SpareBank 1 SRBank Group

1
SpareBank 1 SR-Bank Group

• Third quarter 2007
• 25 October 2007

2
Highlights from third quarter 2007

• High income from savings and investment products.
• Still very good results in SpareBank 1 Group.
• Bond issued by SpareBank 1 Boligkreditt AS.
• Good results in subsidiaries.
• The new PRO School concept launched.
• MiFID - well prepared.
• New rating from DBRS, long-term A (high).
• ROGG - split and capitalisation issue

3
Very strong results - high income growth

• Group profit before tax NOK 948 million (NOK 769
  million).
• Return on equity after tax 20.6 (20.6 ).
• Income growth 22.1 (4.2 )
• Net interest income NOK 967 million (NOK 830
  million).
• Net commission and other income NOK 635 million
  (NOK 494 million).
• Net return on investment securities NOK 320
  million (NOK 250 million).
• Growth in loans 27.2 (19.5 ) over last 12
  months, which breaks down into 15.5 RM and 50.5
  CM.
• Growth in deposits 15.5 (12.6 ) over last 12
  months, which breaks down into 10.3 RM and 19.9
  CM.
• Earnings per primary capital certificate NOK
  16.6 (NOK 13.5).

(Year-to-date results. Figures for corresponding
period in 2006 are shown in parentheses.)
4
Income statement
5
Key figures
6
Net interest income and margins
1,70
1,05
0,65
7
Change in net interest income
8
Lending growth (12 months)
Volume30.09.07
CM 39,4
Annualised growth in CM year-to-date is 29.8 as
of 30 September 2007.
RM 60,6
RM-growth and volume includes mortgage loans
transferred to SpareBank 1 Boligkreditt AS.
9
Deposits growth (12 months)
Volume30.09.07
RM 43,6
CM 56,4
10
Savings/placements - portfolio development

• Savings agreements
• On national basis
• There are about 745,000 savings agreements i unit
  trust or combined unit trust.
• The average per agreement is NOK 657 per month
  and an average of 1.6 agreements per customer.
• SpareBank 1 SR-Bank
• About 55.000 savings agreements are in unit trust
  or combined unit trust.
• The average per agreement is NOK 797 per month
  and an average of 2.2 agreements per customer.
• The amount saved per customer is 66 higher than
  national average.
• 9 of the volume related to savings agreements in
  unit trust in Norway is done through SpareBank 1
  SR-Bank.

Source ODIN
11
Net commission and other income
12
Net return on investment securities
13
Other operating income in per cent of total income
Excluding gain/loss on securities trading,
dividend and ownership stakes. Financial
statements before 2004 are not prepared according
to IFRS.
14
Operating costs

• Of other operating expenses, NOK 56 million (MNOK
  46) is related to EiendomsMegler 1 (assignment
  costs). This post includes amongst other things,
  fees to external consultants (adjustment
  programmes).

15
Profit before losses
16
Subsidiaries
17
Net losses on loans and guarantees
18
Gross non-performing loans
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Financial targets

• 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.
• 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.

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Retail Market Division

• The development in the savings/placement area is
  very good.
• Good balance sheet growth and continued pressure
  on margins.
• The credit card market initiative has been
  successful.
• Use of the banks electronic services is showing
  good growth.
• The fight for market shares in the non-life
  insurance area is still very strong.
• To strengthen our consulting competence further
  the SR Advisor School has been established.

21
Corporate Market Division

• Favourable development, more than 45 income
  growth year to date compared with 2006.
• Good growth in loans and deposits, but reduced
  growth rate.
• Low level of defaults and net recoveries on
  losses.
• More than 550 new customers so far this year.
• Interest in the new PRO School concept has
  surpassed all expectation. The PRO School has
  been developed for small and medium-sized
  enterprises,
• More than 1,000 of our SME customers now
  subscribe to the PRO concept.
• The competition is strong, but the favourable
  development is expected to continue.

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Lending growth, Corporate Market
23
Development Risk Profile
EL - Expected Loss
24
Lending by industry
25
Capital Market
Capital Market
Markets
Savings and placement
Corporate
Capital management

• Strengthens and realizes innovation
• Developes the ability of production and increases
  the creation of value
• Develops processes from competence to product
• Supports the groups distributions force
• Unites and exploits competence areas
• Supports the groups efforts in private and
  public savings/placements

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Unrest in the funding market

• SpareBank 1 SR-Banks liquidity strategy works,
  also in difficult periods.
• No sub-prime loans or credit derivates in the
  portfolio.
• Reduced liquidity risk through the possibilities
  provided by SpareBank 1 Boligkreditt.
• SpareBank 1 SR-Bank still acts as if the access
  to liquidity will grow worse.

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Liquidity prognosis
Liquidity
okt. 07
des. 07
feb. 08
apr. 08
jun. 08
aug. 08
7.000
6.000
5.000
4.000
3.000
2.000
1.000
0
-1.000
-2.000
-3.000
Maturities
Liquidity
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MIFID

• SpareBank 1 SR-Bank is on schedule in relation to
  adapting to the new laws and regulations.
• Increased investor protection and stronger demand
  for competence.
• Already established routines and directives are
  satisfactory.
• Comply with stricter requirements and control by
  the authorities.

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New rating from DBRS

• First time rating from DBRS
• Senior unsecured long-term debt deposit A
  (high)
• Short-term debt deposit R-1 (middle)
• Trend Stable
• The ratings are underpinned by the savings
  banks solid and defensible franchise in
  southwestern Norway, by its prudent strategy and
  strict risk management and by very good financial
  fundamentals, including good and sustainable
  profitability. The ratings also take account of
  SR-Banks membership in the SpareBank 1 Group -
  which includes some of Norways largest savings
  banks - thus enabling it to benefit from key
  synergies.

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ROGG split and capitalisation issue

• The Board of Directors will propose to the
  Supervisory Board at meetings on 25 and 26
  October 2007 that the primary capital
  certificates be split into two and that a
  subsequent capitalisation issue be carried out in
  which 3 certificates will give entitlement to 1
  new.
• Capitalisation issue NOK 444 million will be
  transferred from the premium reserve and
  equalisation reserve to primary capital.
• The number of primary capital certificates will
  be 70.969.909 after the split and capitalisation
  issue.

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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 groups 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-Banks current strategic efforts
  will strengthen our ability to meet increased
  competition in the future, and increases our
  earning potential.

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APPENDIX
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The primary capital certificate - ROGG

• Trading volume Q3 2007 5,8 (14,1 ).
• Number of ROGG owners 30.09.07 11.299 (11.112).
• Owner shares per 30.09.07
• From Rogaland, Agder og Hordaland 64,2 (61,2
  ).
• Non-domestic 9,1 (8,0 ).
• 10 largest 23,9 (25,2 ).
• 20 largest 30,8 (31,4 ).

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Development of share prices savings banks 2007
Source First Securities
35
Key figures - ROGG
36
Capital adequacy
37
Rating

• First time rating from DBRS in October 2007
  Long-term A (high), short-term R-1 (middle),
  trend stable.
• In Q1 07 Moodys 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).

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Balance sheet
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SpareBank 1 SR-Bank

• Established in 1839
• Head office in Stavanger
• 54 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

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EiendomsMegler 1 SR-Eiendom AS 100
SpareBank 1 SR-Finans AS 100
SpareBank 1 Gruppen AS 19,5
SR-Forvaltning ASA 67
SR Investering AS 100
SpareBank 1 Boligkreditt AS 26,4
Vågen Eiendoms- forvaltning AS 100

• Property management

• Real-estate agency
• - Houses
• - Business
• - Projects
• Market leader in Rogaland

• Investment in long-term equity

• Mortgage company

• Asset management

• Leasing
• Financing

• 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
• Actor Fordringsforvaltning AS

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Localized in Rogaland, Agder and Hordaland

• Head office in Stavanger
• 54 branches in Rogaland, Agder and Hordaland

Åkrehamn
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SpareBank 1 Alliance
Owners
SpareBank 1 Gruppen AS
ODIN Forvaltning AS 100
Bank 1 Oslo AS 100
SpareBank 1 Livsforsikring AS 100
SpareBank 1 Skadeforsikring AS 100
SpareBank 1 Bilplan AS 19,9
First Securities ASA 24,5
SpareBank 1 Medlemskort AS 100
Actor Fordringsforvaltning AS 90
EiendomsMegler 1

• New members in 2006
• Sparebanken Hedmark
• Kvinnherad Sparebank
• Sparebanken Volda Ørsta
• Sparebanken Hardanger

• 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
• Annual report 2006

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The recommended bank
SpareBank 1 SR-Bank will be a significantly
larger and broader bank as a result of strong
organic growth, innovation and strategic
acquisitions
Strategy
Purpose SpareBank 1 SR-Bank will add value to
the region in which we take part.

• SpareBank 1 SR-Bank shall have the most
  attractive brand of finance, and shall be
  distingushed by
• Highest share of recommendation from customers
  and lowest share of complaints in secured groups
  of customers.
• Clear prioritization based on customer needs and
  profitability.
• Clear position in the savings/pension market.
• Ability to attract, challenge and develop the
  best staff.
• Profitability in the top third compared to other
  Norwegian finance groups.

• Values
• The courage of conviction, the strength to create
• Through having a long-term perspective, and
  being open and honest
• Through showing responsibility and respect, and
  will and ability to improve