Interim report Q3 2019 Headlines Q3 2019 (Figures in brackets are - PowerPoint PPT Presentation

Interim report Q3 2019

Headlines Q3 2019 (Figures in brackets are for the same period last year) Solid growth in loans to customers: 5,7 % over the past year Growth in net interest income: NOK 241 mill. (NOK 211 mill.) Cost/income ratio: 37,0 % (34,2 %). Low impairment loss: NOK 9 mill. (NOK 15 mill) Good liquidity and solidity: • LCR 146 % (141 %) • Core Tier 1 Capital adequacy ratio: 14,65 % (14,65 %) Return on equity: 11,2 % (11,4 %)

Development important key figures Impairment loss Cost/income ratio 0,25 % 70,0 % 0,20 % 56,8 % 60,0 % 50,0 % 0,15 % 43,3 % 41,6 % 37,0 % 40,0 % 34,2 % 0,10 % 30,0 % 0,05 % 0,03 % 0,02 % 0,02 % 20,0 % 0,00 % 0,00 % 10,0 % -0,03 % -0,05 % 0,0 % Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Return on equity Core Tier 1 capital adequacy ratio 18,0 % 16,0 % 15,4 % 15,3 % 16,0 % 13,5 % 14,8 % 14,7 % 14,7 % 14,0 % 12,5 % 14,0 % 12,0 % 10,8 % 10,1 % 12,0 % 10,0 % 10,0 % 7,9 % 8,0 % 8,0 % 6,0 % 6,0 % 4,0 % 4,0 % 2,0 % 2,0 % 0,0 % 0,0 % Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q3 2018 4Q 2018 Q1 2019 Q2 2019 Q3 2019

Growth in net interest income Net interest income as a Net interest income precentage of average assets 1,80 1,69 1,67 300 1,65 1,62 1,57 1,60 241 250 230 228 1,40 220 213 1,20 200 1,00 150 0,80 0,60 100 0,40 50 0,20 0,00 0 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019

Solid growth in the retail market Loans retail market Deposits retail market 40 12,0 % 12,0 % 30 37,7 37,2 36,4 36,1 35,6 35 10,0 % 25 10,0 % 30 8,0 % 20 8,0 % 7,3 % 7,3 % 7,2 % 17,7 25 17,5 17,0 16,7 16,7 5,8 % 5,9 % 5,4 % 20 6,0 % 15 6,0 % 4,9 % 4,9 % 4,7 % 4,4 % 15 4,0 % 10 4,0 % 10 2,0 % 5 2,0 % 5 0 0,0 % 0 0,0 % Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 NOK billion 12 months growth in % NOK billion 12 months growth in % Purchase of a portfolio of mortgage loans from Eiendomskreditt in June 2018.

Solid growth in lendings to the corporate market Deposits corporate market Loans corporate market 12,0 % 14 12,7 12,6 20,0 % 12,4 12,3 12,1 10,0 % 14 12 15,0 % 12 11,0 10,6 10,6 10,6 10 8,0 % 10,5 6,5 % 10 8 10,0 % 6,0 % 5,2 % 8 5,0 % 4,8 % 6 3,9 % 6 5,0 % 4,0 % 2,2 % 4 0,3 % 4 -0,5 % -0,5 % -0,6 % 0,0 % 2,0 % 2 2 0 -5,0 % 0 0,0 % Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 NOK billion 12 months growth in % NOK billion 12 months growth in % .

Growth in total income Other income Total income 140 120 86 100 322 81 299 320 286,4 282 80 62 270 241 81 56 86 56 62 13 60 51 220 45 30 13 20 170 40 120 241 228 230 220 213 20 37 35 36 70 32 36 20 0 -22 -30 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 -20 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Net interest income Other operating income Other oper. income Fin. investments Figures per quarter in mill. NOK.

Cost efficient operations Operating expenses Cost/income ratio 70,0 % 160 137 56,8 % 60,0 % 140 122 119 119 120 50,0 % 102 43,3 % 41,6 % 100 37,0 % 40,0 % 34,2 % 80 30,0 % 60 20,0 % 40 10,0 % 20 0,0 % 0 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Figures per quarter in mill. NOK. Low costs in Q3 due to impact from holiday pay. Accrued over the year from 2019.

Low impairment loss. Solid loan loss reserves Impairment loss Impairment provisions 350 306 301 301 1,00 % 295 291 300 0,80 % 250 0,63 % 0,61 % 0,61 % 0,60 % 0,60 % 40 200 0,60 % 30 150 0,40 % 20 15 100 9 8 0,20 % 10 50 1 0 0 0,00 % Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 -10 Mill. NOK As a % of gross lending -13 -20 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Figures per quarter in mill. NOK .

Profit before tax 250 194 200 182 Solid performance in Q3 2019 159 159 • Growth in total income 150 117 • Low impairment losses 100 50 0 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Figures per quarter in mill. NOK.

Solid comprehensive income and return on equity Total comprehensive income Return on equity 16,0 % 160 149 148 13,5 % 14,0 % 140 12,5 % 126 117 12,0 % 10,8 % 120 10,1 % 10,0 % 100 90 7,9 % 8,0 % 80 6,0 % 60 4,0 % 40 2,0 % 20 0,0 % 0 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Figures for the quarters in NOK mill. Return on equity is calulated based on the opening equity excl. hybrid capital.

Solid capital adequacy ratio Capital adequacy ratio Leverage ratio 20,0 % 16,0 % 18,4 % 18,2 % 18,2 % 18,1 % 17,7 % 18,0 % 2,1 % 2,1 % 2,6 % 14,0 % 2,6 % 2,1 % 16,0 % 0,9 % 0,9 % 0,8 % 0,9 % 0,8 % 15,4 % 12,0 % 15,3 % 14,0 % 14,8 % 14,7 % 14,7 % 12,0 % 10,0 % 8,5 % 8,3 % 8,0 % 8,0 % 7,9 % 10,0 % 8,0 % 8,0 % 6,0 % 6,0 % 4,0 % 4,0 % 2,0 % 2,0 % 0,0 % 0,0 % Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Tier 1 capital adequacy ratio Hybrid capital Suplementary capital Capital adequacy and leverage ratio are measured without including net profit year to date. If we include net profit year to date less a proportion of expected dividends, the core tier 1 capital adequacy ratio would be 15,6 %

High leverage ratio compared to IRB banks Leverage ratio Return on equity 8,47 % 12,7 % 7,42 % 1,6 % 11,2 % SSF Average norwegian savings banks with advanced IRB 30.09.2019 Return on Equity Adjusted for high leverage ratio If SSF had the same leverage ratio as the average of norwegian savings banks with advance IRB, we would have reported an ROE so far this year of 12,7 %

Segments and industries Lending segments Lendings to the corporate market 4.026 Property managment 1.840 Fishing and fish farming 25 % 1.522 Farming and forestry 1.284 Building and construction 920 Industry and mining 821 Services 75 % 786 Electrical power 644 Commerce 509 Hotels/tourism 309 Transport - 500 1.000 1.500 2.000 2.500 3.000 3.500 4.000 4.500 Corporate market Retail market

Corporate market credit risk Loans to the corporate market at high risk Loans to the corporate market in default 14,0 % 10,00 % 9,00 % 12,0 % 8,00 % 10,2 % 10,1 % 10,0 % 10,0 % 9,2 % 9,1 % 7,00 % 6,00 % 8,0 % 5,00 % 6,0 % 4,00 % 3,00 % 4,0 % 1,67 % 2,00 % 0,90 % 2,0 % 0,79 % 0,82 % 0,77 % 1,00 % 0,0 % 0,00 % Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019

Low risk in the retail market Composition of risk for loans to RM Loans to the RM in default (%) 2,00 % 80,0 % 71,3 % 70,1 % 69,9 % 69,3 % 69,1 % 70,0 % 1,50 % 60,0 % 50,0 % 1,00 % 40,0 % 27,5 % 27,0 % 26,4 % 26,1 % 30,0 % 25,2 % 0,50 % 0,36 % 20,0 % 0,33 % 0,32 % 0,22 % 0,19 % 10,0 % 3,8 % 3,7 % 3,4 % 3,6 % 3,5 % 0,0 % 0,00 % Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Low risk Middle risk High risk

Maturity structure of funding 6.000 5.000 150 100 4.000 2.500 200 2.500 3.000 200 200 1.009 2.500 2.000 2.500 2.225 2.200 2.100 1.000 1.887 800 182 500 430 400 400 267 0 2019 2020 2021 2022 2023 2024 2025 2033 2034 Senior bonds and commercial papers Covered bonds Subordinated debt and hybrid capital (call date) Figures in NOK mill .

Strategy and society

Nr 1 in trust and reputation! Top result in EPSI-survey

Nr 1 in gender equality! The newest SHE Index ranks SSF as number one amongst 91 large companies in Norway.

GREEN BOND LOANS AT 300 MNOK We take the climate challenges seriously and, as the second savings bank in Norway, we offer green bond loans to our investors.

Corvus Energy given the first DRIV award, an environmental award initiated by, amongst others, SSF

Contact information Sparebanken Sogn og Fjordane Visiting address: Langebruvegen 12 6801 Førde Website: www.ssf.no E-mail address: kundesenter@ssf.no Organisation no: 946 670 081 Tel no. 57 82 97 00 Contact: Trond Teigene Frode Vasseth CEO CFO Tel. no. + 47 908 25 086 Tel. no. + 47 951 98 452

Attachments

Posted equity per equity certificate Posted equity per equity certificate Comprehensive income per equity certificate 10,0 219,4 212,9 209,2 207,8 205,9 9,0 200,0 8,0 6,7 6,6 7,0 150,0 5,6 6,0 5,3 5,0 4,1 100,0 4,0 3,0 50,0 2,0 1,0 0,0 0,0 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Figures in NOK per quarter