SpareBank 1 SMN

Investor Presentation • May 7, 2021

Investor Relations Supplementary Information

2021 Q1

Contact information

CEO Jan-Frode Janson

For further information, please contact

CFO Kjell Fordal kjell.fordal@smn.no +47 905 41 672

Address

Switchboard +47 915 07 300

SpareBank1 SMN Postboks 4796 Sluppen, 7467 Trondheim 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 2021

2nd quarter 11 August 2021 3rd quarter 29 October 2021

Major changes from Q1 2021

One SMN

One SMN is central to achieving the group's strategy in the period to 2023, and provides the basis for a united and forward-looking group. Overarching objectives are an improved customer experience, a strengthened market position and improved profitability. A profit improvement of NOK 400m before tax is targeted through increased synergies, increased revenues, cost efficiencies and improved capital utilization.

Sustainability

In December 2020 the board of directors of SpareBank 1 SMN adopted a new strategy for sustainability. SpareBank 1 SMN aims through a responsible business model to stimulate sustainable development in the region by being a

• 1. Driver for the green transition
• 1. Partner for the inclusive development of society
• 1. Guide to building a responsible business culture

The group prioritizes five key areas for 2021 as a first step in its transition plan for the period to 2030. The key areas are innovation, customer offering, climate footprint, competence and diversity.

Table of Contents

1 SpareBank 1 SMN

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
				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	26
	Balance sheet	11		Loss on loans by segment	26
	Key figures	13
1.4	Net interest income	15	1.8	Funding and liquidity	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 Net return on financial investments 19 Change in net return on financial investments 20

2 Segment information 3 Appendix

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

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
Credit ratings	8	1.7 Loans to customers	23
Moody's	8	Distribution of loans by industry	23
		Credit risk classification in SpareBank 1 SMN	24
		Risk profile - Exposure At Default	24
Financial results and key figures	9	Loans and guarantees by industry	25
Financial results	9	Write-downs on loans and guarantees	26
Balance sheet	11	Loss on loans by segment	26
Key figures	13
Net interest income	15	1.8 Funding and liquidity	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
Other income	17	Spesification of capital requirements	29
Commision and other income	17

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

1.1 Financial highlights

January - March 2021
Profit before tax and inv. held for sale	901	NOK million		357
Net profit	768	NOK million		290
Return on equity	14.8	per cent		5.7
Annual lending growth	8.5	per cent		6.0
Annual deposits growth	16.2	per cent		8.7
Loan losses	59	NOK million		308
CET1 ratio	18.0	per cent		16.3
Earnings per EC	3.40	NOK		1.26
Q1 2021			Q1	2020
Profit before tax and inv. held for sale	901	NOK million		357
Net profit	768	NOK million		290
Return on equity	14.8	per cent		5.7
Loan losses	59	NOK million		308
Earnings per EC	3.40	NOK		1.26

Main figures

Quarterly figures [NOK million]	1Q21	4Q20	3Q20	2Q20	1Q20	4Q19	3Q19	2Q19	1Q19
Net interest	668	688	695	666	710	697	678	664	649
Commission income and other income	808	757	638	607	570	579	554	606	551
Net return on financial investments	289	197	205	448	101	17	121	336	727
Total income	1,766	1,642	1,538	1,721	1,381	1,292	1,353	1,607	1,926
Total operating expenses	806	845	685	706	716	720	673	701	704
Result before losses	960	797	853	1,015	665	572	680	907	1,223
Loss on loans, guarantees etc.	59	242	231	170	308	103	71	59	67
Result before tax	901	554	621	845	357	469	609	848	1,155
Tax charge	133	104	102	126	67	123	121	165	109
Results investments held for sale, after tax	0	0	0	0	0	0	0	0	0
Net profit	768	450	519	719	290	346	488	683	1,046

Five years [NOK million]	YTD 21	2020	2019	2018	2017
Net interest	668	2,759	2,687	2,403	2,225
Commission income and other income	808	2,572	2,290	2,177	2,005
Net return on financial investments	289	951	1,201	757	760
Total income	1,766	6,281	6,178	5,337	4,989
Total operating expenses	806	2,952	2,797	2,624	2,369
Result before losses	960	3,329	3,380	2,713	2,621
Loss on loans, guarantees etc.	59	951	299	263	341
Result before tax	901	2,378	3,081	2,450	2,279
Tax charge	133	400	518	509	450
Results investments held for sale, after tax	0	1	0	149	-1
Net profit	768	1,978	2,563	2,090	1,828

Balance sheet - condensed

	31 Mar	31 Dec	30 Sep	30 Jun	31 Mar	31 Dec	30 Sep	30 Jun	31 Mar
Quarterly figures [NOK million]	2021	2020	2020	2020	2020	2019	2019	2019	2019
Total assets	193,822	187,912	186,900	190,484	185,182	166,662	166,475	167,289	164,641
Average total assets (quarterly)	190,867	187,406	188,692	187,833	175,922	166,569	166,882	165,965	162,673
Gross loans to customers ¹	185,342	182,801	179,423	175,100	170,771	167,777	165,380	163,627	161,091
Deposits from customers	102,390	97,529	95,391	94,289	88,152	85,917	83,641	86,553	81,111
Total equity capital	21,734	21,310	20,829	20,320	19,600	20,420	19,904	19,450	18,673

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

Five years [NOK million]	YTD 21	2020	2019	2018	2017
Total assets	193,822	187,912	166,662	160,704	153,254
Average total assets	190,867	183,428	165,154	160,021	150,083
Gross loans to customers ¹	185,342	182,801	167,777	160,317	148,784
Deposits from customers	102,390	97,529	85,917	80,615	76,476
Total equity capital	21,734	21,310	20,420	18,686	17,510

Equity capital certificate (MING)

Quarterly figures	1Q21	4Q20	3Q20	2Q20	1Q20	4Q19	3Q19	2Q19	1Q19
ECC price	107.40	97.60	84.30	78.30	67.60	100.20	98.50	97.70	87.40
Number of certificates issued, millions	129.22	129.39	129.44	129.39	129.22	129.30	129.48	129.66	129.41
Booked equity capital per ECC (incl. dividend)	96.70	94.71	92.73	90.37	86.85	90.75	89.36	87.04	83.86
Adjusted profit per ECC	3.40	1.99	2.35	3.27	1.26	1.60	2.30	3.21	5.02
P/E per ECC (annualised)	7.91	12.28	8.96	5.98	13.46	15.67	10.69	7.61	4.35
P/B equity capital	1.11	1.03	0.91	0.87	0.78	1.10	1.10	1.12	1.04
Five years	YTD 21	2020	2019	2018	2017
ECC price	107.40	97.60	100.20	84.20	82.25
Number of certificates issued, millions	129.22	129.39	129.30	129.62	129.38
Booked equity capital per ECC (incl. dividend)	96.70	94.71	90.75	83.87	78.81
Adjusted profit per ECC	3.40	8.87	12.14	9.97	8.71
P/E per ECC (annualised)	7.91	11.01	8.26	8.44	9.44
P/B equity capital	1.11	1.03	1.10	1.00	1.04

1.2 Credit Rating

Moody's

[year end]	Current rating	2020	2019	2018	2017	2016	2015
Outlook	Stable	Stable	Stable	Negative	Negative	Stable	Stable
Issuer Rating	A1	A1	A1	A1	A1	A1	A1
Bank Deposits	A1/P-1	A1/P-1	A1/P-1	A1/ P-1	A1/ P-1	A1/ P-1	A1/ P-1
Senior Preferred	A1	A1	A1	A1	A1	A1	A1
Senior non-preferred	Baa1
Subordinate	Baa2	Baa2	Baa2	Baa2	Baa2	Baa2	Baa2

1.3 Financial results and key figures

Financial results

Quarterly figures [NOK million]	1Q21	4Q20	3Q20	2Q20	1Q20	4Q19	3Q19	2Q19	1Q19
Interest income	939	945	971	1,031	1,250	1,235	1,190	1,127	1,075
Interest expenses	271	258	276	365	540	538	512	463	426
Net interest income	668	688	695	666	710	697	678	664	649
Commission income	392	416	414	331	349	371	374	363	329
Commission expenses	51	58	52	47	50	47	55	51	40
Other operating income	468	399	277	323	271	255	235	294	262
Commission income and other income	808	757	638	607	570	579	554	606	551
Dividends	4	27	2	2	8	1	1	11	2
Income from investment in related companies	128	117	170	177	217	8	85	231	555
Net return on financial investments	158	53	32	269	-124	8	35	95	169
Net return on financial investments	289	197	205	448	101	17	121	336	727
Total income	1,766	1,642	1,538	1,721	1,381	1,292	1,353	1,607	1,926
Staff costs	538	570	422	449	443	411	404	438	447
Other operating expenses	269	275	263	258	273	309	269	263	257
Total operating expenses	806	845	685	706	716	720	673	701	704
Result before losses	960	797	853	1,015	665	572	680	907	1,223
Loss on loans, guarantees etc.	59	242	231	170	308	103	71	59	67
Result before tax	901	554	621	845	357	469	609	848	1,155
Tax charge	133	104	102	126	67	123	121	165	109
Results investments held for sale, after tax	0	0	0	0	0	0	0	0	0
Net profit	768	450	519	719	290	346	488	683	1,046
Attributable to additional Tier 1 Capital holders	20	10	11	14	24	10	10	10	19
Majority share	687	402	476	661	254	324	467	650	1,017
Minority interest	61	38	33	43	12	12	11	22	10

Five years [NOK million]	YTD 21	2020	2019	2018	2017
Interest income	939	4,197	4,626	4,057	3,825
Interest expenses	271	1,439	1,939	1,655	1,600
Net interest	668	2,759	2,687	2,403	2,225
Commission income	392	1,510	1,437	1,387	1,390
Commission expenses	51	207	193	168	168
Other operating income	468	1,269	1,046	958	783
Commission income and other income	808	2,572	2,290	2,177	2,005
Dividends	4	39	15	8	6
Income from investment in related companies	128	681	879	416	437
Net return on financial investments	158	230	307	334	317
Net return on financial investments	289	951	1,201	757	760
Total income	1,766	6,281	6,178	5,337	4,989
Staff costs	538	1,883	1,699	1,584	1,426
Other operating expenses	269	1,069	1,098	1,040	943
Total operating expenses	806	2,952	2,797	2,624	2,369
Result before losses	960	3,329	3,380	2,713	2,621
Loss on loans, guarantees etc.	59	951	299	263	341
Result before tax	901	2,378	3,081	2,450	2,279
Tax charge	133	400	518	509	450
Results investments held for sale, after tax	0	1	0	149	-1
Net profit	768	1,978	2,563	2,090	1,828
Attributable to additional Tier 1 Capital holders	20	59	49	37	33
Majority share	687	1,793	2,458	2,018	1,763
Minority interest	61	126	56	34	32

Balance sheet

Total liabilities and equity	193,822	187,912	186,900	190,484	185,182	166,662	166,475	167,289	164,641
Total equity capital	21,734	21,310	20,829	20,320	19,600	20,420	19,904	19,450	18,673
Minority interests	891	838	800	768	760	761	792	781	665
Result of the period	768	0	1,528	1,008	290	0	2,217	1,729	1,046
Hybrid capital	1,273	1,293	1,244	1,254	1,268	1,293	1,004	1,013	1,023
Other equity capital	2,282	2,366	1,729	1,757	1,760	1,827	1,544	1,566	1,595
Unrealised gains reserve	239	239	189	189	189	189	155	155	155
Ownerless capital	5,664	5,664	5,541	5,541	5,541	5,432	5,126	5,126	5,126
Provision for gifts	226	321	0	0	0	474	0	0	0
Recommended dividends	401	569	0	0	0	840	0	0	0
Dividend equalisation fund	6,511	6,536	6,314	6,320	6,311	6,123	5,581	5,591	5,580
Premium fund	895	895	895	895	895	895	895	895	895
Own holdings of ECCs	-12	-9	-8	-9	-12	-11	-7	-3	-9
Equity capital certificate	2,597	2,597	2,597	2,597	2,597	2,597	2,597	2,597	2,597
Total liabilities	172,088	166,602	166,070	170,164	165,582	146,243	146,571	147,839	145,968
Subordinated loan capital	1,795	1,795	1,796	1,797	2,071	2,090	2,254	2,263	2,273
Investments held for sale	0	1	1	1	1	0	0	0	0
Other liabilities	3,584	3,084	2,738	5,459	4,900	2,841	3,339	4,172	4,632
Derivatives	4,879	7,179	8,415	8,644	8,004	3,528	3,505	3,479	3,178
Debt created by issue of securities	47,273	43,919	46,144	46,129	49,303	43,014	44,889	39,578	43,172
Deposits from and debt to customers	102,390	97,529	95,391	94,289	88,152	85,917	83,641	86,553	81,111
Deposits from credit institutions	12,166	13,095	11,586	13,845	13,150	8,853	8,942	11,793	11,601
Assets	193,822	187,912	186,900	190,484	185,182	166,662	166,475	167,289	164,641
Other assets	2,754	2,457	2,459	3,335	2,810	2,092	2,760	3,210	3,047
Intangible assets	889	905	881	873	876	872	876	878	846
Investments held for sale	40	41	42	42	40	40	41	41	42
Investment in related companies	7,374	7,324	7,017	6,810	6,652	6,468	6,487	6,406	6,386
Shares, units and other equity interests	2,051	2,366	1,890	1,673	1,437	2,953	2,386	2,202	2,015
Derivatives	4,395	7,226	10,309	10,069	11,757	2,972	4,052	3,767	3,181
Fixed-income CDs and bonds at fair value	30,875	26,606	26,375	28,955	27,395	23,115	21,125	19,870	20,806
Net loans to and receivables from customers	135,919	133,131	132,183	129,360	126,128	125,279	123,037	121,025	119,285
Deposits with and loans to credit institutions	9,487	5,091	2,517	5,252	2,239	2,110	4,432	8,612	8,387
Cash and receivables from central banks	37	2,764	3,227	4,115	5,848	761	1,279	1,278	647
Quarterly figures [NOK million]	2021	2020	2020	2020	2020	2019	2019	2019	2019
	31 Mar	31 Dec	30 Sep	30 Jun	31 Mar	31 Dec	30 Sep	30 Jun	31 Mar

Five years [NOK million]	YTD 21	2020	2019	2018	2017
Cash and receivables from central banks	37	2,764	761	883	3,313
Deposits with and loans to credit institutions	9,487	5,091	2,110	5,074	4,214
Net loans to and receivables from customers	135,919	133,131	125,279	119,728	110,959
Fixed-income CDs and bonds at fair value	30,875	26,606	23,115	20,348	19,736
Derivatives	4,395	7,226	2,972	4,119	4,351
Shares, units and other equity interests	2,051	2,366	2,953	1,873	1,825
Investment in related companies	7,374	7,324	6,468	6,098	5,760
Investments held for sale	40	41	40	43	649
Intangible assets	889	905	872	851	793
Other assets	2,754	2,457	2,092	1,687	1,654
Assets	193,822	187,912	166,662	160,704	153,254
Deposits from credit institutions	12,166	13,095	8,853	9,214	9,607
Deposits from and debt to customers	102,390	97,529	85,917	80,615	76,476
Debt created by issue of securities	47,273	43,919	43,014	44,269	42,194
Derivatives	4,879	7,179	3,528	2,982	3,343
Other liabilities	3,584	3,084	2,841	2,670	1,923
Investments held for sale	0	1	0	1	1
Subordinated loan capital	1,795	1,795	2,090	2,268	2,201
Total liabilities	172,088	166,602	146,243	142,018	135,744
Equity capital certificate	2,597	2,597	2,597	2,597	2,597
Own holdings of ECCs	-12	-9	-11	-4	-8
Premium fund	895	895	895	895	895
Dividend equalisation fund	6,511	6,536	6,123	5,594	5,072
Recommended dividends	401	569	840	661	571
Provision for gifts	226	321	474	373	322
Ownerless capital	5,664	5,664	5,432	5,126	4,831
Unrealised gains reserve	239	239	189	155	126
Other equity capital	2,282	2,366	1,827	1,608	1,547
Hybrid capital	1,273	1,293	1,293	1,043	993
Result of the period	768	0	0	0	0
Minority interests	891	838	761	637	565
Total equity capital	21,734	21,310	20,420	18,686	17,510
Total liabilities and equity	193,822	187,912	166,662	160,704	153,254

Key figures

Quarterly figures	1Q21	4Q20	3Q20	2Q20	1Q20	4Q19	3Q19	2Q19	1Q19
Return on equity	14.8 %	8.9 %	10.5 %	15.1 %	5.7 %	7.1 %	10.2 %	14.9 %	23.3 %
Cost/income ratio group	46%	51%	45%	41%	52%	56%	50%	44%	37%
Cost/income ratio group, ex. financial inv.	55%	58%	51%	55%	56%	56%	55%	55%	59%
Cost/income ratio parent bank	143.3 %	143.3 %	143.3 %	143.3 %	143.3 %	143.3 %	143.3 %	143.3 %	143.3 %
Cost/income ratio parent, ex. financial inv.	244.6 %	244.6 %	244.6 %	244.6 %	244.6 %	244.6 %	244.6 %	244.6 %	244.6 %
12-month cost growth	12.6 %	17.4 %	1.8 %	0.8 %	1.8 %	2.3 %	9.2 %	5.9 %	9.1 %
Gross loans to customers¹	185,342	182,801	179,423	175,100	170,771	167,777	165,380	163,627	161,091
Growth in loans last 12 months¹	10.5 %	9.0 %	8.5 %	7.0 %	6.0 %	6.3 %	6.8 %	5.7 %	6.6 %
Growth in loans this period¹	1.4 %	1.9 %	2.5 %	2.5 %	1.8 %	1.4 %	1.1 %	1.6 %	0.5 %
Deposits from customers	102,390	97,529	95,391	94,289	88,152	85,917	83,641	86,553	81,111
Growth in deposits last 12 months	16.2 %	13.5 %	14.0 %	8.9 %	8.7 %	10.8 %	4.1 %	7.7 %	6.8 %
Growth in deposits this period	5.0 %	2.2 %	1.2 %	7.0 %	2.6 %	2.7 %	-3.4 %	6.7 %	0.6 %
Deposit-to-loan ratio¹	55%	53%	53%	54%	52%	51%	51%	53%	50%
Total assets	193,822	187,912	186,900	190,484	185,182	166,662	166,475	167,289	164,641
Average total assets (quarterly)	190,867	187,406	188,692	187,833	175,922	166,569	166,882	165,965	162,673
FTEs, group	1,544	1,560	1,528	1,515	1,553	1,509	1,639	1,556	1,524
FTEs, parent bank	637	660	640	631	630	619	614	580	570
FTEs, subsidiaries	907	899	888	884	923	890	1,024	976	953
Number of branches	42	45	46	46	46	46	46	48	48
Lending margin	1.84	1.93	2.09	2.24	1.86	1.64	1.71	1.73	1.84
Deposit margin	-0.05	-0.11	-0.21	-0.37	0.27	0.43	0.36	0.29	0.24
Net other operating income of total income	46%	46%	41%	35%	41%	45%	41%	38%	29%
Common Equity Tier 1 capital ratio	18.0 %	18.3 %	17.6 %	17.2 %	16.3 %	17.2 %	15.1 %	15.0 %	14.8 %
Tier 1 capital ratio	19.7 %	20.0 %	19.2 %	18.9 %	18.0 %	19.3 %	16.7 %	16.6 %	16.4 %
Capital ratio	21.9 %	22.3 %	21.4 %	21.1 %	20.1 %	21.6 %	18.9 %	18.8 %	18.6 %
Tier 1 capital	18,636	18,636	18,290	18,182	17,792	17,742	17,417	17,284	16,775
Total eligible capital	20,741	20,759	20,373	20,266	19,879	19,854	19,765	19,634	19,115
Liquidity Coverage Ratio (LCR) (%)	190%	171%	140%	163%	185%	148%	181%	165%	180%
Leverage ratio	7.0 %	7.1 %	7.1 %	6.9 %	6.9 %	7.5 %	7.4 %	7.5 %	7.4 %
Impairment losses ratio	0.13%	0.54%	0.52%	0.39%	0.73%	0.25%	0.17%	0.14%	0.17%
Stage 3 as a percentage of gross loans	1.66%	1.23%	1.30%	1.35%	1.61%	1.26%	1.28%	1.22%	1.17%
ECC price	107.40	97.60	84.30	78.30	67.60	100.20	98.50	97.70	87.40
Number of certificates issued, millions	129.22	129.39	129.44	129.39	129.22	129.30	129.48	129.66	129.41
Booked equity capital per ECC (incl. dividend)	96.70	94.71	92.73	90.37	86.85	90.75	89.36	87.04	83.86
Adjusted profit per ECC	3.40	1.99	2.35	3.27	1.26	1.60	2.30	3.21	5.02
P/E per ECC	7.91	12.28	8.96	5.98	13.46	15.67	10.69	7.61	4.35
P/B equity capital	1.11	1.03	0.91	0.87	0.78	1.10	1.10	1.12	1.04

¹ Including Sparebank1 Boligkreditt and Sparebank 1 Næringskreditt.

Five years	YTD 21	2020	2019	2018	2017
Return on equity	14.8 %	10.0 %	13.7 %	12.2 %	11.5 %
Cost/income ratio group	46%	47%	45%	49%	47%
Cost/income ratio group, ex. financial inv.	55%	55%	56%	57%	56%
12-month cost growth	12.6 %	5.5 %	6.6 %	10.8 %	18.3 %
Gross loans to customers¹	185,342	182,801	167,777	160,317	148,784
Growth in loans last 12 months¹	8.5 %	9.0 %	4.7 %	7.8 %	8.2 %
Growth in loans this period¹	1.4 %	9.0 %	4.7 %	7.8 %	8.2 %
Deposits from customers	102,390	97,529	85,917	80,615	76,476
Growth in deposits last 12 months	16.2 %	13.5 %	6.6 %	5.4 %	13.9 %
Growth in deposits this period	5.0 %	13.5 %	6.6 %	5.4 %	13.9 %
Deposit-to-loan ratio¹	55%	53%	51%	50%	51%
Total assets	193,822	187,912	166,662	160,704	153,254
Average total assets (quarterly)	190,867	183,428	165,154	156,992	145,948
FTEs, group	1,544	1,560	1,509	1,493	1,403
FTEs, parent bank	637	660	619	575	595
FTEs, subsidiaries	907	899	890	918	808
Number of branches	42	45	46	48	48
Lending margin	1.84	2.02	1.73	1.92	2.13
Deposit margin	-0.05	-0.09	0.33	0.12	0.00
Net other operating income of total income	46%	41%	37%	41%	40%
Common Equity Tier 1 ratio	18.0 %	18.3 %	17.2 %	14.6 %	14.6 %
Core capital ratio	19.7 %	20.0 %	19.3 %	16.3 %	16.6 %
Capital adequacy ratio	21.9 %	22.3 %	21.6 %	18.5 %	18.6 %
Tier 1 capital	18,636	18,636	17,742	16,472	15,707
Total eligible capital	20,741	20,759	19,854	18,743	17,629
Liquidity Coverage Ratio (LCR) (%)	190%	171%	148%	183%	164%
Leverage ratio	7.0 %	7.1 %	7.5 %	7.4 %	7.2 %
Impairment losses ratio	0.13%	0.54%	0.18%	0.17%	0.24%
Stage 3 as a percentage of gross loans	1.66%	1.23%	1.26%	1.05%
ECC price	107.40	97.60	100.20	84.20	82.25
Number of certificates issued, millions	129.22	129.39	129.30	129.62	129.38
Booked equity capital per ECC (incl. dividend)	96.70	94.71	90.75	83.87	78.81
Adjusted profit per ECC	3.40	8.87	12.14	9.97	8.71
P/E per ECC	7.91	11.01	8.26	8.44	9.44
P/B equity capital	1.11	1.03	1.10	1.00	1.04

¹ Including Sparebank1 Boligkreditt and Sparebank 1 Næringskreditt.

1.4 Net interest income

Net interest income

Quarterly figures [NOK million]	1Q21	4Q20	3Q20	2Q20	1Q20	4Q19	3Q19	2Q19	1Q19
Interest income	939	945	971	1,031	1,250	1,235	1,190	1,127	1,075
Interest expenses	271	258	276	365	540	538	512	463	426
Net interest income	668	688	695	666	710	697	678	664	649
As a percentage of total income	38%	42%	45%	39%	51%	54%	50%	41%	34%

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 21	2020	2019	2018	2017
Interest income	939	4,197	4,626	4,057	3,825
Interest expenses	271	1,439	1,939	1,655	1,600
Net interest income	668	2,759	2,687	2,403	2,225
As a percentage of total income	38%	44%	43%	45%	45%

Change in interest income from lending and deposits

Last 12 months [NOK million]	Volume	Margin	Total
Lending	39	13	51
Deposits	9	-80	-71
Total	48	-68	-20

Change in net interest income

Last 12 months [NOK million]	1Q21	Change	1Q20
Net interest income	668	-42	710
Lending volume		39
Lending margin		13
Fees on lending		3
Deposit volume		9
Deposit margin		-80
Subsidiaries		18
Equity capital		-53
Funding and liquidity buffer		10

Margin development

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

Volume development

Quarterly figures	1Q21	4Q20	3Q20	2Q20	1Q20	4Q19	3Q19	2Q19	1Q19
Lending volume	185.3	182.8	179.4	175.1	170.8	167.8	165.4	163.6	161.1
Deposits volume	102.4	97.5	95.4	94.3	88.2	85.9	83.6	86.6	81.1
Growth in loans last 12 months	10.5 %	9.0 %	8.5 %	7.0 %	6.0 %	6.3 %	6.8 %	5.7 %	6.6 %
Growth in deposits last 12 months	16.2 %	13.5 %	14.0 %	8.9 %	8.7 %	10.8 %	4.1 %	7.7 %	6.8 %

1.5 Other income

Commision and other income

Quarterly figures [NOK million]	1Q21	4Q20	3Q20	2Q20	1Q20	4Q19	3Q19	2Q19	1Q19
Guarantees	18	10	16	16	16	15	15	15	15
Commission Boligkreditt (cov. bonds)	112	136	128	57	88	90	90	86	83
Commission Næringskreditt (cov. bonds)	4	4	4	2	4	4	4	4	4
Commision of savings products	33	37	30	31	25	35	28	28	29
Real estate agency	67	61	72	66	52	57	65	74	56
Insurance	52	51	49	48	47	47	47	45	44
Payment transfers	91	101	97	90	102	106	110	93	85
Other	15	16	18	21	16	16	16	18	14
Total commisions income	392	416	414	331	349	371	374	363	329
Operating- and sales income real estate	36	32	40	39	31	36	34	40	29
Accounting services	148	111	105	141	148	102	92	147	131
Other operating income	284	256	132	143	91	118	109	106	103
Total other operating income	468	399	277	323	271	255	235	294	262
Commision expenses	51	58	52	47	50	47	55	51	40
Total commision and other income	808	757	638	607	570	579	554	606	551
As a percentage of total income	46%	46%	41%	35%	41%	45%	41%	38%	29%

Five years [NOK million]	YTD 21	2020	2019	2018	2017
Guarantees	18	58	59	72	80
Commission Boligkreditt (cov. bonds)	112	408	349	350	353
Commission Næringskreditt (cov. bonds)	4	13	16	16	17
Commision of savings products	33	123	117	113	115
Real estate agency	67	251	252	225	223
Insurance	52	195	183	174	172
Payment transfers	91	390	393	360	362
Other	15	71	67	78	67
Total commisions income	392	1,510	1,437	1,387	1,390
Operating- and sales income real estate	36	142	138	124	118
Accounting services	148	506	473	411	342
Other operating income	284	622	435	423	323
Total other operating income	468	1,269	1,046	958	783
Commision expenses	51	207	193	168	168
Total commision and other income	808	2,572	2,290	2,177	2,005
As a percentage of total income	46%	41%	37%	41%	40%

Distribution of commision income

Change in commision and other income

Last 12 months [NOK million]	1Q21	Change	1Q20
Commision and other income	808	239	570
Real estate agency		15
Other operating income		192
Operating- and sales income real estate		5
Accounting services		-1
Insurance		5
Commission of savings products		7
Commission expenses		-1
Other		-1
Payments transfers		-10
Guarantees		2
Commission Boligkreditt (cov. bonds)		24
Commission Næringskreditt (cov. bonds)		0

Net return on financial investments

including investments held for sale

1Q21	4Q20	3Q20	2Q20	1Q20	4Q19	3Q19	2Q19	1Q19
4	27	2	2	8	1	1	11	2
67	87	114	109	-115	-12	40	186	38
0	0	0	0	340	0	0	0	460
4	-4	11	41	-31	0	4	8	14
3	5	5	7	2	6	5	2	8
40	36	34	27	23	28	33	27	24
0	0	0	2	0	0	5	5	3
-1	1	-1	1	-2	-5	-3	-2	12
14	-9	8	-9	0	-10	1	5	-4
128	117	170	177	217	8	85	231	555
102	-3	4	36	-42	11	1	23	84
-84	-62	-8	124	50	-42	-26	15	32
105	110	19	51	-148	40	29	40	23
-11	1	4	2	-6	-8	4	-1	-4
10	2	-2	45	-57	-2	4	-4	10
15	3	11	4	65	-10	10	14	9
20	2	5	7	14	17	13	8	15
158	53	32	269	-124	8	35	95	169
289	197	204	448	101	17	121	336	727
16%	12%	13%	26%	7%	1%	9%	21%	38%

Five years [NOK million]	YTD 21	2020	2019	2018	2017
Dividends	4	39	15	8	6
SpareBank 1 Gruppen	67	194	252	289	349
Capital gain Fremtind Forsikring	0	340	460	0	0
SpareBank 1 Boligkreditt	4	18	26	-7	-41
SpareBank 1 Næringskreditt	3	18	21	15	19
BN Bank	40	120	113	97	98
SpareBank 1 Kreditt	0	2	13	23	15
SpareBank 1 Betaling	-1	-2	3	-12	-14
Other companies	14	-10	-8	12	12
Income from inv. in associates and joint ventures	128	681	879	416	437
Capital gains shares	102	-4	120	96	62
Gain on sertificates and bonds	-84	103	-20	-77	58
Gain on derivatives	105	32	132	187	148
Gain on financial instruments related to hedging	-11	1	-9	-4	-46
Gain on other financial instruments at fair value (FVO)	10	-11	9	10	7
Foreign exchange gain	15	82	22	63	45
Gain on shares and derivatives in SB1 Markets	20	28	54	58	43
Net return on financial investments	158	230	307	334	317
Total net return on financial investments	289	951	1,201	757	760
As percentage of total income	16%	15%	19%	14%	15%

Change in net return on financial investments

Last 12 months [NOK million]	1Q21	Change	1Q20
Net return on financial investments	289	188	101
Dividends		-4
Income from investment in related companies		-89
Capital gains shares		144
Gain on derivatives		253
Gain on other financial instruments at fair value (FVO)		67
Foreign exchange gain		-49
Gain on sertificates and bonds		-134
Gain on shares and derivatives in SB1 Markets		6
Gain on financial instruments related to hedging		-6

1.6 Operating expenses

Operating expenses

Quarterly figures [NOK million]	1Q21	4Q20	3Q20	2Q20	1Q20	4Q19	3Q19	2Q19	1Q19
Salaries	421	480	336	372	340	312	320	354	348
Pension costs (defined benefit plan)	26	26	29	26	26	28	26	24	27
Employer's insurance contributions	4	4	5	4	4	3	3	5	3
Other personnel expenses	87	60	52	47	74	68	54	55	69
Total personnel expenses	538	570	422	449	443	411	404	438	447
IT costs	89	84	83	87	86	70	83	87	81
Postage and transportation services	3	2	5	6	5	5	8	6	5
Marketing	20	15	18	17	24	22	27	25	26
Depr./write-downs of fixed & intangible assets	54	45	40	40	42	42	41	44	46
Operating exp. on properties and premises	18	22	16	15	9	17	13	14	13
Other external services	47	56	57	55	53	66	50	41	36
Other operating expenses	38	52	44	38	53	88	47	46	50
Other expenses	269	275	263	258	273	309	269	263	257
Total operating expenses	806	845	685	706	716	720	673	701	704
Cost/income ratio	46%	51%	45%	41%	52%	56%	50%	44%	37%
Cost/income ratio ex financial investments	55%	58%	51%	55%	56%	56%	55%	55%	59%
12-month cost growth¹	12.6 %	17.4 %	1.8 %	0.8 %	1.8 %	2.3 %	9.2 %	5.9 %	9.1 %

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 21	2020	2019	2018	2017
Salaries	421	1,528	1,334	1,228	1,107
Pension costs (defined benefit plan)	26	107	105	96	85
Employer's insurance contributions	4	16	15	10	12
Other personnel expenses	87	232	245	249	223
Total personnel expenses	538	1,883	1,699	1,584	1,426
IT costs	89	340	321	293	266
Postage and transportation services	3	19	23	17	22
Marketing	20	73	101	106	104
Depr./write-downs of fixed & intangible assets	54	166	172	99	102
Operating exp. on properties and premises	18	62	57	153	118
Other external services	47	221	193	151	139
Other operating expenses	38	187	231	221	192
Other expenses	269	1,069	1,098	1,040	943
Total operating expenses	806	2,952	2,797	2,624	2,369
Cost/income ratio	46%	47%	45%	49%	47%
Cost/income ratio ex financial investments	55%	55%	56%	57%	56%
12-month cost growth	12.6 %	5.5 %	6.6 %	10.8 %	18.3 %

Change in operating expenses

Last 12 months [NOK million]	1Q21	Change	1Q20
Operating expenses	806	90	716
Total personnel expenses		95
EDP and telecommunication expenses		3
Postage and transportation services		-3
Marketing		-4
Depr./write-downs of fixed & intangible assets		11
Operating exp. on properties and premises		9
Other external services		-6
Other operating expenses		-14

Employees- full time equivalents

FTE's	1Q21	2020	2019	2018	2017
Parent bank	637	660	619	575	595
EiendomsMegler 1 Midt-Norge AS	257	227	230	309	251
SpareBank 1 Markets¹	159	166	164	149	132
SpareBank 1 Regnskapshuset SMN AS	434	443	435	402	349
SpareBank 1 Finans Midt-Norge AS	50	34	34	34	32
DeBank	0	22	19
Other	8	8	8	24	44
Total number of FTE's	1,544	1,560	1,509	1,493	1,403

1.7 Loans to customers

Distribution of loans by industry

	31 Mar	31 Dec	30 Sep	30 Jun	31 Mar	31 Dec	30 Sep	30 Jun	31 Mar
Quarterly figures [NOK million]	2021	2020	2020	2020	2020	2019	2019	2019	2019
Agriculture and forestry	9,568	9,591	9,442	9,220	8,946	8,947	8,640	8,471	8,244
Fisheries	5,362	5,259	4,872	5,104	4,907	4,611	4,490	4,431	4,414
Fish farming	2,268	2,100	1,790	1,258	1,053	1,132	1,348	1,160	1,176
Manufacturing	2,848	2,646	2,369	2,390	2,255	2,595	3,097	3,118	3,507
Construction, power and water supply	4,016	4,077	4,087	3,795	3,837	3,970	3,719	3,678	3,703
Retail trade, hotels and restaurants	2,832	2,586	2,649	2,578	2,607	2,517	2,555	2,826	3,014
Maritime sector	4,822	4,537	4,787	5,006	5,177	4,660	4,678	4,667	4,609
Commercial Real Estate	16,595	15,509	15,215	14,753	14,689	14,878	14,530	14,726	14,915
Business services	3,434	3,423	3,014	2,840	2,158	2,146	2,053	2,088	2,060
Transport and other services provision	6,298	6,942	6,994	6,636	6,379	5,409	5,459	5,285	4,977
Public administration	29	33	29	26	17	12	14	15	15
Other sectors	1,757	1,638	1,645	1,632	1,742	1,863	2,026	2,036	1,720
Gross loans in corporate market	59,830	58,340	56,893	55,238	53,767	52,740	52,609	52,499	52,354
Retail customers	125,512	124,461	122,529	119,861	117,004	115,036	112,772	111,128	108,738
Gross loans incl. Boligkreditt and Næringskreditt	185,342	182,801	179,423	175,100	170,771	167,777	165,380	163,627	161,091
of which Boligkreditt	46,337	46,613	44,160	43,073	41,972	39,833	39,713	40,064	39,220
of which Næringskreditt	1,533	1,540	1,622	1,400	1,526	1,667	1,701	1,668	1,771
Gross loans in balance sheet	137,471	134,648	133,640	130,627	127,272	126,277	123,967	121,895	120,100
Share of volume, corporate market	32%	32%	32%	32%	31%	31%	32%	32%	32%
Share of volume, retail market	68%	68%	68%	68%	69%	69%	68%	68%	68%

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 March 2021	NOK billion	%
A	47.3	23.3 %
B	53.9	26.6 %
C	49.7	24.5 %
D	16.4	8.1 %
E	13.2	6.5 %
F	9.8	4.8 %
G	5.6	2.7 %
H	2.6	1.3 %
I	1.6	0.8 %
J	1.0	0.5 %
K	1.9	0.9 %

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.

Loans and guarantees by industry

As of		Very low	Low	Medium	High	Very high	Default and
31 March 2021	Total	risk	risk	risk	risk	risk	written down
A - Agriculture, fishery and forestry	20,195	10,407	7,420	1,688	418	204	58
B - Mining and quarrying	35	11	4	4	13	2	1
C - Manufacturing	3,550	1,122	670	1,266	321	58	114
D - Electricity, gas, steam and air conditioning supply	354	255	95	0	0	0	4
E - Water supply, sewerage and waste management	86	17	21	33	0	14	1
F - Construction	4,373	976	866	1,895	391	41	204
G - Retail trade, repair of motor vehicles	3,180	915	984	1,060	135	45	42
H - Transportation and storage	10,433	4,148	3,186	1,450	24	97	1,527
I - Accommodation and catering	712	317	154	162	27	45	5
J - Information and communication	998	714	155	108	13	5	3
K - Financing and insurance activities	3,358	2,006	310	777	25	3	237
L -Property management	17,757	11,710	2,897	2,339	449	142	220
M - Professional, scientific and technical services	2,002	547	1,117	188	17	19	115
N - Business services	1,135	201	218	662	28	10	16
O - Public administration and defense, and public social security schemes	906	906	0	0	0	0	0
P - Education	85	18	30	31	0	5	0
Q - Health and social services	255	154	25	56	1	19	1
R - Cultural activities, entertainment and recreation	249	101	29	105	9	3	1
S - Other services	377	208	56	97	6	8	1
T - Employment in private households	3	1	0	2	0	0	0
V - Subsidiary	9,121	8,305	0	816	0	0	0
W -Other sectors	123,882	107,870	11,343	2,641	736	922	369
1Q21	203,043	150,908	29,580	15,383	2,614	1,641	2,917

Five years [NOK million]		Very low	Low	Medium	High	Very high	Default and
	Total	risk	risk	risk	risk	risk	written down
YTD 21	203,043	150,908	29,580	15,383	2,614	1,641	2,917
2020	199,515	146,743	29,179	16,591	2,906	1,931	2,165
2019	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

Write-downs on loans and guarantees

Quarterly figures [NOK million]	1Q21	4Q20	3Q20	2Q20	1Q20	4Q19	3Q19	2Q19	1Q19
Change in provision for expected credit losses for the period	50	167	222	152	188	81	60	44	61
Actual loan losses on commitments exceeding provisions made	10	110	-7	22	143	23	14	16	8
Recoveries on commitments previously written-off	-2	-35	16	-5	-22	-2	-2	-2	-2
Write-downs on loans and guarantees¹	59	242	231	170	308	103	71	59	67
As % of gross loans incl. Boligkreditt	0.13%	0.54%	0.52%	0.39%	0.73%	0.25%	0.17%	0.14%	0.17%
Five years [NOK million]	YTD 21	2020	2019	2018	2017
Change in provision for expected credit losses for the period	50	729	246	150
Actual loan losses on commitments exceeding provisions made	10	268	62	127
Recoveries on commitments previously written-off	-2	-46	-8	-15
Write-downs on loans and guarantees¹	59	951	299	263
As % of gross loans incl. Boligkreditt	0.13%	0.54%	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

Quarterly figures [NOK million]	1Q21	4Q20	3Q20	2Q20	1Q20	4Q19	3Q19	2Q19	1Q19
Retail Market	-12	-2	16	-2	44	9	12	5	6
Corporate Market	62	232	204	153	258	73	47	39	53
SMN Finans and other	8	13	12	19	6	19	13	15	8
Total loss on loans	59	242	231	170	308	103	71	59	67
Five years [NOK million]	YTD 21	2020	2019	2018	2017
Retail Market	-12	56	32	17	5
Corporate Market	62	846	213	212	318
SMN Finans and other	8	49	54	34	18
Total loss on loans	59	951	299	263	341

1.8 Capital Markets funding

Parent bank

	31 Mar	31 Dec	30 Sep	30 Jun	31 Mar
Quarterly figures [NOK million]	2021	2020	2020	2020	2020
NOK bonds	18,031	17,817	14,083	14,350	14,459
Curr bonds	29,241	26,102	32,060	31,778	34,844
Hybrid equity	1,231	1,250	1,203	1,250	1,250
Subordinated loan capital	1,752	1,752	1,752	1,752	2,026
Total capital markets funding	50,254	46,921	49,098	49,131	52,579

Funding maturity dates

[NOK billion]	2021	2022	2023	2024	2025→
Funding maturity	5.5	6.6	9.1	4.6	24.4
Next eight quarters [NOK billion]	Q221	Q321	Q421	Q122	Q222	Q322	Q422	Q123
Funding maturity	3.8	0.6	1.1	5.1	0.0	1.0	0.4	1.8

1.9 Capital adequacy

Capital adequacy ratios

	31 Mar	31 Dec	30 Sep	30 Jun	31 Mar	31 Dec	30 Sep	30 Jun	31 Mar
Quarterly figures [NOK million]	2021	2020	2020	2020	2020	2019	2019	2019	2019
Common equity Tier 1 capital	17,042	17,041	16,711	16,547	16,155	15,830	15,758	15,625	15,122
Tier 1 capital	18,636	18,636	18,290	18,182	17,792	17,742	17,417	17,284	16,775
Total eligible capital	20,741	20,759	20,373	20,266	19,879	19,854	19,765	19,634	19,115
Risk-weighted assets (RWA)	94,633	93,096	95,156	96,181	98,832	91,956	104,464	104,240	102,495
Common equity Tier 1 ratio	18.0 %	18.3 %	17.6 %	17.2 %	16.3 %	17.2 %	15.1 %	15.0 %	14.8 %
Tier 1 capital ratio	19.7 %	20.0 %	19.2 %	18.9 %	18.0 %	19.3 %	16.7 %	16.6 %	16.4 %
Capital ratio	21.9 %	22.3 %	21.4 %	21.1 %	20.1 %	21.6 %	18.9 %	18.8 %	18.6 %

	YTD	31 Dec	31 Dec	31 Dec	31 Dec
Five years [NOK million]	2021	2020	2019	2018	2017
Common equity Tier 1 capital	17,042	17,041	15,830	14,727	13,820
Tier 1 capital	18,636	18,636	17,742	16,472	15,707
Total eligible capital	20,741	20,759	19,854	18,743	17,629
Risk-weighted assets (RWA)	94,633	93,096	91,956	101,168	94,807
Common equity Tier 1 ratio	18.0 %	18.3 %	17.2 %	14.6 %	14.6 %
Tier 1 capital ratio	19.7 %	20.0 %	19.3 %	16.3 %	16.6 %
Capital ratio	21.9 %	22.3 %	21.6 %	18.5 %	18.6 %

Leverage ratio 7.0 % 7.1 % 7.5 % 7.4 % 7.2 %

Leverage ratio

	31 Mar	31 Dec	30 Sep	30 Jun	31 Mar	31 Dec	30 Sep	30 Jun	31 Mar
Quarterly figures [NOK million]	2021	2020	2020	2020	2020	2019	2019	2019	2019
Calculation basis for leverage ratio	266,260	262,915	259,156	262,834	256,248	236,441	234,678	230,667	227,862
Tier 1 capital	18,636	18,636	18,290	18,182	17,792	17,742	17,417	17,284	16,775
Leverage ratio	7.0 %	7.1 %	7.1 %	6.9 %	6.9 %	7.5 %	7.4 %	7.5 %	7.4 %
	YTD	31 Dec	31 Dec	31 Dec	31 Dec
Five years [NOK million]	2021	2020	2019	2018	2017
Calculation basis for leverage ratio	266,260	262,915	236,441	223,853	218,479
Tier 1 capital	18,636	18,636	17,742	16,472	15,707

Spesification of capital requirements

	31 Mar	31 Dec	30 Sep	30 Jun	31 Mar	31 Dec	30 Sep	30 Jun	31 Mar
Quarterly figures [NOK million]	2021	2020	2020	2020	2020	2019	2019	2019	2019
Capital adequacy
Total book equity	21,734	21,310	20,829	20,320	19,600	20,420	19,904	19,450	18,673
Additional Tier 1 capital instruments included in total equity	-1,273	-1,293	-1,244	-1,254	-1,268	-1,293	-1,004	-1,013	-1,023
Deferred taxes, goodwill and other intangible assets	-1,027	-1,044	-1,047	-1,042	-1,059	-1,099	-1,106	-1,105	-1,073
Deduction for allocated dividends and gifts	-627	-890	0	0	0	-1,314	0	0	0
Non-controlling interests recognised in other equity capital	-891	-838	-800	-768	-760	-761	-792	-781	-665
Non-controlling interests eligible for incl. in CET1 capital	489	488	414	401	398	438	450	447	392
Net profit	-768	0	-1,528	-1,008	-290	0	-2,217	-1,729	-1,046
Year-to-date profit included in core capital (50 per cent pre tax of group profit in 2017)	374	0	739	618	266	0	1,128	879	537
Value adjustments due to requirements for prudent valuation	-56	-56	-59	-62	-62	-45	-44	-44	-43
Positive value of adj. expected loss under IRB Approach	-292	-74	-98	-248	-329	-351	-383	-309	-303
Cash flow hedge reserve	8	10	13	14	13	3	5	5	5
Deduction for commom equity Tier 1 capital in significant investments in financial institutions	-629	-572	-510	-424	-353	-168	-183	-175	-333
Common equity Tier 1 capital	17,042	17,041	16,711	16,547	16,155	15,830	15,758	15,625	15,122
Addtional Tier 1 capital instruments Additional Tier 1 capital instruments covered by transitional	1,595	1,595	1,579	1,635	1,637	1,637	1,384	1,384	1,377
provisions	0	0	0	0	0	275	275	275	275
Tier 1 capital	18,636	18,636	18,290	18,182	17,792	17,742	17,417	17,284	16,775
Subordinated capital	2,259	2,262	2,240	2,240	2,240	2,240	2,310	2,310	2,298
Subordinated capital covered by transitional provisions	0	0	0	0	0	12	179	182	184
Deduction for significant investments in financial institutions	-154	-139	-157	-157	-153	-140	-141	-141	-142
Additional Tier 2 capital instruments	2,105	2,123	2,083	2,083	2,087	2,113	2,348	2,351	2,340
Total eligible capital	20,741	20,759	20,373	20,266	19,879	19,854	19,765	19,634	19,115

	31 Mar	31 Dec	30 Sep	30 Jun	31 Mar	31 Dec	30 Sep	30 Jun	31 Mar
Quarterly figures [NOK million]	2021	2020	2020	2020	2020	2019	2019	2019	2019
Minimum requirements subordinated capital
Specialised enterprises	1,292	1,240	1,236	1,166	1,153	1,101	1,128	1,094	1,106
Corporate	992	930	991	1,052	1,279	1,149	1,194	1,163	1,161
Mass market exposure, mortgages	2,218	2,261	2,282	2,290	2,310	2,299	2,169	2,166	2,126
Other mass market	102	110	111	115	100	101	106	102	97
Equity investments, IRB	1	1	1	1	1	1	1	1	1
Total credit risk IRB	4,606	4,541	4,621	4,624	4,842	4,651	4,597	4,525	4,491
Central government	5	2	2	5	4	3	2	3	3
Covered bonds	146	142	162	159	152	132	149	136	135
Institutions	336	332	402	504	466	282	301	300	269
Local and regional authorities, state-owned enterprises	28	27	21	17	15	5	5	8	10
Corporate	270	281	253	251	227	239	237	237	251
Mass market	484	476	470	465	474	463	532	525	536
Exposures secured on real property	131	136	154	157	174	167	200	207	211
Equity positions	428	408	400	394	383	377	371	369	365
Other assets	159	159	161	150	150	151	157	167	169
Total credit risk standardised approach	1,986	1,962	2,025	2,102	2,045	1,818	1,955	1,952	1,949
Debt risk	44	31	43	44	48	34	27	35	45
Equity risk	9	18	9	10	7	15	6	14	12
Currency risk	1	3	3	1	3	3	3	3	3
Operational risk	772	770	720	720	720	720	656	656	654
Credit value adjustment risk (CVA)	153	123	192	193	240	115	130	122	118
Transitional arrangements	0	0	0	0	0	0	983	1,032	929
Minimum requirements subordinated capital	7,571	7,448	7,612	7,694	7,907	7,357	8,357	8,339	8,200
Risk-weighted assets (RWA)	94,633	93,096	95,156	96,181	98,832	91,956	104,464	104,240	102,495
Minimum requirement on CET1 capital, 4.5 per cent	4,258	4,189	4,282	4,328	4,447	4,138	4,701	4,691	4,612
Capital conservation buffer, 2,5 per cent	2,366	2,327	2,379	2,405	2,471	2,299	2,612	2,606	2,562
Systemic risk buffer, 4.5 per cent	4,258	4,189	2,855	2,885	2,965	2,759	3,134	3,127	3,075
Countercyclical buffer, 1.0 per cent (1.0 per cent)	946	931	952	962	988	2,299	2,089	2,085	2,050
Available CET1 capital after buffer requirements	5,212	5,404	6,243	5,968	5,284	4,335	3,222	3,116	2,823
Common equity Tier 1 capital ratio	18.0 %	18.3 %	17.6 %	17.2 %	16.3 %	17.2 %	15.1 %	15.0 %	14.8 %
Tier 1 capital ratio	19.7 %	20.0 %	19.2 %	18.9 %	18.0 %	19.3 %	16.7 %	16.6 %	16.4 %
Total eligible capital	21.9 %	22.3 %	21.4 %	21.1 %	20.1 %	21.6 %	18.9 %	18.8 %	18.6 %
Leverage ratio
Balance sheet items	258,536	256,978	252,366	255,493	249,366	230,048	228,285	223,781	221,200
Off-balance sheet items	9,568	7,514	8,333	8,944	8,702	7,897	7,939	8,343	8,262
Regulatory adjustments	-1,844	-1,577	-1,543	-1,603	-1,820	-1,503	-1,546	-1,458	-1,600
Calculation basis for leverage ratio	266,260	262,915	259,156	262,834	256,248	236,441	234,678	230,667	227,862
Tier 1 capital	18,636	18,636	18,290	18,182	17,792	17,742	17,417	17,284	16,775
Leverage ratio	7.0 %	7.1 %	7.1 %	6.9 %	6.9 %	7.5 %	7.4 %	7.5 %	7.4 %

Total eligible capital	20,741	20,759	19,854	18,743	17,629
Additional Tier 2 capital instruments	2,105	2,123	2,113	2,272	1,922
Deduction for significant investments in financial institutions	-154	-139	-140	-140	-254
Subordinated capital covered by transitional provisions	0	0	12	96	561
Subordinated capital	2,259	2,262	2,240	2,316	1,615
Tier 1 capital	18,636	18,636	17,742	16,472	15,707
Hybrid capital covered by transitional provisions	0	0	275	367	459
Hybrid capital, core capital	1,595	1,595	1,637	1,378	1,427
Common equity Tier 1 capital	17,042	17,041	15,830	14,727	13,820
Direct, indirect and synthetic investments in financial sector companies	-629	-572	-168	-206	-212
Adjustments for unrealised losses (gains) arising from the institution's own credit risk related to derivative liabilities (DVA)	8	10	3	5	7
Positive value of adjusted expected loss under IRB Approach	-292	-74	-351	-286	-333
Value adjustments due to requirements for prudent valuation	-56	-56	-45	-44	-41
Year-to-date profit included in core capital (50 per cent pre tax of group profit in 2017)	374	0	0	0	0
Net profit	-768	0	0	0	0
Non-controlling interests eligible for inclusion in CET1 capital	489	488	438	366	324
Non-controlling interests recognised in other equity capital	-891	-838	-761	-637	-565
Deduction for allocated dividends and gifts	-627	-890	-1,314	-1,034	-893
Part of reserve for unrealised gains, associated companies	0	0	0	0	0
Deferred taxes, goodwill and other intangible assets	-1,027	-1,044	-1,099	-1,079	-984
Hybrid capital included in total equity	-1,273	-1,293	-1,293	-1,043	-993
Total book equity	21,734	21,310	20,420	18,686	17,510
Capital adequacy
Five years [NOK million]	2021	2020	2019	2018	2017
	YTD	31 Dec	31 Dec	31 Dec	31 Dec

	YTD	31 Dec	31 Dec	31 Dec	31 Dec
Five years [NOK million]	2021	2020	2019	2018	2017
Minimum requirements subordinated capital
Specialised enterprises	1,292	1,240	1,101	1,116	1,107
Corporate	992	930	1,149	1,163	1,113
Mass market exposure, mortgages	2,218	2,261	2,299	2,098	1,892
Other mass market	102	110	101	92	91
Equity investments, IRB	1	1	1	1	1
Total credit risk IRB	4,606	4,541	4,651	4,470	4,205
Central government	5	2	3	4	3
Covered bonds	146	142	132	124	146
Institutions	336	332	282	246	333
Local and regional authorities, state-owned enterprises	28	27	5	8	4
Corporate	270	281	239	221	226
Mass market	484	476	463	520	405
Exposures secured on real property	131	136	167	215	193
Equity positions	428	408	377	366	344
Other assets	159	159	151	107	166
Total credit risk standardised approach	1,986	1,962	1,818	1,810	1,820
Debt risk	44	31	34	31	18
Equity risk	9	18	15	7	22
Currency risk	1	3	3	3	1
Operational risk	772	770	720	575	510
Credit value adjustment risk (CVA)	153	123	115	122	117
Transitional arrangements	0	0	0	1,074	891
Minimum requirements subordinated capital	7,571	7,448	7,357	8,093	7,585
Risk-weighted assets (RWA)	94,633	93,096	91,956	101,168	94,807
Minimum capital requirement, transitional rules 4.5 per cent	4,258	4,189	4,138	4,553	4,266
Capital conservation buffer, 2,5 per cent	2,366	2,327	2,299	2,529	2,370
Systemic risk buffer, 3.0 per cent	4,258	4,189	2,759	3,035	2,844
Countercyclical buffer, 2.0 per cent (1.5 per cent)	946	931	2,299	2,023	1,896
Available CET1 capital after buffer requirements	5,212	5,404	4,335	2,587	2,444
Common equity Tier 1 ratio	18.0 %	18.3 %	17.2 %	14.6 %	14.6 %
Tier 1 capital ratio	19.7 %	20.0 %	19.3 %	16.3 %	16.6 %
Capital ratio	21.9 %	22.3 %	21.6 %	18.5 %	18.6 %
Leverage ratio
Balance sheet items	258,536	256,978	230,048	216,240	210,764
Off-balance sheet items	9,568	7,514	7,897	9,086	9,295
Regulatory adjustments	-1,844	-1,577	-1,503	-1,474	-1,580
Calculation basis for leverage ratio	266,260	262,915	236,441	223,853	218,479
Tier 1 capital	18,636	18,636	17,742	16,472	15,707
Leverage ratio	7.0 %	7.1 %	7.5 %	7.4 %	7.2 %

2.1 Extract from income statement^¹

Group 31 March 2021 [in NOK million] as of	Retail Market	Corporate Market	SB1 Markets	Eiendoms megler 1 Midt- Norge	SB 1 Finans Midt Norge	SB 1 Regnskaps huset SMN	SB 1 Gruppen	BN Bank	Un collated²	Total
Net interest	337	270	-5	0	113	0	0	0	-47	668
Allocated	9	3	0	0	0	0	0	0	-12	0
Total interest income	346	273	-5	0	113	0	0	0	-59	668
Commission income and other income	149	59	321	103	-22	155	0	0	42	808
Net profit on financial investments	0	5	37	10	0	0	67	40	130	289
Total income	496	337	353	114	91	155	67	40	114	1,766
Total operating expenses	228	107	227	93	29	128	0	0	-6	806
Ordinary operating profit	268	230	125	21	62	27	67	40	119	960
Loss on loans, guarantees etc.	-12	62	0	0	7	0	0	0	1	59
Result before tax	280	167	125	21	55	27	67	40	118	901
Post- tax return on equity³	12.5 %	9.6 %								14.8 %
Main balance sheet items
Loans and advances to customers	130,296	46,190	0	0	9,678	0	0	0	-821	185,342
adv. of this to Boligkreditt and Næringskreditt	-46,611	-1,360	0	0	0	0	0	0	100	-47,871
Loss on loans	-130	-1,351	0	0	-69	0	0	0	-3	-1,553
Other assets	119	12,286	3,112	376	76	553	2,230	1,554	37,598	57,903
Total assets	83,674	55,765	3,112	376	9,685	553	2,230	1,554	36,874	193,822
Deposits to customers	48,439	53,200	0	0	0	0	0	0	751	102,390
Other liabilities and equity	35,235	2,565	3,112	376	9,685	553	2,230	1,554	36,123	91,432
Total liabilites	83,674	55,765	3,112	376	9,685	553	2,230	1,554	36,874	193,822

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 15.4 percent to be in line with the capital plan.

Development in interest income, Retail Market and Corporate Market

Quarterly figures [NOK million]	1Q21	4Q20	3Q20	2Q20	1Q20	4Q19	3Q19	2Q19	1Q19
Retail	337	289	285	237	301	298	301	283	278
Corporate	270	258	268	289	271	267	253	256	247
Net interest income	607	547	553	526	571	566	554	539	526

Development in margin¹, Retail Market and Corporate Market

Quarterly figures [percentage]	1Q21	4Q20	3Q20	2Q20	1Q20	4Q19	3Q19	2Q19	1Q19
Lending
Retail	1.59	1.73	1.87	1.99	1.63	1.40	1.49	1.50	1.60
Corporate	2.68	2.64	2.85	3.10	2.69	2.52	2.53	2.56	2.69
Total	1.84	1.93	2.09	2.24	1.86	1.64	1.71	1.73	1.84
Quarterly figures [percentage]	1Q21	4Q20	3Q20	2Q20	1Q20	4Q19	3Q19	2Q19	1Q19
Deposits
Retail	0.08	-0.01	-0.19	-0.47	0.50	0.75	0.66	0.59	0.46
Corporate	-0.29	-0.21	-0.24	-0.26	0.04	0.13	0.08	0.02	0.02
Total	-0.05	-0.11	-0.21	-0.37	0.27	0.43	0.36	0.29	0.24

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

Development in volume, Retail Market and Corporate Market

Quarterly figures [NOK million]	1Q21	4Q20	3Q20	2Q20	1Q20	4Q19	3Q19	2Q19	1Q19
Lending²
Retail	130,296	129,149	126,939	124,165	121,269	119,381	116,882	115,289	113,040
Corporate	46,190	44,845	43,700	42,366	41,174	40,162	40,502	38,422	38,881
Total	176,486	173,994	170,639	166,531	162,443	159,543	157,384	153,711	151,921

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

	40,542 42,374	39,471
Corporate 53,200 49,420 46,404 44,715 42,710 42,756
Retail 48,439 47,478 47,574 48,103 43,961 41,639	41,674 42,795	40,734
Deposits
Quarterly figures [NOK million] 1Q21 4Q20 3Q20 2Q20 1Q20 4Q19	3Q19 2Q19	1Q19

Development in commision income, Retail Market and Corporate Market

Quarterly figures [NOK million]	1Q21	4Q20	3Q20	2Q20	1Q20	4Q19	3Q19	2Q19	1Q19
Retail	150	256	240	173	196	208	212	197	188
Corporate	64	48	56	63	65	60	52	49	57
Total	214	304	296	236	261	269	263	246	244

2.2 Retail market

Business description

	31 Mar
Facts about the business area	2021
Lending volume	130,296
Deposits volume	48,439
No. of active cutomers	245,579
FTEs	363

Financial performance

Quarterly figures [NOK million]	1Q21	4Q20	3Q20	2Q20	1Q20	4Q19	3Q19	2Q19	1Q19
Net interest income lending	238	197	201	140	140	136	150	147	156
Net interest income deposits	98	85	78	92	153	157	148	134	123
Net interest income allocated capital	10	5	26	36	61	64	53	53	52
Total interest income	346	287	304	268	354	357	351	334	330
Net guarantee commission, incl BK, NK	50	143	138	72	100	102	102	99	94
Net commission of savings products	16	27	23	19	14	22	21	14	14
Net commission insurance services	45	44	43	41	40	40	40	39	38
Net commission payment trans. services	39	41	36	41	44	44	48	45	42
Other commision income	0	0	1	0	0	0	1	0	0
Net fee and commission income	149	255	241	173	198	208	212	197	188
Net profit on financial investments	0	1	-1	0	-2	0	0	0	0
Total income	496	543	544	441	550	565	563	532	518
Total operating expenses¹	228	225	233	225	246	221	222	215	217
Result before losses	268	318	311	217	304	344	341	317	301
Loss on loans, guarantees etc.	-12	-2	16	-2	44	9	11	6	6
Result before tax	280	320	295	218	260	335	330	311	295

	YTD	31 Dec	31 Dec	31 Dec	31 Dec
Five years [NOK million]	2021	2020	2019	2018	2017
Net interest income lending	238	677	589	624	572
Net interest income deposits	98	408	561	419	411
Net interest income allocated capital	10	128	221	190	154
Total interest income	346	1,213	1,372	1,234	1,137
Net guarantee commission, incl BK, NK	50	453	397	394	392
Net commission of savings products	16	83	70	75	70
Net commission insurance services	45	168	158	151	151
Net commission payment trans. services	39	161	179	172	175
Other commision income	0	1	1	1	1
Net fee and commission income	149	867	805	793	789
Net profit on financial investments	0	-2	0	0	0
Total income	496	2,078	2,177	2,027	1,926
Total operating expenses¹	228	929	875	804	794
Result before losses	268	1,149	1,302	1,223	1,132
Loss on loans, guarantees etc.	-12	56	32	17	5
Result before tax	280	1,093	1,270	1,206	1,127
Post- tax return on equity (annualized)²	12.5 %	13.4 %	13.1 %	13.2 %	16.6 %

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 15.4 percent to be in line with the capital plan.

Margin development

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

2.3 Corporate market

Business description

	31 Mar
Facts about the business area	2021
Lending volume	46,190
Deposits volume	53,200
No. of active cutomers	16,051
FTEs	157

Financial performance

Quarterly figures [NOK million]	1Q21	4Q20	3Q20	2Q20	1Q20	4Q19	3Q19	2Q19	1Q19
Net interest income lending	212	206	210	184	170	176	174	185	179
Net interest income deposits	53	45	52	94	87	75	70	64	62
Net interest income allocated capital	9	1	15	34	52	55	44	44	42
Total interest income	273	253	277	311	308	307	288	293	284
Net guarantee commission, incl BK, NK	21	13	20	20	19	21	18	17	20
Net commission of savings products	0	0	0	1	0	0	-2	2	2
Net commission insurance services	7	7	7	6	7	6	6	6	6
Net commission payment trans. services	28	24	25	25	27	28	24	20	25
Other commision income	3	2	1	7	2	2	2	0	2
Net fee and commission income	59	45	53	59	54	57	48	45	55
Net profit on financial investments	5	3	3	4	10	3	3	4	2
Total income	337	301	332	374	373	367	340	341	340
Total operating expenses¹	107	101	104	105	113	103	100	103	104
Result before losses	230	201	228	269	261	264	239	239	236
Loss on loans, guarantees etc.	62	232	204	153	258	73	46	40	53
Result before tax	167	-31	25	116	3	190	193	199	183

	YTD	31 Dec	31 Dec	31 Dec	31 Dec
Five years [NOK million]	2021	2020	2019	2018	2017
Net interest income lending	212	769	715	712	677
Net interest income deposits	53	277	271	241	274
Net interest income allocated capital	9	102	185	157	157
Total interest income	273	1,149	1,171	1,110	1,108
Net guarantee commission, incl BK, NK	21	72	76	81	86
Net commission of savings products	0	1	2	2	2
Net commission insurance services	7	26	25	23	21
Net commission payment trans. services	28	101	97	92	86
Other commision income	3	11	5	4	3
Net fee and commission income	59	211	205	202	199
Net profit on financial investments	5	21	12	17	9
Total income	337	1,381	1,388	1,329	1,315
Total operating expenses¹	107	422	410	373	365
Result before losses	230	959	978	956	950
Loss on loans, guarantees etc.	62	846	213	212	318
Result before tax	167	113	765	744	632
Post- tax return on equity (annualized)²	9.6 %	2.1 %	11.7 %	11.3 %	10.5 %

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 15.4 percent to be in line with the capital plan.

Margin development

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

2.4 Subsidiaries

EiendomsMegler 1 Midt-Norge AS

Ownership 87.0 %

EiendomsMegler 1 Midt-Norge is a real estate agency, and has a solid market- leader position in the region. The company has specialized operations, which include separate units for project and commercial real estate broking.

Quarterly figures [NOK million]	1Q21	4Q20	3Q20	2Q20	1Q20	4Q19	3Q19	2Q19	1Q19
Net interest income	0	1	1	0	0	0	0	0	0
Commission income and other income	114	93	111	105	83	122	142	115	84
Total income	114	94	113	105	83	122	141	115	84
Total operating expenses	93	91	92	75	83	128	148	91	93
Result before tax	21	3	20	30	0	-6	-7	23	-9

	YTD	31 Dec	31 Dec	31 Dec	31 Dec
Five years [NOK million]	2021	2020	2019	2018	2017
Net interest income	0	2	-1	-1	3
Commission income and other income	114	392	463	497	473
Total income	114	394	462	496	477
Total operating expenses	93	342	461	519	474
Result before tax	21	52	1	-23	3

SpareBank 1 Finans Midt- Norge AS

Ownership 61.2 %

SpareBank 1 Finans Midt-Norge offers car loans and leasing to corporates and private individuals, and invoice purchases from small businesses. The company services the market through its own sales operation and through the Bank's offices and other partners. SpareBank 1 Finans Midt-Norge merged with Spire Finans in the first quarter.

The company is owned by SpareBank 1 SMN and other Sparebanker in the SpareBank 1 Alliance. This owning structure has contributed to a dispersed presence across Mid- and South Norway

Quarterly figures [NOK million]	1Q21	4Q20	3Q20	2Q20	1Q20	4Q19	3Q19	2Q19	1Q19
Net interest income	113	100	100	90	82	82	79	76	75
Net commission income	-22	-7	-7	-4	-6	-5	-7	-6	-7
Total income	91	94	93	86	76	77	72	70	69
Total operating expenses	29	18	23	20	24	23	19	22	22
Ordinary operating profit	62	75	71	66	52	54	53	48	47
Loss on loans, guarantees etc.	7	13	12	20	5	19	12	13	8
Result before tax	55	63	59	46	47	35	41	35	40

	YTD	31 Dec	31 Dec	31 Dec	31 Dec
Five years [NOK million]	2021	2020	2019	2018	2017
Net interest income	113	371	313	275	228
Net commission income	-22	-22	-26	-19	-15
Total income	91	349	287	256	213
Total operating expenses	29	86	85	73	67
Ordinary operating profit	62	263	202	182	146
Loss on loans, guarantees etc.	7	49	52	34	18
Result before tax	55	214	150	149	128

SpareBank 1 Regnskapshuset SMN AS

Ownership 88.7 %

SpareBank 1 Regnskapshuset SMN is an accountancy business within the SMB segment. SpareBank 1 Regnskapshuset intends to be one of Norway's leading actors in the accounting industry by building up a national accounting enterprise based on regional ownership, strong links to the owner banks and closeness to the market.

The strategy of growth through acquisitions represents a consolidation of a fragmented accounting industry. SpareBank 1 Regnskapshuset SMN has shown strong growth the past five years.

Quarterly figures [NOK million]	1Q21	4Q20	3Q20	2Q20	1Q20	4Q19	3Q19	2Q19	1Q19
Net interest income	0	0	1	0	0	0	0	0	0
Commission income and other income	155	118	111	147	156	111	100	151	140
Total income	155	118	112	147	156	112	100	151	140
Total operating expenses	128	96	91	108	129	85	80	110	119
Result before tax	27	22	21	40	27	27	20	41	21

	YTD	31 Dec	31 Dec	31 Dec	31 Dec
Five years [NOK million]	2021	2020	2019	2018	2017
Net interest income	0	1	0	0	-1
Commission income and other income	155	533	502	444	377
Total income	155	533	502	444	376
Total operating expenses	128	423	394	373	315
Result before tax	27	110	108	71	61

SpareBank 1 Markets AS

Ownership 66.7 %

SpareBank 1 Markets AS is a Norwegian investment bank within the SpareBank 1 Alliance. The company provides research, financial advice, capital raising and stockbroking services, debt and fixed income products. Through the collaboration with the SpareBank 1 Alliance, SpareBank 1 Markets can offer a complete national capital structure service, and cover all customer segments, from retail clients and small and medium- sized businesses to large listed companies and institutional investors. The company is headquartered in Oslo and has offices in Trondheim and Ålesund.

Quarterly figures [NOK million]	1Q21	4Q20	3Q20	2Q20	1Q20	4Q19	3Q19	2Q19	1Q19
Net interest income	-5	-3	-7	-1	-2	-3	-4	-5	-4
Equities/ High Yield	169	92	70	71	39	56	27	49	51
Fixed Income	11	11	8	49	-21	11	8	12	12
Corporate	118	156	60	62	25	46	61	64	43
Foreign exchange/ interest rate derivatives	37	28	23	40	45	28	31	37	21
Asset Management	18	20	13	13	12	20	12	12	11
Other commission income	5	2	3	4	4	1	3	2	6
Total income	353	305	170	238	103	157	139	172	140
Total operating expenses	227	216	135	168	118	153	129	146	138
Ordinary operating profit	125	90	35	71	-15	4	11	26	2
Loss on loans, guarantees etc.	0	0	0	0	0	0	0	0	0
Result before tax	125	90	35	71	-15	4	11	26	2

	YTD	31 Dec	31 Dec	31 Dec	31 Dec
Five years [NOK million]	2021	2020	2019	2018	2017
Net interest income	-5	-14	-17	-14	-15
Equities/ High Yield	169	273	184	195	152
Fixed Income	11	47	44	40	41
Corporate	118	303	214	183	112
Foreign exchange/ interest rate derivatives	37	137	117	105	82
Asset Management	18	57	56	32	53
Other commission income	5	14	13	10	11
Total income	353	816	609	551	437
Total operating expenses	227	637	566	536	435
Ordinary operating profit	125	179	43	15	2
Loss on loans, guarantees etc.	0	0	0	0	0
Result before tax	125	179	43	15	2

Other subsidiaries

Sparebank 1 SMN Invest

The company's strategy is to carry out investments in regional start-ups, venture and private equity funds and to invest directly in growth companies with national/ international market

Property companies

Their mission is to own, operate and develop property. Property companies: SpareBank 1 SMN Kvartalet, SpareBank 1 Bygget Steinkjer, St Olavs Plass 1 SMN

3 Appendix

A1 Business description

SpareBank 1 SMN is the region's leading financial services group and one of six owners of the SpareBank 1 Alliance. Its head office is in Trondheim. SpareBank 1 SMN is a regional independent savings bank with a local footing. Through the SpareBank 1 Alliance and its own subsidiaries, SpareBank 1 SMN has secured access to comnpetitive products in the fields of financing, savings and investment, insurance and payment services. The bank is organised under the following structure:

Financial Group SpareBank 1 SMN

Organisation of SpareBank 1 SMN

Overwiew of governing and control bodies

SpareBank 1 Alliance

SpareBank 1 SMN was one of the founding partners of the SpareBank 1 Alliance in 1996. The Alliance consists of closely cooperating saving banks, all of them being independent and locally anchored banks. The purpose of the SpareBank1 Alliance is for members to develop, procure and supply competitive financial services and products and to exploit economies of scale. The Alliance canalize a lot of its mutual interests through SpareBank1 Gruppen AS, a holding company of life and non-life insurance, mutual funds, a broker-dealer and other companies. The Alliance is the 2nd largest Norwegian financial group with wide distribution all over Norway.

A2 20 largest ECC holders

Owner	Number	Ownership in %
State Street Bank and Trust Comp	4,245,154	3.27%
Sparebankstiftelsen SMN	3,965,391	3.05%
VPF Odin Norge	3,342,919	2.57%
VPF Alfred Berg Gambak	2,889,914	2.23%
Danske Invest Norske aksjer institusjon II.	2,863,847	2.21%
VPF Nordea Norge	2,739,844	2.11%
VPF Pareto Aksje Norge	2,569,766	1.98%
State Street Bank and Trust Comp	2,112,844	1.63%
J. P. Morgan Chase Bank, N.A., London	2,038,996	1.57%
Forsvarets personellservice	1,942,946	1.50%
Morgan Stanley & Co. International	1,940,689	1.49%
VPF Eika Egenkapitalbevis	1,935,968	1.49%
Pareto Invest AS	1,811,807	1.40%
J. P. Morgan Bank Luxembourg S.A.	1,564,474	1.20%
J. P. Morgan Bank Luxembourg S.A.	1,521,185	1.17%
VPF Nordea kapital	1,390,601	1.07%
MP pensjon PK	1,352,771	1.04%
J. P. Morgan Bank Luxembourg S.A.	1,329,700	1.02%
VPF Nordea avkastning	1,249,111	0.96%
Danske Invest Norske aksjer institusjon	1,244,975	0.96%
Total 20 largest shareholders	44,052,902	33.93%
Others	85,783,541	66.07%
Total	129,836,443	100%

A3 ECC capital history

		Change in	Total
Year	Change	ECC capital	ECC capital	No. of ECC's
1991	Placing	525	525	5,250,000
1992	Placing	75	600	6,000,000
2000	Employee placing	5	605	6,053,099
2001	Employee placing	5	610	6,099,432
2002	Employee placing	5	614	6,148,060
2004	Bonus Issue	154	768	7,685,075
2005	Placing	217	986	9,859,317
2005	Employee placing	24	1,009	10,097,817
2005	Split	-	1,009	40,391,268
2005	Bonus Issue	253	1,262	50,489,085
2007	Dividend Issue	82	1,344	53,752,203
2007	Employee placing	5	1,349	53,976,003
2008	Dividend Issue	91	1,440	57,603,748
2008	Employee placing	6	1,447	57,861,806
2009	Bonus Issue	289	1,736	69,434,167
2010	Placing	624	2,360	94,397,474
2010	Employee placing	13	2,373	94,905,286
2011	Issue	1	2,373	94,930,286
2012	Placing	95	2,468	123,407,456
2012	Employee placing	16	2,484	124,218,466
2012	Private placement	112	2,597	129,836,443

A4 CAD - methods for calculating minimum requirements

	Portfolio	Regulatory method
Credit risk	States - parent bank	Standardized approach
	Institutions - parent bank	Standardized approach
	Housing cooperatives, clubs and associations - parent bank	Standardized approach
	Enterprises - parent bank	Advanced IRB approach
	Mass market - parent bank	IRB - mass market (advanced)
	SpareBank 1 Finans Midt-Norge AS	Standardized approach
	SpareBank 1 SMN Invest	Standardized approach
	Mass market - SpareBank 1 Boligkreditt AS	IRB - mass market (advanced)
	Enterprises - SpareBank 1 Næringskreditt AS	Standardized approach
	Enterprises - BN Bank AS	Advanced IRB approach
	Mass market - BN Bank AS	IRB - mass market (advanced)
Market risk	Equity risk - parent bank	Standardized approach
	Debt risk - parent bank	Standardized approach
	Currency risk - parent bank	Standardized approach
	Subsidiaries and part-owned companies	Standardized approach
Operational risk	SpareBank 1 SMN (parent bank)	Standardized approach
	Subsidiaries and part-owned companies	Basic Indicator Approach