1. Interim report Q3 2012

2. CONTENTS IntroductionFinancial developmentIncomeExpenses Loan impairment charge and loans in default Deposits, loans and balance sheetSummary and future prospectsTables

3. Information about Sparebanken Sogn og Fjordane Highlights 30.09.2012 Introduction Financial developmentIncomeExpensesLoan impairment charge and loans in defaultDeposits, loans and balance sheetSummary and future prospectsTabels

4. SPAREBANKEN SOGN OG FJORDANE  The largest bank in the county of Sogn og Fjordane  Total assets of NOK 36,3 billion  Merchant bank oriented towards the retail- and corporate banking market  21 sales offices in the county of Sogn og Fjordane and one sales office in Bergen  18 ”bank in grocery store” agreements in Sogn og Fjordane  269 full-time employees  Active contributor to the local communities in the county Introduction

5. MARKET LEADER  SSF is the largest bank in the county with 21 offices and 18 “bank in grocery stores”  The biggest competitor is Sparebanken Vest with 10 branches  Three large national banks and four small saving banks are located in the county

6. HIGHLIGHTS 30.09.2012 Pre-tax profit of NOK 345 million (129 million) Comprehensive income of NOK 252 million (102 million) Net interest income rose by 12.6 % Operating expenses reduced by 7,5 % Impairment charge of NOK 33 million (85 million) Annualized return on equity of 13.9 % (5,7%). Introduction The figures in the brackets are the figures for the same period last year

7. Introduction Development Key figures Financial development IncomeExpensesLoan impairment charge and loans in defaultDeposits, loans and balance sheetSummary and future prospectsTabels

8. PROFITS The figure illustrates the profit after tax and comprehensive income for the Group (NOK million) Financial development

9. PROFITS The figure illustrates the profit before impairment charge and the profit after tax (NOK million) for the Group. Financial development

10. PROFITS

11. PROFITS QUARTERLY The figures illustrate the quarterly development in total comprehensive income for the Group. The figures are in NOK million and as a percentage of average total assets annualized. Financial development

12. PROFITS FROM CORE BUSINESS Financial development Ex. dividends and changes in values of financial instruments

13. RETURN ON EQUITY The figure illustrates return on equity after tax and return on equity after tax incl. result from long- term shareholdings available for sale for the Group. Financial development

14. IntroductionFinancial development Net interest income Other operating income Total income Income ExpensesLoan impairment charge and loans in defaultDeposits, loans and balance sheetSummary and future prospectsTabels

15. NET INTEREST INCOME The figure illustrates the net interest income as a percent of average total assets for the Group.  Net interest income is NOK 454 million, 51 NOK million higher than at Q3 2011  As a percentage of average total assets this is 0.10 percentage points higher than Q3 2011  The increase in net interest as a percentage of average total assets is mainly due to higher margins against customers. Income

16. NET INTEREST INCOME QUARTERLY The figure illustrates the quarterly development of net interest in NOK million and in percent of average total assets for the Group Income

17. OTHER OPERATING INCOME The figure illustrates the development of other operating income (excl. dividend and value changes in financial instruments ) as a percentage of average total assets for the Group. Quarterly figures are annualized.  Other operating income of NOK 94 million  NOK 4 million lower than same period last year  The reduction is due to lower value of services provided to Gjensidige Bank Income

18. OTHER OPERATING INCOME QUARTERLY The figures illustrate the quarterly development of other operating income for the Group (excl. dividend and changes in values on financial instruments). The figures are in NOK million and are also shown as a percentage of average total assets (annualized) Income

19. TOTAL INCOME The figure illustrates the development in total income (net interest + net other income) for the Group.  Total income at Q3 2012 is NOK 142 million higher than at Q3 2011  The increase mainly is due to gain from financial instruments and higher net interest income Income

20. TOTAL INCOME QUARTERLY Income The figures illustrate the development in total income for the Group. The figures are presented in NOK million and as a percentage of average total assets (annualized)

21. IntroductionFinancial developmentIncome Operating expenses Total assets and employees Expenses Loan impairment charge and loans in defaultDeposits, loans and balance sheetSummary and future prospectsTabels

22. OPERATING EXPENSES  At Qhe expenses are reduced by NOK 20 million or 7,5% compared to the equivalent period last year  Strong focus on cutting costs has been effective The figure illustrates the development in total operating expenses as a percentage of average total assets for the Group. The green pillars are adjusted for the transfer of liability for the AFP early retirement scheme Expenses

23. OPERATING EXPENSES AS A % OF INCOME  At Q3 2012 the total operating expenses as a percentage of total income is reduced by 15,6 percentage points compared to Q3 2011.  The change is due to a strong increase in the gain from financial instruments, increase in net interest income and a reduction in the expenses. The figure illustrates the development in total operating expenses as a percentage of average total assets for the Group. The green pillars are adjusted for the transfer of liability for the AFP early retirement scheme Expenses

24. OPERATING EXPENSES QUARTERLY The figures illustrate the quarterly development in operating expenses for the Group. Figures are presented in NOK million and as a percentage of average total assets (annualized) Expenses

25. TOTAL ASSETS AND EMPLOYEES Expenses The figure illustrates the development in total assets (pillars) and number of full time employees (points) for the Group

26. IntroductionFinancial developmentIncomeExpenses Loan impairment charge Loans in default Loan impairment charge and loans in default Deposits, loans and balance sheetSummary and prospectsTabels

27. LOAN IMPAIRMENT CHARGE The figure illustrates the development in recoveries (-)/ impairment charge(+) on loans and guarantees for the Group. Loan impairment charge and loans in default

28. LOAN IMPAIRMENT CHARGE The figure illustrates the development in recoveries(-) /impairment charge on loans and guarantees as a percentage of gross loans for the Group. Numbers in % are not annualized. Loan impairment charge and loans in default

29. LOAN IMPAIRMENT CHARGE QUARTERLY The figures illustrate the quarterly development in impairment charge on loans and guarantees (including net profit realised on the sale of fixed assets) for the Group. Figures are presented in NOK million and as a percentage of average total assets and are annualized. Loan impairment charge and loans in default

30. LOANS IN DEFAULT The figure illustrates the quarterly development in loans in default (more than 90 days) as a percentage of gross loans to the respective sectors (RM and CM/PS/FS) Loan impairment charge and loans in default

31. IMPAIRMENT PROVISIONS The figure illustrates the development in total individually assessed impairment provisions and collectively assessed impairment provisions (NOK million). Collectively assessed provisions are estimated using a model that takes into account the quality, size and composition of the loan portfolio  Almost unchanged provisions at Q3.12 compared to Q4.11 Deposits, loans and balance sheet

32. IntroductionFinancial developmentIncomeExpensesLoan impairment charge and loans in default Balance sheet Deposits and loans Funding Deposits, loans and balance sheet Summary and future prospectsTabels

33. TOTAL ASSETS 2005- 2012  Total assets rose by 5,7 % compared to Q3 2011  The increase is mainly due to growth in loans to retail customers Financial development

34. BALANCE The figure shows the 12 months development of gross loans and deposits for the Group (NOK billion)  Increase in gross lending from Q3 2011 by NOK 2.0 billion  Increase in deposits from Q3 2011 by NOK 1.0 billion

35. BALANCE - GROWTH The figure illustrates the yearly growth in total assets, net loans and deposits for the Group Deposits, loans and balance sheet

36. LOANS TO CUSTOMERS The figure illustrates the development in loans to the RM, CM/PS/FS. (Figures in NOK billion)  Gross loans increased by NOK 2.0 billion from Q3 2011 which equals an increase of 6,5 %  Increase in the RM by almost NOK 2,0 billion or 9,8%  Increase in loans to CM/PS/FS almost the same Deposits, loans and balance sheet

37. LOANS BY SECTOR The figures illustrate the distribution of gross loans to the RM (retail market), CM/PS/FS (corporate market, public secor, financial sector) Deposits, loans and balance sheet

38. DEPOSITS FROM CUSTOMERS The figure illustrates the development in deposits from the RM and CM/PS/FS (NOK billion)  Deposits grew by NOK 1.0 billion from Q3 2011 equivalent to an increase of 5.9%  Increase in the RM rose by 9,1%  Increase in deposits from the CM/PS/FIN rose by 1.5% Deposits, loans and balance sheet

39. DEPOSITS BY SECTOR The figures illustrate the deposits by sector as a percentage of total deposits Deposits, loans and balance sheet

40. DEPOSITS VS GROSS LENDING Deposits, loans and balance sheet The figure illustrates deposits from customers as a percentage of gross lending both for the Group and for the mother bank (mother bank is excl. Bustadkreditt Sogn og Fjordane AS which was made operative with residental mortgage loans in 2009)

41. EQUITY AND CORE CAPITAL The figure illustrates the development in equity (pillars) and core capital ratio (points) for the Group  The core capital ratio includes in addition to booked equity, also hybrid capital of NOK 313 million at Q3 2012.  The result for 2012 is not included in the core capital ratio  Included the result for 2012 and after deduction of estimated dividend for 2012, the core capital ratio was14,9% at Q3 2012 Deposits, loans and balance sheet

42. CAPITAL ADEQUACY RATIO The figure illustrates the development in the capital adequacy ratio for the Group. Deposits, loans and balance sheet  The result for the period is not included in the capital adequacy ratio at Q3 2012  Included the result for 2012 and after deduction of estimated dividend for 2012, the capital adequacy ratio was 14.9% at Q3 2012

43. MATURITY STRUCTURE OF FUNDING The figure illustrates the maturity structure for the different sources of funding. (NOK million) Deposits, loans and balance sheet

44. LIQUIDITY BUFFER The figure illustrates the liquidity buffer given no new funding and given growth in customer deposits and loans to customers according to budget/projections  At 30.09.2012, the Group had a liquidity buffer of NOK 3.8 billion in short term deposits with Norges Bank and other banks and in marketable bonds and certificates Deposits, loans and balance sheet

45. IntroductionFinancial developmentIncomeExpensesLoan impairment charge and loans in defaultDeposits, loans and balance sheet Summary and future prospects Tabels

46. SUMMARY AND FUTURE PROSPECTS  The profit for the first nine months of 2012 is substantially better than for the same period last year  The change in the profit is due to:  Strong growth in the net interest income  Gain from financial instruments  Cost-saving measures have given effect  Lower loan impairment charge  Positive development in capital adequacy ratio  Very satisfied with the performance in the first nine month of 2012  Expecting a satisfactory result for the rest of 2012

47. IntroductionFinancial developmentIncomeExpensesLoan impairment charge and loans in defaultDeposits, loans and balance sheetSummary and future prospects Tabels

48. KEY FIGURES PROFIT AND LOSS ACCOUNT Financial development

49. KEY FIGURES BALANCE SHEET Financial development

50. KEY FIGURES Financial development

51. BASIC OPERATIONS Financial development Ex. dividends and changes in values of financial instruments