[PPT] - Quarterly presentation Q4 2015 4 th quarter report 2015 - Group PowerPoint Presentation

SLIDE 1

Quarterly presentation Q4 2015

SLIDE 2

4th quarter report 2015 - Group

Profits before tax: NOK 1 033 mill (1 345 mill)
ROE: 9.1 % (12,2 %)
Proposed cash dividend: NOK 2.00 kr (1.90)
Retained portion of Group result: 70.1 % (73.3 %)
Very good solidity. Satisfactory liquidity
Continued limited signs of weakness in the regional economy.

2

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3

Macro and Economic trends

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Everybody is familiar with the traditional image of Northern Norway...

4

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...but not everybody knows of its modern aspects

5

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Export growth 2015: Northern Norway 7%, Norway 1%...

6

Source: Economic barometer, autumn 2015 (Menon)

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…or as a well-known chief economist in the south puts it:

7

Message to Northern Norway: “If you don’t make it NOW...”

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Regional dependence on oil is low in the north...

8

Share of employment in oil-related business

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9

13% 3% 2% 1%

15%

0% 15% 30% 45% 60% 75% 90%

Registered unemployed,

Change: December 2014 - December 2015

Source: The Norwegian Labour and Welfare Administration - NAV

…and the unemployment rate is low and stable

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A broad, export-oriented business sector...

10

Seafood Power intensive industries Tourism Oil/gas/ minerals Arctic based knowledge industry

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...and substantial investment in infrastructure

11

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12

Source: Norwegian Association of Real Estate Agents, Finn.no and Eiendomsverdi

41.293 33.292 21.635 35.463 19.023 19.097 10.000 20.000 30.000 40.000 50.000

Tromsø Bodø Finnmark Norge Troms ex Tromsø Nordland ex Bodø

House prices, January 2016

Average price, NOK per m2, all units

Regional house prices lower than the Norwegian average…

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08.02.2016 13

4.9% 5.0% 3,2 % 5.2% 9.0% 5.3% 6.0 % 45 33 104 47 19 32 90

15 30 45 60 75 90 105

6%
4%
2%

0% 2% 4% 6% 8% 10%

Tromsø Bodø Nord-Norge ex Tromsø/Bodø NORGE Oslo Bergen Stavanger

Price growth and turnover

January 2016 Price growth y/y, all units Turnover (days)

Source: Norwegian Association of Real Estate Agents, Finn.no and Eiendomsverdi AS

...and slower price growth

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Strategy

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Digitalisation is resulting in unexpected competition

15

The world's largest taxi company does not own a single car The world's largest media company writes nothing itself The world largest arranger of overnight accommodation owns no rooms

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The competitive landscape has never been this fragmented…

16 Savings Lending Deposits Capital markets FX and “Remittance” Payments Value increasing services

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…”FinTech” is the new buzzword…

17

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…and many are subject to a different regulatory framework

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Adapting to a new competitive situation

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Customer experience

Technology Individuality Business model

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That is why we are investing heavily in new business concepts…

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…while streamlining our in-house processes…

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“Robbie the robot is doing the boring part of the work”

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…and adapting our organisation

22

150 50

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We are concentrating on our core activities

23

SNN Invest

SNN Markets SNN Forvaltning SpB 1 Markets

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Distribution is being concentrated on 16 financial centres…

24

Bank Estate agents Accounting firm Product specialists

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…and our digital sales knowledge and expertise are being strengthened

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In a digital world the banks looked alike in 2015…

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…and they will in 2016 as well

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Our uniqueness (DNA) is being turned into a competitive edge

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A leading player on the savings banks’ national team

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Financial figures

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Main financial targets

31

Profitability:

Banking operations at top international level: Minimum 12% ROE

Solidity:

Undisputable solid
Internal capital buffer of at least 0.5 percentage point above the statutory

minimum requirement.

Long term goal for Core Tier 1 level is currently 14.5 %. The intention is to

achieve the target of 14.5% in 2016.

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Capital adequacy ratio - Group

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Profit and loss account - Group

33

31.12.15
1 512
933

! ! " 249 # # Total net income 2 694 !! !! $ 1 461 % % Result before losses and writedowns 1 233

&&

200

Result before tax

1 033 ' ' $( 163

)

5 * * +, 7

Result for the period

872 #! #! )-, 9,1 % . .

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Quarterly summary – Profit and loss account figures

4Q15

/' /' /' /

390

%' % ! *% 222

!

! * " 46 % ! % ' $ 658 # *## *

$

451

%

' )0&& 207 *

%%
&&

92 #

Result before tax

115

%

' * )-, 5,2 % *%. . '. '. 12 68,5 % ''. %#. . '.

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Net interest income - Group

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Changes in net interest income last quarter

Measured against average funding cost

446 1 5 3 2 4 447

200 250 300 350 400 450

Net interest income 3Q15 Deposits margin corporate Deposits margin retail Lending margin corporate Lendring margin retail Volume Other Net interest income 4Q15

36

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Lending margin, Parent bank

The interest margin is defined as the difference between the customer lending interest rate and average 3 month NIBOR

37

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Customer deposits, Parent bank

The interest margin is defined as the difference between average 3 month NIBOR and the customer deposit interest rate

38

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Deposit volume – repricing potential

39

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Quarterly summary – Profit and loss account figures

4Q15

/' /' /' /

390

%' % ! *% 222

!

! * " 46 % ! % ' $ 658 # *## *

$

451

%

' )0&& 207 *

%%
&&

92 #

Result before tax

115

%

' * )-, 5,2 % *%. . '. '. 12 68,5 % ''. %#. . '.

40

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Total commission and other income

505 487 612 817 866 834 8 19 44 114 100 100

25,1 % 27,8 % 31,5 % 36,3 % 32,3 % 34,7 % 0% 5% 10% 15% 20% 25% 30% 35% 40% 200 400 600 800 1.000 1.200 2010 2011 2012 2013 2014 2015 Net commision income Total other operating income Net fee-, commission and other income as % of total net return 41

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Quarterly summary – Profit and loss account figures

4Q15

/' /' /' /

390

%' % ! *% 222

!

! * " 46 % ! % ' $ 658 # *## *

$

451

%

' )0&& 207 *

%%
&&

92 #

Result before tax

115

%

' * )-, 5,2 % *%. . '. '. 12 68,5 % ''. %#. . '.

42

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Income from financial investments

Group

4Q15

/' /' /' /

3"

*

#

45"

98 *'

'

62"

16

'

!%

" 0 ( ""

35 *!

**

62"

1

Income from financial investments

46 % ! % #

43

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Group operating costs

44

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Group operating costs

45

31.12.15

1 7

713 '%*

8

36

'

9

101 * '

$

850 *#

368

! !

$

1 218 #' '

3&&(

56 !*

30
157
$

243 *'

$

1 461 %

45

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Losses on loans and guarantees - customers

87 101 195 172 164 200 0,14 % 0,15 % 0,26 % 0,21 % 0,19 % 0,22 % 0,00 % 0,05 % 0,10 % 0,15 % 0,20 % 0,25 % 0,30 %

50 100 150 200 250

2011 2011 2012 2013 2014 2015

NOK mill

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

46

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

47

4Q15

/' /' /' /:

390

%' % ! *%

198

# ' #

24
!

' $( 346

%
Underlying banking operations

266 ! % %# * ) 105 # # # # && 92 40

Underlying banking operations after

losses 69

'

% '

:&2);<

#

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Group companies result before tax

48

###

31.12.15

9;<= 9

124 287 % 9;<) < 9 5 773 %! >+ 9 27 183 '#% 90 157 243 '%' 76 128 %' Total 81 115 157 300

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Profit allocation 2015

!

Cach dividend of NOK 2.00 will be distributed to certificate holders as of 16.03.16. Pay-out ratio of the Group's profit: 29.9 % EC holders: 48.7 % Community-owned capital: 13.1% The equity certificate holders proportion

f the equity (ownership fraction) as of

1 January 2016 is 46.36 % (47.33 %).

8;<?(

730,7 " ##% "- ' $>1 *. 345,9

##

&90<9 ## 9" ;<?= % $0<?,&

'.

384,8 Total allocated 730,7 @08;<? 64,3 % @06? 70,1 %

49

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Key figures balance sheet

31.12.15

1 1 .

$ 85 403 %%% ' *. 6 64 053 ! %# . A" 9;<; <B < 88 403 %!%#

#.

3 48 087 '*

'.

50

SLIDE 51

Lending volume

56 370 59 826 63 723

31.12.13 31.12.14 31.12.15 Retail incl. SpareBank 1 Boligkreditt 6,1 % 6,5 %

24 042 25 154 24 436

31.12.13 31.12.14 31.12.15 Corporate and public 4,6 %

2,9 %

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SLIDE 52

Deposit volume

24 748 27 007 28 686

31.12.13 31.12.14 31.12.15 Retail banking market

9,1 %

6,2 %

7 578 5 372 6 086

31.12.13 31.12.14 31.12.15 Public

29,1 %

13,3 %

Retail 59,7 % Public 12,7 % Corp 27,7 %

12 616 13 384 13 315 31.12.13 31.12.14 31.12.15

Corporate

6,1 %

0,5 %

52

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Credit area

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The Group's non-performing, impaired and

ther problem commitments

54

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Distribution on segments shows good diversification

Loan 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.

Property management 8% Wage-earners 45% SPB1 Boligkreditt 28% Construction building 2% Other service industry 2% Agriculture, fisheries, fish farming 4% Transport and wholsesale6% Maritime sector 0% Other 4% Annet 19%

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Portfolio – Commercial Real Estate

56

Good diversification in terms of property categories
About 50 % of portfolio is rental involving own operations
68.1 % of the portfolio are commitments smaller than 100 MNOK

Housing cooperatives; 5,7 % Residential Development / Investment; 11,0 % Shops / shopping centres; 19,6 % Hotels; 6,8 % Industry; 5,0 % Offices; 13,2 % Combination- buildings; 10,7 % Others (small commitments); 28,0 % 0 - 5 MNOK; 14,25% 5 - 30 MNOK; 30,64% 30 - 100 MNOK; 23,21% 100 - 250 MNOK; 26,39% Above 250 MNOK; 5,51%

SLIDE 57

Portfolio – oil related exposure 31.12.15

57

Oil related exposure amounts to MNOK 2,100,

representing 2.5 % of total lending

37 % of exposure are related to supply bases. These

have long term contracts with solid and strong contract partners

Supply;

‒ 62.1 %; contracts with maturity 1 year or longer ‒ 37.2 %; spot market ‒ Net 0.7 %; non-performing or other problem commitments after impairment ‒ 1 of total 10 vessels laid up

Supply base; 36,9 % Offshore supply; 44,9 % Industry; 8,5 % Other; 9,7 %

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58

Liquidity/funding

SLIDE 59

Funding instruments 31.12.15

59

EMTN, EUR 12 % Bonds, NOK 71 % Subordinated loan capital 4 % T1 HYBRID, NOK 2 % EMTN, SEK 6 % CHF BOND 5 %

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Maturity profile 31.12.15

Capital markets funding (excl. SPABOL)

60

Good diversification in terms
f maturities
NOK 22.045 mill in capital

market funding exclusive of SB1 Boligkreditt

SpareBank 1 Boligkreditt is an

important funding source. Mortgage loans of NOK 24.353 mill transferred as at 31.12.15

Amount of gross maturities of

capital market funding next 12 months is NOK 3.982 mill

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Summary

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4th quarter report 2015 - Group

Profits before tax: NOK 1 033 mill (1 345 mill)
ROE: 9,1 % (12,2 %)
Proposed cash dividend: NOK 2.00 kr (1.90)
Retained portion of Group result: 70.1 % (73.3 %)
Very good solidity. Satisfactory liquidity
Continued limited signs of weakness in the regional economy.

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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

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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

Contact information:

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Enclosures

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Head office: Tromsø Organisation: 5 regions Regional offices: Hammerfest Tromsø Harstad Bodø Mo i Rana

Vision: For Nord-Norge!

SpareBank 1 Nord-Norge

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SpareBank 1 Nord-Norge

Financial Services Group SpareBank 1 Nord-Norge Portefølje AS Equity stake 100%

EiendomsMegler 1 Nord-Norge AS

Equity stake 100% SpareBank 1 Mobilbetaling AS Equity stake 19,70% SpareBank 1 Gruppen AS Equity stake 19,5% SpareBank 1 Boligkreditt AS Equity stake 14,45% SpareBank 1 Regnskapshuset Nord-Norge AS Equity stake 100% SpareBank 1 Næringskreditt AS Equity stake 20,83%

BN Bank ASA

Equity stake 23,5% Alliansesamarbeidet SpareBank 1 DA Equity stake 17,74% SpareBank 1 Nord-Norge Forvaltning ASA Equity stake 100% SpareBank 1 Kredittkort AS Equity stake 17,8% SpareBank 1 Finans Nord-Norge AS Equity stake 100% Nord-Norge Eiendom IV AS

Equity stake 100%

Alsgården AS

Equity stake 100% Fredrik Langs gate 20 AS Equity stake 100%

Organisation of the financial services Group

67

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68

Macro and Economic trends

SLIDE 69

Considerable economic growth in Northern Norway

69

High export growth and considerable

investments in infrastructure

Strong housing markets and high level of

residential construction

Oil industry only 2% of the economy –

new fields will increase the share

Households’ economy is strong
Stable, low unemployment – 2,6% as at

December 2015

Slowdown in Norwegian economy may

have impact on northern Norway in 2016. Prospects for growth are moderate

SLIDE 70

Macroeconomic indicators Northern Norway

Source: Economic Outlook Northern Norway, November 2015

FORECASTS FOR NORWAY NORTHERN NORWAY ESTIMATE FORECASTS ESTIMATE FORECASTS 2015 2016 2017 2015 2016 2017 Private consumption 2,0 % 1,0 % 2,0 % 2 % 2 % 3 % Government consumption 2,5 % 3,5 % 3,5 % 3 % 3 % 3 % Fixed investments 0,5 % 0,0 % 3,3 % 1 % 2 % 4 % Exports 3,0 % 1,5 % 4,4% 6 % 5 % 4 % Imports 3,0 % 2,5 % 2,9 % 3 % 2,5 % 3,5 % Region’s exports (domestic) 1 % 1 % 2,5 % Region’s imports (domestic) 2,5 % 2,5 % 2,5 % GDP Mainland Norway 1,0 % 1,0 % 2,6 % 2 % 2 % 3,5 % Employment growth 0,0 % 0,0 % 1,0 %

0,5 %
0,5 %

0,5 % Unemployment (level) 3,4 % 4,0 % 3,5 % 2,6 % 3,0 % 2,8 %

70

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Seafood – high export growth

71

10 % growth in export value
2/3 exported to EU market
12 million meals – every day
Salmon price peaking at

yearend 2015

SLIDE 72

Tourism – the Arctic winter tempts

72

1 million foreign guest nights

during 2015

Every fourth guest visited

Northern Norway in the winter

UK the most important winter

market (16%)

10% 15% 20% 25% 30% 35% 250.000 500.000 750.000 1.000.000 1.250.000 2012 2013 2014 2015E

Guest nights, foreign

Foreign, total Foreign, winter Share winter

Source: Statistics Norway

SLIDE 73

Oil and gas – new fields enter into production

73

Figur: Indeks Nordland, Januar 2016

Three field in operation: Norne, Snøhvit and

Skarv

‒ 10 % of Norwegian gas production ‒ 7 % of Norwegian oil production

Goliat

‒ First oil field in the Barents Sea ‒ Production start-up first quarter 2016

Aasta Hansteen og Polarled

‒ Aasta Hansteen – several gas fields ‒ Polarled – pipeline completed in 2015 ‒ Production start-up in 2018

Johan Castberg

‒ Major oil field in the Barents Sea ‒ FPSO concept for field development ‒ Investment decision expected in 2017

SLIDE 74

Residential construction peaking

08.02.2016 74

Source: Statistics Norway

2.586 1.700 500 1.000 1.500 2.000 2.500 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Antall boligenheter

Igangsatte nye boliger

Nord-Norge Prognose behov Nordland Troms Finnmark

Housing starts

Forecast demand

Number of units

SLIDE 75

75

Main financial figures

SLIDE 76

Key figures

15,3 % 8,5 % 9,0 % 13,1 % 12,2 % 9,1 % ## # # # # #'

Return on equity Return on equity

46,8 % 57,0 % 53,8 % 47,2 % 44,4 % 54,2 % ## # # # # #'

Cost/income ratio

1,8 % 1,6 % 1,8 % 1,5 % 0,9 % 0,8 %

## # # # # #'

Loans in default and other problem loans s a percentage of total loans

76

9,9 % 10,6 % 10,3 % 12,3 % 12,5 % 13,7 %

## # # # # #'

Common Equity Tier I % incl share of result

SLIDE 77

Quarterly results – net interest income

4Q15

/' /' /' / 4

6
'
!

4

597 % # ' !*

40

41 % * ! !

4

644 * % *# *''

40

11 # ' %

4 0
119

! ! %# #

4

100 #' #*

40

15 ' '

%

8,$& ;<?6=

9 % % % !

$

254 %*

'

**

Net interest income

390 %' % ! *%

77

SLIDE 78

Total commission and other income

4Q15

/' /' /' /

6

5 ' ' % %

40<

4 '

'

1

3

9;<; <

57

*

%

9;<=

#
9

9 !

*

%

8,"

60 !

'

''

;<

27 !

*

'

4"

37

'

*

14

'

$

216 232 233 227 232 3 '

21

!

$

24 24 23 29 25

1(

18

%

* # 222 235 238 239 237

78

SLIDE 79

Operating expenses

4Q15

/' /' /' / 7 249 '% * '! ' 8 4

!
9

35

*

Total personnel costs 289 190 182 189 190 3" 34 % % ! % > 16

%

% ! +< 17

%

*

$"

11 ! * ! # 1 3

#

8 2

1,"

16 % ! *

1""

2

2
1

1

,

14

!

20 7 ! * *

37

!

%
Other costs

162 146 154 149 164 Total operating expenses 451 336 336 338 354

79

SLIDE 80

Credit growth corporates

08.02.2016 80

2,5

3,2

4
2

2 4 6 8 10 12 14 2012Q4 2013Q2 2013Q4 2014Q2 2014Q4 2015Q2 2015Q4

%

Credit growth corporates. 12 mth growth

SNN, Corporate clients Norway, Corporates

SLIDE 81

Credit growth households

08.02.2016 81 6,5 6,2 2 4 6 8 10 12 2012Q4 2013Q2 2013Q4 2014Q2 2014Q4 2015Q2 2015Q4

%

Credit growth households. 12 mth growth

SNN, Retail clients Norway, Households

SLIDE 82

Deposit growth corporates

08.02.2016 82

0,5

0,5

2

2 4 6 8 10 2012Q4 2013Q2 2013Q4 2014Q2 2014Q4 2015Q2 2015Q4

%

Deposit growth corporates. 12 mth. growth

SNN, Corporate clients Norway, Corporates

SLIDE 83

Deposit growth households

08.02.2016 83 6,2 5,1 2 4 6 8 10 2012Q4 2013Q2 2013Q4 2014Q2 2014Q4 2015Q2 2015Q4

%

Deposit growth households. 12 mth. growth

SNN, Retail clients Norway, Households

SLIDE 84

84

Credit area

SLIDE 85

Lending portfolio - comments

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

SpareBank 1 Boligkreditt (covered bond company)

Negative growth in corporate market lending last 12 months
The portfolio and new commitments in corporate sector lending is diversified
Continued decrease in non-performing/impaired commitments
Increased collective write-downs
Moderate individual losses in 2015

85

SLIDE 86

Losses on loans and guarantees - customers

87 101 195 172 164 200 0,14 % 0,15 % 0,26 % 0,21 % 0,19 % 0,22 % 0,00 % 0,05 % 0,10 % 0,15 % 0,20 % 0,25 % 0,30 %

50 100 150 200 250

2011 2011 2012 2013 2014 2015

NOK mill

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

86

SLIDE 87

Loan losses: The Group's write-downs as of Q4 2015

87

Writedowns 2015 2014 4th quarter 2015 (iso) 4th quarter 2014 (iso) 4"&&

$"&&
1"&&"
>
$&&

200 164 92 79

SLIDE 88

Portfolio - exposure as of 31.12.15, parent bank

88

5.000 10.000 15.000 20.000 25.000 30.000 35.000 40.000 Næringskreditt Boligkreditt Low risk Medium risk High risk Default/impaired NOK mill

Retail market Corporate market SB1 Boligkreditt SB1 Næringskreditt

SLIDE 89

Portfolio - exposure as of 31.12.15

89

Loans distributed by size of exposure and share of total exposure Numbers includes SB 1 Bolig- and Næringskreditt

78% 10% 7% 5% 74% 11% 9% 6% Below 10 mnok 10 - 100 mnok 100 - 250 mnok Above 250 mnok Share of loanexposure Dec 2015 Share of loanexposure Dec 2014

SLIDE 90

Portfolio – LTV mortgage loans as of 31.12.15

90

96,7 % of exposure is within

85 % of the collaterals market value

Exposure above 85 % is 3,2 %

The loan is distributed in the different intervals. The numbers include the Group's share of SB1 Boligkreditt-portfolio.

91,2 % 5,5 % 1,6 % 1,6 % 92,6 % 5,1 % 1,2 % 1,2 % 0,0 % 10,0 % 20,0 % 30,0 % 40,0 % 50,0 % 60,0 % 70,0 % 80,0 % 90,0 % 100,0 % Below 70 % 70 - 85% 85 - 100 % Above 100 % 31.12.2015 31.12.2014

SLIDE 91

91

Equity certificate holders

SLIDE 92

Equity Certificates (EC) - holder structure

92

SLIDE 93

The 20 largest EC holders

93

Number of Share of total

Equity Certificate holders

Equity Certificates capital

8)>$9C>)6> % *. D>)34884)=3>$3;)6>4D !%# . +88>9C8 *#'# *. =A898)41AA9>1 *## . $E>)$E>)$)@9$1 ! . 9$$>9$)>>$;3$)@9$ ##% !!. 74+E4D>9$9 *# . ;F+>AA '%' '. +>))4AAAF1E '%*!' '. =)9D)>$98>)9>AA9>)D41> !!!# !. 98)>;9$4=$>A9>98)>;)3)6> # . >4@$;F$$>12>484$A=)DA$469 #*! #. 9A+@4D>)9A=@398A1 #' #. 3;A4D9=)94)469 #%!%% #%. ;>)6>++@A>8>9C999> ###### ##. ;88)4;99>19>)D41>98)49 !#*! #!. A))>>4>3+9 **%'!# #*%. 8)>$9 **#'! #**. 9$$>9$)>>$;3$)@9$ **%*! #*. $E>;=>7F)+>AA *% #*. The 20 largest EC holders 32 420 226 32,29 %

93

SLIDE 94

The 20 largest EC holders residing in Northern Norway

94

Number of Share of total Equity Certificate holders Equity Certificates Equity Certificate capital 98)>;9$4=$>A9>98)>; 1.411.606 1,41 % )A34$A>=9> 547.543 0,55 % )6>9)G=49A6 437.490 0,44 % E9>3EA=49>)49 374.883 0,37 % 33>)4E9>4D>9$9 281.502 0,28 % A)97)4 229.305 0,23 % $)D>9> 206.556 0,21 % A>A=)>3)A=D>9> 205.554 0,20 % 633EA3469 175.339 0,17 % $)+9H9$H4+69429 170.000 0,17 % >$)>8)>H)1+84>$)39 169.596 0,17 % )46+$429 156.005 0,16 % 98)>;9$4=$>A9>E>A6>A3 154.491 0,15 % 6)EA3469 152.588 0,15 % $)+9$)F63 150.000 0,15 % ;)H3)>>)A9>EA3469 119.705 0,12 % E>++46A>E)$E3>)9> 115.000 0,11 % 6>4)3)>9$>4A3 106.500 0,11 % 6>=>4>3+9 100.000 0,10 % 18)3; 97.848 0,10 % The 20 largest EC holders residing in Northern Norway ¹) 5 361 511 5,34 % 94

SLIDE 95

95

SpareBank 1 Group and Alliance

SLIDE 96

SpareBank 1 Alliance

96

SNN

SMN

SpareBank 1 Hedmark

Founded 1996 with the goal of achieving

Economies of Scale

Key banks in the Alliance trace their history

back to the early 19th century

Operates exclusively in Norway with a large

local presence – Norway’s most extensive branch network with approx. 350 branches

Sr. Unsec. Ratings

Fitch Moody’s 9;<9+ 2= 28 9;<9) 2= 28 9;<9 2= 28 9;<E< 2 28

SLIDE 97

Joint product platforms Operational integration Central functions Property/Casualty Insurance Life Insurance Mutual Funds Cards and Payments Factoring and Collection Markets Unit Real Estate Brokerage

Risk Management Underwriting procedures (scorecards, models og limits and guidances) IT systems 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 Sparebanken Hedmark 11 smaller SpareBank 1 banks

The banks issue senior unsecured, subordinated and capital instruments individually

SpareBank 1 Alliance – Structure overview

97 All banking and Ancillary products customers Equity and debt investors Services, dividends,commissions, covered bond funding Mortgages, capital, commitments, services, human resources etc. Covered bond investors