Sparebanken Møre - the Group

Presentation

Results Q3 2013

Agenda

Main results

Introduction

Deposits and Loans

Funding and Hedging

Results

Equity and EC

Future prospects

Macroeconomic Overview

side 2

Main results

3

Historical performance – in NOK and ROE

1

65 78

114 120 136 173

205

265 272

172 180 217

264 272

333 338 335

458

379

530

308 320

0

50

100

150

200

250

300

350

400

450

500

550

600 Favourable operating environment, a strong

county in a strong Norwegian economy

Positive development in net interest income

Low loan losses and low volume of loans in default

Growth in all areas – total assets above NOK 53,2 billion by quarter end

Still high funding cost due to market uncertainty and strong competition in the deposits market

Positive one off effect on costs in 2012 related to amendments in the Pension scheme

Improved solvency and strong liquidity - issues completed in Q3: Gross proceeds NOK 378,5 million (Core Tier 1)

0,2

20,2

16,5 17,7

14,9 15,0

17,1 16,4

19,2

17,3

10,1 10,2

11,5

14,0 13,4

15,6

12,8 14,1

16,0

12,2

16,4

12,6 11,5

0

2

4

6

8

10

12

14

16

18

20

22

24

26 ROE in per. cent

Results in NOK

High and stable return

Main results

side 4

17,7%

12,7%

11,6%

9,3%

6,5%

4,3%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

DNB SB 1 SMN Spb Møre SB 1 SR-Bank SB 1 Nord-Norge

Spb Vest

Reported ROE – 5 year average Annualised total return – 3 years

Total returns based on reivested dividend at ex-date Source: Annual reports, FactSet

Average of reported return on equity after

tax for the 2008 – 2012 period

Combination of share price appreciation and

dividends since 31 May 2010

14,3%

13,4% 12,9%

11,8% 11,8%

9,0%

0%

2%

4%

6%

8%

10%

12%

14%

16%

Spb Møre SB 1 SMN SB 1 SR-Bank DNB SB 1 Nord-Norge

Spb Vest

Introduction to the bank and the market

3

Introduction

side 6

Introduction to Sparebanken Møre

Independent savings bank

Head office in Ålesund

30 branches in Møre og

Romsdal county

NOK 53,2 billion in total assets,

about 170 000 customers

398 man years 260.000 inhabitants

Established in 1843

Listed on the Oslo Stock

Exchange since 1989

No. 1 bank in Møre og Romsdal

Full service bank in Møre og Romsdal

Introduction

side 7

Corporate Market

Retail Market

Capital Market

Møre Boligkreditt AS

Key business

areas Adm/

support

Fully owned

companies

Core values

Enthusiastic Local Solid

“Maintain position as no. 1 bank in Møre og

Romsdal"

"Local decision making,

independent, and present"

"High competence,

financially solid and safe "

Møre Eiendomsmegling AS

The company has a license to operate as a mortgage company and issue covered bonds

Real estate brokerage towards retail and corporate customers

Contract Banking

Introduction

8

Lev. av prod/tj ä nst

Lev. av prod/tj ä nst

Lev. av adm.st ö d Lev. av

adm.st ö d

Prod/tj ä nster i egen regi

Adm.st ö d i egen regi

Kontrakt Kontrakt Kontrakt Kontrakt

Bankens egna resurser

Bankens ” totala ” resurser

Kund - ansvarig

” Kontrakt ” ” Kontrakt ”

Relation v ä rde

” Kontrakt ”

… … Prov. of

prod/serv.

Prov. of prod/serv.

Prov. of adm.supp. Prov. of

adm. supp.

Prod,/serv.

’in-house’

Adm.supp. ’in-house’

Contract Contract Contract Contract

Bank’s own resources

Bank’s ”total” resources

- Advisor

Customer

” Contract ” ” Contract ”

Relationship

”Contract”

… …

The business model Contract Banking

means that the Bank has opted to conduct

operations and manage all development ’in-

house’ or together with partners/providers

based on what is considered best for the

Bank`s customers and what provides the

best revenue generation for the Bank.

Contract Banking requires:

- Competence to identify partners when this

creates value both for our customers and the

Bank

- Competence to identify partners, enter into

agreements with these partners, develop,

maintain and discontinue relationships with

partners

Sparebanken Møre – a brief overview

Introduction

9

• Sparebanken Møre is the 6th largest Norwegian bank – the bank serves customers

from the county of Møre og Romsdal

• The population of Møre og Romsdal is close to 260 000, and the population in the

municipalities where the bank is located is 200 000

• The bank serves about 170 000 customers, whereof

• 160 500 customers in the retail market

• 9 500 customers in the corporate market

• The activity is based on traditional banking services

• Loans to the retail market: 65,2 %

• Deposits from the retail market: 58,0 %

• Sparebanken Møre is a fully fledged foreign exchange bank

• Sparebanken Møre is rated A3 (stable) by Moody`s

Møre og Romsdal county

Sparebanken Møre's market area

Introduction

side 10

260,000 inhabitants

The 3rd largest GDP per employee

among 19 counties in Norway

Norway's 3rd largest export county

Diversified business structure

Sparebanken Møre with 30% market

share

Selected companies in Møre og Romsdal Diversified business structure in the region

Fisheries/seafood

Marine construction

Agricultural

Offshore services

Oil & gas

Aluminum

Tourism

Furniture

• Norwegian maritime areas are rich in natural resources, and play a very important role in commercial activities in Møre og Romsdal

• The petroleum sector is responsible for 1/4 of the total investments in Norway

• Nyhamna in Møre og Romsdal receives gas from from The Ormen Lange Oilfield, and from there through another pipeline to Easington UK

• A large part of Norway’s strength in the field of advanced marine operations is concentrated within an hours drive from the town of Ålesund.

• The region is home to 14 shipyards, and is one of very few complete maritime clusters in the world.

• Over 75 % of the worlds large, hi-tech offshore vessels are designed here

• 40% of the world’s most advanced offshore fleet is controlled by 19 shipowning companies in the region

• The fishing industry is the second largest export sector in Norway after oil and gas. The value of Norwegian seafood exports totals NOK 51.6 billion in 2012

• Møre og Romsdal is by far the largest food exporting Norwegian county, responsible for 1/3 of the nations total food export

• In addition to fish and fish products the food production and exports also include agricultural products (fruit and berries) and other foodstuff industry (pizza, cured ham, salami, etc)

Oil and offshore

Maritime industry

Fisheries and

seafood

Tourism

• Trollstigen Mountain Road is one of Norway's most dramatic and most visited attractions

• The UNESCO-protected Geirangerfjord will be visited by more than 200 cruiseships in 2013

• The city of Ålesund is known for its architecture in Art Nouveau style, its surrounding fjords and the high peaks of the Sunnmøre Alps

Møre og Romsdal – Diversified industries

Introduction

Summary

Introduction

side 12

Norway

•The Norwegian mainland economy has grown since late 2009

•Large government budget surplus, record high petroleum investments and strong household sector

•Ability and willingness to move monetary and financial policy in more expansive direction if needed

•Well managed petroleum wealth, value of government pension fund of NOK 4 800 billion

•Good labour market performance with low unemployment and high participation

Møre og Romsdal

•Population of approx. 260,000

•Dominant industrial and commercial sectors are fisheries, tourism, maritime- and oil industry

•Responsible for approximately 1/3 of Norway’s total export of food, mainly fish and fishery products

•Unemployment is low 2.0%, well below national average of 2.6%

•Below average national real estate prices and above average disposable income levels

Sparebanken Møre

•Sixth largest savings bank in Norway, solid financial performance with total assets of NOK 53,2 billion

•Market leader in main market, the county of Møre og Romsdal

•65% of lending to retail customers, of which more than 95 % are mortgages

•Strong capitalization reflected by Core Capital of 15,30% and Core Tier 1 of 12,30%

•The Bank is rated A3 (stable outlook) by Moody’s

Deposits and loans

20

Stable growth

Deposits and loans

14

41.391

44.441

48.468

51.632

35.851 37.676

40.305

43.434 45.262

21.793

24.551 25.325

27.081 27.312

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

50000

55000

Total assets Loans Deposits

53.188 NOK mill.

Growth during the last 12

months

• Total assets 5.7 %

• Loans (net) 7.0 %

• Deposits 3.8 %

Breakdown of gross lending

Deposits and loans

15

14.083 14.424 15.395 16.070 15.821

22.155 23.647

25.296 27.650

29.706

14 12

10

20 39

36252 38083

40701

43740 45566

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

50000

Public sector Retail banking Corporate banking

Mill. kroner

Annual net lending growth

2009: 1.6 %

2010: 5.1 %

2011: 7.0 %

2011: 7.8 %

Q3 2013: 7.0 %

Lending growth last 12 months

Gross, retail banking 10.2 %

Gross, corporate 1.2 %

Gross, public sector -

Loans by sector

Deposits and loans

16

Retail

65,20% Fisheries

6,60%

Supply 3,40%

Property

12,30%

Other

12,70%

Other 12.7 %

Private and public services

3.4 Financial services

1.5 Agriculture 1.0 Other 1.9

Building/construction 1,8 Fishing Industry 1.0 Restaurant/ hotel

0.1

Retail/wholesale trade 1,2 Ship Yards 0,7 Furniture 0.1

Breakdown of deposits

Deposits and loans

17

7.523 9.746 10.325 11.155 10.750

12.620

13.274 14.307

15.221 15.854

1.650

1.531 693

704 708

21793

24551 25325

27080 27312

0

5000

10000

15000

20000

25000

30000

Corporate banking Retail banking Public sector

NOK mill.

Annual deposit growth

2009: 5.4 %

2010: 12.7 %

2011: 3.2 %

2012: 6.9 %

Q32013: 3.8 %

Deposit growth last 12 months

Retail banking 5.3 % Corporate banking 3.9 % Public sector -22.5 %

Funding and hedging

18

Unrest, but good access to the market

Funding and hedging

19

• Covered Bonds issued by Møre Boligkreditt AS has replaced senior bonds as the Group`s main source of long-term market financing and now account for close to 74% of our long term market financing

• Unrest in the financial markets has

contributed to higher margins, but over the last quarters the spread development has been positive both for Covered and Senior bonds

• Sparebanken Møre`s refinancing the coming years can primarily be met by issuing Covered Bonds

• Sparebanken Møre is rated A3 (stable) and Covered Bonds issued by Møre Boligkreditt AS are rated Aaa by Moody's

Margins

High deposit to loan ratio - total financing by quarter end

Funding and hedging

20

27.312

11.950

4.266 1770

500 162

Deposits Covered Bonds

Senior Bonds CDs

Subordinated Loans Long Term FX

Other

338

• High deposit to loan ratio (60,1 % in the Group) - focus on long term market funding

• Total market funding close to NOK 19.0 billion – approximately 70 % with remaining maturity of more than one year (20 - 30% of market funding is renewed annually)

• Senior Bonds: Weighted average maturity of 1.73 years

• Covered Bonds with a weighted average maturity of 3.81 years

The quality of the liquidity portfolio is good…

Funding and hedging

21

… and no exposure towards the most vulnerable European economies

Rating

Market Value

Country

Market Value

Currency

Market Value

AAA 4.122.135 Norge 2.890.861 NOK 4.094.921

AA+ 120.117 Sweden 724.048 EUR 920.398

AA 80.709 Finland 345.813

AA- 180.236 Luxembourg 246.750

A 179.515 Int. org. 229.163

A- 302.299 Germany 186.130

BBB+ 15.309 Denmark 161.238

BBB 14.999 UK 137.584

Austria 49.930

Netherlands 43.801

Total 5.015.320 Total 5.015.320 Total 5.015.320

Off-balance activity - quarterly

Funding and hedging

30

Low risk profile in the interest rate,

equity and FX markets

• Sparebanken Møre has no trading

portfolio in these or other similar

markets/instruments

• Client's positions are hedged in the

market

• The bank's positions are hedged

0

5000

10000

15000

20000

25000

30000

35000

40000

IRS (NOK & Curr.) FRA (NOK & Curr.)Forward FX Caps/FloorsCross Currency Swap FX-Options

NOK MLN.

Payments

Funding and hedging

31

43.778 51.145 53.994 56.771 60.259

68.370

19.040

20.929 21.213

21.097 22.028

21.541

2007 2008 2009 2010 2011 2012

Numbers of SWIFT Commercial payments

Outgoing Incoming

NOK; 18855

EUR; 18222 USD; 6252

SEK; 5322

PLN; 5197

DKK; 4371

GBP; 2500

THB; 2137 LTL; 2126

Others; 1604

Numbers of outgoing SWIFT commercial payments pr currency

Results

24

Main figures

Results

25

Q 3 2013 Q 3 2012 Change during last 12 months

From the Profit and Loss Account NOK mill. % NOK mill. % NOK mill. P. points %

Net interest income/av. int. margin 761 1.96 698 1.94 63 0.02 9.0

Net return, financial investments 15 0.04 85 0.20 -70 -0.16 -82.4

Other income 131 0.34 125 0.38 6 -0.04 4.8

Total income 907 2.34 908 2.52 -1 -0.18 -0.1

Personnel costs 242 0.62 248 0.69 -6 -0.07 -2.4

Other costs 200 0.52 198 0.55 2 -0.03 1.0

Total ordinary operating costs 442 1.14 446 1.24 -4 -0.10 -0.9

Result before credit losses 465 1,20 462 1.28 3 -0.08 0.6

Losses on loans and guarantees 28 0.07 36 0.10 -8 -0.03 -22.2

Result before tax cost 437 1,13 426 1.18 11 -0.05 2.6

Tax cost 117 0.30 118 0.33 -1 -0.03 -0.9

Result after tax cost 320 0.83 308 0.85 12 -0.02 3.9

From the Balance Sheet

Total assets 53,188 50,308 2,880 5.7

Net lending 45,232 42,306 2,956 7.0

Deposits 27.312 26,319 993 3.8

Capital adequacy ratio 5,410 3,830 1,580 41.3

Core capital ratio (incl. 50 % of result) 16.90 12.70 4.20 b.p.

Pure Core Capital (incl. 50 % of result) 15.30 11.70 3.60 b.p.

Return on equity capital ( incl. 50 % of result) 12.30 10.15 2.15 b.p.

Percentage return on equity capital (corr.) 11.50 12.60

Costs as a percentage of income 48.70 48.70

Earnings per EC (the Bank) 14.50 16.30

Results

26

Result as a percentage of average assets

2,2

1,95 1,93

1,68

1,54

1,32 1,40 1,44

1,35

1,52

1,23

1,63

1,2

0,55

0,86 0,83

0,34

0,1

0 -0,01

0,17 0,2

0,07 0,09 0,1 0,07

1,65

1,09 1,10

1,34

1,44

1,32

1,41

1,27

1,15

1,45

1,14

1,53

1,13

-0,25

0,25

0,75

1,25

1,75

2,25

Result from ordinary operations before losses

Result before taxation

Losses

Higher net interest income

Results

27

• Net interest income is higher than year despite:

• Strong competition on loan and deposits

• More liquidity on the balance sheet with higher quality

• Unrest and still high margins in the funding market

• Low interest rate level: Less return on free capital

• Higher margins have given a positive development in 2013

• Q1: 1,85%

• Q2: 2,00%

• Q3: 2,04%

1,97 2,03

1,96 1,93 1,94 1,96

0,00

0,50

1,00

1,50

2,00

2,50

3,00AS A PERCENTAGE OF AVERAGE ASSETS

Results

28

Other operating income

0,63

0,72

0,46

0,6 0,58

0,38

0,00

0,25

0,50

0,75

1,00AS A PERCENTAGE OF AVERAGE ASSETS Lower other operating income,

compared with Q3 in 2012:

• Mark to market valuation of the liquidity portfolio

• Lower income from IRS-business

• No gains from sale of the banks`s own buildings

Results

29

Target of Cost/Income ratio below 50 % remains

46,7

44,8

49,5 48,8 48,7 48,7

20

25

30

35

40

45

50

55

Results

30

Losses at a very low level

Losses totalled NOK 28 million

• Corporate: NOK 33 million

• Retail NOK 0 million

• Group of loans NOK -5 million

• Other NOK 0 million

Total provisions amounted to

NOK 306 million by 30.09.2013

0,17

0,2

0,07 0,09 0,1 0,1

0,07

0,00

0,05

0,10

0,15

0,20

0,25

0,30

Losses - details

Results

31

0 0 0

21

2 3 0

16

2

-11

0

-20

-10

0

10

20

30

40

Corporate

28

0

33

-5

-20

-10

0

10

20

30

40

Total

Problem Loans and loan loss reserves

Results

• The volume of Problem loans has declined over the last years

• As a percentage of gross loans this figure ended up 1.31 % by the end of Q3 2013

• The Bank`s loan loss reserve coverage ratio shows a similar positive development and ended up at 51.7 % by quarter end

1,31 %

51,7 %

0,0 %

10,0 %

20,0 %

30,0 %

40,0 %

50,0 %

60,0 %

0,0 %

0,5 %

1,0 %

1,5 %

2,0 %

2,5 %

3,0 %

3,5 %

2007 2008 2009 2010 2011 2012 Q3 2013

Problem loans & Provisions

Problem loans % of gross loans Provisions in % of bad and doubtful

Equity and ECs

33

Equity and related capital: Strong capital

Equity

34

647 784 784 784 989 187

186 186 186

355 393

362 482 593

593

1446 1560

1698 1835

1836 477 482

494

1002

1000

479 479

479

299

500

32 72

52

87

12

3661

3925 4175

4786

5285

0

400

800

1200

1600

2000

2400

2800

3200

3600

4000

4400

4800

5200

5600

6000

NOK mill.

2,36 2,74 2,64 2,39 3,00

0,68 0,65 0,61 0,57

1,08 1,43 1,27 1,57 1,81

1,79

5,27 5,45 5,53 5,60

5,56

1,70 1,68 1,61

3,06

3,02 1,75 1,67 1,56

0,90

1,54

0,16 0,28 0,18

0,30

0,03

13,35 13,74 13,70

14,63

16,02

0,00

1,00

2,00

3,00

4,00

5,00

6,00

7,00

8,00

9,00

10,00

11,00

12,00

13,00

14,00

15,00

16,00

17,00

18,00%

ECs Premium Fund

Dividend Equalisation Fund Savings Bank's Fund

Capital Bonds Supplementary capital

Miscellaneous

Møre's equity issue has strengthen CET1

Equity

side 35

Sparebanken Møre will maintain a strong

financial position as the leading bank in the

region

Sparebanken Møre sees opportunities for

increased business with solid customers in

markets with attractive margins

Strong macroeconomic development in the

region offering good credit quality and low

loan losses – expecting continued low losses

and write downs

Ability to maintain growth, existing dividend

policy and meet regulatory changes to

capital structure

9,84 10,38 10,4 10,55 12,3

1,71 1,65 1,61

3,15

3

11,55 12,03 12,01

13,7

15,3

0

2

4

6

8

10

12

14

16

18

2009 2010 2011 2012 Q3 2013

Other Tier 1 Capital

Core Tier 1 Capital

Equity

Implementing improved profitability

side 36

Interest margin increase

Loan portfolio adjustments

Increased cost efficiency

Selective growth

Four additional key measures implemented to strengthen profitability and CET1

1 2

3 4

Summing up and outlook

Future prospects

side 37

From the CEO:

We expect the moderate growth in the regional economy to continue

Maintained focus on further improving the efficiency of bank operations

The Bank has a good Capital and Liquidity base, and hence good capacity to reach the targets in our long-term strategic plan "Møre 2017“

Still low losses and low level of loans in default - loss level is expected to continue at a moderate level

The development of the new regulatory framework is followed closely and with tension

Dividend policy

Equity

side 38

Based on the fact that new legal rules relating to capital and organisation forms in the

savings bank sector etc. were sanctioned at a Cabinet Meeting on 19.06.2009 on the

basis of coming into force on 01.07.2009, Sparebanken Møre changed its dividend policy

with effect from the 2009 accounting year. The dividend policy reads as follows:

“Sparebanken Møre’s aim is to achieve financial results which provide a good and stable

return on the Bank’s equity capital. The results shall ensure that the owners of the

equity capital receive a competitive, long-term return in the form of dividends and

increase in the value of the equity capital.

The equity capital owners’ share of the net result being set aside as dividend funds, will

be adapted to the Bank’s equity capital situation. Sparebanken Møre’s allocation of

earnings shall ensure that all equity capital owners are guaranteed equal treatment.”

Dividend and EC-price

Equity

side 39

• The PCCs/ECs of Sparebanken Møre have been listed at Oslo Stock Exchange

since 1989

• Total EC capital: NOK 989 million by September 2013

Dividend pr. EC:

1990 10 2001 17

1991 0 2002 15

1992 0 2003 16

1993 13 2004 18

1994 12 2005 20

1995 13 2006 20

1996 13 2007 23

1997 13 2008 20

1998 15 2009 12

1999 16 2010 12

2000 17 2011 8

2012 12

Macroeconomic Overview

40

Economic environment - Norway

side 41

The Norwegian economy remains strong. However,

The Norwegian economy is characterised by: Low unemployment Record high house prices Increased private demand High activity in the oil sector Strong public sector growth Low inflation and interest rates

Growth will be lower this year due to: Lower growth in petroleum investments The downward cycle in Europe High costs in the export sectors Higher customer interest rates We expect a GDP growth in Mainland Norway of 2 per cent in 2013 and 2 ½ per cent in 2014

growth will decline this year

Economic environment - Norway

28.10.2013 side 42

Growth was low in Q2 2013

Economic environment - Norway

28.10.2013 side 43

High household debt is the main risk factor

4

5

6

7

8

9

10

11

12

100

120

140

160

180

200

220

1988 1991 1994 1997 2000 2003 2006 2009 2012 2015

Debt ratio and interest burden

Debt ratioInterest burden (R. H. Scale)

Economic environment - Norway

28.10.2013 side 44

House prices in Norway has risen significantly

Economic environment – Norway and Møre og Romsdal

45 Source: Norwegian Association of Real Estate Agents (NEF)

Considerable differences in housing prices

31,2

22,8

0

5

10

15

20

25

30

35

40

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

Q1

-13

Q2

-1

3Q

3 -

13

NO

K 1

00

0 p

r. k

vm

Housing prices

Norway Møre og Romsdal

20,7

16

0

5

10

15

20

25

30

35

40

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

Q1

-13

Q2

-1

3

Q3

-1

3

NO

K 1

00

0 p

r. k

vm

Detached

Norway Møre og Romsdal

26,9

21,6

0

5

10

15

20

25

30

35

40

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

Q1

-13

Q2

-1

3Q

3 -

13

NO

K 1

00

0 p

r. k

vm

Semi detached

Norway Møre og Romsdal37,8

26,7

0

5

10

15

20

25

30

35

40

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

Q1

-13

Q2

-1

3

Q3

-1

3

NO

K 1

00

0 p

r. k

vm

Appartment

Norway Møre og Romsdal

Economic environment – Møre og Romsdal

side 46

The business sector in Møre og Romsdal is doing well

The most important drivers of growth and activity in 2013 and forward:

Private consumption

Public expenditures

The construction sector

Oil production and investment

Food production and fish exports

The maritime cluster

Main reasons for higher growth:

Low interest rates

Expansionary fiscal policy

High oil prices

A competitive business sector

Some export market growth

95

100

105

110

115

2009 2010 2011 2012 2013 2014

Private Service Sector in M & R

Production Employment Iinvestments

95

100

105

110

115

2009 2010 2011 2012 2013 2014

The Public Sector in M & R

Production Employment Investments

Economic environment – Møre og Romsdal

side 47

However, the outlook for the manufacturing

sector is somewhat weaker

• The outlook for the manufacturing

industry is somewhat weaker due to:

- Low export market growth

- A high level of costs

However, a continued weaker NOK will lead

to increased competitiveness.

• Unemployment in Møre og Romsdal will

stabilise around 2 ½ per cent in the

coming years

• Increased demand for labour due to

increased production of goods and

service and limited productivity growth

will keep unemployment low

96

97

98

99

100

101

102

103

104

2009 2010 2011 2012 2013 2014

The Manufacturing Sector in M & R

Production Employment

0

5

10

15

20

25

30

35

Production

Employment

Distribution of production and employment between sectors

Lower production growth in Møre og Romsdal - growth will vary among the sectors

Economic environment – Møre og Romsdal

side 48

Low growth in traditional exports

Moderate growth in private services

Increased activity in the public sector

High production within hydro electric power shipbuilding and the petroleum sector

High production in the fishing industry

Increased number of bankruptcies, although smaller growth than in Norway on average

Slightly increasing unemployment

Most important risk factors:

International economy

The oil price

The Norwegian krone

Household debt and house prices

Number of unemployed in Møre og Romsdal (sadj)

Actual number of unemployed in Møre og Romsdal

Contact

Head Office

Keiser Wilhelmsgt. 29-33

P.O.Box 121

6001 Ålesund

Tel: +47 70 11 30 00

Telex: 42 193 spare n

Reuters Dealing: MORE

Fax:

General Management +47 70 12 26 70

Corporate Division +47 70 12 44 67

Retail Customers Division +47 70 12 98 85

Treasury/Markets +47 70 12 13 01

International Payments +47 70 12 99 12

www.sbm.no

Treasury and Markets Division Head of Division Runar Sandanger, EVP, e-mail: runar.sandanger@sbm.no + 47 70 11 31 73

+ 47 95 04 36 60

Chief Economist Inge Furre, e-mail: inge.furre@sbm.no + 47 70 11 31 44

Treasury Ove T. Ness, VP, e-mail: ove.ness@sbm.no + 47 70 11 31 74

Aud Janne Myklebust, VP, e-mail: aud.janne@sbm.no + 47 70 11 31 75

Møre Boligkreditt AS: Ole Andre Kjerstad, CEO, e-mail: ole.andre.kjerstad@sbm.no + 47 41 40 09 55

Markets Martin H. Skuseth (SVP), e-mail: martin.skuseth@sbm.no +47 70 11 31 85

Louis Helge Nordstrand, e-mail: louis.nordstrand@sbm.no + 47 70 11 31 55

Hilde Sveen, e-mail: hilde.sveen@sbm.no + 47 70 11 32 80

Roger Lervik, e-mail: roger.lervik@sbm.no + 47 70 11 31 77

Tove Lunde, e-mail: tove.lunde@sbm.no + 47 70 11 31 90

Svein Arne Tynes, e-mail: svein.tynes@sbm.no + 47 70 11 31 82

Discretionary Asset Management Trond Moldskred, VP, Head, e-mail: trond.moldskred@sbm.no +47 70 11 31 87

International Payments and Settlements Karl Otto Hessen, VP, Head, e-mail: karl.otto.hessen@sbm.no + 47 40 20 09 54

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