Sandnes Sparebank Towards 2020

2 • Sandnes Sparebank towards 2020 • Summary of the 1st Quarter Results • Focus forward and estimates for 2018 Market and Customer Base Organization The Largest Bank in the Eika Alliance

• Customer base of 40,000 retail customers • 140 years of banking operations • Cost efficiency and 5,000 businesses • 135 man years • Modern, safe and profitable payment • Our home market consists of nine solutions municipalities in Rogaland: Sandnes, • SSB Boligkreditt was established in 2008 • Gjesdal, Stavanger, Time, Klepp, Sola, as a wholly owned subsidiary of SADG. Asset management, insurance, credit Randaberg, Hå and Bjerkreim The goal is to secure long-term funding cards, car loans and leasing for the bank by issuing covered bonds • The home markets covers in total • IT and infrastructure 300,000 people and 26,000 businesses • Sandnes Sparebank owns 60% of AKTIV Eiendomsmegling Jæren

Branches

I Sandnes: Rådhusgata 3

II Stavanger: Haakon VIIs gate 7

III Oslo: Haakon VIIs gate 6

4 •

•

1 Sandnes Sparebank 8,0 % 2 Obos Bbl 6,3 % 3 Totens Sparebank 5,3 % 4 Jæren Sparebank 4,6 % Sales, portfolio, know-how and Products, commissions, dividend, capital services, systems and training 5 Jernbanepersonalets Sparebank 2,9 % 6 Lillestrøm Sparebank 2,9 % 7 Aurskog Sparebank 2,7 % 8 Skue Sparebank 2,7 % 9 Skagerak Sparebank 2,6 % 10 Sparebanken Narvik 2,5 %

•

Customer growth Profitability

Customer value

Customer experience

Market awareness Very satisfied customers Profitable growth and a strong reputation

Competent, committed Return on equity and performance focused above average employees Trine Karin Stangeland CEO

Erik Kvia Hansen Magnar Oanes Tomas Nordbø Middelthon Lene Nordahl Ingrid O. Fure Schøpp Director Retail Director Corporate CFO Director Customer Relations Head of Communication

Increased net interest margin og strong cost control. Earnings in line with guiding for 2018 Non-perfoming and doubtful loans down 32%

Well capitalised. Strong focus on marketing and branding. Growth in both depoits and loans last to quarters

Increased customer satisfaction. Growth in volume on Eika Products. Improvement in service to certain customer groups (segmentation) Internal culture development – customers come first, always

Giving back to society. Dedication to create activity and inspiration in our local market. Sponsoring «Folk» a managment focused conference for regional businesses Sponsoring play by Tore Renberg / Thomas Dybdal at Stavanger Theatre

12 115

250

95 197 200

75 169 171 63

150 129 55 47 49

38 100

26 50

0 -5 4Q16 1Q17 2Q17 3Q17 4Q17 2013 2014 2015 2016 2017

-50

-74 -100

• EPS last quarter at NOK 1.1 • EPS at NOK 5.6 YTD, up from 4.8 in 2016

13 1,84% 1,85% 1,82% 1,81% 1,78% 1,78%

1,65% 1,63% 1,64% 1,60%

1Q17 2Q17 3Q17 4Q17 1Q18 2013 2014 2015 2016 2017

14 Estimate:

80 450 406 68 70 67 68 400 65 64 350 330 60

300 287 288 50 269

250 40

200

30 150

20 100

10 50

0 0 1Q17 2Q17 3Q17 4Q17 1Q18 2013 2014 2015 2016 2017

• Cost in 2018 are expected to be equal to or lower than in 2017

15 9,5 %

7,3 % 7,3 % 8,6 %

0 7,3 % 7,5 % 5,6 % 6,2 %

0 4,1 %

0 4Q16 1Q17 2Q17 3Q17 4Q17 2013 2014 2015 2016 2017

0 -3,5 %

16 Increased net interest margin og strong cost control. Earnings in line with guiding for 2018 Non-perfoming and doubtful loans down 32%

Well capitalised. Strong focus on marketing and branding. Growth in both depoits and loans last to quarters

Increased customer satisfaction. Growth in volume on Eika Products. Improvement in service to certain customer groups (segmentation) Internal culture development – customers come first, always

17 Target:

18% 18% 16,6 % 16,8 % 16,6 % 16,1 % 16,2 % 15,8 % 15,6 %

15% 15% 14,5 % 12,1 % 11,6 % 12,0 % 12% 12%

9% 9%

6% 6%

3% 3%

0% 0% 1Q17 2Q17 3Q17 4Q17 1Q18 2013 2014 2015 2016 2017 CET1 FSA min. req

• Regulatory minimum requirement increased from 14% til 14.5% per EOY 2017 • Growth capacity of NOK 3bn within target CET1-ratio • Assuming unchanged mix between retail and corporate lending

4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18

1,3 %

0,02 0 -0,3 % 1,3 % -1,8 % -1,7 % 5,00 % -3,1 % 0 -4,4 % -0,1 % -0,05 -4,4 % 1,4 % -6,6 % -6,5 % -7,1 % 0,00 % -0,02 0,2 %

-0,1 -3,4 % -3,5 % -0,04 -4,2 % -4,2 % -4,8 % -5,00 % -4,7 % -5,2 % -5,4 % -0,15 -6,4 % -5,6 % -0,06 -5,9 % -7,5 % -7,8 % -6,5 % -8,8 % -6,9 % -10,00 % -0,2 -0,08

Group Retail Corporate

-0,1 -0,25 -15,00 %

• Growth in gross lending last quarter of 0.4% • Growth in gross lending of 1.3% last 12 months • Retail volume up by 60mn (0.4%) • Retail lending increased by 187mn (1.3%) • Corporate volume up by 28mn (0.4%) • Corporate lending increased by 105mn (1.4%)

25 174,4 48,1

6,9 26,8 33,1 3,5 46,7 122,9 13,3 8,0 23,2 27,1 86,7 84,7 18,5 19,6 32,5 14,9 11,5 6,0 0,7 6,2 6,6 23,0 26,2 53,9 61,9 2,0 24,5 1,0 53,9 14,0 50,9 13,5 13,1 12,0 61,1 58,7 0,0 -0,00,8 0,0 39,0 20,4 27,0 -0,3 1Q17 2Q17 3Q17 4Q17 1Q18 2013 2014 2015 2016 2017 -49,9

Other operating income Other operating income Change in value currency and securities Change in value currency and securities Net commission income Net commission income Dividend and income securities (variable yield) Dividend and income securities (variable yield)

• Stable credit spreads results in lower contribution from fixed income • Pressure on transaction related fees • Increased volume related to savings and isurance, but reduced margins

From 2016 forward dividend and income from securities is mainly Aktiv Eiendom (RE Agent) 26

• Sub-division within Retail, 4 financial advisors + 1 leader • A service offered by Sandnes Sparebank under a separate brand, logo and domain

• A provider of financing to external customers who cannot get financing in ordinary

• National provider of financing, focused on the markets in and around the larger cities, with well functioning housing markets

• Restucturing of householdsw in a difficult situation, often caused by credit card debt or other consumption related debt. Financing provided secured on residential property within 85% LTV

• Established with the purpose of enterering a growing and profitable segment within retail

• Positive contribution to profitable growth • Started in 2015, careful growth to gain experience • Per 1Q18 NOK 500mn approx. • Target of NOK 800mn by end of 2020(max 7% of retail) • Expected loss around 1%, so far no realised losses, high loan loss provisions (2,3%) • Selective in acceptance of customers, tight follow-up process, risk-based pricing • Average lending margin is 6.8% • Default ratio, 90 days, at 8.4% Increased net interest margin og strong cost control. Earnings in line with guiding for 2018 Non-perfoming and doubtful loans down 32%

Well capitalised. Strong focus on marketing and branding. Growth in both depoits and loans last to quarters

Increased customer satisfaction. Growth in volume on Eika Products. Improvement in service to certain customer groups (segmentation) Internal culture development – customers come first, always

«Veldig fornøyd med en lokal bank med direkte kontakt hvor en har personlig oppfølging og dialog».

Positivt svar fra Finanstilsynet 26.01.2018

• Sandnes Sparebank is the second bank in Norway that distributes customer dividends

• Customers’ share of the distribution depends on the banks profit and on how much they have in deposits and loans

• Includes all customers: retails, corporates and organizations

• Customers share of distribution is in line with the core values of a savings bank

• We will continue to distribute gifts to charitable purposes from Sandnes Sparebank’s Gift Fund

38 Increased net interest margin og strong cost control. Earnings in line with guiding for 2018 Non-perfoming and doubtful loans down 32%

Well capitalised. Strong focus on marketing and branding. Growth in both depoits and loans last to quarters

Increased customer satisfaction. Growth in volume on Eika Products. Improvement in service to certain customer groups (segmentation) Internal culture development – customers come first, always

42 43

• • • • • • • Estimate 2018 per 08.02.18 Estimate 2018 per 09.05.18 275 NOKm 275 NOKm

50-90 NOKm 50-80 NOKm

> 15,2 % > 15,2 %

≤ 50 % ≤ 50 %

47 • • • • 30

23,9 25 23,3 22,8 21,5 21,5

20 33 % 34 % 33 % 33 % 33 %

10 67 % 66 % 67 % 67 % 67 %

0 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 Retail Corporate

49 180

170

160

150

140

130

120

110

100

sep.10 sep.11 sep.12 sep.13 sep.14 sep.07 sep.08 sep.09 sep.15 sep.16 sep.17

mar.07 mar.08 mar.09 mar.10 mar.15 mar.16 mar.17 mar.18 mar.11 mar.12 mar.13 mar.14

Vestlandet Stavanger m/omegn Norge

Kilder: Eiendomsverdi 50 40% 80,0 %

70,0 % 65,7 % 65,0 % 64,2 % 59,6 % 60,9 % 60,0 % 23%

17% 50,0 % 15%

40,0 % 6%

0,4 % 30,0 %

< 60% 60-75% 75-85% 85-100% >100% Unsecured 20,0 % 2013 2014 2015 2016 2017

• 63% with LTV below 75% • Propery prices have declined 2-3% over the last 12 months, but the decline is • 80% with LTV below 85% less than the customers’ down payments • For a number og loanse the drop in house prices drove LTV above 85% after • New loans given in general have an LTV above the weighted average of the being granted excisting portfolio

Note(*): Gjennomsnittlig LTV er volumvektet 51 29% 26% 6 % 4 % 5 % 5 % 8 % 24 % 22 % 24 % 26 % 21 % 17%

11% 9% 8,7 % 68 % 70 % 67 % 70 % 67 %

< 1 mill 1-2 mill 2-3 mill 3-4 mill 4-5 mill > 5 mill 2013 2014 2015 2016 2017

Lowest Low Medium High Highest

Expected Loss, Expected Loss, lower limit upper llimit Lowest Low Medium High Highest

52 19 % 26 % 28 % 24 % 36 % Commercial real estate 52,1 % 42 % 50 % 51 % 49 % 41 % Buidling & construction 15,2 % 27 % 25 % Other* 17 % 17 % 17 % 7,6 %

Public and 2013 2014 2015 2016 2017 private Oil & gas services Lowest Low Medium High Highest 0,5 % 16,6 %

Farming 3,9 % Retail services 4,1 % Expected Loss, Expected Loss, lower limit upper llimit Lowest Low Medium High Highest

53 96 % 3,1 2,9 3,0 3,0 3,0 3,1 77 % 3,1 2,8 2,7 64 % 2,4 2,5 46 % 2,2

1,7 37 %

1,3 24 % 1,1 23 % 12 %

0,7 0,7 12 % 10 % 0,4 0,4 0,3 1Q17 2Q17 3Q17 4Q17 1Q18 2013 2014 2015 2016 2017

Large Exposures Total capital Large exposure/total capital Large Exposures Total capital Large exposure/total capital

• Large exposures are regulatory defined as exposures > 10 % of total capital (MNOK ~ 300). As per 1Q18 one customer is defined as large, in total MNOK 307

54 5,3 5,0 5,1 25 26 5,0 4,8 4,8

4,5 23 24 4,6 4,5 4,3 4,3 4,3 22 4,1 4,0 4,1 3,8

3,5 3,3 18

2,8 16 2,7 3,0 15 15 14 14 2,5 2,4 2,3 14 2,7 2,5 1,9 1,8 1,9 2,5 12 1,7 2,4 1,6 2,2 1,5 2,0 10 1,3 2013 2014 2015 2016 2017 1K18 2013 2014 2015 2016 2017 Volum > MNOK 100 # > MNOK 100 Volum < MNOK 50 Volum MNOK 50 - MNOK 100 Volum > MNOK 100

• Continued reduction in loans above MNOK 100 • The bank continues to reduce the concentration risk on the corporate loan book

# lån og volum basert på enketlstående engasjement, ikke Basel II-gruppering 55 Kilde: Eiendomsmegler 1 Næringseiendom Stavanger 56 • Signs of rental prices bottoming out in fringe and oil related areas • CBD Stavanger and Sandnes are doing relatively well • On the other hand, with a high level of available office space it will take time • Available office space in Forus strongly influenced by Statoil’s consolidation of office space before rents start to increase again, both in CBD and fringe areas

Kilde: Eiendomsmegler 1 Næringseiendom Stavanger 57 Kilde: Eiendomsmegler 1 Næringseiendom Stavanger 58 •

Commercial real estate 52,1 % •

Buidling & construction Other* 15,2 % • 7,6 %

Public and private Oil & gas services 0,5 % 16,6 % •

Farming 3,9 % Retail services 4,1 %

Note(*): andre sektorer = (industri + hotell & restaurant + transport) 59 75 % Commercial Other 73 % 73 % 72 % building 9,0 % 68 % Land building 3 % 3 % 5,8 % 9 % projects 9 % 11 % 9 % 0,9 % 8 % 5 % 7 % Housing 10 % 8 % 7 % 12 % 6 % building 8 % 8 % projects 7 % 9,1 %

Housing rental Commercial rental 48 % 45 % 11,7 % 63,5 % 41 % 37 % 40 %

2013 2014 2015 2016 2017 Rental, CRE Rental, Residential Construction, Residential Other Contruction, CRE

60 EAD (MNOK) WA lease length WA occupancy Rental, resi 297 N/A N/A Retail 285 10,0 100 % Mixed use 1.118 8,7 99 % Office 176 1,8 77 % Other 65 10,0 100 % Dev. Residential 317 N/A N/A Dev. CRE 307 1,5 73 % Total 2.566 6,3 93 %

EAD (MNOK) WA lease length WA occupancy < 60% 381 10,5 99 % 60-80% 1.563 4,3 92 % >80% 622 8,7 93 % Total 2.566 6,3 93 %

• • • • • •

61 EAD (MNOK) WA lease length WA occupancy Forus/Lura 1.391 5,6 90 % Sola 249 9,4 99 % 54,2 % Sandnes 196 5,0 96 % Stavanger 109 17,6 100 % Stavanger fringe 158 3,9 94 % Sør-jæren 173 9,6 98 % Larvik 72 6,3 93 % Oslo 145 0,1 93 % Oslo fringe 74 4,3 100 % Total 2.566 6,3 93 %

EAD (MNOK) WA lease length WA occupancy 9,7 % 7,6 % Bullet 529 4,0 93 % 6,2 % 6,8 % 5,6 % 4,3 % 2,9 % 2,8 % Partial bullet, straight line 1.558 7,4 97 % Straight line, downpaym. 162 2,5 56 % Forus/Lura Sola Sandnes Stavanger Stavanger Sør-jæren Oslo Oslo Larvik Custom 317 6,3 93 % randsoneFringe randsoneFringe Total 2.566 6,3 93 %

• •

• 62 EAD (MNOK) WA lease length WA occupancy Mixed use 693 8,8 100 % Office 176 1,8 77 % 49,8 % Rental, residential 59 N/A N/A Retail / shopping 49 4,0 100 % Development, resi 107 N/A N/A Development, CRE 307 1,5 73 % Totalsum 1.391 5,6 90 %

22,1 %

EAD (MNOK) WA lease length WA occupancy 12,7 % < 60% 335 11,2 100 % 7,7 % 4,2 % 3,6 % 60-80% 943 4,1 89 % >80% 113 1,5 72 % Totalsum 1.391 5,6 90 % Mixed use Office Rental, Retail / Development, Development, residential shopping resi CRE

• •

•

• •

63 Estimate:

0% 0,98 % 1% 0%

0% 1%

0% 0,49 % 1% 0% 0,09 % 0,09 % 0,09 % 0,09 % 0,33 % 0% 234 0% 20 19 20 19 0,06 % 0% 0,16 % 0,10 % 0% 13 0% 112 72 0% 0% 39 22 0% 0% 1Q17 2Q17 3Q17 4Q17 1Q18 2013 2014 2015 2016 2017

Losses on loans Losses in % of gross lending Losses on loans Losses in % of gross lending

• Losses on loans and guarantees amount to MNOK 19 in Q1 • Loss-absorbing capacity vs. target CET1-ratio (15.2%) is MNOK 280 w/o accounting for • Realised losses are MNOK 54 YTD profits • Indiviual write-downs are reduced by MNOK 42 • Collective provisions have been increased by MNOK 6

64 2,57 % 2,32 % 2,24 % 2,38 % 2,34 % 2,16 % 2,16 % 1,97 %

1,45 % 548

507 1,05 %

494

463

554

314

481

463

459 240

1Q17 2Q17 3Q17 4Q17 1Q18 2013 2014 2015 2016 2017 Net non-performing and doutbful loans Net non-performing and doutbful loans Net non-performing and doubtful loans in % of net lending Net non-performing and doubtful loans in % of net lending

• Generally more favourable macroeconomic conditions in the region • Restucturing of certain exposures contribute to a reduction in non-perfoming loans

65 2900000 0,175

18% 0,17

16,6 % 16,8 % 2700000 40.365 16,1 % 16,2 % 15,8 % 2.580.704 17,1 %

0,165 15% 16,8 % 14,5 % 2500000

0,16

12% 15,2 %

2300000 287.000 14,5 % 0,155

9% 105.000

0,15

2100000

6% 0,145

1900000

0,14

1700000

0,135

1Q17 2Q17 3Q17 4Q17 1Q18 1500000 0,13 CET1 1Q18 After Tax Earnings 1Q18 Buffer to internal target Buffer to regulatory req. CET1 FSA min. req

• Regulatory minimum requirement increased from 14% til 14.5% per EOY 2017 • Continued strategy to reduce large exposures and strengthen SME

• Loss-absorbing capacity is NOK 390mn before CET1 reaches 14.5%

Note(*): kort = 0-5 år ¤ medium = 5-10 år ¤ lang = 10+ år 66 67 3.500 3.320 -

3.000

2.499.000 2.629 2.266 - 2.500 1.956 2.000 1.999.000 1.850 2.030 1.590 2.000 1.776 1.770 100 - 1.650 1.499.000 225 425 1.500 1.053 900 928 999.000 878

1.000 1.000 1.505 489 1.320 499.000

500 97 870 979 551

357 -1.000

0 1K18 2K18 3K18 4K18 1K19 2K19 3K19 4K19 1K20 2018 2019 2020 2021 2022 2023+ Free Liquidity Liquidity facility Norwegian Central Bank Liquidity buffer Bonds and certificates Covered bonds Subordinate loans

68 Domestic Domestic 72% Financial Gov't Bills Industriesinstitutions Domestic Foreign Municipalities Foreign Municipalities (RW20) Covered Bonds (RW0) Gov't Guaranteed

20% Domestic 2% Covered Bonds 6%

AAA AA A BBB

69 This presentation has been prepared solely for promotion purposes of Sandnes Sparebank. The presentation is intended as general information and should not be construed as an offer to sell or issue financial instruments. The presentation shall not be reproduced, redistributed, in whole or in part, without the consent of Sandnes Sparebank. Sandnes Sparebank assumes no liability for any direct or indirect losses or expenses arising from an understanding of and/or use of the presentation. 71 Data: Akershus Eiendom / Eiendomsmegler 1 Næringseiendom 16,0 % 5

14,0 % 9 12,0 % 11,90 % 8 10,0 %

8,0 % 9

6,0 % 20 4,0 % 7

2,0 % 2

0,0 %

2005 2007 2009 2011 2013 2015 2017 2006 2008 2010 2012 2014 2016 2018 2004 DNB Næringsmegling / EM1 Næringsmegling

• Signs of rental prices bottoming out in fringe and oil related areas • Sen CBD Stavanger and Sandnes are doing relatively well • On the other hand, with a high level of available office space it will take time before • Available office space in Forus strongly influenced by Statoil’s consolidation of office rents start to increase again, both in CBD and fringe areas space

Kilde: Akershus Eiendom, Eiendomsmegler 1 Næringseiendom Stavanger, DNB Næringsmegling 72 1 1 81% 1 49% 1 47% 45% 45% 1 41% 59% 0 1 53%

1 47% 45% 0

0 0

0 0 1Q17 2Q17 3Q17 4Q17 1Q18 2013 2014 2015 2016 2017

• Increase in cost-to-income due to reduction in income from fixed income investments carried at fair value (liquidity reserve portfolio)

73 20,0 80,0 17 72 18,0 16 16 68 60,0 16 10,0 70,0 66 2,6 66 0,6 14 2,1 59 5,9 16,0 1,9 0,6 0,7 0,6 5,6 2,5 1,4 3,9 4,1 1,2 1,5 60,0 6,2 40,0 1,0 - 1,0 14,0 2,2 5,5 5,6 1,1 0,8 4,0 3,9 0,6 11,9 2,6 0,9 1,4 50,0 4,8 12,0 2,8 2,6 11,7 13,6 10,7 20,0 1,0 -10,0 2,7 11,9 10,0 2,5 40,0 -20,0 - 8,0 30,0

6,0 -30,0 47,5 -20,0 11,4 43,4 10,8 10,8 20,0 41,1 42,8 9,8 37,1 4,0 8,5

-40,0 -40,0 10,0 2,0

- -50,0 - -60,0 1Q 2017 2Q 2017 3Q 2017 4Q 2017 1Q 2018 2013 2014 2015 2016 2017 Product Distribution Insurance Sales Product Distribution Insurance Sales Financial Instruments (asset mgt. and sales) Guarantees Financial Instruments (asset mgt. and sales) Guarantees Transaction Services Transaction Services

• Reduced margins from payment and transaction services • Increased volume in savings and insurance, but reduced margins • Reduced income due to lower volume of guarantees

74 12% 12%

9,83 % 10,04 % 10,06 % 9,70 % 9,75 % 9,67 % 9,62 %

9% 9%

7,37 % 7,64 % 7,05 %

6% 6%

3% 3%

0% 0% 1Q17 2Q17 3Q17 4Q17 1Q18 2013 2014 2015 2016 2017

75 20 20

18 18

16 16 14,6 14,3 14 14 11,4 12 11,1 10,9 10,7 10,9 11,0 12 10,9 10,9

10 10

8 8

6 6

4 4

2 2

0 0 1Q17 2Q17 3Q17 4Q17 1Q18 2013 2014 2015 2016 2017

76 30 30

25 23,9 25 23,3 22,8 21,3 21,3 21,1 21,5 21,6 21,5 21,5

20 20

15 15

10 10

5 5

0 0 1Q17 2Q17 3Q17 4Q17 1Q18 2013 2014 2015 2016 2017

• 0.6% growth in net lending to customers QoQ • 1.4% growth in net lending to customers YoY

1% 0,32 %

0% 0,29 %

0,27 %

0,20 %

0,17 %

3,60 3,60 %

3,59 3,59 %

3,56 3,56 %

3,47 3,47 % 0,10 %

3,46 % 3,46 0%

0,06 %

0,05 %

0,06 %

3,18 3,18 %

- 3,14 % 3,14

3,05 3,05 % 0% 3,02 3,02 %

0,15 %

0,14 %

0,12 % 0,12 %

0,11 % 0,09 %

0% 0,02 %

0,02 % 0,02 %

- -

-1%

2,26 %

2,16 %

2,19 %

2,02 %

2,11 % 2,08 %

1,97 % -1%

1,98 % 1,95 % 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18

Lending margin retail Lending margin corporate Deposit margin retail Deposit margin corporate

78 2% 2% 1,85 % 1,87 % 1,80 % 1,73 % 1,73 % 1,74 % 1,80 % 1,64 % 1% 0,76 % 0,87 % 1% 85 107 112 115 109 110 0% 116 107 0%

-1%

-1% -2% 69 348 284 -2% 67 297 -3% 260 260 263 243 284

-3% 139 -4% 112

-4% -5% 1Q17 2Q17 3Q17 4Q17 1Q18 2013 2014 2015 2016 2017 Collective write-downs Collective write-downs Individual write-downs Individual write-downs Total write-downs in % of gross lending Total write-downs in % of gross lending

79 52% 51% 51% 51% 51%

57 % 43 %

Deposits Retail Deposits Corporate

1Q17 2Q17 3Q17 4Q17 1Q18

80 Pris Volum 20 largest owners of equity certificates as at 31.03.2018 No. of equity certificates Share 65 400.000 1. Sparebank 1 SR-Bank C/O SR-Investering 3.485.009 15,14 % 2. Merrill Lynch 2.270.083 9,86 % 350.000 3. AS Clipper 1.088.738 4,73 % 60 4. VPF EIKA Egenkapital C/O Eika Kapitalforvaltning 923.776 4,01 % 5. Espedal & Co AS 886.861 3,85 % 300.000 55 6. Wenaasgruppen AS 650.000 2,82 % 7. Salt Value AS 475.000 2,06 % 250.000 8. Sparebanken Vest Aksjer 425.790 1,85 % 50 9. Skagenkaien Investering AS 350.000 1,52 %

200.000 10. Nordhaug Invest AS 309.957 1,35 % 11. Meteva AS 261.881 1,14 % 45 12. Kristian Falnes AS 260.000 1,13 % 150.000 13. Grunnfjellet AS 217.000 0,94 % 14. Velde Holding AS 204.353 0,89 % 40 100.000 15. Bergen Kommunale Pensjonskasse 200.000 0,87 % 16. MP Pensjon 196.726 0,85 % 35 17. Innovemus AS V/Oskar Bakkevig 185.000 0,80 % 50.000 18. Barque AS 159.651 0,69 % 19. Tirna Holding AS 156.255 0,68 % 30 0 20. Parra Eiendom AS 150.000 0,65 %

Sum 12.856.080 55,86 %

jun. 17 jun.

okt. 17 okt.

feb. 17 feb. feb. 18 feb.

apr. 17 apr. apr. 18 apr.

des. 16 des. 17 des. aug. 17 aug. SADG VOLUME SADG OSEEX (rebased) OSEBX (rebased)

81 Fitch Ratings-London-09 October 2017:

Fitch Ratings has affirmed SpareBank 1 Nord-Norge's (SNN) Long-Term Issuer Default Rating (IDR) at 'A', SpareBank 1 SMN's (SMN) and SpareBank 1 SR-Bank's (SR) Long- Term IDRs at 'A-', and Sandnes Sparebank's Long-Term IDR at ‘BBB'.

The Outlooks on all Long-Term IDRs are Stable.

Sandnes Sparebank: Long-Term IDR affirmed at 'BBB'; Outlook Stable Short-Term IDR affirmed at 'F3' Viability Rating affirmed at 'bbb' Support Rating affirmed at '5' Support Rating affirmed at 'No Floor'

82 Definition of Key Figures

Rate of deposits to loans Return on equity after tax

OB net loans to customers / OB deposits from customers (Operating profit after taxes / days in the period x days in a year) / ((OB total equity + IB total equity) / 2 Liquidity coverage ratio (LCR) Equity certificate capital in % of equity Liquid assets / net liquidity output within 30 days in a stress scenario (Equity certificate capital + own equity certificate + share premium + dividend Interest margin equalisation reserve) / (Equity certificate capital + own equity certificate + share ((Net interest income / days in the period) x days in a year) / average total premium + dividend equalisation reserve + savings bank`s fund + gift fund) assets Earnings per equity certificate Interest margin incl. fee to the Norwegian Investor Compensation Scheme (Operating profit after taxes x equity certificate capital in % of equity) / number of ((Net interest income incl. fee to the Norwegian Investor Compensation equity certificates Scheme / days i period) x days in a year) / average total assets Book value per equity certificate Cost / income ratio OB total equity x equity certificate capital in % of equity / number of equity certificates Total operating costs / (net interest income + total other operating Price / Book (P/B) revenues) Market price / book value per equity certificate Costs as a percentage of average total assets Operating profit before write downs and taxes ((Total operating costs / days in the period) x days in a year) / average total assets Operating profit after tax + tax cost + write downs on lening and guarantees Return on equity before tax

(Operating profit before taxes / days in the period x days in a year) / ((OB total equity + IB total equity) / 2

83 This presentation has been prepared solely for promotion purposes of Sandnes Sparebank. The presentation is intended as general information and should not be construed as an offer to sell or issue financial instruments. The presentation shall not be reproduced, redistributed, in whole or in part, without the consent of Sandnes Sparebank. Sandnes Sparebank assumes no liability for any direct or indirect losses or expenses arising from an understanding of and/or use of the presentation.