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Storebrand Analyst presentation
Results 3rd Quarter 2002
3Q 2002 2
Analystpresentation3rd quarter 2002
• Storebrand GroupGroup CEO Idar Kreutzer page 2-16
Backup• Storebrand Group page 17-21• Storebrand ASA page 22-23• Storebrand Life Insurance page 24-33• Storebrand Investments page 34-38• Storebrand Bank page 39-40• Finansbanken page 41-46• Storebrand non-life page 47-50
Storebrand Results 3rd Quarter 2002
13th November 2002
Idar KreutzerGroup CEO
3Q 2002 4
3rd Quarter – Financial highlights
� Weak development in equity markets has significant impact on financial income in the life business, If and the holding company – in addition, saving product sales and management fees are affected
� Good solidity is maintained through active and comprehensive risk management
� Booked return in life company 0.93% year to date� Combined ratio in If 103.6% in Q3 � Cost reductions developing as planned
3Q 2002 5
Storebrand GroupGroup profit
01.01-31.12
NOK million 2002 2001 2002 2001 2001
Life activities -99 -407 -496 -199 -111
Investment activities -9 9 -2 12 14
Storebrand Bank Group *) -16 -19 -19 -87 -43
Finansbanken Group 9 19 -329 -84 -74
Non life activities -61 -318 -308 -490 -767
Other activities **) -269 -174 -576 -387 -449
Group profit -446 -891 -1,730 -1,234 -1,430
*) Full year 2001 includes sale of Storebrand Finans
**) Including depreciation of goodwill Finansbanken
01.01 - 30.09Q 3
3Q 2002 6
Group result- alternative setup
Full yearNOK mill. 2002* 2001 2001Net interest income (banking) 462 467 623Net financial income -354 -33 -154Other income (banking)** 192 276 352Other income/costs** 84 93 268Operating expenses** -922 -1094 -1370Group result excluding life, If and loan loss provisions -539 -291 -281Loan loss provisions (banking) -390 -237 -269Group result excluding life and If -929 -528 -550
Profit life (w/ profit sharing) -502 -178 -118Profit life (w/o profit sharing) 53 29 104Result other life companies -48 -50 -96
Sum result life business -496 -199 -111Group result excluding If -1425 -727 -661Share of If result -305 -507 -769Group profit -1730 -1234 -1430
* Explanations:Net interest income (banking): 159m in Storebrand Bank, 303m in Finansbanken
Net financial income: Hereof -401m in Storebrand ASA, 55m in Non-life (excl. If).
Other income (banking): Mainly distribution commissions (Storebrand Bank >150m)
Other income/costs: Includes asset management fees in SB Investments (after elimination of sold services
internally in the group), premium income/claims in non-life (excl. If), write down of non-current assets Operating expenses: Storebrand ASA -164m, Finansbanken -260m, Storebrand Bank -313m, includes also SB Investments
(after elimination of sold services), and other activitiesLoan loss provisions (banking): Finansbanken -385m, Storebrand Bank -5m
**Note: Group internal bought and sold services eliminated (excluding SB Bank)
1.1 - 30.9
3Q 2002 7
Life businessProfit and loss
01.01.- 31.12NOK Million 2002 2001 2002 2001 2001Interest result -1.077 -2.875 -2.131 -2.142 -535Risk result 119 10 163 112 238Administration result 2 -12 -67 -69 -102Change in security and premium reserve -35 226 -233 111 -25Operating profit -991 -2.651 -2.268 -1.988 -425Can be drawn from additional statutory allocations *) 908 1.837 1.819 1.837 408Total result after tranferringfrom additional statutory allocations -83 -814 -449 -151 -17Transferred to policyholders 422Profit to owner SBL AS -83 -392 -449 -151 -17Profit to owner Storebrand Life Group -83 -391 -448 -149 -15 Other life insurance activities -16 -16 -48 -50 -96 Group profit life -99 -407 -496 -199 -111 *) At year-end
01.01.-30.09Q3
3Q 2002 8
Life businessProfit and loss
� Booked return 0.93% ytd (0% in Q3). Allocation fromstatutory additional reserves (SARs) is NOK 1,819 mill. ytd, remaining SARs are NOK 2,294 mill.
01.01.- 31.12NOK Million 2002 2001 2002 2001 2001Interest result -1.077 -2.875 -2.131 -2.142 -535Risk result 119 10 163 112 238Administration result 2 -12 -67 -69 -102Change in security and premium reserve -35 226 -233 111 -25Operating profit -991 -2.651 -2.268 -1.988 -425Can be drawn from additional statutory allocations *) 908 1.837 1.819 1.837 408Total result after tranferringfrom additional statutory allocations -83 -814 -449 -151 -17Transferred to policyholders 422Profit to owner SBL AS -83 -392 -449 -151 -17Profit to owner Storebrand Life Group -83 -391 -448 -149 -15 Other life insurance activities -16 -16 -48 -50 -96 Group profit life -99 -407 -496 -199 -111 *) At year-end
01.01.-30.09Q3
3Q 2002 9
Life businessProfit and loss
� Disability reserving of NOK 35 mill. in Q3
� Improved risk result as a consequence of repricing
01.01.- 31.12NOK Million 2002 2001 2002 2001 2001Interest result -1.077 -2.875 -2.131 -2.142 -535Risk result 119 10 163 112 238Administration result 2 -12 -67 -69 -102Change in security and premium rese -35 226 -233 111 -25Operating profit -991 -2.651 -2.268 -1.988 -425Can be drawn from additional statutory allocations *) 908 1.837 1.819 1.837 408Total result after tranferringfrom additional statutory allocations -83 -814 -449 -151 -17Transferred to policyholders 422Profit to owner SBL AS -83 -392 -449 -151 -17Profit to owner Storebrand Life Group -83 -391 -448 -149 -15 Other life insurance activities -16 -16 -48 -50 -96 Group profit life -99 -407 -496 -199 -111 *) At year-end
01.01.-30.09Q3
3Q 2002 10
� Equity market exposure 7%� Risk capital NOK 3.4 bn, equity loss absorption
buffer 40%� 0.90% costs as % of insurance funds� Transfer balance + NOK 279 mill. ytd
Rating fixed income
Life businessKey figures
Investment portfolio 3Q 20021
1) Actual exposure including derivative positions
Equity 7%
Money market 18%
Bonds 20%
Bonds HTM 38%
Real estate 10%
Loan 1%AAA
AA
AOtherBBB
3Q 2002 11
Life businessCompetitive situation
Booked return ytd SARs as % of customers’ funds as of Q3
0.8 %0.1 %
-0.8 %
-2.1 %
-3.8 %
0.9 %
-5.00 %
-2.50 %
0.00 %
2.50 %
Storeb
rand
KLP
Gjensid
ige Vital
Nordea
Liv
Spareb
ank1
0.2 % 0.1 % 0.0 % 0.0 %
2.6 %
0.0 %0.0 %
1.0 %
2.0 %
3.0 %
Storeb
rand
Gjensid
ige Vital
Spareb
ank1 KLP
Nordea
Liv
1) Internal estimate
1)
3Q 2002 12
Storebrand Bank Profit and loss
01.01.-31.12.NOK million 2002 2001 2002 2001 2001Interest income 260 263 833 773 1,059Interest expense 209 222 674 641 882Net interest income 51 40 159 132 176Non-interest income 43 64 153 204 256Non-interest expense 104 120 313 417 580Operating income -11 -16 -2 -81 -148Provision for credit losses -2 -1 -6 -4 -9Net income bank activities -13 -17 -8 -85 -157Net income Storebrand Finans 0 15 1 49 168Write-downs on long-term assets -3 -17 -13 -51 -54Net income before tax -16 -19 -19 -87 -43
Q3 01.01.-30.09.
3Q 2002 13
Storebrand Bank Profit and loss
� Increase in net interest income due to product price adjustments
01.01.-31.12.NOK million 2002 2001 2002 2001 2001Interest income 260 263 833 773 1,059Interest expense 209 222 674 641 882Net interest income 51 40 159 132 176Non-interest income 43 64 153 204 256Non-interest expense 104 120 313 417 580Operating income -11 -16 -2 -81 -148Provision for credit losses -2 -1 -6 -4 -9Net income bank activities -13 -17 -8 -85 -157Net income Storebrand Finans 0 15 1 49 168Write-downs on long-term assets -3 -17 -13 -51 -54Net income before tax -16 -19 -19 -87 -43
Q3 01.01.-30.09.
3Q 2002 14
Storebrand Bank Profit and loss
� Weak market for sales of savings products
01.01.-31.12.NOK million 2002 2001 2002 2001 2001Interest income 260 263 833 773 1,059Interest expense 209 222 674 641 882Net interest income 51 40 159 132 176Non-interest income 43 64 153 204 256Non-interest expense 104 120 313 417 580Operating income -11 -16 -2 -81 -148Provision for credit losses -2 -1 -6 -4 -9Net income bank activities -13 -17 -8 -85 -157Net income Storebrand Finans 0 15 1 49 168Write-downs on long-term assets -3 -17 -13 -51 -54Net income before tax -16 -19 -19 -87 -43
Q3 01.01.-30.09.
3Q 2002 15
Storebrand Bank Profit and loss
� Cost reductions as planned
01.01.-31.12.NOK million 2002 2001 2002 2001 2001Interest income 260 263 833 773 1,059Interest expense 209 222 674 641 882Net interest income 51 40 159 132 176Non-interest income 43 64 153 204 256Non-interest expense 104 120 313 417 580Operating income -11 -16 -2 -81 -148Provision for credit losses -2 -1 -6 -4 -9Net income bank activities -13 -17 -8 -85 -157Net income Storebrand Finans 0 15 1 49 168Write-downs on long-term assets -3 -17 -13 -51 -54Net income before tax -16 -19 -19 -87 -43
Q3 01.01.-30.09.
3Q 2002 16
60
100
140
180
Q1 01 Q2 01 Q3 01 Q4 01 Q1 02 Q2 02 Q3 02
Storebrand BankKey figures
� 20% growth in sales of risk products ytd� Stable development in sales of savings products� Reduction in commission income on existing portfolio
Key figures Operating cost development
0.09%0.05%0.08%Loan loss provisions
1.49%1.35%1.56%Net interestmargin (%)
11,03810,62511,655Loans(NOK million)
112%
Q3 2002
115%
Q3 2001 2001
134%Cost / Income
NOK million
3Q 2002 17
FinansbankenProfit and loss
01.01.-31.12NOK million 2002 2001 2002 2001 2001Net interest income 81.6 110.0 281.3 308.6 414.0 Non-interest income 9.3 15.9 39.6 42.2 74.3 Total income 90.9 125.9 320.9 350.8 488.3 Non-interest expenses -41.7 -58.2 -150.7 -155.6 -215.1 Operating income 49.2 67.7 170.2 195.2 273.2 Loan loss provisions -18.2 -26.8 -381.5 -259.8 -295.2 Write down on long-term assets -13.6 -17.9Profit before tax 17.4 40.9 -229.2 -64.6 -22.0 Finansbanken Forvaltning -2.7 -4.1 -36.6 -6.2 -10.7 Finansbanken Index 1.7 -1.0 2.5 13.2 15.8 Finansbanken Danmark -5.5 -8.9 -18.2 -4.6 -10.7 Other -2.1 -16.4 -47.7 -22.0 -46.1 Group 8.8 10.5 -329.2 -84.2 -73.7
3. Kvartal 01.01-30.09
3Q 2002 18
FinansbankenProfit and loss
� Net interest income negatively affected by reduced loan book volumes and high level of non accrual loans
� Other income impacted by financial market development
01.01.-31.12NOK million 2002 2001 2002 2001 2001Net interest income 81.6 110.0 281.3 308.6 414.0 Non-interest income 9.3 15.9 39.6 42.2 74.3 Total income 90.9 125.9 320.9 350.8 488.3 Non-interest expenses -41.7 -58.2 -150.7 -155.6 -215.1 Operating income 49.2 67.7 170.2 195.2 273.2 Loan loss provisions -18.2 -26.8 -381.5 -259.8 -295.2 Write down on long-term assets -13.6 -17.9Profit before tax 17.4 40.9 -229.2 -64.6 -22.0 Finansbanken Forvaltning -2.7 -4.1 -36.6 -6.2 -10.7 Finansbanken Index 1.7 -1.0 2.5 13.2 15.8 Finansbanken Danmark -5.5 -8.9 -18.2 -4.6 -10.7 Other -2.1 -16.4 -47.7 -22.0 -46.1 Group 8.8 10.5 -329.2 -84.2 -73.7
3. Kvartal 01.01-30.09
3Q 2002 19
FinansbankenProfit and loss
� Cost reductions as planned, number of man-years reduced from 223 to 186 in 2002
01.01.-31.12NOK million 2002 2001 2002 2001 2001Net interest income 81.6 110.0 281.3 308.6 414.0 Non-interest income 9.3 15.9 39.6 42.2 74.3 Total income 90.9 125.9 320.9 350.8 488.3 Non-interest expenses -41.7 -58.2 -150.7 -155.6 -215.1 Operating income 49.2 67.7 170.2 195.2 273.2 Loan loss provisions -18.2 -26.8 -381.5 -259.8 -295.2 Write down on long-term assets -13.6 -17.9Profit before tax 17.4 40.9 -229.2 -64.6 -22.0 Finansbanken Forvaltning -2.7 -4.1 -36.6 -6.2 -10.7 Finansbanken Index 1.7 -1.0 2.5 13.2 15.8 Finansbanken Danmark -5.5 -8.9 -18.2 -4.6 -10.7 Other -2.1 -16.4 -47.7 -22.0 -46.1 Group 8.8 10.5 -329.2 -84.2 -73.7
3. Kvartal 01.01-30.09
3Q 2002 20
FinansbankenProfit and loss
� Loan loss provisions of 0.46%
01.01.-31.12NOK million 2002 2001 2002 2001 2001Net interest income 81.6 110.0 281.3 308.6 414.0 Non-interest income 9.3 15.9 39.6 42.2 74.3 Total income 90.9 125.9 320.9 350.8 488.3 Non-interest expenses -41.7 -58.2 -150.7 -155.6 -215.1 Operating income 49.2 67.7 170.2 195.2 273.2 Loan loss provisions -18.2 -26.8 -381.5 -259.8 -295.2 Write down on long-term assets -13.6 -17.9Profit before tax 17.4 40.9 -229.2 -64.6 -22.0 Finansbanken Forvaltning -2.7 -4.1 -36.6 -6.2 -10.7 Finansbanken Index 1.7 -1.0 2.5 13.2 15.8 Finansbanken Danmark -5.5 -8.9 -18.2 -4.6 -10.7 Other -2.1 -16.4 -47.7 -22.0 -46.1 Group 8.8 10.5 -329.2 -84.2 -73.7
Non life activities other -61 -161 -86 -277 -318 31 -202
Other activities *) -269 -206 -101 -63 -174 -73 -139
Group profit -446 -1 223 -62 -196 -891 -154 -189
*) Including depreciation goodwill Finansbanken
2002 2001
3Q 2002 40
Group result- alternative setup
Full yearNOK mill. 2002* 2001 2001Net interest income (banking) 462 467 623Net financial income -354 -33 -154Other income (banking)** 192 276 352Other income/costs** 84 93 268Operating expenses** -922 -1094 -1370Group result excluding life, If and loan loss provisions -539 -291 -281Loan loss provisions (banking) -390 -237 -269Group result excluding life and If -929 -528 -550
Profit life (w/ profit sharing) -502 -178 -118Profit life (w/o profit sharing) 53 29 104Result other life companies -48 -50 -96
Sum result life business -496 -199 -111Group result excluding If -1425 -727 -661Share of If result -305 -507 -769Group profit -1730 -1234 -1430
* Explanations:Net interest income (banking): 159m in Storebrand Bank, 303m in Finansbanken
Net financial income: Hereof -401m in Storebrand ASA, 55m in Non-life (excl. If).
Other income (banking): Mainly distribution commissions (Storebrand Bank >150m)
Other income/costs: Includes asset management fees in SB Investments (after elimination of sold services
internally in the group), premium income/claims in non-life (excl. If), write down of non-current assets Operating expenses: Storebrand ASA -164m, Finansbanken -260m, Storebrand Bank -313m, includes also SB Investments
(after elimination of sold services), and other activitiesLoan loss provisions (banking): Finansbanken -385m, Storebrand Bank -5m
**Note: Group internal bought and sold services eliminated (excluding SB Bank)
1.1 - 30.9
3Q 2002 41
Storebrand GroupOther activities
01.01 -
NOK million 2002 2001 2002 2001 31.12.01
Storebrand ASA (ecl. group contributions)
Net financial income and expenses -225 -132 -401 -236 -400
Operating cost -39 -36 -164 -142 -200
Netting on consolidation / Other activities *) -5 -6 -11 -9 151
Total profit other activities -269 -174 -576 -387 -449
*) Including deprecation goodwill Finansbanken
01.01 - 30.09Q 3
3Q 2002 42
Storebrand ASA
3Q 2002 44
Storebrand ASABalance sheet
Share of Share of
NOK million 30.09.02 total assets 31.12.01 total assets
Real estate 63 1 % 63 1 %
Shares in subsidiaries 7 637 69 % 7 418 66 %
Investments 1 554 14 % 1 861 17 %
Other assets 1 890 17 % 1 831 16 %
Total assets 11 144 100 % 11 173 100 %
Equity 7 645 69 % 7 934 71 %
Bond loan 2 969 27 % 1 800 16 %
Intra-group debt 49 0 % 205 2 %
Other liabilities 481 4 % 1 234 11 %
Total liabilities and equity capital 11 144 100 % 11 173 100 %
3Q 2002 45
Storebrand ASAProfit and loss
01.01 - 30.09 01.01-31.12
NOK million 2002 2001 2002 2001 2001
Group contributions and transfers 0 0 0 0 672
Interest income 21 32 69 59 91
Realized/unrealized gains/losses on securities -168 -133 -272 -166 -132
Interest expense -78 -46 -197 -139 -191
Write down on other financial assets 0 0 0 0 -175
Other financial income/costs 1 15 -0 10 6
Net financial items -225 -132 -401 -236 -400
Total operating costs -39 -36 -164 -142 -200
Profit before tax -264 -168 -565 -378 71
Tax 113 47 269 106 -151
Profit after tax -151 -121 -296 -272 -80
Q 3
3Q 2002 46
Life Insurance
3Q 2002 48
Storebrand Life Group Highlights as per 30.09.2002� Storebrand Livsforsikring AS has – as the only private life
insurance company so far – obtained an exemption that enables it to offer a product similar to KLP’s to the public sector
� Municipalities and public sector companies that represent NOK 5.9 billion in total premium reserves are considering leaving KLP. Storebrand is positioned to take a considerable share of the customers who choose to transfer
� Sales of health and risk products show a positive development
� The government has proposed that private health/treatment insurance becomes tax deductible
� If the tax deduction is passed,a significantly higher number of employers will choose to insure their employees against the public health service’s waiting lists
3Q 2002 49
� Realised return on investments year to date of 0.93%
� Value adjusted return on investments year to date of 0.15%. If changes in the valuation reserve on hold to maturity assets are included, return on investments is 0.36% year to date
� Positive development in risk products without profit sharing
� Operating costs as % of customers’ assets was 0.90% as of Q3
� Net transfers for the overall life insurance business year to date is positive by NOK 279 millions. A large number of customer processes in the corporate market will be clarified before year end
Storebrand Life Group Highlights as per 30.09.2002 (cont.)
3Q 2002 50
Storebrand Group profit Life
01.01.- 31.12NOK mill. 2002 2001 2002 2001 2001Storebrand Life Group -83 -391 -448 -149 -15 Storebrand Fondsforsikring -10 -6 -31 -21 -25Other life insurance companies -6 -10 -17 -29 -71Group profit Life -99 -407 -496 -199 -111
01.01. - 30.09Q3
3Q 2002 51
Storebrand Life GroupSummary profit and loss account
Q3 01.01.- 31.12NOK Million 2002 2001 2002 2001 2001Premiums written 1.667 1,595 5.646 5.780 7,240Net transferes of premium reserve -554 -29 -253 -857 -1,222Net income of financial investments -50 -1,838 137 -1.932 1,561Claims paid -1.646 -1,624 -4.721 -5.157 -6,955Change in technical reserves -159 -470 -3.051 -1.908 -1,938Operating expenses Storebrand Livsforsikring AS -196 -208 -667 -652 -875Other income/costs -52 -77 -202 -259 -388Change in market price adjustment reserve 0 0 844 2.998 2,154Operating profit -990 -2.650 -2.267 -1.986 -422Can be drawn from additional statutoryallocations at year end 907 1.837 1.819 1.837 408Transferred to policyholders 0 -422 0 0 0Profit to owner Storebrand Life Group -83 -391 -448 -149 -15Other life insurance activities -16 -16 -48 -50 -96 Group profit life -99 -407 -496 -199 -111
01.01. - 30.09
3Q 2002 52
Storebrand Livsforsikring AS –satisfactory solidity
� Capital ratio of 16.5 %
� Risk capital ofNOK 3.4 billion
Risk capital as % of policyholders funds excl. additional statutory reserves
-1 %
0 %
1 %
2 %
3 %
4 %
5 %
6 %
7 %
2001 3Q02
5.8 billion 3.4 billion Profit carried forward
Core capital margin
Market value adj. res.
Additional statutory res.equivalent to one yearguarantieed interest
3Q 2002 53
Storebrand Livsforsikring ASDevelopment in return on capital
5.9 %3.6 %
8.7 %10.0 %
1.2 %
10.0 %
3.1 % 1.5 %0.2 %
15.7 %
10.5 %
3.5 %
1997 1998 1999 2000 2001 3Q02
Realized Value adjustedAnnualized
3Q 2002 54
Storebrand Livsforsikring ASUnrealised gains
30.09. 31.12. ChangeNOK Million 2002 2001 2002Shares -2,630 788 -3,418Fixed interest investments 608 56 552Short term investments -2,022 844 -2,866Bonds held to maturity 202 -26 228Total -1,820 818 -2,638
3Q 2002 55
Storebrand Life GroupPremium (excl. reserves transferred to the company)
• Reduced management fees due to fall in equity market
• Weak sales figures in retail market, satisfying institutional market
• Automation yields efficiency improvements. Number of Operations employees reduced from 68 as of 30.09.01 to 52 as of 30.09.02
3Q 2002 72
Life portfolio as of Q3 2002Return +0.08 %
• Positive total return of 1.37%
• Outperformance relative to index in 7out of 10 portfolios
• The differences in relative performance is mainly driven by stock selection
-1,29
-32,54
-36,45
-23,95
-42,64
-37,19
-26,47
4,64
-25,95
8,06
11,23
5,44
0,08
-24,97
-37,07
-43,68
-18,86
-35,84
5,89
4,12
11,20
5,1
-11,24
-27,87
Portefolio
Index
Return in %
+1,37
+4,67
+1,50
+0,12
-1,04
+5,10
+0,61
+0,45
-3,94
-0,03
+0,46
+14,7
Outperformance
Total
Equities Norway
Equities International
Equities Europe
Equities N-A
Equities Asia
Equities Global Finance
Bonds Norway
Bonds European Credit
Bonds International Gvmnt.
Money Market
Private Equity
3Q 2002 73
Storebrand FondeneMarket share
• Reduced total market share due to relatively high share of international equity funds (reduced value due to fall in equity market and the strengthening of the Norwegian krone)
09-2002 06-2002
�Total: 10.2 % 10.4 % (+0.1 percentage points in 2002)
• Over 80% market share since the beginning of the year (low volume)
• Appropriate product mix: global equity fund with capital protection, Storebrand Global med Sikring, net sales of NOK 120 mill in a net outflow market
0
2
4
6
8
10
12
14
1995 1996 1997 1998 1999 2000 2001 2Q2002
3Q2002
0
10
20
30
40
50
60
70
80
90Market share mutual fundsPercent
Market share net new
subscription (right axis)
Total market share
(left axis) 10,2%
5,5%
82%
3Q 2002 74
� 7 with 25 % 10 %� 6 with 21 % 20 %� 6 with 21 % 20 %� 7 with 25 % 25 %� 2 with 7 % 25 %
Storebrand
• Standard & Poor has measured relative performance and volatility on all funds for sale in Norway. Only 40 funds have afive-star ranking. Storebrand has 7 funds with a five-star ranking
Storebrand FondeneRating
Average 3,32 2,65
S&P
Standard & Poor rating – all funds:
�����
����
���
��
�
� 2 with 9,5 % 10,0 %� 5 with 23,8 % 22,5 %� 10 with 47,6 % 35,0 %� 4 with 19,1 % 22,5 %� 0 with 0,0 % 10,0 %
Storebrand
Morningstar Rating – equity funds:
Average 3,24 3,0
Morningstar
3Q 2002 75
Sales funds
• Net sales external assets of NOK 1,9 billion year to date.
• Still slow net new subscription in retail market. Net redemption in total market for equity funds of NOK –1.3 billion year to date
• Distribution strategy shows results. External distribution account for 80% of net fund sales in retail market (free funds and link)
01.01.-31.12.NOK million 2002 2001 2002 2001 2001Interest income 260 263 833 773 1,059Interest expense 209 222 674 641 882Net interest income 51 40 159 132 176Non-interest income 43 64 153 204 256Non-interest expense 104 120 313 417 580Operating income -11 -16 -2 -81 -148Provision for credit losses -2 -1 -6 -4 -9Net income bank activities -13 -17 -8 -85 -157Net income Storebrand Finans 0 15 1 49 168Write-downs on long-term assets -3 -17 -13 -51 -54Net income before tax -16 -19 -19 -87 -43
Q3 01.01.-30.09.
3Q 2002 80
Storebrand Bank GroupBalance Sheet
Share ShareNOK million 30.09.02 30.09.02 31.12.01 31.12.01Cash and due from banks 62 0 % 61 0 %Net loans 11.655 89 % 11.038 86 %Securities available for sale 951 7 % 1.112 9 %Premises, furniture and equipment, net 4 0 % 8 0 %Miscellaneous assets 385 3 % 567 4 %Total assets 13.057 100 % 12.785 100 %Loan from banks 1.020 8 % 300 2 %Certificate loans 3.982 30 % 4.848 38 %Interest-bearing deposits 6.706 51 % 6.479 51 %Miscellaneous liabilities 595 5 % 391 3 %Shareholders' equity 754 6 % 768 6 %Total liabilities and shareholders' equity 13.057 100 % 12.785 100 %
Finansbanken
3Q 2002 821
Main Features and value drivers3. quarter 2002
• Continued and accelerated build-down of shipping exposure• Stable volumes in other segments• High volume of non accruing loans reduces net interest income• Cost reductions according to plan• Moderate losses on loans and guarantees, within long term goals of 0.4 to 0.6 % of
gross lending• Write down of shares reduces result by NOK 14.4 million,
3Q - 02 3Q - 01 1.-3. Q - 02 1.-3- Q - 01 2001Net interest income 81.6 110.0 281.3 308.6 414.0Other operating income 9.3 15.9 39.6 42.2 74.3 Total income 90.9 125.9 320.9 350.8 488.3Operating expenses -41.7 -58.2 -150.7 -155.6 -215.1Operating profit before losses 49.2 67.7 170.2 195.2 273.2Loss provisions -18.2 -26.8 -381.5 -259.8 -295.2Write down on fixed assets/shares -13.6 -17.9Profit before tax 17.4 40.9 -229.2 -64.6 -22.0
Finansbanken Forvaltning -2.7 -4.1 -36.6 -6.2 -10.7 Finansbanken Index 1.7 -1.0 2.5 13.2 15.8 Finansbanken Danmark -5.5 -8.9 -18.2 -4.6 -10.7 Other -2.1 -16.4 -47.7 -22.0 -46.1 Finansbanken Group 8.8 10.5 -329.2 -84.2 -73.7
Profit and loss account3. quarter 2002
Profit and lossProfit and loss
3Q 2002 843
3Q - 02 3Q - 01 1.-3. Q - 02 1.-3- Q - 01 2001Net interest income 88.5 117.7 302.5 333.5 447.2 Other operating income 18.0 20.1 63.6 107.6 139.0 Total income 106.5 137.8 366.1 441.1 586.2 Operating expenses -64.3 -87.7 -259.4 -259.7 -357.8 Operating profit before losses 42.2 50.1 106.7 181.4 228.4
Loss provisions -19.0 -31.4 -384.5 -265.6 -302.1 Write down on fixed assets/shares -14.4 -51.4Profit before tax 8.8 18.7 -329.2 -84.2 -73.7
Profit and loss account3. quarter 2002
P&L Finansbanken GroupP&L Finansbanken Group
3Q 2002 854
Balance sheet30.09.02
(NOK mill.) 30/09/02%
30/09/02 31/12/01 % 31/12/01Central banks/Credit Institutions 605 3.52% 777 3.94%Netto utlån og fordringer på kunder 14,748 85.78% 16,691 84.71%Net lendings to customers 17 0.10% 59 0.30%Assets acquired 1,109 6.45% 1,365 6.93%Com. papers, bonds and other interest-earnin 3 0.02% 37 0.19%Shareholding in group companies 219 1.27% 203 1.03%Fixed assets/intangible 492 2.86% 571 2.90%Other assets 17,193 100.00% 19,703 100.00%Total assets 4,843 28.17% 4,051 20.56%Loans from credit institutions 5,686 33.07% 7,421 37.66%Deposits from and debt to customers 4,445 25.85% 5,588 28.36%Securitised Debt 332 1.93% 733 3.72%Other liabilities 529 3.08% 544 2.76%Subordinated loan capital 1,359 7.91% 1,366 6.93%Total equity 17,193 100.00% 19,703 100.00%Total liability and equity
3Q 2002 865
Reduction of shipping exposureTotal lending distributed by sector
0.8
2.9 2.8
4.2
6.2
1.3
3.13.3 3.2
6.4
1.9
2.73.0
1.9
6.2
Othe r bus ines ses( law yers , consutants
e tc.)
Financial inve s tors Private individuals Shipping com panie s Real e s tate com panie s
2000 2001 3. Quarte r
Gross lending:2000: NOK 16.9 bn2001: NOK 17.3 bn3Q-2002: NOK 15.6 bn
Gross lending:2000: NOK 16.9 bn2001: NOK 17.3 bn3Q-2002: NOK 15.6 bn
(NOK bn)
3Q 2002 878
Finansbanken GroupLoss provisions - 30.09.2002
Net loss provisions (P&L)(3. quarter 2002)
Classified loans and loss provisions
NOK 1,62 mrd (34,2%)
NOK 0,51 mrd
(44,5%)
0.49
1.07
0.55
0.28
0.30
0.23
0.10
0.23
0.55
0.34
Other lossexposed 1)
Lossexpoese
Real estate
Lossexposedshipping
Total lossexposed
Grosslending
Net lending Specif ied loss provisionsUnspecif ied loss provisions
4.8
0
-4.4
18.9
18.5
Unspec.
Other 1)
Real estate
Shipping
Total
Specified loss provisionsUnspecified loss provisions
NOK 0,39 mrd
(24,5%)
NOK 0,72 mrd
(31,7%)
1) including private, fin investments, other business2) Defaulted loans, but that are not loss exposed or non-accruals, are not included
NOK 15,64 mrd (5,7%)14,75
2)
3Q 2002 887
174
517
1041
80
555
555
337
375549
475
0
500
1000
1500
2000
2500
3000
Not defaulte d loansw ith loss
provisions
Defaulte d loansintere s t not
accrue d, w ith lossprovis ions
Tot al los s expose d De faluted, inte re stnot accrued, no loss
provisions
De faluted, inte res taccrued
Total lossprovis ions
Loss exposed loans
Specified loss provisionsUnspecified loss provisions
1,103850
253
(NOK mill)Loss exposed Loss exposed Exposed
interestsExposed interests
31%
56% 50%
891
Not loss-exposed
Not loss-exposed
3Q 2002 899
Key figures - Finansbanken Group3. quarter - 2002
Gross lending to customers
Deposit from customers
Total assets
Interest margin (as % of total assets)
Cost/Income Group
Cost income parent bank
Other income/total income
Operating profit before losses
Core capital ratio1)
ROE before losses
ROE after taxes
Employees
20013. quarter -02
17,317
7,421
19,702
2.21 %
61.1%
44.1%
23.7 %
228
7.37 %
16.7 %
-4.84 %
223
15,636
5,686
17,193
2.00 %
60.4 %
45.9 %
16.9 %
42.3
7.88 %
14.3 %
2.00 %
186
3. quarter -01
17,571
7,689
19,956
2.34 %
63.6 %
46.3 %
14.6 %
18.7
7.08 %
14.7 %
3.1 %
223
YTD -02
15,636
5,686
17,193
2.15 %
70.9 %
47.0 %
17.4 %
106.7
7.82 %
10.9 %
-24.8 %
186
YTD -01
17,571
7,689
19,956
2.18 %
58.9 %
44.4 %
24.4 %
181.5
7.88 %
17.8 %
-6.7 %
223
3Q 2002 9010
Key Figures - Finansbanken Group
Gross lending to customers
Deposit from customers
Total assets
Interest margin (as % of total assets)
Cost/Income Group
Cost income parent bank
Other income/total income
Operating profit before losses
Core capital ratio1)
ROE before losses
ROE after taxes
Employees
3. quarter 4. quarter
17,571
7,689
19,956
2.38 %
63.7 %
46.3 %
14.6 %
50.1
7.8 %
14.7 %
3.1 %
223
17,317
7,421
19,703
2.30 %
67.7 %
43.3 %
21.7 %
46.9
7.37 %
13.6 %
0.9 %
223
1. quarter
16,898
6,523
19,141
2.34 %
60.0 %
37.8 %
11.1 %
51.9
7.91 %
15.2 %
4.3 %
210
2001 2002
2. quarter
16,591
7,323
18,177
2.10 %
94.1 %
59.6 %
20.9 %
7.4
6.36 %
2.2%
-68.0 %
186
3. quarter
15,636
5,686
17,193
2.00 %
60.4 %
45.9 %
16.9 %
42.3
7.88 %
14.3 %
2.00 %
186
3Q 2002 9111
Finansbanken GroupCapital Adequacy
(NOK mill) 31/12/01 30/09/02 ChangeCore capital 1,280.3 1,183.0 -97.3 Subordinated loan capital 542.4 528.8 -13.6 Total capital 1,822.7 1,711.8 -110.9
Assets, other portfolios 16,084.2 15,237.2 -847.1 Off-balance sheet items, other portfolios 592.0 589.4 -2.6 Foreign exchange risk and risk in trading portfoli 127.9 84.8 -43.2 Deduction for loss provisions, exch. rate reg. ac -624.4 -889.9 -265.5 Risk-weighted basis for calculation 16,179.8 15,021.4 -1,158.4
Capital ratio 11.27% 11.40% 0.13%Surplus capital 528.3 510.1 -18.3 Core capital ratio 7.91 % 7.88 % -0.04 %
3Q 2002 92
Storebrand non-life
3Q 2002 94
Main features Non Life 30.09.02� Operating profit in Q3 was minus NOK 61 mill. (minus NOK 319 mill.) and
year to date minus NOK 308 mill. (minus NOK 490 mill.). The negative resultis due to weak results in If and Fair
� Net result from If is minus NOK -56 mill. in Q3 (minus NOK 320 mill.) and year to date minus NOK 306 mill. (minus NOK 507 mill.). The insurance result is positiv in Q3. Combined ratio in Q3 was 103.6% (107.5% proforma) and year to date 106.3% (108.7%). Expense ratio in Q3 was 20.3% (19.5% proforma) and year to date 21.4% (21.4%)
� Under Norwegian GAAP Storebrand’s share of surplus values in bonds are booked, in Q3 this amouted to NOK 97 mill.
� Storebrand’s share of result from Fair in Q3 was minus NOK 5 mill. (minus NOK 14 mill) and year to date minus NOK 30 mill. (minus NOK 40 mill.). Salesresults has increased with 89% compared with Q3 last year
� Operating result in Q3 in Oslo Re was minus NOK 5 mill. ( NOK 11 mill.) and year to date NOK 11 mill. ( NOK 2 mill.)
Numbers in ( ) is 30.09.2001
3Q 2002 95
Profit and loss account Skade Group
01.01. - 31.12NOK million 2002 2001 2002 2001 2001SB Skadeforsikring ex If 5 3 16 55 6422,47 % share of result If -56 -320 -306 -507 -769Storebrand Skadeforsikring AS -51 -317 -289 -452 -705Oslo Re -5 11 11 2 0Operating result -56 -305 -278 -450 -705Fair -5 -14 -30 -40 -62Profit from non-life business -61 -319 -308 -490 -767