Investor Relations Supplementary Information

Contact information

CEO Jan-Frode Janson

For further information, please contact

CFO	Kjell Fordal
	[email protected]
	+47 905 41 672

Address

SpareBank1 SMN	Postboks 4796 Sluppen, 7467 Trondheim
Switchboard	+47 915 07 300
Visiting address	Søndre gate 4, 7011 Trondheim

Information on the internet

SpareBank1 SMN's homepage	www.smn.no
ECC information in general	www. egenkapitalbevis.no

Financial Calendar 2020

1st quarter	07 May 2020
2nd quarter	11 August 2020
3rd quarter	30 October 2020

Major changes from Q4 2019

Technology and development director appointed

Astrid Undheim was appointed executive director responsible for technology and development at SpareBank 1 SMN. She takes up duties on March 1st 2020.

Launching of green loans to retail borrowers

SpareBank 1 SMN has a targeted focus on sustainability. In December three loan products for the retail were launched: green residential loans, green loans for energy projects and green consumer loans. The green residential mortage is for borrowers who are building, buying or fully renovating homes to high enviromental standard. The green loan for energy projects is for borrowers who wish to engage in energy-oriented projects, and have collateral available in their dwelling. The greeen consumer loan is an unsecured loan for borrowers wishing to engange in energy-oriented projects, and are unable to mortage their dwelling.

BN Bolig sold at year-end

The Group sold BN Bolig in the forth quater. The company was a joint project between BN Bank and EiendomsMegleg 1 Midt-Norge with a view to acquiring a position in the estate agency market in Oslo. After several years of decifit the business was sold.

1 SpareBank 1 SMN

Change in net interest income	15



Commision and other income	17
Change in commision and other income	18

1.1 Financial highlights	5	1.6 Operating expenses	21
Main figures	6	Operating expenses	21
Balance sheet - condensed	6	Change in operating expences	22
Equity capital certificate (MING)	7	Employees- full time equivalents	22
1.2 Credit ratings	8	1.7 Loans to customers	23
Moody's	8	Distribution of loans by industry	23
Fitch	8	Credit risk classification in SpareBank 1 SMN	24
		Risk profile - Exposure At Default	24
1.3 Financial results and key figures	9	Loans and guarantees by industry	25
Financial results	9	Write-downs on loans and guarantees	25
Balance sheet	11	Loss on loans by segment	26
Key figures	13	Write-down ratio	26
1.4 Net interest income	15	1.8 Capital Markets Funding	27
Net interest income	15	Securities liabilities	27
Change in interest income from lending and deposits	15	Funding maturity dates	27
Change in net interest income	15
Margin development	16	1.9 Capital adequacy	28
Volume development	16	Capital adequacy ratios	28
		Leverage ratio	28
1.5 Other income	17	Spesification of capital requirements	29
Commision and other income	17
Change in commision and other income	18

2 Segment information 3 Appendix

Net return on financial investments 19 Change in net return on financial investments 20

2.1 Extract from income statement	33	A1 Business description	44
2.2 Retail market	35	A2 20 largest stakeholders	47
2.3 Corporate market	37	A3 ECC capital history	48
2.4 Subsidiaries	39	A4 CAD	48
EiendomsMegler 1 Midt-Norge AS	39
SpareBank 1 Finans Midt-Norge AS	40
SpareBank 1 Regnskapshuset AS	41
SpareBank 1 Markets AS	42
Other subsidiaries	43

A1 Business description
A2 20 largest stakeholders
A3 ECC capital history
A4 CAD

1.1 Financial highlights

0,2

0,4

0,6

0,8

1,2

January - December 2019 YTD ²⁰¹⁸

1.90

-0,1

-0,05

0,05

0,1

0,15

0,2

0,25

Profit before tax and inv. held for sale	3,081	NOK million		2,450
Net profit	2,563	NOK million		2,090
Return on equity	13.7	per cent		12.2
Annual lending growth	4.7	per cent		7.8
Annual deposits growth	6.6	per cent		5.4
Loan losses	299	NOK million		263
CET1 ratio	17.2	per cent		14.6
Earnings per EC	12.14	NOK		9.97
Q4 2019			Q4	2018
Profit before tax and inv. held for sale	469	NOK million		513
Net profit	346	NOK million		401
Return on equity	7.1	per cent		9.0
Loan losses	103	NOK million		67

1.60

Earnings per EC NOK

Series2 Series1

Main figures

Net profit	346	488	683	1,046	401	480	743	466	553
Results investments held for sale, after tax	0	0	0	0	-8	6	150	1	-4
Tax charge	123	121	165	109	104	119	156	131	122
Result before tax	469	609	848	1,155	513	592	748	596	678
Loss on loans, guarantees etc.	103	71	59	67	67	69	78	48	78
Result before losses	572	680	907	1,223	580	661	827	645	756
Total operating expenses	720	673	701	704	701	616	661	645	618
Total income	1,292	1,353	1,607	1,926	1,282	1,277	1,488	1,290	1,374
Net return on financial investments	17	121	336	727	95	182	300	180	256
Commission income and other income	579	554	606	551	543	486	607	542	529
Net interest	697	678	664	649	644	610	581	568	589
Quarterly figures [NOK million]	4Q19	3Q19	2Q19	1Q19	4Q18	3Q18	2Q18	1Q18	4Q17

Net profit	2,563	2,090	1,828	1,681	1,441
Results investments held for sale, after tax	0	149	-1	4	-1
Tax charge	518	509	450	352	383
Result before tax	3,081	2,450	2,279	2,029	1,824
Loss on loans, guarantees etc.	299	263	341	516	169
Result before losses	3,380	2,713	2,621	2,544	1,993
Total operating expenses	2,797	2,624	2,369	2,003	1,931
Total income	6,178	5,337	4,989	4,547	3,924
Net return on financial investments	1,201	757	760	944	459
Commission income and other income	2,290	2,177	2,005	1,674	1,545
Net interest	2,687	2,403	2,225	1,929	1,920
Five years [NOK million]	YTD 19	2018	2017	2016	2015

Balance sheet - condensed

	31 Dec	30 Sep	30 Jun	31 Mar	31 Dec	30 Sep	30 Jun	31 Mar	31 Dec
Quarterly figures [NOK million]	2019	2019	2019	2019	2018	2018	2018	2018	2017
Total assets	166,662	166,475	167,289	164,641	160,704	159,337	159,584	152,083	153,254
Average total assets (quarterly)	166,569	166,882	165,965	162,673	160,021	159,460	155,833	152,668	150,083
Gross loans to customers ¹	167,777	165,380	163,627	161,091	160,317	157,825	154,790	151,065	148,784
Deposits from customers	85,917	83,641	86,553	81,111	80,615	77,529	80,343	75,937	76,476
Total equity capital	20,420	19,904	19,450	18,673	18,686	18,650	17,984	17,365	17,510

¹ Loans to customers includes loans sold to SpareBank1 Boligkreditt and SpareBank1 Næringskreditt.

Five years [NOK million]	YTD 19	2018	2017	2016	2015
Total assets	166,662	160,704	153,254	138,080	131,914
Average total assets (quarterly)	165,154	160,021	150,083	138,948	130,575
Gross loans to customers ¹	167,777	160,317	148,784	137,535	127,378
Deposits from customers	85,917	80,615	76,476	67,168	64,090
Total equity capital	20,420	18,686	17,510	16,253	14,857

Equity capital certificate (MING)

Quarterly figures	4Q19	3Q19	2Q19	1Q19	4Q18	3Q18	2Q18	1Q18	4Q17
ECC price	100.20	98.50	97.70	87.40	84.20	90.90	84.50	80.90	82.25
Number of certificates issued, millions	129.30	129.48	129.66	129.41	129.62	129.44	129.31	129.38	129.38
Booked equity capital per ECC (incl. dividend)	90.75	89.36	87.04	83.86	83.87	82.57	80.21	76.53	78.81
Adjusted profit per ECC	1.60	2.30	3.21	5.02	1.90	2.32	3.54	2.21	2.63
P/E per ECC (annualised)	15.67	10.69	7.61	4.35	11.05	9.77	5.97	9.16	7.81
P/B equity capital	1.10	1.10	1.12	1.04	1.00	1.10	1.05	1.06	1.04

Five years	YTD 19	2018	2017	2016	2015
ECC price	100.20	84.20	82.25	64.75	50.50
Number of certificates issued, millions	129.30	129.62	129.38	129.64	129.43
Booked equity capital per ECC (incl. dividend)	90.75	83.87	78.81	73.35	67.39
Adjusted profit per ECC	12.14	9.97	8.71	7.93	6.96
P/E per ECC (annualised)	8.26	8.44	9.44	8.17	7.26
P/B equity capital	1.10	1.00	1.04	0.88	0.75

1.2 Credit Ratings

Moody's

[year end]	Current rating	2018	2017	2016	2015	2014	2013
Outlook	Stable	Negative	Negative	Stable	Stable	Negative	Stable
Issuer Rating	A1	A1	A1	A1	A1	A2	A2
Bank Deposits	A1/P-1	A1/ P-1	A1/ P-1	A1/ P-1	A1/ P-1	A2/ P-1	A2/ P-1
Senior Unsecured	A1	A1	A1	A1	A1	A2	A2
Subordinate	Baa2	Baa2	Baa2	Baa2	Baa2	Baa2	Baa3
Fitch
[year end]	Current rating	2018	2017	2016	2015	2014	2013
Outlook	Stable	Stable	Stable	Stable	Stable	Stable	Stable
Long-term IDR	A-	A-	A-	A-	A-	A-	A
Short-term IDR	F2	F2	F2	F2	F2	F2	F2
Support rating	5	5	5	3	3	3	3

1.3 Financial results and key figures

Financial results

Quarterly figures [NOK million]	4Q19	3Q19	2Q19	1Q19	4Q18	3Q18	2Q18	1Q18	4Q17
Interest income	1,235	1,190	1,127	1,075	1,082	1,025	989	962	989
Interest expenses	538	512	463	426	438	414	408	394	400
Net interest income	697	678	664	649	644	610	581	568	589
Commission income	371	374	363	329	343	344	361	339	372
Commission expenses	47	55	51	40	42	45	45	36	49
Other operating income	255	235	294	262	242	186	291	239	206
Commission income and other income	579	554	606	551	543	486	607	542	529
Dividends	1	1	11	2	2	0	4	2	0
Income from investment in related companies	8	85	231	555	130	105	102	79	147
Net return on financial investments	8	35	95	169	-37	77	195	99	108
Net return on financial investments	17	121	336	727	95	182	300	180	256
Total income	1,292	1,353	1,607	1,926	1,282	1,277	1,488	1,290	1,374
Staff costs	411	404	438	447	391	376	413	403	362
Other operating expenses	309	269	263	257	311	240	248	241	255
Total operating expenses	720	673	701	704	701	616	661	645	618
Result before losses	572	680	907	1,223	580	661	827	645	756
Loss on loans, guarantees etc.	103	71	59	67	67	69	78	48	78
Result before tax	469	609	848	1,155	513	592	748	596	678
Tax charge	123	121	165	109	104	119	156	131	122
Results investments held for sale, after tax	0	0	0	0	-8	6	150	1	-4
Net profit	346	488	683	1,046	401	480	743	466	553

Attributable to additional Tier 1 Capital holders	10	10	10	19	9	7	9	11	8
Majority share	324	467	650	1,017	386	470	716	447	533
Minority interest	12	11	22	10	6	2	19	8	12

Five years [NOK million]	YTD 19	2018	2017	2016	2015
Interest income	4,626	4,057	3,825	3,597	4,031
Interest expenses	1,939	1,655	1,600	1,668	2,111
Net interest	2,687	2,403	2,225	1,929	1,920
Commission income	1,437	1,387	1,390	1,251	1,245
Commission expenses	193	168	168	133	135
Other operating income	1,046	958	783	556	435
Commission income and other income	2,290	2,177	2,005	1,674	1,545
Dividends	15	8	6	88	25
Income from investment in related companies	879	416	437	423	448
Net return on financial investments	307	334	317	434	-14
Net return on financial investments	1,201	757	760	944	459
Total income	6,178	5,337	4,989	4,547	3,924
Staff costs	1,699	1,584	1,426	1,159	1,093
Other operating expenses	1,098	1,040	943	844	838
Total operating expenses	2,797	2,624	2,369	2,003	1,931
Result before losses	3,380	2,713	2,621	2,544	1,993
Loss on loans, guarantees etc.	299	263	341	516	169
Result before tax	3,081	2,450	2,279	2,029	1,824
Tax charge	518	509	450	352	383
Results investments held for sale, after tax	0	149	-1	4	-1
Net profit	2,563	2,090	1,828	1,681	1,441

Attributable to additional Tier 1 Capital holders	49	37	33	34	35
Majority share	2,458	2,018	1,763	1,606	1,410
Minority interest	56	34	32	41	-4

Balance sheet

	31 Dec	30 Sep	30 Jun	31 Mar	31 Dec	30 Sep	30 Jun	31 Mar	31 Dec
Quarterly figures [NOK million]	2019	2019	2019	2019	2018	2018	2018	2018	2017
Cash and receivables from central banks	761	1,279	1,278	647	883	1,129	1,403	635	3,313
Deposits with and loans to credit institutions	2,110	4,432	8,612	8,387	5,074	6,828	5,078	6,113	4,214
Net loans to and receivables from customers	125,279	123,037	121,025	119,285	119,728	117,153	114,683	112,119	110,959
Fixed-income CDs and bonds at fair value	23,115	21,125	19,870	20,806	20,348	19,721	18,640	18,797	19,736
Derivatives	2,972	4,052	3,767	3,181	4,119	2,686	2,910	3,278	4,351
Shares, units and other equity interests	2,953	2,386	2,202	2,015	1,873	2,662	2,540	2,164	1,825
Investment in related companies	6,468	6,487	6,406	6,386	6,098	5,865	5,748	5,879	5,760
Investments held for sale	40	41	41	42	43	44	48	639	649
Intangible assets	872	876	878	846	851	849	842	819	793
Other assets	2,092	2,760	3,210	3,047	1,687	2,401	7,692	1,641	1,654
Assets	166,662	166,475	167,289	164,641	160,704	159,337	159,584	152,083	153,254
Deposits from credit institutions	8,853	8,942	11,793	11,601	9,214	10,106	9,889	8,374	9,607
Deposits from and debt to customers	85,917	83,641	86,553	81,111	80,615	77,529	80,343	75,937	76,476
Debt created by issue of securities	43,014	44,889	39,578	43,172	44,269	44,113	43,234	41,410	42,194
Derivatives	3,528	3,505	3,479	3,178	2,982	3,005	2,974	2,970	3,343
Other liabilities	2,841	3,339	4,172	4,632	2,670	3,264	2,962	3,832	1,923
Investments held for sale	0	0	0	0	1	0	8	0	1
Subordinated loan capital	2,090	2,254	2,263	2,273	2,268	2,668	2,189	2,195	2,201
Total liabilities	146,243	146,571	147,839	145,968	142,018	140,687	141,600	134,718	135,744
Equity capital certificate	2,597	2,597	2,597	2,597	2,597	2,597	2,597	2,597	2,597
Own holdings of ECCs	-11	-7	-3	-9	-4	-5	-11	-10	-8
Premium fund	895	895	895	895	895	895	895	895	895
Dividend equalisation fund	6,123	5,581	5,591	5,580	5,594	5,075	5,075	5,066	5,072
Recommended dividends	840	0	0	0	661	0	0	0	571
Provision for gifts	474	0	0	0	373	0	0	0	322
Ownerless capital	5,432	5,126	5,126	5,126	5,126	4,831	4,831	4,831	4,831
Unrealised gains reserve	189	155	155	155	155	126	126	126	126
Other equity capital	1,827	1,544	1,566	1,595	1,608	1,509	1,503	1,515	1,547
Hybrid capital	1,293	1,004	1,013	1,023	1,043	1,310	1,136	1,306	993
Result of the period	0	2,217	1,729	1,046	0	1,689	1,209	466	0
Minority interests	761	792	781	665	637	623	621	572	565
Total equity capital	20,420	19,904	19,450	18,673	18,686	18,650	17,984	17,365	17,510
Total liabilities and equity	166,662	166,475	167,289	164,641	160,704	159,337	159,584	152,083	153,254

Five years [NOK million]	YTD 19	2018	2017	2016	2015
Cash and receivables from central banks	761	883	3,313	315	3,270
Deposits with and loans to credit institutions	2,110	5,074	4,214	3,892	2,407
Net loans to and receivables from customers	125,279	119,728	110,959	101,354	93,415
Fixed-income CDs and bonds at fair value	23,115	20,348	19,736	17,557	15,752
Derivatives	2,972	4,119	4,351	4,752	7,524
Shares, units and other equity interests	2,953	1,873	1,825	1,542	1,485
Investment in related companies	6,468	6,098	5,760	5,638	5,522
Investments held for sale	40	43	649	15	16
Intangible assets	872	851	793	639	562
Other assets	2,092	1,687	1,654	2,376	1,962
Assets	166,662	160,704	153,254	138,080	131,914
Deposits from credit institutions	8,853	9,214	9,607	10,509	8,155
Deposits from and debt to customers	85,917	80,615	76,476	67,168	64,090
Debt created by issue of securities	43,014	44,269	42,194	36,317	35,154
Derivatives	3,528	2,982	3,343	4,074	5,414
Other liabilities	2,841	2,670	1,923	1,531	1,734
Investments held for sale	0	1	1	0	0
Subordinated loan capital	2,090	2,268	2,201	2,228	2,509
Total liabilities	146,243	142,018	135,744	121,827	117,056
Equity capital certificate	2,597	2,597	2,597	2,597	2,597
Own holdings of ECCs	-11	-4	-8	-4	-21
Premium fund	895	895	895	895	895
Dividend equalisation fund	6,123	5,594	5,072	4,487	3,790
Recommended dividends	840	661	571	389	292
Provision for gifts	474	373	322	220	40
Ownerless capital	5,432	5,126	4,831	4,499	4,106
Unrealised gains reserve	189	155	126	139	292
Other equity capital	1,827	1,608	1,547	1,656	1,597
Hybrid capital	1,293	1,043	993	950	950
Result of the period	0	0	0	0	0
Minority interests Total equity capital	761 20,420	637 18,686	565 17,510	425 16,253	318 14,857
Total liabilities and equity	166,662	160,704	153,254	138,080	131,914

Key figures

Quarterly figures	4Q19	3Q19	2Q19	1Q19	4Q18	3Q18	2Q18	1Q18	4Q17
Return on equity	7.1 %	10.2 %	14.9 %	23.3 %	9.0 %	11.1 %	17.9 %	11.2 %	13.4 %
Cost/income ratio group	56%	50%	44%	37%	55%	48%	44%	50%	45%
Cost/income ratio group, ex. financial inv.	56%	55%	55%	59%	59%	56%	56%	58%	55%
12-month cost growth	2.7 %	9.2 %	5.9 %	9.1 %	13.6 %	5.9 %	10.7 %	12.9 %	28.1 %
Gross loans to customers¹	167,777	165,380	163,627	161,091	160,317	157,825	154,790	151,065	148,784
Growth in loans last 12 months¹	6.3 %	6.8 %	5.7 %	6.6 %	7.8 %	7.3 %	7.6 %	7.9 %	8.2 %
Growth in loans this period¹	1.4 %	1.1 %	1.6 %	0.5 %	1.6 %	2.0 %	2.5 %	1.5 %	1.1 %
Deposits from customers	85,917	83,641	86,553	81,111	80,615	77,529	80,343	75,937	76,476
Growth in deposits last 12 months	10.8 %	4.1 %	7.7 %	6.8 %	5.4 %	6.1 %	6.3 %	8.2 %	13.9 %
Growth in deposits this period	2.7 %	-3.4 %	6.7 %	0.6 %	4.0 %	-3.5 %	5.8 %	-0.7 %	4.6 %
Deposit-to-loan ratio¹	51%	51%	53%	50%	50%	49%	52%	50%	51%
Total assets	166,662	166,475	167,289	164,641	160,704	159,337	159,584	152,083	153,254
Average total assets (quarterly)	166,569	166,882	165,965	162,673	160,021	159,460	155,833	152,668	150,083
FTEs, group	1,509	1,639	1,556	1,524	1,493	1,467	1,439	1,393	1,403
FTEs, parent bank	619	614	580	570	575	589	588	581	595
FTEs, subsidiaries	890	1,024	976	953	918	878	851	812	808
Number of branches	46	46	48	48	48	48	48	48	48
Lending margin	1.64	1.71	1.73	1.84	1.88	1.89	1.90	2.03	2.14
Deposit margin	0.43	0.36	0.29	0.24	0.19	0.12	0.12	0.04	-0.05
Net other operating income of total income	45%	41%	38%	29%	42%	38%	41%	42%	39%
Common Equity Tier 1 capital ratio	17.2 %	15.1 %	15.0 %	14.8 %	14.6 %	14.9 %	15.0 %	14.6 %	14.6 %
Tier 1 capital ratio	19.3 %	16.7 %	16.6 %	16.4 %	16.3 %	16.7 %	17.0 %	16.3 %	16.6 %
Capital ratio	21.6 %	18.9 %	18.8 %	18.6 %	18.5 %	19.2 %	19.0 %	18.2 %	18.6 %
Tier 1 capital	17,742	17,417	17,284	16,775	16,472	16,542	16,488	15,697	15,707
Total eligible capital	19,854	19,765	19,634	19,115	18,743	18,969	18,418	17,518	17,629
Liquidity Coverage Ratio (LCR) (%)	148%	181%	165%	180%	183%	150%	150%	162%	164%
Leverage ratio	7.5 %	7.4 %	7.5 %	7.4 %	7.4 %	7.5 %	7.4 %	7.3 %	7.2 %
Impairment losses ratio	0.25%	0.17%	0.14%	0.17%	0.17%	0.18%	0.20%	0.13%	0.22%
Non-performing commitm. as % of gross loans	0.26%	0.26%	0.22%	0.18%	0.19%	0.18%	0.18%	0.19%	0.19%
Other doubtfull commitm. as % of gross loans	1.00%	1.03%	1.00%	0.99%	0.86%	0.86%	0.95%	0.90%	0.80%
ECC price	100.20	98.50	97.70	87.40	84.20	90.90	84.50	80.90	82.25
Number of certificates issued, millions	129.30	129.48	129.66	129.41	129.62	129.44	129.31	129.38	129.38
Booked equity capital per ECC (incl. dividend)	90.75	89.36	87.04	83.86	83.87	82.57	80.21	76.53	78.81
Adjusted profit per ECC	1.60	2.30	3.21	5.02	1.90	2.32	3.54	2.21	2.63
P/E per ECC	15.67	10.69	7.61	4.35	11.05	9.77	5.97	9.16	7.81
P/B equity capital	1.10	1.10	1.12	1.04	1.00	1.10	1.05	1.06	1.04

¹ Including Sparebank1 Boligkreditt and Sparebank 1 Næringskreditt.

Five years	YTD 19	2018	2017	2016	2015
Return on equity	13.7 %	12.2 %	11.5 %	11.3 %	10.7 %
Cost/income ratio group	45%	49%	47%	44%	50%
Cost/income ratio group, ex. financial inv.	56%	57%	56%	56%	57%

12-month cost growth	6.6 %	10.8 %	18.3 %	3.7 %	7.9 %
Gross loans to customers¹	167,777	160,317	148,784	137,535	127,378
Growth in loans last 12 months¹	4.7 %	7.8 %	8.2 %	8.0 %	5.8 %
Growth in loans this period¹	4.7 %	7.8 %	8.2 %	8.0 %	5.8 %
Deposits from customers	85,917	80,615	76,476	67,168	64,090
Growth in deposits last 12 months	6.6 %	5.4 %	13.9 %	4.8 %	5.6 %
Growth in deposits this period	6.6 %	5.4 %	13.9 %	4.8 %	5.6 %
Deposit-to-loan ratio¹	51%	50%	51%	49%	50%
Total assets	166,662	160,704	153,254	138,080	131,914
Average total assets (quarterly)	165,154	156,992	145,948	137,060	128,355
FTEs, group	1,509	1,493	1,403	1,254	1,208
FTEs, parent bank	619	575	595	630	645
FTEs, subsidiaries	890	918	808	624	563
Number of branches	46	48	48	49	49
Lending margin	1.73	1.92	2.13	1.97	2.26
Deposit margin	0.33	0.12	0.00	0.09	-0.21
Net other operating income of total income	37%	41%	40%	37%	40%
Common Equity Tier 1 ratio	17.2 %	14.6 %	14.6 %	14.8 %	13.6 %
Core capital ratio	19.3 %	16.3 %	16.6 %	16.8 %	15.6 %
Capital adequacy ratio	21.6 %	18.5 %	18.6 %	19.2 %	18.3 %
Tier 1 capital	17,742	16,472	15,707	15,073	13,992
Total eligible capital	19,854	18,743	17,629	17,189	16,381
Liquidity Coverage Ratio (LCR) (%)	148%	183%	164%	129%	118%
Leverage ratio	7.5 %	7.4 %	7.2 %	7.4 %	6.7 %
Impairment losses ratio	0.18%	0.17%	0.24%	0.39%	0.14%
Non-performing commitm. as % of gross loans	0.26%	0.19%	0.19%	0.16%	0.16%
Other doubtfull commitm. as % of gross loans	1.00%	0.86%	0.80%	1.07%	0.31%
ECC price	100.20	84.20	82.25	64.75	50.50
Number of certificates issued, millions	129.30	129.62	129.38	129.64	129.43
Booked equity capital per ECC (incl. dividend)	90.75	83.87	78.81	73.35	67.39
Adjusted profit per ECC	12.14	9.97	8.71	7.93	6.96
P/E per ECC	8.26	8.44	9.44	8.17	7.26
P/B equity capital	1.10	1.00	1.04	0.88	0.75

¹ Including Sparebank1 Boligkreditt and Sparebank 1 Næringskreditt.

1.4 Net interest income

Net interest income

Quarterly figures [NOK million]	4Q19	3Q19	2Q19	1Q19	4Q18	3Q18	2Q18	1Q18	4Q17
Interest income	1,235	1,190	1,127	1,075	1,082	1,025	989	962	989
Interest expenses	538	512	463	426	438	414	408	394	400
Net interest income	697	678	664	649	644	610	581	568	589
As a percentage of total income	54%	50%	41%	34%	50%	48%	39%	44%	43%

Margins on loans sold to Sparebank 1 Boligkreditt and Sparebank 1 Næringskreditt are recorded as commision income. See part 1.5 Other income

Five years [NOK million]	YTD 19	2018	2017	2016	2015
Interest income	4,626	4,057	3,825	3,597	4,031
Interest expenses	1,939	1,655	1,600	1,668	2,111
Net interest income	2,687	2,403	2,225	1,929	1,920
As a percentage of total income	43%	45%	45%	42%	48%

Change in interest income from lending and deposits

Last 12 months [NOK million]	Volume	Margin	Total
Lending	111	-218	-107
Deposits	7	177	184
Total	118	-41	77

Change in net interest income

Last 12 months [NOK million]	4Q19	Change	4Q18
Net interest income	2,687	284	2,403
Lending volume		111
Lending margin		-218
Fees on lending		9
Deposit volume		7
Deposit margin		177
Subsidiaries		56
Equity capital		81
Funding and liquidity buffer		60

Margin development

Definition of margin: average customer interest rate minus 3 months nibor

				1,1 0,9 0,7
				0,5 Series1 0,3 Series2 0,1 -0,1
				-0,3 -0,5

Volume development

-0,05 0,05 0,15 0,25 0,35 0,45

Quarterly figures	4Q19	3Q19	2Q19	1Q19	4Q18	3Q18	2Q18	1Q18	4Q17
Lending volume	167.8	165.4	163.6	161.1	160.3	157.8	154.8	151.1	148.8
Deposits volume	85.9	83.6	86.6	81.1	80.6	77.5	80.3	75.9	76.5
Growth in loans last 12 months	6.3 %	6.8 %	5.7 %	6.6 %	7.8 %	7.3 %	7.6 %	7.9 %	8.2 %
Growth in deposits last 12 months	10.8 %	4.1 %	7.7 %	6.8 %	5.4 %	6.1 %	6.3 %	8.2 %	13.9 %

1.5 Other income

Commision and other income

Quarterly figures [NOK million]	4Q19	3Q19	2Q19	1Q19	4Q18	3Q18	2Q18	1Q18	4Q17
Guarantees	15	15	15	15	16	19	17	20	19
Commission Boligkreditt (cov. bonds)	90	90	86	83	87	77	86	99	100
Commission Næringskreditt (cov. bonds)	4	4	4	4	5	4	4	3	4
Commision of savings products	35	28	28	29	30	28	28	27	48
Real estate agency	57	65	74	56	48	58	71	49	46
Insurance	47	47	45	44	44	43	44	43	44
Payment transfers	106	110	93	85	95	94	89	82	95
Other	16	16	18	14	19	21	23	15	16
Total commisions income	371	374	363	329	343	344	361	339	372
Operating- and sales income real estate	36	34	40	29	24	31	41	29	23
Accounting services	102	92	147	131	93	78	126	114	83
Other operating income	118	109	106	103	125	77	125	96	99
Total other operating income	255	235	294	262	242	186	291	239	206
Commision expenses	47	55	51	40	42	45	45	36	49
Total commision and other income	579	554	606	551	543	486	607	542	529
As a percentage of total income	45%	41%	38%	29%	42%	38%	41%	42%	39%

Five years [NOK million]	YTD 19	2018	2017	2016	2015
Guarantees	59	72	80	76	80
Commission Boligkreditt (cov. bonds)	349	350	353	271	326
Commission Næringskreditt (cov. bonds)	16	16	17	12	8
Commision of savings products	117	113	115	74	68
Real estate agency	252	225	223	247	212
Insurance	183	174	172	159	156
Payment transfers	393	360	362	355	344
Other	67	78	67	57	50
Total commisions income	1,437	1,387	1,390	1,251	1,245
Operating- and sales income real estate	138	124	118	121	108
Accounting services	473	411	342	202	182
Other operating income	435	423	323	234	145
Total other operating income	1,046	958	783	556	435
Commision expenses	193	168	168	133	135
Total commision and other income	2,290	2,177	2,005	1,674	1,545
As a percentage of total income	37%	41%	40%	37%	40%

Distribution of commision income

Change in commision and other income

Last 12 months [NOK million]	4Q19	Change	4Q18
Commision and other income	2,290	113	2,177
Real estate agency		28
Other operating income		12
Operating- and sales income real estate		14
Accounting services		62
Insurance		9
Commission of savings products		5
Commission expenses		-25
Other		-11
Payments transfers		33
Guarantees		-13
Commission Boligkreditt (cov. bonds)		-1
Commission Næringskreditt (cov. bonds)		0

Net return on financial investments

including investments held for sale

4Q19	3Q19	2Q19	1Q19	4Q18	3Q18	2Q18	1Q18	4Q17
1	1	11	2	2	0	4	2	0
-12	40	186	38	99	72	81	36	134
0	0	0	460
0	3	8	14	-9	7	-8	3	-15
6	5	2	8	4	2	4	4	1
28	33	27	24	24	20	23	30	28
0	5	5	3	6	5	6	5	5
-5	-2	-2	12	-3	-3	-3	-3	-7
-10	-4	5	0	-1	-4	1	3	1
8	81	231	560	120	100	103	79	147
11	1	23	84	-48	26	113	5
-42	-26	15	32	5	-45	23	-59
40	29	40	23	-5	50	23	119
-8	4	-1	-4	1	1	-7	1
-2	4	-4	10	-13	11	8	4
-10	10	14	9	16	21	15	11
17	13	8	15	7	14	20	17
8	35	95	169	-37	77	195	99	108
16	117	336	732	85	177	301	180	256
1%	9%	21%	38%	7%	14%	20%	14%	19%

Five years [NOK million]	YTD 19	2018	2017	2016	2015
Dividends	15	8	6	88	25
SpareBank 1 Gruppen	252	289	349	317	251

Capital gain Fremtind Forsikring	460	0	0	0	0
SpareBank 1 Boligkreditt	26	-7	-41	-17	80
SpareBank 1 Næringskreditt	21	15	19	29	30
BN Bank	113	97	98	86	41
SpareBank 1 Kredittkort	13	23	15	24	21
SpareBank 1 Betaling	3	-12	-14	-27	-2
Other companies	-8	12	12	15	26
Income from inv. in associates and joint ventures	879	416	437	427	447
Capital gains shares	120	96	62	76
Gain on sertificates and bonds	-20	-77	58	-2
Gain on derivatives	132	187	148	280
Gain on financial instruments related to hedging	-9	-4	-46	-21
Gain on other financial instruments at fair value (FVO)	9	10	7	26
Foreign exchange gain	22	63	45	51
Gain on shares and derivatives in SB1 Markets	54	58	43	25
Net return on financial investments	307	334	317	434	-14
Total net return on financial investments	1,201	757	760	949	458
As percentage of total income	19%	14%	15%	21%	12%

Change in net return on financial investments

Last 12 months [NOK million]	4Q19	Change	4Q18
Net return on financial investments	1,201	443	757
Dividends		7
Income from investment in related companies		463
Capital gains shares		24
Gain on derivatives		-55
Gain on other financial instruments at fair value (FVO)		-1
Foreign exchange gain		-40
Gain on sertificates and bonds		56
Gain on shares and derivatives in SB1 Markets		-5
Gain on financial instruments related to hedging		-6

1.6.Operating expenses

Operating expenses

Quarterly figures [NOK million]	4Q19	3Q19	2Q19	1Q19	4Q18	3Q18	2Q18	1Q18	4Q17
Salaries	312	320	354	348	311	289	325	303	293
Pension costs (defined benefit plan)	28	26	24	27	12	24	30	29	6
Employer's insurance contributions	3	3	5	3	-4	4	5	5	4
Other personnel expenses	68	54	55	69	72	58	54	65	60
Total personnel expenses	411	404	438	447	391	376	413	403	362
IT costs	70	83	87	81	78	69	75	71	61
Postage and transportation services	5	8	6	5	5	4	5	4	5
Marketing	22	27	25	26	30	26	24	26	31
Depr./write-downs of fixed & intangible assets	42	41	44	46	32	23	14	29	28
Operating exp. on properties and premises	17	13	14	13	41	35	40	37	35
Other external services	66	50	41	36	50	36	38	28	37
Other operating expenses	88	47	46	50	74	47	53	47	60
Other expenses	309	269	263	257	311	240	248	241	255
Total operating expenses	720	673	701	704	701	616	661	645	618
Cost/income ratio	56%	50%	44%	37%	55%	48%	44%	50%	45%
Cost/income ratio ex financial investments	56%	55%	55%	59%	59%	56%	56%	58%	55%
12-month cost growth¹	2.7 %	9.2 %	5.9 %	9.1 %	13.6 %	5.9 %	10.7 %	12.9 %	28.1 %

¹ SpareBank 1 Regnskapshuset SMN's acquisition of a large accounting firm 1 January 2017 affects the 12 month cost growth in 2017. The 12 month cost growth in 2016 is affected by the consolidation of SpareBank 1 Markets as a subsidiary.

Five years [NOK million]	YTD 19	2018	2017	2016	2015
Salaries	1,334	1,228	1,107	991	833
Pension costs (defined benefit plan)	105	96	85	-20	71
Employer's insurance contributions	15	10	12	13	14
Other personnel expenses	245	249	223	175	176
Total personnel expenses	1,699	1,584	1,426	1,159	1,093
IT costs	321	293	266	252	240
Postage and transportation services	23	17	22	22	22
Marketing	101	106	104	98	96
Depr./write-downs of fixed & intangible assets	172	99	102	98	100
Operating exp. on properties and premises	57	153	118	109	105
Other external services	193	151	139	108	171
Other operating expenses	231	221	192	156	104
Other expenses	1,098	1,040	943	844	838
Total operating expenses	2,797	2,624	2,369	2,003	1,931
Cost/income ratio	45.3 %	49.2 %	47.5 %	44.0 %	50%
Cost/income ratio ex financial investments	56.2 %	57.3 %	56.0 %	55.6 %	57%
12-month cost growth	6.6 %	10.8 %	18.3 %	3.7 %	8%

Change in operating expenses

Last 12 months [NOK million]	4Q19	Change	4Q18
Operating expenses	2,797	174	2,624
Total personnel expenses		115
EDP and telecommunication expenses		29
Postage and transportation services		6
Marketing		-5
Depr./write-downs of fixed & intangible assets		73
Operating exp. on properties and premises		-96
Other external services		42
Other operating expenses		9

Employees- full time equivalents

¹ SpareBank 1 Markets has been a subsidiary of SpareBank 1 SMN since 1 April 2015. SpareBank 1 SMN's capital market activities, including 32 FTEs, were transferred to SpareBank 1 Markets as part of the transaction.

1.7 Loans to customers

Distribution of loans by industry

	31 Dec	30 Sep	30 Jun	31 Mar	31 Dec	30 Sep	30 Jun	31 Mar	31 Dec
Quarterly figures [NOK million]	2019	2019	2019	2019	2018	2018	2018	2018	2017
Agriculture and forestry	8,957	8,640	8,471	8,244	8,284	8,105	7,915	7,604	7,579
Fisheries	4,601	4,490	4,431	4,414	4,402	4,241	4,222	4,212	4,027
Fish farming	1,132	1,348	1,160	1,176	1,180	1,317	1,556	1,697	1,697
Manufacturing	2,595	3,097	3,118	3,507	3,787	3,158	2,794	3,129	3,157
Construction, power and water supply	3,970	3,719	3,678	3,703	3,661	3,536	3,349	3,622	3,419
Retail trade, hotels and restaurants	2,517	2,555	2,826	3,014	2,621	2,410	2,902	2,825	2,700
Maritime sector	4,660	4,678	4,667	4,609	4,227	4,372	4,706	4,533	4,639
Commercial Real Estate	14,878	14,530	14,726	14,915	15,168	14,737	14,623	14,366	14,348
Business services	2,146	2,053	2,088	2,060	2,162	2,463	2,195	2,203	2,260
Transport and other services provision	5,409	5,459	5,285	4,977	4,961	4,876	4,545	4,370	4,322
Public administration	12	14	15	15	55	23	19	243	240
Other sectors	1,863	2,026	2,036	1,720	1,679	1,955	1,852	1,823	1,699
Gross loans in corporate market	52,740	52,609	52,499	52,354	52,186	51,195	50,676	50,629	50,087
Retail customers	115,036	112,772	111,128	108,738	108,131	106,631	104,114	100,436	98,697
Gross loans incl. Boligkreditt and Næringskreditt	167,777	165,380	163,627	161,091	160,317	157,825	154,790	151,065	148,784
of which Boligkreditt	39,833	39,713	40,064	39,220	38,062	37,669	37,172	36,374	34,885
of which Næringskreditt	1,667	1,701	1,668	1,771	1,782	2,112	1,831	1,518	1,828
Gross loans in balance sheet	126,277	123,967	121,895	120,100	120,473	118,044	115,787	113,174	112,071

Share of volume, corporate market	31%	32%	32%	32%	33%	32%	33%	34%	34%
Share of volume, retail market	69%	68%	68%	68%	67%	68%	67%	66%	66%

Distribution of loans by industry

Credit risk classification in SpareBank 1 SMN

	Probability of default (%)		Corresponding rating class
Risk class	Low	High	Moody's
A	0.01	0.10	AAA - A3
B	0.10	0.25	Baa1 - Baa2
C	0.25	0.50	Baa3
D	0.50	0.75	Ba1
E	0.75	1.25	Ba2
F	1.25	2.50
G	2.50	5.00	Ba2 - B1
H	5.00	10.00	B1 - B2
I	10.00	99.99	B3 - caa3
J	Default
K	Written down

SB 1 SMN's risk classification system, where A represents the lowest risk and K the highest risk

Risk profile - Exposure at default

As of	EAD
31 December 2019	NOK billion	%
A	42.3	23.0 %
B	48.8	26.5 %
C	44.6	24.2 %
D	13.4	7.3 %
E	11.5	6.3 %
F	9.9	5.4 %
G	5.3	2.9 %
H	3.4	1.9 %
I	2.6	1.4 %
J	0.3	0.2 %
K	2.0	1.1 %

Exposure at default, EAD, is the share of the approved credit that is expected to be drawn at the time of any future default at the same time as there is a downturn in the market.

Risk profile, Exposure at default

Loans and guarantees by industry

As of		Very low	Low	Medium	High	Very high	Default and
31 December 2019	Total	risk	risk	risk	risk	risk	written down
Personal customers	113,709	95,430	11,688	4,073	947	1,237	334
Public administration	511	511	0	0	0	0	0
Agriculture and forestry	14,199	9,048	3,233	1,213	354	325	25
Fish farming industries	1,567	1,154	318	85	1	9	0
Manufacturing	3,233	619	767	1,090	243	479	35
Construction, power and water supply	5,036	1,141	902	2,362	473	106	52
Retail trade, hotels and restaurants	3,408	847	861	1,255	369	48	28
Maritime sector	1,222	427	250	210	335	0	0
Property management	15,223	10,129	2,417	1,981	330	291	76
Business services	4,339	940	2,014	1,179	119	44	43
Transport and other services	11,240	5,184	2,412	1,645	224	53	1,723
Finance	150	150	0	0	0	0	0
Other sectors	10,233	10,111	19	81	22	0	0
4Q19	184,071	135,691	24,880	15,174	3,417	2,593	2,315

Five years [NOK million]		Very low	Low	Medium	High	Very high	Default and
	Total	risk	risk	risk	risk	risk	written down
YTD 19	184,071	135,691	24,880	15,174	3,417	2,593	2,315
2018	176,188	127,106	24,974	16,833	3,379	2,189	1,707
2017	164,510	116,961	23,842	16,258	3,394	2,480	1,575
2016	155,065	108,123	21,643	18,875	2,766	1,702	1,956
2015	148,680	97,588	25,632	19,231	3,838	1,746	645

Write-downs on loans and guarantees

Quarterly figures [NOK million]	4Q19	3Q19	2Q19	1Q19	4Q18	3Q18	2Q18	1Q18
Change in provision for expected credit losses for
the period	81	60	44	61	22	58	61	9
Actual loan losses on commitments
exceeding provisions made	23	14	16	8	46	15	24	42
Recoveries on commitments previously
written-off	-2	-2	-2	-2	-1	-4	-7	-2
Write-downs on loans and guarantees¹	103	71	59	67	67	69	78	48
As % of gross loans incl. Boligkreditt	0.25%	0.17%	0.14%	0.17%	0.17%	0.18%	0.20%	0.13%

Five years [NOK million]	YTD 19	2018	2017	2016	2015
Change in provision for expected credit losses for
the period	246	150
Actual loan losses on commitments exceeding
provisions made	62	127
Recoveries on commitments previously
written-off	-8	-15
Write-downs on loans and guarantees¹	299	263
As % of gross loans incl. Boligkreditt	0.18%	0.17%

¹Provisions for expected credit losses on loans and guarantees are presented after implemantation of IFRS 9 from January 1, 2018, comparative figures for periodes before Q1 2018 have not been restated.

Loss on loans by segment

Gross non-performing and impaired

Quarterly figures [NOK million]	4Q19	3Q19	2Q19	1Q19	4Q18	3Q18	2Q18	1Q18	4Q17
Retail Market	9	12	5	6	-1	9	13	-3	2
Corporate Market	73	47	39	53	59	51	54	48	70
SMN Finans and other	19	13	15	8	10	10	11	4	6
Total loss on loans	103	71	59	67	67	69	78	48	78

Five years [NOK million]	YTD 19	2018	2017	2016	2015
Retail Market	32	17	5	13	11
Corporate Market	213	212	318	490	151
SMN Finans and other	54	34	18	14	6
Total loss on loans	299	263	341	516	169
Write-down ratio

Quarterly figures [NOK million]	4Q19	3Q19	2Q19	1Q19	4Q18	3Q18	2Q18	1Q18	4Q17
Non-performing commitments (gross)	429	424	356	288	310	284	275	289	284

Impaired commitments (gross) 1,680 1,700 1,641 1,591 1,372 1,365 1,477 1,358 1,184

commitments 2,109 2,123 1,998 1,880 1,682 1,649 1,752 1,647 1,468

1.8 Capital Markets funding

Parent bank

	31 Dec	30 Sep	30 Jun	31 Mar	31 Dec
Quarterly figures [NOK million]	2019	2019	2019	2019	2018
NOK bonds	13,315	14,772	15,024	14,977	15,548
Curr bonds	29,699	30,117	24,554	27,803	28,329
Curr CD's	0	0	0	392	391
Hybrid equity	1,538	1,454	1,457	1,459	1,463
Subordinated loan capital	1,759	1,753	1,762	1,770	1,761
Total capital markets funding	46,311	48,097	42,797	46,401	47,493

Funding maturity dates

1.9 Capital adequacy

Capital adequacy ratios

	31 Dec	30 Sep	30 Jun	31 Mar	31 Dec	30 Sep	30 Jun	31 Mar	31 Dec
Quarterly figures [NOK million]	2019	2019	2019	2019	2018	2018	2018	2018	2017
Common equity Tier 1 capital	15,830	15,758	15,625	15,122	14,727	14,697	14,528	13,976	13,820
Tier 1 capital	17,742	17,417	17,284	16,775	16,472	16,542	16,488	15,697	15,707
Total eligible capital	19,854	19,765	19,634	19,115	18,743	18,969	18,418	17,518	17,629
Risk-weighted assets (RWA)	91,956	104,464	104,240	102,495	101,168	98,915	97,137	96,044	94,807
Common equity Tier 1 ratio	17.2 %	15.1 %	15.0 %	14.8 %	14.6 %	14.9 %	15.0 %	14.6 %	14.6 %
Tier 1 capital ratio	19.3 %	16.7 %	16.6 %	16.4 %	16.3 %	16.7 %	17.0 %	16.3 %	16.6 %
Capital ratio	21.6 %	18.9 %	18.8 %	18.6 %	18.5 %	19.2 %	19.0 %	18.2 %	18.6 %

	YTD	31 Dec	31 Dec	31 Dec	31 Dec
Five years [NOK million]	2019	2018	2017	2016	2015
Common equity Tier 1 capital	15,830	14,727	13,820	13,233	12,196
Tier 1 capital	17,742	16,472	15,707	15,073	13,992
Total eligible capital	19,854	18,743	17,629	17,189	16,381
Risk-weighted assets (RWA)	91,956	101,168	94,807	88,786	89,465
Common equity Tier 1 ratio	17.2 %	14.6 %	14.6 %	14.8 %	13.6 %
Tier 1 capital ratio	19.3 %	16.3 %	16.6 %	16.8 %	15.6 %
Capital ratio	21.6 %	18.5 %	18.6 %	19.2 %	18.3 %

Leverage ratio
	31 Dec	30 Sep	30 Jun	31 Mar	31 Dec	30 Sep	30 Jun	31 Mar	31 Dec

Quarterly figures [NOK million]	2019	2019	2019	2019	2018	2018	2018	2018	2017
Calculation basis for leverage ratio	236,441	234,678	230,667	227,862	223,853	221,628	224,271	215,248	218,479
Tier 1 capital	17,742	17,417	17,284	16,775	16,472	16,542	16,488	15,697	15,707
Leverage ratio	7.5 %	7.4 %	7.5 %	7.4 %	7.4 %	7.5 %	7.4 %	7.3 %	7.2 %

	YTD	31 Dec	31 Dec	31 Dec	31 Dec
Five years [NOK million]	2019	2018	2017	2016	2015
Calculation basis for leverage ratio	236,441	223,853	218,479	203,005	209,145
Tier 1 capital	17,742	16,472	15,707	15,073	13,992

Leverage ratio 7.5 % 7.4 % 7.2 % 7.4 % 6.7 %

Spesification of capital requirements

Total eligible capital	19,854	19,765	19,634	19,115	18,743	18,969	18,418	17,518	17,629
Additional Tier 2 capital instruments	2,113	2,348	2,351	2,340	2,272	2,427	1,930	1,822	1,922
Deduction for significant investments in financial institutions	-140	-141	-141	-142	-140	-140	-141	-248	-254
Subordinated capital covered by transitional provisions	12	179	182	184	96	449	449	449	561
Subordinated capital	2,240	2,310	2,310	2,298	2,316	2,118	1,621	1,621	1,615
Tier 1 capital	17,742	17,417	17,284	16,775	16,472	16,542	16,488	15,697	15,707
Additional Tier 1 capital instruments covered by transitional provisions	275	275	275	275	367	367	367	367	459
Addtional Tier 1 capital instruments	1,637	1,384	1,384	1,377	1,378	1,478	1,592	1,353	1,427
Common equity Tier 1 capital	15,830	15,758	15,625	15,122	14,727	14,697	14,528	13,976	13,820
Deduction for commom equity Tier 1 capital in significant investments in financial institutions	-168	-183	-175	-333	-206	-147	-74	-222	-212
Cash flow hedge reserve	3	5	5	5	5	2	4	3	7
Positive value of adj. expected loss under IRB Approach	-351	-383	-309	-303	-286	-316	-299	-313	-333
tax of group profit in 2017) Value adjustments due to requirements for prudent valuation	0 -45	1,128 -44	879 -44	537 -43	0 -44	864 -47	614 -46	233 -45	0 -41
Year-to-date profit included in core capital (50 per cent pre
Net profit	0	-2,217	-1,729	-1,046	0	-1,689	-1,209	-466	0
Non-controlling interests eligible for incl. in CET1 capital	438	450	447	392	366	371	357	341	324
Non-controlling interests recognised in other equity capital	-761	-792	-781	-665	-637	-623	-621	-572	-565
Deduction for allocated dividends and gifts	-1,314	0	0	0	-1,034	0	0	0	-893
Deferred taxes, goodwill and other intangible assets	-1,099	-1,106	-1,105	-1,073	-1,079	-1,059	-1,044	-1,040	-984
Additional Tier 1 capital instruments included in total equity	-1,293	-1,004	-1,013	-1,023	-1,043	-1,310	-1,136	-1,306	-993
Total book equity	20,420	19,904	19,450	18,673	18,686	18,650	17,984	17,365	17,510
Capital adequacy
Quarterly figures [NOK million]	2019	2019	2019	2019	2018	2018	2018	2018	2017
	31 Dec	30 Sep	30 Jun	31 Mar	31 Dec	30 Sep	30 Jun	31 Mar	31 Dec

	31 Dec	30 Sep	30 Jun	31 Mar	31 Dec	30 Sep	30 Jun	31 Mar	31 Dec
Quarterly figures [NOK million]	2019	2019	2019	2019	2018	2018	2018	2018	2017
Minimum requirements subordinated capital
Specialised enterprises	1,101	1,128	1,094	1,106	1,116	1,107	1,072	1,200	1,107
Corporate	1,149	1,194	1,163	1,161	1,163	1,181	1,128	1,070	1,113
Mass market exposure, mortgages	2,299	2,169	2,166	2,126	2,098	2,070	2,010	1,930	1,892
Other mass market	101	106	102	97	92	94	96	92	91
Equity investments, IRB	1	1	1	1	1	1	1	1	1
Total credit risk IRB	4,651	4,597	4,525	4,491	4,470	4,453	4,307	4,292	4,205
Central government	3	2	3	3	4	3	2	3	3
Covered bonds	132	149	136	135	124	145	146	142	146
Institutions	282	301	300	269	246	217	262	285	333
Local and regional authorities, state-owned enterprises	5	5	8	10	8	10	9	7	4
Corporate	239	237	237	251	221	241	255	236	226
Mass market	463	532	525	536	520	510	438	419	405
Exposures secured on real property	167	200	207	211	215	181	195	199	193
Equity positions	377	371	369	365	366	358	359	349	344
Other assets	151	157	167	169	107	109	128	150	166
Total credit risk standardised approach	1,818	1,955	1,952	1,949	1,810	1,774	1,796	1,791	1,820
Debt risk	34	27	35	45	31	33	23	25	18
Equity risk	15	6	14	12	7	24	11	14	22
Currency risk	3	3	3	3	3	3	4	4	1
Operational risk	720	656	656	654	575	575	575	575	510
Credit value adjustment risk (CVA)	115	130	122	118	122	80	110	119	117
Transitional arrangements	0	983	1,032	929	1,074	971	946	863	891
Minimum requirements subordinated capital	7,357	8,357	8,339	8,200	8,093	7,913	7,771	7,684	7,585
Risk-weighted assets (RWA)	91,956	104,464	104,240	102,495	101,168	98,915	97,137	96,044	94,807
Minimum requirement on CET1 capital, 4.5 per cent	4,138	4,701	4,691	4,612	4,553	4,451	4,371	4,322	4,266
Capital conservation buffer, 2,5 per cent	2,299	2,612	2,606	2,562	2,529	2,473	2,428	2,401	2,370
Systemic risk buffer, 3.0 per cent	2,759	3,134	3,127	3,075	3,035	2,967	2,914	2,881	2,844
Countercyclical buffer, 2.0 per cent (1.5 per cent)	2,299	2,089	2,085	2,050	2,023	1,978	1,943	1,921	1,896
Available CET1 capital after buffer requirements	4,335	3,222	3,116	2,823	2,587	2,827	2,872	2,451	2,444

Common equity Tier 1 capital ratio	17.2 %	15.1 %	15.0 %	14.8 %	14.6 %	14.9 %	15.0 %	14.6 %	14.6 %
Tier 1 capital ratio	19.3 %	16.7 %	16.6 %	16.4 %	16.3 %	16.7 %	17.0 %	16.3 %	16.6 %
Total eligible capital	21.6 %	18.9 %	18.8 %	18.6 %	18.5 %	19.2 %	19.0 %	18.2 %	18.6 %

Leverage ratio
Balance sheet items	230,048	228,285	223,781	221,200	216,240	213,761	216,406	207,831	210,764
Off-balance sheet items	7,897	7,939	8,343	8,262	9,086	9,595	9,345	9,530	9,295
Regulatory adjustments	-1,503	-1,546	-1,458	-1,600	-1,474	-1,729	-1,480	-2,113	-1,580
Calculation basis for leverage ratio	236,441	234,678	230,667	227,862	223,853	221,628	224,271	215,248	218,479
Tier 1 capital	17,742	17,417	17,284	16,775	16,472	16,542	16,488	15,697	15,707

Leverage ratio	7.5 %	7.4 %	7.5 %	7.4 %	7.4 %	7.5 %	7.4 %	7.3 %	7.2 %

	YTD	31 Dec	31 Dec	31 Dec	31 Dec
Five years [NOK million]	2019	2018	2017	2016	2015
Capital adequacy
Total book equity	20,420	18,686	17,510	16,253	14,857
Hybrid capital included in total equity	-1,293	-1,043	-993	-950	-950
Deferred taxes, goodwill and other intangible assets	-1,099	-1,079	-984	-741	-662
Part of reserve for unrealised gains, associated companies	0	0	0	117	264
Deduction for allocated dividends and gifts	-1,314	-1,034	-893	-609	-332
Non-controlling interests recognised in other equity capital	-761	-637	-565	-425	-318
Non-controlling interests eligible for inclusion in CET1 capital	438	366	324	220	132
Net profit	0	0	0	0	-43
Year-to-date profit included in core capital (50 per cent pre tax of group profit in 2017)	0	0	0	0	0
Value adjustments due to requirements for prudent valuation	-45	-44	-41	-48	0
Positive value of adjusted expected loss under IRB Approach	-351	-286	-333	-248	-55
Adjustments for unrealised losses (gains) arising from the institution's own credit risk related to derivative liabilities
(DVA)	3	5	7	0	-239
Direct, indirect and synthetic investments in financial sector companies	-168	-206	-212	-337	-458
Common equity Tier 1 capital	15,830	14,727	13,820	13,233	12,196
Hybrid capital, core capital	1,637	1,378	1,427	1,358	1,301
Hybrid capital covered by transitional provisions	275	367	459	483	495
Tier 1 capital	17,742	16,472	15,707	15,073	13,992
Subordinated capital	2,240	2,316	1,615	1,698	1,647
Subordinated capital covered by transitional provisions	12	96	561	673	786
Deduction for significant investments in financial institutions	-140	-140	-254	-256	-43
Additional Tier 2 capital instruments	2,113	2,272	1,922	2,116	2,390
Total eligible capital	19,854	18,743	17,629	17,189	16,381

	YTD	31 Dec	31 Dec	31 Dec	31 Dec
Five years [NOK million]	2019	2018	2017	2016	2015
Minimum requirements subordinated capital
Specialised enterprises	1,101	1,116	1,107	1,206	1,213
Corporate	1,149	1,163	1,113	1,102	1,105
Mass market exposure, mortgages	2,299	2,098	1,892	1,753	1,709
Other mass market	101	92	91	88	55
Equity investments, IRB	1	1	1	3	0
Total credit risk IRB	4,651	4,470	4,205	4,153	4,082
Central government	3	4	3	5	5
Covered bonds	132	124	146	130	62
Institutions	282	246	333	340	480
Local and regional authorities, state-owned enterprises	5	8	4	7	13
Corporate	239	221	226	253	262
Mass market	463	520	405	179	136
Exposures secured on real property	167	215	193	342	416
Equity positions	377	366	344	338	322
Other assets	151	107	166	178	108
Total credit risk standardised approach	1,818	1,810	1,820	1,772	1,805
Debt risk	34	31	18	36	64
Equity risk	15	7	22	5	10
Currency risk	3	3	1	1	0
Operational risk	720	575	510	479	457
Credit value adjustment risk (CVA)	115	122	117	84	106
Transitional arrangements	0	1,074	891	574	634
Minimum requirements subordinated capital	7,357	8,093	7,585	7,103	7,157
Risk-weighted assets (RWA)	91,956	101,168	94,807	88,786	89,465

Minimum capital requirement, transitional rules 4.5 per cent	4,138	4,553	4,266	3,995	4,026
Capital conservation buffer, 2,5 per cent	2,299	2,529	2,370	2,220	2,237
Systemic risk buffer, 3.0 per cent	2,759	3,035	2,844	2,664	2,684
Countercyclical buffer, 2.0 per cent (1.5 per cent)	2,299	2,023	1,896	1,332	895
Available CET1 capital after buffer requirements	4,335	2,587	2,444	3,022	2,355
Common equity Tier 1 ratio	17.2 %	14.6 %	14.6 %	14.8 %	13.6 %
Tier 1 capital ratio	19.3 %	16.3 %	16.6 %	16.8 %	15.6 %
Capital ratio	21.6 %	18.5 %	18.6 %	19.2 %	18.3 %

Leverage ratio
Balance sheet items	230,048	216,240	210,764	194,324	198,616
Off-balance sheet items	7,897	9,086	9,295	10,068	12,017
Regulatory adjustments	-1,503	-1,474	-1,580	-1,388	-1,487
Calculation basis for leverage ratio	236,441	223,853	218,479	203,005	209,145
Tier 1 capital	17,742	16,472	15,707	15,073	13,992

Leverage ratio	7.5 %	7.4 %	7.2 %	7.4 %	6.7 %

2.1 Extract from income statement^¹

						SB 1
					Eiendoms	Finans	SB 1
Group	31 December	Retail	Corporate	SB1	megler 1	Midt	Regnskaps	SB 1		Un
[in NOK million] as of	2019	Market	Market	Markets	Midt- Norge	Norge	huset SMN	Gruppen	BN Bank	collated²	Total
Net interest		1,160	1,024	-17	-1	313	0	0	0	207	2,687
Allocated		211	147	0	0	0	0	0	0	-358	0
Total interest income		1,372	1,171	-17	-1	313	0	0	0	-151	2,687
Commission income and other income		805	205	509	540	73	502	0	0	-345	2,290
Net profit on financial investments		0	12	117	0	0	0	252	107	714	1,201
Total income		2,177	1,388	609	540	386	502	252	107	218	6,178
Total operating expenses		875	410	566	538	184	394	0	0	-169	2,797
Ordinary operating profit		1,302	978	43	1	202	108	252	107	386	3,380
Loss on loans, guarantees etc.		32	213	0	0	52	0	0	0	2	299
Result before tax		1,270	765	43	1	150	108	252	107	384	3,081
Post- tax return on equity³		13.1 %	11.7 %								13.7 %
Main balance sheet items
Loans and advances to customers adv. of this to Boligkreditt and		119,381	40,162	0	0	8,897	0	0	0	-663	167,777
Næringskreditt		-40,122	-1,378	0	0	0	0	0	0	0	-41,500
Loss on loans		-119	-819	0	0	-56	0	0	0	-4	-998
Other assets		220	5,495	3,669	309	21	527	1,609	1,425	28,109	41,384
Total assets		79,360	43,460	3,669	309	8,861	527	1,609	1,425	27,442	166,662
Deposits to customers		41,639	42,756	0	0	0	0	0	0	1,522	85,917
Other liabilities and equity		37,721	704	3,669	309	8,861	527	1,609	1,425	25,920	80,745
Total liabilites		79,360	43,460	3,669	309	8,861	527	1,609	1,425	27,442	166,662

¹For the subsidiaries the figures refer to the respective company accounts, while for joint ventures incorporated by the equity method the Group's profit share is stated, after tax, as well as book value of the investment at group level.

²Uncollated consist of, among other things, return on financial investments in parent bank, net profit on the bank's funding activities and gain on the establishment of Fremtind.

³Calculation of capital employed in Retail Banking and Corporate Banking is based on regulatory capital. This capital is grossed up to 15.0 percent to be in line with the capital plan.

Development in interest income, Retail Market and Corporate Market

Quarterly figures [NOK million]	4Q19	3Q19	2Q19	1Q19	4Q18	3Q18	2Q18	1Q18	4Q17
Retail	298	301	283	278	288	270	244	254	266
Corporate	267	253	256	247	251	253	245	232	247
Net interest income	566	554	539	526	540	523	489	486	512

Development in margin¹, Retail Market and Corporate Market

Quarterly figures [percentage]	4Q19	3Q19	2Q19	1Q19	4Q18	3Q18	2Q18	1Q18	4Q17
Lending
Retail	1.40	1.49	1.50	1.60	1.63	1.64	1.65	1.79	1.96
Corporate	2.52	2.52	2.56	2.69	2.73	2.75	2.73	2.71	2.75
Total	1.64	1.71	1.73	1.84	1.88	1.89	1.90	2.03	2.14
Quarterly figures [percentage]	4Q19	3Q19	2Q19	1Q19	4Q18	3Q18	2Q18	1Q18	4Q17

Deposits
Retail	0.75	0.66	0.59	0.46	0.39	0.27	0.28	0.14	0.03
Corporate	0.14	0.09	0.03	0.02	-0.02	-0.05	-0.04	-0.05	-0.13
Total	0.43	0.36	0.29	0.24	0.19	0.12	0.12	0.04	-0.05

¹Definition margin: Average customer interest minus 3 months average Nibor

Development in volume, Retail Market and Corporate Market

Quarterly figures [NOK million]	4Q19	3Q19	2Q19	1Q19	4Q18	3Q18	2Q18	1Q18	4Q17
Lending²
Retail	119,381	116,882	115,289	113,040	112,723	111,207	108,702	104,999	103,131
Corporate	40,162	40,502	38,422	38,881	40,548	39,716	39,452	39,821	39,482
Total	159,543	157,384	153,711	151,921	153,271	150,923	148,154	144,821	142,613

²Gross loans to customers includes SpareBank 1 Boligkreditt and SpareBank 1 Næringskreditt

Total	84,395	82,216	85,169	80,206	79,282	77,079	78,762	75,169	75,902
Corporate	42,756	40,542	42,374	39,471	39,236	37,201	38,390	37,358	38,719
Retail	41,639	41,674	42,795	40,734	40,046	39,879	40,372	37,811	37,182
Deposits
Quarterly figures [NOK million]	4Q19	3Q19	2Q19	1Q19	4Q18	3Q18	2Q18	1Q18	4Q17

Development in commision income, Retail Market and Corporate Market

Quarterly figures [NOK million]	4Q19	3Q19	2Q19	1Q19	4Q18	3Q18	2Q18	1Q18	4Q17
Retail	208	212	197	188	203	193	193	204	213
Corporate	60	52	49	56	54	63	51	51	47
Total	269	263	246	244	257	256	244	255	260

2.2 Retail market

Business description

	31 Dec
Facts about the business area	2019
Lending volume	119,381
Deposits volume	41,639
No. of active cutomers	226,422
FTEs	353

Financial performance

Quarterly figures [NOK million]	4Q19	3Q19	2Q19	1Q19	4Q18	3Q18	2Q18	1Q18	4Q17
Net interest income lending	136	150	147	156	169	155	135	165	164
Net interest income deposits	157	148	134	123	113	111	107	89	96
Net interest income allocated capital	64	53	53	52	52	50	46	43	58
Total interest income	357	351	334	330	334	316	288	296	318
Net guarantee commission, incl BK, NK	102	102	99	94	99	89	98	108	109
Net commission of savings products	22	21	14	14	22	21	17	15	21
Net commission insurance services	40	40	39	38	38	37	38	38	39
Net commission payment trans. services	44	48	45	42	45	45	39	43	44
Other commision income	0	1	0	0	0	0	1	0	1
Net fee and commission income	208	212	197	188	203	193	193	204	214
Net profit on financial investments	0	0	0	0	0	0	0	0	0
Total income	565	563	532	518	537	509	481	501	531
Total operating expenses¹	221	222	215	217	207	199	200	199	197
Result before losses	344	341	317	301	330	310	281	302	335
Loss on loans, guarantees etc.	9	11	6	6	-1	8	13	-3	2
Result before tax	335	330	311	295	332	301	268	305	332

Post- tax return on equity (annualized)²	13.1 %	13.2 %	16.6 %	13.8 %	15.8 %
Result before tax	1,270	1,206	1,127	849	873
Loss on loans, guarantees etc.	32	17	5	13	11
Result before losses	1,302	1,223	1,132	861	884
Total operating expenses¹	875	804	794	770	779
Total income	2,177	2,027	1,926	1,631	1,663
Net profit on financial investments	0	0	0	-1	1
Net fee and commission income	805	793	789	679	715
Other commision income	1	1	1	1	0
Net commission payment trans. services	179	172	175	171	165
Net commission insurance services	158	151	151	139	135
Net commission of savings products	70	75	70	63	55
Net guarantee commission, incl BK, NK	397	394	392	306	360
Total interest income	1,372	1,234	1,137	953	948
Net interest income allocated capital	221	190	154	57	41
Net interest income deposits	561	419	411	438	286
Net interest income lending	589	624	572	457	621
Five years [NOK million]	2019	2018	2017	2016	2015
	YTD	31 Dec	31 Dec	31 Dec	31 Dec

¹ Includes both direct and distributed expences

² Calculation of capital employed in Retail Banking and Corporate Banking is based on regulatory capital. This capital is grossed up to 15.0 (14.5) percent to be in line with the capital plan.

-0,5 -0,3