SpareBank 1 SR-Bank Group 2nd Quarter 2005

1
SpareBank 1 SR-Bank Group2nd Quarter 2005
2
Very good results- low level of loss and high
return on financial investments

• Group profit before tax NOK 498 million (NOK 367
  million).
• High return on equity after tax 22.5 (19.3 ).
• Annual lending growth (12m growth) 12,7 (8,4)
  including Corporate Market 17,2 and Retail
  Market 10,7.
• Annual growth in deposits from customers (12 m
  growth) 17 (10.6 ), including Corporate
  Market 7,3 and Retail Market 28,8.
• Net loss NOK 2 million (NOK 62 million).
• Net revenue on financial investments NOK 155
  million (NOK 104 million)
• Net commission income NOK 177 million (NOK 161
  million).
• Result pr PCC NOK 8,6 (NOK 6,6).
• (Figures from corresponding period in 2004 in
  parenthesis)

3
Profit and loss account
4
Key Figures
Excluding gain/loss on securities
trading Excl. EUR 270 mill revolving credit
facility
5
Underlying banking operations
6
Change in net interest income
7
Development in interest margins
8
Strong growth in lending to the corporate market
9
High growth in deposits from corporate customers
10
High return on financial investments
11
Healthy growth in net commision- and Other
operating income
12
Other operating income in of total income is
increasing
Excluding gain/loss on securities trading,
dividend and ownership stakes Financial
statements before 2004 is not prepared according
to IFRS
13
Subsidiaries
14
Operating costs
15
Cost/income ratio - parent bank
Figures prior to 2004 are calculated according to
NRS (Norwegian accounting standards) Excluding
gain/loss on securities trading
16
Loss on loans and guarantees

17
Gross non-performing loans
18
Financial Goals
SR-Banks goal is to achieve a 15 return on
equity, or to achieve a return on equity that
places the bank
among the top
1/3 of all comparable banks operating within
Norway.
19
Market trends - Corporate market

• Higher level of investments within local business
  and industry
• Good results
• Focus on off-balance products
• an increase of 28 in income on off-balance
  products compared to the same period last year
• Positiv development in the risk profile of the
  credit portfolio
• a low level of loss and default
• High level of customer satisfaction
• Emphasis on the market for occupational pensions

20
Market trends - Retail market

• The development in the Retail market has been
  good in the last 6 months, and has been
  characterised by
• good growth in balance
• Increased other operating income
• Low level of loss
• The retail market has had a particularly strong
  development within deposits, loans and
  productareas generating other operating income.
• A new office, which has been very well received
  has been opened in Grimstad.
• New products have been launched
• Savings-/Pensions- related
• Car financing
• Youth concept

21
Sparebank 1 SR-Bank expands market area - opens
new office in Bergen

• We consider Hordaland an exiting and attractive
  market.
• The expansion to Bergen/Hordaland is based on an
  established and profitable market consept.
• The office will be in operation in the course of
  the first half of 2006.
• Two appointmenst have been made Regional
  Director Corporate Market, and Regional Director
  Retail Market
• The office will start off with 15 employees.
• We currently have approx. 4800 customers in
  Hordaland, representing a lending volume of
  approx. 2,2 bn NOK.

22
Basel II

• Level of Ambition Sparebank 1 SR-Bank
• Credit risk
• IRB Foundation for the Corporate Market Portfolio
• IRB Retail for the Retail Market Portfolio
• Operational risk
• Standard method
• Plan of implementation
• All methods from 01.01.07
• Status
• A task gruop was established for the Basel II
  preparations in 2002
• Basel II adjustments are going according to plan,
  and a formal application will be sent to The
  Financial Supervisory Authority of Norway within
  09.30.05

23
The Primary Capital Certificate - ROGG

• Split and emisjon carried out in Q2 2005
• Trading volume Q2 10,7 (6,7 )
• Number of ROGG owners 9.235 (7.840)
• Distribution of owners
• Owners from Rogaland and Agder 45,2 (47,2
  only Rogaland)
• Non-domestic owners 18,3 (14,8 )
• 10 largest owners 25,8 (25,9 )
• 20 largest owners 31,6 (32,5 )
• Dividend yield 06.30.2005
• ROGG 35,6
• GFBX 19,7
• OSEBX 19,7

(Q2 2004 in paranthesis) Rise in share value
paid dividend expressed as a percentage of the
share value 01.01.2005
24
Rising share value
25
APPENDIX
26
Key Figures - ROGG
27
Balance sheet
28
Capital adequacy
29
Continued pressure on margins - Corporate Market
30
Continued pressure on margins - Retail Market
31
Lending by industryShare of total lending as of
06.30.2005
32
Rating
33
SpareBank 1 SR-Bank
Established in 1839 Main Office in Stavanger 50
offices in South-Western Norway More than 200 000
customers
Chairman of the Board Geir Worum Chief Executive
Officer Terje Vareberg Chairman Supervisory
Board Einar Risa Chairman Audit Committee Odd
Rune Torstrup External Auditor
PricewaterhouseCoopers
34
EM 1 Rogaland AS 100
SR-Forvaltning ASA 67
SB1 SR-Finans AS 100
SpareBank 1 Gruppen AS 17.6

• ODIN Forvaltning AS
• SpareBank 1
• Livsforsikring AS
• SpareBank 1
• Skadeforsikring AS
• SpareBank 1
• Fondsforsikring AS
• First Securities ASA
• Bank 1 Oslo AS
• SpareBank 1 Bilplan AS

• Leasing
• Financing

• Real-estate agency
• House
• Business
• Project
• Market leader in
• Rogaland

• Asset Management

35
Vision SpareBank 1 SR-Bank the recommended bank
Corporate values
Through having
A Long- term Perspective
Open and Honest
The Courage of Conviction, the Strength to
Create.
Through being
Responsibility and Respect
Through showing
Will and Ability to Improve
36
Strategy

• SpareBank 1 SR-Bank shall be a profitable and
  solid bank that is attractive to customers,
  capital markets, owners and employees.
• Through
• A savings bank philosophy with a strong brand
  and modern bank operations, where value is
  created locally and plowed back into the local
  community.
• Clear prioritization based on customer needs and
  profitability.
• Our market area is primarily Rogaland, Agder and
  Sunnhordland.
• Clear position in the savings/pension market.
• Competent employees who are proud to work for
  SpareBank 1 SR-Bank.

37
Customers
SpareBank 1-banks 290 offices/meeting
places/distribution units
SpareBank 1 Gruppen AS
SpareBank 1 Livsforsikring AS (100)
SpareBank 1 Skadeforsikring AS (100)
SpareBank 1 Fondsforsikring AS (100)
Eiendoms-Megler 1
Bank 1 Oslo AS (100)
First Securities ASA (33)
SpareBank 1 Bilplan AS (67)
ODIN Forvaltning AS (100)
FSPA/ Swedbank Oslo
Owners
SpareBank 1 SR-Bank
SpareBank 1 Midt-Norge
SpareBank 1 Nord-Norge
Cooperating Sparebanker AS
LO og fagforbund
Förenings- Sparbanken
17.6
19,5
17.6
17.6
17.6
10
37
38
Bjergsted Terrasse 1 Financial
Calendar P.O. Box 218 3. kvartal
05 25.oktober 4001 Stavanger

Chief Executive
Officer Terje Vareberg For
further information, please contact Sveinung
Hestnes, Deputy CEO and CFO Tel [phone]
58 Tor Dahle, Executive Group Controller
Tel [phone] Seri Berge
Tel [phone] Switchboard
Tel [phone] Intformation on the
internet SR-Banks web site www.sr-bank.
no Hugin-Online www.huginonline.n
o