Hovedfil engelsk Q4 2015 - sparebank1.no€¦ · Profit and loss account -Group 33 (Amounts in NOK million) 31.12.15 31.12.14 31.12.14 Net interest income 1 512 1 426 1 426 Net fee-,

Quarterly presentation Q4 2015

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

3

Macro and Economic trends

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

4

...but not everybody knows of its modern aspects

5

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

6

Source: Economic barometer, autumn 2015 (Menon)

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

7

Message to Northern Norway:

“If you don’t make it

NOW...”

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

8

Share of employment in oil-related business

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

A broad, export-oriented business sector...

10

Seafood Power intensive

industries

Tourism Oil/gas/

minerals

Arctic based

knowledge

industry

...and substantial investment in infrastructure

11

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

41.293

33.292

21.635

35.463

19.023 19.097

0

10.000

20.000

30.000

40.000

50.000

Tromsø Bodø Finnmark Norge Troms ex Tromsø Nordland ex Bodø

House prices, January 2016Average price, NOK per m2, all units

Regional house prices lower than the Norwegian average…

08.02.201613

4.9% 5.0%

3,2 %

5.2%

9.0%

5.3%

6.0 %

45

33

104

47

19

32

90

0

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 turnoverJanuary 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

14

Strategy

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

The competitive landscape has never been this fragmented…

16

Savings Lending

Deposits

Capital marketsFX and

“Remittance”

Payments

Value

increasing

services

…”FinTech” is the new buzzword…

17

…and many are subject to a different regulatory framework

18

Adapting to a new competitive situation

19

Customer

experience

Technology Individuality

Business model

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

20

…while streamlining our in-house processes…

21

“Robbie the robot is doing the

boring part of the work”

…and adapting our organisation

22

150

50

We are concentrating on our core activities

23

SNN Invest

SNN Markets

SNN Forvaltning

SpB 1 Markets

Distribution is being concentrated on 16 financial centres…

24

Bank

Estate agents

Accounting firm

Product specialists

…and our digital sales knowledge and expertise are being strengthened

25

In a digital world the banks looked alike in 2015…

26

…and they will in 2016 as well

27

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

28

A leading player on the savings banks’ national team

30

Financial figures

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.

Capital adequacy ratio - Group

32

Profit and loss account - Group

33

(Amounts in NOK million) 31.12.15 31.12.14 31.12.14

Net interest income 1 512 1 426 1 426Net fee-, commision and other operating income 933 966 966Net income from financial investments 249 602 602Total net income 2 694 2 994 2 994

Total costs 1 461 1 328 1 328Result before losses and write-downs 1 233 1 666 1 666

Net losses and write-downs 200 321 321

Result before tax 1 033 1 345 1 345

Tax 163 223 223Result non-current assets held for sale 5 27 27Minority interests - 7 - 1 - 1Result for the period 872 1 096 1 096

Return on equity capital 9,1 % 12,2 % 12,2 %33

Quarterly summary – Profit and loss account figures (Amounts in NOK million) 4Q15 3Q15 2Q15 1Q15 4Q14

Net interest income 390 385 368 369 378Net fee-, commision and other operating income 222 233 239 239 237Net income from financial investments 46 -8 93 118 51Total net income 658 610 700 726 666

Total costs 451 336 336 338 354Result before losses and write-downs 207 274 364 388 312

Net losses and write-downs 92 40 36 32 236Result before tax 115 234 328 356 76

Return on equity capital 5,2 % 7,8 % 11,1 % 12,5 % 1,5 %Cost/income 68,5 % 55,1 % 48,0 % 46,6 % 53,2 %

34

Net interest income - Group

35

Changes in net interest income last quarter

Measured against average funding cost

446

0 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

Lending margin, Parent bank

The interest margin is defined as the difference between the customer lending

interest rate and average 3 month NIBOR37

Customer deposits, Parent bank

The interest margin is defined as the difference between average 3 month

NIBOR and the customer deposit interest rate38

Deposit volume – repricing potential

39






40

Total commission and other income

505 487612

817 866 834

8 19

44

114100 100

25,1 %

27,8 %

31,5 %

36,3 %

32,3 %

34,7 %

0%

5%

10%

15%

20%

25%

30%

35%

40%

0

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






42

Income from financial investments

Group

(Amounts in NOK million) 4Q15 3Q15 2Q15 1Q15 4Q14

Dividends 0 1 7 0 16

Income from joint ventures 98 75 114 112 453

Gains/losses and net value changes on shares -16 -6 -33 5 98Net value changes on bonds, foreign exchange and fin.derivatives -35 -79 4 3 77Gains/losses and net value changes on loans -1 1 1 -2 -42

Income from financial investments46 -8 93 118 602

43

Group operating costs

44 44

Group operating costs

45

(Amounts in NOK million)

31.12.15 31.12.14 Change

Wages and salaries 713 587 126Pension costs 36 41 - 5Social costs 101 76 25Total personnel costs 850 704 146

Administration costs 368 349 19Total personnel- and general administration costs 1 218 1 053 165

Depreciation and write-downs of fixed assets 56 97 - 41Operating costs buildings 30 32 - 2Other operating costs 157 146 11Total operating costs 243 275 - 32Total costs 1 461 1 328 133

45

Losses on loans and guarantees - customers

87101

195172 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 %

0

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

Core banking operations-

(excl. income from financial investments)

47 47

(Amounts in NOK million) 4Q15 3Q15 2Q15 1Q15 4Q14*

Net interest income 390 385 368 369 378Net fee- and commission income 198 210 215 210 212Other operating income 24 23 24 29 25Total costs excl restructuring costs 346 326 326 328 344Underlying banking operations 266 292 281 280 271Restructuring costs 105 10 10 10 10Net losses and write-downs 92 40 36 32 236Underlying banking operations after

losses 69 242 235 238 25

*Of which cost/losses Russian Banks 206

Group companies result before tax

48

(Amounts in NOK 1000) 31.12.15 31.12.14

SpareBank 1 Finans Nord-Norge AS 124 287 116 438SpareBank 1 Regnskapshuset Nord-Norge AS 5 773 3 839EiendomsMegler 1 Nord-Norge AS 27 183 15 208Subsidiaries core operations 157 243 135 485

Other subsidaries -76 128 21 815

Total 81 115 157 300

48

Profit allocation 2015

49

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

of the equity (ownership fraction) as of

1 January 2016 is 46.36 % (47.33 %).

(Amounts in NOK million)

Parent Bank's profit after tax 730,7

Allocated to cash dividend 200,8Allocated to dividend equalisation fund 145,1Total to EC-holders 47,34 % 345,9

Allocated to donations 60,0 of which to donation to Sparebankstiftelsen SNN 0,0Allocated to the Savings Bank's Fund 324,8

Total to the bank's community owned capital 52,66 % 384,8

Total allocated 730,7

Undistributed profit of Parent Bank's profit 64,3 %

Undistributed profit of Group's profit 70,1 %

49

Key figures balance sheet

31.12.15 31.12.14 Change Change %

Total assets 85 403 83 188 2 215 2,7%

Gross lending 64 053 61 249 2 804 4,6%

Loans and advances to customers incl SpareBank 1 Boligkreditt and Næringskreditt

88 403 84 980 3 423 4,0%

Deposits from customers 48 087 45 761 2 326 5,1%

50

Lending volume

56 37059 826

63 723

31.12.13 31.12.14 31.12.15

Retail incl. SpareBank 1 Boligkreditt

6,1 %

6,5 %

24 04225 154 24 436

31.12.13 31.12.14 31.12.15

Corporate and public

4,6 % -2,9 %

51

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

53

Credit area

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

54

Distribution on segments shows good diversificationLoan portfolio including Boligkreditt

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

The Group has a well diversified corporate market lending portofolio.

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

interest rates and good occupancy rates in the bank's market area.

Property

management

8%

Wage-earners 45%

SPB1 Boligkreditt 28%Construction building 2%

Other service industry 2%

Agriculture, fisheries, fish

farming 4%

Transport and wholsesale 6%

Maritime sector 0%

Other 4%

Annet 19%

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%

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 %

58

Liquidity/funding

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 %

Maturity profile 31.12.15Capital markets funding (excl. SPABOL)

60

• Good diversification in terms

of 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

61

Summary

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.

62

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

63

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:

65

Enclosures

Head office: Tromsø

Organisation: 5 regions

Regional offices: Hammerfest

Tromsø

Harstad

Bodø

Mo i Rana

Vision: For Nord-Norge!

SpareBank 1 Nord-Norge

66

SpareBank 1 Nord-NorgeFinancial 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 ASAEquity 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 ASEquity stake 100%

Alsgården ASEquity stake 100%

Fredrik Langs gate 20 AS

Equity stake 100%

Organisation of the financial services Group

67

68

Macro and Economic trends

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

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

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

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%

0

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

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

Residential construction peaking

08.02.201674 Source: Statistics Norway

2.586

1.700

0

500

1.000

1.500

2.000

2.500

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

An

tall

bo

lig

en

he

ter

Igangsatte nye boliger

Nord-Norge Prognose behov Nordland Troms Finnmark

Housing starts

Forecast demand

Nu

mb

er

of

un

its

75

Main financial figures

Key figures

15,3 %

8,5 % 9,0 %

13,1 %12,2 %

9,1 %

2010 2011 2012 2013 2014 2015

Return on equityReturn on equity

46,8 %

57,0 %53,8 %

47,2 %44,4 %

54,2 %

2010 2011 2012 2013 2014 2015

Cost/income ratio (Group)Cost/income ratio

1,8 %

1,6 %

1,8 %

1,5 %

0,9 % 0,8 %

2010 2011 2012 2013 2014 2015

Net non-performing and impaired commitments (Group)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 %

2010 2011 2012 2013 2014 2015

Net non-performing and impaired commitments (Group)Common Equity Tier I % incl share of result

Quarterly results – net interest income

(Amounts in NOK million) 4Q15 3Q15 2Q15 1Q15 4Q14

Interest and similar income from loans to and claims on credit institutions 6 6 5 3 9Interest and similar income from loans to and claims on customers 597 618 630 652 697Interest and similar income from certificates, bonds and other interest-bearing securities 41 48 47 49 49Interest and similiar income 644 672 682 704 755

Interest and similar costs on liabilities to credit institutions 11 10 15 18 16Interest and similar costs relating to deposits from and liabilities to customers 119 149 169 180 210Interest and similar costs related to the issuance of securities 100 105 107 113 124Interest and similar costs on subordinated loan capital 15 15 15 16 18Payments made to The Norwegian Banks' Guarantee Fund 9 8 8 8 9Total interest costs 254 287 314 335 377

Net interest income 390 385 368 369 378

77

Total commission and other income(Amounts in NOK million) 4Q15 3Q15 2Q15 1Q15 4Q14

Guarantee commissions 5 5 5 8 8Interbank commissions 4 5 4 4 5Credit arrangement fee 3 2 3 2 2Arrangement fee from SpareBank 1 Boligkreditt 57 61 66 76 81Arrangement fee from SpareBank 1 NN Finans 0 1 0 1 1Securities trading, administration and trust department services9 9 11 7 8Payment transmission services 60 69 62 54 55Brokerage commission 27 29 36 27 25Insurance services 37 36 35 37 33Other commission income 14 15 11 11 14Total commissions income 216 232 233 227 232

Operating- and sales income real estate 3 5 2 3 3Other operating income 21 19 21 26 22Total other operating income 24 24 23 29 25

Commission expenses 18 21 18 17 20

Net fee-, commision and other operating income 222 235 238 239 237

78

Operating expenses(in NOK million) 4Q15 3Q15 2Q15 1Q15 4Q14

Wages and salaries 249 158 147 159 152Pension costs 4 11 12 9 11Social costs 35 22 23 21 27Total personnel costs 289 190 182 189 190

Development costs 34 28 28 29 28Electronic data processing costs 16 14 18 18 19Marketing costs 17 16 18 17 16Travel - and training costs 11 9 7 9 10Communications 3 1 3 2 0Postage 2 3 3 3 3Consultancy services 16 8 9 7 6Cost involving the handling of cash 2 1 2 2 3Office-related costs 2 3 1 2 2Collection costs 1 1 1 1 1Ordinary depreciation 14 14 14 14 29Operating costs - premises/buildings 7 9 7 7 11Other operating costs incl rent 37 39 43 38 36Other costs 162 146 154 149 164

Total operating expenses 451 336 336 338 354

79

Credit growth corporates

08.02.201680

-2,5

3,2

-4

-2

0

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

Credit growth households

08.02.201681

6,5

6,2

0

2

4

6

8

10

12

2012Q4 2013Q2 2013Q4 2014Q2 2014Q4 2015Q2 2015Q4

%

Credit growth households. 12 mth growth

SNN, Retail clients Norway, Households

Deposit growth corporates

08.02.201682

-0,5

0,5

-2

0

2

4

6

8

10

2012Q4 2013Q2 2013Q4 2014Q2 2014Q4 2015Q2 2015Q4

%

Deposit growth corporates. 12 mth. growth

SNN, Corporate clients Norway, Corporates

Deposit growth households

08.02.201683

6,2

5,1

0

2

4

6

8

10

2012Q4 2013Q2 2013Q4 2014Q2 2014Q4 2015Q2 2015Q4

%

Deposit growth households. 12 mth. growth

SNN, Retail clients Norway, Households

84

Credit area

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

Losses on loans and guarantees - customers

87101

195172 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 %

0

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

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

87

Write-downs

2015 20144th quarter

2015 (iso)

4th quarter

2014 (iso)

Individual write-downs Retail market 0 25 0 17

Corporate market 165 148 67 81

SpareBank 1 Finans Nord-Norge 8 5 2 2

Other group units -19 16 -42 7

Total individual write-downs 154 193 27 107

Collective write downs and other value change items 54 34 49 10

Effects from consolidations -8 -63 15 -38

Total write-down on loans and guarantees 200 164 92 79

Portfolio - exposure as of 31.12.15, parent bank

88

0

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

NO

K m

ill

Retail market Corporate market SB1 Boligkreditt SB1 Næringskreditt

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

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

91

Equity certificate holders

Equity Certificates (EC) - holder structure

9292

The 20 largest EC holders

93

Number of Share of total

Equity Certificate holders Equity Certificates capital

PARETO AKSJE NORGE 4.284.142 4,27 %VERDIPAPIRFONDET DNB NORGE (IV) 3.323.980 3,31 %MP PENSJON PK 2.720.503 2,71 %FLPS - PRINC ALL SEC 2.132.700 2,12 %THE NORTHERN TRUST CO 2.123.219 2,11 %STATE STREET BANK AND TRUST 2.001.832 1,99 %WIMOH INVEST AS 1.614.670 1,61 %BNY MELLON 1.524.854 1,52 %MERRILL LYNCH 1.518.795 1,51 %FORSVARETS PERSONELLSERVICE 1.499.930 1,49 %SPAREBANKSTIFTELSEN SPAREBANK 1 NORD-NORGE 1.411.606 1,41 %EIKA UTBYTTE C/O EIKA KAPITALFORVALTNING AS 1.104.791 1,10 %SANLAM UNIVERSAL FUNDS PLC 1.101.225 1,10 %DNB LIVSFORSIKRING ASA 1.086.988 1,08 %BERGEN KOMMUNALE PENSJONSKASSE 1.000.000 1,00 %BNP PARIBAS SEC SERVICES PARIS 910.379 0,91 %LARRE EIENDOM 2 AS 778.590 0,78 %PARETO AS 770.659 0,77 %STATE STREET BANK AND TRUST 767.879 0,76 %THE BANK OF NEW YORK MELLON 743.484 0,74 %The 20 largest EC holders 32 420 226 32,29 %

93

The 20 largest EC holders residing in Northern Norway

94

Number of Share of total

Equity Certificate holders Equity Certificates Equity Certificate capital

SPAREBANKSTIFTELSEN SPAREBANK 1 NO 1.411.606 1,41 %

KARL DITLEFSEN 547.543 0,55 %

NORGES RÅFISKLAG 437.490 0,44 %

HANSEN DAHL FISKERI AS 374.883 0,37 %

ODD ERIK HANSEN INVEST AS 281.502 0,28 %

LARS WORKINN 229.305 0,23 %

TOR OVESEN 206.556 0,21 %

OLE ALFRED ROLF OVESEN 205.554 0,20 %

GADD HOLDING AS 175.339 0,17 %

TROMSØ SKOTØIMAGASIN A/S 170.000 0,17 %

ENTREPRENØRCOMPANIET NORD AS 169.596 0,17 %

RIGAMONTI A/S 156.005 0,16 %

SPAREBANKSTIFTELSEN HELGELAND 154.491 0,15 %

AGNAR HOLDING AS 152.588 0,15 %

TROMSTRYGD 150.000 0,15 %

BRØDRENE KARLSEN HOLDING AS 119.705 0,12 %

HEMMING LEONHARTH ANDERSEN 115.000 0,11 %

GEIR ANDRE STEILAND 106.500 0,11 %

GEFA EIENDOM AS 100.000 0,10 %

COOP NORD BA 97.848 0,10 %

The 20 largest EC holders residing in Northern

Norway ¹) 5 361 511 5,34 %

94

95

SpareBank 1 Group and Alliance

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

SpareBank 1 SMN A- / F2 A1 / P-1

SpareBank 1 SR A- / F2 A1 / P-1

SpareBank 1 SNN A / F1 A1 / P-1

SpareBank 1 Hedmark n/a A2 / P-1

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

SpareBank 1 Alliance - market position

• 2nd largest banking group in the market

• More than 20% national market share in residential

mortgages

• Regional market share leader with 30-50% shares

Source: Banks annual reports, SpareBank 1 98

• SpareBank 1 is a

Norwegian-only,

retailed focused

institution

Total Assets

Documents

Hovedfil engelsk Q4 2015 - sparebank1.no€¦ · Profit and loss account -Group 33 (Amounts in NOK million) 31.12.15 31.12.14 31.12.14 Net interest income 1 512 1 426 1 426 Net fee-,