interim report 3rd quarter 2016

Interim report 3rd quarter 2016Gjensidige Bank

2 Gjensidige Bank – Interim Report 3rd quarter 2016

Gjensidige Bank Group highlights3rd quarter 2016In the following, figures in brackets refer to the amount or percentage for the corresponding period last year.

Year to date• Pre-taxprofit:NOK334.0million(220.8)• Operatingincome:NOK659.9million(542.9)• Operatingexpenses:NOK282.9million(268.8)• Cost/incomeratio:42.9percent(49.5)• Write-downsandlosses:NOK43.0million(53.3)

• Returnonequity,annualised1:12.7percent(10.1)• CommonequityTier1capital:NOK2.5billion(2.0)• CommonequityTier1capitalratio:12.2percent(13.2)

• Grosslending:NOK40.0billion(34.3)• Customerdeposits:NOK20.4billion(17.5)

Third quarter• Pre-taxprofit:NOK139.1million(57.3)• Operatingincome:NOK250.8million(162.4)• Operatingexpenses:NOK92.3million(93.2)• Write-downsandlosses:NOK19.4million(11.8)

• Returnonequity,annualised1:14.7percent(7.3)

1Returnonequity,annualised=Shareholders'shareofprofitfortheperiod/averageshareholders'equityfortheperiod,annualised

251

Operating IncomeNOKmillion

162182 187

222

Q32015

Q42015

Q12016

Q22016

Q32016

Pre-tax profitNOKmillion

57

83 79

116

Q32015

Q42015

Q12016

Q22016

Q32016

Capital adequacy ratioPercent

15.216.1 15.8

16.3

Q32015

Q42015

Q12016

Q22016

Q32016

13915.9

3Gjensidige Bank – Interim Report 3rd quarter 2016

Year-to-date developmentEarnings performanceTheprofitbeforetaxexpenseincreasedtoNOK334.0million(220.8).Theincreaseinincome,mainlydrivenbyportfoliogrowth,waspartlyoffsetbyincreasedexpenses.Financialinstru-ments performed better than in the same period last year.

Operating incomeTotalincomeamountedtoNOK659.9million(542.9).

NetinterestincomeamountedtoNOK586.8million(529.7).Theimprovementwasdrivenbybusinessgrowth.

NetcommissionincomeandotherincomeincreasedtoNOK73.2million(13.2).Theincreasewasaresultofgainsfromfinancialin-struments,partlyoffsetbyhigheracquisitioncosts.Theimprove-ment also included a gain on the Visa Europe sale to Visa International,ofwhichGjensidigeBank’ssharewasNOK12.3mil-lion.

Netinterestmargin1was1.84percent(2.18).Thedecreasewasdrivenbyachangingportfoliomixandoverallmarginpressure.

Operating expensesOperatingexpenseswereNOK282.9million(268.8).Theincreasewasdrivenbybusinessgrowthandsomewhatincreaseddepreci-ation.

Thecost/incomeratiowas42.9percent(49.5).

Write-downs and lossesTotalwrite-downsandlossesamountedtoNOK43.0million(53.3).Theywereprimarilyrelatedtotheunsecuredlendingport-folio.ThebankagreedtosellNOK14.6millionofimpairedcus-tomerloansinthefirstquarter.Thesaleledtothereleaseoftheprovisionsmadeforthisgroupofloans.

Theportfoliocontinuestobeofhighquality,andunderlyingtotalwrite-downsandlossesareatsimilarlevelsaslastyear.

Write-downsandlosseswere0.15percent(0.24)ofaveragegrosslending.Adjustedfortheabovementionedsaleofimpairedcus-tomerloans,thepercentagewas0.19percent.

Grosslendingindefaultover90daysincreasedtoNOK387.5mil-lion(333.7),primarilyasaresultofportfoliogrowth.Grossloansindefaultover90dayswere0.97percent(1.0)oftotalgrosslending.

Theweightedaverageloan-to-valueratio2 was estimated to be 63.1percent(63.5)forthemortgageportfolio.

Lending and deposits growthGrosslendingincreasedby16.4percentyearonyearandamountedtoNOK39,915.1million(34,305.3)attheendofthe

period.Depositsincreasedby16.4percentyearonyear,reachingNOK20,378.3million(17,508.1)attheendoftheperiod.Thede-positstoloansratiowasto51.1percent(51.0).

GjensidigeBankASAhasappliedforalicensefromtheNorwegianFinancialSupervisoryAuthoritytoprovideinvestmentservicesinordertopursueamergerwithGjensidigeInvesteringsrådgivningAS.Preparationsforamergerplanareon-going.Amergerwillimprovethecompetitivenesswithinthesav-ings market.

Capital adequacyAttheendoftheperiod,theGjensidigeBankGrouphadacapitaladequacyratioof15.9percent(15.2).ThetotalcapitalheldbythebankwasNOK3,274.7million(2,688.4),ofwhichNOK2,526.9million(2,041.5)wascommonequityTier1capital.ThecommonequityTier1capitalratiowas12.2percent(11.5).

Businessgrowthledtoanincreasedneedforcapitalduringtheperiod.ThetotalcapitalwasincreasedbyNOK300million,splitbetweentheissuanceofaTier2subordinatedbondamountingtoNOK100millionandanequityincreaseofNOK200millionthroughprivateplacementswiththeparentcompany.

RatingAttheendofthesecondquarter,S&PGlobalRatingsraiseditslong-termandshort-termcounterpartycreditratingsforGjensidigeBankASAanditssubsidiaryGjensidigeBankBoligkredittASto'A/A-1'from'A-/A-2'.Theoutlookremainedsta-ble.ThiswasdrivenbythereassessmentofGjensidigeBank'sstrategic position within the parent company.

GjensidigeBankBoligkredittASwillholdtheamountofovercol-lateralisationrequiredtomaintainthecurrentratingforGjensidigeBankBoligkreditt`scoveredbondprogram.Thiscom-mitmentispublishedonthebank`sweb-site.

Debt securities issuedNetissuesofdebtsecurities,includingperpetualTier1capitalandTier2subordinatedbonds,amountedtoNOK20,474.4mil-lion(16,673.2)attheendoftheperiod.ThetotalfacevalueofthesecuritiesissuedbythebankwasNOK20,369.4million.

NetnewissuesyeartodatewereNOK3,250.0million.GjensidigeBankBoligkredittASissuedcoveredbondstotallingNOK3,917.0millionofwhichNOK1,233.0millionwereheldbyGjensidigeBankASA.GjensidigeBankASAissuedseniorandsubordinatedloancapitaltotallingNOK150.0million.

In order to gain access to international capital markets, GjensidigeBankASAestablished,throughGjensidigeBankBoligkredittAS,aEuroMediumTermCoveredBondProgrammeamountingtoEuro2billionduringthesecondquarter.

1 Thenetinterestmarginiscalculatedasnetinterestincomeasapercentageofaveragetotalassets, annualised.

2 Theloan-to-valueratioestimateiscalculatedonthebasisoftheexposureonthereportingdateandthepropertyvaluation,includinganyhigherprioritypledge(s),atthetimetheloanwasapproved.

4 Gjensidige Bank – Interim Report 3rd quarter 2016

LiquidityAttheendoftheperiod,theGjensidigeBankGrouphadnetliq-uidassetsofNOK5,882.5million,dividedbetweenNOK593.2millioninbankdepositsandNOK5,289.3millionindebtsecuri-ties.OftheseassetsNOK1.294.2millionwereinvestmentsincov-eredbondsfromGjensidigeBankBoligkredittAS(eliminatedintheconsolidatedaccounts).Thenetliquidassetswereatanade-quatelevelthatcoversthebonddebtthatwillfalldueinthenext23months.

Development during the quarterEarnings performanceTheprofitbeforetaxexpenseamountedtoNOK139.1million(57.3).Theincreasewasdrivenbyportfoliogrowthandabetterreturnonfinancialinstruments.TheimprovementalsoincludedthegainfromtheVisaEuropesalefromwhichGjensidigeBank’ssharewasNOK12.3million.

Operating incomeTotalincomeinthequarterwasNOK250.8million(162.4),drivenby business growth, financial instruments and the gains from the sale of Visa Europe to Visa International.

NetinterestincomeincreasedtoNOK207.1million(175.1),drivenby business growth.

NetcommissionincomeandotherincomeincreasedtoNOK43.6million(negative12.7),drivenbygainsonfinancialinstrumentsand the gain from the Visa Europe sale.

Operating expensesOperatingexpensesamountedtoNOK92.3million(93.2).

Thecost/incomeratiowas36.8percent(57.4).Theimprovementwasmainlydrivenbythechangeinnetcommissionincomeandother income.

Write-downs and lossesTotalwrite-downsandlossesamountedtoNOK19.4million(11.8),predominantlyrelatedtotheunsecuredlendingportfolio.Thein-creasewasmainlydrivenbyportfoliogrowth.

Lending and deposits growthGrosslendinggrowthwasNOK956.0million(2,816.2),whilede-positsdecreasedbyNOK304.0million(negative91.7).

Key risk and uncertainty factorsThebank’sfinancialriskmainlycomprisescredit,liquidityandin-terestraterisk.Theriskisreportedonamonthlybasisandas-sessed in accordance with the principles, strategies and risk thresholdsdefinedbytheBoard.

Creditriskrepresentstheriskoflossesarisingasaresultofcus-tomers and other counterparties failing to repay their debts whentheyfalldue.Thebankusesriskclassificationmodelstocalculatetheriskassociatedwithitsexposuretocustomers.Thebank considers its lending performance to be satisfactory and it monitors its portfolio closely.

Liquidityriskistheriskthatthebankwillbeunabletomeetallitsfinancial obligations when they fall due, or be unable to fund its lendingactivities.Thebankestablishedalegalframeworkthatallowsittoattractliquidityfromtheexternalmarket.Moreover,inordertoreducetherisk,liquidityforecastsarecontinuouslyup-datedandreviewed.Thebank’scurrentliquidityreservegivesittime to implement necessary measures in a situation of acute li-quidityfreeze.

Interestrateriskistheriskthatequitywillfallinvalueasaresultofunexpectedchangesintheinterestratelevelsinthemarket.Suchchangesininterestratelevelsmayleadtoafallinthemar-ketvalueoffixed-interestassets.Alternatively,themarketvalueoffixed-interestdebt/liabilitiesmayincrease.

Events after the balance sheet dateNosignificanteventshaveoccurredaftertheendofthequarter.

OutlookThebank’sfocusisonmarketsegmentsthatarestrategicallyim-portanttotheGjensidigeGroupandwillmaintaincompetitivetermstowardsthesecustomergroups.Customerprocessim-provementssupportedbydigitalisationarepartofthebank’scompetitiveoffer.

Thebankfundspartsofitsbusinessthroughthefinancialmar-kets.Thesemarketsarevolatileandthebankfocusesondiversi-fying such funding sources to ensure long term profitable growth.

Oslo, 25 October 2016 The Board of Gjensidige Bank ASA

MarianneB.Einarsen Hans-JacobStarheim HansO.Harén CEO

MatsC.Gottschalk PerKumle AnitaGundersen HansG.Hanevold ChairmanoftheBoard

5Gjensidige Forsikring – hittil i år og fjerde kvartal 2012 5Gjensidige Bank – Interim Report 3rd quarter 2016

NOK thousands Note Q3 2016 Q3 2015 1.1.-30.9.2016 1.1.-30.9.2015 1.1.31.12.2015

Interest income etc. 352,259 324,192 1,045,768 981,600 1,310,992

Interest costs etc. (145,124) (149,097) (458,984) (451,881) (589,827)

Net interest income 207,135 175,095 586,784 529,719 721,165

Dividendsfrominvestmentsinsharesandfunds1 12,330 12,330

Commissionincomeandincomefrombankservices 14,078 12,706 40,468 33,985 45,273

Commissioncostsandcostsofbankservices (11,285) (8,206) (32,374) (18,396) (26,809)

Netgainsonfinancialinstrumentsatfairvalue 24,905 (22,069) 40,431 (16,714) (33,430)

Otheroperatingincome 3,600 4,867 12,297 14,332 19,021

Net commission income and other operating income 43,629 (12,702) 73,152 13,208 4,055

Total income 250,764 162,393 659,936 542,927 725,221

Personnelexpenses (33,059) (32,024) (99,296) (91,948) (127,059)

Depreciation (2,454) (1,937) (8,378) (5,363) (7,399)

Otheroperatingexpenses (56,751) (59,287) (175,220) (171,482) (224,819)

Total operating expenses (92,264) (93,248) (282,895) (268,793) (359,277)

Profit / (loss) before loan losses 158,501 69,145 377,042 274,134 365,944

Write-downsandlosses 5 (19,354) (11,844) (43,002) (53,321) (62,329)

Profit / (loss) before tax expense 139,147 57,301 334,040 220,814 303,615

Taxexpense (34,787) (15,471) (77,928) (59,973) (77,902)

Profit / (loss) for the period 104,360 41,830 256,113 160,841 225,713

Earningspershare(NOK)(basicanddiluted) 119.1 47.8 292.4 183.6 257.7

1DividendsrelatestocashpaymentfromVisaNorgeFLI

Profit & loss accountGjensidige Bank Group

NOK thousands Q3 2016 Q3 2015 1.1.-30.9.2016 1.1.-30.9.2015 1.1.31.12.2015

Profit/ (loss) for the period 104,360 41,830 256,113 160,841 225,713

Components of other comprehensive income

Items that are not reclassified subsequently to profit or loss

Actuarialgains/(loss)onpensions 235

Taxonitemsthatarenotreclassifiedtoprofitorloss (59)

Total items that are not reclassified subsequently to profit or loss 176

Itemsthatmaybereclassifiedsubsequentlytoprofitorloss (16,950) (16,950) 16,950

Taxonitemsthatmaybereclassifiedtoprofitorloss 127 127 (127)

Total items that may be reclassified subsequently to profit or loss (16,823) (16,823) 16,823

Total components of other comprehensive income (16,823) (16,823) 16,999

Total comprehensive income for the period 87,537 41,830 239,289 160,841 242,712

Statement of comprehensive incomeGjensidige Bank Group

6 Gjensidige Forsikring – hittil i år og fjerde kvartal 20126 Gjensidige Bank – Interim Report 3rd quarter 2016

Balance sheetGjensidige Bank Group

NOK thousands Note 30.9.2016 30.9.2015 31.12.2015

Assets

Cashandclaimsfromcentralbanks 53,319 369,166 548,681

Loans to and claims from credit institutions 539,890 305,552 77,500

Loans to and claims from customers 2,4 39,915,096 34,305,275 36,735,483

-Write-downs 5 (370,961) (366,272) (359,053)

Netloanstocustomers 39,544,135 33,939,003 36,376,430

Certificates,bondsandotherinterest-bearingsecurities 3,995,118 2,056,901 3,185,320

Shares(andothersecuritieswithvariableyield) 155 155 17,105

Intangible assets 15,742 17,235 16,987

Deferredtaxassets 28,151 13,947 35,259

Fixedassets 2,432 714 1,109

Otherassets 139,922 151,790 151,115

Advancepaymentsandaccruedincome 52,659 45,739 51,726

Total assets 44,371,524 36,900,202 40,461,232

Liabilities and equity

Liabilities to credit institutions 7

Deposits and liabilities to customers 2 20,378,302 17,508,072 19,357,232

Liabilities opened for the issue of securities 3,9 20,024,687 16,025,205 17,804,657

Otherliabilities 63,208 82,608 47,469

Currenttax 83,510 58,269 102,671

Accruedcostsandadvancepaymentofincome 256,563 342,427 115,648

Provisionforcommitmentsandcosts 14,470 13,840 14,470

Subordinatedloancapital 3 449,665 349,837 349,811

Total liabilities 41,270,405 34,380,257 37,791,957

Equity

Sharecapital 976,740 973,236 974,112

Sharepremium 892,452 625,956 695,080

PerpetualTier1capital 10 299,037 298,994 298,939

Otherpaid-inequity 3,779 3,779 3,779

Otherequity 929,111 617,980 697,365

Total equity 3,101,119 2,519,945 2,669,275

Total liabilities and equity 44,371,524 36,900,202 40,461,232


Statement of changes in equityGjensidige Bank Group

NOK thousandsShare

capitalShare

premium

Perpetual Tier 1

capital

Other paid-in equity

Totalpaid-in equity

Otherequity

Totalequity

Equity1.1.2015 972,360 576,832 3,779 1,552,971 459,622 2,012,593

Capitalexpansion1.1.-30.9.2015 876 49,124 50,000 50,000

Share-basedpaymenttransactionssettledinequity (385) (385)

PerpetualTier1capital 298,200 298,200 298,200

PaidinterestonPerpetualTier1capital (1,304) (1,304)

Profit/(loss) for the period 1.1.-30.9.2015 2,098 2,098 158,742 160,841



Actuarialgains/(loss)onpensions

Taxonitemsthatarenotreclassifiedtoprofitorloss

Total items that are not reclassified subsequently to profit or loss

Itemsthatmaybereclassifiedsubsequentlytoprofitorloss

Taxonitemsthatmaybereclassifiedtoprofitorloss

Total items that may be reclassified subsequently to profit or loss

Total components of other comprehensive income

Total comprehensive income for the period 1.1.-30.9.2015 2,098 158,742 158,742

Equity 30.9.2015 973,236 625,956 298,994 3,779 1,901,965 617,980 2,519,945

Capitalexpansion1.10.-31.12.2015 876 69,124 70,000 70,000

Share-basedpaymenttransactionssettledinequity 68 68

PerpetualTier1capital

PaidinterestonPerpetualTier1capital (2,610) (2,610) (2,610)




Actuarialgains/(loss)onpensions 235 235

Taxonitemsthatarenotreclassifiedtoprofitorloss (59) (59)

Total items that are not reclassified subsequently to profit or loss 176 176

Itemsthatmaybereclassifiedsubsequentlytoprofitorloss 16,950 16,950

Taxonitemsthatmaybereclassifiedtoprofitorloss (127) (127)

Total items that may be reclassified subsequently to profit or loss 16,823 16,823

Total components of other comprehensive income 16,999 16,999

Total comprehensive income for the period 1.10.-31.12.2015 2,554 2,554 79,317 81,871

Equity 31.12.2015 974,112 695,080 298,939 3,779 1,971,909 697,365 2,669,275


Statement of changes in equity (cont.)Gjensidige Bank Group

NOK thousandsShare

capitalPremium

reserve

Perpetual Tier 1

capital

Other paid-in equity

Totalpaid-in equity

Otherequity

Totalequity

Equity1.1.2016 974,112 695,080 298,939 3,779 1,971,909 697,365 2,669,275

Capitalexpansion1.1.-30.9.2016 2,628 197,372 200,000 200,000

Share-basedpaymenttransactionssettledinequity (147)


PaidinterestonPerpetualTier1capital (7,410) (7,410) (7,410)




Actuarialgains/(loss)onpensions

Taxonitemsthatarenotreclassifiedtoprofitorloss

Total items that are not reclassified subsequently to profit or loss

Itemsthatmaybereclassifiedsubsequentlytoprofitorloss (16,950)

Taxonitemsthatmaybereclassifiedtoprofitorloss 127

Total items that may be reclassified subsequently to profit or loss (16,823)

Total components of other comprehensive income (16,823)

Total comprehensive income for the period 1.1.-30.9.2016 7,509 7,509 231,892 239,401

Equity 30.9.2016 976,740 892,452 299,037 3,779 2,172,008 929,111 3,101,119

Numberofsharesatendofperiod 876,000


NOK thousands 1.1.-30.9.2016 1.1.-30.9.2015 1.1.-31.12.2015

Operating activities

Netpaymentofloanstocustomers (3,198,598) (6,649,167) (9,167,566)

Netpaymentofdepositsbycustomers 1,021,070 804,722 2,653,882

Paymentofinterestfromcustomers 982,452 958,854 1,283,838

Paymentofinteresttocustomers (45,478) (19,901) (310,981)

Netpaymentofinterestfromcreditinstitutionsetc. 177 17,280 598

Taxespaid (87,383) (72,599) (68,153)

Netothercommissionincome 16,722 29,033 26,318

Paymenttooperations (262,875) (255,277) (344,425)

Netreceived/paid(-)uponpurchaseandsaleoffinancialinstrumentsandinterest-bearingsecurities (827,912) (232,739) (1,333,954)

Net cash flow from operating activities (2,401,824) (5,419,794) (7,260,443)

Investment activities

Netpurchaseofintangibleassetsandfixedassets (9,956) (7,268) (9,450)

Net cash flow from investment activities (9,956) (7,268) (9,450)

Financing activities

Netpaid(-)/receivedwhentakingoutloanswithcreditinstitutionsandcoveredbonds 2,394,963 5,820,633 7,554,745

Netpaymentofinterestonfinancingactivities (228,150) (183,466) (248,479)

Netreceived/paid(-)forothershort-termpositions 21,876 (17,908) 40,719

Paid-upequity

Tier1issuance 298,200 298,200

Tier1interest payments (9,880) (1,786) (5,219)

Capitalincreases 200,000 50,000 120,000

Net cash flow from financing activities 2,378,809 5,965,672 7,759,965

Total cash flow (32,971) 538,610 490,072

Cash flow for the period

Liquidassetsatstartofperiod 626,180 136,108 136,108

Liquidassetsatendofperiod 593,209 674,718 626,180

Net payment received/made(-) of cash (32,971) 538,610 490,072

Specification of liquid assets

Claimsfromcentralbanks 53,319 369,166 548,681

Deposits with credit institutions 539,890 305,552 77,500

Liquid assets in statement of cash flow 593,209 674,718 626,180

Statement of cash flowGjensidige Bank Group

Thestatementofcashflowshowspaymentsofcashandcashequivalentsmadeandreceivedthroughouttheyear.Thestatementhasbeenadjustedforitemsthatdonotinitiatecashflows,suchasprovisions,depreciationandwrite-downsofloansandguarantees.Cashflowsareclassifiedasoperatingactivities,investmentactivitiesorfinancingactivities.Theliquidassetsaredefinedascashandclaimsfrom central banks and loans to and claims from credit institutions.


NotesGjensidige Bank Group

1. Accounting policiesTheGjensidigeBankGroupcomprisesGjensidigeBankASAanditssubsidiaryGjensidigeBankBoligkredittAS.TheGroupprepa-res its accounts in accordance with international financial repor-tingstandards(IFRS),andtheinterimaccountsforthethirdquarterhavebeenpreparedinaccordancewithIAS34-Interimreports.

Thesameaccountingprinciplesandcalculationmethodshavebeenusedasinthelastannualreport.Formoredetailedinfor-mation about accounting principles, we refer to the annual re-portfor2015forGjensidigeBankASA.

ThefollowingInternationalFinancialReportingStandards(IFRS)andinterpretationstatementshavebeenpublishedupuntil25October2016withouthavingenteredintoforceorhavingbeenimplementedearly:

Standards that can influence accounting principles• IFRS 9 Financial instruments (2014) IFRS9introducesnewrequirementsfortheclassificationandmeasurementoffinancialassets,includinganewexpectedlossmodel for the recognition of impairment losses, and changed re-quirementsforhedgeaccounting.IFRS9willenterintoforceon1January2018.

• IFRS 15 Revenue from Contracts with Customers (2014) IFRS15appliestotheannualreportingperiodbeginningonorafter1January2017andcoversallcontractswithcustomers.IFRS15establishesaframeworkfortherecognitionandmeasurementofrevenue.Itisassumedthatthechangewillnothaveamaterialeffect.

• IFRS 16 Leases (2016) IFRS16requiresallleasestobereportedonacompany’sbalancesheet as assets and liabilities. Earlier classification of leases as ei-theroperatingleasesorfinanceleasesareremoved.Allleasingwillbetreatedasfinanceleases.Short-termleases(lessthan12months)andleasesoflow-valueassetsareexemptfromthere-quirements.IFRS16iseffective1January2019.

• Amendments to IFRS 2 Classification and measurement of share-based payment transactions (2016) IFRS2hasbeenamendedregardingtheclassificationandmeas-urementofshare-basedpaymenttransactionswithanetsettle-

mentfeatureforwithholdingtaxobligations.Iftheentityisobligedtowithholdanamountforanemployee’staxobligationassociatedwithashare-basedpayment,andtransferthatamountincashtothetaxauthorityontheemployee’sbehalf,thentheentityshallaccountforthatobligationasanequity-set-tledshare-basedpaymenttransaction.Theamendmentsareef-fectivefrom1January2018.ThetaxobligationintheGroup’sre-munerationschemewillbereclassifiedfromliabilitytoequityasat1January2018.Fromthisdatethetaxobligationwillbeac-countedforasanequity-settledshare-basedpaymenttransac-tioninsteadofcash-settledshare-basedpaymenttransaction.Ourpreliminaryassessmentisthattheamendmentisnotex-pectedtohaveasignificanteffectonGjensidige’sfinancialstatements.

BasedonourpreliminaryassessmentsandonthebasisofGjensidige'scurrentoperations,otheramendmentstostandardsandinterpretationstatementswillnothaveamaterialeffect.

Preparationoftheinterimaccountsinvolvesusingassessments,estimates and assumptions that affect the use of accounting policiesandrecognisedamountsforassetsandliabilities,reve-nuesandexpenses.Theactualresultsmaydeviatefromtheseestimates.Themostmaterialassessmentsrelatingtotheuseofthecompany’saccountingpoliciesandthekeysourcesofuncer-tainty in the estimates are the same when preparing the interim accountsasintheannualaccountsfor2015.

TheGjensidigeBankGroupwasestablishedinthethirdquarterof2009withtheestablishmentofGjensidigeBankBoligkredittAS.SharecapitaltotalsNOK143millionandGjensidigeBankASAownsallshares.ThecompanywasestablishedwiththeobjectiveoftakingoverpartsoftheloanportfolioinGjensidigeBankASAwiththeaimofissuingcoveredbonds.

AllamountsareshowninNOKthousandsunlessotherwiseindi-cated. Due to rounding off differences, figures and percentages maynotaddupexactlytothetotalsindicated.

A complete or limited audit of the interim report has not been carried out.

2. Segment informationNOK thousands 30.9.2016 30.6.2016 31.3.2016 31.12.2015 30.9.2015 30.6.2015 31.3.2015 31.12.2014

Deposit by sector and industry

Retailmarket 15,683,920 16,011,948 15,507,671 15,226,595 14,404,092 14,662,128 14,360,127 14,768,454

Other 4,694,383 4,670,382 4,594,426 4,130,637 3,103,979 2,937,653 2,336,184 1,934,896

Total deposits 20,378,302 20,682,330 20,102,098 19,357,232 17,508,072 17,599,781 16,696,311 16,703,350

Loans to customers divided by sector and industry

Privateindividuals 39,269,939 38,358,604 37,229,351 36,301,989 33,946,678 31,212,524 29,210,942 27,491,236

Other 645,158 600,447 486,849 433,495 358,596 276,534 109,276 55,277

Gross loans 39,915,096 38,959,051 37,716,199 36,735,483 34,305,275 31,489,058 29,320,218 27,546,513


3. Liabilities on the issue of securitiesNominal value Book value

NOK thousands 30.9.2016 30.9.2015 31.12.2015 30.9.2016 30.9.2015 31.12.2015

Liabilities opened for the issue of securities

Bonddebt1 17,369,350 13,529,500 15,349,851 17,296,008 13,560,199 15,391,746

Tier2Subordinatedloancapital 450,000 350,000 350,000 449,665 349,806 349,811

-Ownnon-amortisedcertificates/bonds (200,000) (75,000) (181,000) (200,109) (75,094) (180,861)

Total liabilities at amortised cost 17,619,350 13,804,500 15,518,851 17,545,565 13,834,911 15,560,696

Liabilities opened for the issue of securities

Bonddebt 2,750,000 2,400,000 2,450,000 2,928,788 2,540,101 2,593,771

Total liabilities included in fair value hedge 2,750,000 2,400,000 2,450,000 2,928,788 2,540,101 2,593,771

Certificate and other borrowings

Bonddebt

Total liabilities at fair value

Total liabilities 20,369,350 16,204,500 17,968,851 20,474,353 16,375,012 18,154,467

1MinuscoveredbondsheldbyGjensidigeBankASAissuedbyGjensidigeBankBoligkredittASwithanominalvalueofNOK1,293.0millionasof30September2016.ThecoverpoolmarketvaluewasNOK1,586.7million.

Maturity

Remaining maturity (nominal value) 30.9.2016 30.9.2015 31.12.2015

2015

2016 440,000 1,239,000 959,000

2017 1,967,000 2,100,000 2,300,000

2018 3,995,350 3,448,500 3,992,851

2019 4,150,000 3,050,000 3,700,000

2020 4,800,000 4,100,000 4,200,000

2021 2,867,000 1,767,000 1,917,000

2024 1,300,000 250,000

2025 850,000 800,000 950,000

Total 20,369,350 16,504,500 18,268,851

ThematurityofTier1andTier2capitalispresentedatfirstcalldateintheabovetable.

Newissuesin2016 3,250,000

Repaymentsin2016 852,000


5. Write-downs and losses on loansNOK thousands 30.9.2016 30.9.2015 31.12.2015

Write-downs and losses for the period

+/-Changeingroupwrite-downsfortheperiod 11,314 8,471 1,091

+/-Changeinindividualwrite-downsfortheperiod 593 2,644 2,806

+Write-offduringtheperiod 39,483 48,577 67,624

-Paymentsonpreviouslywritten-offaccounts (8,389) (6,372) (9,193)

Write-downs and losses for the period 43,002 53,321 62,329

Individual write-downs

Individualwrite-downsatthestartoftheperiod 6,131 3,325 3,325

+/-Changeinindividualwrite-downsfortheperiod 593 2,644 2,806

Individual write-downs at the end of the period 6,724 5,969 6,131

Group write-downs

Groupwrite-downsatthestartoftheperiod 352,923 351,832 351,832

+/-Changeingroupwrite-downsfortheperiod 11,314 8,471 1,091

Group write-downs at the end of the period 364,237 360,303 352,923

Total write-downs at the end of the period 370,961 366,272 359,053

Defaulted loans

Grossdefaultover90days 387,500 333,686 339,199

GjensidigeBankASApresentsfinanceleasesinthefinancialsta-tementsunderloanstoandreceivablesfromcustomers.Thelease agreements only comprise cars.

4. Finance leases

NOK thousands 30.9.2016 30.9.2015 31.12.2015

Gross investment in finance leases, receivable:

Less than 1 year 93,673 27,320 44,754

1-5years 209,531 174,475 186,587

Morethan5years 535 718 96

Total 303,739 202,513 231,437

Unearnedfinanceincome (18,377) (11,638) (13,455)

Net investment in finance leases 285,362 190,875 217,982

Net investment in finance leases, receivable:

Less than 1 year 86,145 22,077 38,854

1-5years 198,682 168,080 179,032

Morethan5years 535 718 96

Net investment in finance leases 285,362 190,875 217,982

Unguaranteedresidualvaluesaccruingtothebenefitofthelessor

Accumulatedprovisionforuncollectibleminimumleasepaymentsreceivable

Contingentrentsrecognisedasincomeintheperiod

ThefiguresallrefertoGjensidigeBankASA.GjensidigeBankBoligkredittASdoesnotengageinfinanceleasing.


6. Capital adequacyNOK thousands 30.9.2016 30.9.2015 31.12.2015

Primary capital

Sharecapitalandsharepremium 1,869,192 1,599,192 1,669,192

Otherequity 933,727 623,857 705,692

Total Equity (exclusive Tier 1 hybrid capital) 2,802,919 2,223,049 2,374,884

Deduction

Profitnotincludedinthecalculationofnetprimarycapital (256,113) (160,841)

Goodwillandotherintangibleassets (15,742) (17,236) (16,987)

Valueadjustmentsduetotherequirementforprudentvaluation (4,166) (3,468) (3,381)

Common equity Tier 1 capital 2,526,898 2,041,504 2,354,516


Tier1Hybridcapital 298,200 296,896 294,390

Tier 1 capital 2,825,098 2,338,400 2,648,906

Supplementarycapital

Tier2Subordinatedloancapital 449,600 350,000 349,800

Net primary capital 3,274,698 2,688,400 2,998,706

Credit risk:

Ofwhich:

Local and regional authorities 1,426 1,650 1,426

Institutions 16,686 7,381 9,692

Enterprises 63,694 15,754 46,618

Massmarketpositions 415,448 359,497 345,915

Positionssecuredbymortgage 978,619 882,034 913,155

Overduepositions 28,484 29,862 29,806

Coveredbonds 20,340 9,948 15,297

Sharesinsecuritiesfund 3,321 3,161

Equtiypositions 12

Otherpositions 7,172 4,310 9,084

Total minimum requirement credit risk 1,535,203 1,310,435 1,374,152

Operationalrisk 99,394 87,519 99,394

CVA-risk 17,107 19,483 19,770

Minimum requirement for net primary capital 1,651,704 1,417,436 1,493,317

Basis of calculation of balance sheet items not included in trading portfolio 17,448,682 14,654,176 15,826,968

Basis of calculation of off-balance sheet items not included in trading portfolio 1,588,805 1,726,810 1,349,949

Risk-weighted assets (calculation basis for capital adequacy ratio) 20,646,305 17,717,955 18,670,393

Buffer requirements

Systemicriskbuffer 619,389 531,539 560,112

Conservationbuffer 516,158 442,949 466,760

Countercyclicalbuffer 309,695 177,180 186,704

Total buffer requirement for common equity Tier 1 capital 1,445,241 1,151,667 1,213,576

Available common equity Tier 1 capital net min.requirement 152,573 92,529 300,773


7. Related partiesGjensidigeForsikringASA,GjensidigeBankASAandGjensidigeBankBoligkredittASareconsideredtoberelatedparties.Alltrans-actions and agreements with these parties are carried out in ac-cordancewiththearm’slengthprinciple.

GjensidigeBankBoligkredittASpurchasesservicessuchascus-tomersupportandloanmanagement,aswellasday-to-dayman-agementandadministrativeservices,fromGjensidigeBankASA.

GjensidigeBankBoligkredittAShasaccesstostrongcreditfacili-tieswithGjensidigeBankASA.ThisensuresthattheCompanycanpayinterestandprincipaltothecoveredbondsowners,andfi-nancethetransferringofloansandthecoverpool.

Furtherinformationaboutthecreditagreements: a)Long-termcreditfacilityofuptoNOK1,300.0million.Expirydate31December2017. b)Short-termcreditfacilityofuptoNOK2,200.0million.Expirydate30November2016. c)CreditfacilityagreementthatenablesGjensidigeBankBoligkredittAStoborrowmoneyinordertorepayitsoutstand-ingbonddebt.Thecreditfacilityshallbesufficienttocoverthetotalrepaymentoftheoutstandingbondsoverthenext12months.Asof30September2016,thecreditlimitoftheagree-mentwasNOK1,600.0million.

AlltransactionsbetweentheparentcompanyGjensidigeBankASAandthesubsidiaryGjensidigeBankBoligkredittAShavebeen eliminated in the consolidated financial statements.

8. Contingent liabilities and securityNOK thousands 30.9.2016 30.9.2015 31.12.2015

Loan commitment 5,523,468 6,755,352 3,698,650

Unutilisedoverdraftfacility 3,930,268 3,744,153 3,828,505

Total contingent liabilities 9,453,736 10,499,505 7,527,155

Securitiesfurnishedassecurityforloans/overdraftfacilityinNorgesBank 709,524 1,039,000 809,995

Securitiesfurnishedassecurityfortheswaparrangementoftreasurybillsforcoveredbonds

Total securities provided 709,524 1,039,000 809,995

Thelistbelowshowsthetransactionswithrelatedpartiesthatarerecognisedintheincomestatement

NOK thousands 30.9.2016 30.9.2015 31.12.2015

InterestexpenseGjensidigeBankBoligkredittASdepositinGjensidigeBankASA 6,489 4,611 6,140

InterestincomereceivablesGjensidigeBankBoligkredittAS 41,139 26,526 35,291

InterestincomecoveredbondsGjensidigeBankBoligkredittAS 16,714 16,276 21,346

ServicestoGjensidigeBankBoligkredittAS 6,531 4,292 5,945

PurchaseofservicesfromGjensidigeBankBoligkredittAS 441 396 528

PurchaseofservicesfromGjensidigeForsikringASA 22,316 24,232 32,335

Thelistbelowshowsassets/liabilitieswith/torelatedparties

NOK thousands 30.9.2016 30.9.2015 31.12.2015

GjensidigeBankBoligkredittAS'sdepositinGjensidigeBankASA 628,352 478,438 650,370

ReceivablesGjensidigeBankBoligkredittAS 2,378,314 2,501,276 1,901,345

PlacementofcoveredbondsfromGjensidigeBankBoligkredittAS 1,294,217 1,323,274 851,707

LiabilitytoGjensidigeForsikringASA 84 251 (98)

6. Capital adequacy (cont.) 30.9.2016 30.9.2015 31.12.2015

Capital adequacy

Capitaladequacyratio 15.9% 15.2% 16.1%

Tier1capitalratio 13.7% 13.2% 14.2%

CommonequityTier1capitalratio 12.2% 11.5% 12.6%

Leverageratio 5.9% 5.7% 6.1%


9. Fair value of financial instruments30.9.2016 30.9.2015 31.12.2015

NOK thousands Book value Adjustment to fair value Book value Adjustment

to fair value Book value Adjustment to fair value

Assets

Cashtoandreceivablesfromcentralbanks 53,319 53,319 369,166 369,166 548,681 548,681

Cash to and receivables from central banks 53,319 53,319 369,166 369,166 548,681 548,681

Loanstoandreceivablesfromcreditinstitutions,amortisedcost 539,890 539,890 305,552 305,552 77,500 77,500

Loans to and receivables from credit institutions 539,890 539,890 305,552 305,552 77,500 77,500

Loanstoandreceivablesfromcustomers,amortisedcost 39,544,135 39,567,631 32,749,875 32,787,007 36,376,430 36,413,586

Loanstoandreceivablesfromcustomers,fairvalue 1,189,128 1,189,128

Loans to and receivables from customers 39,544,135 39,567,631 33,939,003 33,976,135 36,376,430 36,413,586

Interest-bearingsecurities,receivablesandloans,amortisedcost

Interest-bearingsecurities,fairvalue 3,995,118 3,995,118 2,056,901 2,056,901 3,185,320 3,185,320

Interest-bearing securities 3,995,118 3,995,118 2,056,901 2,056,901 3,185,320 3,185,320

Interest rate swaps 146,460 146,460 155,969 155,969 158,751 158,751


Sharesavailableforsale 155 155 17,105 17,105

Shares 155 155 17,105 17,105

Otherfinancialassets,amortisedcost 32,681 32,681 32,016 32,016 37,007 37,007

Total other financial assets 32,681 32,681 32,016 32,016 37,007 37,007

Total financial assets 44,311,758 44,335,254 36,858,607 36,895,739 40,400,793 40,437,949

Liabilities

Liability to credit institutions, amortised cost

Liability to credit institutions

Deposits and liabilities to customers, measured at amortised cost 20,378,302 20,380,450 17,508,072 17,508,485 19,357,232 19,358,963

Depositsandliabilitiestocustomers,measuredatfairvalue

Deposits and liabilities to customers 20,378,302 20,380,450 17,508,072 17,508,485 19,357,232 19,358,963

Liability incurred through the issue of securities, amortised cost 17,095,900 17,152,162 13,485,105 13,425,503 15,210,885 15,090,253

Liabilityincurredthroughtheissueofsecurities,fairvaluehedge 2,928,788 2,934,678 2,540,101 2,512,268 2,593,772 2,541,028

Liabilityincurredthroughtheissueofsecurities,fairvalue

Liability incurred through the issue of securities 20,024,688 20,086,840 16,025,205 15,937,771 17,804,657 17,631,281



Subordinatedloancapital,amortisedcost 449,665 446,680 349,837 343,187 349,811 340,227

Subordinated loan capital 449,665 446,680 349,837 343,187 349,811 340,227

Otherfinancialliabilities,amortisedcost 249,406 249,406 260,898 260,898 90,990 90,990

Other financial liabilities 249,406 249,406 260,898 260,898 90,990 90,990

Total financial liabilities 41,126,425 41,187,740 34,179,149 34,085,477 37,639,874 37,458,645


Assetsandliabilitiesthataremeasuredatfairvalue,whetherbe-cause they are part of the trading portfolio, were recognised at fairvalueoninitialrecognitionorareheldasavailableforsale,shallbeclassifiedaccordingtohowreliablethefairvalueesti-mateis.Therearethreeclassificationlevels,withlevel1assetshavingpricesquotedinactivemarkets.Level2valuationsaredi-

rectlyorindirectlybasedonobservablepricesforsimilarassets.Level3valuationsarenotbasedonobservableprices,andrelyin-steadon,e.g.,ourownvaluationmodels.Forassetsandliabilitiesforwhichamortisedcostandfairvaluearevirtuallyidentical,bookvaluesandthefairvaluearepresentedwithidenticalamounts.

30.9.2016

NOK thousands Level 1 Level 2 Level 3 Total

Loanstoandreceivablesfromcustomers,designatedatfairvalue

Interest-bearingsecurities,designatedatfairvalue 588,354 3,406,764 3,995,118

Shares,designatedatfairvalue

Shares,availableforsale 155 155

Interest rate swaps 146,460 146,460

Total financial assets measured at fair value 588,354 3,553,224 155 4,141,733

Loanstoandreceivablesfromcustomers,measuredatamortisedcost 39,567,631 39,567,631

Total financial assets measured at amortised cost 39,567,631 39,567,631


Liabilitiesopenedfortheissueofsecurities,measuredatfairvalue


Total financial liabilities measured at fair value 24,364 24,364

Deposits and liabilities to customers, measured at amortised cost 20,380,450 20,380,450

Liability incurred through the issue of securities, amortised cost 17,152,162 17,152,162

Subordinatedloancapital,amortisedcost 446,680 446,680

Total financial liabilities measured at amortised cost 17,598,842 20,380,450 37,979,292

Liabilityincurredthroughtheissueofsecurities,fairvaluehedge 2,934,678 2,934,678

Total financial liabilities included in fair value hedge 2,934,678 2,934,678

Therewerenomajormovesbetweenlevels1and2in2016.

9. Fair value of financial instruments (cont.)30.9.2016 30.9.2015 31.12.2015

NOK thousands Book value Adjustment to fair value Book value Adjustment

to fair value Book value Adjustment to fair value

Off-balance sheet obligations and guarantees

Obligations

Guarantees 78,000 78,000 8,000 8,000 83,000 83,000

Mortgageassets 1 709,524 709,524 954,202 954,303 809,995 809,995

1MortgageassetsincludebondsandcommercialpapersmortgagedwithNorgesBankassecurityforloans/creditfacilitywithNorgesBank.


9. Fair value of financial instruments (cont.)30.9.2015


Loanstoandreceivablesfromcustomers,designatedatfairvalue 1,189,128 1,189,128



Shares,availableforsale


Total financial assets measured at fair value 717,847 1,495,023 1,189,128 3,401,998













31.12.2015


Loanstoandreceivablesfromcustomers,designatedatfairvalue



Shares,availableforsale 17,105 17,105


Total financial assets measured at fair value 742,291 2,601,780 17,105 3,361,176













Therewerenomajormovesbetweenlevels1and2in2015.


10. Perpetual Tier 1 capitalIn2015thebankissuedtwoperpetualTier1capitalinstrumentswithanominalvalueofNOK300million.Theinstrumentsareperpetual but the bank can repay the capital on specific dates, forthefirsttimefiveyearsafteritwasissued.Theinterestratetobepaidisfloating3-monthNIBORplusafixedcreditspread.

TheagreedtermsfortheinstrumentsmeettherequirementsintheEU’sCRRregulationsanditis includedinthebank’sTier1capitalforcapitaladequacypurposes.Thismeansthatthebankhas a unilateral right not to repay interest or the principal to the

investors.Asaconsequenceoftheseterms,theinstrumentsdoesnotmeettherequirementforaliabilityinIAS32andarethere-forepresentedonthelineperpetualTier1capitalunderequity.Further,itimpliesthattheinterestisnotpresentedunderTotalinterestexpensesbutasareductioninOtherequity.Correspondingly,seeninisolation,thebenefitofthetaxdeduc-tionfortheinterestwillleadtoanincreaseinOtherequityandnotbepresentedasadeductionunderthelineTaxexpense,sinceitistheshareholderwhobenefitsfromthetaxdeduction.


1Netinterestmargin,annualised=Netinterestincome/averagetotalassets2Write-downsandlossesinpercent,annualised=Write-downsandlosses/averagegrosslending3Grossdefaultover90days4 Returnonequity,annualised=Shareholders'shareofprofitfortheperiod/averageshareholders'equityfortheperiod,annualised5Deposit-to-loanratio=Depositsinpercentofgrosslending6Capitaladequacyratio=Netprimarycapital/risk-weightedassets Theresultoftheperiodisnotincludedinthecalculationforthequarters,withtheexceptionoffourthquarter.7Tier1capitalratio=Tier1capital/risk-weightedassets Theresultoftheperiodisnotincludedinthecalculationforthequarters,withtheexceptionoffourthquarter.8CommonequityTier1capitalratio=CommonequityTier1capital/risk-weightedassets Theresultoftheperiodisnotincludedinthecalculationforthequarters,withtheexceptionoffourthquarter.9Cost/incomeratio=Totaloperatingcosts/totalincome10Sharedcustomer’sshareofgrosslending=totallendingbalanceofthecustomerssharedwithGjensidigeForsikringASAaspercentofthetotallendingbalanceofthebank

Theaccountsfortheperiodhavenotbeenaudited.

Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4NOK thousands 2016 2016 2016 2015 2015 2015 2015 2014

Interest income etc. 352,259 349,801 343,708 329,392 324,192 328,413 328,996 343,275

Interest costs etc. (145,124) (148,862) (164,999) (137,946) (149,097) (147,899) (154,885) (170,251)

Net interest income 207,135 200,940 178,709 191,446 175,095 180,514 174,111 173,024

Dividendsfrominvestmentsinsharesandfunds 12,330

Commissionincomeandincomefrombankservices 14,078 12,659 13,730 11,288 12,706 11,134 10,145 9,674

Commissioncostsandcostsofbankservices (11,285) (10,439) (10,650) (8,413) (8,206) (5,674) (4,516) (3,721)

Netgainsonfinancialinstrumentsatfairvalue 24,905 14,503 1,023 (16,716) (22,069) 4,706 649 (16,531)

Otheroperatingincome 3,600 4,088 4,609 4,689 4,867 4,674 4,791 4,936

Total income 250,764 221,750 187,422 182,293 162,393 195,355 185,180 167,382

Personnelexpenses (33,059) (29,451) (36,787) (35,111) (32,024) (26,866) (33,057) (34,121)

Depreciations (2,454) (3,760) (2,164) (2,036) (1,937) (1,783) (1,644) (3,160)

Otheroperatingcosts (56,751) (58,922) (59,547) (53,337) (59,287) (57,920) (54,275) (71,038)

Total operating expenses (92,264) (92,133) (98,498) (90,484) (93,248) (86,569) (88,976) (108,318)

Profit / (loss) before loan losses 158,501 129,617 88,924 91,809 69,145 108,785 96,205 59,064

Write-downsandlosses (19,354) (13,324) (10,324) (9,008) (11,844) (23,273) (18,204) (10,461)

Profit / (loss) before tax expense 139,147 116,293 78,600 82,801 57,301 85,513 78,000 48,603

1.1.-30.9.2016 1.1.-30.9.2015 1.1.31.12.2015

Netinterestmargin,annualised1 % 1.84 2.18 2.12

Write-downsandlossesinpercent,annualised2 % 0.15 0.24 0.20

Non-performingloansinpercentofgrosslending3 % 0.97 0.97 0.92

Returnonequity,annualised4 % 12.77 10.08 10.28

Deposit-to-loanratioattheendoftheperiod5 % 51.1 51.0 52.7

Capitaladequacyratio6 % 15.86 15.17 16.06

Tier1capitalratio7 % 13.68 13.20 14.19

CommonequityTier1capitalratio8 % 12.24 11.52 12.61

Cost/incomeratio9 % 42.9 49.5 49.5

LiquditiyCoverageRatio % 117 72 110

Averagetotalassets NOKthousands 42,606,144 32,486,713 34,074,390

AveragenumberofFTEs Number 141 150 151

TotaldepositaboveNOK2million NOKbillion 5.46 3.86 4.89

Sharedcustomers'shareofgrosslending10 % 76.59 76.70 76.96

Quarterly earnings performanceGjensidige Bank Group

Key figuresGjensidige Bank Group


NOK thousands Q3 2016 Q3 2015 1.1.-30.9.2016 1.1.-30.9.2015 1.1.31.12.2015

Interest income etc. 274,378 242,741 810,404 742,327 991,021

Interest costs etc. (93,569) (104,337) (312,745) (325,472) (418,227)

Net interest income 180,809 138,403 497,659 416,855 572,794

Dividendsfrominvestmentsinsharesandfunds1 12,330 12,330

Commissionincomeandincomefrombankservices 13,495 12,107 38,695 32,140 42,842

Commissioncostsandcostsofbankservices (11,285) (8,206) (32,374) (18,396) (26,809)

Netgainsonfinancialinstrumentsatfairvalue 24,570 (21,833) 40,213 (16,328) (33,247)

Otheroperatingincome 5,885 6,422 18,829 18,624 24,966

Net commission income and other operating income 44,996 (11,509) 77,693 16,041 7,752

Total income 225,805 126,894 575,353 432,896 580,546

Personnelexpenses (32,613) (31,635) (98,059) (90,729) (125,282)

Depreciation (2,454) (1,937) (8,378) (5,363) (7,399)

Otheroperatingexpenses (55,678) (58,502) (170,566) (169,185) (221,770)

Total operating expenses (90,745) (92,074) (277,003) (265,277) (354,452)

Profit / (loss) before loan losses 135,060 34,820 298,349 167,619 226,094

Write-downsandlosses (19,354) (11,844) (43,002) (54,784) (64,287)

Profit / (loss) before tax expense 115,707 22,976 255,347 112,834 161,807

Taxexpense (28,927) (6,204) (62,488) (30,814) (43,998)

Profit / (loss) for the period 86,780 16,773 192,859 82,020 117,809

Earningspershare(NOK)(basicanddiluted) 99.1 19.1 220.2 93.6 134.5

1DividendsrelatestocashpaymentfromVisaNorgeFLI

Profit & loss accountGjensidige Bank ASA


NOK thousands 30.9.2016 30.9.2015 31.12.2015

Assets

Cashandclaimsfromcentralbanks 53,319 369,166 548,681

Loans to and claims from credit institutions 2,908,723 2,798,185 1,969,186

Loans to and claims from customers 21,052,631 18,614,403 21,532,327

-Write-downs (364,502) (359,318) (352,594)

Netloanstocustomers 20,688,129 18,255,085 21,179,733

Certificates,bondsandotherinterest-bearingsecurities 5,148,936 3,309,925 3,966,882

Shares(andothersecuritieswithvariableyield) 155 155 17,105

Ownershipinterestingroupcompanies 1,020,030 1,020,030 1,020,030

Intangible assets 15,742 17,235 16,987

Deferredtaxassets 24,109 11,937 30,377

Fixedassets 2,432 714 1,109

Otherassets (12,793) 29,954 27,640

Advancepaymentsandaccruedincome 40,210 33,741 30,952

Total assets 29,888,992 25,846,128 28,808,681

Liabilities and equity

Liabilities to credit institutions 328,352 478,438 650,370

Deposits and liabilities to customers 20,678,302 17,508,072 19,357,232

Liabilities opened for the issue of securities 5,368,249 4,862,589 5,922,577

Otherliabilities 55,753 72,860 39,282

Currenttax 63,837 30,465 61,510

Accruedcostsandadvancepaymentofincome 224,131 312,651 75,809

Provisionforcommitmentsandcosts 14,470 13,840 14,470

Subordinatedloancapital 449,665 349,837 349,811

Total liabilities 27,182,758 23,628,753 26,471,060

Equity

Sharecapital 976,740 973,236 974,112

Sharepremium 892,452 625,956 695,080

PerpetualTier1capital 299,037 298,200 298,939

Otherpaid-inequity 3,789 3,789 3,789

Otherequity 534,215 316,195 365,701

Total equity 2,706,233 2,217,376 2,337,621

Total liabilities and equity 29,888,992 25,846,128 28,808,681

Balance sheetGjensidige Bank ASA

Gjensidige is a leading Nordic insurance group listed on the Oslo Stock Exchange. We have about 3,900 employees and offer insurance products in Norway, Denmark, Sweden and the Baltic states. In Norway, we also offer banking, pension and savings. Gjensidige Bank, which is a wholly-owned subsidiary of Gjensidige Forsikring ASA, of-fers electronic distribution of day-to-day banking services and consumer financing. The Group’s operating income was NOK 24 billion in 2015, while total assets were NOK 129 billion.

GjensidigeBankASA Schweigaardsgate14 NO-0185OSLO,Norway Phone+4791503100

interim report 3rd quarter 2016

Documents