Gjensidige Bank Investor Presentation Q1 2017

4. May 2017 Disclaimer

The information contained herein has been prepared by and is the sole responsibility of Gjensidige Bank ASA and Gjensidige Bank Boligkreditt AS (“the Company”). Such information is confidential and is being provided to you solely for your information and may not be reproduced, retransmitted, further distributed to any other person or published, in whole or in part, for any purpose. Failure to comply with this restriction may constitute a violation of applicable securities laws. The information and opinions presented herein are based on general information gathered at the time of writing and are therefore subject to change without notice. While the Company relies on information obtained from sources believed to be reliable but does not guarantee its accuracy or completeness.

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2 GB strategically important for Gjensidige Insurance Group - strengthen position in the Norwegian household market

Gjensidige Insurance Group - Leading Nordic general insurance company with 200 years history - S&P A rating with strong enterprise risk management - Market leader in Norway with 25.4% market share1) - Earned premiums ~ NOK 22bn in 2016 Gjensidige Insurance Group - Pre-tax profit NOK 6.1bn in 2016 - Market Capitalization ~ NOK 66bn2)

Norway Nordic Baltics Gjensidige Bank

General Insurance General Insurance General Insurance - Established in 2007 - Fully owned by Gjensidige Forsikring ASA Retail Bank - Online retail bank with Norwegian presence only

Pension - Day-to-day banking services, mortgages, savings & investments products and car and consumer financing - Distribution via call center, mobile, tablet, group portal, and the Group’s 20 financial offices - Approximately 157,000 customers 3) - Customer Assets ~ NOK 42.9bn (Total Assets ~ NOK 47.1bn) 3)

1) Source: Finance Norway, 3rd quarter 2016 2) as of 2.5.2017 3) as of March 2017

3 Financials targets and outcome

TARGET FY 2015 FY 2016 Q1’16 Q1’17

Support the Groups Pre-Tax Earnings NOK 304m NOK 428m NOK 79m NOK 103m target for return on & After-Tax ROE 10.3% 11.7% 9.3% 10.4% equity 

YoY C/I Ratio 50% 43% 53% 44% Improvement 

YoY Customer Above average Assets 33% Assets 12% Assets 29% Assets 14% Footings Growth1) market growth Deposits 16% Deposits 10% Deposits 20% Deposits 7% 

Capital Adequacy >16.0% 16.1% 17.1% 15.8%2) 16.6%2) 3)  Ratio (CET 12.5%) (CET1 12.6%) (CET1 13.5%) (CET1 12.5%) (CET1 13.1%)

Standard & Poor's >A A- A A A Rating (Covered Bond Program AAA) (Covered Bond Program AAA) (Covered Bond Program AAA) (Covered Bond Program AAA) (Covered Bond Program AAA) 

1) Customer Footings = Total of Customer Assets and Customer Deposits. 2) Excluding retained earnings 3) Year end 2017 target for capital adequacy ratio is 17.5% and CET 1 14.0% 4 Customer assets 14 per cent growth in customer asset YoY

Customer assets (NOKbn) Household lending growth (%)

Market Growth (household) Gjensidige Bank 45 42.9 42 41.2 40 36.7 35 34 14% 30 27.5 24.2 12% 25

20 17.3 33% 14 14.1 15.0 15 14% 11.6 10 7 6.7 40% 5

-

J-11 J-11 J-12 J-12 J-13 J-13 J-14 J-14 J-15 J-15 J-16 J-16 J-17

A-12 A-13 A-14 A-15 A-16

2008 2009 2010 2011 2012 2013 2014 2015 2016 Mar'17 A-11

O-11 O-12 O-13 O-14 O-15 O-16 LTV 61% for the Mortgage portfolio Source: Statistics Norway, Household 12 months percentage growth 91% of the portfolio is secured lending primarily sourced from members of Tekna, NITO & YS 5 Total income YTD 2017 income up by NOK 55m or 29 per cent from prior year

Total income (NOKm) Full year 2016 total income by type

NII Fees Other Income Financial Instruments

Net Interest Income 92% 42 293 (ex MtM 91%) 19 18

22 3 29 21 29 20% 9 9% 12 NOK 872m 23 11% 797 23% 721 614 546 443 9 Fees 3 0% Other Income 3% 179 222 Financial Instruments 2012 2013 2014 2015 2016 YTD-16 YTD-17 5%

6 Development in net interest income and interest rate spreads

Average interest rate spreads (%) Net interest income (NOKm)

3.4 3.3 3.4 222 2.9 207 211 201 2.7 2.7 2.6 2.6 2.6 191 2.5 2.4 2.4 2.3 2.2 181 179 Lending 173 174 175 2.0 2.0 2.0 1.9 1.9 1.9 2.0 1.7 146 NIM1)

(0.0) (0.1) (0.2) (0.4) (0.4) (0.5) (0.5) (0.4)

(0.9) Deposit (1.1) (1.1)

Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17

Lending & Deposit Spread Definition: Average customer interest rate against 3-month moving average for 3-month NIBOR. 7 1) NIM = Total net interest income in per cent of average total asset Total expenses YTD 2017 expenses NOK 8m or 8 per cent higher than prior year, mainly driven by the merger with Gjensidige Investeringsrådgivning AS

Total expenses (NOKm) Cost/Income ratio (%)

374 358 359 341 68 66 63 306 57 54 50

43 44

107 98

2012 2013 2014 2015 2016 YTD YTD 2010 2011 2012 2013 2014 2015 2016 YTD 2016 2017 2017 YTD figures are as of March 2016 & 2017

8 Non-performing loans Improved NPL ratio and prudent reserve-building

NPL ratio (%) NPL coverage (%)

1) 2) Gross Outstanding (BNOK) 90 DPD % 90 DPD (MNOK) NPL Coverage % 50.0 1.8 450 140.0

45.0 1.6 400 120.0 40.0 1.4 350

35.0 100.0 1.2 300 30.0 1.0 250 80.0 25.0

0.8 200

60.0

20.0

NOK M

! !

BNOK 0.6 150

-

- 15.0 40.0 NPL NPL Ratio 0.4 100 Coverage 10.0 1.0% 96% 20.0

5.0 0.2 50

90 days pastduedays 90

90+ Ratio % Ratio90+ NPL Coverage % NPL Coverage Gross OutstandingGross - - - -

9 1) NPL Ratio: Non-performing loans / Gross outstanding loans. Non-performing loans are loans >90 days past due, NPL Coverage: Loan loss reserves / Non-performing loans Gross outstanding loans & loan loss development per 31.3.2017

Gross outstanding by product Loan losses (%) 76% of the gross lending are with shared customers from Gjensidige Insurance

Secured 0.84 (car finance) 10%

0.65

Unsecured 9% NOK 42.9bn 0.43 S&P Rating A 0.32 0.32 (covered bond program AAA)

0.20 0.20 0.18

Secured In the first quarter of 2016, the bank sold NOK 14.6 million of impaired customer loans, which led to (mortgage) the release of the provisions for this group of loans. Total write-downs and losses increased 81% compared to the previous year as a result of portfolio growth and changes in credit policy, driving decreased expectations of repayments from delinquent customers. 2010 2011 2012 2013 2014 2015 2016 YTD 2017 YTD 2017 ratio as of March 2017

10 Unsecured: Consumer Loans, Credit Cards and Overdraft facility, Secured: Mortgage, Auto and Stock Finance Earnings performance YTD earnings of NOK 103m, NOK 24m or 31 per cent higher than prior year

Full year earnings and ROE YoY earnings change

Pre-Tax Earnings After-Tax ROE As reported: NOK 24m or 31% 480 Normalised for MtM: NOK 17m or 22% 11.7 13 10.3 10.4 9.6 428 9.3 7 8 380 8.6

8 23 103 6.2 48 280 3.8 304

2.0 254 3 79

180 191

-2 113 80 103 79 67 33 In the first quarter of 2016, the bank sold NOK 14.6 million of -7 (20) impaired customer loans, which led to the release of the provisions for this group of loans. Total write-downs and losses increased compared to the previous year as a result of portfolio growth and changes in credit policy, driving decreased expectations of repayments from delinquent customers. (120) -12 2010 2011 2012 2013 2014 2015 2016 YTD YTD YTD PRODUCT MtM EXPENSES LOSS & YTD 2016 2017 2016 INCOME PROVISIONS 2017

YTD figures are as of March 2016 & 2017 DECREASE EARNINGS 11 INCREASE EARNINGS Quarterly earnings and returns development

Pre-tax earnings (NOKm) Rolling 12 months - ROE (%)

Pre-Tax Earnings - As Reported Pre-Tax Earnings - Excluding MtM Gain / (Loss) Afte-Tax ROE - As Reported Afte-Tax ROE - Excluding MtM Gain / (Loss)

11.8 139 12.0

116 10.0 10.5

103

94 8.0 86 83 78 79 72 71 6.0 62 57 48 50 50 49 43 4.0 38 27 27 2.0

-

J-12 J-13 J-14 J-15 J-16

S-12 S-13 S-14 S-15 S-16

D-11 D-12 D-13 D-14 D-15 D-16

M-12 M-13 M-14 M-15 M-16 M-17

12 Capital development Strong and committed owner to support bank’s growth ambitions

Equity T1 Capital T2 Capital Total Capital Ratio CET1 Ratio • CET 1 Ratio 13.1 per cent - Including retained earnings 13.5 per cent 17.1 16.6 - S&P RAC Ratio 20.7 per cent (as of December 2016) 16.1 4.5 15.0 14.6 13.9 15.0 13.6 13.5 4.0 13.1 • Bank is using the standardized approach for 12.6 calculating risk weighted assets: 3.5 0.45 0.45 - Mortgage book 35%, Unsecured loans 75%, Car Finance 75%, 10.0 Commercial 100% 3.0 0.30 0.30 0.35 2.5 0.29 • Leverage Ratio 6.3% (CRD IV)

0.25 5.0 2.0 • Strong and committed owner to support 1.5 2.8 2.8 bank’s growth ambitions. 2.4 1.0 2.0 - - 2013 Equity Injection NOK 341m (growth & regulatory change) 1.8 - 2015 Equity Injection NOK 120m (growth & regulatory change) 1.3 1.4 0.5 - 2016 Equity Injection NOK 200m (growth & regulatory change) - Retained earnings since start-up has been kept in the bank (no - -5.0 2011 2012 2013 2014 2015 2016 Q1'17 dividend payment)

13 LCR 161% NSFR 113% Loans and funding structure (Mar 2017) (Mar 2017) per 31.3.2017

Balance sheet NOK 47.1bn Liquidity indicators and funding maturity

Deposit / Loan Ratio L1 LCR AVG Funding Maturity Cash & Other Other 180 9.0 Net Bond Portfolio Commercial 161 160 lending 8.0 1.9% Money Market Funding 140 47% 7.0 21.9 bn 120 106 6.0 99 100 Net Household

5.0 Lending 79 88% 80 65 41.6 bn Customer 4.0 Deposit 60 50 46% 3.4 3.0 21.6 bn 40

2.0 20 1.9

Equity & T1 Average maturity funding (years)fundingmaturityAverage

Deposit / Loan Ratio & Liquidity Indicator 1 % & LCR & 1% IndicatorLiquidity & Ratio / LoanDeposit - 1.0 Assets Equity & Liabilities 2011 2012 2013 2014 2015 2016 Q1'17

14 Development in liquidity reserve per 31.3.2017

Liquidity Reserve (BNOK) % of Total Assets 8.0 20 17 • Large liquidity buffer amounting to NOK 5.8 bn 16 and representing 12% of total assets. 7.0 15 13 13 13 12 12 12 6.0 11 11 10 11 10 • Covers debt payments the next 25 months. 10 5.0 • Liquidity reserve placements are managed 4.0 5 through: - SLA with Gjensidige Forsikring 3.0

- - LCR focused investment mandate - NOK limits per counterpart

2.0 - Max 3.5 year average maturity on bond portfolio -5 1.0

4.8 4.5 3.4 3.1 3.3 3.9 4.1 4.7 5.6 5.8 5.9 4.3 5.8 Liquidity Portfolio BNOK Portfolio Liquidity - -10 Assetsof Total % Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17

15 High quality liquidity reserve per 31.3.2017

Liquidity portfolio by asset type Liquidity portfolio distribution

Money Market Bank Deposits Fund 8% 7% 80% Treasury Bills 13%

Muni 3% NOK 5.8 bn

Covered Bond Covered Bond (GBB) 43% 26%

8% 5% 7% 1%

AAA AA Not rated MM Fund Bank

16 Development in deposits per 31.3.2017

Deposit development (NOKbn) Deposit mix

Deposit Balance - BNOK Deposit to Loan Ratio%

25.0 70

21.3 21.6 60 20.0 19.4 Above 2 16.7 50 MNOK 28% 14.9 15.0 40

11.6 NOK 21.6bn

9.8 30 10.0 9.1 Below 2 6.6 MNOK 20 72%

5.0

10 Deposit Balance BNOK Balance Deposit - - Ratio%Loan to Deposit 2009 2010 2011 2012 2013 2014 2015 2016 Q1'17

17 Money market funding and maturity profile per 31.3.2017

Development in market liabilities NOK 21.9bn Maturity profile (NOKm)

Covered Senior T2 & T1 Senior Bond Covered Bond T2 & T1

4% 4% 3% 4% 4% 4% 3%

3% 3% 2% 2% 4%

! 400 400

22%

22% 26% 27% 26% 26% 24% Average 29% 29% 28% 27%

32% 250

100 100

Maturity

3.4 Years

2,700 2,700

3,700 3,700

4,000 4,000

75% 76% 1,832 72% 72% 70% 70% 68% 70% 70%

67% 64% 67%

71 71

1,800 1,800

1,627 1,627

1,300 1,300

1,263 1,263

600 600

1,000 1,000

845 845

400 400

250 250

Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 2017 2018 2019 2020 2021 2022 2023 2024 2025 Currency exposure SEK 800m, 100% of the exposure is hedged. Tier 1 and Tier 2 capital presented at first call date. 18 Gjensidige Bank Group Full year and Q1 financials

Full Year Full Year Million NOK Q1’16 Q1’17 B/(W) B/(W) % B/(W) B/(W) % 2015 2016

Net Interest Income 179 222 44 24% 721 797 76 11%

Total Income 187 243 55 29% 725 872 146 20%

Expenses 98 107 (8) (8%) 359 374 (14) (4%)

Provisioning & Losses 10 33 (23) (222%) 62 69 (7) (11%)

Pre-Tax Earnings 79 103 24 31% 304 328 125 41%

Pre-Tax Earnings (excl. MtM) 78 95 17 22% 337 386 49 15%

Customer Assets 37,716 42,897 5,181 14% 36,735 41,250 4,514 12%

Customer Deposits 20,102 21,601 1,499 7% 19,357 21,270 1,913 10%

Net Interest Margin1) 1.7% 2.0% 24 bps 2.1% 1.9% (27 bps)

After-Tax ROE 9.3% 10.4% 115 bps 10.3% 11.7% 138 bps

Cost / Income Ratio 53% 44% 861 bps 50% 43% 667 bps

1) Net interest margin = net interest income/average total assets

19