Sandnes Sparebank. 4 th Quarter Results 2016 Oslo, 15 February 2016

Transcription

1 Sandnes Sparebank 4 th Quarter Results 2016 Oslo, 15 February 2016

2 Contents About Sandnes Sparebank Macro Economic Conditions Financial Highlights Loan Portfolio Overview Capital, Liquidity and Funding 2

3 Sandnes Sparebank at a Glance 2 nd largest savings bank in Rogaland proven operations established client base Market Organization Office locations Local relationships and close proximity to key markets are essential traits in any ambitious savings bank SADG covers 9 municipalities in Rogaland: Gjesdal, Time, Klepp, Sola, Sandnes, Stavanger, Randaberg, Hå and Bjerkreim SSB Boligkreditt was established in 2008, and is a fully owned subsidiary of SADG. The company's main purpose is to secure long term funding for the bank from issuance of covered bonds secured on residential mortgages I II Sandnes: Rådhusgata 3 Stavanger: Haakon VIIs gate 7 Key markets measure almost 300,000 people and 26,000 businesses SADG also owns 60% of the real estate agent AKTIV Eiendomsmegling Jæren III Oslo: Dronning Mauds gate 10 STAVANGER 60% 100% Strong presence in 9 municipalities in Rogaland in Western Norway AKTIV Eiendomsmegling Jæren AS SSB Boligkreditt AS SANDNES OSLO 3

4 Sandnes Sparebank participating in THE future payment solution Strategic cooperation between Norwegian banks on one single common payment solution 4

5 Contents About Sandnes Sparebank Macro Economic Conditions Financial Highlights Loan Portfolio Overview Capital, Liquidity and Funding 5

6 mar. 13 jun. 13 sep. 13 des. 13 mar. 14 jun. 14 sep. 14 des. 14 mar. 15 jun. 15 sep. 15 des. 15 mar. 16 jun. 16 sep. 16 des. 16 des. 12 mar. 13 jun. 13 sep. 13 des. 13 mar. 14 jun. 14 sep. 14 des. 14 mar. 15 jun. 15 sep. 15 des. 15 mar. 16 jun. 16 sep. 16 des. 16 des. 12 mar. 13 jun. 13 sep. 13 des. 13 mar. 14 jun. 14 sep. 14 des. 14 mar. 15 jun. 15 sep. 15 des. 15 mar. 16 jun. 16 sep. 16 des. 16 des. 12 mar. 13 jun. 13 sep. 13 des. 13 mar. 14 jun. 14 sep. 14 des. 14 mar. 15 jun. 15 sep. 15 des. 15 mar. 16 jun. 16 sep. 16 des. 16 Real Estate Market and Unemployment Signs of stabilisation in real estate Slight increase in umenployment last quarter Residential Property Prices, Rogaland Residential Property Prices, Norway , ,55 Haugesund Rogaland ex. Stav, Sand, Haug ,41 124,38 122,94 Norge ,04 97,76 Rogaland Sandnes 110 Trondheim Bergen Stavanger Oslo 95 94,29 Stavanger , ,80 Unemployment Rate Avgerage Length of Sales Period (no. Days) , ,80 Rogaland Norge Rogaland ex stavanger Stavanger Norge Source: Eiendomsverdi, 6

7 Oil Price, Oil Investments and Commercial Real Estate Oil price is up Sideways movement in available office space and rent levels Oil Price Rental Prices Office Space (NOK/m 2 ) Reuters 55,58 Stavanger-CBD Stavanger-Oil Data: Akershus EIendom Oil Investments Available Office Space Stavanger Oil Data: Norges Bank ,0 % 10,0 % 8,0 % 6,0 % Data: Akershus Eiendom 9,2 % 100 4,0 % 50 2,0 % 0 0,0 % Fields in production Exploration Field development Shutdown and removal 7

8 Contents About Sandnes Sparebank Macro Economic Conditions Financial Highlights Loan Portfolio Overview Capital, Liquidity and Funding 8

9 Q Figures Strong solidity and stable operations 1 Profits before taxes are MNOK 41.2 (-149.5) 2 Net interest income amount to MNOK (108.5), contributing to an interest margin at 1.70 % (1.57 %) Had the annual fee related to the national deposit insurance fund been distributed across 2016, and not been taken as a one-off cost in Q1, the net interest margin would have been 1.66 % 3 Total operating costs amount to 78.2 (97.6) Q Mark-to-market effects on financial investments at MNOK 5.9 (-8.7) Losses and write downs of MNOK 24.7 (172.2 ), of which collective amount to MNOK 7.1 (9.4) Return on equity 6.4 % (-27.9 %) before taxes, and 4.1 % (-19.5 %) after tax 7 Deposit to loan ratio is 50.8 % (50.0 %) at group level, and 73.6 % (72.1 %) for the parent bank 8 The Board of Directors proposes a dividend of NOK 1.25 per equity capital certificate (ECC), equal to 26 % of earnings per ECC 9 Tier 1 ratio at 17.5 % (13.8 %) and CET 1 at 15.6 % (12.1 %) 9

10 Financial Results Strengthened solidity stable operations strong cost control Highlights Results Solid underlying operations Positive effects from entering the Eika Alliance After tax ROE of 4.1% last quarter and 7.3% for 2016 YTD-earnings of NOK 4.8 per ECC The Board of Directors proposes a dividend of NOK 1.25 per equity capital certificate (ECC), equal to 26 % of earnings per ECC. Figures in thousand NOK 3Q16 4Q16 4Q Net interest income Net commission income Other operating income Total other operating income Total other operation costs Operating profit before tax and losses Losses on lending and guarantees Operating profit before tax Tax Net after tax profit business for sale Operating profit after tax Earnings per equity capital certificate 1,7 0,7-3,0 4,8-2,2 Return on equity after tax 10,3 % 4,1 % -19,5 % 7,3 % -3,5 % 10

11 Underlying Operations Positive development Highlights Underlying Operations Profit before taxes amount to MNOK 41 last quarter and MNOK 218 YTD Q was influenced by two separate loss-events as well as one-off costs related to conversion of banking systems Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 Cost-to-income ratio of 54 % in 4Q-2016 and 47% for the year as a whole -149 Cost-to-Income Ratio % 57% 68% 62% 67% 88% 79% 97% 82% 83% 81% 65% 70% 56% 37% 40% 49% 54% 0,90 0,80 0,70 0,60 0,50 0,40 0,30 0,20 0,10 0 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 Cost-to-income ratio Cost to Income 12mth avg - 11

12 Net Interest Income Net interest margin still solid Highlights Net Interest Income Relatively flat development in margins last quarter Net interest margin at 1.70% last quarter Had the annual fee related to the national deposit insurance fund been distributed across 2016, and not been taken as a one-off cost in Q1, the net interest margin would have been 1.66% 1,71% 1,62% 1,50% 1,46% 1,57% 1,46% 1,58 % 1,74% 1,69 % 1,68% 1,64 % 1,70% 1,66 % Competition continues to be strong in local markets 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 Interest margin % av. total assets Net interest margin w/deposit insurance fee distibuted on

13 Development in Deposits and Lending Volumes Highlights Deposits 14,3 14,1 14,3 13,8 Lending growth of -2.1% last quarter 11,4 11,2 11,0 10,6 10,9 12 month growth of -5.9 % YOY Retail lending nearly unchanged last quarter, corporate decreased by 5 % 7,2 7,1 7,1 6,8 4,6 4,5 4,1 4,3 4,5 Deposits increased by 2.7% last quarter, but down 4.4 % last 12 months Deposits-to-loan ratio at 50.8% for the group and 73.6% for the parent bank 6,9 6,7 7,0 6,7 6,6 6,3 6,3 6,0 6,0 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 Deposits Retail Deposits Corporate Lending 23,9 23,9 23,9 23,7 22,8 22,5 22,0 21,9 21,5 8,2 8,3 8,2 8,1 7,4 7,6 7,4 7,5 7,1 15,7 15,6 15,7 15,5 15,4 14,9 14,6 14,4 14,4 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 Lending Retail Lending Corporate 13

14 Other Income Positive development in net commission income Highlights Total other income (NOKm) 84,4 Mark-to-market effects on financial instruments amounted to MNOK 5.9 in Q ,6 18,0 45,1 8,5 10,9 48,9 30,2 Income from subsidiaries was MNOK 6.4 last quarter, nearly unchanged Stable development in net commission income, MNOK 15.5 last quarter -17,6 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 Other operating income Change in value currency and securities Net commission income Dividend and income securities (variable yield) Net commission income (NOKm) Sale of Eika products developing according to plan. Positive trend 13,4 13,0 13,6 12,5 11,8 14,4 16,9 15,2 15,5 Significant potential for future earnings from distribution of insurance and investment products 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 14

15 Development in Commissions Savings and investments Insurance Transactions Comments Commission income Fees from guarantees stable at approx. MNOK 3 per quarter 80, 0 72,0 70, 0 Commissions from transaction services amounted to MNOK 11.7 in Q4, in line with previous quarters of , 0 50, 0 59,0 - Contribution from new price structure of MNOK 12 compared to , 0 30, 0 Income from transactions in financial instruments is slowly trending downwards and amount to MNOK 0,8 last quarter 20, 0 10, 0 16,9 19,2 17,7 18,2 Commissions from insurance sales is increasing quarter by quarter, and was MNOK 2,5 in Q4 High level of activity within the savings, investments and insurance segment 0, Q1-16 Q2-16 Q3-16 Q4-16 Transaction Services Guarantees Financial Instruments (asset mgt. and sales) Insurance Sales Product Distribution 15

16 Development in Costs Strong cost control Highlights 138 Operating Costs Total operating costs last quarter in line with expectations Total YTD operating costs at MNOK 288 was in line with communicated goal of MNOK Strong focus on costs. Expectations of stability going forward Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 Employee costs Other operation costs Depriciations and impairments Development in number of man-years Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 16

17 ,05 % 2,88 % 2,66 % 2,67 % 2,51 % 3,06 % 2,02 % 1,96 % 2,01 % 3,59 % 3,76 % 3,88 % 3,56 % 2,32 % 2,10 % 2,17 % 2,46 % 2,24 % Non-performing Loans and Impairments Stable development YTD Gross non-perf. loans and impairments Net non-perf. loans and impairments Collective and individual writedowns 1,49% 1,62% 1,70% 1,75% 1,36% 0,58% 0,62% 0,65% 0,74% 0,29 % 0,29 % 0,30 % 0,32 % 0,37 % 0,40 % 0,44 % 0,47 % 0,51 % Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 Doubtful loans Non-performing loans Non-performing and doubtful loans in % of gross lending 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 Net doutbful loans Non-performing loans Net non-performing and doubtful loans in % of net lending Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 Individual write-downs Collective write-downs Individual write-downs in % of gross lending Coll. write-downs in % lending after ind. wr.-d. Only marginal changes in non-performing loans last quarter Reduction in doubtful loans is related to realisation of losses on loans previously subject to individual write-downs Current write-down ratio is high total write-downs are 52% of non-performing and doubtul loans 17

18 Contents About Sandnes Sparebank Macro Economic Conditions Financial Highlights Loan Portfolio Overview Capital, Liquidity and Funding 18

19 Diversified Loan Portfolio 67% of lending to retail segment Retail vs. corporate lending Geographical distribution Net lending Net lending 0,4 % 14% 4% 67 % 33 % 82% Lending Retail Lending Corporate Rogaland Oslo / Akershus Rest of Norway International Net lending to customers NOK 21.5bn No direct exposure to shipping, supply or seismic sector No material exposure to hotels and restaurants in Rogaland The bank has an in-depth knowledge of both key markets and corresponding clients (83% of the portfolio located in Rogaland) Main focus is Nord-Jæren in Rogaland comprising of the municipalities: Gjesdal, Time, Klepp, Sola, Sandnes, Stavanger and Randaberg Two advisors are placed in Oslo to service and monitor Oslo-based clients All credits are granted from Sandnes 19

20 Corporate Loan Book Some reduction in volume in 2016 Stable composition Corporate lending by sector Details on lending to real estate Net lending Net exposure 0,3 % 3,9 % 3,6 % 8,9 % 0,6 % 4,0 % 12,6 % 7,4 % 12,8 % 53,5 % 9,9 % 65,6 % 17,0 % Commercial real estate Buidling & construction Farming Oil & gas Public and private services Retail services Other* Commercial rental Housing rental Housing building projects Commercial building building projects Land Other Commercial real estate is a large portion of the loan book. but has been reduced in recent years No new large exposures in real estate in recent years Diversified exposure within real estate Note(*): other sectors = ( industrial + hotel & restaurant + transportation)) 20

21 Retail Loan Book Details on LTV s LTV distribution (whole loan basis) 64 % of volume with LTV below 75% 42% Unsecured equals MNOK 57. Avg. loan balance is NOK 7,000 per counterparty Avg. loan balance of loans with LTV > 100% is MNOK % 17% 13% WA LTV stable around 65% 5% 0,4 % < 60% 60-75% 75-85% % >100% Unsecured Quarterly update of real estate prices using Eiendomsverdi, the national AVM-provider 80,0 % WA LTV 70,0 % 64,8 % 64,3 % 64,9 % 65,0 % 60,0 % 50,0 % 40,0 % 30,0 % 20,0 % 1Q16 2Q16 3Q16 4Q16 21

22 Contents About Sandnes Sparebank Macro Economic Conditions Financial Highlights Loan Portfolio Overview Capital, Liquidity and Funding 22

23 Improved Capitalisation in 2016 Satisfies all regulatory requirements with a healthy margin CET 1 Leverage Ratio (LR) Comments Reported CET1 at 15.6 % EOY 2016 Regulatory Pilar II requirement set at 2.5 % 14,7 % 15,2 % 15,8 % 15,6 % -0,20% SADG has a CET1 target of minimum 15.2 % at year-end 2017 ( Then bank satisfies all regulatory capital requirements. Current level allows for moderate and profitable growth 9,96% 9,85% -0,11% 6,0 % Target Target CET1 ratio pre dividend Proposed dividend Reported CET1 as per Expected min. regulatory level of LR Leverage ratio pre dividend Proposed dividend Reported LR as per

24 ,9 % 59,1 % 59,8 % 58,1 % 50,0 % 49,7 % 49,8 % 48,6 % 50,8 % Funding Composition Well diversified Funding Sources Maturity Profile Wholesale Funding (MNOK) Highlights Well diversified 46% 25% Satisfactory refinancing needs in ,8 % 0,1 % 26% More concentrated in 2018 OMF Seniorgjeld Tilleggskapital Tidsinnskudd Innskudd Subordinate loans Bonds and certificates Covered bonds WA duration on senior unsecured depth of 2.7 yrs Deposits Deposits by Size Deposit-to-Loan Ratio Last refinancing (01/2017) at NBP 5 pricing-curve 47,7 % WA duration on covered bonds of 3.7 yrs 55 % 45 % 37,2 % All numbers are net figures 15,0 % Deposit to loan ratio within strategy Deposits Retail Deposits Corporate <NOK2m NOK2-50m >NOK50m 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 24

25 NSFR LCR Funding and Liquidity Sound liquidity Compliant with regulations Liquidity Indicators Liquidity Reserve (MNOK) Comments 193 % 137 % Financial institutions Domestic Industries Foreign Covered Bonds Q Liquidity Portfolio Break Down Domestic Gov't Bills Domestic Municipalities (RW20) Foreign Municipalities (RW0) K16 1K17 2K17 3K17 4K17 1K18 2K18 3K18 4K18 Mortgage loans available for Covered Bonds Liquidity facility Norwegian Central Bank Free Liquidity Liquidity buffer Rating Distribution of Liquidity Portfolio 59% Compliant with current and future CRD IV requirements Gradually introduction of LCR, 100% in 2018 Expect formal NSFR requirement over 100% 18 months of operations without new funding (internal limit of 15 months) Less than 5 % of portfolio is considered illiquid Liquidity portfolio of MNOK 2,960 at YE-2016 (excl. cash) 87 % rated minimum A Fixed income only, ie. no equity investments Gov't Guaranteed 26% Domestic Covered Bonds 2% 9% 3% 0% AAA AA A BBB BB Under BB 25

26 Dividend for 2016 Dividend payout ratio in line with guidance Distribution of profits (MNOK) 2016 Bank level net profit after tax, mother bank (dividend basis) 205,0 Transferred to/from other funds 7,1 Total available for distribution 212,1 Kommentarer Earnings are distibuted between the ECC-owners and the primary capital accordring to their relative ownership share in the bank Distribution to ECC-owners Share of earnings 65,3% Profits distributed (MNOK) Proposed dividend per ECC (NOK) 1.25 Total dividends (MNOK) 28,9 Earnings per ECC (NOK) 4,8 Dividend payout ratio 26% To Equalisation Reserve (MNOK) 109,7 Distribution to primary capital Share of profits 34,7% Profits distributed (MNOK) 73.5 Transferred to Gift Fund (MNOK) 15.2 To Basic Fund (MNOK) 58.3 Dividend payout ratio of 26% is in the upper range of previously communicated interval between 0 % and 30 % Ex-date: 31 March Payment Date: 11 April ECC ownership share after distribution 64,9% Oppsummering 2016 Total retained to increase solidity (Equalisation and Basic Fund) 168,0 Total distributed in the form of dividends and transfer to Gift Fund 44,1 26

27 Estimates 2017 I II III IV Total operating costs Total write-downs Dividend payout ratio CET 1 < 290 NOKm NOKm % > 15.2 % 27

28 Sandnes: Rådhusgata 3 Stavanger: Haakon VIIs gate 7 Oslo: Dronning Mauds gate 10 Switch Board:

29 Appendices 29

30 des. 15 jan. 16 feb. 16 mar. 16 apr. 16 mai. 16 jun. 16 jul. 16 aug. 16 sep. 16 okt. 16 nov. 16 des. 16 jan. 17 Equity Capital Certificate Price Development Ownership SADG: Price and Volume on OSE ECC-ownership Pris SADG VOLUME SADG OSEEX (rebased) OSEBX (rebased) Volum largest owners of equity certificates as at No. of equity certificates Share 1. Sparebank 1 SR-Bank C/O SR-Investering ,14 % 2. Merrill Lynch ,86 % 3. Clipper AS C/O Inge Steensland ,73 % 4. Eika Utbytte VPF C/O Eika Kapitalforvaltning ,93 % 5. Espedal & Co AS ,85 % 6. Wenaasgruppen AS ,82 % 7. Bergen Kommunale Pensjonskasse ,90 % 8. Sparebanken Vest Aksjer ,85 % 9. Skagenkaien Holding AS ,52 % 10. Nordhaug Invest AS ,38 % 11. Wimoh Invest AS ,14 % 12. Kristian Falnes AS ,09 % 13. Profond AS C/O A.G. Regnskap AS ,04 % 14. Jal Holding AS ,88 % 15. Mertoun Capital AS ,87 % 16. Portia AS ,87 % 17. Herfo Finans AS ,83 % 18. Tebina Holding AS ,83 % 19. Innovemus AS V/Oskar Bakkevig ,80 % 20. Madland Kjell ,77 % Sum ,12 % 30

31 -0,66 % -0,64 % -0,61 % -0,53 % -0,43 % -0,59 % -0,49 % -0,55 % 0,00 % 0,12 % 0,09 % 0,14 % -0,13 % -0,16 % 0,13 % 0,29 % 0,20 % 0,27 % 2,39 % 2,33 % 2,35 % 2,02 % 2,08 % 1,96 % 1,95 % 2,11 % 1,98 % 3,74 % 3,50 % 3,37 % 3,25 % 3,13 % 3,02 % 3,18 % 3,05 % 3,86 % Details on Interest Margins Improved deposit margins strengthens the net interest margin Highlights Lending Margins Significant improvement in net margin YOY Increased deposit margins outweigh weaker lending margins 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 Lending margin retail Lending margin corporate Net Interest Margin Deposit Margins 1,62% 1,71% 1,62% 1,57% 1,58 % 1,74% 1,69 % 1,68% 1,64 % 1% 0% 1,50% 1,46% 1,46% 0% 0% 0% 0% -1% -1% 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 Interest margin % av. total assets Net interest margin w/deposit insurance fee distibuted on % 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 Deposit margin retail Deposit margin corporate 31

32 Losses on Loans and Guarantees Stable development Highlights Loan loss development per divison Losses on loans amounted to MNOK 25 last quarter 6 YTD losses on loans ended at MNOK 112 Collective write-downs of MNOK 7 in Q4, and MNOK 25 for the year as a whole Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 Losses corporate Losses retail 32

33 Large Exposures Significant reduction last few years Positive development YTD Highlights % Large exposures have been cut significantly during the last 5 years Large exposures amount to 35 % of total capital 3,5 2,8 115 % 108 % 2,9 2,8 2,6 2,6 77 % 2,2 2,8 96 % 2,4 2,5 64 % 2,7 3,1 Financial institutions are excluded from the calculation 1,7 1,1 35 % Q16 Large Exposures Total capital Large exposure/total capital Last Quarters 72 % 2,6 64 % 2,7 71 % 62 % 2,5 2,5 58 % 2,9 3,1 1,9 1,7 1,8 1,8 1,7 35 % 1,1 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 Large Exposures Total capital Large exposure/total capital 33

34 Key Figures 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q Growth assets 2,8 % -0,1 % -0,7 % -7,1 % -0,4 % -2,2 % 0,1 % -0,7 % -5,3 % -3,2 % Growth lending 0,0 % 0,3 % -0,9 % -2,8 % -1,3 % -2,0 % -0,5 % -2,1 % -3,4 % -5,9 % Growth deposits -1,5 % 1,5 % -3,7 % -17,1 % -2,1 % -1,9 % -3,1 % 2,7 % -20,3 % -4,4 % Interest margin % av. total assets 1,62 % 1,50 % 1,46 % 1,57 % 1,46 % 1,74 % 1,68 % 1,70 % 1,60 % 1,64 % Other income % of total income 13,3 % 28,9 % -19,4 % 7,0 % 10,0 % 42,0 % 30,2 % 21,0 % 10,7 % 28,3 % Cost-to-income ratio 61,7 % 88,2 % 96,8 % 81,1 % 64,9 % 36,9 % 40,2 % 54,2 % 80,9 % 46,8 % Costs as % of av. total assets 1,2 % 1,9 % 1,2 % 1,4 % 1,0 % 1,1 % 1,0 % 1,2 % 1,4 % 1,1 % Return on equity before tax 7,6 % 0,5 % -0,6 % -27,9 % -1,3 % 20,3 % 12,9 % 6,4 % -5,2 % 9,3 % Return on equity after tax 5,5 % 1,1 % -1,0 % -19,5 % -0,9 % 16,9 % 10,3 % 4,1 % -3,5 % 7,3 % Capital adequacy ratio 15,0 % 15,3 % 15,6 % 15,9 % 15,9 % 16,2 % 18,3 % 19,7 % 15,9 % 19,7 % Tier 1 capital ratio 13,2 % 13,4 % 13,7 % 13,8 % 13,8 % 14,0 % 16,1 % 17,5 % 13,8 % 17,5 % CET1 11,7 % 11,9 % 12,1 % 12,1 % 12,0 % 12,2 % 14,3 % 15,6 % 12,1 % 15,6 % Risk-weighted assets Number of man-years Stock exchange price Equity capital certificate % of equity 57,2 57,2 57,2 58,6 58,6 58,8 65,2 64,9 58,6 64,9 Earnings per equity capital certificate 2,4 0,5-0,4-3,0-0,4 7,4 1,7 0,7-2,2 4,8 Book value per equity capital certificate 176,4 174,8 174,2 171,6 171,4 177,7 72,0 72,8 171,6 72,8 Individual write-downs in % of gross lending 0,62 % 0,65 % 0,74 % 1,49 % 1,62 % 1,70 % 1,75 % 1,36 % 1,49 % 1,36 % Coll. write-downs in % lending after ind. wr.-d. 0,29 % 0,30 % 0,32 % 0,37 % 0,40 % 0,44 % 0,47 % 0,51 % 0,37 % 0,51 % Deposits to loans ratio 59,1 % 59,8 % 58,1 % 50,0 % 49,7 % 49,8 % 48,6 % 50,8 % 50,0 % 50,8 % Deposits to loans ratio parent bank 82,9 % 83,1 % 82,5 % 72,1 % 72,1 % 72,7 % 70,7 % 73,6 % 72,1 % 73,6 % 34

35 Retail Lending Mainly unchanged last quarter Stable composition and risk profile Collateral Type LTV distribution (whole loan basis) Interest Rate Type* 1,4 % 0,4 % 0,9 % 42% 6,0 % 97,3 % Other Residential Holiday home Unsecured 22% 17% 13% 5% 0,4 % < 60% 60-75% 75-85% % >100% Unsecured Floating rate 94,0 % Fixed rate SSB Boligkreditt Cover Pool Eligibility Criterias equal to those of other Norwegian Covered Bond issuers Diversified across age groups 64 % of volume with an LTV below 75% 94% of volume with floating rate* Collateral values (residential real estate) updated on a quarterly basis using the standard Norwegian AVM-provider Eiendomsverdi Note(*): Note(*) Floating rate is a true floating rate. ie. changeable at the bank s discretion with 6 weeks notice 35

36 Key Figures Definition Rate of deposits to loans OB net loans to customers / OB deposits from customers Liquidity coverage ratio (LCR) Liquid assets / net liquidity output within 30 days in a stress scenario Interest margin ((Net interest income / days in the period) x days in a year) / average total assets Interest margin incl. fee to the Norwegian Investor Compensation Scheme ((Net interest income incl. fee to the Norwegian Investor Compensation Scheme / days i period) x days in a year) / average total assets Cost / income ratio Total operating costs / (net interest income + total other operating revenues) Costs as a percentage of average total assets ((Total operating costs / days in the period) x days in a year) / average total assets Return on equity after tax (Operating profit after taxes / days in the period x days in a year) / ((OB total equity + IB total equity) / 2 Equity certificate capital in % of equity (Equity certificate capital + own equity certificate + share premium + dividend equalisation reserve) / (Equity certificate capital + own equity certificate + share premium + dividend equalisation reserve + savings bank`s fund + gift fund) Earnings per equity certificate (Operating profit after taxes x equity certificate capital in % of equity) / number of equity certificates Book value per equity certificate OB total equity x equity certificate capital in % of equity / number of equity certificates Price / Book (P/B) Market price / book value per equity certificate Operating profit before write downs and taxes Operating profit after tax + tax cost + write downs on lening and guarantees Return on equity before tax (Operating profit before taxes / days in the period x days in a year) / ((OB total equity + IB total equity) / 2 36