Sparebanken Møre

Quarterly Report • Oct 20, 2016

2016 unaudited interim report 3 quarter

Financial highlights - Group

Income statement

	Q3 2016		Q3 2015		30.09.2016		30.09.2015		2015
	NOK million	%	NOK million	%	NOK million	%	NOK million	%	NOK million	%
Net interest income	278	1,82	283	1,93	803	1,77	813	1,88	1 098	1,89
Net commission and other operating income	49	0,32	52	0,37	137	0,31	150	0,35	193	0,33
Net return from financial investments	25	0,16	-19	-0,15	99	0,22	15	0,03	12	0,02
Total income	352	2,30	316	2,15	1 039	2,30	978	2,26	1 303	2,24
Total operating costs	148	0,97	146	1,00	443	0,98	437	1,01	561	0,96
Profit before impairment on loans	204	1,33	170	1,15	596	1,32	541	1,25	742	1,28
Impairment on loans, guarantees etc.	5	0,03	10	0,07	0	0,00	25	0,06	50	0,09
Pre tax profit	199	1,30	160	1,08	596	1,32	516	1,19	692	1,19
Tax	47	0,31	46	0,31	138	0,31	141	0,33	189	0,32
Profit after tax	152	0,99	114	0,77	458	1,01	375	0,86	503	0,87

Statement of financial position

NOK million	30.09.2016	% change YTD 2016	31.12.2015	% change during last 12 months	30.09.2015
Total assets	61 790	2,8	60 120	3,6	59 641
Average assets	60 355	3,9	58 113	4,8	57 570
Loans to and receivables from customers	51 753	0,9	51 286	0,6	51 419
Gross loans to retail customers	36 415	4,6	34 822	6,2	34 299
Gross loans to corporate and public entities	15 467	-6,4	16 526	-9,8	17 138
Deposits from customers	32 350	10,1	29 389	10,5	29 286
Deposits from retail customers	18 512	3,8	17 829	5,2	17 605
Deposits from corporate and public entities	13 690	18,5	11 550	20,1	11 403

Key figures

	Q3 2016		Q3 2015 30.09.2016	30.09.2015	2015
Return on equity (annualised)	12,1	9,6	12,4	10,8	10,7
Costs as a percentage of income	42,3	46,4	42,6	44,7	43,0

Losses as a percentage of loans 1.1/start of the period	0,01	0,07	0,00	0,07	0,10
Problem loans as a percentage of loans (prior to impairment)	0,43	0,46	0,43	0,46	0,47
Problem loans as a percentage of loans (after impairment)	0,30	0,29	0,30	0,29	0,32
Deposits to lending ratio as a percentage	62,5	57,0	62,5	57,0	57,3
Liquidity Coverage Ratio (LCR)	114	135	114	135	123
Lending growth as a percentage	1,1	1,9	0,6	8,3	4,9
Deposit growth as a percentage	2,4	2,3	10,5	2,6	3,5
Capital adequacy ratio 1) 2)	18,8	17,2	18,8	17,2	18,1
Core capital as a percentage 1) 2)	17,3	15,7	17,3	15,7	16,6
Core tier 1 capital as a percentage 1) 2)	14,9	13,3	14,9	13,3	14,1
Leverage Ratio (LR)	8,1	7,8	8,1	7,8	8,0
Man-years	378	388	378	388	388

Equity Certificates (ECs)

	30.09.2016	30.09.2015	2015	2014	2013	2012
Profit per EC (Group) (NOK)	22,95	18,80	25,25	31,20	21,65	31,05
Profit per EC (Parent Bank) (NOK)	25,50	21,30	25,70	29,10	18,45	27,75
EC fraction 1.1 as a percentage (Parent Bank)	49,6	49,6	49,6	49,6	47,7	46,0
Number of ECs issued (NOK million)	988,70	988,70	988,70	988,70	988,70	784,11
Price at Oslo Stock Exchange (NOK)	205	214	188	216	198	160
Stock market value (NOK million)	2 027	2 111	1 859	2 136	1 958	1 255
Book value per EC (Group) (NOK)	263	248	253	242	223	219
Dividend per EC (NOK)	11,50	13,50	11,50	13,50	8,00	12,00
Price/Earnings (Group, annualised)	8,9	9,9	7,3	7,4	10,7	5,8
Price/Book value (P/B) (Group) 3)	0,78	0,86	0,74	0,89	0,89	0,73

1) Calculated according to IRB in Basel II incl. transitional rule in Basel I. IRB for mass market from 31st March 2015 and IRB Foundation for corporate commitments from 30th June 2014.

2) Incl. 50 per cent of profit after tax

3) Incl. 100 per cent of profit after tax

Interim report from the Board of Directors

All figuresrelate to the Group. Figuresin bracketsrefer to the corresponding period last year. The financialstatements have been prepared in accordance with IFRS and the interim report has been prepared in conformity with IAS 34 Interim Financial Reporting.

RESULTSASPERQ3 2016

Sparebanken Møre's profit after losses after the third quarter of 2016 was NOK596 million, compared with NOK516 million for the same period in 2015.

Total income was NOK61 million higher than for the same period in 2015. Net interest income fell by NOK10 million and other operating income rose by NOK7 1 million. The increase in other operating income was primarily attributable to NOK45 million in proceedsfrom the VISA transaction, capital gainsfrom bonds ofNOK27 million, compared with capital losses ofNOK41 million last year, and income from interest transactions with customers being NOK14 million lower than after the third quarter of 2015.

Costs were NOK6 million higher while losses on loans and guarantees were NOK25 million lower than in the corresponding period last year.

The cost income ratio after the third quarter this year was 42.6 %. Thisrepresents a decrease of 2.1 percentage pointscompared to the same period in 2015. The cost income ratio for the year-to-date is better than Sparebanken Møre's maximum target of 45 %.

The profit after tax was NOK458 million, NOK83 million higher than after the same period last year. This year'sresult shows an annualised return on equity of12.4 %, compared to 10.8 %after the third quarter of 2015. Sparebanken Møre'sstrategic return on equity target is a minimum of10 %after tax.

The earnings per equity certificate after the third quarter of 2016 amounted to NOK22.95, compared with NOK18.80 for the same period last year.

The Board ofDirectorsissatisfied with the results after the third quarter of 2016.

The Visa transaction

Please refer to the information already provided in the 2015 annual report and the stock notification of 29 June 2016 on the agreement between Visa Europe Ltd and Visa Inc. concerning the sale of all of the sharesin Visa Europe. Sparebanken Møre has an interest in thistransaction due to itsstake in Visa Norge, which owns one share in Visa Europe Ltd., as well as a smaller interest through the sale ofNets/Teller in 2014. The transaction consists of a cash payment upon implementation, as well as a cash payment payable after 3 years, and convertible preferred shares.

The effect on the profit before tax from thisfirst tranche of the cash payment amountsto NOK45 million after the third quarter, with NOK38 million originating from the stake in Visa Norway and NOK7 million from the interest in Nets/Teller.

RESULTSFORQ3 2016

The profit after tax for the third quarter of 2016 amounted to NOK152 million, or 0.99 %of average total assets, compared to NOK 114 million, or 0.7 7 %, for the corresponding quarter last year. The return on equity in the third quarter of 2016 was12.1 %, compared with 9.6 %for the third quarter of 2015.

Earnings per equity certificate amounted to NOK7 .60 (NOK5.70) for the Group and NOK5.50 (NOK3.7 5) for the Parent Bank.

Net interest income

Net interest income ofNOK278 million was NOK5 million lower than in the corresponding quarter of last year. Thisrepresents 1.82 %of total assets, which is 0.11 percentage pointslower than in the third quarter of 2015.

The generally low level of interest ratesin the market, combined with strong competition for both loans and deposits, is affecting the performance of net interest income.

Other operating income

Other operating income amounted to NOK7 4 million, which is NOK41 million higher than in the third quarter of last year. Other operating income amounted to 0.48 %of average total assets, compared with 0.22 %in the corresponding quarter in 2015. Capital gains on the bond portfolio amounted to NOK17 million in the third quarter, compared with capital losses ofNOK32 million in the third quarter of 2015.

Costs

Operating costsin the quarter amounted to NOK148 million, which is NOK2 million higher than in the same quarter last year. Personnelcosts were unchanged from the same quarter last year and other operating costsincreased by NOK2 million compared with the corresponding period last year and amounted to NOK64 million. Staffing has been reduced by 10 full-time equivalentsin the last 12 monthsto 378 full-time equivalent positions.

The cost income ratio amounted to 42.3 %in the third quarter of 2016, which represents a reduction of 4.1 percentage points compared to third quarter last year.

Problem loans

Losses on lending and guarantees amounted to NOK5 million in the quarter. This amountsto 0.03 %of average total assets on an annualised basis. The corresponding figure for the third quarter of 2015 was NOK10 million (0.07 %). Collective impairmentsrose by NOK5 million. No losses were booked in the retailsegment or corporate segment in the quarter.

At the end of the third quarter of 2016, total impairmentsfor losses amounted to NOK337 million, equivalent to 0.65 %of gross lending (NOK323 million and 0.62 %of grosslending). NOK13 million of the individual impairmentsinvolved commitmentsin default for more than 90 days(NOK17 million), which represents 0.02 %of grosslending (0.03 %). NOK57 million relatesto other commitments(NOK69 million), which is equivalent to 0.11 %of grosslending (0.13 %). Collective impairments amounted to NOK 267 million (NOK237 million) or 0.51 %of grosslending (0.46 %).

Net problem loans(loansthat have been in default for more than 90 days and loansthat are not in default but which have been subject to an individual impairment for losses) have increased by NOK6 million in the last 12 months. At the end of the third quarter of 2016, the corporate market accounted for NOK106 million of net problem loans, and the retail market NOK49 million. In total thisrepresents 0.30 %of grosslending (0.29 %).

Lending to customers

At the end of the third quarter of 2016, lending to customers amounted to NOK51 7 53 million (NOK51 419 million). Net customer lending hasincreased by a total ofNOK334 million, or 0.6 %, in the last 12 months. Retail lending hasincreased by 6.2 %, while corporate lending has decreased by 9.8 %in the last 12 months. Retail lending accounted for 70.1 %of lending at the end of the third quarter of 2016 (66.3 %).

Customer deposits

Depositsfrom customers have increased by 10.5 %in the last 12 months. At the end of the third quarter of 2016, deposits amounted to NOK32 350 million (NOK29 286 million). Retail deposits have increased by 5.2 %in the last 12 months, while corporate deposits have increased by 20.0 %and public sector deposits have increased by 21.4 %. The retail market'srelative share of deposits amounted to 57 .3 %(60.8 %), while depositsfrom corporate customers accounted for 39.5 %(36.3 %) and from public sector customers 3.2 %(2.9 %).

The deposit to loan ratio amounted to 62.5 %at the end of the third quarter of 2016 (57 .0 %).

CAPITAL ADEQUACY

The Group'scapital adequacy ratio at the end of the third quarter of 2016 was above the regulatory capital requirements and the internally set minimum target for the core Tier 1 capital ratio.

The primary capital ratio, including 50 %ofretained earningsin the year-to-date, amountsto 18.8 %(17 .2 %), the core capital ratio amountsto 17 .3 %(15.7 %) and the core Tier 1 capital ratio amountsto 14.9 %(13.3 %).

Sparebanken Møre wassubject to a capital requirement linked to the transitionalscheme associated with the Basel I floor amounting to NOK203 million at the end of the third quarter of 2016, which correspondsto a basisfor calculation ofNOK2 537 million.

SUBSIDIARIES

The aggregate profit of the Bank'sthree subsidiaries amounted to NOK122 million after tax after the first three quarters of 2016

(NOK138 million).

Møre Boligkreditt ASwas established as part of the Group'slong-term funding strategy. The mortgage company's main purpose is to issue covered bondsfor sale to Norwegian and international investors. At the end of the quarter, the company had raised NOK 15.6 billion in funding for the Group. The company has made a NOK123 million contribution to the result so far in 2016 (NOK137 million).

Møre Eiendomsmegling AS providesreal estate brokerage servicesto both retail and corporate customers. The company has made a negative contribution to the result so far in 2016 ofNOK1 million (NOK1 million). At the end of the quarter, the company employed 14 full-time equivalents.

The object of Sparebankeiendom AS isto own and manage the Bank's own commercial properties. The company has made no contribution to the result so far in 2016. The company has no employees.

EQUITY CERTIFICATES

At the end of the third quarter of 2016, there were 5 7 65 holders of Sparebanken Møre's equity certificates. 9 886 954 equity certificates have been issued. The ECholders'share of the bank'stotal equity amountsto 49.6 %. Note 10 contains an overview of the 20 largest holders of the Bank's equity certificates.

As at 30 September 2016, the Bank owned 70 485 of its own equity certificates. These were purchased via the Oslo Stock Exchange at market price.

FUTURE PROSPECTS

Due to the continued low interest rates, a weakNorwegian krone, and an expansive fiscal policy, the level of activity in the county will probably remain stable for the rest of the year before possibly rising slightly next year. Output is high in a number of industries. Thisincludesfishing, traditional goods and services exports, building and construction, and tourism. Nevertheless, parts of Møre og Romsdal are still being affected by the falling level of activity in the oilsector.

Sparebanken Møre'slossesthis year are expected to remain low and end up at a lower level than in 2015.

At the end of September, registered unemployment in Møre og Romsdal was 3.0 %according to figuresfrom the Norwegian Labour and Welfare Administration (NAV). This was 0.2 percentage points higher than the national rate.

Credit growth slowed slightly in Norway during the first three quarters, while deposit growth hasincreased slightly. We continue to experience strong competition in the market, both for lending and deposits, but the Bank iscompetitive and continuesto record good lending and deposit growth. Competition isstillstrong within certain businesssectors. There is a constant focus on generating growth through good commitments with an acceptable level ofrisk.

The Bankwill remain strong and committed in supporting the businesssectorsin our region, Nordvestlandet.

Sparebanken Møre isfocusing on cost-effective operations. This hasresulted in a highly satisfactory level ofcosts. Thisfocus will continue, and the Group'scost income ratio this year is expected to remain within the internal target of 45 %.

Overall, good results are expected this year, with a return on equity exceeding the target of10 %.

Ålesund, 30 September 2016

19 October 2016

THE BOARD OF DIRECTORSOF SPAREBANKENMØRE

LEIF-ARNELANGØY, Chairman

ROY REITE, Deputy Chairman

RAGNA BRENNEBJERKESET

HENRIKGRUNG

ELISABETHMARÅKSTØLE

ANN MAGRITT BJÅSTADVIKEBAKK

HELGEKARSTENKNUDSEN

OLAV ARNEFISKERSTRAND, CEO

Statement of income - Group

STATEMENT OF INCOME - GROUP

Amounts in NOK million	Note	Q3 2016	Q3 2015	30.09.2016	30.09.2015	2015
Interest income		444	495	1 335		1 521 1 994
Interest costs		166	212	532	708	896
Net interest income	9	278	283	803		813 1 098
Commission income and revenues from banking services		50	52	142	151	196
Commission costs and expenditure from banking services		7	7	21	21	28
Other operating income		6	7	16	20	25
Net commission and other operating income		49	52	137	150	193
Dividends		0	0	1	1	2
Net gains/losses from financial instruments	5	25	-19	98	14	10
Net return from financial instruments		25	-19	99	15	12
Total income		352	316	1 039		978 1 303
Wages, salaries etc.		84	84	249	248	309
Administration costs		30	29	95	93	119
Depreciation and impairment		8	7	23	20	29
Other operating costs		26	26	76	76	104
Total operating costs		148	146	443	437	561
Profit before impairment on loans		204	170	596	541	742
Impairment on loans, guarantees etc.	3	5	10	0	25	50
Pre tax profit		199	160	596	516	692
Taxes		47	46	138	141	189
Profit after tax		152	114	458	375	503
Profit per EC (NOK)		7,60	5,70	22,95		18,80 25,25
Diluted earnings per EC (NOK)		7,60	5,70	22,95		18,80 25,25
Distributed dividend per EC (NOK)		0,00	0,00	11,50		13,50 13,50

STATEMENT OF COMPREHENSIVE INCOME - GROUP

Amounts in NOK million	Q3 2016	Q3 2015	30.09.2016	30.09.2015	2015
Profit after tax	152	114	458	375	503
Other income/costs reversed in ordinary profit:

Equities available for sale - changes in value	-3	-2	-41	-2	48
Other income/costs not reversed in ordinary profit:
Pension estimate deviations	0	0	0	0	-9
Tax effect of pension estimate deviations	0	0	0	0	-2
Total comprehensive income after tax	149	112	417	373	540

Statement of financial position - Group

STATEMENT OF FINANCIAL POSITION - GROUP

Assets
Amounts in NOK million	Note	30.09.2016	30.09.2015	31.12.2015
Cash and claims on Norges Bank	5 6 9	439	583	1 054
Loans to and receivables from credit institutions	5 6 9	622	1 170	1 205
Loans to and receivables from customers	2 3 4 5 7 9	51 753	51 419	51 286
Certificates, bonds and other interest-bearing securities	5 7 9	7 210	4 674	4 735
Financial derivatives	5 7	1 146	1 178	1 234
Shares and other securities	5 7	126	123	168
Deferred tax benefit		50	28	50
Intangible assets		50	47	48
Fixed assets		235	259	259
Other assets		159	160	81
Total assets		61 790	59 641	60 120

Liabilities and equity

Amounts in NOK million	Note	30.09.2016	30.09.2015	31.12.2015
Loans and deposits from credit institutions	5 6 9	649	1 090	1 058
Deposits from customers	2 5 7 9	32 350	29 286	29 389
Debt securities issued	5 6	20 998	21 721	21 918
Financial derivatives	5 7	503	623	592
Other liabilities		533	492	590
Incurred costs and prepaid income		94	98	75
Other provisions for incurred liabilities and costs		39	67	59
Perpetual Hybrid Tier 1 capital	5 6	811	819	826
Subordinated loan capital	5 6	501	501	501
Total liabilities		56 478	54 697	55 008
EC capital	10	989	989	989
ECs owned by the Bank		-7	-16	-13
Share premium		354	354	354
Paid-in equity		1 336	1 327	1 330
Primary capital fund		2 186	2 043	2 183

Gift fund	125	125	125
Dividend equalisation fund	937	799	935
Value adjustment fund	82	34	82
Other equity	229	238	457
Total comprehensive income after tax	417	378	0
Retained earnings	3 976	3 617	3 782
Total equity	5 312	4 944	5 112
Total liabilities and equity	61 790	59 641	60 120

Statement of changes in equity - Group

GROUP 30.09.2016	Total equity	EC capital	Share premium	Primary capital fund	Gift fund	Dividend equalisation fund	Value adjustment fund	Other equity
Equity as at 31 December 2015	5 112	976	354	2 183	125	935	82	457
Changes in own equity certificates	12	6		3		2
Distributed dividend to the EC holders	-114							-114
Distributed dividend to the local community	-115							-115
Total profit for the period	417							417
Equity as at 30 September 2016	5 312	982	354	2 186	125	937	82	646

GROUP 30.09.2015	Total equity	EC capital	Share premium	Primary capital fund	Gift fund	Dividend equalisation fund	Value adjustment fund	Other equity
Equity as at 31 December 2014	4 845	978	353	2 048	125	799	34	507
Changes in own equity certificates	-10	-5	1	-5
Distributed dividend to the EC holders	-133							-133
Distributed dividend to the local community	-136							-136
Total profit for the period	378							378
Equity as at 30 September 2015	4 944	973	354	2 043	125	799	34	616

GROUP 31.12.2015	Total equity	EC capital	Share premium	Primary capital fund	Gift fund	Dividend equalisation fund	Value adjustment fund	Other equity
Equity as at 31 December 2014	4 845	978	353	2 048	125	799	34	507
Changes in own equity certificates	-2	-2	1	-2		1
Distributed dividend to the EC holders	-133							-133
Distributed dividend to the local community	-136							-136
Equity before allocation of profit for the year	4 573	976	354	2 046	125	800	34	238
Allocated to the primary capital fund	142			142
Allocated to the dividend equalisation fund	140					140
Allocated to other equity	-9							-9
Proposed dividend allocated for the EC holders	114							114
Proposed dividend allocated for the local	115							115

community

Distributed profit for the year	503	0	0	142	0	140	0	220
Equities available for sale - changes in value	48						48
Pension estimate deviations	-9			-5		-4
Tax effect of pension estimate deviations	-2			-1		-1
Total other income and costs from comprehensive income	37	0	0	-6	0	-5	48	0
Total profit for the period	540	0	0	137	0	135	48	220
Equity as at 31 December 2015	5 112	976	354	2 183	125	935	82	457

Statement of cash flow - Group

Amounts in NOK million	30.09.2016	30.09.2015	31.12.2015
Cash flow from operating activities
Interest, commission and fees received	1 430	1 633	2 109
Interest, commission and fees paid	-244	-406	-524
Dividend and group contribution received	1	1	2
Operating expenses paid	-323	-402	-532
Income taxes paid	-227	-204	-202
Changes relating to loans to and claims on other financial institutions	583	-9	-44
Changes relating to repayment of loans/leasing to customers	-921	-2 661	-2 922
Changes in utilised credit facilities	457	109	485
Net change in deposits from customers	2 962	897	1 000
Net cash flow from operating activities	3 718	-1 042	-628
Cash flow from investing activities
Interest received on certificates, bonds and other securities	80	80	104
Proceeds from the sale of certificates, bonds and other securities	1 804	1 212	1 483
Purchases of certificates, bonds and other securities	-4 345	-1 165	-1 512
Proceeds from the sale of fixed assets etc.	17	0	4
Purchase of fixed assets etc.	-18	-31	-43
Changes in other assets	85	-331	-283
Net cash flow from investing activities	-2 377	-235	-247
Cash flow from financing activities
Interest paid on debt securities	-303	-347	-455
Net change in deposits from Norges Bank and other financial institutions	-409	543	511
Proceeds from bond issues raised	1 360	5 412	7 056
Redemption of debt securities	-2 175	-3 687	-5 107
Dividend paid	-114	-133	-133
Changes in other debt	-315	-6	-21
Net cash flow from financing activities	-1 956	1 782	1 851
Net change in cash and cash equivalents	-615	505	976
Cash balance at 01.01	1 054	78	78

C a s h b ala n c e a t 0 1.0 1	1 0 5 4	7 8	7 8
C a s h b ala n c e a t 3 0.0 9 / 3 1.1 2	4 3 9	5 8 3	1 0 5 4

ACCOUNTING PRINCIPLES

General

The Group`sinterim accounts have been prepared in accordance with International Financial Reporting Standards(IFRS), implemented by the EUas at 30 September 2016. The interim report has been prepared in compliance with IAS 34 Interim Reporting.

The accounts are presented in Norwegian kroner (NOK), which is also the Parent Banks and subsidiaries functionalcurrency.

The interim report is prepared in accordance with accounting principles and methods applied in the 2015 financialstatements. There have been no changes or new standardscoming into force in so far in 2016.

Please see the Annual report 2015 for further description of accounting principles.

LOANS AND DEPOSITS BROKEN DOWN ACCORDING TO SECTORS

GROUP		Loans
Broken down according to sectors	30.09.2016	30.09.2015	31.12.2015
Agriculture and forestry	372	395	373
Fisheries	2 534	3 316	3 186
Manufacturing	2 083	1 942	1 794
Building and construction	603	711	600
Wholesale and retail trade, hotels	517	539	517
Supply/Offshore	1 062	1 185	1 189
Property management	5 681	6 109	6 133
Professional/financial services	779	910	892
Transport and private/public services	1 720	1 882	1 708
Public entities	0	16	2
Activities abroad	116	133	132
Total corporate/public entities	15 467	17 138	16 526
Retail customers	36 415	34 299	34 822
Fair value adjustment of loans	121	191	180
Accrued interest income	87	112	99
Total loans	52 090	51 740	51 627
Individual impairment	-70	-84	-79
Collective impairment	-267	-237	-262
Loans to and receivables from customers	51 753	51 419	51 286
Loans with floating interest rate (amortised cost)	47 283	46 244	46 290
Loans with fixed interest rate (fair value)	4 807	5 496	5 337

GROUP		Deposits
Broken down according to sectors	30.09.2016	30.09.2015	31.12.2015
Agriculture and forestry	204	200	176
Fisheries	863	412	641
Manufacturing	2 060	1 046	1 122
Building and construction	558	445	470

Wholesale and retail trade, hotels	720	762	738
Property management	1 333	1 416	1 370
Professional/financial services	2 094	1 587	1 720
Transport and private/public services	2 839	2 803	2 675
Public entities	1 032	850	898
Activities abroad	5	5	5
Miscellaneous	1 982	1 877	1 735
Total corporate/public entities	13 690	11 403	11 550
Retail customers	18 512	17 605	17 829
Fair value adjustment of deposits	0	2	2
Accrued interest costs	148	276	8
Total deposits	32 350	29 286	29 389
Deposits with floating interest rate (amortised cost)	31 215	28 933	28 875
Deposits with fixed interest rate (fair value)	1 135	353	514

LOSSES AND IMPAIRMENT ON LOANS AND GUARANTEES

Specification of losses on loans, guarantees etc.

	Q3 2016	Q3 2015	30.09.2016	30.09.2015	31.12.2015
Changes in individual impairment of loans and guarantees during the period	0	-28	-9	-57	-60
Changes in collective impairment during the period	5	36	5	71	96
Confirmed losses during the period where individual impairment had previously been made	1	8	8	15	13
Confirmed losses during the period where individual impairment had previously not been made	1	-5	4	4	13
Recoveries	2	1	8	8	12
Losses on loans, guarantees etc.	5	10	0	25	50

Individual impairment on loans

	Q3 2016	Q3 2015	30.09.2016	30.09.2015	31.12.2015
Individual impairment on loans as at 01.01/01.07	70	111	79	141	141
Confirmed losses during the period, where individual impairment had previously been made	1	6	8	15	13
Increase in individual impairment during the period	2	1	5	5	9
Individual impairment of new commitments during the period	3	4	9	20	22
Recoveries on individual impairment during the period	4	26	15	67	80
Individual impairment on loans at the end of the period	70	84	70	84	79

Collective impairment on loans

	Q3 2016	Q3 2015	30.09.2016	30.09.2015	31.12.2015
Collective impairment of loans as at 01.01/01.07	262	201	262	166	166
Changes during the period	5	36	5	71	96
Collective impairment on loans at the end of the period	267	237	267	237	262

	Q3 2016	Q3 2015	30.09.2016	30.09.2015	31.12.2015
Individual impairment as at 01.01/01.07	0	2	0	2	2
Individual impairment during the period	0	0	0	0	0
Recoveries on individual impairment during the period	0	0	0	0	2
Individual impairment at the end of the period	0	2	0	2	0

DEFAULTED AND DOUBTFUL COMMITMENTS

Problem loans

(total of commitments in default above 3 months and commitments subject for individual impairment without being in default)

	30.09.2016		30.09.2015			31.12.2015
GROUP	Total	Retail	Corporate	Total	Retail	Corporate	Total	Retail	Corporate
Problem loans prior to individual impairment:
Commitments in default above 3 months	84	47	37	82	50	32	74	39	35
Other bad and doubtful commitments subject to impairment	141	15	126	153	34	119	170	28	142
Total problem loans prior to individual impairment	225	62	163	235	84	151	244	67	177
Individual impairment on:
Commitments in default above 3 months	13	3	10	17	7	10	14	2	12
Other bad and doubtful commitments subject to impairment	57	10	47	69	12	57	65	10	55
Total individual impairment	70	13	57	86	19	67	79	12	67
Problem loans after individual impairment:
Commitments in default above 3 months	71	44	27	65	43	22	60	37	23
Other bad and doubtful commitments subject to impairment	84	5	79	84	22	62	105	18	87
Total problem loans less individual impairment	155	49	106	149	65	84	165	55	110
Total problem loans prior to individual impairment as a percentage of total loans	0,43	0,17	1,05	0,46	0,24	0,88	0,47	0,19	1,07
Total problem loans less individual impairment as a percentage of total loans	0,30	0,13	0,68	0,29	0,19	0,49	0,32	0,15	0,67

CLASSIFICATION OF FINANCIAL INSTRUMENTS

Financial assets and financial liabilities are recognised in the balance sheet at the date when the Group becomes a party to the contractual provisions of the instrument. A financial asset is derecognised when the contractual rightsto the cash flowsfrom the financial asset expire, or the company transfersthe financial asset in such a way that risk and profit potential of the financial asset issubstantially transferred. Financial liabilities are derecognised from the date when the rightsto the contractual provisions have been extinguished, cancelled or expired.

CLASSIFICATION

The Group's portfolio of financial instrumentsis at initial recognition classified in accordance with IAS 39. The bank'sclasses of financial instruments and the measurement basisfor these are the following:

• Financial assets and derivatives held for trading (trading portfolio)
• Financial assets and liabilities assessed at fair value, any changesin value recognised through profit or loss
• •Instruments held as available for sale, assessed at fair value, any changesin value recognised in other comprehensive income
• Loans and receivables
• Financial liabilities assessed at amortised cost

Financial assets and derivatives held for trading

Financial derivatives are contractssigned to mitigate an existing interest rate or currency risk incurred by the bank. Financial derivatives are recognized at fair value through profit or loss and recognized gross pr. contract as an asset or liability.

The Group'scriteria for classification of the trading portfolio are the following:

• Positionsin financial instruments held for the Group's own account for the purpose ofselling and/or financial instruments acquired by the Group in order to take advantage on a short-term basis of any actual and/or expected differences between purchase- and sale prices or any other price- and interest rate fluctuations.

• Positions held by the Group in order to hedge other parts of the trading portfolio
• •Other commitments which are related to positions which form part of the trading portfolio

The Group'strading portfolio ofsharesis defined within this group and is assessed at fair value through profit or loss.

Financial assets and liabilities assessed at fair value, any changes in value recognised through profit or loss

The Group's portfolio of bondsin the liquidity portfolio isclassified at fair value through profit or loss asthis portfolio is managed based on fair value. The Group's portfolio of fixed interest rate loans and deposits are classified to avoid accounting mismatch in relation to the underlying interest rate swaps.

Losses and gains as a result of value changes of those assets and liabilities which are assessed at fair value, with any value changes being recognised in the profit and loss account, are included in the accounts during the period in which they occur.

Instruments held as available for sale, assessed at fair value, any changes in value recognised in other comprehensive income

The Group's portfolio ofshares, which are not classified as held for trading, are classified as available for sale, with any value changesshown in other comprehensive income. Realised gains and losses, as well asimpairment below cost, are recognised in the profit and loss account during the period in which they occur.

The Group`s owner interest in Visa Norway FLI isclassified as a financial asset in the category available for sale in level three in the valuation hierarchy. The change in value of this asset isrecognized in other comprehensive income.

Loans and receivables

All loans and receivables, including leasing, but with the exception of fixed interest rate loans, are assessed at amortised cost, based on expected cash flows. The difference between the issue cost of the securities and the settlement amount at maturity, is amortised over the lifetime of the loan.

Financial liabilities assessed at amortised cost

Debt securities, including debt securitiesincluded in fair value hedging, loans and depositsfrom credit institutions and deposits from customers without agreed maturity, are valued at amortised cost based on expected cash flows. The portfolio of own bondsis shown in the accounts as a reduction of the debt.

LEVELSINTHE VALUATIONHIERARCHY

Financial instruments are classified into different levels based on the quality ofmarket data for each type of instrument.

Level 1–Valuation based on prices in an active market

Level1 comprisesfinancial instruments valued by using quoted pricesin active marketsfor identical assets or liabilities. This category includeslisted shares and mutual funds, as well as bonds and certificatestraded in active markets.

Level 2 –Valuation based on observable market data

Level 2 comprisesfinancial instruments valued by using information which is not quoted prices, but where prices are directly or indirectly observable for assets or liabilities, including quoted pricesin inactive marketsfor identical assets or liabilities. This category mainly includes debt securitiesissued, derivatives and bonds which are not included in level1.

Level 3 –Valuation based on other than observable market data

Level 3 comprisesfinancial instruments which can not be valued based on directly or indirectly observable prices. Thiscategory mainly includesloansto and depositsfrom customers, as well asshares.

GROUP - 30.09.2016	Financial instruments at fair value through profit and loss account		Financial instruments assessed at amortised cost	Financial instruments held available for sale
	Trading	At fair value
Cash and claims on Norges Bank			439
Loans to and receivables from credit institutions			622
Loans to and receivables from customers		4 807	46 946
Certificates and bonds		7 210
Shares and other securities	1			125
Financial derivatives	1 146
Total financial assets	1 147	12 017	48 007	125
Loans and deposits from credit institutions			649
Deposits from and liabilities to customers		1 135	31 215
Financial derivatives	503
Debt securities			20 998
Subordinated loan capital and Perpetual Hybrid Tier 1 capital			1 312
Total financial liabilities	503	1 135	54 174	-

GROUP - 30.09.2015	Financial instruments at fair value through profit and loss account	Financial instruments assessed at amortised cost	Financial instruments held available for sale

Trading At fair

		value
Cash and claims on Norges Bank			583
Loans to and receivables from credit institutions			1 170
Loans to and receivables from customers		5 496	45 923
Certificates and bonds		4 674
Shares and other securities	3			120
Financial derivatives	1 178
Total financial assets	1 181	10 170	47 676	120
Loans and deposits from credit institutions			1 090
Deposits from and liabilities to customers		353	28 933
Financial derivatives	623
Debt securities			21 721
Subordinated loan capital and Perpetual Hybrid Tier 1 capital			1 320
Total financial liabilities	623	353	53 064	-

Net gains/losses on financial instruments

	Q3 2016		Q3 2015 30.09.2016	30.09.2015	31.12.2015
Certificates and bonds	17	-32	27	-41	-51
Securities	7	-1	44	0	-2
Foreign exchange trading (for customers)	7	9	24	24	33
Fixed income trading (for customers)	1	6	9	23	26
Financial derivatives	-7	-1	-6	8	4
Net change in value and gains/losses from financial instruments	25	-19	98	14	10

FINANCIAL INSTRUMENTS AT AMORTISED COST

GROUP		30.09.2016	30.09.2015
	Fair value	Book value	Fair value	Book value
Cash and claims on Norges Bank	439	439	583	583
Loans to and receivables from credit institutions	622	622	1 170	1 170
Loans to and receivables from customers	46 946	46 946	45 923	45 923
Total financial assets	48 007	48 007	47 676	47 676
Loans and deposits from credit institutions	649	649	1 090	1 090
Deposits from and liabilities to customers	31 215	31 215	28 933	28 933
Debt securities	21 019	20 998	21 627	21 721
Subordinated loan capital and Perpetual Hybrid Tier 1 capital	1 345	1 312	1 372	1 320
Total financial liabilities	54 228	54 174	53 022	53 064

GROUP - 30.09.2016	Based on prices in an active market	Observable market information	Other than observable market information
	Level 1	Level 2	Level 3	Total
Cash and claims on Norges Bank	439			439
Loans to and receivables from credit institutions		622		622
Loans to and receivables from customers			46 946	46 946
Total financial assets	439	622	46 946	48 007
Loans and deposits from credit institutions		649		649
Deposits from and liabilities to customers			31 215	31 215
Debt securities		21 019		21 019
Subordinated loan capital and Perpetual Hybrid Tier 1 capital		1 345		1 345
Total financial liabilities	-	23 013	31 215	54 228

GROUP - 30.09.2015	Based on prices in an active market	Observable market information	Other than observable market information
	Level 1	Level 2	Level 3	Total
Cash and claims on Norges Bank	583			583
Loans to and receivables from credit institutions			1 170	1 170

Loans to and receivables from customers			45 923	45 923
Total financial assets	583	1 170	45 923	47 676
Loans and deposits from credit institutions		1 090		1 090
Deposits from and liabilities to customers			28 933	28 933
Debt securities		21 627		21 627
Subordinated loan capital and Perpetual Hybrid Tier 1 capital		1 372		1 372
Total financial liabilities	-	24 089	28 933	53 022

FINANCIAL INSTRUMENTS AT FAIR VALUE

GROUP - 30.09.2016	Based on prices in an active market	Observable market information	Other than observable market information
	Level 1	Level 2	Level 3	Total
Cash and claims on Norges Bank				-
Loans to and receivables from credit institutions				-
Loans to and receivables from customers			4 807	4 807
Certificates and bonds	1 955	5 255		7 210
Shares and other securities	5		121	126
Financial derivatives		1 146		1 146
Total financial assets	1 960	6 401	4 928	13 289
Loans and deposits from credit institutions				-
Deposits from and liabilities to customers			1 135	1 135
Debt securities				-
Subordinated loan capital and Perpetual Hybrid Tier 1 capital				-
Financial derivatives		503		503
Total financial liabilities	-	503	1 135	1 638

GROUP - 30.09.2015	Based on prices in an active market	Observable market information	Other than observable market information
	Level 1	Level 2	Level 3	Total
Cash and claims on Norges Bank				-
Loans to and receivables from credit institutions				-
Loans to and receivables from customers			5 496	5 496
Certificates and bonds	1 739	2 935		4 674
Shares and other securities	8		115	123
Financial derivatives		1 178		1 178
Total financial assets	1 747	4 113	5 611	11 471
Loans and deposits from credit institutions				-
Deposits from and liabilities to customers			353	353
Debt securities				-

Subordinated loan capital and Perpetual Hybrid Tier 1 capital

Financial derivatives		623		623
Total financial liabilities	-	623	353	976

-

GROUP	Loans to and receivables from customers	Shares and other securities	Deposits from and liabilities to customers
Recorded value as at 31.12.15	5 337	161	514
Purchases/additions	311	-	695
Sales/reduction	783	40	74
Transferred to Level 3	-	-	-
Transferred from Level 3	-	-	-
Net gains/losses in the period	-58	-	-
Recorded value as at 30.09.16	4 807	121	1 135

GROUP	Loans to and receivables from customers	Shares and other securities	Deposits from and liabilities to customers
Recorded value as at 31.12.14	4 123	114	442
Purchases/additions	2 592	-	146
Sales/reduction	1 227	2	235
Transferred to Level 3	-	-	-
Transferred from Level 3	-	-	-
Net gains/losses in the period	8	3	-
Recorded value as at 30.09.15	5 496	115	353

OPERATING SEGMENTS

Result - Q3 2016	Group	Eliminations/ other	Corporate	Retail 1)	Real estate brokerage
Net interest income	278	-5	107	176	0
Other operating income	74	22	21	26	5
Total income	352	17	128	202	5
Operating costs	148	26	29	88	5
Profit before impairment	204	-9	99	114	0
Impairment on loans, guarantees etc.	5	5	0	0	0
Pre tax profit	199	-14	99	114	0
Taxes	47
Profit after tax	152

Result - 30.09.2016	Group	Eliminations/ other	Corporate	Retail 1)	Real estate brokerage
Net interest income	803	-35	325	513	0
Other operating income	236	88	64	71	13
Total income	1 039	53	389	584	13
Operating costs	443	83	85	261	14
Profit before impairment	596	-30	304	323	-1
Impairment on loans, guarantees etc.	0	5	-1	-4	0
Pre tax profit	596	-35	305	327	-1
Taxes	138
Profit after tax	458

Key figures - 30.09.2016	Group	Eliminations/ other	Corporate	Retail 1)	Real estate brokerage
Loans to customers 1)	51 753	885	15 194	35 674	0
Deposits from customers 1)	32 350	555	11 994	19 801	0
Guarantee liabilities	1 642	0	1 634	8	0
The deposit-to-loan ratio	62,5	62,7	78,9	55,5	0

Man-years 378 152 54 158	14
--------------------------------------	----

Result - Q3 2015	Group	Eliminations/ other	Corporate	Retail 1)	Real estate brokerage
Net interest income	283	-3	120	166	0
Other operating income	33	-28	24	32	5
Total income	316	-31	144	198	5
Operating costs	146	21	31	90	4
Profit before impairment	170	-52	113	108	1
Impairment on loans, guarantees etc.	10	37	-26	-1	0
Pre tax profit	160	-89	139	109	1
Taxes	46
Profit after tax	114

Result - 30.09.2015	Group	Eliminations/ other	Corporate	Retail 1)	Real estate brokerage
Net interest income	813	-16	351	478	0
Other operating income	165	-2	69	82	16
Total income	978	-18	420	560	16
Operating costs	437	75	85	263	14
Profit before impairment	541	-93	335	297	2
Impairment on loans, guarantees etc.	25	71	-44	-2	0
Pre tax profit	516	-164	379	299	2
Taxes	141
Profit after tax	375

Key figures - 30.09.2015	Group	Eliminations/ other	Corporate	Retail 1)	Real estate brokerage
Loans to customers 1)	51 419	1 047	16 872	33 500	0
Deposits from customers 1)	29 286	1 061	9 361	18 864	0
Guarantee liabilities	1 708	0	1 700	8	0
The deposit-to-loan ratio	57,0	101,3	55,5	56,3	0
Man-years	388	154	55	164	15

1) The subsidiary, Mø re Boligkreditt AS, is part of the Bank's Retail segment. The mortgage company's main objective is to issue covered bonds

for both national and international investors, and the company is part of Sparebanken Mø re's long-term financing strategy. Key figures for Mø re Boligkreditt AS are displayed in a separate table.

MØRE BOLIGKREDITT AS
Statement of income	Q3 2016	Q3 2015
Net interest income	61	66
Other operating income	1	-3
Total income	62	63
Operating costs	8	7
Profit before impairment on loans	54	56
Impairment on loans, guarantees etc.	0	0
Pre tax profit	54	56
Taxes	13	15
Profit after tax	41	41

Statement of income	30.09.2016	30.09.2015
Net interest income	183	208
Other operating income	6	4
Total income	189	212
Operating costs	25	23
Profit before impairment on loans	164	189
Impairment on loans, guarantees etc.	0	2
Pre tax profit	164	187
Taxes	41	50
Profit after tax	123	137

Statement of financial position	30.09.2016	30.09.2015
Loans to and receivables from customers	18 005	16 940
Total equity	1 476	1 290

TRANSACTIONS WITH RELATED PARTIES

These are transactions between the Parent Bank and wholly-owned subsidiaries which have been done at arms length and at arms length`s prices.

The most important transactions which have been done and netted out in the Group accounts are as follows:

PARENT BANK	30.09.2016	30.09.2015	31.12.2015
Statement of income
Interest and credit commission income from subsidiaries	17	16	19
Received dividend and group contribution from subsidiaries	176	191	191
Rent paid to Sparebankeiendom AS	12	13	18
Administration fee received from Mø re Boligkreditt AS	20	18	24
Statement of financial position
Claims on subsidiaries	1 647	1 612	1 121
Covered bonds	159	238	0
Liabilities to subsidiaries	49	1 091	307
Accumulated loan portfolio transferred to Mø re Boligkreditt AS	18 009	16 944	16 911

EC CAPITAL

The 20 largest EC holders in Sparebanken Møre as at 30.09.2016	Number of ECs
Sparebankstiftelsen Tingvoll	988 000	9,99
Verdipapirfond Pareto Aksje Norge	508 007	5,14
MP Pensjon	392 263	3,97
Wenaasgruppen AS	380 000	3,84
VPF Nordea Norge Verdi	343 079	3,47
Cape Invest AS	332 568	3,36
Pareto AS	305 189	3,09
FLPS - Princ All Sec	224 634	2,27
Bergen Kommunale Pensjonskasse	180 000	1,82
Beka Holding AS	150 100	1,52
VPF Fondsfinans Norge	120 000	1,21
Lapas AS (Leif-Arne Langø y)	105 500	1,07
Verdipapirfondet Eika utbytte	104 911	1,06
Odd Slyngstad	80 528	0,81
Verdipapirfondet Landkreditt utbytte	75 000	0,76
PIBCO AS	75 000	0,76
Sparebanken Mø re	70 485	0,71
Forsvarets Personellservice	63 660	0,64
Stiftelsen Kjell Holm	60 063	0,61
Aars AS	57 289	0,58
Total 20 largest	4 616 276	46,68
Total	9 886 954	100,00

CAPITAL ADEQUACY

	30.09.2016	30.09.2015	31.12.2015
Core Capital
EC capital	989	989	989
- ECs owned by the Bank	-7	-16	-13
Share premium	354	354	354
Dividend equalisation fund	937	799	935
Gift fund	125	125	125
Primary capital fund	2 186	2 043	2 183
Value adjustment fund	82	34	82
Proposed dividend for the EC holders	0	0	114
Proposed dividend for the local community	0	0	115
Other equity	229	238	228
Accumulated profit for the period	417	378	0
Total equity	5 312	4 944	5 112
Deferred tax, goodwill and intangible assets	-51	-47	-47
Value adjustments of financial instruments at fair value	-14	-12	-14
Value adjustment fund	-82	-34	-82
Perpetual Hybrid Tier 1 capital	803	810	808
Expected losses exceeding actual losses, IRB portfolios	-81	-229	-175
Proposed dividend for the EC holders	0	0	-114
Proposed dividend for the local community	0	0	-115
Accumulated profit for the period	-417	-378	0
Total core capital	5 470	5 054	5 373
Common equity Tier 1 Capital	4 667	4 244	4 565

Supplementary capital

Subordinated loan capital of limited duration	501	501	501
36 % addition for net unrealised gains on shares available for sale	0	0	0
50 % deduction for equity in other financial institutions	0	0	0
Total supplementary capital	501	501	501
Net equity and subordinated loan capital	5 971	5 555	5 874

Capital requirement by exposure classes

Exposure classes SA - credit risk	30.09.2016	30.09.2015	31.12.2015
Central governments or central banks	0	0	0
Regional governments or local authorities	32	6	6
Public sector companies	19	20	20
Institutions (banks etc)	49	52	52
Companies (corporate customers)	0	27	5
Mass marked (retail banking customers)	0	0	0
Secured by mortgage on immovable property	0	0	0
Exposures in default	0	0	0
Covered bonds	18	15	16
Equity	8	8	8
Other items	124	98	114
Total capital requirements - credit risk, The Standardised Approach	250	226	221

Exposure classes IRB - credit risk	30.09.2016	30.09.2015	31.12.2015
Retail - Secured by real estate	600	588	562
Retail - Other	47	45	46
SME	619	898	773
Specialised lending	390	513	512
Other corporate lending	284	197	252
IRB-F capital requirements	1 940	2 241	2 145
Total capital requirements - credit risk	2 190	2 467	2 366

Exposure classes SA - market risk	30.09.2016	30.09.2015	31.12.2015
Debt	0	0	0
Equity	0	0	0
Foreign exchange	0	0	0
Credit value adjustment risk (CVA)	34	20	40
Total capital requirements - market risk	34	20	40
Operational Risk (Basic Indicator Approach)	194	190	190
Deductions from the capital requirement	0	0	0
Total capital requirement less transitional rules	2 418	2 677	2 596
Additional capital requirements from transitional rules 1)	203	0	0
Total capital requirements	2 621	2 677	2 596

Total risk-weighted assets less transitional rules	30 223	33 460	32 455
Total risk-weighted assets from transitional rules	2 537	0	0
Total risk-weighted assets	32 760	33 460	32 455
Minimum requirement common equity Tier 1 capital (4.5 %)	1 474	1 506	1 460

Buffer Requirement	30.09.2016	30.09.2015	31.12.2015
Capital conservation buffer (2.5 %)	819	837	811
Systemic risk buffer (3.0 %)	983	1 004	974
Countercyclical buffer (1.5%)	491		325
Total buffer requirements	2 293	1 840	2 110
Available common equity Tier 1 capital after buffer requirements	900	898	995

Capital adequacy as a percentage of the weighted asset calculation basis incl. transitional rules	30.09.2016	30.09.2015	31.12.2015
Capital adequacy ratio	18,2	16,6	18,1
Capital adequacy ratio incl. 50 per cent of the profit for the period	18,8	17,2
Core capital ratio	16,7	15,1	16,6
Core capital ratio incl. 50 per cent of the profit for the period	17,3	15,7
Core Tier 1 capital ratio	14,3	12,7	14,1
Core Tier 1 capital ratio incl. 50 per cent of the profit for the period	14,9	13,3

Leverage Ratio (LR)	30.09.2016	30.09.2015	31.12.2015
Leverage Ratio (LR) incl. 50 per cent of the profit for the period	8,1	7,8	8,0

Statement of income - Parent Bank

Amounts in NOK million	Q3 2016	Q3 2015	30.09.2016	30.09.2015	2015
Interest income	328	369	983	1 125	1 473
Interest costs	109	151	360	517	645
Net interest income	219	218	623	608	828
Commission income and revenues from banking services	50	52	142	151	197
Commission costs and expenditure from banking services	7	7	21	21	28
Other operating income	7	6	21	19	27
Net commission and other operating income	50	51	142	149	196
Dividends	0	0	177	192	193
Net gains/losses from financial instruments	24	-15	92	11	9
Net return from financial instruments	24	-15	269	203	202
Total income	293	254	1 034	960	1 226
Wages, salaries etc.	82	81	240	238	295
Administration costs	30	29	95	93	119
Depreciation and impairment	6	6	19	17	23
Other operating costs	27	27	74	75	105
Total operating costs	145	143	428	423	542
Profit before impairment on loans	148	111	606	537	684
Impairment on loans, guarantees etc.	5	9	0	22	47
Pre tax profit	143	102	606	515	637
Taxes	34	28	97	87	125
Profit after tax	109	74	509	428	512
Profit per EC (NOK)	5,50	3,75	25,50	21,50	25,70
Diluted earnings per EC (NOK)	5,50	3,75	25,50	21,50	25,70
Distributed dividend per EC (NOK)	0,00	0,00	11,50	13,50	13,50

STATEMENT OF INCOME - PARENT BANK

STATEMENT OF COMPREHENSIVE INCOME - PARENT BANK

Amounts in NOK million	Q3 2016	Q3 2015	30.09.2016	30.09.2015	2015
Profit after tax	109	74	509	428	512
Other income/costs reversed in ordinary profit:

Equities available for sale - changes in value	-3	0	-41	-2	48
Other income/costs not reversed in ordinary profit:
Pension estimate deviations	0	0	0	0	-9
Tax effect of pension estimate deviations	0	0	0	0	-2
Total comprehensive income after tax	106	74	468	426	549

Statement of financial position - Parent Bank

STATEMENT OF FINANCIAL POSITION - PARENT BANK

Assets

Amounts in NOK million	30.09.2016	30.09.2015	31.12.2015
Cash and claims on Norges Bank	439	583	1 054
Loans to and receivables from credit institutions	2 120	2 630	2 174
Loans to and receivables from customers	33 896	34 631	34 530
Certificates, bonds and other interest-bearing securities	6 996	4 508	4 333
Financial derivatives	727	673	749
Shares and other securities	126	123	168
Equity stakes in Group companies	1 371	1 171	1 171
Deferred tax benefit	59	37	60
Intangible assets	50	47	47
Fixed assets	38	47	50
Other assets	153	155	75
Total assets	45 975	44 605	44 411

Liabilities and equity

Amounts in NOK million	30.09.2016	30.09.2015	31.12.2015
Loans and deposits from credit institutions	669	2 165	1 343
Deposits from customers	32 380	29 302	29 410
Debt securities issued	5 353	5 847	6 206
Financial derivatives	499	612	586
Other liabilities	496	439	521
Incurred costs and prepaid income	93	99	75
Other provisions for incurred liabilities and costs	39	67	59
Perpetual Hybrid Tier 1 capital	811	819	826
Subordinated loan capital	501	501	501
Total liabilities	40 841	39 851	39 527
EC capital	989	989	989
ECs owned by the Bank	-7	-16	-13
Share premium	354	354	354

Paid-in equity	1 336	1 327	1 330
Primary capital fund	2 186	2 043	2 183
Gift fund	125	125	125
Dividend equalisation fund	937	799	935
Value adjustment fund	82	34	82
Other equity	0	0	229
Total comprehensive income after tax	468	426	0
Retained earnings	3 798	3 427	3 554
Total equity	5 134	4 754	4 884
Total liabilities and equity	45 975	44 605	44 411

Profit performance - Group

QUARTERLY PROFIT

Amounts in NOK million	Q3 2016	Q2 2016	Q1 2016	Q4 2015	Q3 2015
Net interest income	278	275	250	285	283
Other operating income	74	106	56	40	33
Total operating costs	148	147	148	124	146
Profit before impairment on loans	204	234	158	201	170
Impairment on loans, guarantees etc.	5	-3	-2	25	10
Pre tax profit	199	237	160	176	160
Tax	47	51	40	52	46
Profit after tax	152	186	120	124	114
As a percentage of average assets
Net interest income	1,82	1,86	1,67	1,91	1,93
Other operating income	0,48	0,70	0,37	0,27	0,22
Total operating costs	0,97	0,98	0,99	0,83	1,00
Profit before impairment on loans	1,33	1,58	1,05	1,35	1,15
Impairment on loans, guarantees etc.	0,03	-0,02	-0,01	0,17	0,07
Pre tax profit	1,30	1,60	1,06	1,18	1,08
Tax	0,31	0,34	0,26	0,35	0,31
Profit after tax	0,99	1,26	0,80	0,83	0,77