SpareBank 1 SMN

Investor Presentation • Feb 5, 2021

Investor Relations Supplementary Information

Contact information

CEO Jan-Frode Janson

For further information, please contact

CFO Kjell Fordal kjell.fordal@smn.no +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 2021

1st quarter	7 May 2021
2nd quarter	11 August 2021
3rd quarter	29 October 2021

Events in the quarter

'One SMN' project brought to completion

The project was finalised in December 2020. A number of measures with associated gains will be carried through in 2021.

SpareBank 1 SMN selected as the new main bank for Trondheim Municipality

Trondheim Municipality has opted for SpareBank 1 SMN as its main bank. This is a comprehensive agreement covering the areas of payment solutions, deposits, financing and securities services along with advisory services.

SpareBank 1 Forvaltning

The SpareBank 1 banks are pooling their forces in a joint undertaking focused on savings and investment, and establishing SpareBank 1 Forvaltning. The company will comprise the subsidiaries ODIN Forvaltning, SpareBank 1 Kapitalforvaltning and SpareBank 1 Verdipapirservice.

New managing director at SpareBank1 Finans Midt-Norge

Andreas Eieland (40) has been appointed new managing director at SpareBank 1 Finans Midt-Norge and took up duties at the turn of 2021. He was previously head of sales and marketing at the IT company Powel.

Table of Contents

1 SpareBank 1 SMN

Change in net interest income	15

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

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

1.1	Financial highlights	5	1.6 Operating expenses	21
	Main figures	5	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 Credit risk classification in SpareBank 1 SMN	23 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	Funding and liquidity 1.8	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	Capital adequacy 1.9	28
	Volume development	16	Capital adequacy ratios	28
			Leverage ratio	28
1.5	Other income	17	Spesification of capital requirements	29

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 - December 2020 YTD ²⁰¹⁹

1.60

103

Profit before tax and inv. held for sale	2,378	NOK million		3,081
Net profit	1,978	NOK million		2,563
Return on equity	10.0	per cent		13.7
Annual lending growth	9.0	per cent		4.7
Annual deposits growth	13.5	per cent		6.6
Loan losses	951	NOK million		299
CET1 ratio	18.3	per cent		17.2
Earnings per EC	8.87	NOK		12.14
Q4 2020			Q4	2019
Profit before tax and inv. held for sale	554	NOK million		469
Net profit	450	NOK million		346
Return on equity	8.9	per cent		7.1

242 1.99

Loan losses NOK million

Earnings per EC NOK

Main figures

Quarterly figures [NOK million]	4Q20	3Q20	2Q20	1Q20	4Q19	3Q19	2Q19	1Q19	4Q18
Net interest	688	695	666	710	697	678	664	649	644
Commission income and other income	757	638	607	570	579	554	606	551	543
Net return on financial investments	197	205	448	101	17	121	336	727	95
Total income	1,642	1,538	1,721	1,381	1,292	1,353	1,607	1,926	1,282
Total operating expenses	845	685	706	716	720	673	701	704	701
Result before losses	797	853	1,015	665	572	680	907	1,223	580
Loss on loans, guarantees etc.	242	231	170	308	103	71	59	67	67
Result before tax	554	621	845	357	469	609	848	1,155	513
Tax charge	104	102	126	67	123	121	165	109	104
Results investments held for sale, after tax	0	0	0	0	0	0	0	0	-8
Net profit	450	519	719	290	346	488	683	1,046	401

Net profit	1,978	2,563	2,090	1,828	1,681
Results investments held for sale, after tax	1	0	149	-1	4
Tax charge	400	518	509	450	352
Result before tax	2,378	3,081	2,450	2,279	2,029
Loss on loans, guarantees etc.	951	299	263	341	516
Result before losses	3,329	3,380	2,713	2,621	2,544
Total operating expenses	2,952	2,797	2,624	2,369	2,003
Total income	6,281	6,178	5,337	4,989	4,547
Net return on financial investments	951	1,201	757	760	944
Commission income and other income	2,572	2,290	2,177	2,005	1,674
Net interest	2,759	2,687	2,403	2,225	1,929
Five years [NOK million]	YTD 20	2019	2018	2017	2016

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]	2020	2020	2020	2020	2019	2019	2019	2019	2018
Total assets	187,912	186,900	190,484	185,182	166,662	166,475	167,289	164,641	160,704
Average total assets (quarterly)	187,406	188,692	187,833	175,922	166,569	166,882	165,965	162,673	160,021
Gross loans to customers ¹	182,801	179,423	175,100	170,771	167,777	165,380	163,627	161,091	160,317
Deposits from customers	97,529	95,391	94,289	88,152	85,917	83,641	86,553	81,111	80,615
Total equity capital	21,310	20,829	20,320	19,600	20,420	19,904	19,450	18,673	18,686

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

Five years [NOK million]	YTD 20	2019	2018	2017	2016
Total assets	187,912	166,662	160,704	153,254	138,080
Average total assets	183,428	165,154	160,021	150,083	138,948
Gross loans to customers ¹	182,801	167,777	160,317	148,784	137,535
Deposits from customers	97,529	85,917	80,615	76,476	67,168
Total equity capital	21,310	20,420	18,686	17,510	16,253

Equity capital certificate (MING)

Quarterly figures	4Q20	3Q20	2Q20	1Q20	4Q19	3Q19	2Q19	1Q19	4Q18
ECC price	97.60	84.30	78.30	67.60	100.20	98.50	97.70	87.40	84.20
Number of certificates issued, millions	129.39	129.44	129.39	129.22	129.30	129.48	129.66	129.41	129.62
Booked equity capital per ECC (incl. dividend)	94.71	92.73	90.37	86.85	90.75	89.36	87.04	83.86	83.87
Adjusted profit per ECC	1.99	2.35	3.27	1.26	1.60	2.30	3.21	5.02	1.90
P/E per ECC (annualised)	12.28	8.96	5.98	13.46	15.67	10.69	7.61	4.35	11.05
P/B equity capital	1.03	0.91	0.87	0.78	1.10	1.10	1.12	1.04	1.00
Five years	YTD 20	2019	2018	2017	2016
ECC price	97.60	100.20	84.20	82.25	64.75
Number of certificates issued, millions	129.39	129.30	129.62	129.38	129.64
Booked equity capital per ECC (incl. dividend)	94.71	90.75	83.87	78.81	73.35
Adjusted profit per ECC	8.87	12.14	9.97	8.71	7.93
P/E per ECC (annualised)	11.01	8.26	8.44	9.44	8.17
P/B equity capital	1.03	1.10	1.00	1.04	0.88

1.2 Credit Rating

Moody's

[year end]	2020	2019	2018	2017	2016	2015	2014
Outlook	Stable	Stable	Negative	Negative	Stable	Stable	Negative
Issuer Rating	A1	A1	A1	A1	A1	A1	A2
Bank Deposits	A1/P-1	A1/P-1	A1/ P-1	A1/ P-1	A1/ P-1	A1/ P-1	A2/ P-1
Senior Unsecured	A1	A1	A1	A1	A1	A1	A2
Subordinate	Baa2	Baa2	Baa2	Baa2	Baa2	Baa2	Baa2

1.3 Financial results and key figures

Financial results

Quarterly figures [NOK million]	4Q20	3Q20	2Q20	1Q20	4Q19	3Q19	2Q19	1Q19	4Q18
Interest income	945	971	1,031	1,250	1,235	1,190	1,127	1,075	1,082
Interest expenses	258	276	365	540	538	512	463	426	438
Net interest income	688	695	666	710	697	678	664	649	644
Commission income	416	414	331	349	371	374	363	329	343
Commission expenses	58	52	47	50	47	55	51	40	42
Other operating income	399	277	323	271	255	235	294	262	242
Commission income and other income	757	638	607	570	579	554	606	551	543
Dividends	27	2	2	8	1	1	11	2	2
Income from investment in related companies	117	170	177	217	8	85	231	555	130
Net return on financial investments	53	32	269	-124	8	35	95	169	-37
Net return on financial investments	197	205	448	101	17	121	336	727	95
Total income	1,642	1,538	1,721	1,381	1,292	1,353	1,607	1,926	1,282
Staff costs	570	422	449	443	411	404	438	447	391
Other operating expenses	275	263	258	273	309	269	263	257	311
Total operating expenses	845	685	706	716	720	673	701	704	701
Result before losses	797	853	1,015	665	572	680	907	1,223	580
Loss on loans, guarantees etc.	242	231	170	308	103	71	59	67	67
Result before tax	554	621	845	357	469	609	848	1,155	513
Tax charge	104	102	126	67	123	121	165	109	104
Results investments held for sale, after tax	0	0	0	0	0	0	0	0	-8
Net profit	450	519	719	290	346	488	683	1,046	401
Attributable to additional Tier 1 Capital holders	10	11	14	24	10	10	10	19	9
Majority share	402	476	661	254	324	467	650	1,017	386
Minority interest	38	33	43	12	12	11	22	10	6

Five years [NOK million]	YTD 20	2019	2018	2017	2016
Interest income	4,197	4,626	4,057	3,825	3,597
Interest expenses	1,439	1,939	1,655	1,600	1,668
Net interest	2,759	2,687	2,403	2,225	1,929
Commission income	1,510	1,437	1,387	1,390	1,251
Commission expenses	207	193	168	168	133
Other operating income	1,269	1,046	958	783	556
Commission income and other income	2,572	2,290	2,177	2,005	1,674
Dividends	39	15	8	6	88
Income from investment in related companies	681	879	416	437	423
Net return on financial investments	230	307	334	317	434
Net return on financial investments	951	1,201	757	760	944
Total income	6,281	6,178	5,337	4,989	4,547
Staff costs	1,883	1,699	1,584	1,426	1,159
Other operating expenses	1,069	1,098	1,040	943	844
Total operating expenses	2,952	2,797	2,624	2,369	2,003
Result before losses	3,329	3,380	2,713	2,621	2,544
Loss on loans, guarantees etc.	951	299	263	341	516
Result before tax	2,378	3,081	2,450	2,279	2,029
Tax charge	400	518	509	450	352
Results investments held for sale, after tax	1	0	149	-1	4
Net profit	1,978	2,563	2,090	1,828	1,681
Attributable to additional Tier 1 Capital holders	59	49	37	33	34
Majority share	1,793	2,458	2,018	1,763	1,606
Minority interest	126	56	34	32	41

Balance sheet

	31 Dec	30 Sep	30 Jun	31 Mar	31 Dec	30 Sep	30 Jun	31 Mar	31 Dec
Quarterly figures [NOK million]	2020	2020	2020	2020	2019	2019	2019	2019	2018
Cash and receivables from central banks	2,764	3,227	4,115	5,848	761	1,279	1,278	647	883
Deposits with and loans to credit institutions	5,091	2,517	5,252	2,239	2,110	4,432	8,612	8,387	5,074
Net loans to and receivables from customers	133,131	132,183	129,360	126,128	125,279	123,037	121,025	119,285	119,728
Fixed-income CDs and bonds at fair value	26,606	26,375	28,955	27,395	23,115	21,125	19,870	20,806	20,348
Derivatives	7,226	10,309	10,069	11,757	2,972	4,052	3,767	3,181	4,119
Shares, units and other equity interests	2,366	1,890	1,673	1,437	2,953	2,386	2,202	2,015	1,873
Investment in related companies	7,324	7,017	6,810	6,652	6,468	6,487	6,406	6,386	6,098
Investments held for sale	41	42	42	40	40	41	41	42	43
Intangible assets	905	881	873	876	872	876	878	846	851
Other assets	2,457	2,459	3,335	2,810	2,092	2,760	3,210	3,047	1,687
Assets	187,912	186,900	190,484	185,182	166,662	166,475	167,289	164,641	160,704
Deposits from credit institutions	13,095	11,586	13,845	13,150	8,853	8,942	11,793	11,601	9,214
Deposits from and debt to customers	97,529	95,391	94,289	88,152	85,917	83,641	86,553	81,111	80,615
Debt created by issue of securities	43,919	46,144	46,129	49,303	43,014	44,889	39,578	43,172	44,269
Derivatives	7,179	8,415	8,644	8,004	3,528	3,505	3,479	3,178	2,982
Other liabilities	3,084	2,738	5,459	4,900	2,841	3,339	4,172	4,632	2,670
Investments held for sale	1	1	1	1	0	0	0	0	1
Subordinated loan capital	1,795	1,796	1,797	2,071	2,090	2,254	2,263	2,273	2,268
Total liabilities	166,602	166,070	170,164	165,582	146,243	146,571	147,839	145,968	142,018
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	-9	-8	-9	-12	-11	-7	-3	-9	-4
Premium fund	895	895	895	895	895	895	895	895	895
Dividend equalisation fund	6,536	6,314	6,320	6,311	6,123	5,581	5,591	5,580	5,594
Recommended dividends	569	0	0	0	840	0	0	0	661
Provision for gifts	321	0	0	0	474	0	0	0	373
Ownerless capital	5,664	5,541	5,541	5,541	5,432	5,126	5,126	5,126	5,126
Unrealised gains reserve	239	189	189	189	189	155	155	155	155
Other equity capital	2,366	1,729	1,757	1,760	1,827	1,544	1,566	1,595	1,608
Hybrid capital	1,293	1,244	1,254	1,268	1,293	1,004	1,013	1,023	1,043
Result of the period	0	1,528	1,008	290	0	2,217	1,729	1,046	0
Minority interests	838	800	768	760	761	792	781	665	637
Total equity capital	21,310	20,829	20,320	19,600	20,420	19,904	19,450	18,673	18,686
Total liabilities and equity	187,912	186,900	190,484	185,182	166,662	166,475	167,289	164,641	160,704

Five years [NOK million]	YTD 20	2019	2018	2017	2016
Cash and receivables from central banks	2,764	761	883	3,313	315
Deposits with and loans to credit institutions	5,091	2,110	5,074	4,214	3,892
Net loans to and receivables from customers	133,131	125,279	119,728	110,959	101,354
Fixed-income CDs and bonds at fair value	26,606	23,115	20,348	19,736	17,557
Derivatives	7,226	2,972	4,119	4,351	4,752
Shares, units and other equity interests	2,366	2,953	1,873	1,825	1,542
Investment in related companies	7,324	6,468	6,098	5,760	5,638
Investments held for sale	41	40	43	649	15
Intangible assets	905	872	851	793	639
Other assets	2,457	2,092	1,687	1,654	2,376
Assets	187,912	166,662	160,704	153,254	138,080
Deposits from credit institutions	13,095	8,853	9,214	9,607	10,509
Deposits from and debt to customers	97,529	85,917	80,615	76,476	67,168
Debt created by issue of securities	43,919	43,014	44,269	42,194	36,317
Derivatives	7,179	3,528	2,982	3,343	4,074
Other liabilities	3,084	2,841	2,670	1,923	1,531
Investments held for sale	1	0	1	1	0
Subordinated loan capital	1,795	2,090	2,268	2,201	2,228
Total liabilities	166,602	146,243	142,018	135,744	121,827
Equity capital certificate	2,597	2,597	2,597	2,597	2,597
Own holdings of ECCs	-9	-11	-4	-8	-4
Premium fund	895	895	895	895	895
Dividend equalisation fund	6,536	6,123	5,594	5,072	4,487
Recommended dividends	569	840	661	571	389
Provision for gifts	321	474	373	322	220
Ownerless capital	5,664	5,432	5,126	4,831	4,499
Unrealised gains reserve	239	189	155	126	139
Other equity capital	2,366	1,827	1,608	1,547	1,656
Hybrid capital	1,293	1,293	1,043	993	950
Result of the period	0	0	0	0	0
Minority interests	838	761	637	565	425
Total equity capital	21,310	20,420	18,686	17,510	16,253
Total liabilities and equity	187,912	166,662	160,704	153,254	138,080

Key figures

Quarterly figures	4Q20	3Q20	2Q20	1Q20	4Q19	3Q19	2Q19	1Q19	4Q18
Return on equity	8.9 %	10.5 %	15.1 %	5.7 %	7.1 %	10.2 %	14.9 %	23.3 %	9.0 %
Cost/income ratio group	51%	45%	41%	52%	56%	50%	44%	37%	55%
Cost/income ratio group, ex. financial inv.	58%	51%	55%	56%	56%	55%	55%	59%	59%
12-month cost growth	17.4 %	1.8 %	0.8 %	1.8 %	2.3 %	9.2 %	5.9 %	9.1 %	13.6 %
Gross loans to customers¹	182,801	179,423	175,100	170,771	167,777	165,380	163,627	161,091	160,317
Growth in loans last 12 months¹	9.0 %	8.5 %	7.0 %	6.0 %	6.3 %	6.8 %	5.7 %	6.6 %	7.8 %
Growth in loans this period¹	1.9 %	2.5 %	2.5 %	1.8 %	1.4 %	1.1 %	1.6 %	0.5 %	1.6 %
Deposits from customers	97,529	95,391	94,289	88,152	85,917	83,641	86,553	81,111	80,615
Growth in deposits last 12 months	13.5 %	14.0 %	8.9 %	8.7 %	10.8 %	4.1 %	7.7 %	6.8 %	5.4 %
Growth in deposits this period	2.2 %	1.2 %	7.0 %	2.6 %	2.7 %	-3.4 %	6.7 %	0.6 %	4.0 %
Deposit-to-loan ratio¹	53%	53%	54%	52%	51%	51%	53%	50%	50%
Total assets	187,912	186,900	190,484	185,182	166,662	166,475	167,289	164,641	160,704
Average total assets (quarterly)	187,406	188,692	187,833	175,922	166,569	166,882	165,965	162,673	160,021
FTEs, group	1,560	1,528	1,515	1,553	1,509	1,639	1,556	1,524	1,493
FTEs, parent bank	660	640	631	630	619	614	580	570	575
FTEs, subsidiaries	899	888	884	923	890	1,024	976	953	918
Number of branches	45	46	46	46	46	46	48	48	48
Lending margin	1.93	2.09	2.24	1.86	1.64	1.71	1.73	1.84	1.88
Deposit margin	-0.11	-0.21	-0.37	0.27	0.43	0.36	0.29	0.24	0.19
Net other operating income of total income	46%	41%	35%	41%	45%	41%	38%	29%	42%
Common Equity Tier 1 capital ratio	18.3 %	17.6 %	17.2 %	16.3 %	17.2 %	15.1 %	15.0 %	14.8 %	14.6 %
Tier 1 capital ratio	20.0 %	19.2 %	18.9 %	18.0 %	19.3 %	16.7 %	16.6 %	16.4 %	16.3 %
Capital ratio	22.3 %	21.4 %	21.1 %	20.1 %	21.6 %	18.9 %	18.8 %	18.6 %	18.5 %
Tier 1 capital	18,636	18,290	18,182	17,792	17,742	17,417	17,284	16,775	16,472
Total eligible capital	20,759	20,373	20,266	19,879	19,854	19,765	19,634	19,115	18,743
Liquidity Coverage Ratio (LCR) (%)	171%	140%	163%	185%	148%	181%	165%	180%	183%
Leverage ratio	7.1 %	7.1 %	6.9 %	6.9 %	7.5 %	7.4 %	7.5 %	7.4 %	7.4 %
Impairment losses ratio	0.54%	0.52%	0.39%	0.73%	0.25%	0.17%	0.14%	0.17%	0.17%
Non-performing commitm. as % of gross loans	0.25%	0.27%	0.39%	0.38%	0.26%	0.26%	0.22%	0.18%	0.19%
Other doubtfull commitm. as % of gross loans	0.98%	1.03%	0.97%	1.23%	1.00%	1.03%	1.00%	0.99%	0.86%
ECC price	97.60	84.30	78.30	67.60	100.20	98.50	97.70	87.40	84.20
Number of certificates issued, millions	129.39	129.44	129.39	129.22	129.30	129.48	129.66	129.41	129.62
Booked equity capital per ECC (incl. dividend)	94.71	92.73	90.37	86.85	90.75	89.36	87.04	83.86	83.87
Adjusted profit per ECC	1.99	2.35	3.27	1.26	1.60	2.30	3.21	5.02	1.90
P/E per ECC	12.28	8.96	5.98	13.46	15.67	10.69	7.61	4.35	11.05
P/B equity capital	1.03	0.91	0.87	0.78	1.10	1.10	1.12	1.04	1.00

¹ Including Sparebank1 Boligkreditt and Sparebank 1 Næringskreditt.

Five years	YTD 20	2019	2018	2017	2016
Return on equity	10.0 %	13.7 %	12.2 %	11.5 %	11.3 %
Cost/income ratio group	47%	45%	49%	47%	44%

Cost/income ratio group, ex. financial inv.	55%	56%	57%	56%	56%
12-month cost growth	5.5 %	6.6 %	10.8 %	18.3 %	3.7 %
Gross loans to customers¹	182,801	167,777	160,317	148,784	137,535
Growth in loans last 12 months¹	9.0 %	4.7 %	7.8 %	8.2 %	8.0 %
Growth in loans this period¹	9.0 %	4.7 %	7.8 %	8.2 %	8.0 %
Deposits from customers	97,529	85,917	80,615	76,476	67,168
Growth in deposits last 12 months	13.5 %	6.6 %	5.4 %	13.9 %	4.8 %
Growth in deposits this period	13.5 %	6.6 %	5.4 %	13.9 %	4.8 %
Deposit-to-loan ratio¹	53%	51%	50%	51%	49%
Total assets	187,912	166,662	160,704	153,254	138,080
Average total assets (quarterly)	183,428	165,154	156,992	145,948	137,060
FTEs, group	1,560	1,509	1,493	1,403	1,254
FTEs, parent bank	660	619	575	595	630
FTEs, subsidiaries	899	890	918	808	624
Number of branches	45	46	48	48	49
Lending margin	2.02	1.73	1.92	2.13	1.97
Deposit margin	-0.09	0.33	0.12	0.00	0.09
Net other operating income of total income	41%	37%	41%	40%	37%
Common Equity Tier 1 ratio	18.3 %	17.2 %	14.6 %	14.6 %	14.8 %
Core capital ratio	20.0 %	19.3 %	16.3 %	16.6 %	16.8 %
Capital adequacy ratio	22.3 %	21.6 %	18.5 %	18.6 %	19.2 %
Tier 1 capital	18,636	17,742	16,472	15,707	15,073
Total eligible capital	20,759	19,854	18,743	17,629	17,189
Liquidity Coverage Ratio (LCR) (%)	171%	148%	183%	164%	129%
Leverage ratio	7.1 %	7.5 %	7.4 %	7.2 %	7.4 %
Impairment losses ratio	0.54%	0.18%	0.17%	0.24%	0.39%
Non-performing commitm. as % of gross loans	0.25%	0.26%	0.19%	0.19%	0.16%
Other doubtfull commitm. as % of gross loans	0.98%	1.00%	0.86%	0.80%	1.07%
ECC price	97.60	100.20	84.20	82.25	64.75
Number of certificates issued, millions	129.39	129.30	129.62	129.38	129.64
Booked equity capital per ECC (incl. dividend)	94.71	90.75	83.87	78.81	73.35
Adjusted profit per ECC	8.87	12.14	9.97	8.71	7.93
P/E per ECC	11.01	8.26	8.44	9.44	8.17
P/B equity capital	1.03	1.10	1.00	1.04	0.88

¹ Including Sparebank1 Boligkreditt and Sparebank 1 Næringskreditt.

1.4 Net interest income

Net interest income

4Q20	3Q20	2Q20	1Q20	4Q19	3Q19	2Q19	1Q19	4Q18
945	971	1,031	1,250	1,235	1,190	1,127	1,075	1,082
258	276	365	540	538	512	463	426	438
688	695	666	710	697	678	664	649	644
42%	45%	39%	51%	54%	50%	41%	34%	50%

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 20	2019	2018	2017	2016
Interest income	4,197	4,626	4,057	3,825	3,597
Interest expenses	1,439	1,939	1,655	1,600	1,668
Net interest income	2,759	2,687	2,403	2,225	1,929
As a percentage of total income	44%	43%	45%	45%	42%

Change in interest income from lending and deposits

Last 12 months [NOK million]	Volume	Margin	Total
Lending	133	341	475
Deposits	29	-390	-361
Total	162	-49	113

Change in net interest income

Last 12 months [NOK million]	4Q20	Change	4Q19
Net interest income	2,759	72	2,687
Lending volume		133
Lending margin		341
Fees on lending		2
Deposit volume		29
Deposit margin		-390
Subsidiaries		68
Equity capital		-124
Funding and liquidity buffer		13

Margin development

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

Volume development

Quarterly figures	4Q20	3Q20	2Q20	1Q20	4Q19	3Q19	2Q19	1Q19	4Q18
Lending volume	182.8	179.4	175.1	170.8	167.8	165.4	163.6	161.1	160.3
Deposits volume	97.5	95.4	94.3	88.2	85.9	83.6	86.6	81.1	80.6
Growth in loans last 12 months	9.0 %	8.5 %	7.0 %	6.0 %	6.3 %	6.8 %	5.7 %	6.6 %	7.8 %
Growth in deposits last 12 months	13.5 %	14.0 %	8.9 %	8.7 %	10.8 %	4.1 %	7.7 %	6.8 %	5.4 %

1.5 Other income

Commision and other income

Quarterly figures [NOK million]	4Q20	3Q20	2Q20	1Q20	4Q19	3Q19	2Q19	1Q19	4Q18
Guarantees	10	16	16	16	15	15	15	15	16
Commission Boligkreditt (cov. bonds)	136	128	57	88	90	90	86	83	87
Commission Næringskreditt (cov. bonds)	4	4	2	4	4	4	4	4	5
Commision of savings products	37	30	31	25	35	28	28	29	30
Real estate agency	61	72	66	52	57	65	74	56	48
Insurance	51	49	48	47	47	47	45	44	44
Payment transfers	101	97	90	102	106	110	93	85	95
Other	16	18	21	16	16	16	18	14	19
Total commisions income	416	414	331	349	371	374	363	329	343
Operating- and sales income real estate	32	40	39	31	36	34	40	29	24
Accounting services	111	105	141	148	102	92	147	131	93
Other operating income	256	132	143	91	118	109	106	103	125
Total other operating income	399	277	323	271	255	235	294	262	242
Commision expenses	58	52	47	50	47	55	51	40	42
Total commision and other income	757	638	607	570	579	554	606	551	543
As a percentage of total income	46%	41%	35%	41%	45%	41%	38%	29%	42%

Five years [NOK million]	YTD 20	2019	2018	2017	2016
Guarantees	58	59	72	80	76
Commission Boligkreditt (cov. bonds)	408	349	350	353	271
Commission Næringskreditt (cov. bonds)	13	16	16	17	12
Commision of savings products	123	117	113	115	74
Real estate agency	251	252	225	223	247
Insurance	195	183	174	172	159
Payment transfers	390	393	360	362	355
Other	71	67	78	67	57
Total commisions income	1,510	1,437	1,387	1,390	1,251
Operating- and sales income real estate	142	138	124	118	121
Accounting services	506	473	411	342	202
Other operating income	622	435	423	323	234
Total other operating income	1,269	1,046	958	783	556
Commision expenses	207	193	168	168	133
Total commision and other income	2,572	2,290	2,177	2,005	1,674
As a percentage of total income	41%	37%	41%	40%	37%

Distribution of commision income

Change in commision and other income

Last 12 months [NOK million]	4Q20	Change	4Q19
Commision and other income	2,572	283	2,290
Real estate agency		-1
Other operating income		187
Operating- and sales income real estate		3
Accounting services		33
Insurance		12
Commission of savings products		6
Commission expenses		-13
Other		4
Payments transfers		-3
Guarantees		-1
Commission Boligkreditt (cov. bonds)		59
Commission Næringskreditt (cov. bonds)		-3

Net return on financial investments

including investments held for sale

Quarterly figures [NOK million]	4Q20	3Q20	2Q20	1Q20	4Q19	3Q19	2Q19	1Q19	4Q18
Dividends	27	2	2	8	1	1	11	2	2
SpareBank 1 Gruppen	87	114	109	-115	-12	40	186	38	99
Capital gain Fremtind Forsikring	0	0	0	340	0	0	0	460
SpareBank 1 Boligkreditt	-4	11	41	-31	0	4	8	14	-9
SpareBank 1 Næringskreditt	5	5	7	2	6	5	2	8	4
BN Bank	36	34	27	23	28	33	27	24	24
SpareBank 1 Kreditt	0	0	2	0	0	5	5	3	6
SpareBank 1 Betaling	1	-1	1	-2	-5	-3	-2	12	-3
Other companies	-9	8	-9	0	-10	1	5	-4	-1
Income from inv. in associates and joint ventures	117	170	177	217	8	85	231	555	120
Capital gains shares	-3	4	36	-42	11	1	23	84	-48
Gain on sertificates and bonds	-62	-8	124	50	-42	-26	15	32	5
Gain on derivatives	110	19	51	-148	40	29	40	23	-5
Gain on financial instruments related to hedging	1	4	2	-6	-8	4	-1	-4	1
Gain on other financial instruments at fair value (FVO)	2	-2	45	-57	-2	4	-4	10	-13
Foreign exchange gain	3	11	4	65	-10	10	14	9	16
Gain on shares and derivatives in SB1 Markets	2	5	7	14	17	13	8	15	7
Net return on financial investments¹	53	32	269	-124	8	35	95	169	-37
Total net return on financial investments	197	204	448	101	17	121	336	727	85
As percentage of total income	12%	13%	26%	7%	1%	9%	21%	38%	7%

Five years [NOK million]	YTD 20	2019	2018	2017	2016
Dividends	39	15	8	6	88
SpareBank 1 Gruppen	194	252	289	349	317
Capital gain Fremtind Forsikring	340	460	0	0	0
SpareBank 1 Boligkreditt	18	26	-7	-41	-17
SpareBank 1 Næringskreditt	18	21	15	19	29
BN Bank	120	113	97	98	86
SpareBank 1 Kreditt	2	13	23	15	24
SpareBank 1 Betaling	-2	3	-12	-14	-27
Other companies	-10	-8	12	12	15
Income from inv. in associates and joint ventures	681	879	416	437	427
Capital gains shares	-4	120	96	62	76
Gain on sertificates and bonds	103	-20	-77	58	-2
Gain on derivatives	32	132	187	148	280
Gain on financial instruments related to hedging	1	-9	-4	-46	-21
Gain on other financial instruments at fair value (FVO)	-11	9	10	7	26
Foreign exchange gain	82	22	63	45	51
Gain on shares and derivatives in SB1 Markets	28	54	58	43	25
Net return on financial investments	230	307	334	317	434
Total net return on financial investments	951	1,201	757	760	949
As percentage of total income	15%	19%	14%	15%	21%

Change in net return on financial investments

Last 12 months [NOK million]	4Q20	Change	4Q19
Net return on financial investments	951	-249	1,201
Dividends		24
Income from investment in related companies		-197
Capital gains shares		-124
Gain on derivatives		-100
Gain on other financial instruments at fair value (FVO)		-20
Foreign exchange gain		59
Gain on sertificates and bonds		124
Gain on shares and derivatives in SB1 Markets		-26
Gain on financial instruments related to hedging		11

1.6.Operating expenses

Operating expenses

Quarterly figures [NOK million]	4Q20	3Q20	2Q20	1Q20	4Q19	3Q19	2Q19	1Q19	4Q18
Salaries	480	336	372	340	312	320	354	348	311
Pension costs (defined benefit plan)	26	29	26	26	28	26	24	27	12
Employer's insurance contributions	4	5	4	4	3	3	5	3	-4
Other personnel expenses	60	52	47	74	68	54	55	69	72
Total personnel expenses	570	422	449	443	411	404	438	447	391
IT costs	84	83	87	86	70	83	87	81	78
Postage and transportation services	2	5	6	5	5	8	6	5	5
Marketing	15	18	17	24	22	27	25	26	30
Depr./write-downs of fixed & intangible assets	45	40	40	42	42	41	44	46	32
Operating exp. on properties and premises	22	16	15	9	17	13	14	13	41
Other external services	56	57	55	53	66	50	41	36	50
Other operating expenses	52	44	38	53	88	47	46	50	74
Other expenses	275	263	258	273	309	269	263	257	311
Total operating expenses	845	685	706	716	720	673	701	704	701
Cost/income ratio	51%	45%	41%	52%	56%	50%	44%	37%	55%
Cost/income ratio ex financial investments	58%	51%	55%	56%	56%	55%	55%	59%	59%
12-month cost growth¹	17.4 %	1.8 %	0.8 %	1.8 %	2.3 %	9.2 %	5.9 %	9.1 %	13.6 %

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 20	2019	2018	2017	2016
Salaries	1,528	1,334	1,228	1,107	991
Pension costs (defined benefit plan)	107	105	96	85	-20
Employer's insurance contributions	16	15	10	12	13
Other personnel expenses	232	245	249	223	175
Total personnel expenses	1,883	1,699	1,584	1,426	1,159
IT costs	340	321	293	266	252
Postage and transportation services	19	23	17	22	22
Marketing	73	101	106	104	98
Depr./write-downs of fixed & intangible assets	166	172	99	102	98
Operating exp. on properties and premises	62	57	153	118	109
Other external services	221	193	151	139	108
Other operating expenses	187	231	221	192	156
Other expenses	1,069	1,098	1,040	943	844
Total operating expenses	2,952	2,797	2,624	2,369	2,003
Cost/income ratio	47.0 %	45.3 %	49.2 %	47.5 %	44.0 %
Cost/income ratio ex financial investments	55.4 %	56.2 %	57.3 %	56.0 %	55.6 %
12-month cost growth	5.5 %	6.6 %	10.8 %	18.3 %	3.7 %

Change in operating expenses

Last 12 months [NOK million]	4Q20	Change	4Q19
Operating expenses	2,952	155	2,797
Total personnel expenses		184
EDP and telecommunication expenses		19
Postage and transportation services		-5
Marketing		-27
Depr./write-downs of fixed & intangible assets		-6
Operating exp. on properties and premises		5
Other external services		28
Other operating expenses		-43

Employees- full time equivalents

Total number of FTE's	1,560	1,509	1,493	1,403	1,254
Other	8	8	24	44	35
DeBank	22	19
SpareBank 1 Finans Midt-Norge AS	34	34	34	32	34
SpareBank 1 Regnskapshuset SMN AS	443	435	402	349	223
SpareBank 1 Markets¹	166	164	149	132	105
EiendomsMegler 1 Midt-Norge AS	227	230	309	251	227
Parent bank	660	619	575	595	630
FTE's	2020	2019	2018	2017	2016

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]	2020	2020	2020	2020	2019	2019	2019	2019	2018
Agriculture and forestry	9,591	9,442	9,220	9,014	8,947	8,640	8,471	8,244	8,284
Fisheries	5,259	4,872	5,104	4,839	4,611	4,490	4,431	4,414	4,402
Fish farming	2,100	1,790	1,258	1,053	1,132	1,348	1,160	1,176	1,180
Manufacturing	2,646	2,369	2,390	2,255	2,595	3,097	3,118	3,507	3,787
Construction, power and water supply	4,077	4,087	3,795	3,837	3,970	3,719	3,678	3,703	3,661
Retail trade, hotels and restaurants	2,586	2,649	2,578	2,607	2,517	2,555	2,826	3,014	2,621
Maritime sector	4,537	4,787	5,006	5,177	4,660	4,678	4,667	4,609	4,227
Commercial Real Estate	15,509	15,215	14,753	14,689	14,878	14,530	14,726	14,915	15,168
Business services	3,423	3,014	2,840	2,158	2,146	2,053	2,088	2,060	2,162
Transport and other services provision	6,942	6,994	6,636	6,379	5,409	5,459	5,285	4,977	4,961
Public administration	33	29	26	17	12	14	15	15	55
Other sectors	1,638	1,645	1,632	1,742	1,863	2,026	2,036	1,720	1,679
Gross loans in corporate market	58,340	56,893	55,238	53,767	52,740	52,609	52,499	52,354	52,186
Retail customers	124,461	122,529	119,861	117,004	115,036	112,772	111,128	108,738	108,131
Gross loans incl. Boligkreditt and Næringskreditt	182,801	179,423	175,100	170,771	167,777	165,380	163,627	161,091	160,317
of which Boligkreditt	46,613	44,160	43,073	41,972	39,833	39,713	40,064	39,220	38,062
of which Næringskreditt	1,540	1,622	1,400	1,526	1,667	1,701	1,668	1,771	1,782
Gross loans in balance sheet	134,648	133,640	130,627	127,272	126,277	123,967	121,895	120,100	120,473
Share of volume, corporate market	32%	32%	32%	31%	31%	32%	32%	32%	33%
Share of volume, retail market	68%	68%	68%	69%	69%	68%	68%	68%	67%

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 2020	NOK billion	%
A	45.1	22.6 %
B	53.5	26.8 %
C	48.2	24.2 %
D	16.5	8.2 %
E	12.7	6.4 %
F	10.7	5.3 %
G	5.9	3.0 %
H	2.9	1.5 %
I	1.9	1.0 %
J	0.4	0.2 %
K	1.7	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 December 2020	Total	risk	risk	risk	risk	risk	written down
Personal customers	122,755	105,749	11,602	3,297	833	933	340
Public administration	420	420	0	0	0	0	0
Agriculture and forestry	15,920	8,694	4,915	1,408	498	379	26
Fish farming industries	3,384	1,095	2,146	82	53	1	8
Manufacturing	3,615	1,034	515	1,483	435	127	20
Construction, power and water supply	5,042	1,272	1,063	2,118	388	90	111
Retail trade, hotels and restaurants	3,731	1,096	1,052	1,283	162	101	37
Maritime sector	1,483	264	709	352	0	6	152
Property management	16,188	10,172	3,047	2,355	313	209	92
Business services	5,488	1,102	1,424	2,674	81	30	178
Transport and other services	11,347	5,810	2,707	1,500	122	54	1,155
Finance	0	0	0	0	0	0	0
Other sectors	10,143	10,035	0	39	21	0	47
4Q20	199,515	146,743	29,179	16,591	2,906	1,931	2,165

Five years [NOK million]		Very low	Low	Medium	High	Very high	Default and
	Total	risk	risk	risk	risk	risk	written down
YTD 20	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
2016	155,065	108,123	21,643	18,875	2,766	1,702	1,956

Write-downs on loans and guarantees

Quarterly figures [NOK million]	4Q20	3Q20	2Q20	1Q20	4Q19	3Q19	2Q19	1Q19	4Q18
Change in provision for expected credit losses for
the period	167	222	152	188	81	60	44	61	22
Actual loan losses on commitments
exceeding provisions made	110	-7	22	143	23	14	16	8	46
Recoveries on commitments previously
written-off	-35	16	-5	-22	-2	-2	-2	-2	-1
Write-downs on loans and guarantees¹	242	231	169	309	103	71	59	67	67
As % of gross loans incl. Boligkreditt	0.54%	0.52%	0.39%	0.73%	0.25%	0.17%	0.14%	0.17%	0.17%
Five years [NOK million]	YTD 20	2019	2018	2017	2016
Change in provision for expected credit losses for
the period	729	246	150
Actual loan losses on commitments exceeding
provisions made	268	62	127
Recoveries on commitments previously
written-off	-46	-8	-15
Write-downs on loans and guarantees¹	951	299	263
As % of gross loans incl. Boligkreditt	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]	4Q20	3Q20	2Q20	1Q20	4Q19	3Q19	2Q19	1Q19	4Q18
Retail Market	-2	16	-2	44	9	12	5	6	-1
Corporate Market	232	204	153	258	73	47	39	53	59
SMN Finans and other	13	12	19	6	19	13	15	8	10
Total loss on loans	242	231	170	308	103	71	59	67	67
Five years [NOK million]	YTD 20	2019	2018	2017	2016
Retail Market	56	32	17	5	13
Corporate Market	846	213	212	318	490
SMN Finans and other	49	54	34	18	14
Total loss on loans	951	299	263	341	516
Write-down ratio

Quarterly figures [NOK million]	4Q20	3Q20	2Q20	1Q20	4Q19	3Q19	2Q19	1Q19	4Q18
Non-performing commitments (gross)	456	484	678	649	429	424	356	288	310
Impaired commitments (gross)	1,799	1,848	1,692	2,097	1,680	1,700	1,641	1,591	1,372
Gross non-performing and impaired commitments	2,255	2,332	2,370	2,747	2,109	2,123	1,998	1,880	1,682

1.8 Capital Markets funding

	Parent bank
--	-------------	--	--

Total capital markets funding	46,921	49,098	49,131	52,579	46,311
Subordinated loan capital	1,752	1,752	1,752	2,026	2,047
Hybrid equity	1,250	1,203	1,250	1,250	1,250
Curr bonds	26,102	32,060	31,778	34,844	29,699
NOK bonds	17,817	14,083	14,350	14,459	13,315
Quarterly figures [NOK million]	2020	2020	2020	2020	2019
	31 Dec	30 Sep	30 Jun	31 Mar	31 Dec

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]	2020	2020	2020	2020	2019	2019	2019	2019	2018
Common equity Tier 1 capital	17,041	16,711	16,547	16,155	15,830	15,758	15,625	15,122	14,727
Tier 1 capital	18,636	18,290	18,182	17,792	17,742	17,417	17,284	16,775	16,472
Total eligible capital	20,759	20,373	20,266	19,879	19,854	19,765	19,634	19,115	18,743
Risk-weighted assets (RWA)	93,096	95,156	96,181	98,832	91,956	104,464	104,240	102,495	101,168
Common equity Tier 1 ratio	18.3 %	17.6 %	17.2 %	16.3 %	17.2 %	15.1 %	15.0 %	14.8 %	14.6 %
Tier 1 capital ratio	20.0 %	19.2 %	18.9 %	18.0 %	19.3 %	16.7 %	16.6 %	16.4 %	16.3 %
Capital ratio	22.3 %	21.4 %	21.1 %	20.1 %	21.6 %	18.9 %	18.8 %	18.6 %	18.5 %
	YTD	31 Dec	31 Dec	31 Dec	31 Dec
Five years [NOK million]	2020	2019	2018	2017	2016
Common equity Tier 1 capital	17,041	15,830	14,727	13,820	13,233
Tier 1 capital	18,636	17,742	16,472	15,707	15,073
Total eligible capital	20,759	19,854	18,743	17,629	17,189
Risk-weighted assets (RWA)	93,096	91,956	101,168	94,807	88,786
Common equity Tier 1 ratio	18.3 %	17.2 %	14.6 %	14.6 %	14.8 %
Tier 1 capital ratio	20.0 %	19.3 %	16.3 %	16.6 %	16.8 %
Capital ratio	22.3 %	21.6 %	18.5 %	18.6 %	19.2 %
Leverage ratio
	31 Dec	30 Sep	30 Jun	31 Mar	31 Dec	30 Sep	30 Jun	31 Mar	31 Dec
Quarterly figures [NOK million]	2020	2020	2020	2020	2019	2019	2019	2019	2018
Calculation basis for leverage ratio	262,915	259,156	262,834	256,248	236,441	234,678	230,667	227,862	223,853
Tier 1 capital	18,636	18,290	18,182	17,792	17,742	17,417	17,284	16,775	16,472
Leverage ratio	7.1 %	7.1 %	6.9 %	6.9 %	7.5 %	7.4 %	7.5 %	7.4 %	7.4 %
	YTD	31 Dec	31 Dec	31 Dec	31 Dec
Five years [NOK million]	2020	2019	2018	2017	2016
Calculation basis for leverage ratio	262,915	236,441	223,853	218,479	203,005
Tier 1 capital	18,636	17,742	16,472	15,707	15,073

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

Spesification of capital requirements

	31 Dec	30 Sep	30 Jun	31 Mar	31 Dec	30 Sep	30 Jun	31 Mar	31 Dec
Quarterly figures [NOK million]	2020	2020	2020	2020	2019	2019	2019	2019	2018
Capital adequacy
Total book equity	21,310	20,829	20,320	19,600	20,420	19,904	19,450	18,673	18,686
Additional Tier 1 capital instruments included in total equity	-1,293	-1,244	-1,254	-1,268	-1,293	-1,004	-1,013	-1,023	-1,043
Deferred taxes, goodwill and other intangible assets	-1,044	-1,047	-1,042	-1,059	-1,099	-1,106	-1,105	-1,073	-1,079
Deduction for allocated dividends and gifts	-890	0	0	0	-1,314	0	0	0	-1,034
Non-controlling interests recognised in other equity capital	-838	-800	-768	-760	-761	-792	-781	-665	-637
Non-controlling interests eligible for incl. in CET1 capital	488	414	401	398	438	450	447	392	366
Net profit	0	-1,528	-1,008	-290	0	-2,217	-1,729	-1,046	0
Year-to-date profit included in core capital (50 per cent pre tax of group profit in 2017) Value adjustments due to requirements for prudent	0	739	618	266	0	1,128	879	537	0
valuation	-56	-59	-62	-62	-45	-44	-44	-43	-44
Positive value of adj. expected loss under IRB Approach	-74	-98	-248	-329	-351	-383	-309	-303	-286
Cash flow hedge reserve	10	13	14	13	3	5	5	5	5
Deduction for commom equity Tier 1 capital in significant investments in financial institutions	-572	-510	-424	-353	-168	-183	-175	-333	-206
Common equity Tier 1 capital	17,041	16,711	16,547	16,155	15,830	15,758	15,625	15,122	14,727
Addtional Tier 1 capital instruments	1,595	1,579	1,635	1,637	1,637	1,384	1,384	1,377	1,378
Additional Tier 1 capital instruments covered by transitional provisions	0	0	0	0	275	275	275	275	367
Tier 1 capital	18,636	18,290	18,182	17,792	17,742	17,417	17,284	16,775	16,472
Subordinated capital	2,262	2,240	2,240	2,240	2,240	2,310	2,310	2,298	2,316
Subordinated capital covered by transitional provisions	0	0	0	0	12	179	182	184	96
Deduction for significant investments in financial institutions	-139	-157	-157	-153	-140	-141	-141	-142	-140
Additional Tier 2 capital instruments	2,123	2,083	2,083	2,087	2,113	2,348	2,351	2,340	2,272
Total eligible capital	20,759	20,373	20,266	19,879	19,854	19,765	19,634	19,115	18,743

	31 Dec	30 Sep	30 Jun	31 Mar	31 Dec	30 Sep	30 Jun	31 Mar	31 Dec
Quarterly figures [NOK million]	2020	2020	2020	2020	2019	2019	2019	2019	2018
Minimum requirements subordinated capital
Specialised enterprises	1,240	1,236	1,166	1,153	1,101	1,128	1,094	1,106	1,116
Corporate	930	991	1,052	1,279	1,149	1,194	1,163	1,161	1,163
Mass market exposure, mortgages	2,261	2,282	2,290	2,310	2,299	2,169	2,166	2,126	2,098
Other mass market	110	111	115	100	101	106	102	97	92
Equity investments, IRB	1	1	1	1	1	1	1	1	1
Total credit risk IRB	4,541	4,621	4,624	4,842	4,651	4,597	4,525	4,491	4,470
Central government	2	2	5	4	3	2	3	3	4
Covered bonds	142	162	159	152	132	149	136	135	124
Institutions	332	402	504	466	282	301	300	269	246
Local and regional authorities, state-owned enterprises	27	21	17	15	5	5	8	10	8
Corporate	281	253	251	227	239	237	237	251	221
Mass market	476	470	465	474	463	532	525	536	520
Exposures secured on real property	136	154	157	174	167	200	207	211	215
Equity positions	408	400	394	383	377	371	369	365	366
Other assets	159	161	150	150	151	157	167	169	107
Total credit risk standardised approach	1,962	2,025	2,102	2,045	1,818	1,955	1,952	1,949	1,810
Debt risk	31	43	44	48	34	27	35	45	31
Equity risk	18	9	10	7	15	6	14	12	7
Currency risk	3	3	1	3	3	3	3	3	3
Operational risk	770	720	720	720	720	656	656	654	575
Credit value adjustment risk (CVA)	123	192	193	240	115	130	122	118	122
Transitional arrangements	0	0	0	0	0	983	1,032	929	1,074
Minimum requirements subordinated capital	7,448	7,612	7,694	7,907	7,357	8,357	8,339	8,200	8,093
Risk-weighted assets (RWA)	93,096	95,156	96,181	98,832	91,956	104,464	104,240	102,495	101,168
Minimum requirement on CET1 capital, 4.5 per cent	4,189	4,282	4,328	4,447	4,138	4,701	4,691	4,612	4,553
Capital conservation buffer, 2,5 per cent	2,327	2,379	2,405	2,471	2,299	2,612	2,606	2,562	2,529
Systemic risk buffer, 3.0 per cent	4,189	2,855	2,885	2,965	2,759	3,134	3,127	3,075	3,035
Countercyclical buffer, 2.0 per cent (1.5 per cent)	931	952	962	988	2,299	2,089	2,085	2,050	2,023
Available CET1 capital after buffer requirements	5,404	6,243	5,968	5,284	4,335	3,222	3,116	2,823	2,587
Common equity Tier 1 capital ratio	18.3 %	17.6 %	17.2 %	16.3 %	17.2 %	15.1 %	15.0 %	14.8 %	14.6 %
Tier 1 capital ratio	20.0 %	19.2 %	18.9 %	18.0 %	19.3 %	16.7 %	16.6 %	16.4 %	16.3 %
Total eligible capital	22.3 %	21.4 %	21.1 %	20.1 %	21.6 %	18.9 %	18.8 %	18.6 %	18.5 %
Leverage ratio
Balance sheet items	256,978	252,366	255,493	249,366	230,048	228,285	223,781	221,200	216,240
Off-balance sheet items	7,514	8,333	8,944	8,702	7,897	7,939	8,343	8,262	9,086
Regulatory adjustments	-1,577	-1,543	-1,603	-1,820	-1,503	-1,546	-1,458	-1,600	-1,474
Calculation basis for leverage ratio	262,915	259,156	262,834	256,248	236,441	234,678	230,667	227,862	223,853
Tier 1 capital	18,636	18,290	18,182	17,792	17,742	17,417	17,284	16,775	16,472
Leverage ratio	7.1 %	7.1 %	6.9 %	6.9 %	7.5 %	7.4 %	7.5 %	7.4 %	7.4 %

Total eligible capital	20,759	19,854	18,743	17,629	17,189
Additional Tier 2 capital instruments	2,123	2,113	2,272	1,922	2,116
Deduction for significant investments in financial institutions	-139	-140	-140	-254	-256
Subordinated capital covered by transitional provisions	0	12	96	561	673
Subordinated capital	2,262	2,240	2,316	1,615	1,698
Tier 1 capital	18,636	17,742	16,472	15,707	15,073
Hybrid capital covered by transitional provisions	0	275	367	459	483
Hybrid capital, core capital	1,595	1,637	1,378	1,427	1,358
Common equity Tier 1 capital	17,041	15,830	14,727	13,820	13,233
companies
(DVA) Direct, indirect and synthetic investments in financial sector	10 -572	3 -168	5 -206	7 -212	0 -337
Adjustments for unrealised losses (gains) arising from the institution's own credit risk related to derivative liabilities
Approach	-74	-351	-286	-333	-248
valuation Positive value of adjusted expected loss under IRB	-56	-45	-44	-41	-48
tax of group profit in 2017) Value adjustments due to requirements for prudent	0	0	0	0	0
Year-to-date profit included in core capital (50 per cent pre
capital Net profit	488 0	438 0	366 0	324 0	220 0
Non-controlling interests eligible for inclusion in CET1
Non-controlling interests recognised in other equity capital	-838	-761	-637	-565	-425
Deduction for allocated dividends and gifts	-890	-1,314	-1,034	-893	-609
Part of reserve for unrealised gains, associated companies	0	0	0	0	117
Deferred taxes, goodwill and other intangible assets	-1,044	-1,099	-1,079	-984	-741
Hybrid capital included in total equity	-1,293	-1,293	-1,043	-993	-950
Total book equity	21,310	20,420	18,686	17,510	16,253
Capital adequacy
Five years [NOK million]	2020	2019	2018	2017	2016
	YTD	31 Dec	31 Dec	31 Dec	31 Dec

	YTD	31 Dec	31 Dec	31 Dec	31 Dec
Five years [NOK million]	2020	2019	2018	2017	2016
Minimum requirements subordinated capital
Specialised enterprises	1,240	1,101	1,116	1,107	1,206
Corporate	930	1,149	1,163	1,113	1,102
Mass market exposure, mortgages	2,261	2,299	2,098	1,892	1,753
Other mass market	110	101	92	91	88
Equity investments, IRB	1	1	1	1	3
Total credit risk IRB	4,541	4,651	4,470	4,205	4,153
Central government	2	3	4	3	5
Covered bonds	142	132	124	146	130
Institutions	332	282	246	333	340
Local and regional authorities, state-owned enterprises	27	5	8	4	7
Corporate	281	239	221	226	253
Mass market	476	463	520	405	179
Exposures secured on real property	136	167	215	193	342
Equity positions	408	377	366	344	338
Other assets	159	151	107	166	178
Total credit risk standardised approach	1,962	1,818	1,810	1,820	1,772
Debt risk	31	34	31	18	36
Equity risk	18	15	7	22	5
Currency risk	3	3	3	1	1
Operational risk	770	720	575	510	479
Credit value adjustment risk (CVA)	123	115	122	117	84
Transitional arrangements	0	0	1,074	891	574
Minimum requirements subordinated capital	7,448	7,357	8,093	7,585	7,103
Risk-weighted assets (RWA)	93,096	91,956	101,168	94,807	88,786
Minimum capital requirement, transitional rules 4.5 per cent	4,189	4,138	4,553	4,266	3,995
Capital conservation buffer, 2,5 per cent	2,327	2,299	2,529	2,370	2,220
Systemic risk buffer, 3.0 per cent	4,189	2,759	3,035	2,844	2,664
Countercyclical buffer, 2.0 per cent (1.5 per cent)	931	2,299	2,023	1,896	1,332
Available CET1 capital after buffer requirements	5,404	4,335	2,587	2,444	3,022
Common equity Tier 1 ratio	18.3 %	17.2 %	14.6 %	14.6 %	14.8 %
Tier 1 capital ratio	20.0 %	19.3 %	16.3 %	16.6 %	16.8 %
Capital ratio	22.3 %	21.6 %	18.5 %	18.6 %	19.2 %
Leverage ratio
Balance sheet items	256,978	230,048	216,240	210,764	194,324
Off-balance sheet items	7,514	7,897	9,086	9,295	10,068
Regulatory adjustments	-1,577	-1,503	-1,474	-1,580	-1,388
Calculation basis for leverage ratio	262,915	236,441	223,853	218,479	203,005
Tier 1 capital
	18,636	17,742	16,472	15,707	15,073
Leverage ratio	7.1 %	7.5 %	7.4 %	7.2 %	7.4 %

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	2020	Market	Market	Markets	Midt- Norge	Norge	huset SMN	Gruppen	BN Bank	collated²	Total
Net interest		1,112	1,085	-14	2	371	1	0	0	202	2,759
Allocated		101	63	0	0	0	0	0	0	-165	0
Total interest income		1,213	1,149	-14	2	371	1	0	0	37	2,759
Commission income and other income		867	211	693	392	-22	533	0	0	-102	2,572
Net profit on financial investments		-2	21	137	0	0	0	194	120	481	951
Total income		2,078	1,381	816	394	349	533	194	120	416	6,281
Total operating expenses		929	422	637	342	86	423	0	0	114	2,952
Ordinary operating profit		1,149	959	179	52	263	110	194	120	301	3,329
Loss on loans, guarantees etc.		56	846	0	0	49	0	0	0	1	951
Result before tax		1,093	113	179	52	214	110	194	120	301	2,378
Post- tax return on equity³		13.4 %	2.1 %								10.0 %
Main balance sheet items
Loans and advances to customers adv. of this to Boligkreditt and		129,149	44,845	0	0	9,549	0	0	0	-742	182,801
Næringskreditt		-46,899	-1,354	0	0	0	0	0	0	100	-48,153
Loss on loans		-148	-1,298	0	0	-67	0	0	0	-4	-1,517
Other assets		156	10,471	3,265	357	116	592	2,151	1,514	36,160	54,781
Total assets		82,258	52,663	3,265	357	9,598	592	2,151	1,514	35,514	187,912
Deposits to customers		47,478	49,420	0	0	0	0	0	0	631	97,529
Other liabilities and equity Total liabilites		34,780 82,258	3,244 52,663	3,265 3,265	357 357	9,598 9,598	592 592	2,151 2,151	1,514 1,514	34,883 35,514	90,383 187,912

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]	4Q20	3Q20	2Q20	1Q20	4Q19	3Q19	2Q19	1Q19	4Q18
Retail	289	285	237	301	298	301	283	278	288
Corporate	258	268	289	271	267	253	256	247	251
Net interest income	547	553	526	571	566	554	539	526	540

Development in margin¹, Retail Market and Corporate Market

Quarterly figures [percentage]	4Q20	3Q20	2Q20	1Q20	4Q19	3Q19	2Q19	1Q19	4Q18
Lending
Retail	1.73	1.87	1.99	1.63	1.40	1.49	1.50	1.60	1.63
Corporate	2.64	2.85	3.10	2.69	2.52	2.53	2.56	2.69	2.73
Total	1.93	2.09	2.24	1.86	1.64	1.71	1.73	1.84	1.88
Quarterly figures [percentage]	4Q20	3Q20	2Q20	1Q20	4Q19	3Q19	2Q19	1Q19	4Q18
Deposits
Retail	-0.01	-0.19	-0.47	0.50	0.75	0.66	0.59	0.46	0.39
Corporate	-0.21	-0.24	-0.26	0.04	0.13	0.08	0.02	0.02	-0.02
Total	-0.11	-0.21	-0.37	0.27	0.43	0.36	0.29	0.24	0.19

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

Development in volume, Retail Market and Corporate Market

Total	173,994	170,639	166,531	162,443	159,543	157,384	153,711	151,921	153,271
Corporate	44,845	43,700	42,366	41,174	40,162	40,502	38,422	38,881	40,548
Retail	129,149	126,939	124,165	121,269	119,381	116,882	115,289	113,040	112,723
Lending²
Quarterly figures [NOK million]	4Q20	3Q20	2Q20	1Q20	4Q19	3Q19	2Q19	1Q19	4Q18

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

Corporate 49,420 46,404 44,715 42,710 42,756 40,542 42,374	80,206 79,282
	39,471 39,236
Retail 47,478 47,574 48,103 43,961 41,639 41,674 42,795	40,734 40,046
Deposits
Quarterly figures [NOK million] 4Q20 3Q20 2Q20 1Q20 4Q19 3Q19 2Q19	1Q19 4Q18

Development in commision income, Retail Market and Corporate Market

Quarterly figures [NOK million]	4Q20	3Q20	2Q20	1Q20	4Q19	3Q19	2Q19	1Q19	4Q18
Retail	256	240	173	196	208	212	197	188	203
Corporate	48	56	63	65	60	52	49	57	54
Total	304	296	236	261	269	263	246	244	257

2.2 Retail market

Business description

	31 Dec
Facts about the business area	2020
Lending volume	129,149
Deposits volume	47,478
No. of active cutomers	245,697
FTEs	369

Financial performance

Quarterly figures [NOK million]	4Q20	3Q20	2Q20	1Q20	4Q19	3Q19	2Q19	1Q19	4Q18
Net interest income lending	197	201	140	140	136	150	147	156	169
Net interest income deposits	85	78	92	153	157	148	134	123	113
Net interest income allocated capital	5	26	36	61	64	53	53	52	52
Total interest income	287	304	268	354	357	351	334	330	334
Net guarantee commission, incl BK, NK	143	138	72	100	102	102	99	94	99
Net commission of savings products	27	23	19	14	22	21	14	14	22
Net commission insurance services	44	43	41	40	40	40	39	38	38
Net commission payment trans. services	41	36	41	44	44	48	45	42	45
Other commision income	0	1	0	0	0	1	0	0	0
Net fee and commission income	255	241	173	198	208	212	197	188	203
Net profit on financial investments	1	-1	0	-2	0	0	0	0	0
Total income	543	544	441	550	565	563	532	518	537
Total operating expenses¹	225	233	225	246	221	222	215	217	207
Result before losses	318	311	217	303	344	341	317	301	330
Loss on loans, guarantees etc.	-2	16	-2	44	9	11	6	6	-1
Result before tax	320	295	218	260	335	330	311	295	332

	YTD	31 Dec	31 Dec	31 Dec	31 Dec
Five years [NOK million]	2020	2019	2018	2017	2016
Net interest income lending	677	589	624	572	457
Net interest income deposits	408	561	419	411	438
Net interest income allocated capital	128	221	190	154	57
Total interest income	1,213	1,372	1,234	1,137	953
Net guarantee commission, incl BK, NK	453	397	394	392	306
Net commission of savings products	83	70	75	70	63
Net commission insurance services	168	158	151	151	139
Net commission payment trans. services	161	179	172	175	171
Other commision income	1	1	1	1	1
Net fee and commission income	867	805	793	789	679
Net profit on financial investments	-2	0	0	0	-1
Total income	2,078	2,177	2,027	1,926	1,631
Total operating expenses¹	929	875	804	794	770
Result before losses	1,149	1,302	1,223	1,132	861
Loss on loans, guarantees etc.	56	32	17	5	13
Result before tax	1,093	1,270	1,206	1,127	849
Post- tax return on equity (annualized)²	13.4 %	13.1 %	13.2 %	16.6 %	13.8 %

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 Dec
Facts about the business area	2020
Lending volume	44,845
Deposits volume	49,420
No. of active cutomers	15,564
FTEs	156

Financial performance

Quarterly figures [NOK million]	4Q20	3Q20	2Q20	1Q20	4Q19	3Q19	2Q19	1Q19	4Q18
Net interest income lending	206	210	184	170	176	174	185	179	186
Net interest income deposits	45	52	94	87	75	70	64	62	56
Net interest income allocated capital	1	15	34	52	55	44	44	42	41
Total interest income	253	277	311	308	307	288	293	284	283
Net guarantee commission, incl BK, NK	13	20	20	19	21	18	17	20	19
Net commission of savings products	0	0	1	0	0	-2	2	2	0
Net commission insurance services	7	7	6	7	6	6	6	6	6
Net commission payment trans. services	24	25	25	27	28	24	20	25	25
Other commision income	2	1	7	2	2	2	0	2	1
Net fee and commission income	45	53	59	54	57	48	45	55	51
Net profit on financial investments	3	3	4	10	3	3	4	2	2
Total income	301	332	374	373	367	340	341	340	336
Total operating expenses¹	101	104	105	113	103	100	103	104	94
Result before losses	201	228	269	261	264	239	239	236	242
Loss on loans, guarantees etc.	232	204	153	258	73	46	40	53	59
Result before tax	-31	25	116	3	190	193	199	183	183

Post- tax return on equity (annualized)²	2.1 %	11.7 %	11.3 %	10.5 %	6.9 %
Result before tax	113	765	744	632	3840
Loss on loans, guarantees etc.	846	213	212	318	490
Result before losses	959	978	956	950	873
Total operating expenses¹	422	410	373	365	332
Total income	1,381	1,388	1,329	1,315	1,205
Net profit on financial investments	21	12	17	9	9
Net fee and commission income	211	205	202	199	196
Other commision income	11	5	4	3	2
Net commission payment trans. services	101	97	92	86	84
Net commission insurance services	26	25	23	21	20
Net commission of savings products	1	2	2	2	2
Net guarantee commission, incl BK, NK	72	76	81	86	89
Total interest income	1,149	1,171	1,110	1,108	1,000
Net interest income allocated capital	102	185	157	157	78
Net interest income deposits	277	271	241	274	272
Net interest income lending	769	715	712	677	649
Five years [NOK million]	2020	2019	2018	2017	2016
	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 15.4 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]	4Q20	3Q20	2Q20	1Q20	4Q19	3Q19	2Q19	1Q19	4Q18
Net interest income	1	1	0	0	0	0	0	0	-3
Commission income and other income	93	111	105	83	122	142	115	84	108
Total income	94	113	105	83	122	141	115	84	105
Total operating expenses	91	92	75	83	128	148	91	93	134
Result before tax	3	20	30	0	-6	-7	23	-9	-29

	YTD	31 Dec	31 Dec	31 Dec	31 Dec
Five years [NOK million]	2020	2019	2018	2017	2016
Net interest income	2	-1	-1	3	4
Commission income and other income	392	463	497	473	426
Total income	394	462	496	477	430
Total operating expenses	342	461	519	474	363
Result before tax	52	1	-23	3	68

SpareBank 1 Finans Midt- Norge AS

Ownership 61.2 %

the Bank's offices and other partners.

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]	4Q20	3Q20	2Q20	1Q20	4Q19	3Q19	2Q19	1Q19	4Q18
Net interest income	100	100	90	82	82	79	76	75	75
Net commission income	-7	-7	-4	-6	-5	-7	-6	-7	-4
Total income	94	93	86	76	77	72	70	69	70
Total operating expenses	18	23	20	24	23	19	22	22	19
Ordinary operating profit	75	71	66	52	54	53	48	47	51
Loss on loans, guarantees etc.	13	12	20	5	19	12	13	8	10
Result before tax	63	59	46	47	35	41	35	40	42

	YTD	31 Dec	31 Dec	31 Dec	31 Dec
Five years [NOK million]	2020	2019	2018	2017	2016
Net interest income	371	313	275	228	183
Net commission income	-22	-26	-19	-15	-11
Total income	349	287	256	213	172
Total operating expenses	86	85	73	67	55
Ordinary operating profit	263	202	182	146	117
Loss on loans, guarantees etc.	49	52	34	18	13
Result before tax	214	150	149	128	104

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]	4Q20	3Q20	2Q20	1Q20	4Q19	3Q19	2Q19	1Q19	4Q18
Net interest income	0	1	0	0	0	0	0	0	0
Commission income and other income	118	111	147	156	111	100	151	140	107
Total income	118	112	147	156	112	100	151	140	107
Total operating expenses	96	91	108	129	85	80	110	119	93
Result before tax	22	21	40	27	27	20	41	21	14

	YTD	31 Dec	31 Dec	31 Dec	31 Dec
Five years [NOK million]	2020	2019	2018	2017	2016
Net interest income	1	0	0	-1	0
Commission income and other income	533	502	444	377	234
Total income	533	502	444	376	235
Total operating expenses	423	394	373	315	191
Result before tax	110	108	71	61	44

SpareBank 1 Markets AS

Ownership 66.7 %

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]	4Q20	3Q20	2Q20	1Q20	4Q19	3Q19	2Q19	1Q19	4Q18
Net interest income	-3	-7	-1	-2	-3	-4	-5	-4	-3
Equities/ High Yield	92	70	71	39	56	27	49	51	39
Fixed Income	11	8	49	-21	11	8	12	12	10
Corporate	156	60	62	25	46	61	64	43	74
Foreign exchange/ interest rate derivatives	28	23	40	45	28	31	37	21	30
Asset Management	20	13	13	12	20	12	12	11	0
Other commission income	2	3	4	4	1	3	2	6	0
Total income	305	170	238	103	157	139	172	140	150
Total operating expenses	216	135	168	118	153	129	146	138	156
Ordinary operating profit	90	35	71	-15	4	11	26	2	-6
Loss on loans, guarantees etc.	0	0	0	0	0	0	0	0	0
Result before tax	90	35	71	-15	4	11	26	2	-6

Five years [NOK million] 2020 2019 2018 2017 2016 Net interest income -14 -17 -14 -15 -8 Equities/ High Yield 273 184 195 152 97 Fixed Income 47 44 40 41 20 Corporate 303 214 183 112 87 Foreign exchange/ interest rate derivatives 137 117 105 82 88 Asset Management 57 56 32 53 0 Other commission income 14 13 10 11 8 Total income 816 609 551 437 292 Total operating expenses 637 566 536 435 282 Ordinary operating profit 179 43 15 2 10 Loss on loans, guarantees etc. 0 0 0 0 0 Result before tax 179 43 15 2 10	YTD	31 Dec	31 Dec	31 Dec	31 Dec

Other subsidiaries

SpareBank 1 Spire Finans

A bank catering exclusively to small and medium-sized businesses that specialise in factoring. SpareBank 1 Spire Finans is headquartered in Trondheim. SpareBank 1 SMN is increasing its focus on small and medium-sized businesses and strengthening its offering in the factoring area through this acquisition.

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 potential in the same market area.

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 %
VPF Nordea Norge	4,292,153	3.31%
State Street Bank and Trust Comp	4,277,667	3.29%
Sparebankstiftelsen SMN	3,965,391	3.05%
VPF Odin Norge	3,342,919	2.57%
Danske Invest Norske aksjer institusjon II.	2,951,830	2.27%
VPF Alfred Berg Gambak	2,623,661	2.02%
VPF Pareto aksje Norge	2,525,369	1.95%
J. P. Morgan Chase Bank, N.A., London	2,041,745	1.57%
State Street Bank and Trust Comp	2,009,667	1.55%
VPF Eika egenkapitalbevis	1,948,461	1.50%
Forsvarets personellservice	1,906,246	1.47%
Pareto Invest AS	1,821,106	1.40%
VPF Nordea Kapital	1,390,601	1.07%
MP Pensjon PK	1,352,771	1.04%
Citibank N.A	1,340,632	1.03%
Danske Invest Norske aksjer institusjon I	1,295,275	1.00%
VPF Nordea Avkastning	1,249,111	0.96%
VPF Alfred Berg Norge	1,205,659	0.93%
Morgan Stanley & Co. International	1,031,733	0.79%
Landkreditt utbytte	1,000,000	0.77%
Total 20 largest shareholders	43,571,997	33.56%
Others	86,264,446	66.44%
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