Post on 18-Nov-2014
description
3rd quarter (Q3) 2009Presentation of results from SpareBank 1 Gruppen
Kirsten Idebøen, CEO
29 October 2009
Highlights
22
• Historically good pre-tax profit as at the 3rd quarter
• Bank 1 Oslo AS is leaving the group SpareBank 1 Gruppen AS and will be directly owned by the SpareBank 1 banks (90%) and the Norwegian Confederation of Trade Unions (LO) (10%) with effect from 1 January 2010
• SpareBank 1 Livsforsikring has entered into an agreement with Gabler Wassum concering the operation and administration of its portfolio of approx. NOK 4 billion in the area of group defined-benefit pensions– An agreement was also signed giving Gabler Wassum an option to purchase the
portfolio by the end of 2010
• The implementation of measures in the profitability project being carried out is progressing well– The project’s aim is to yield profitability improvements with a full-year effect of
MNOK 450 from 31 December 2010, and SpareBank 1 Gruppen is ahead of schedule with regard to realising both profitability effects and staffing reductions
Very strong quarterly results
• Pre-tax profit as at Q3 was MNOK 974 (314). Profit in Q3 of MNOK 432 (17)
• Profit after tax year-to-date was MNOK 697 (222)
• Return on equity year-to-date of 18.6% (5.8%) p.a.
• Total assets at the end of September were NOK 60.7 billion, up NOK 4.3 billion from 31 December 2008
• Core and capital adequacy ratio estimated at 9.3% and 13.9%, respectively, as at 30 September 2009, as opposed to 9.4% and 12.6 % at year-end
Pre-tax profit, Group, by quarter
100
350
197
441
17
432
100
236
353
050
100150200250300350400450500
2007 2008 2009
MN
OK
Pre-tax profit - Q1 Pre-tax profit - Q2 Pre-tax profit - Q3
33
Very good quarterly profit from the subsidiaries
Pre-tax profit in the subsidiaries
• Overall pre-tax profit for the subsidiaries as at Q3 was MNOK 996 (372). Profit in Q3 of MNOK 448 (34)
• Strong investment and risk result in the life insurance company. Substantially strengthened buffer capital
• Very good financial return and good results in the P&C insurance company
• Rising capital under management in ODIN Forvaltning
• Higher net interest income in Q3 and good financial income in Bank 1 Oslo
237
85
-343
60
311
155
18
506
-400
-300-200
-1000
100
200300
400500
600
Ban
k 1
Osl
o gr
oup
SB1
Skad
efor
s.
OD
IN
MN
OK
Pre-tax profit - YTD 2008Pre-tax profit - YTD 2009
-35*
SB1
Livs
fors
.
* In SpareBank 1 Gruppen’s consolidated accounts, NOK 307.7 million of the loss on interest in 2008 was covered by the customer’s additional provisions.
44
SpareBank 1 Gruppen group
Profit/loss as at Q3 2009Q3 Q2 Q1 Q3
Figures in MNOK 2009 2009 2009 2008 2009 2008
Part of result from subsidiaries before tax - SpareBank 1 Livsforsikring 81.2 205.6 24.4 -334.9 311.2 -342.9 - Additional provisions recognised as income in consolidated accounts 0.0 -42.0 42.0 286.8 0.0 307.7 - SpareBank 1 Skadeforsikring 272.8 184.9 48.1 58.0 505.8 237.0 - Bank 1 Oslo group 74.7 67.6 13.1 -6.2 155.4 60.2 - ODIN Forvaltning 16.0 9.6 -7.5 25.7 18.1 85.2 - Argo Securities -14.6 -11.9 -12.9 0.0 -39.4 0.0 - SpareBank 1 Medlemskort 1.8 4.1 5.6 4.2 11.4 12.4 - SpareBank 1 Gruppen Finans Holding 3.9 11.0 5.3 3.6 20.2 10.7 - Correction subsidiaries - pro forma IFRS 12.0 -6.0 7.4 -3.3 13.4 1.8Net result before tax from subsidiaries 447.8 423.0 125.4 33.8 996.1 372.0Total operating costs holding -13.2 -12.1 -13.3 -8.8 -38.6 -31.5Net investment charges holding -2.1 -7.0 -17.3 -15.9 -26.5 -52.4Gains from sale of companies 0.0 29.2 0.0 21.7 29.2 21.7Share of associated company - First Securities 0.0 8.4 5.1 0.9 13.5 21.4Net result before amortisation 432.4 441.4 99.9 31.6 973.7 331.2Amortisation 0.0 0.0 0.0 -14.2 0.0 -16.8Pre-tax result 432.4 441.4 99.9 17.4 973.7 314.4Taxes -30.9 -150.7 -94.8 -7.0 -276.4 -92.9Net result for the period 401.5 290.7 5.2 10.4 697.3 221.5
Majority interest 404.1 292.9 7.5 10.2 704.4 220.8Minority interest -2.6 -2.1 -2.3 0.3 -7.1 0.8
Year to date
55
Bank 1 Oslo to be demerged from SpareBank 1 Gruppen
66
• Bank 1 Oslo will be directly owned by the SpareBank 1 banks (90%) and LO (10%) with the same ownership stake as in SpareBank 1 Gruppen AS
• There is an effort to implement the change of ownership with effect from 1 January 2010. A licence has been granted
• Establishing a clearer division between production and distribution in SpareBank 1 Alliansen was an important consideration in the decision to change the ownership model for Bank 1 Oslo
• Bank 1 Oslo will continue to be a part of SpareBank 1 Alliansen, which will involve a stronger commitment to the market in Oslo and Akershus
• Estimated effects for SpareBank 1 Gruppen as at 30 September 2009– Core capital adequacy: +1.4 percentage
points– Capital adequacy: +2.2 percentage points– Total assets: NOK -25.7 billion.
SpareBank 1 banks LO
10%90%
SpareBank 1 Gruppen AS
Bank 1 Oslo AS
Products:- Life insurance- P&C insurance- Unit trusts- Securities trading- Receivables management- Factoring- Member cards- etc.
- Banking- Real estate agency- Distribution ofproducts
Bank 1 OsloHigher net interest income in 3rd quarterand good financial income
77
Bank 1 Oslo (group)Higher net interest income in Q3 and good financial income
Pre-tax profit by quarter• Pre-tax profit of MNOK 155 (60)
as at Q3. Profit in Q3 was MNOK 75 (-6)
• The earnings advance is chiefly due to higher revenue from financial investments
• Loan losses MNOK 91 (15) as at Q3, of which MNOK 31 (32) in Q3
• Gross non-performing and impaired loans amounted to 2.0% (1.2%) of gross loans as at 30 September 2009
• Positive pre-tax earnings from EiendomsMegler 1 Oslo & Akershus of MNOK 5 (-17)
2732
13
33 3439
7568
-6
-20-10
01020304050607080
2007 2008 2009
MN
OK
Pre-tax profit - Q1 Pre-tax profit - Q2 Pre-tax profit - Q3
88
Bank 1 Oslo (parent bank)
Higher net interest income in Q3
99
Net interest income
97.0 96.7 95.9105.3
89.9 88.8 89.9
110.6
0
20
40
60
80
100
120
Q42007
Q12008
Q22008
Q32008
Q42008
Q12009
Q22009
Q32009
MN
OK
1.0 %1.1 %1.2 %1.3 %1.4 %1.5 %1.6 %1.7 %1.8 %1.9 %2.0 %
Net interest income Net interest income measuredagainst average total assets
• Lending growth incl. Boligkreditt of 14.7% the past 12 months. Year-to-date growth was 10.2%, of which CM increased by 11.0% and CM by 8.2%
• Net interest income of MNOK 289 (298) as at Q3. In Q3 net interest income was MNOK 111 (105).
• Net interest income as at Q3 of 1.51% (1.81%).
2.32 %2.21 %2.31 %
-0.35 %-0.13 %
0.91 %0.88 %
0.86 %
1.05 %
0.77 %0.84 %
1.42 %1.15 %
0.87 %0.94 %
1.10 %1.23 %
1.35 %1.49 %
1.22 %1.34 %1.36 %
0.68 %
0.11 %
10,000
12,000
14,000
16,000
18,000
20,000
22,000
Q42006
Q12007
Q22007
Q32007
Q42007
Q12008
Q22008
Q32008
Q42008
Q12009
Q22009
Q32009
-0.50 %
0.00 %
0.50 %
1.00 %
1.50 %
2.00 %
2.50 %
Lending Spread for ordinarylending to customers
Spread for depositsfrom customers
Bank 1 Oslo (parent bank)
Margin and volume growth
The benchmark interest rate used in the margin calculation is the 3 month NIBOR
MN
OK
1010
Bank 1 Oslo (parent bank)
Changes in non-performing loans
Non-performing loans = Total of overdue claims over 90 days and impaired non-overdue claims over 90 days
214166 163
113
246
401459
358417
220
1. kv 2008 Percent
050
100150200250300350400450500
Q22007
Q32007
Q42007
Q12008
Q22008
Q32008
Q42008
Q12009
Q22009
Q32009
MNOK
-
0.5
1.0
1.5
2.0
2.5
Total non-performing loansas % of gross loans
1111
Bank 1 Oslo (parent bank)
Higher losses compared with last year – annualised loss in percent of gross loans is 0.57%
MNOK Individualwrite-downs
Collectiveimpairment
Net write-offsand incomings onprevious write-offs
TotalLoan losses
-23.6 -14.93.55.2 -90.9-30.8-37.8 -22.3
-100.0
-80.0
-60.0
-40.0
-20.0
0.0
20.0
Year to date 2008 Year to date 2009
1212
Bank 1 Oslo (group)
Higher commission and financial income
-40-20
02040
6080
100
120140
Q42007
Q12008
Q22008
Q32008
Q42008
Q12009
Q22009
Q32009
MN
OK
Guarantee commissions/othersReal estate agency commissionRevenue from financial investmentsPayments systemCommission revenues from insurance and savings
• Net interest commission income and other income of MNOK 215 (183) as at Q3– Commission income from real estate
agency was up 36.7% to MNOK 91 (66)
• Income from financial investments was MNOK 129 (-38) as at Q3– Bond portfolio: MNOK 46 (-23)– Shares and primary capital certificates:
MNOK 65 (-23)
Other income per quarter
1313
SpareBank 1 LivsforsikringStrong investment and risk result
1414
SpareBank 1 Livsforsikring
Strong investment and risk result
1515
Pre-tax profit by quarter
129
44
206
111
-335
8193
-52
24
-400
-300
-200
-100
0
100
200
300
2007 2008 2009MN
OK
Pre-tax profit/loss - Q1 Pre-tax profit/loss - Q2Pre-tax profit/loss - Q3
• Pre-tax profit was MNOK 311 (-343) as at Q3. Profit in Q3 was MNOK 81 (-335)
• Strong performance in net risk result: MNOK 277 (130) year-to-date
• Investment result was MNOK 432 (-333) as at Q3. In Q3 it was MNOK 132 (-332)
• Total assets as at 30 September 2009 were NOK 23.8 billion., up 12.1% from 31 December 2008
SpareBank 1 Livsforsikring
Stronger buffer capital in the life insurance company
Growth in buffer capital
1616
13.7 %
5.8 % 6.0 %5.8 %8.2 %
11.7 %
-4 %-2 %0 %2 %4 %6 %8 %
10 %12 %14 %16 %
Q22008
Q32008
Q42008
Q12009
Q22009
Q32009
Perc
ent
Securities adjustment reserveAdditional provisionsInterim profitCore capital in excess of minimum
• Core and capital adequacy ratio estimated at 15.3% and 18.3%, respectively, as at 30 September 2009, as opposed to 11.2% and 14.3 % at year-end
• Buffer capital with additional provisions within a one-year interest rate guarantee equals 13.7% (5.8%) at the end of September
• Estimated solvency at the end of Q3 was 242% (255%)
• The securities adjustment reserve was MNOK 238 as at 30 September 2009
SpareBank 1 Livsforsikring
Modest rise in equities in the group portfolio
As at 30 September 2009 *)
Investment choice portfolio
Stocks Other Bonds
Group portfolio
Stocks OtherReal estate Bonds held to maturityBonds
Company portfolio
Stocks OtherReal estate Bonds held to maturityBonds
35.8 (31.4)%
24.0 (30.3)%
13.8 (12.4)%
21.8 (22.9)%
4.6 (3.0)%
3.7 (1.0)%0.1 (7.3)%
58.3 (26.9)%17.0 (32.6)%
20.8 (32.2)%31.9 (28.9)% 59.7 (54.4)%
8.4 (16.7)%
NOK 15.3 (14.7) billion NOK 5.2 (4.0) billionNOK 2.0 (1.3) billion
* Figures in parentheses are as at 31 December 2008
1717
SpareBank 1 Livsforsikring
Value-adjusted return on customer portfolios with guarantee (excl.
change in value construction)
2.5
4.1
1.51.9
3.53.1
7.1
0
1
2
3
4
5
6
7
8
SpareBank 1 Storebrand Vital Nordea
Perc
ent
Q22009
Q32009
Q22009
Q32009
Q22009
Q32009
Q22009
Q32009
NA
1818 Source: company presentations
SpareBank 1 SkadeforsikringHigh financial income and goodinsurance result
1919
SpareBank 1 SkadeforsikringHigh financial income and good insurance result
Pre-tax profit by quarter• Pre-tax profit was MNOK 506
(237) as at Q3. Profit in Q3 was MNOK 273 (58)
• Net financial income as at Q3 was MNOK 406 (112). The financial return year-to-date equals 5.3% (1.6%)
• The insurance result as at Q3 was MNOK 117 (144). In Q3 this was MNOK 100 (56)
• The claims ratio for own account was 73.4% (72.9 %) and the combined ratio for own account 95.1% (94.3 %) as at 30 September 2009
• Positive portfolio growth in both CM and RM. Total portfolio increase of MNOK 196 (105), which amounted to 5.1% (2.9%)
139 125121
58
273
66 54 48
185
0
50
100
150
200
250
300
2007 2008 2009
MN
OK
Pre-tax profit - Q1 Pre-tax profit - Q2 Pre-tax profit - Q3
2020
SpareBank 1 SkadeforsikringTwo major claims in Q1 push up combined ratio for own account
Combined ratio for own account shown by quarter
Combined ratio for own account by year
87.2% 89.9%94.6% 95.1%94.0%
21.9 %
72.4 % 74.0 % 74.2 % 70.3 % 74.1 % 69.7 %79.5 % 73.5 %
67.5 %
19.7 % 23.5 %19.5 % 21.8 % 20.9 % 23.3 %21.1 %
22.1 %
89.3 %95.6 %
100.6 %93.1 %95.1 %93.8 %93.9 %95.9 %
91.9 %
0 %
20 %
40 %
60 %
80 %
100 %
Q32007
Q42007
Q12008
Q22008
Q32008
Q42008
Q12009
Q22009
Q32009
Claims ratio Cost ratio
66.7 % 73.4 %72.1 %73.9 %69.3 %
20.7 % 21.9 %20.5 % 20.6 %
21.7 %
0 %
20 %
40 %
60 %
80 %
100 %
2005 2006 2007 2008 YTD2009
Claims ratio Cost ratio
2121
ODIN ForvaltningRising assets under management
2222
ODIN Forvaltning
Rising assets under management
2323
Pre-tax profit by quarter
74
29
10
85
2616
-7
30
67
-20
0
20
40
60
80
100
2007 2008 2009
MN
OK
Pre-tax profit/loss - Q1 Pre-tax profit/loss - Q2Pre-tax profit/loss - Q3
• Pre-tax profit was MNOK 18 (85) as at Q3. Profit in Q3 was MNOK 16 (26)
• Assets under management grew by NOK 6.3 billion on the first three quarters of the year to NOK 25.4 billion
• The market share for equity funds was 12.4%, a decline from 13.8% at year-end
• 9 of 11 self-managed equity funds with better returns than reference index as at 30 September 2009
• All self-managed equity funds with better returns than reference index the past five years
Implementation of profitability project progressing well, and the Group is ahead of schedule with regard to realising profitability effects and reductions in staffing
REALISED EFFECTS AS AT 30 SEPTEMBER 2009
450
332
125
5429
87
35
H2 2010H1 2010H2 2009H1 2009 Q3 2009
Realised year-to date
Plan
Realisation of profitability effects over time
(MNOK, cumulative annual rate)177
135
82
3631
72
36
H2 2010H1 2010H2 2009H1 2009 Q3 2009
Realisation of staffing consequences over time (FTEs, cumulative)
Realised year-to-date
Plan
- An implemented measure qualifies for full-year effect. The method ensures a focus on implementation- Of the reduction in FTEs a large percentage comes from natural wastage and a reduction in the use of temps
2424
2525
Bank. Insurance. And you.
Appendix
2626
SpareBank 1 Gruppen’s company and ownership structureSpareBank 1
SR-Bank (19.5%)
SpareBank 1SMN
(19.5%)
SpareBank 1Nord-Norge (19.5%)
SparebankenHedmark
(12%)
SamarbeidendeSparebanker (19.5%)
Norwegian Confederation of Trade Unions (LO)
(10%)
SpareBank 1 Gruppen AS
SpareBank 1 Oslo
(100%)
SpareBank 1Skadeforsikring
(100%)
SpareBank 1Livsforsikring
(100%)
ODIN Forvaltning
(100%)
Actor Fordrings-forvaltning
(100%)
Argo Securities
(75%)
Actor Portefølje(100%)
SpareBank 1 Factoring(100%)
SpareBank 1 Boligkreditt
EiendomsMegler 1
BNbank
(Bank-owned operation)
SpareBank 1 Gruppen Finans
Holding AS(100%)
SpareBank 1Medlemskort
(100%)
Actor Verdigjenvinning
(100%)
Broad alliance- Brands- Technology- Expertise- Shared processes and utilisation of best practise- Purchasing
Regional centres of expertise- The Payments Sector: Trondheim- Credit: Stavanger- Teaching: Tromsø
The Alliance
2727
SpareBank 1 Gruppen group Quarterly results
Q3 Q2 Q1 Q4 Q3 Q2Figures in MNOK 2009 2009 2009 2008 2008 2008
Part of result from subsidiaries before tax - SpareBank 1 Livsforsikring 81.2 205.6 24.4 -647.6 -334.9 43.7 - Additional provisions recognised as income in consolidated accounts 0.0 -42.0 42.0 -307.7 286.8 -41.7 - SpareBank 1 Skadeforsikring 272.8 184.9 48.1 -19.3 58.0 125.0 - Bank 1 Oslo group 74.7 67.6 13.1 -57.1 -6.2 34.4 - ODIN Forvaltning 16.0 9.6 -7.5 30.0 25.7 29.2 - Argo Securities -14.6 -11.9 -12.9 -4.0 0.0 0.0 - SpareBank 1 Medlemskort 1.8 4.1 5.6 -0.3 4.2 4.2 - SpareBank 1 Gruppen Finans Holding 3.9 11.0 5.3 4.7 3.6 5.4 - Correction subsidiaries - pro forma IFRS 12.0 -6.0 7.4 -7.4 -3.3 7.0Net result before tax from subsidiaries 447.8 423.0 125.4 -1,008.6 33.8 207.2Total operating costs holding -13.2 -12.1 -13.2 -16.3 -8.8 -11.9Net investment charges holding -2.1 -7.0 -17.4 -15.4 -15.9 -12.9Gains from sale of companies 0.0 29.2 0.0 -0.6 21.7 0.0Share of associated company - First Securities 0.0 8.4 5.1 -3.7 0.9 16.4Net result before amortisation 432.4 441.4 99.9 -1,044.6 31.6 198.8Amortisation 0.0 0.0 0.0 -1.3 -14.2 -1.3Pre-tax result 432.4 441.4 99.9 -1,046.0 17.4 197.5Taxes -30.9 -150.7 -94.8 -33.3 -7.0 -50.0Net result for the period 401.5 290.7 5.2 -1,079.3 10.4 147.4
Majority interest 404.1 292.9 7.5 -1,078.9 10.2 147.0Minority interest -2.6 -2.1 -2.3 -0.4 0.3 0.4
2828
2
16
37
47
7984
7
Q4-10Q3-10Q2-10Q1-10Q4-09Q3-09Q2-09
4848
1510
41.50
9
0
Q4-10Q3-10Q2-10Q1-10Q4-09Q3-09Q2-09
Realiserte effekter per kvartal (MNOK)
Realiserte bemanningsreduksjoner per kvartal (Årsverk)
Prognose
Plan
Faktisk realisert
Prognose
Plan
Faktisk realisert
REALISED PROFITABILITY EFFECTS AND REDUCTIONS IN STAFFING
SUB PROJECT SpareBank 1 Skadeforsikring REPORT DATE 08.10.2009
Realised year-to date
Realisation of profitability effects over time
(MNOK, cumulative annual rate)Realisation of staffing consequences over time
(FTEs, cumulative)
Realised year-to-date
2929
191
162
150
119
43
1813
51
18
Q4-10Q3-10Q2-10Q1-10Q4-09Q3-09Q2-09
101
9494
79
68
2420
50
25
Q4-10Q3-10Q2-10Q1-10Q4-09Q3-09Q2-09
Prognose
Plan
Faktisk realisert
Prognose
Plan
Faktisk realisert
SUB PROJECT SpareBank 1 Livsforsikring REPORT DATE 08.10.2009
REALISED PROFITABILITY EFFECTS AND REDUCTIONS IN STAFFING
Realised year-to date
Realisation of profitability effects over time
(MNOK, cumulative annual rate)Realisation of staffing consequences over time
(FTEs, cumulative)
Realised year-to-date
3030
89
7171
59
46
29
14
46
25
14
Q1-10Q4-09Q3-09Q2-09 Q4-10Q3-10Q2-10
21
1919
10
777 7
9
7
Q2-09 Q4-10Q3-10Q2-10Q1-10Q4-09Q3-09
Realiserte effekter per kvartal (MNOK)
Realiserte bemanningsreduksjoner per kvartal (Årsverk)
Prognose
Plan
Faktisk realisert
Prognose
Plan
Faktisk realisert
SUB PROJECT Bank 1 Oslo REPORT DATE 09.10.2009
REALISED PROFITABILITY EFFECTS AND REDUCTIONS IN STAFFING
Realised year-to date
Realisation of profitability effects over time
(MNOK, cumulative annual rate)Realisation of staffing consequences over time
(FTEs, cumulative)
Realised year-to-date
3131
Bank 1 Oslo (group)Profit/loss as at Q3 2009
Q3 Q2 Q1 Q3Figures in MNOK 2009 2009 2009 2008 2009 2008
Net interest income 110.2 89.7 88.5 106.7 288.5 300.1Other operating income 130.7 125.8 87.0 32.0 343.5 145.0Operating costs 135.3 123.0 127.4 113.0 385.7 370.1Operating result before losses 105.6 92.6 48.0 25.7 246.2 75.0Net loan loss provisions 30.9 25.0 34.9 31.9 90.9 14.9Pre-tax operating profit 74.7 67.6 13.1 -6.2 155.4 60.2Taxes 14.1 8.9 2.2 -1.5 25.2 16.9Net profit/loss for the period 60.6 58.7 10.9 -4.7 130.2 43.2
Key figures Q3 Q2 Q1 Q3Figures in percentage 2009 2009 2009 2008 2009 2008Net interest margin 1.71 % 1.41 % 1.41 % 1.85 % 1.51 % 1.82 %Cost/income ratioexcl. equity investment portfolio (parent bank) 65.1 % 74.5 % 70.9 % 59.6 % 69.9 % 67.4 %Cost/income ratioincl. equity investment portfolio 56.2 % 57.0 % 72.6 % 81.4 % 61.0 % 83.1 %Return on equity (parent bank) 16.1 % 6.7 %Return on equity 17.0 % 5.2 %Deposit coverage ratio 72.9 % 71.6 %Capital adequacy ratio (parent bank) 11.0 % 9.3 %Core capital adequacy ratio (parent bank) 8.1 % 8.7 %
Year to date
Year to date
3232
Bank 1 Oslo (parent bank) Increasing non-performing loans in CM in Q3, reduced in RM
157102 105
64
179
283349
234309
57
49
67
117
110
124
108
16964 58
51
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
400.0
450.0
500.0
Q22007
Q32007
Q42007
Q12008
Q22008
Q32008
Q42008
Q12009
Q22009
Q32009
MN
OK
Corporate market Retail market
3333
SpareBank 1 Livsforsikring Profit/loss as at Q3 2009
*
Q3 Q2 Q1 Q3Figures in MNOK 2009 2009 2009 2008 2009 2008 Insurance risk income 303.9 304.7 310.4 291.0 919.0 868.8 Insurance risk claims -208.0 -190.7 -211.8 -237.3 -610.5 -688.2Risk result 95.9 114.0 98.6 53.7 308.5 180.5 Tecnical allocations -8.5 -10.9 -11.7 -15.9 -31.1 -50.8Risk result after tecnical allocations 87.4 103.2 86.9 37.8 277.4 129.8 Fees 151.9 132.5 149.6 146.6 434.0 434.5 Expenses, exclusive comissions -132.7 -132.2 -139.8 -134.0 -404.7 -398.2 Comissions -49.7 -47.6 -47.0 -54.7 -144.3 -161.5Administration result -30.5 -47.2 -37.3 -42.1 -115.0 -125.2 Net investment income 241.8 464.4 59.3 -222.2 765.5 -5.5 Guaranteed interest to policyholders -110.3 -112.9 -110.1 -109.5 -333.3 -327.1Investment result 131.5 351.5 -50.8 -331.7 432.2 -332.6Result before allocations 188.3 407.4 -1.1 -336.0 594.6 -328.0 Undistributed profits to customers -93.7 -213.5 -8.9 6.1 -316.1 -1.9 Return on company's assets -13.4 11.7 34.4 -5.0 32.7 -13.0Net profit to owner before tax 81.2 205.6 24.4 -334.9 311.2 -342.9 Taxes 0.0 0.0 0.0 0.0 0.0 0.0Net profit/loss for the period 81.2 205.6 24.4 -334.9 311.2 -342.9
Key figures Q3 Q2 Q1 Q3 Year to date2009 2009 2009 2008 2009 2008
Capital adequacy ratio 18.3 % 14.8 %Buffer capital in % of insurance provisions 13.7 % 5.8 %
Year to date
* The company’s accounts do not show the tax cost because deferred tax advantages are not recognised in accordance with accounting standard IAS 12. The company’s tax cost of MNOK 141 year-to-date is included in SpareBank 1 Gruppen’s consolidated tax
3434
SpareBank 1 Livsforsikring
Return ordinary customer portfolio with guarantee as at 30 September 2009
4.9
4.0
6.0
5.0
3.7
24.0
48.7
0 10 20 30 40 50 60
Real estate
Hold to maturity
Foreign bonds
Norwegian bonds
Money market
Foreign shares
Norwegian shares
Percent
3535
SpareBank 1 Livsforsikring
Booked return for customer portfolios with guarantee year-to-date
3636
2.5
3.8
1.51.9
3.23.1
5.4
0
1
2
3
4
5
6
SpareBank 1 Storebrand Vital Nordea
Perc
ent
NA
Q22009
Q32009
Q22009
Q32009
Q22009
Q32009
Q22009
Q32009
Source: company presentations
SpareBank 1 Livsforsikring Balance sheet as at Q3 2009
Figures in MNOK 2009 2008 Intangible assets 61 454 Investments 2,013 1,752 Reinsurance's part of insurance obligations 217 183 Accounts receivable 585 237 Other assets 300 265 Prepayed liabilities and accrued income 0 3 Investments group portfolio 15,386 14,735 Investments options portfolio 5,221 4,217Total assets 23,783 21,846 Paid in capital 1,243 685 Other equity 616 627 Subordinated loan capital 525 525 Insurance obligations - contractual 15,449 15,243 Insurance obligations - investment options 5,300 4,256 Provisions for obligations 100 72 Premium deposits from reinsurance companies 127 94 Other obligations 307 260 Accrued liabilities, prepaied income 118 83Total liabilities and equity 23,783 21,846
Year to date
3737
SpareBank 1 LivsforsikringGrowth in premium income
Q3 Q2 Q1 Q3 Year to dateFigures in MNOK 2009 2009 2009 2008 2009 2008 Individual annuity and pension insurance 64.1 65.3 62.8 54.6 192.2 163.3 Individual endowment insurance 121.7 120.3 119.2 113.6 361.2 345.8 Group pension insurance 109.4 94.1 273.4 133.2 476.9 646.0 Individual life insurance 43.1 42.3 41.7 41.0 127.1 121.8 Group life insurance 128.7 116.1 212.1 127.4 456.9 450.3 Unit Linked - Annuity 11.2 10.8 11.8 9.2 33.9 28.4 Unit Linked - Endowment 67.8 76.4 44.6 49.1 188.8 178.7 Defined contribution pension 185.2 193.0 190.9 169.1 569.0 503.3Total gross due premium income 731.1 718.3 956.5 697.2 2,405.9 2,437.6 Premium reserves transferred from other companies 90.9 83.8 65.7 77.7 240.4 392.2 Reinsurance ceded -39.0 -40.0 -39.7 -40.2 -118.7 -198.8Premium income for own account 783.0 762.1 982.4 734.7 2,527.5 2,631.0
3838
SpareBank 1 LivsforsikringProfit/loss per portfolio as at Q3 2009
Figures in MNOKGroup
portfolio
Previouslyestablished
individual productsInvestment choice
portfolioCompanyportfolio Total
Risk result 279.7 -2.8 0.6 1.3 278.7Administration result 25.6 -32.6 -108.0 0.0 -115.0Net investment result 253.0 177.9 0.0 0.0 430.9Transferred to policyholders -200.8 -114.2 -1.2 0.0 -316.1Return on company's assets 0.0 0.0 0.0 32.7 32.7Sum 357.5 28.3 -108.6 34.0 311.2
3939
SpareBank 1 SkadeforsikringProfit/loss as at Q3 2009
Q3 Q2 Q1 Q3Figures in MNOK 2009 2009 2009 2008 2009 2008Gross written premium 995.1 1,033.7 1,237.9 900.2 3,266.8 3,126.2Net earned premium 971.8 940.2 919.2 931.5 2,831.3 2,742.6Net incurred claims -655.6 -691.2 -730.5 -690.7 -2,077.3 -1,999.1Net insurance operating costs -212.5 -207.6 -194.2 -195.1 -614.2 -586.2Other insurance income/costs -4.2 5.7 -3.4 0.1 -1.9 3.1Changes in other technical reserves 0.1 -13.4 -7.9 10.3 -21.1 -16.1Operating result before finance 99.7 33.7 -16.7 56.2 116.7 144.2Net financial income 177.8 158.3 70.1 10.5 406.2 111.6Other costs -1.1 -2.3 -1.3 -2.5 -4.7 -5.4Result before changes in security reserve 276.4 189.6 52.2 64.2 518.2 250.5Changes in security reserve -3.6 -4.7 -4.1 -6.2 -12.4 -13.5Pre-tax profit 272.8 184.9 48.1 58.0 505.8 237.0Taxes -59.2 -51.8 -13.5 -16.2 -124.5 -66.4Net profit/loss for the period 213.5 133.2 34.6 41.7 381.3 170.6
Key figures Q3 Q2 Q1 Q3Figures in percentage 2009 2009 2009 2008 2009 2008Claims ratio, net 67.5 % 73.5 % 79.5 % 74.1 % 73.4 % 72.9 %Cost ratio, net 21.9 % 22.1 % 21.1 % 20.9 % 21.7 % 21.4 %Combined ratio, net 89.3 % 95.6 % 100.6 % 95.1 % 95.1 % 94.3 %Capital adequacy ratio 27.0 % 27.0 %
Year to date
Year to date
4040
ODIN ForvaltningProfit/loss as at Q3 2009
Q3 Q2 Q1 Q3Figures in MNOK 2009 2009 2009 2008 2009 2008Management fees 66.9 57.0 46.3 76.1 170.2 243.2Subscription and redemption fees 6.1 6.7 6.2 7.9 19.1 33.1Total operating income 73.0 63.8 52.5 84.1 189.3 276.3Salaries 23.4 18.5 19.2 25.3 61.1 78.6Depreciations 4.0 3.9 4.1 3.7 12.0 10.7Other operating costs 28.0 30.9 31.7 32.4 90.6 111.6Total operating costs 55.4 53.4 55.0 61.5 163.8 200.9Operating profit 17.6 10.4 -2.5 22.6 25.6 75.4Net financial income -1.7 -0.8 -5.0 3.1 -7.4 9.7Resultat før skatt 16.0 9.6 -7.5 25.7 18.1 85.2Skattekostnad 4.4 0.4 0.2 7.2 5.1 23.8Resultat 11.5 9.2 -7.7 18.5 13.1 61.3
Year to date
4141
Other companies
• The subgroup consists of factoring, debt collection and acquisition of non-performance portfolio
• Pre-tax profit as at Q3 of MNOK 20
SpareBank 1 Gruppen Finans Holding
SpareBank 1 Medlemskort
• The company was established in October 2008
• SpareBank 1 Gruppen AS owns 75% of Argo Securities AS
• Pre-tax profit as at Q3 of MNOK -39
• SpareBank 1 Medlemskort operates the LO unions' joint membership database for delivery of membership cards, collection of insurance premiums for group insurance, plus operation of LOfavør, a rewards programme
• Pre-tax profit as at Q3 of MNOK 11 (12)
Actor Fordrings-forvaltning
(100%)
Actor Fordrings-forvaltning
(100%)
Actor Portefølje(100%)
Actor Portefølje(100%)
SpareBank 1 Factoring(100%)
SpareBank 1 Factoring(100%)
ActorVerdigjenvinning
(100%)
ActorVerdigjenvinning
(100%)
SpareBank 1 Gruppen Finans
Holding AS(100%)
SpareBank 1 Gruppen Finans
Holding AS(100%)
4242
Assumptions for calculating the pension liability in SpareBank 1 Gruppen
4343
30.09.2009 30.09.2008 31.12.2008Discount rate 4.40 % 4.80 % 3.80 %Basic amount adjustment/inflation 4.00 % 4.25 % 3.75 %Wage adjustment 4.00 % 4.25 % 4.00 %Expected return on pension funds 5.80 % 5.80 % 5.80 %AFP early retirement plan 40 % 40 % 40 %Pension adjustments 2.50 % 2.30 % 1.50 %
Mortality K2005 K2005 K2005Disability IR2003 IR2003 IR2003
Cancellations4 % below 50
years and 2 %above 50 years
4 % below 50years and 2 %
above 50 years
4 % below 50years and 2 %
above 50 years
• SpareBank 1 Gruppen shows at all times the market value of the pension liability in the balance sheet
• SpareBank 1 Gruppen applies a new scale K2005
Key figures SpareBank 1 Gruppen with subsidiariesFigures in MNOK
Q32009
Q22009
Q12009
Q42008
Q32008
Q22008
Q12008
Q42007
Q32007
GroupCapital adequacy ratio 13.9 % 14.6 % 14.5 % 12.6 % 12.0 % 13.0 % 12.6 % 13.1 % 11.3 %Core capital adequacy ratio 9.3 % 9.9 % 9.8 % 9.4 % 9.0 % 9.0 % 9.2 % 9.6 % 7.9 %Net profit acc. 697.3 295.9 5.2 -857.7 221.5 211.1 63.7 309.0 275.6Return on equity p.a. 18.6 % 12.3 % 0.6 % -16.1 % 5.8 % 7.9 % 4.7 % 26.2 % 26.8 %
Life insuranceGross due premium income 731.1 718.3 956.5 704.7 697.2 721.0 1,019.4 822.9 844.6 Retail 307.9 315.2 280.1 285.5 267.5 283.1 287.4 413.0 462.6 Corporate 423.2 403.1 676.4 419.2 429.7 437.9 732.0 410.0 382.1Total assets 23,783 22,934 21,237 21,217 22,287 23,059 22,909 23,998 23,574Capital adequacy ratio 18.3 % 18.7 % 15.1 % 14.3 % 14.8 % 14.8 % 12.5 % 12.5 % 10.8 %
P&C insuranceNet earned premium 971.8 940.2 919.2 935.0 931.5 908.5 902.6 900.0 890.7 Retail 847.3 821.8 804.2 822.8 815.5 798.7 791.2 791.0 787.4 Corporate 99.3 93.7 91.0 89.9 90.5 85.0 87.6 88.0 85.7 Reinsurance 25.3 24.7 24.0 22.3 25.5 24.7 23.8 20.0 17.6Net financial income 177.8 158.3 70.1 -74.7 10.5 92.0 9.1 97.5 86.2Return on financial assets 5.26 % 3.07 % 0.70 % -0.97 % 0.12 % 1.27 % 0.11 % 1.41 % 1.22 %Claims Ratio, net 67.5 % 73.5 % 79.5 % 69.7 % 74.1 % 70.3 % 74.2 % 74.0 % 72.4 %Cost Ratio, net 21.9 % 22.1 % 21.1 % 23.3 % 20.9 % 23.5 % 19.7 % 21.8 % 19.5 %
Bank 1 OsloNet interest income 110.6 89.9 88.8 89.9 105.31 95.9 96.7 97.0 90.4Net loan loss provisions 30.9 25.0 34.9 50.2 31.8 -13.2 -3.8 -3.0 -3.0Loans 21,247 21,392 21,030 20,688 20,261 19,574 18,844 18,089 17,112 Retail 14,396 14,630 14,655 14,340 13,983 13,574 12,745 12,415 11,981 Corporate 6,851 6,762 6,376 6,348 6,279 6,000 6,098 5,674 5,131Deposits 15,490 15,786 15,914 15,925 14,122 14,681 13,578 13,378 13,550Capital adequacy ratio 11.0 % 11.7 % 11.6 % 8.0 % 9.3 % 9.9 % 11.4 % 10.0 % 9.8 %Net interest income/average totalt assets 1.71 % 1.40 % 1.41 % 1.48 % 1.82 % 1.81 % 1.86 % 1.92 % 1.85 %Return on equity acc. (parent bank) 16.0 % 13.2 % 4.7 % 1.7 % 6.7 % 10.1 % 9.5 % 9.3 % 10.2 %Return on equity acc. (group) 17.0 % 23.2 % 4.4 % -1.2 % 5.3 % 8.7 % 8.1 % 8.1 %
ODINAssets under management 25,388 22,347 17,431 19,163 23,581 30,508 31,400 37,800 45,600Equity fund market share 12.4 % 12.8 % 13.1 % 13.8 % 13.7 % 14.6 % 15.6 % 15.9 % 18.9 %
4444