Presentation Sparebanken Hedmark November 2008

Our Vision Creating together Photo: Liv Øverland Kornerud

Sparebanken Hedmark A modern savings bank with 160-year old roots Merger of 22 local savings banks in Hedmark Highest rated regional savings bank in Norway* *DnB Nor Markets Ratings

Has some 155,000 customers, meaning that more than half of Hedmark’s population has a customer relationship with the Bank Is the leading bank for commerce and industry in Hedmark, financing more than half of all business in the county Has some 550 employees including subsidiaries Member of the SpareBank1 Alliance Norway’s 6th largest savings bank Number 10 among all banks A self-owned institution - No Primary Capital Certificates issued All equity is retained earnings And; High equity capital more important than return on equity capital Sparebanken Hedmark

Rank Total Assets Total assets in billion NOK DnB NOR Sparebank1 SR-bank Sparebank1 Midt-Norge72 4. Sparebanken Vest72 5. Sparebank1 Nord-Norge61 6. Sparebanken Hedmark38 7. Sparebanken Møre 8. Sandnes Sparebank Sparebanken Sør Sparebanken Øst22

Sparebanken Hedmark

Hedmark – our Core Market Norway's 3rd largest county when it comes to area – km2 (8.5% of Norway's total area) inhabitants (4.2% of Norway's total population) Hamar – the capital of the county – is situated 130 km north of Oslo Business: –6% (2%) of the county's (Norway's) GDP comes from agriculture and forestry. –25% (37%) comes from industry. –70% (61%) from the service sector.

Strategic Goals Hedmark –Sparebanken Hedmark shall remain an independent and attractive partner for its customers and in that way contribute to growth and development within Hedmark High equity capital –Equity capital ratio more important than return on equity capital –Capital adequacy ratio at minimum 14% Return on equity –before taxes shall be at least equivalent to 6 percentage points above the yield on long-term government bonds

A True Multi Channel Strategy 31 offices within the county of Hedmark Branches in 20 out of 22 municipalities in Hedmark The first European bank with internet banking services (September 1996) Mobile bank services Customer service center open until late in the evening

Credit Policy; The Church Tower Principle Target customers: –Private individuals –Small and medium-sized enterprises –The public sector within Hedmark

Loan Portfolio

Our Customers

TREASURY Tore Anstein Dobloug Acting: Cathrine Mordal INFORMATION Siv Stenseth CREDIT MANAGEMENT Per Gustavsen RISK MANAGEMENT Vidar Nordheim ELVERUM RINGSAKER NORD-ØSTERDAL LØTEN-STANGE IT Dag Arne Hoberg CORPORATE CUSTOMERS Nils Arne Nordheim HR Eldar Kjendlie MARKETING Kari E. Vardeberg Chief Executive Officer Harry Konterud KUNDESERVICE FINANCE Arne Grunt KONGSVINGER SOLØR HAMAR TRYSIL ENGERDAL Organization

The SpareBank 1 Alliance One of the largest providers of financial products and services in the Norwegian market The SpareBank 1 Alliance's main goal is to ensure the individual bank's independence and regional foundation through strong competitiveness, profitability and financial soundness The alliance comprises approximately 340 offices and branches all over Norway Figures as at 1st Quarter 2008 Total assets: NOK 440 billion No. of branches: 350 No. of employees: No. of Internet banking customers :

The SpareBank 1 Alliance SpareBank 1 Gruppen AS is a holding company owned by Sparebanken Hedmark (12%), SpareBank 1 Nord-Norge (19,5%), SpareBank 1 Midt- Norge (19,5%), SpareBank 1 SR-bank (19,5%), Samarbeidende Sparebanker AS (19,5%) and Norwegian Federation of Trade Unions (10%) SpareBank 1 Gruppen AS owns companies that provide general insurance, life insurance, fund management and other financial products and services to SpareBank 1 banks and their customers. Motivation for the investment: –Strengthen our leading position as an independent bank –Marketing and products –Cost synergies –Competence

Eiendoms- Megler 1 (Bank-owned) SpareBank 1 Bilplan (19.9 %) First Securities (24.5 %) SpareBank 1 Boligkreditt (Bank-owned) Actor Fordr. forv. (90 %) The SpareBank 1 Alliance SpareBank 1 Livsforsikring (100 %) SpareBank 1 Skadeforsikring (100 %) Bank 1 Oslo (100 %) ODIN Forvaltning (100 %) SpareBank 1 Gruppen AS SpareBank 1 Nord-Norge SpareBank 1 Midt-Norge SpareBank 1 SR-Bank Sparebanken Hedmark LO Samarbeidende Sparebanker 19.5 % 19.5 % 19.5 % 12 % 19.5 % 10 % Bank Co-operation Programme Centres of Excellence IT operations and development Internet and telephone banking Risk Management Credit Systems Competence building Payment - cards and services Brand building Industrial and structural matters

Balance Sheet (Group) as at (NOK) Assets Cash and deposits with central bank 1,5 bn Lending to/deposits with credit institutions 1,5 bn Lending to Customers 32,2 bn Commercial papers and bonds 2,7 bn Shares (SB1, 0,45 bn) Fixed and intangible assets Other assets 0,8 bn 0,4 bn 0,8 bn Total assets39,9 bn Liabilities and equity Loans and deposits from credit institutions 3,0 bn Deposits from customers Borrowing through the issue of securities Other liabilities Equity (retained earnings) Total liabilities and equity 21,8 bn 9,2 bn 1,9 bn 4,0 bn 39,9 bn

Profit and Loss Account as at – Group (NOK) IFRS Result before tax parent bank382 Net other operating income Sparebank 1 Gruppen AS Hedmark Finans AS Hedmark Eiendom AS Others Group Result 2008 before tax Result as percent of total assets (avg.) Capital adequacy ratio (parent) 382 1,29 % 14,0 %

Profit and Loss Account – Parent Bank (NOK) IFRS 2006 IFRS 2007 IFRS Net interest income Other income Contribution margin Operating costs Res. before loan losses Net losses Result before tax

Loans - Controlled Growth :NGAAP, : IFRS

Deposits – Overall Coverage as at : 67,3% :NGAAP, : IFRS

Equity Capital* → More than 10% of Total Assets *Only retained earnings :NGAAP, : IFRS

Main Figures – Last 5 Years Parent Bank (NOK million) Result before taxes Result before taxes in %1,25%*1,31%1,48%1,45%1,33% Return on equity12,9%13,2%14,3%13,4%12,1% Total assets Gross lending Growth in gross lending7,7 %12,8%13,9%10,0%12,5% Deposits from customers Growth in deposits10,7%12,5%5,6%5,9%8,6% Equity Capital adequacy ratio13,9%13,1%15,2%15,5%15,6% * 2006 and 2007, IFRS. 2005, 2004 and 2003, NGAAP

Result –The pre-tax result as at totals NOK 382 million, or 1,31% of average assets. –Pre-tax return on equity capital is 13,3%. Corresponding figures a year ago were NOK 395 million, 1,46% and 14,8%. Group Result –The result for the Group as a whole amounted to about NOK 382 million before tax. Net interest income of NOK 624 million, which was NOK 49 million up on the year before Interest margin –As at , the interest margin was 2,56% (7,42-4,86) , the margin was 2,60% (5,85-3,24). –Lending margin based on 3 months NIBOR was 1,01% (7,42-6,41). –Deposit margin was 1,55% (6,41-4,86). Result as at – Parent Bank

Other (non-interest) income totals NOK 224 million, up by NOK 25 million in last 12 months. Operating costs –As at , total operating costs was NOK 444 million, equivalent to 1,52% of average assets. –The corresponding figures for Q were NOK 422 million and 1,55% respectively. Losses on loans –Losses on loans and guarantees totalled NOK 23 million. Individual losses amounted to NOK 16 million and collective write-downs totalled NOK 7 million. Loans/deposits –During the last 12 months, loans grew by 9,5%, deposits by 6,9%. Result Parent Bank (cont.)

Risk exposure – Interest Bearing Securities Net return on interest bearing securities as at : -1,67 % (based on market values) Norwegian finance "not rated": senior debt in Norwegian savings banks Tier 1, Tier 2, Hybrid capital: NOK 85 million Foreign industry: GE and Toyota ABS: EUR 17,6 million, AAA and AA (RMBS) AAAAAABBBNot ratetSum Norw. Finance Norw. Industry Foreign Finance Foreign Industry105 SUM

Other Risk Exposure Net FX position: NOK 0,5 million (0,01 % of equity) Interest risk with 1 % change in interest rates: NOK 5,7 million (0,14 % of equity) Total portfolio of listed shares and funds: NOK 139 million (3,5 % of equity) No other credit exposure

Funding A conservative policy

Funding Strategy Deposits from customers minimum 60 % Minimum 6 months without external funding → Low refinancing risk. A long term and well diversified funding profile. Target 3 years (average life of long-term liabilities) The amount of long term funding maturing shall be approximately the same amount each year The Norwegian market will continue to be the main funding source, but a considerable share (20 %) of the bank's total funding will be done in foreign markets

Funding – low exposure to financial turmoil The overall deposit coverage ratio so far in 2008 was approximately 67%. The average life of long-term liabilities as at was 3,8 years (included short term). External funding totalled about NOK 12 billion. –About NOK 8,3 billion long-term loans –About NOK 1,9 billion certificates –About NOK 2,5 billion in Euro-funding (no exchange risk) Drawing rights facilities of NOK 3 billion Liquidity portfolio of bonds about NOK 2.7 billion Untapped potential in covered bonds Low refinancing risk –Long maturities for liabilities –A liquid securities portfolio –Drawing rights facilities –Covered bonds The Bank can continue its operations for more than 12 months without injection of liquidity.

Liquidity – strong position

Funding as at

Funding

Contact list Treasury & Finance Department: Cathrine Mordal, Acting Head of Treasury & Finance Department Phone: International Payments & Correspondent Banking: Paul Arild Tofastrud, Head of Team Phone: Mail:

Where to find us Visiting address: Strandgata 15, Hamar Mailing address: P.O. Box 203, N-2302 Hamar Telephone: Web-site: