SSB Boligkreditt AS. Investor Presentation 1Q 2017

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1 SSB Boligkreditt AS Investor Presentation 1Q 2017

2 Characteristics of the Cover Pool Loans originated by SSB Boligkreditt AS Cover pool mortgages MNOK 6,688 Substitute assets MNOK 328 Total cover pool MNOK 7,036 Number of loans 4,601 Average loan balance MNOK 1,454 Type of loans 100% Norwegian residential mortgages Type of mortgages Flexible: 31 % Repayment: 69 % Rate type Floating rate: 100% Geographic distribution Mainly Rogaland, some across Norway Weighted average LTV 51,3 % Weighted average seasoning 5,3 years LCR 1208 % NSFR 136 %

3 SSB Boligkreditt Rating by Fitch Fitch has a AAA rating on SSB Boligkreditt covered bond program. The breakeven 'AAA' OC for SSBB is 14.0%. SSB Boligkreditt has committed to an OC-level of 14% OC-level as of 4Q2016: 20,5 % The anchor of the covered bond programme is the rating of Sandnes Sparebank. The rating is sensitive to changes in the anchor rating. Fitch affirmed Sandnes Sparebank s rating at BBB and stable outlook in October 2016.

4 Pool charachteristics Total cover pool size: BNOK 7,04 Stable volumes due to implemented transfer limits in Sandnes Sparebank: Maximum of: 50 % of the Groups retail loans or 35 % of the Groups total loan portfolio 241 MNOK in bucket > 5 MNOK No significant changes since previous quarter

5 Type of mortgages No significant changes last quarter. Mix of down payment and credit facilities at reasonable levels.

6 Distribution of the Cover Pool

7 Conservative and High Quality Pool Weighted average LTV: 51 % 58% of the cover pool has an LTV < 60% Weighted average seasoning: 5,3 years 62 % of the cover pool is > 3 year seasoned

8 Unemployment and Housing prices Unemployment: Housing prices: Source: Nav Source: Boligprisstatistikk Slight decrease in unemployment during first quarter The unemployment rate in Rogaland is the highest in Norway. Unemployment is still at low levels. Decrease in Housing prices in Rogaland last few years. Slight increase in 1Q17 The number of days it takes to sell a house in Norway has gone from 40 days by end of Q to 34 days by end of Q For Rogaland the numbers are 74 days to 72 days respectively. Housing prices in Rogaland seem to have stabilized. 8

9 Conservative and High Quality Pool The general increase in the LTV bucket has stabilized at a higher level the last two years due to decrease in the housing prices in the local market.

Conservative and High Quality Pool Committed OC-level: 14% Substitute assets can consist of the following exposures to financial institutions: Deposits with a maturity of less than 100 days and a

10 Conservative and High Quality Pool Committed OC-level: 14% Substitute assets can consist of the following exposures to financial institutions: Deposits with a maturity of less than 100 days and a minimum rating of A-. Other investments with a minimum rating of AA-. Liquidity Coverage Ratio: 1208% Cover Pool 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 Residential Mortgages Substitute assets Bank Deposit Bonds and Certificates Sum Overcollateralization 63,07 % 41,80 % 52,69 % 45,05 % 40,25 % 38,68 % 32,32 % 22,37 % 30,36 % 31,53 % 30,06 % 19,21 % 20,53 %

11 Conservative and High Quality Pool Low level of impaired loans in the mortgage portfolio Non performing loans will be transferred back to Sandnes Sparebank A loan is regarded as nonperforming or in default when the customer has failed to pay an installment within 90 days of the due date, or when an overdraft of a credit of line has not been covered within 90 days after being overdrawn. The non-performing loan will be subject to individual valuation at the time of transfer. No Non-performing loans as of

12 Issued Bonds Issuer SSB Boligkreditt SSB Boligkreditt SSB Boligkreditt SSB Boligkreditt SSB Boligkreditt SSB Boligkreditt ISIN NO NO NO NO NO NO Ticker SSBB07 SSBB08 SSBB09 SSBB10 SSBB11 SSBB12 Nominal MNOK MNOK MNOK 1000 MNOK MNOK 600 MNOK 225 Disb. Date Maturity Ext. Maturity Coupon Nibor + 50bp Nibor + 48bp 3,10 % Nibor + 29bp Nibor + 34bp 2,82 % SSB Boligkreditt has issued 5,825 MNOK in Covered Bonds SSB Boligkreditt buys back short dated maturities. SSBB06 Matured during 1Q17. Net maturity was 50 MNOK. There were no holdings of own bonds at end 1Q17. Consequently net amount in the market was 5,825 MNOK at end 1Q17. Financing will be secured by issuing covered bonds in Norway and in a longer perspective, considering international issues. Covered bonds issued by SSB Boligkreditt are assigned a rating of AAA by Fitch.

13 Policies and limits - Cover pool Loan to value (LTV) Substitute assets Maximum 20 %. Overcollaterization Minimum 14 % LTV below 75 % based on a valuation not more than 3 months old. LTV for flexible loans is measured towards granted limit before transferal. Within the pool LTV is measured by drawn amount. Type of loans Only residential mortgages Only NOK No loans in default No loans with identified losses No flexible loans without maturity date Flexible or repayment loans Fixed or floating interest rates Detached houses, row houses, housing cooperatives, apartments. Security Object 1 st lien. Multiple securities allowed (mainly single securities). Norwegian residential properties Valuation from Eiendomsverdi Quarterly valuations

14 Liquidity The cover pool consists of residential mortgages and substitute liquid assets. Substitute Assets included in the cover pool can consist of: Deposits held in other financial institutions: Minimum rating of A- Time to maturity < 100 days Certificates or Bonds: Minimum rating of AA- Time to maturity < 10 years SSBB has defined a limit for how long the company is able to operate without supply of additional liquidity to the cover pool in a defined stress-scenario. This limit is set to 6 months, which is applied in the stress-scenarios. In addition, substitute assets shall cover at least covered bond interest payments over the next three months, plus a buffer to cover senior expenses and potential interest-rate movements. SSBB has a credit facility from Sandnes Sparebank to cover all covered bond maturities next 12 months. 14

SSB Boligkreditt AS. Investor Presentation 3Q 2015

SSB Boligkreditt AS. Investor Presentation 3Q 2015 SSB Boligkreditt AS Investor Presentation 3Q 2015 Characteristics of the Cover Pool Loans originated by SSB Boligkreditt AS Cover pool mortgages MNOK 6,884 Substitute assets MNOK 314 Total cover pool MNOK