Page 1 SpareBank 1 SR-Bank Group 26 April, 2007 First quarter 2007.

Page 1

SpareBank 1 SR-Bank Group

26 April, 2007

First quarter 2007

Page 2

High activity in Q1 2007

• Successful rights issue.

• Geographic expansion in both Hordaland and Agder. New office in Søgne.

• IRB application approved.

• Capital Markets division established.

• Mandatory occupational pension (OTP) - increased focus on additional RM-sales.

• The “PRO-school”.

• Increased sale of real estate projects.

• New CEO in EiendomsMegler 1 (real estate broker).

• Agreement between SpareBank 1 SR-Bank and mobile telephone company Chess.

• Skills developement.

Page 3

Good result – high activity and marked increase in savings and placement income

(Profit so far in 2007. Figures for corresponding period in 2006 shown in parentheses.)

• Group profit before tax: NOK 287 mill. (NOK 251 mill.).

• Return on equity after tax: 20.8 % (21.3 %).

• Net interest income: NOK 288 mill. (NOK 268 mill.).

• Net commission and other income: NOK 190 mill. (NOK 156 mill.).

• Net return on investment securities: NOK 104 mill. (NOK 101 mill.).

• Growth in lending: NOK 24.3 % (14.6 %) last 12 months, of which RM: 16.0 % and CM: 41.8 %.

• Growth in deposits: 13.3 % (14.8 %) last 12 months, of which RM: 8.5 % and CM: 17.3 %.

• Profit per primary capital certificate (parent bank): NOK 5.1 (NOK 4.6).

• Rights issue fully subscribed – significant interest.

Page 4

• Significant interest in the public rights issue of NOK 548 mill.

• Total PCC subscription of NOK 1,073 mill. by 8,501 subscribers.

• A good market for the subscription rights was created. Approx. 26 % of the subscription rights were traded through Oslo Stock Exchange during the subscription period.

• A private placing of PCCs with the employees amounted to NOK 35.8 mill. 546 employees subscribed.

• As a result of the rights issue and private placement the PCC ratio was strengthened from 51.0 % to 57.5 %. A weighted average of 55.9 % will be used as a basis for allocating the profit for the year.

Successful rights issue

Page 5

Income statement

MNOK Q1 07 Q4 06 Q3 06 Q2 06 Q1 06

Net interest income 288 298 283 279 268 Net commission and other income 190 184 161 177 156 Net return on investment securities 104 191 64 85 101 Total income 582 673 508 541 525 Total operating expenses 306 331 288 287 272 Operating profit before losses 276 342 220 254 253 Loss on loans and guarantees -11 -50 -35 -9 2 Operating profit before tax and minority interests

287 392 255 263 251

Tax expense and minority interests 64 74 62 60 51 Net profit 223 318 193 203 200

Page 6

Key figuresQ1 07 Q1 06

Return on equity after tax 20,8 % 21,3 %

Net interest margin 1,35 % 1,59 %Cost/income ratio parent bank 48,9 % 56,8 %Cost/income ratio Group 55,0 % 58,0 %Loss percentage -0,06 % 0,01 %Annual growth in loans to customers, gross 24,3 % 14,6 %Annual growth in deposits from customers 13,3 % 14,8 %Deposit-to-loan ratio 56,8 % 62,0 %Total assets, MNOK 88 033 69 886 Capital adequacy ratio 10,5 % 11,0 %Core capital ratio 7,1 % 8,4 %Norges Bank's liquidity indicator (excl. draw. facil.) 99,6 % 95,5 %Number of man years 954 874Number of offices 53 51 Market price per PCC at end of period, NOK 178,0 195,9Result per PCC, NOK (parent bank) 5,1 4,6

Result per PCC, NOK (group) 5,1 4,7

Page 7

-

0,50

1,00

1,50

2,00

2,50

mar

.05 . .

sep.

05 . .

mar

.06 .

sep.

06

mar

.07

Lending margin (parent bank)Deposits margin (parent bank)Total margins

1,65

0,66

0,99

Net interest income and margins - Continuous pressure on lending margin

278 279 280 276 268 279 283298 288

1,89 %1,79 % 1,71 % 1,65 % 1,59 % 1,57 %1,49 % 1,46 %

1,35 %

0

50

100

150

200

250

300

350

1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07

0,00 %

0,50 %

1,00 %

1,50 %

2,00 %

2,50 %

Net interest incomeNet interest margin

Page 8

10,7 11,8 12,414,3

16,0 15,2 15,915,116,6

10,8

16,0

10,9

18,1

13,9

27,5

44,7

41,8

14,2

0,0

5,0

10,0

15,0

20,0

25,0

30,0

35,0

40,0

45,0

50,0

Q1 05 Q2 05 Q3 05 Q4 05 Q1 06 Q2 06 Q3 06 Q4 06 Q1 07

%

RM CM

Lending growth (12 months) - Still high growth

CM:36,8 %

RM:63,2 %

31.03.07

RM-growth includes mortgage loans transferred to SpareBank 1 Boligkreditt AS.

• RM-growth Q1 07, annualized: 11.7 %.

• CM-growth (excl. public sector/finance) Q1 07, annualized: 16.8 %.

Page 9

7,36,47,2 6,2

4,0

9,9

7,05,5

8,5

28,8

31,9

18,9

23,3 22,3

16,4

18,717,3

29,1

0,0

5,0

10,0

15,0

20,0

25,0

30,0

35,0

Q1 05 Q2 05 Q3 05 Q4 05 Q1 06 Q2 06 Q3 06 Q4 06 Q1 07

%

RM CM

Deposits growth (12 months) - Relatively stable growth

CM:56,4 %

RM:43,6 %

31.03.07

Page 10

Savings/placements - portfolio development

-

2.000

4.000

6.000

8.000

10.000

12.000

14.000

1/05 2/05 3/05 4/05 1/06 2/06 3/06 4/06 1/07

MN

OK

ODIN SR-ForvSavings insurance BMBReal estate Interest fundGuarantee account

Page 11

Net commission and other income - Good development in income from savings/placements

Q1 Q4 Q3 Q2 Q1MNOK 2007 2006 2006 2006 2006

Payment facilities 42 44 46 41 42 Savings/placements 52 50 28 27 31 Insurance products 23 26 21 21 21 Commission income real estate (EM1) 60 54 55 60 51 Other 13 10 11 28 11

Net commission and other income 190 184 161 177 156

• Good growth in

• Savings/placements

• Commission income real estate (EM1)

Page 12

Net return on investment securities - High group profit contribution from SpareBank 1 Group

Q1 Q4 Q3 Q2 Q1MNOK 2007 2006 2006 2006 2006

Dividend 4 1 1 7 3 SpareBank 1 Group 48 76 43 49 21 Securities gains 27 89 0 10 56 Currency/interest gains 25 25 20 19 21 Net return on investment securities

104 191 64 85 101

Page 13

Other operating income in % of total income - Our income basis is broadened

29,7 29,632,1

34,536,5

40,442,7

21,2 22,4 22,424,7

22,5

0

5

10

15

20

25

30

35

40

45

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

31.0

3.2

007

%

Excluding gain/loss on securities trading, dividend and ownership stakes.

Financial statements before 2004 are not prepared according to IFRS.

Page 14

MNOK 31.03.07 31.03.06

EiendomsMegler 1 SR-Eiendom ASNumber of assignments 2 470 1 712 Operating profit before taxes 5,5 5,1

SpareBank 1 SR-Finans ASTotal assets 2 981 2 267 Operating profit before taxes 8,0 5,0

SR-Forvaltning ASAPortfolio, NOK billion 6,0 4,7 Operating profit before taxes 12,3 8,6

SR-Investering ASInvestments 88 46Operating profit before taxes 8,4 13,4

Subsidiaries - A higher level of diversification

Page 15

Operating costs

Q1 Q4 Q3 Q2 Q1MNOK 2007 2006 2006 2006 2006

Personnel expenses 164 177 160 153 144 Administrative expenses 85 94 74 83 78 - of this IT-costs 43 49 39 39 39 - of this marketing costs 20 21 13 22 20

Capital losses on non-financial assets 13 20 11 12 11 Other operating expenses 44 40 43 39 39 Total operating expenses 306 331 288 287 272

Number of man years 954 944 924 880 874

Page 16

Net losses on loans and guarantees

Jan-Mar Jan-Dec Jan-Sep Jan-Jun Jan-MarMNOK 2007 2006 2006 2006 2006Retail customers -2 -13 -11 0 0Corporate customers -9 -79 -31 -7 2Net losses -11 -92 -42 -7 2

MNOKJan-Mar

2007Jan-Dec

2006Jan-Sep

2006Jan-Jun

2006Jan-Mar

2006New specified losses 11 32 19 12 9Reversed losses -22 -142 -61 -19 -7Net losses -11 -92 -42 -7 2Loss percentage (annualized) -0,06 -0,13 -0,08 -0,02 0,01

MNOK Mar 2007 Dec 2006 Sep 2006 Jun 2006 Mar 2006Specified loss provisions 91 107 137 155 163Unspecified loss provisions 131 131 159 169 169Total loss provisions 222 238 296 324 332

Page 17

Gross non-performing loans

179186

168

130 132126

103111 114

0,32 0,320,29

0,21 0,210,19

0,15 0,14 0,14

0

50

100

150

200

Q1 05 Q2 05 Q3 05 Q4 05 Q1 06 Q2 06 Q3 06 Q4 06 Q1 07

MNOK

0,0

0,2

0,4

0,6

0,8

1,0

% of gross loans

Gross non-performing loans % of gross loans

Page 18

Financial targets

Targets 31.03.2007

Return on equity after tax 15% 1) 20,8 %

Core capital ratio 2) 7 % 7,1 %

Capital adequacy ratio 2)

11 % 10,5 %

Cost/income ratio parent bank 3)

50 % 48,9 %

1. SR-Bank aims for a return on equity of 15 per cent, or being among the best third of banks with which it is natural to compare onself.

2. The board of directors has decided to change the target for the core capital ratio to a minimum of 7 % and the target for the capital adequacy ratio to a minimum of 11 % awaiting the positive effects of the introduction of Basel II.

3. Total operating costs as a percentage of total operating income (excl. securities losses/gains).

Page 19

Retail Market Division

• The development in the savings/placement area is very good.

• Continued good balance sheet growth.

• Continued pressure on margins.

• The struggle for market shares in the non-life insurance area has become significantly intensified.

• To further strengthen the expertise of the advisors in the Retail Market Division the “SR-Skolen” is established.

Page 20

Corporate Market Division

• Positive profit development in the first quarter of 2007.

• Towards the end of 2006, the effort made as regards capital management for the Group's corporate customers was strengthened.

• The PRO concept has been well received in the market, and more than 500 of our SME customers now subscribe to this concept.

• Competition in all markets is strong and this situation is expected to last.

• The Corporate Market Division expects a continued good development in 2007.

Page 21

New business division: Capital Markets

• Established in March 07. Continuous development throughout 07.

• All necessary licences in place

• Frank Billingstad head of Corporate

Capital Markets

MarketsSavings and placement

CorporateCapital

management

• Real estate• Transactions

• SR-Investering• SR-Forvaltning

• Client trading and advisory service

- Trading

• Strategy• Investment

committee

Page 22

SpareBank 1 SR-Bank has a position well suited to meeting the increased level of competition…

• The geographic expansion is widening our market area and is increasing our potential growth.

• Efforts in new business areas are contributing to growth in other operating income and gives us a higher level of diversification.

• The group’s ability to change presents us with new possibilities regarding innovation.

• Measures taken to increase our level of expertise and skills as well as new hirings mean that we are able to meet the demands from advanced customers.

• SpareBank 1 SR-Bank’s current strategic efforts will strengthen our ability to meet increased competition in the future, and increases our earning potential.

• New business area - Capital Markets - to strengthen the savings and capital markets area.

Page 23

Appendix

Page 24

The primary capital certificate - ROGG

• Trading volume Q1 2007: 6,0 % (6,6 %).

• Number of ROGG owners 31.03.07: 11.411 (10.781).

Owner shares per 31.03.07:

• From Rogaland, Agder and Hordaland: 63,9 % (49,1 %).

• Non-domestic: 7,1 % (18,3 %).

• 10 largest: 24,1 % (25,2 %).

• 20 largest: 30,9 % (31,4 %).

0,050,0

100,0150,0

31.0

3.20

005

.05.

200

08.0

6.20

007

.07.

200

07.0

8.20

005

.09.

200

04.1

0.20

002

.11.

200

01.1

2.20

004

.01.

200

02.0

2.20

005

.03.

200

03.0

4.20

0

Reb

ased

ROGG OSEBX

Page 25

Q1 2007 Q1 2006 2006 2005 2004Market price, end of period 178,0 195,9 182,4 222,0 139,0Dividend per PCC N/A N/A 12 14,0 9,2Direct return N/A N/A 6,3 % 6,1 % 6,4 %Effective return 3,3 % -5,7 % -11,7 % 66,1 % 40,0 %P/E (parent bank) 9,0 11,0 10,7 11,0 9,5P/BV (parent bank) 2,09 2,38 1,96 2,43 1,77Earnings per PCC (PCC-owners share) (parent bank) 5,1 4,6 17,6 21,0 15,2 Earnings per PCC (PCC-owners share) (group) 5,1 4,7 21,5 21,3 15,8 Payout ratio (net) N/A N/A 68 % 67 % 61 %PCC percentage (as of 01.01) 51,0 % 53,0 % 51,0 % 53,0 % 56,3 %Book value per PCC, NOK 82,5 80,8 84,3 80,8 72,3RISK-amounts as of 01.01 following year, NOK N/A N/A N/A 1,79 6,06Number of issued PCCs, million 22,6 22,6 22,6 22,6 22,6Stock value (NOK million) 4 143 4 588 4 274 5 201 3 257

Key figures - ROGG

Page 26

Capital adequacy31.mar 31.mar

MNOK 2007 2006

Savings bank's reserve 1 707 2,93 1 505 3,17

Primary capital certificate capital 1 126 1,93 1 125 2,37

Dividend equalization reserve 721 1,24 662 1,39

Premium reserve 17 0,03 21 0,04

Perpetual capital securities 456 0,78 493 1,04

Endowment fund 90 0,15 109 0,23

Other equity 293 0,50 - 0,00

Fund for unrealised gains 110 0,19 - 0,00

Goodwill and other intangible fixed assets -38 -0,07 -45 -0,09

Unrecognized actuarial gains and losses 77 0,13 116 0,24

Deductions in core capital -451 -0,77 - 0,00

Core Capital 4 108 7,06 3 986 8,40

Supplementary Capital 2 439 4,19 1 812 3,82

- Term subordinated capital 1 650 2,83 1 334 2,81

- Perpetual subordinated loan capital 789 1,36 478 1,01

Deductions in supplementary capital -451 -0,77 -560 -1,18

Net equity and subordinated loan capital 6 096 10,47 5 238 11,03

Basis for calculation - 100 % 61 287 47 472

Basis for calculation - 95 % 58 223

% %

Page 27

Rating

Moody's Fitch

Bank Deposits Aa3 Long-term A

Outlook Stable Outlook Stable

In Q1 07 Moody’s introduced a new rating method for banks. In connection with this the SpareBank 1 SR-Bank rating for long-term bank deposits was raised to Aa3 (stable outlook) from A2 (stable outlook).

The short-term rating is still P-1 and Bank Financial Strength Rating (BFSR) is unchanged at C+.

Page 28

Change in net interest income - Strongly affected by lower lending margin

MNOK

31.03. 2007 Change

31.03. 2006 Q1 07 Change Q4 06

Net interest income: 288 20 268 288 -10 298Of this:Lending growth, parent bank 26 7Deposit growth, parent bank 14 4Lending margin, parent bank -48 -6Deposit margin, parent bank 12 0Equity 16 5SR-Finans/EM1 4 -3Unequal number of days 0 -7Other/IFRS effects -4 -10

Page 29

Lending by industry 31.03.07

Personkunder63,2 % (67,9 %)

Annet1,1 % (2,4 %)

Bergverk/utvinning

2,2 % (0,6 %)

Kraft/Vannforsyning2,0 % (1,9 %)

Industri3,6 % (3,2 %)

Eiendomsdrift15,4 % (12,4 %)

Tj.ytende virksomhet

4,7 % (3,3 %)

Varehandel/Hotell

2,3 % (2,5 %)

Sjøfart/ Rørtransport2,7 % (2,8 %)

J ordbruk/Skogbruk

2,7 % (3,1 %)Retail customers

Other

Mining/ExtractionPower/Water SupplyIndustry

Real Estate

Service Industry

Commodity trade/hotels Shipping/

Transportation

Agriculture/Forestry

Page 30

Balance sheet

Balance sheet (MNOK) 31.03.2007 31.03.2006

Cash and balances w ith central banks 3 004 482Balances w ith credit institutions 103 283Net loans to customers 78 801 63 531Certif icates, bonds and other f ixed-income securities 3 505 3 298Financial derivative 323 610Shares, ow nership stakes and other securities at cost 7 7Shares, ow nership stakes and other securities at fair value 560 407Investment in associates 895 519Investment in subsidiaries 0 0Tangible f ixed assets 301 302Other assets 534 447

Total assets 88 033 69 886

Balances w ith credit institutions 1 729 3 657Deposits from customers 44 857 39 588Listed debt securities 31 299 18 019Financial derivative 593 366Other liabilities 2 367 2 254Subordinated loan capital 2 895 2 305

Total liabilities 83 740 66 189

Total equity 4 293 3 697

Total liabilities and equity 88 033 69 886

Page 31

SpareBank 1 SR-Bank

• Established in 1839

• Head office in Stavanger

• 53 offices in South-Western Norway

• More than 200,000 customers

• Chairman of the Board: Kristian Eidesvik

• Chief Executive Officer: Terje Vareberg

• Chairman Supervisory Board: Svein Kjetil Søyland

• Chairman Audit Committee: Odd Rune Torstrup

• External Auditor: PricewaterhouseCoopers

Page 32

EiendomsMegler 1 SR-Eiendom AS

100 %

SpareBank 1 SR-Finans AS

100 %

SpareBank 1 Gruppen AS

19,5 %

• ODIN Forvaltning AS• SpareBank 1

Livsforsikring AS• SpareBank 1

Skadeforsikring AS• SpareBank 1

Fondsforsikring AS• Bank 1 Oslo AS• SpareBank 1

Medlemskort AS• First Securities ASA• SpareBank 1 Bilplan AS

SR-Forvaltning ASA67 %

SR Investering AS

100 %

SpareBank 1 Boligkreditt AS

26,7 %

• Real-estate agency:

- Houses- Business- Projects

• Market leader in Rogaland

• Leasing• Financing

• Investment inlong-term equity

• Mortgage company

• Asset management

Page 33

Localized in Rogaland, Agder and Hordaland

• Head office in Stavanger • 53 branches in Rogaland,

Agder and Hordaland

Page 34

SpareBank 1 Alliance

Owners

Sparebanken Hedmark

12,0 %

LO og Fagforbund

10 %

Samarbeidende Sparebanker AS

19,5 %

SpareBank 1Nord-Norge

19,5 %

SpareBank 1Midt-Norge

19,5 %

SpareBank 1SR-Bank19,5 %

SpareBank 1 Gruppen AS

Bank 1 Oslo AS100 %

SpareBank 1Livsforsikring AS

100 %

SpareBank 1Fondsforsikring AS

100 %

SpareBank 1 Bilplan AS19,9 %

ODIN Forvaltning AS100 %

First Securities ASA24,5 %

EiendomsMegler 1

SpareBank 1Skadeforsikring AS

100 %

SpareBank 1 Medlemskort AS100 %

SpareBank 1 Alliance, key figures:

• Total assets: ca NOK 356 billions

• No. of own branches: ca 350

• Total no. of branches: ca 380

• Employees: ca 4.700

• Internet customers: ca 445.000

As of June 2006/Annual report 2006

New members in 2006:• Sparebanken Hedmark

• Kvinnherad Sparebank

• Sparebanken Volda Ørsta

• Sparebanken Hardanger

Actor Fordringsforvaltning AS 90 %

Page 35

Strategy

SpareBank 1 SR-Bank shall be a profitable and solid bank that is attractive to customers, capital markets, owners and employees alike.

Through:

• A savings bank philosophy with a strong brand and modern bank operations, where value is created locally and further employed in the local community.

• Clear prioritization based on customer needs and profitability.

• Our market area is primarily Rogaland, Agder and Hordaland.

• Clear position in the savings/pension market.

• Competent employees who take pride in working for SpareBank 1 SR-Bank.

Page 36

willWhat separates one bank from another? Interest rates, fees and products are often the same. But have you asked your bank what they want? Or what role they want to play?

Our answer is simple.

The objective of SpareBank 1 SR-Bank is to help create values for the region we are part of, and the only way in which we can do this is through the achievements of our 1,018 employees.

It’s a matter of will.

Page 37

purposeSpareBank 1 SR-Bank

will add value to the region in which we

take part.

Page 38

Through being/having• a long-term perspective• open and honest

Through showing• responsibility and respect• will and ability to improve

The courage of conviction, the strength to create

values