- The pre-tax loss for SpareBank 1 Gruppen in 2008 was MNOK -724, down from a profit of MNOK 1,179.8 in 2007, largely due to losses at SpareBank 1 Livsforsikring from negative investment results and one-off write-downs.
- Bank 1 Oslo had an underlying profit but overall pre-tax profit of MNOK 4 due to write-downs of securities and increased loan losses.
- Capital adequacy and core ratios remain solid at 12.0% and 9.0% respectively.
Q4 2008 Financial results for SpareBank 1 Gruppen presented by acting CEO Kirsten Idebøen
1. Preliminary results 2008
Financial statements
SpareBank 1 Gruppen
Kirsten Idebøen, acting CEO
Brigitte Ninauve, financial director
12 February 2009
2. Highlights 4th quarter 2008
• The results have been strongly affected by the weak financial markets. SpareBank 1 Livsforsikring
has a shareholding of 12 % in the group portfolio as at 31 December 2008. The Group has a solid
capital base
• One-off factors for SpareBank 1 Gruppen in 2008 totalled MNOK -405
• In October SpareBank 1 Gruppen AS acquired a 75 % stake in a newly established brokerage house
that is jointly owned with former employees of Kaupthing’s Norwegian brokers. Argo Securities AS
was granted a license at the end of November
• In Q4 SpareBank 1 Gruppen AS reached agreement with SpareBank 1 Nord-Norge regarding the
acquisition of its factoring business for a purchase price of up to MNOK 40. The company will merge
into SpareBank 1 Factoring AS – formerly Glitnir Factoring
• SpareBank 1 Gruppen AS purchases the remaining 10 % of Actor Fordringsforvaltning for MNOK 16
from Sparebanken Sør with effect from 1 January 2009
• In Q4 SpareBank 1 Gruppen AS’ owners injected equity into the Group through an incremental
placement totalling MNOK 924
2
2
3. Weak result for year, but solid capital base
Pre-tax profit/loss group
• The pre-tax loss for 2008 was MNOK
-724, down MNOK 1,904 against the
previous year
1,500 1,180
• At the end of 2008, the assets under
1,001
1,000
management were NOK 56.5 billion, up
NOK 2.2 billion from 31 December 2007
375 240
500
• The return on equity after tax was -16.3
MNOK
% (26.2 %)
0
• Core and capital adequacy ratios were
Q4 Q4 Q4 2006 2007 2008
-500
9.0 % and 12.0 % for the year, against
2006 2007 2008
9.6 % and 13.1 % in 2007
-724
-1,000
• Additional provisions of MNOK 308 taken
-1,038
to income in the consolidated accounts
-1,500
were reversed in Q4. SpareBank 1
Livsforsikring has utilised MNOK 345 to
Pre-tax profit - Q4 Pre-tax profit
cover the negative investment result in
the annual report and accounts
3
3
4. Product companies strongly affected by the
financial crisis
Pre-tax profit subsidiaries
• The combined loss for the year for the
subsidiaries was MNOK -629 compared to 600
459
a profit of MNOK 1,258 last year 380
400 299
• The life insurance company was strongly 228
131
affected by the financial unrest and one-off 200 113
4
factors. The company is financially sound
0
• The excellent insurance result balances
ODIN
Skadefors.
Livsfors.*
Bank 1 Oslo
out the weak financial result in the P&C
MNOK
-200
konsern
SB1
SB1
insurance company
-400
• Reduced volumes under management in
ODIN Forvaltning -600
• Good underlying bank operation in Bank 1 -800
Oslo. The results so far this year are -991
marked by write-downs, losses on -1,000
securities and net losses on loans Pre-tax profit 2007
-1,200
Pre-tax profit 2008
4
4
5. One-off factors in 2008 of MNOK -405
MNOK
SpareBank 1 Livsforsikring
IT write-downs -417
Settlements/claims -52
Subtotal -469
ODIN Forvaltning group
Foreign exchange gain 15
Subtotal 15
SpareBank 1 Gruppen AS and SpareBank 1 Skadeforsikring AS
have sold their shares in Alka Forsikring 49
Subtotal 49
Total -405
5
5
6. SpareBank 1 Gruppen
Preliminary results 2008
Q4 Q3 Q2 Q1 Q4 Year
Figures in MNOK 2008 2008 2008 2008 2007 2008 2007
* *
Part of result from subsidiaries before tax
- SpareBank 1 Livsforsikring -647.7 -334.9 43.7 -51.8 46.6 -990.6 380.0
- Additional provisions recognised as
-307.7 286.8 -41.7 62.6 0.0 0.0 0.0
income in consolidated accounts
- SpareBank 1 Skadeforsikring -9.4 58.0 125.0 54.1 133.6 227.6 458.9
- Bank 1 Oslo group -56.3 -6.2 34.4 31.9 32.4 3.9 130.9
- ODIN Forvaltning 27.7 25.7 29.2 30.3 73.7 112.9 299.5
**
- Share of other companies 0.2 7.7 9.6 5.7 4.8 23.3 19.0
- Correction subsidiaries - pro forma IFRS -7.8 -3.3 7.0 -1.8 -41.0 -5.9 -30.5
Net result before tax from subsidiaries -1,000.9 33.8 207.2 131.0 250.1 -628.9 1,257.9
Total operating costs holding -16.3 -8.8 -11.9 -10.8 -17.7 -47.8 -60.9
Net investment charges holding -15.5 -15.9 -12.9 -23.6 -12.4 -67.9 -46.2
Gains from sale of companies holding -0.6 21.7 0.0 0.0 0.0 21.1 0.0
Share of associated company - First Securities -3.7 0.9 16.4 4.2 21.8 17.7 56.9
Net result before amortisation -1,036.9 31.6 198.8 100.8 241.7 -705.7 1,207.8
Amortisation -1.3 -14.2 -1.3 -1.3 -1.3 -18.2 -28.0
Pre-tax result -1,038.2 17.4 197.5 99.5 240.4 -724.0 1,179.8
Taxes 9.0 -7.0 -50.0 -35.9 88.4 -83.9 39.2
Net result for the period -1,029.3 10.4 147.4 63.7 328.7 -807.8 1,219.0
Majority interest -1,028.9 10.2 147.0 63.5 328.6 -808.2 1,218.4
Minority interest -0.4 0.3 0.4 0.1 0.2 0.38 0.6
* The figures have been restated in accordance with new annual accounts regulations for P&C and life insurance companies
** Other companies comprise SpareBank 1 Medlemskort AS, Actor Fordringsforvaltning AS and Argo Securities AS
6
6
8. Bank 1 Oslo (group)
Good underlying bank operation
• Pre-tax profit of MNOK 4 (131) for Pre-tax profit/loss per quarter
2008 70
• Q4 loss of MNOK -56 (profit of 32) 49
44
50
• Unrealised losses on securities 39
32 34
33 32
totalled MNOK 73 in 2008, of which 28 27
30
the bank’s shares in Nordito AS were 17
written-down by MNOK 23 and
goodwill in EiendomsMegler 1 was 10
MNOK
-6
written-down by MNOK 26 *
-10
• Loan losses MNOK 65 (-10) for the 2006 2007 2008
year. MNOK 50 (-3) in Q4
-30
• Gross non-performing and impaired
loans amount to 2.5 % (0.9 %) of
-50
gross loans as at 31 December 2008
• Bank 1 Oslo has no direct or indirect -56
-70
exposure to the sub-prime market in
the USA or to Icelandic banks. It is Pre-tax profit/loss - Q1 Pre-tax profit/loss - Q2
nevertheless affected by a general Pre-tax profit/loss - Q3 Pre-tax profit/loss - Q4
increase in the spread and unrest in
the interest market * Adjusted to take account of the gain of MNOK 100.4 on
the sale of the Hamar portfolio in Q3 2006
8
8
9. Bank 1 Oslo (parent bank)
Good underlying bank operation
MNOK 31.12.2008 31.12.2007 Change
Net interest income 387.8 347.1 11.7 %
Other operating income 186.4 166.7 11.8 %
Operating costs 388.6 369.2 5.3 %
Result underlying bank operation 185.5 144.5 28.3 %
Cost/income ratio underlying bank operation 67.7 % 71.9 % -4.2 %
Underlying bank operation is defined as operating result before losses excluding
exchange rate gains/losses, securities, derivatives, dividend, as well as extraordinary
items
9
9
10. Bank 1 Oslo
Competitive and consumer-friendly
• The bank was awarded a bronze
medal in the Norwegian Bank
Championships, in the category for
mortgages within 80 % of the value
of the home
• The medal is a reward for low prices
on mortgages throughout one year
• Recently SpareBank 1 Oslo &
Akershus was named as Norway’s
fifth best bank, up from 47th place
the previous year
10
10
11. Bank 1 Oslo (parent bank)
Higher interest income as a result of good growth
Net interest income per quarter
120.0 2.00 %
• Lending growth of 19.9 % during 105.3
97.0 96.7 95.9
the past 12 months. The retail 100.0 1.90 %
90.4 89.9
83.0
market increased by 23.5 % and 77.5
80.0 1.80 %
the corporate market by 12.0 %
MNOK
• Net interest income of MNOK 90 60.0 1.70 %
(97) in Q4. Net interest income for 40.0 1.60 %
2008 of MNOK 388 (347), up 11.7
% 20.0 1.50 %
• Accumulated net interest income 0.0 1.40 %
measured against average total Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
assets of 1.71 % (1.83 %) as at 31 2007 2007 2007 2007 2008 2008 2008 2008
December 2008 Net interest income Net interest income measured
against average total assets
11
11
12. Bank 1 Oslo (parent bank)
Margin and volume developments
22,000 1.80 %
1.60 %
20,000 1.64 %
1.42 %
1.49 %1.51 %1.27 % 1.40 %
1.50 %
1.25 %
18,000
1.37 %
1.15 %
1.33 % 1.20 %
MNOK
1.05 %
16,000 1.20 %
0.90 % 1.00 %
1.04 % 0.81 %
0.78 %
0.98 %
14,000
0.71 %0.72 %
0.91 % 0.69 % 0.80 %
0.62 % 0.83 %
0.82 %
12,000 0.60 %
10,000 0.40 %
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2006 2006 2006 2006 2007 2007 2007 2007 2008 2008 2008 2008
Lending Spread for ordinary Spread for deposits
lending to custom ers from custom ers
The reference interest rate used in the margin calculation is 3 months NIBOR + 0.10 bp (the bank’s intra-group interest rate)
12
12
13. Bank 1 Oslo (parent bank)
Increase in non-performing loans attributable to a few
corporate market commitments
%
MNOK Percent
3.0
600.0
1. kv 2008
2.5
500.0
2.0
400.0
1.5
300.0
517.1
1.0
200.0
246.1
234.5 240.9 203.6 220.0 214.0 0.5
100.0 165.8 162.7
113.1
-
0.0
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2006 2006 2007 2007 2007 2007 2008 2008 2008 2008
Total non-performing loans
as % of gross loans
Non-performing loans = Total of overdue claims over 90 days and impaired non-overdue claims over 90 days
13
13
14. Bank 1 Oslo (parent bank)
Change in losses in last year
MNOK
60.0
44.4
40.0
20.0 9.9
3.5
-11.8 -22.7
-52.3 -16.3 -65.1
0.0
Individual Collective Net write-offs Net loan
-20.0 write-downs impairment and incomings on losses
previous write-offs
-40.0
-60.0
2007 2008
-80.0
14
14
15. Bank 1 Oslo (group)
Growth in other income
Other income per quarter
• Increase in commission income in 100
2008 of 8 % to MNOK 80 (74)
80
• Income from financial investments
60
reduced owing to weak financial
MNOK
markets 40
• In 2008 the bank has written down 20
the shares in Nordito AS by MNOK 0
23 -20
• In 2008 the Bank group suffered a -40
write-down of goodwill in Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
EiendomsMegler 1 of MNOK 26 2007 2007 2007 2007 2008 2008 2008 2008
Guarantee commissions/others
Real estate agency commission
Revenue from financial investments
Payments system
Commission revenues from insurance and savings
15
15
16. Bank 1 Oslo (group)
Profit/loss for 2008
Q4 Q3 Q2 Q1 Q4 Year
Figures in MNOK 2008 2008 2008 2008 2007 2008 2007
Net interest income 91.6 106.7 96.5 96.9 97.5 391.7 348.3
Other operating income 43.4 32.3 72.8 40.0 68.7 188.4 217.1
Operating costs 141.1 113.1 148.2 108.8 136.6 511.1 444.4
Operating result before losses -6.1 25.9 21.0 28.1 29.6 68.9 121.0
Net loan loss provisions 50.2 31.9 -13.2 -3.8 -2.8 65.1 -9.9
Pre-tax operating profit -56.3 -6.0 34.3 31.9 32.4 3.9 130.9
Taxes -17.6 -1.5 9.4 8.9 11.5 -0.7 38.1
Net profit/loss for the period -38.7 -4.6 24.8 23.0 20.9 4.6 92.8
Nøkkeltall Q4 Q3 Q2 Q1 Q4 Year
2007
Tall i prosent 2008 2008 2008 2008 2007 2008
Net interest margin 1.48 % 1.85 % 1.75 % 1.86 % 1.87 % 1.73 % 1.84 %
Cost/income ratio
excl. equity investment portfolio (parent bank) 79.3 % 59.6 % 73.0 % 70.3 % 69.8 % 70.2 % 70.6 %
Cost/income ratio
incl. equity investment portfolio 104.5 % 81.4 % 87.5 % 79.5 % 82.4 % 88.1 % 78.6 %
Return on equity (parent bank) 1.7 % 9.3 %
Return on equity 0.6 % 8.1 %
Deposit coverage ratio 77.2 % 74.2 %
Capital adequacy ratio (parent bank) 8.1 % 9.8 %
16
16
17. SpareBank 1
Livsforsikring
Strongly affected by the financial crisis
and one-off events
17
17
18. SpareBank 1 Livsforsikring
Strongly affected by the financial crisis and one-
off events
Pre-tax profit/loss per quarter
• Pre-tax loss of MNOK -648 (47) in Q4 and loss
of MNOK -991 (380) for 2008 230
129
• Improvement in the risk result before technical 111
93
83
130
48 7336
allocations; of MNOK 264 (187) in 2008 47 44
• The investment result totals MNOK -903 (969) 30
and is strongly affected by the financial crisis
-70 2006 2007 -522008
• Assets under management as at 31 December
2008 were NOK 21.1 billion
MNOK
-170
– down by NOK 2.9 billion from 31 December
-270
2007
• No write-down of real estate in Q4 -335
-370
• CDO investments written-down by MNOK 138 *
-470
• Negotiated settlement in 2008 amounted to Pre-tax profit/loss - Q1
MNOK 52 Pre-tax profit/loss - Q2
-570
Pre-tax profit/loss - Q3
• A major IT project was written down by MNOK Pre-tax profit/loss - Q4
-670
417 -648
**
* Collateralized debt obligation
** MNOK 345 of the interest deficit was covered by
customers’ additional provisions in the annual report
and accounts
18
18
19. SpareBank 1 Livsforsikring
The life insurance company has a solid capital base
• In July, SpareBank 1 Livsforsikring received a group contribution of MNOK 216
from its owners, SpareBank 1 Gruppen AS
• In October, SpareBank 1 Gruppen AS decided to transfer an additional MNOK
219 to the company as a group contribution to be paid in April 2009
• In December 2008, the holding company carried out a share capital increase in
SpareBank 1 Livsforsikring of MNOK 300. The remaining guarantee totals MNOK
300
• Core capital and capital adequacy ratios of 11.2 % (9.6 %) and 14.3 % (12.5 %)
respectively for 2008
• The buffer capital with additional provisions within a one-year interest rate
guarantee equals 5.8 % (14.9 %) for the year
19
19
20. SpareBank 1 Livsforsikring
Continued high shareholding in the group portfolio
As at 31 December 2008
Company portfolio Investment choice portfolio
Group portfolio
7 %1 %
12 %3 % 27 % 29 %
32 %
32 %
23 % 54 %
33 % 17 %
30 %
Stocks Other
Stocks Other Stocks Other Bonds
Real estate Bonds held to maturity
Real estate Bonds held to maturity
Bonds
Bonds
NOK 14.7 billion NOK 1.3 billion NOK 4.0 billion
20
20
21. SpareBank 1 Livsforsikring
Return on ordinary customer portfolio with guarantee as at 31
December 2008
Percent
Norwegian shares -54
Foreign shares -42.4
Money market 5.2
Norwegian bonds 8.3
Foreign bonds 6.2
Hedge funds -31.2
Held to maturity 5.3
Real estate 6.7
-60 -50 -40 -30 -20 -10 0 10 20
21
21
22. SpareBank 1 Livsforsikring
Value adjusted return on customer portfolios with guarantee per
Q3 and Q4 2008 (excl. value change bonds held to maturity)
Q3 Q4 Q3 Q4 Q3 Q4 Q3 Q4
2008 2008 2008 2008 2008 2008 2008 2008
1
0.3
0
-0.2
-1
-2 -1.8
Percent
-1.8
-2.0
-2.0 -2.1
-3
-4
-5
-4.9
-6
SpareBank 1 Storebrand Vital Nordea
22
22 Source: company presentations
24. SpareBank 1 Livsforsikring carries out IT write-downs of
MNOK 417
• The life insurance company has pursued a programme for the broad
renewal of its system portfolio, including the core systems. The renewal
was to take place through agreed delivery from an external supplier
• Owing to defaulted delivery, the life insurance company experienced IT
write-downs of MNOK 417
• The life insurance company has cancelled the contract with the supplier
• The life insurance company is seeking restitution and compensation from
the supplier for a maximum amount of MNOK 130
• No implications for the capital adequacy
• The write-down does not impact on customers
24
24
25. SpareBank 1 Livsforsikring
Profit/loss for 2008
Q4 Q2 Q1 Q4 Year
Figures in MNOK 2008 2008 2008 2007 2008 2007
Insurance risk income 290.8 288.1 289.6 274.3 1,159.5 1,076.8
Insurance risk claims -207.5 -243.7 -207.2 -210.8 -895.7 -890.1
Risk result 83.3 44.4 82.4 63.5 263.9 186.7
Technical allocations -2.8 -15.3 -19.6 -318.8 -53.6 -338.4
Risk result after technical allocations 80.5 29.1 62.8 -255.3 210.2 -151.7
Fees 138.1 150.2 137.7 171.4 572.6 616.5
Expenses, exclusive comissions -113.6 -140.5 -123.7 -121.7 -511.8 -457.8
Comissions -93.8 -58.8 -48.0 -55.2 -255.3 -224.9
Administration result -69.3 -49.1 -34.0 -5.5 -194.5 -66.3
Net investment income -460.9 167.4 49.3 304.2 -466.4 1,387.3
Guaranteed interest to policyholders -109.8 -109.7 -107.9 -105.6 -436.9 -418.4
* Investment result -570.7 57.7 -58.6 198.6 -903.3 968.9
Result before allocations -559.5 37.7 -29.8 -62.2 -887.6 750.9
Allocation to additional provisions 345.1 0.0 0.0 -160.0 345.1 -160.0
Transferred to policyholders 7.3 -2.2 -5.8 268.7 5.4 -211.0
Return on company's assets -440.6 8.2 -16.2 0.0 -453.6 0.0
Net profit to owner before tax -647.7 43.7 -51.8 46.5 -990.6 380.0
Taxes -83.5 -11.6 5.7 124.7 0.0 236.7
** Net profit/loss for the period -731.2 32.1 -46.1 171.2 -990.6 616.6
Key figures Q4 Q2 Q1 Q4 Year
2008 2008 2008 2007 2008 2007
Capital adequacy ratio 14.3 % 12.5 %
Buffer capital in % of insurance provisions 5.8 % 14.9 %
Buffer capital in % of insurance provisions after allocation of profits 5.8 % 9.3 %
* The investment result in 2008 is not directly comparable with the investment result in 2007. Based on new regulations, the figures for 2008 have been split in investment result and
return on company’s assets.
** In 2008 the accounting regulation for life insurance was adapted to international accounting standards (IFRS). As a result of this the company’s deferred tax advantage is not shown in
the balance sheet, and consequently there is no tax cost in the company accounts. A tax cost of MNOK 16 is shown in the consolidated accounts of SpareBank 1 Gruppen in 2008
25
25
26. SpareBank 1
Skadeforsikring
The insurance business produced
excellent results
26
26
27. SpareBank 1 Skadeforsikring
The insurance business produced excellent results
Pre-tax profit per quarter
• The pre-tax loss for Q4 came to MNOK 160
-9 (134) and the profit for 2008 is 139
134
140
MNOK 228 (459) 125
121
• The insurance result for the year 120
totals MNOK 200 (83)
100
• Net claims ratio at year-end of 72.1 % 82 77
(73.9 %)
MNOK
80 66
58
• Net financial income for the year is 54
60 50
MNOK 54 (378) and includes a gain
from the sale of Alka Forsikring in Q3 40
18
• Combined ratio of 94.0 % (94.6 %) as 20
at 31 December 2008 -9
0
• Capital adequacy ratio of 25.8 %
(17.9 %) at the end of the year 2006 2007 2008
-20
Pre-tax profit/loss - Q1 Pre-tax profit/loss - Q2
Pre-tax profit/loss - Q3 Pre-tax profit/loss - Q4
27
27
28. SpareBank 1 Skadeforsikring
Total portfolio growth of 3.3 % in 2008 in a market
characterised by increased competition
Retail Market (RM) portfolio Corporate market (CM) portfolio
(excl. group home insurances)
2,720 640 11.6 634
15.6
630
2,691
-10.6
2,700 16.7
30.5
620
2,680
12.6
610
24.5
MNOK
MNOK
2,660
600 5.2
2,640 2,631 588
590
2,620 580
2,600 570
2,580 560
Change Change Change Change Change Change Change Change
2007 Q1 Q2 Q3 Q4 2008 2007 Q1 Q2 Q3 Q4 2008
2008 2008 2008 2008 2008 2008 2008 2008
Total RM portfolio Change in RM portfolio Total CM portfolio Change in CM portfolio
7.9 % growth in 2008
2.3 % growth in 2008
28
28
33. ODIN Forvaltning
Lower assets under management
Pre-tax profit per quarter
• Pre-tax profit of MNOK 28 (74) in Q4
90 85
and profit for 2008 of MNOK 113 (299)
76
80 74
• Net financial income of MNOK 18 (5) in 74
72
67
Q4, of which foreign currency gains 70
amounted to MNOK 15 60 52 50
• The drop in profits was mainly caused
MNOK
50
by a decrease in the assets under
40
management due to the financial crisis 30 29
26 28
and low new subscriptions 30
• The assets under management fell in 20
2008 NOK 18.6 billion, of which NOK 10
4.4 billion in Q4 to NOK 19.2 billion
0
• Market share equity funds was 13.8
2006 2007 2008
%, a reduction from 15.9 % at the
turn of the year Pre-tax profit/loss - Q1 Pre-tax profit/loss - Q2
Pre-tax profit/loss - Q3 Pre-tax profit/loss - Q4
33
33
34. Stable development in savings agreements the last year in
spite of the financial crisis
300 650
632 629
626
Number of agreements (1,000)
600 239.6
250 588 223.6 600
Average amount in NOK
579
198.7
200 549
550
150.6
508
150
497
107.3 500
88.2
84.3 84.1
100
65.9
450
50
0 400
2000 2001 2002 2003 2004 2005 2006 2007 2008
Number of savings agreements Average amount per agreement
34
34
37. New kick-off from Frisk Forsikring
• In Q1 2008, Frisk Forsikring was launched
as a new brand for a product group
• Used by SpareBank 1 Skadeforsikring and
SpareBank 1 Livsforsikring for sales in new
channels
• First agreement was signed with 15
organisations in Norway’s Confederation of
Sports with 230,000 members
• In Q1 2009 an agreement was signed with
the Norwegian Football Association with its
375,000 members
• This forms the basis for direct sales of
products to well over half a million sports
members – and their families and friends
37
37
40. SpareBank 1 Gruppen consolidated
Quarterly results
Q4 Q3 Q2 Q1 Q4 Q3
Figures in MNOK 2008 2008 2008 2008 2007 2007 *
*
Part of result from subsidiaries before tax
- SpareBank 1 Livsforsikring -647.7 -334.9 43.7 -51.8 46.6 111.2
- Additional provisions recognised as
income in consolidated accounts -307.7 286.8 -41.7 62.6 0.0 0.0
- SpareBank 1 Skadeforsikring -9.4 58.0 125.0 54.1 133.6 120.8
- Bank 1 Oslo group -56.3 -6.2 34.4 31.9 32.4 38.7
- ODIN Forvaltning 27.7 25.7 29.2 30.3 73.7 84.5
- Share of other companies ** 0.2 7.7 9.6 5.7 4.8 3.9
- Correction subsidiaries - pro forma IFRS -7.8 -3.3 7.0 -1.8 -41.0 20.8
Net result before tax from subsidiaries -1,000.9 33.8 207.2 131.0 250.1 379.9
Total operating costs holding -16.3 -8.8 -11.9 -10.8 -17.7 -10.2
Net investment charges holding -15.5 -15.9 -12.9 -23.6 -12.4 -11.9
Gains from sale of companies holding -0.6 21.7 0.0 0.0 0.0 0.0
Share of associated company - First Securities -3.7 0.9 16.4 4.2 21.8 2.4
Net result before amortisation -1,036.9 31.6 198.8 100.8 241.7 360.2
Amortisation -1.3 -14.2 -1.3 -1.3 -1.3 -7.0
Pre-tax result -1,038.2 17.4 197.5 99.5 240.4 353.3
Taxes 9.0 -7.0 -50.0 -35.9 88.4 -70.2
Net result for the period -1,029.3 10.4 147.4 63.7 328.7 283.1
Majority interest -1,028.9 10.2 147.0 63.5 328.6 282.9
Minority interest -0.4 0.3 0.4 0.1 0.2 0.2
* The figures have been restated in accordance with new annual accounts regulations for P&C and life insurance companies
** Other companies comprise SpareBank 1 Medlemskort AS, Actor Fordringsforvaltning AS and Argo Securities AS
40
40
41. SpareBank 1 Gruppen’s ownership structure
SpareBank 1 SpareBank 1 Sparebanken
SpareBank 1 Samarbeidende LO
SR-Bank SMN Hedmark
Nord-Norge (19.89%) Sparebanker (19.89%) (9.29%)
(19.89 %) (19.89 %) (11.14%)
SpareBank 1 Gruppen AS
SpareBank 1 SpareBank 1 ODIN
Oslo Skadeforsikring Forvaltning
The Alliance
(100%) (100%) (100%)
SpareBank 1 SpareBank 1
Argo
Boligkreditt Livsforsikring
Securities
(100%)
(75%)
- Broad alliance
EiendomsMegler 1
- Brands
BNbank
- Technology
*SpareBank 1 First
Gruppen Finans - Expertise
Securities
(Bank-owned
Holding AS
- Shared processes and utilisation of best practise
(24,5%)
operation)
(100%)
- Purchasing
- Regional centres of expertise
SpareBank 1 Actor Fordrings- SpareBank 1
- The Payments Sector: Trondheim
Factoring forvaltning LTO
- Credit: Stavanger
(100%) (100%) (100%)
- Teaching: Tromsø
Verdigjenvinning
(100%)
* SpareBank 1 Gruppen Finans Holding AS’ function is to coordinate the underlying
41
41 companies (Application for concession has been sent to The Financial Supervisory Authority of Norway)
42. Bank 1 Oslo (parent bank)
Development in non-performing loans at the end of 2008
600.0
500.0
117.5
400.0
MNOK
300.0
47.6 67.4 399.6
47.6
200.0 50.8 57.0
42.8
63.6 58.0
100.0 186.9 193.3 160.8 169.2 157.1 49.3 178.7
102.3 104.7
63.8
0.0
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2006 2006 2007 2007 2007 2007 2008 2008 2008 2008
Corporate market Retail market
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42
43. SpareBank 1 Livsforsikring
Balance sheet for 2008
*
Figures in MNOK 31.12.2008 30.09.2008
Intangible assets 78.3 454.0
Investments 1,359.1 1,750.4
Reinsurance's part of insurance obligations 211.2 172.6
Accounts receivable 394.3 236.8
Other assets 321.5 759.2
Prepayed liabilities and accrued income 3.4 3.3
Investments group portfolio 14,808.0 14,693.8
Investments options portfolio 4,041.0 4,216.6
Total assets 21,216.9 22,286.6
Paid in capital 1,203.7 685.1
Other equity -66.9 1,119.7
Subordinated loan capital 525.0 525.0
Insurance obligations - contractual 14,812.6 15,262.8
Insurance obligations - investment options 4,079.8 4,216.6
Provisions for obligations 98.4 72.1
Premium deposits from reinsurance companies 116.6 94.1
Other obligations 371.9 227.7
Accrued liabilities, prepaied income 75.9 83.5
Total liabilities and equity 21,216.9 22,286.6
* Based on new accounting regulations pursuant to a new act relating to insurance, life insurance companies are exempt
from preparing comparison figures for 2007
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43
44. SpareBank 1 Livsforsikring
Development in premium income
Q4 Q3 Q2 Q1 Q4 Year
Figures in MNOK 2008 2008 2008 2008 2007 2008 2007
Individual annuity and pension insurance 61.4 54.6 58.4 50.3 103.4 224.7 253.5
Individual endowment insurance 116.6 113.6 117.0 115.3 118.3 462.4 1,465.6
Group pension insurance 125.9 133.2 135.2 377.6 158.3 771.8 700.9
Individual life insurance 41.3 41.0 40.1 40.7 41.3 163.0 156.7
Group life insurance 122.1 127.4 128.3 194.6 116.0 572.4 546.1
Unit Linked - Annuity 19.3 9.2 9.2 10.0 21.7 47.7 64.5
Unit Linked - Endowment 47.0 49.1 58.5 71.1 128.2 225.7 672.7
Defined contribution pension 171.2 169.1 174.4 159.8 135.7 674.6 590.4
Total gross due premium income 704.7 697.2 721.0 1,019.4 822.9 3,142.3 4,450.5
Premium reserves transferred from other companies 77.7 77.7 85.9 228.5 116.6 469.9 447.9
Reinsurance ceded -39.8 -40.2 -132.2 -26.4 -18.0 -238.6 -71.4
Premium income for own account 742.6 734.7 674.7 1,221.5 921.5 3,373.6 4,827.0
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44
45. SpareBank 1 Livsforsikring
Results per portfolio
Previously
Group established Investment choice Company
portfolio individual products portfolio portfolio Total
Figures in MNOK
208.4 2.2 -0.3 0.0 210.2
Risk result
-24.3 -39.6 -130.5 0.0 -194.5
Administration result
-476.3 -427.0 0.0 0.0 -903.3
Net investment result
158.1 193.3 -0.9 0.0 350.5
Transferred to policyholders
0.0 0.0 0.0 * -453.6 -453.6
Return on company's assets
-134.1 -271.2 -131.7 -453.6 -990.6
Sum
* Incl. write-down of an IT project by MNOK 417
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46. Key figures
Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4
1) All figures are in MNOK,
Figures in MNOK 1) & 2) 2008 2008 2008 2008 2007 2007 2007 2007 2006
except for the number of
Group
Capital adequacy ratio acc. 12.0 % 12.0 % 13.0 % 12.6 % 13.1 % 11.3 % 11.6 % 12.5 % 12.9 %
savings agreements
Core capital adequacy ratio acc. 9.0 % 9.0 % 9.0 % 9.2 % 9.6 % 7.9 % 8.1 % 9.0 % 9.3 %
2) All figures are per quarter,
Net profit acc. -807.8 221.5 211.1 63.6 309.0 275.6 352.6 241.3 406.2
unless otherwise stated
Life insurance
3) Following the entry into
Gross due premium income 704.7 697.2 721.0 1,019.4 822.9 844.6 1,596.5 1,186.4 713.1
force of the new insurance
Retail 285.5 267.5 283.1 287.4 413.0 462.6 1,226.9 510.6 422.4
activities act on 1 January
Corporate 419.2 429.7 437.9 732.0 410.0 382.1 369.6 675.8 290.7
2008, these measurement
Investment result 3) - - - - 199.0 224.5 407.6 138.6 435.3
figures are not relevant
Value adjusted return on assets 3) - - - - 0.6 % 0.7 % 3.7 % 1.4 % 3.7 %
Total assets acc. 21,079 22,286 23,087 23,388 23,998 23,574 23,641 22,711 22,041
4) Assets under management
Capital adequacy ratio acc. 14.3 % 14.8 % 14.8 % 12.5 % 12.5 % 10.8 % 11.3 % 12.0 % 12.6 %
are total assets under
management excl.
P&C insurance
receivables and reinsurance
935.0 931.5 908.5 900.0 890.7 872.7 853.4 877.5
Net earned premium 902.6
shares of gross insurance
822.8 815.5 798.7 791.0 787.44 771.6 755.3 777.3
Retail 791.2
provisions
89.9 90.5 85 88.0 85.7 -1444.4 1,608.8 81.2
Corporate 87.6
22.3 25.5 24.7 23.8 20.0 17.6 1545.5 -1510.7 19
Reinsurance
Net financial income -60.4 10.6 93.5 10.7 102.0 85.2 119.8 70.7 73.4
Assets under management acc. 4) 7,408.3 7,312.1 7,214.9 7,422.0 7,222.0 6,981.4 6,689.3 6,493.2 6,052.9
Return on financial assets -0.81 % 0.14 % 1.30 % 0.14 % 1.41 % 1.22 % 1.79 % 1.09 % 1.21 %
Claims Ratio, net 69.7 % 74.1 % 70.3 % 74.2 % 74.0 % 72.4 % 74.6 % 76.7 % 69.3 %
Cost Ratio, net 23.3 % 20.9 % 23.5 % 19.7 % 21.8 % 19.5 % 20.7 % 21.2 % 20.6 %
Bank 1 Oslo
Net interest income 91.6 105.3 95.9 96.7 97 90.4 83.0 77.5 83.5
Net loan loss provisions 50.2 31.8 -13.2 -3.8 -3.0 -3 -2.6 -1.4 -2.1
Loans acc. 21,683 20,721 19,597 18,757 18,013 17,044 16,422 15,614 15,282
Retail 15,331 14,551 13,690 12,872 12,417 11,981 11,602 11,121 10,764
Corporate 6,352 6,170 5,907 5,885 5,596 5,063 4,820 4,493 4,518
Deposits acc. 15,925 14,122 14,681 13,578 13,378 13,550 13,325 13,055 11,617
Capital adequacy ratio acc. 8.1 % 8.6 % 8.8 % 10.4 % 9.8 % 9.8 % 9.8 % 10.6 % 11.0 %
Net interest income/average totalt assets 1.48 % 1.82 % 1.81 % 1.86 % 1.92 % 1.85 % 1.78 % 1.76 % 1.95 %
Return on equity acc. (parent bank) 1.7 % 6.7 % 10.1 % 9.5 % 9.3 % 10.2 % 9.5 % 8.0 % 16.3 %
Return on equity acc. (group) 0.6 % 5.5 % 9.0 % 8.3 % 8.1 %
ODIN
Assets under management acc. 19,163 23,581 30,508 31,400 37,800 45,600 51,100 46,900 43,600
Equity fund market share acc. 13.8 % 13.7 % 14.6 % 15.6 % 15.9 % 18.9 % 20.6 % 21.0 % 20.4 %
Savings agreements acc. 223,643 225,732 236,182 236,681 239,605 233,539 232,563 223,790 198,677
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47. Premises for calculating the pension liability
• SpareBank 1 Gruppen always 31.12.2008 31.12.2007 31.12.2006
shows the prevailing market
Discount rate 3.80 % 4.80 % 4.45 %
Basic amount adjustment/inflation 3.75 % 4.25 % 4.25 %
value of its pension liabilities in Wage adjustment 4.00 % 4.25 % 4.00 %
the balance sheet Expected return on pension funds 5.80 % 5.80 % 5.40 %
• Deviations from estimates are AFP early retirement plan 40 % 40 % 40 %
Pension adjustments 1.50 % 2.30 % 1.90 %
recognised directly in equity each
quarter. For 2008, MNOK 155 is Mortality K2005 K1963
K2005
recognized in equity Disability IR2003 IR2003
IR2003
• SpareBank 1 Gruppen uses a new 4 % below 50 4 % below 50 4 % below 50
scale of tariffs, K2005 years and 2 % years and 2 % years and 2 %
Cancellations
above 50 years above 50 years above 50 years
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