Presentation of results for first half of 2010 - SpareBank 1 Gruppen

1st half and 2nd quarter 2010Presentation of results

SpareBank 1 Gruppen

Kirsten Idebøen, CEOKirsten Idebøen, CEO

11 August 2010

Highlights

• SpareBank 1 Gruppen reports good results for the 1st half-year 2010, despite challenging financial markets and a large number of winter-related insurance claims in Q1

• The Delta profitability project is ahead of schedule, and contributes with a net result improvement of MNOK 41 in the 1st half-year 2010

2

• New strategic positions in Q2 2010 through acquisitions

– SpareBank 1 Skadeforsikring AS acquires Unison Forsikring ASA

– SpareBank 1 Gruppen Finans Holding AS acquires the debt collection company Conecto AS

Good result for SpareBank 1 Gruppen

• Profit before tax for 1st half-year 2010 was MNOK 295 (461). Profit before tax for Q2 was MNOK 164 (374)*

• Profit after tax for 1st half-year was MNOK 248 (237). Profit after tax for Q2 was MNOK 156 (242)

• A net positive effect on Q2 profit of MNOK 23.5 as a result of taking early retirement liabilities (AFP) to income after the passage of the AFP-Act and a positive effect on profit of MNOK 45.8 as a result of the termination of surviving spouse and children’s pension

Group profit before tax, per quarter

197

441

163

374

131164200

250

300

350

400

450

MN

OK

3

pension

• Annualised return on equity so far this year 11.6 % (12.5 %)

• Total assets as of 30.06.10 NOK 37.7 billion, up NOK 1.2 billion from 31.12.09

• Core ratio and capital ratio estimated at 12.7 % and 17.8 % as of 30.06.10, compared with 15.0 % and 20.9 % at year-end 2009

– Result for the half-year not included

– The MNOK 150 issue in Unison Forsikring ASA has been deducted from the total eligible primary capital

* Comparative figures for 2009 are shown exclusive Bank 1 Oslo group

100 100

6887

131

0

50

100

150

2008 2009 2010

Pre-tax profit Q1 - incl. Bank 1 Oslo Pre-tax profit Q1 - excl. Bank 1 Oslo

Pre-tax profit Q2 - incl. Bank 1 Oslo Pre-tax profit Q2 - excl. Bank 1 Oslo

Delta profitability project still ahead of schedule in realising profitability effects. The accounts for the 1st half-year 2010 have been charged with MNOK 35 million due to reorganisation costs

REALISED EFFECTS AS AT 30 JUNE 2010 (excluding Bank 1 Oslo)

Realisation of profitability effects over time(MNOK, Cumulative annual effect)

Realised so far

Planned

EFFECT ON PROFITS OF DELTA PROFITABILITY PROJECT FOR 1ST HALF-YEAR 2010 (MNOK)

41

Other

SB1 Skade

3

21

76

35

4

A completed measure qualifies for full annual effect.

The method ensures focus on implementation

2H 20101H 20102H 20091H 2009

• Costs of MNOK 35 related mainly to IT development and the use of consultants, of which MNOK 15 was expensed in Q1 2010

Permanent profit

improvement per 30.06.10

one-off implementation

costs per 30.06.10

Net result effect per

30.06.10

SB1 Liv 52

SpareBank 1 LivsforsikringGood risk result and solid buffer capital

5

SpareBank 1 Livsforsikring

Good risk result and solid buffer capital

• Profit before tax in 1st half-year 2010 was MNOK

192 (230). Profit before tax in Q2 was MNOK 100

(206)

• Risk result of MNOK 188 (190) so far this year. Risk

result in Q2 was MNOK 97 (103)

• Investment result was MNOK 198 (301) in 1st half-

year. Investment result in Q2 was MNOK 129 (352)

Profit before tax, quarterly

-52

24

92

44

206

100

-100

-50

0

50

100

150

200

250

2008 2009 2010

MN

OK

Pre-tax profit/loss - Q1 Pre-tax profit/loss - Q2

6

year. Investment result in Q2 was MNOK 129 (352)

• In the 1st half-year the securities adjustment reserve

was large enough to offset the negative

development in the stock market

• Total assets as of 30.06.10 aggregated NOK 25.1

billion, up MNOK 778 from year-end 2009

Development in net risk result

92

190 188

210

352

0

50

100

150

200

250

300

350

400

2008 2009 2010

MN

OK

Per Q2 Year-end


Buffer capital strengthened

• Core ratio and capital adequacy ratio estimated

at 19.2 % and 22.1 % as of 30.06.10, compared

with 16.1 % and19.0 % as of 31.12.09

• Buffer capital with additional provisions

represented 15.4 % (11.7 %) at the end of June

• Estimated solvency margin by the end of June

Development in buffer capital

6.0 %

11.7 %

13.7 %

11.7 %13.0 %

15.4 %

8 %

10 %

12 %

14 %

16 %

18 %

Perc

en

t

7

• Estimated solvency margin by the end of June

2010 was 322 % (241 %)

• Additional provisions amounted to MNOK 276,

against MNOK 289 at the end of 2009

• The securities adjustment reserve was MNOK

221, against MNOK 327 at year-end 2009

6.0 %

0 %

2 %

4 %

6 %

8 %

Q12009

Q22009

Q32009

Q42009

Q12010

Q22010

Perc

en

t

Core capital in excess of minimum Interim profit

Additional provisions Securities adjustment reserve

Company portfolioCompany portfolio Investment choice portfolio


Asset allocation by portfolio

AS AT 30.06.2010 *)

38.2 (34.2) % 13.6 (14.5) %

4.5 (5.2) %

16.9 (19.4) %0.1 (0.1) %

13.6 (17.0) %

35.6 (31.5) % 58.1 (61.4) %**

8

StocksOtherReal estateBonds held to maturity

Stocks Other

Real estate Bonds held to maturity

BondsStocks Other Bonds

NOK 15.5 (15.5) billion NOK 2.9 (2.5) billion NOK 5.9 (5.6) billion

23.3 (24.3) %

20.3 (21.7) %

57.9 (48.7) %11.5 (14.7) % 6.4 (7.1) %

* Figures in brackets are as of 31.12.09

** The reduction came as a result of reducing shareholding in Group Pension Insurance to 10 % in 1st half-year 2010


Value adjusted return for customer portfolios with guarantee (excluding change in value construction)

2.0

1.6

2.1

1.61.5

1.81.7

2

3

Pro

se

nt

Q12010

Q22010

Q12010

Q22010

Q12010

Q22010

Q12010

Q22010

9 Source: Company presentations

1.61.6

1.41.5

0

1

SpareBank 1 Storebrand Vital Nordea

Pro

se

nt

Perc

en

t

SpareBank 1 SkadeforsikringGood portfolio growth.Results affected by challenging financial markets

10

SpareBank 1 Skadeforsikring

Good portfolio growth. Results affected by challenging financial markets

• Profit before tax in 1st half-year was MNOK 80 (255). Profit before tax in Q2 amounted to MNOK 43 (207)

• Net financial income in 1st half-year was MNOK 83 (244). Lower yields on short-term bonds and negative yield on the share portfolio. Financial return year to date was 1.0 % (3.2 %)

• Operating result in 1st half-year was MNOK 23 (23). Operating result in Q2 was MNOK 75 (39). Net positive affect on result in 1st half-year as a result of taking early retirement liabilities (AFP) to income after the passage of the AFP-Act and the

Profit before tax, quarterly

125

207

100

150

200

250

MN

OK

11

(AFP) to income after the passage of the AFP-Act and the termination of surviving spouse and children’s pension with MNOK 21.5 and MNOK 20.5 respectively, equivalent to a total impact on the cost ratio of 1.9 percentage points.

• Net cost ratio was 18.6 % (21.7 %) in 1st half-year 2010

• Net claims ratio was 82.0 % (75.6 %) in 1st half-year. The increase is due to frost and water damage as a result of a very cold winter

•

• Net combined ratio was 100.6 % (97.2 %) as of 30.06.10

• Positive portfolio growth in both PM and CM in 1st half-year. Total growth of MNOK 174 (121) from year-end, which represents 4.3 % (3.2 %)

54 4836 43

0

50

100

2008 2009 2010

MN

OK

Pre-tax profit - Q1 Pre-tax profit - Q2


Combined ratio so far this year triggered by increased water and frost damage claims. Cost ratio is falling

Net combined ratio quarterly Net combined ratio per year

21.1 %22.2 % 21.8 %

24.8 %

20.2 %

17.1 %80,0 %

100,0 %

120,0 %

100.6 %93.9 % 90.9 %

99.6 %

108.6 %

92.9 %20.7 % 21.9 %

20.5 % 20.6 %22.5 %

80 %

100 %

87.2%89.9%

94.6% 96.2%94.0%

12

79.5 %71.7 % 69.2 % 74.8 %

88.3 %75.9 %

21.8 %

0,0 %

20,0 %

40,0 %

60,0 %

80,0 %

Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010

Claims ratio, net Cost ratio, net

66.7 %73.8 %72.1 %73.9 %

69.3 %

0 %

20 %

40 %

60 %

2005 2006 2007 2008 2009

Claims ratio, net Cost ratio, net


Acquisition of Unison Forsikring

• In June 2010, SpareBank 1 Skadeforsikring AS entered into an agreement to acquire Unison Forsikring ASA. As of 5 August 2010, SpareBank 1 Skadeforsikring AS owns 98.97 % of the shares in Unison Forsikring ASA

• The object of the acquisition is further growth, by developing new distribution channels

13

• Unison Forsikring tailor-makes insurance schemes for organisations (and their members), other distributors, as well as private individuals and companies in Norway

• Because of the acquisition of Union Forsikring ASA, SpareBank 1 Skadeforsikring’s market share at the end of Q1 2010 rose by 0.6 percentage points to 10.6 %

ODIN ForvaltningStrong improvement in results

14

ODIN Forvaltning

Strong improvement in results

• Profit before tax was MNOK 31 (2) for 1st

half-year 2010. Profit before tax for Q2 2010 was MNOK 17 (10)

• Total assets declined in 1st half-year by NOK 1.1 billion from year-end 2009 and amounted to NOK 26.9 billion as of 30.06.10

Profit before tax - quarterly

30

14

29

10

17

15

20

25

30

35

MN

OK

15

30.06.10

• ODIN Norge enjoyed very good return and was the best Norwegian fund in the 1st half of 2010

• Market share from equity funds was 11,5 % at the end of June, against 11,6 % at year-end 2009

-7

10

-10

-5

0

5

10

15

2008 2009 2010

MN

OK

Pre-tax profit/loss - Q1 Pre-tax profit/loss - Q2

SpareBank 1 Gruppen Finans Holding groupStrategic focus within receivables management

16

SpareBank 1 Gruppen Finans Holding group

Strategic focus within receivables management

• For SpareBank 1 Gruppen Finans Holding group, the overall profit before tax was MNOK 6.9 (16.3)

− This result was affected by mandatory reductions in collection fees and a loss provision of MNOK 5 in SpareBank 1 Factoring in Q1

• SpareBank 1 Factoring is the market’s fastest growing factoring company.

− The company has grown 10.5 % over the last 12 months , whilst the market contracted by 6.3 % in the same period

Profit before tax for 1st half-year 2010

MN

OK

*

*

16.0

6.7

16.3

8.7

6.9

6

8

10

12

14

16

18 2009 2010

17

in the same period

− The market share rose from 8.4 % to 9.9 % over the last 12 months

• Actor Portefølje (portfolio acquisitions) and Actor Verdigjenvinning (debt collection of old claims) returned positive results in 2010, namely MNOK 1.7 after the initial start-up in 2009

• Strategic acquisition of the debt collection company, Conecto AS, which, together with Actor Fordringsforvaltning will be one of the three leading debt collection companies in Norway. The agreement was signed in June 2010 with take-over in Q3 2010

* The profit from SB1 Factoring was included with effect from Q2 2009. In the group result for 2009, the profit for the first three months, MNOK 3.2 was recorded directly against equity

Fo

rdri

ng

s-

forv

alt

nin

g

Facto

rin

g

Po

rte

følje

Ve

rdig

jen

vin

nin

g

Fin

an

s H

old

ing

Gro

up

-0.6

3.71.7

-2

0

2

4

6

Argo SecuritiesClimbing up the broker statistics. Improvement in results

18

• Pre-tax loss of MNOK -5 (-25). Pre-tax loss in Q2 was MNOK -2 (-12)

• Positive development in trading volumes 1st

half-year compared to same period last year

– Commission income on stocks and derivatives was MNOK 19.9 (11.0)

Argo Securities

Climbing up the broker statistics. Improvement in results

Profit before tax, 1st half 2010

-24.8

-4.6

-25

-20

-15

-10

-5

0

2009 2010

19

Q3 2009

Q4 2009

Q1 2010

Q2 2010

derivatives was MNOK 19.9 (11.0)

– Debt capital markets amounted to MNOK 8.5 (2.8)

– Fee income Corporate Finance was MNOK 14.9 (0.4)

• Owner and company have set requirements for a positive boost in results in 2010

Position on Oslo Børs’ broker statistics

32

26

1514

-24.8

-30

Competitive return on equity among selected Nordic financial institutions

SpareBank 1 Gruppen 11.6 % 17.1 %

Handelsbanken 12.8 % 12.6 %

DnB NOR 12.6 % 10.6 %

1st half-year 2010 Year 2009*

20

SpareBank 1 Gruppen 11.6 % 17.1 %

Nordea 10.4 % 11.3 %

Gjensidige 8.1 % 15.2 %

Danske Bank 3.4 % 1.7 %

Storebrand 1.4 % 8.2 %

* Source: The companies’ annual reports for 2009

2121

The nation’s savings bank

Appendix

22

SpareBank 1 Alliance

SpareBank 1 Gruppen AS

Alliance cooperationSpareBank 1Skadeforsikring AS

(100%)

SpareBank 1Livsforsikring AS

(100%)

ODIN Argo

Bank-owned companies:

SpareBank 1 Boligkreditt AS

Broad cooperation- Brand/communication- Technology

SpareBank 1SR-Bank (19.5 %)

LO(Trade Union)

(10 %)

Samarbeidende

Sparebanker (19.5 %)

SparebankenHedmark (12 %)

SpareBank 1Nord-Norge (19.5 %)

SpareBank 1SMN

(19.5 %)

23

ODIN Forvaltning AS

(100%)

Argo Securities AS(76.5%)

Boligkreditt AS

EiendomsMegler 1

BNbank ASA

Bank 1 Oslo AS(10% owned by LO)

SpareBank 1 Gruppen Finans Holding AS(100%)

SpareBank 1Medlemskort AS

(100%)

- Technology- Competence- Joint processes and best practice- Purchasing

Regional competence centres- Money transfers: Trondheim- Credit: Stavanger- Training: Tromsø

SpareBank 1 Factoring AS(100 %)

Actor Fordrings-forvaltning AS(100 %)

Actor Portefølje AS(100 %)

Actor Verdigjenvinning AS

(100 %)

Good result for SpareBank 1 Gruppen

• Good risk result and solid buffer capital in


• Volatile financial markets resulted in lower

yield from financial investments for SpareBank

Profit before tax - subsidiaries

230 233

192

150

200

250

MN

OK

24

yield from financial investments for SpareBank

1 Skadeforsikring. Costs developed positively

• Strong improvement in ODIN Forvaltning’s

result

* MNOK 26.1 related to other profit components in Q2 2010, of which actuarial gains and losses on pension of MNOK 25.3 has been recorded as a cost in SpareBank 1 Livsforsikring’s accounts and taken to income in the group accounts.

*

2 3

80

3140

0

50

100

SB

1

Liv

sfo

rs.

SB

1

Sk

ad

efo

rs.

OD

IN

Oth

er

MN

OK

Pre-tax profit per Q2 2009 Pre-tax profit per Q2 2010

Year

Figures in MNOK 2010 2009 2009

Part of result from subsidiaries before tax

- SpareBank 1 Livsforsikring 192.2 230.0 392.2

- Additional provisions recognised as

income in consolidated accounts 0.0 0.0 0.0

- SpareBank 1 Skadeforsikring 79.7 233.0 621.1

- ODIN Forvaltning 31.1 2.2 42.1

- Argo Securities -4.6 -24.8 -48.9

- SpareBank 1 Medlemskort 6.6 9.7 12.1

- SpareBank 1 Gruppen Finans Holding 6.9 16.3 22.5

- Correction group 31.3 1.4 4.8

Net result before tax from subsidiaries 343.3 467.6 1 046.0

Half year

SpareBank 1 Gruppen

Profit for 1st half-year 2010

*

25

Net result before tax from subsidiaries 343.3 467.6 1 046.0

Total operating costs holding -31.9 -25.4 -54.1

Net investment charges holding -16.2 -24.3 -36.3

Gains from sale of companies 0.0 29.2 29.2

Share of associated company - First Securities 0.0 13.5 10.8

Net result before amortisation 295.2 460.6 995.5

Amortisation 0.0 0.0 0.0

Pre-tax result 295.2 460.6 995.5

Taxes -46.8 -223.9 -260.5

Net result for the period 248.4 236.7 735.1

Majority interest 249.4 241.2 743.9

Minority interest -1.0 -4.5 -8.8

* MNOK 26.1 related to other profit components in Q2 2010, of which actuarial gains and losses on pension of MNOK 25.3 has been recorded as a cost in SpareBank 1 Livsforsikring’s accounts and taken to income in the group accounts.

Q2 Q1 Q4 Q3 Q2 Q1

Figures in MNOK 2010 2010 2009 2009 2009 2009

Part of result from subsidiaries before tax

- SpareBank 1 Livsforsikring 100.3 91.9 81.0 81.2 205.6 24.4

- Additional provisions recognised as

income in consolidated accounts 0.0 0.0 0.0 0.0 -42.0 42.0

- SpareBank 1 Skadeforsikring 43.4 36.3 115.3 272.8 184.9 48.1

- ODIN Forvaltning 16.7 14.4 24.0 16.0 9.6 -7.5

- Argo Securities -1.9 -2.7 -9.5 -14.6 -11.9 -12.9

- SpareBank 1 Medlemskort 3.3 3.4 0.7 1.8 4.1 5.6

- SpareBank 1 Gruppen Finans Holding 7.0 -0.1 2.3 3.9 11.0 5.3

- Correction Group 16.3 15.1 -8.6 12.0 -6.0 7.4

SpareBank 1 Gruppen

Quarterly profits

*

26

Net result before tax from subsidiaries 185.1 158.2 205.2 373.1 355.4 112.3

Total operating costs (parent company) -11.9 -20.0 -15.5 -13.2 -12.1 -13.3

Net investment charges (parent company) -9.3 -6.9 -9.8 -2.1 -7.0 -17.3

Gains from sale of companies 0.0 0.0 0.0 0.0 29.2 0.0

Share of associated company 0.0 0.0 -2.8 0.0 8.4 5.1

Net result before amortisation 163.9 131.3 177.2 357.7 373.8 86.8

Amortisation 0.0 0.0 0.0 0.0 0.0 0.0

Pre-tax result 163.9 131.3 177.2 357.7 373.8 86.8

Taxes -8.3 -38.5 -9.3 -27.3 -131.4 -92.5

Net result for the period 155.6 92.8 167.9 330.4 242.4 -5.7

Majority interest 156.1 93.3 169.6 333.1 244.6 -3.4

Minority interest -0.4 -0.5 -1.7 -2.6 -2.1 -2.3

* As of Q2 the amount has been distributed by company

SpareBank 1 Gruppen

Equity capital and result recognition 1st half-year 2010

Figures in NOK 1000

Negative

Net recorded equity/ Other

result components 1)

Termination of surviving

spouse and children's

pension 2)

a)

Previous AFP to income

after the passage of

new AFP-Act 2)

b)

Provisons according

to new AFP-Act

(a - b)

Net effect on result

SpareBank 1 Skadeforsikring 42 475 20 477 24 872 3 340 21 532

SpareBank 1 Livsforsikring 18 240 9 651 8 532 2 163 6 369

Other 19 256 15 632 12 990 2 465 10 525

Total Group 79 971 45 760 46 395 7 968 38 427

27

1) Negative equity transfers related to actuarial gains and losses on pension as of 30.06.10

2) Income recognition (non-recurring effect) as a result of plan changes. MNOK 15 regarding new regulations for early retirement pension (AFP) was taken to income in Q1 2010.

Q2 Q1 Q2 Year

Figures in MNOK 2010 2010 2009 2010 2009 2009

Insurance risk income 321.7 315.3 304.7 637.0 615.1 1 220.6

Insurance risk claims -213.4 -209.3 -190.7 -422.7 -402.5 -829.4

Risk result 108.3 106.0 114.0 214.3 212.6 391.2

Tecnical allocations -11.6 -14.2 -10.9 -25.8 -22.6 -38.9

Risk result after tecnical allocations 96.7 91.8 103.2 188.5 190.1 352.3

Profit element for risk 0.0 0.0 0.0 0.0 0.0 0.0

Fees 164.1 146.3 128.9 310.3 274.9 563.2

Expenses, exclusive comissions -144.5 -131.2 -132.2 -275.7 -272.0 -554.7

Comissions -59.4 -55.9 -47.6 -115.3 -94.6 -201.6

Administration result -39.8 -40.8 -50.8 -80.6 -91.7 -193.1

Net investment income 234.0 176.3 464.4 410.3 523.7 1 002.4

Guaranteed interest to policyholders -105.5 -107.0 -112.9 -212.5 -223.0 -445.0

Investment result 128.5 69.3 351.5 197.8 300.7 557.4

Reserves -12.0 -12.0 0.0 -24.0 0.0 -74.5

Half year


Profit for 1st half-year and 2nd quarter 2010

28

Reserves -12.0 -12.0 0.0 -24.0 0.0 -74.5

Investment result after reserves 116.5 57.3 351.5 173.8 300.7 482.9

Compensation guaranteed interest 9.7 5.2 3.6 14.9 7.2 14.6

Result before additional provisions 183.1 113.6 407.4 296.6 406.3 656.7

Undistributed profits to customers -79.3 -42.2 -213.5 -121.5 -222.4 -337.4

Return on company's assets -3.5 20.5 11.7 17.0 46.2 73.0

Net profit to owner before tax 100.3 91.9 205.6 192.2 230.0 392.2

Taxes -17.8 0.0 0.0 -17.8 0.0 0.0

Net profit/loss for the period 82.5 91.9 205.6 174.3 230.0 392.2

Key figures Q2 Q1 Q2 Half year Year

2010 2010 2009 2010 2009 2009

Capital adequacy ratio 22.1 % 18.7 % 19.0 %

Buffer capital in % of insurance provisions 15.4 % 11.7 % 11.7 %

*

* The company’s accounts did not show the tax charge in 2009 inasmuch as the tax benefit was not included pursuant to the IAS 12 accounting standard. The group contribution in Q2 2010 resulted in the company having a net deferred tax liability. The company’s tax charge so far this year amounts to MNOK 17.8 and is shown in the company’s accounts.


Profit by portfolio 1st half-year 2010

Figures in MNOK

Group

portfolio

Previously

established

individual products

Investment choice

portfolio

Company

portfolio Total

Risk result 180.4 7.6 0.5 0.0 188.5Profit element for risk 0.0 0.0 0.0 0.0 0.0

Administration result 16.1 -27.7 -69.0 0.0 -80.6

29

Administration result 16.1 -27.7 -69.0 0.0 -80.6Net investment result 133.5 63.2 0.0 1.0 197.8

Reserves - long life -0.1 -23.9 0.0 0.0 -24.0Compensation interest guarantee 14.9 0.0 0.0 0.0 14.9Transferred to policyholders -108.5 -12.5 -0.5 0.0 -121.5Return on company's assets 0.0 0.0 0.0 17.0 17.0

Sum 236.4 6.7 -69.0 18.0 192.2


Premiumn income trends

Q2 Q1 Q2 Half year Year

Figures in MNOK 2010 2010 2009 2010 2009 2009

Individual annuity and pension insurance 83.1 75.2 65.3 158.3 128.1 269.6

Individual endowment insurance 128.9 126.9 120.3 255.9 239.5 486.7

Group pension insurance 72.1 252.1 94.1 324.1 367.5 564.1

Individual life insurance 45.4 44.5 42.3 89.9 84.1 171.0

Group life insurance 125.8 209.8 116.1 335.6 328.2 575.0

30

Group life insurance 125.8 209.8 116.1 335.6 328.2 575.0

Unit Linked - Annuity 10.8 13.7 10.8 24.5 22.6 47.9

Unit Linked - Endowment 55.4 59.0 76.4 114.3 120.9 258.3

Defined contribution pension 216.6 200.0 193.0 416.6 383.8 753.7

Total gross due premium income 737.9 981.3 718.3 1 719.3 1 674.8 3 126.4

Premium reserves transferred from other companies 80.5 80.8 83.8 161.3 149.5 285.4

Reinsurance ceded -42.0 -43.5 -40.0 -85.5 -79.7 -157.7

Premium income for own account 776.4 1 018.6 762.1 1 795.0 1 744.6 3 254.1


Return on ordinary customer portfolios with guarantee as of 30.06.10

1.0

-4.3

-11.6

Money Market

Foreign shares

Norwegian shares

Percent

31

5.9

2.7

4.5

3.4

-15 -10 -5 0 5 10

Real estate

Held to maturity

Foreign bonds

Norwegian bonds

2.1

2.83


Booked return on customer portfolios with guarantee year to date

Q12010

Q22010

Q12010

Q22010

Q12010

Q22010

Q12010

Q22010

32

1.21.2

1.0

1.51.61.6

0

1

2

SpareBank 1 Storebrand Vital Nordea

Perc

en

t

Source: Company presentations


Balance Sheet as of 30 June 2010

Year

Figures in MNOK 2010 2009 2009

Intangible assets 26 77 38

Investments 2 929 1 955 2 498

Reinsurance's part of insurance obligations 226 215 221

Accounts receivable 160 565 90

Other assets 153 305 241

Prepayed liabilities and accrued income 0 0 0

Investments group portfolio 15 696 15 079 15 629

Half year

33

Investments group portfolio 15 696 15 079 15 629

Investments options portfolio 5 881 4 737 5 576

Total assets 25 072 22 934 24 294

Paid in capital 1 602 1 243 1 243

Other equity 561 535 397

Subordinated loan capital 525 525 525

Insurance obligations - contractual 15 551 15 142 15 513

Insurance obligations - investment options 5 970 4 811 5 658

Provisions for obligations 129 96 88

Premium deposits from reinsurance companies 131 124 129

Other obligations 527 361 658

Accrued liabilities, prepaied income 77 98 83

Total liabilities and equity 25 072 22 934 24 294



Q2 Q1 Q2 Year

Figures in MNOK 2010 2010 2009 2010 2009 2009

Gross written premium 1 171.9 1 325.2 1 084.2 2 497.1 2 322.1 4 271.2

Net earned premium 1 007.0 965.4 941.1 1 972.4 1 860.3 3 814.3

Net incurred claims -764.0 -852.5 -675.2 -1 616.6 -1 405.7 -2 813.1

Net insurance operating costs -171.8 -195.1 -208.7 -366.9 -402.9 -858.0

Other insurance income/costs -0.5 -0.4 4.2 -0.8 1.4 0.8

Changes in other technical reserves 4.6 29.9 -22.5 34.5 -30.3 -27.5

Operating result before finance 75.3 -52.8 38.9 22.5 22.8 116.6

Net financial income -15.0 97.6 174.6 82.6 244.2 532.6

Other costs -1.0 -1.0 -2.3 -2.0 -3.6 -5.8

Half year

34

Other costs -1.0 -1.0 -2.3 -2.0 -3.6 -5.8

Result before changes in security reserve 59.4 43.8 211.2 103.1 263.4 643.3

Changes in security reserve -15.9 -7.5 -4.1 -23.4 -8.3 -22.2

Pre-tax profit 43.4 36.3 207.1 79.7 255.2 621.1

Taxes -12.2 5.4 -52.7 -6.8 -66.1 -118.1


Key figures Q2 Q1 Q2 Year

Figures in percentage 2010 2010 2009 2010 2009 2009

Claims ratio, net 75.9 % 88.3 % 71.7 % 82.0 % 75.6 % 73.8 %

Cost ratio, net 17.1 % 20.2 % 22.2 % 18.6 % 21.7 % 22.5 %

Combined ratio, net 92.9 % 108.5 % 93.9 % 100.6 % 97.2 % 96.2 %

Capital adequacy ratio 27.6 % 28.0 % 34.2 %

Half year

Bonds held as current assets

Bonds held to maturity

Real state


Allocation of financial assets

At 30.06.2010 *)

65.2 (64.3) %

11.2 (11.0) %

35

Real state

Stocks

Bank

Hedgefond

NOK 8.2 (8.2) billion

* Figures in brackets are as of 31.12.09

14.6 (14.4) %

0.2 (0.3) %7.5 (7.1) %

1.3 (2.9) %

ODIN Forvaltning


Q2 Q1 Q2 Year

Figures in MNOK 2010 2010 2009 2010 2009 2009

Management fees 79.6 78.3 57.0 157.8 103.3 244.8

Subscription and redemption fees 0.0 0.0 6.7 0.0 13.0 25.9

Total operating income 79.6 78.3 63.8 157.8 116.3 270.7

Salaries 24.1 25.6 18.5 49.8 37.7 88.1

Depreciations 3.7 3.9 3.9 7.5 8.0 16.0

Half year

36

Depreciations 3.7 3.9 3.9 7.5 8.0 16.0

Other operating costs 35.8 34.6 30.9 70.4 62.6 124.2

Total operating costs 63.6 64.1 53.4 127.7 108.4 228.3

Operating profit 16.0 14.2 10.4 30.1 7.9 42.4

Net financial income 0.7 0.3 -0.8 1.0 -5.8 -0.3

Pre-tax profit 16.7 14.4 9.6 31.1 2.2 42.1

Taxes 4.6 3.9 0.4 8.5 0.6 13.5


Realised effects by quarter(MNOK) Realised staff reduction by quarter(Annual full-time equivalents)

EFFECT REALISATION OF PROFITABILITY PROJECT

SUB-PROJECT SpareBank 1 Skadeforsikring REPORT DATE 11.08.2010

84

79

57

4848

Realised effects

Planned Planned

Realised effects

37

47

37

16

2

57

31

22

7

Q3-09Q2-09 Q4-10Q1-10Q4-09 Q3-10Q2-10

15

10

4

2

18

6

15

9

Q1-10Q4-09Q3-09 Q4-10Q3-10Q2-10Q2-09

SUB-PROJECT SpareBank 1 Livsforsikring REPORT DATE 11.08.2010


191

162

150

166

137

101

9494

79

68

78

7168

Planned Planned


Realised effects Realised effects

38

119

43

1813

86

66

18

Q1-10Q4-09Q3-09Q2-09 Q2-10 Q4-10Q3-10

68

2420

7168

50

25

Q4-10Q3-10Q2-10Q1-10Q4-09Q3-09Q2-09

Delta profitability project was behind schedule in respect of staff reductions. This is the result of giving priority to measures that have the best profitability effect, irrespective of whether or not they have an impact on staff numbers

REALISED EFFECTS AS AT 30 JUNE 2010 (excluding Bank 1 Oslo)

Realisation of staffing consequences over time (Full-time equivalents, cumulative)

157

116

105

92

Realised so far

Planned

39

A large part of the reduction in full-time equivalents comes from natural reduction in the use of temporary staff

76

24

92

29

2H 20101H 20102H 20091H 2009

SUB-PROJECT Bank 1 Oslo REPORT DATE 11.08.2010


89

7171

59

70

61

21

1919

21

18

12

Planned Planned


Realised effectsRealised effects

40

46

29

14

44

25

14

Q1-10Q4-09Q3-09Q2-09 Q2-10 Q4-10Q3-10

10

777

12

9

7

Q4-10Q3-10Q2-10Q1-10Q4-09Q3-09Q2-09

With effect from 1 January 2010, the reports for SB1 Gruppen do not include Bank 1 Oslo, but the bank is still part of the Delta Project

Presentation of results for first half of 2010 - SpareBank 1 Gruppen

Investor Relations

q2 profit of mnok

risk result of mnok

gruppen profit

costs of mnok

oslopretax profit q2

mnokpretax profit

pensiongroup profit

net result improvement