 Year
2011 2010 2010
Capital adequacy ratio 19.2 % 18.4 % 19.3 %
Buffer capital in % of insurance provisions 14.8 % 13.0 % 14.6 %
The company's accounts did not show taxes in 2010 since the deferred tax assets were not included in accordance with the IAS 12 accounting standard.
26

27. SpareBank 1 Livsforsikring
Profit by portfolio as of Q1 2011
Previously
Group established Investment choice Company
Figures in MNOK portfolio individual products portfolio portfolio Total
Risk result 75.0 3.6 -9.2 0.0 69.4
Administration result 18.1 -10.4 -26.5 0.0 -18.8
Net investment result 137.9 63.5 3.7 0.7 205.8
Reserves - long life 0.0 -33.0 0.0 0.0 -33.0
Compensation interest guarantee 5.4 0.0 0.0 0.0 5.4
Transferred to policyholders -99.9 -18.9 -0.1 0.0 -118.9
Return on company's assets
company s 0.0
00 0.0
00 0.0
00 19.5
19 5 19.5
19 5
Sum 136.5 4.8 -32.1 20.2 129.4
27

28. SpareBank 1 Livsforsikring
Premium income trends as of Q1 2011
Q1 Year
Figures in MNOK 2011 2010 2010
Individual annuity and pension insurance 73.1 75.2 306.7
Individual endowment insurance 138.5 126.9 519.1
Group pension insurance 242.7 252.1 549.5
Individual life insurance 48.0 44.5 183.1
Group life insurance 217.5 209.8 587.7
Unit Linked - Annuity 10.7 13.7 46.6
Unit Linked - Endowment 51.6 59.0 237.0
Defined contribution pension 236.2 200.0 864.2
Total gross due premium income 1.018.2 981.3 3.293.8
Premium reserves transferred from other companies 142.0 80.8 352.5
Reinsurance ceded -40.2 -43.5 -152.0
Premium income for own account 1.120.0 1.018.6 3.494.2
28

29. SpareBank 1 Livsforsikring
Asset allocation by portfolio
As of 31 03 11 (31.12.10)
31.03.11 (31 12 10)
Group portfolio Company portfolio Investment choice portfolio
14.6 (14.8) % 0.1 (0.1) % 0.7 (-1.6) %
34.7 (34.8) % 40.2 (39.0) %
-0.4 (0.9) % 21.3 (21.0) %
28.9 (28.0) % 22.2 (21.5) %
49.5 (48.4)
49 5 (48 4) % 28.4 (28.8)
28 4 (28 8) % 59.8 (61.0)
59 8 (61 0) %
Stocks Other
0.0 (0.0) %
Stocks Other
Real estate Bonds - amortized cost
Real estate Bonds - amortized cost
Bonds - market value
Bonds - market value Stocks Other Bonds
NOK 15.6 (16.0) billion NOK 3.0 (2.8) billion NOK 6.8 (6.7) billion
29

30. SpareBank 1 Livsforsikring
Value adjusted return for customer portfolios with guarantee as of Q1
V l dj t d t f t tf li ith t f
(excluding property value change)
Q4 Q1 Q4 Q1 Q4 Q1 Q4 Q1
2010 2011 2010 2011 2010 2011 2010 2011
7.1
71
6.8
6.4
5.7
Percent
1.7
1.5
1.3
1.1
SpareBank 1 Storebrand Vital Nordea
30 Source: company presentations

31. SpareBank 1 Livsforsikring
Booked return on customer portfolios with guarantee
Q4 Q1 Q4 Q1 Q4 Q1 Q4 Q1
2010 2011 2010 2011 2010 2011 2010 2011
6.2
62
5.2
4.9 4.8
Percent
2.2
22
1.4 1.5 1.5
SpareBank 1 Storebrand Vital Nordea
31 Source: company presentations

32. SpareBank 1 Livsforsikring
Return on ordinary customer portfolio with guarantee as of
y p g
31.03.11
Percent
Norwegian shares 0.3
Foreign shares 2.1
Money market 0.6
Norwegian bonds 0.0
Foreign bonds 0.8
08
Held to maturity 1.3
Real estate 1.7
32

33. SpareBank 1 Livsforsikring
Balance sheet as of Q1 2011
Q
Q1 Year
Figures in MNOK 2011 2010 2010
Intangible assets 53 36 42
Investments 3.013 2.750 2.862
Reinsurance's part of insurance obligations 223 223 221
Accounts receivable 134 254 153
Other assets 215 189 335
Prepayed liabilities and accrued income 2 0 0
Investments group portfolio 15.786 15.775 16.169
Investments options portfolio 6.788
6 788 5.992
5 992 6.701
6 701
Total assets 26.215 25.218 26.483
Paid in capital 1.602 1.243 1.602
Other equity 516 489 386
Subordinated loan capital
p 400 525 400
Insurance obligations - contractual 15.776 15.813 16.127
Insurance obligations - investment options 6.895 6.082 6.805
Provisions for obligations 131 88 144
Premium deposits from reinsurance companies 135 130 134
Other
Othe obligations 659 771 764
Accrued liabilities, prepaied income 101 78 120
Total liabilities and equity 26.215 25.218 26.483
33

34. SpareBank 1 Skadeforsikring
Profit as of Q1 2011
Q1 Year
Figures in MNOK 2011 2010 2010
Gross written premium 1.553.3 1.325.2 4.731.8
Net earned premium 1.100.8 965.4 4.184.4
Net incurred claims -920.7 -852.5 -3.208.5
Net insurance operating costs -241.1 -195.1 -880.6
Other insurance income/costs 4.5 -0.4
0.4 132.0
Changes in other technical reserves 26.5 29.9 39.6
Operating result before finance -29.9 -52.8 266.9
Net financial income 95.1 97.6 432.7
Other costs 0.0 -1.0 -2.7
Result before changes in security reserve
R lt b f h i it 65.1
65 1 43.8
43 8 696.9
696 9
Changes in security reserve -14.8 -7.5 -55.8
Pre-tax profit 50.3 36.3 641.1
Taxes -10.5 5.4 -60.1
Net profit/loss for the period 39.8 41.7 581.1
Key figures Q1 Year
Figures in percentage 2011 2010 2010
Claims ratio net
ratio, 83.6
83 6 % 88.3
88 3 % 76.7
76 7 %
Cost ratio, net 21.9 % 20.2 % 21.0 %
Combined ratio, net 105.5 % 108.5 % 97.7 %
Capital adequacy ratio 30.3 % 32.6 % 32.5 %
34

35. SpareBank 1 Skadeforsikring
Allocation of financial assets
As per 31.03.11
(31.12.10)
66.3 (65.6) %
Bonds held as current assets
11.0 (11.1) %
Bonds held to maturity
Real state
Stocks
Hedgefond
13.7 (14.1) %
9.0 (9.1) %
0.1 (0.1) %
NOK 8.7 (8.5) billion
35

36. ODIN Forvaltning
Profit as of Q1 2011
Q1 Year
Figures in MNOK 2011 2010 2010
Management fees
g 86.8 78.3 317.9
Total operating income 86.8 78.3 317.9
Salaries 29.2 25.6 104.2
Depreciations 3.9 3.9 14.8
Other operating costs 42.5
42 5 34.6
34 6 137.8
137 8
Total operating costs 75.6 64.1 256.8
Operating profit 11.2 14.2 61.1
Net financial income 0.7 0.3 3.6
Pre-tax profit 11.9 14.4 64.6
Taxes 3.3 3.9 19.3
Net profit/loss for the period 8.6 10.5 45.3
36