INVESTOR PRESENTATION

SPAREBANKEN VEST BOLIGKREDITT AS BERGEN, NORWAY SEPTEMBER 2017 EGIL MOKLEIV, CEO EXECUTIVE SUMMARY . The third largest savings bank in Norway with a strong market position in Western Norway . Capital ratio 18.3 %* - Core Tier 1 ratio 14.7 %* - Leverage ratio 7.2 % at 30 June 2017 Sparebanken Vest . Rated A1 (negative outlook) by Moody’s . Strong asset quality – 76 % total lending to retail customers, of which 95% is residential mortgages . 100% owned and dedicated covered bond subsidiary of Sparebanken Vest . Cover pool consisting of 100 % prime Norwegian prime residential mortgages . High quality cover pool reflected by the weighted average LTV of 53.6 % at 30 June 2017 Sparebanken Vest . Covered bonds rated Aaa by Moody’s with five notches “leeway” Boligkreditt AS . Strong legal framework for covered bonds in Norway . Good position in the well-functioning domestic covered bond market which mitigates refinancing risk . Besides domestic issuances, regular benchmark covered bonds issues in EUR-market . Higher growth ahead. Growth in petroleum investments is finally expected to increase. And while the household consumption is still weak, the consumer confidence is on the rise. . Improved cost competitiveness and increasing mainland export helped by NOK depreciation Norwegian . Low unemployment economy . Long term-rise in housing market is slowing down, but major regional differences . Excellent financial position of the Norwegian government with large budget surplus and the government pension fund accounting for over 300 % of GDP . The most diversified business region in Norway with industrial structure including oil and gas industry, Western Norwegian metal industry, engineering, fisheries, fish farming, shipping, ship building and tourist industry economy . Unemployment in Western Norway is levelling out, and even falling latest months . Still good activity in the housing market.

* With Basel I – floor under transitional scheme 2 SPAREBANKEN VEST SPAREBANKEN VEST

Market Area Brief Information about Sparebanken Vest

. Established in 1823 and listed on Oslo Stock Exchange since 1995

. Norway’s second oldest savings bank

. Third biggest Norwegian-owned bank

. Head office in Bergen, Hordaland

. Thirty-five branch offices in Hordaland, Sogn og Fjordane and Rogaland Sogn og Fjordane Market share*: 17.1% . The Group offers a wide range of services, incl. Hordaland insurance, stockbroking and estate agency activities Market share*: 26.9% . Over NOK 168 billion in assets under management, and Rogaland approximately 270,000 retail customers and 11,700 Market share*: 5.4% corporate customers

. Return on equity target: > 11%

* Market share in retail market 4 KEY DEVELOPMENTS

SECOND FIRST QUARTER HALF-YEAR

PRE-TAX OPERATING PROFIT* NOK 436 MILL. (504) NOK 868 MILL. (826)

RETURN ON EQUITY* 10.7% (15.0%) 10.7% (11.9%)

LOWER COSTS EXCL. RESTRUCTURING NOK 360 MILL. (363) NOK 715 MILL. (728)

LOW LOSSES NOK 21 MILL. (16) NOK 50 MILL. (42)

Corresponding figures for 2016 in brackets * The second quarter 2016 was affected by restructuring costs of NOK 55 mill. and the taking to income of NOK 94 mill. in dividend from sale of VISA

Source: Sparebanken Vest – 30 June 2017 5 STRONG POSITION IN THE RETAIL MARKET - WELL-DIVERSIFIED POSITION IN THE CORPORATE MARKET

Loan portfolio NOK 142.8 bill. Breakdown by sector in the corporate market, NOK 34.4 bill.

> 1 % 2 % > 1 % 3 %

REAL ESTATE 5 % BUILDING AND CONSTRUCTION 5 % AGRICULTURE AND FORESTRY SERVICE 8 % 39 % WHOLESALE AND RETAIL TRADE SHIPPING

12 % ENERGY INDUSTRY HOTELS AND RESTAURANTS

11 % OTHER FINANCIALS 15 % PUBLIC SERVICES

Source: Sparebanken Vest – 30 June 2017 6 LIMITED LENDING TO THE OFFSHORE SEGMENT - INCLUDING SEISMIC SECTOR AND CONSTRUCTION

Loans to the corporate market NOK 33.4 bill. Comments

. Total exposure below NOK 1.303 bill. constitutes approx. 1% of the total > 1 % portfolio 2 % > 1 % 3 % . Offshore mainly comprises construction ships

5 % . Exposure to the offshore sector reduced by NOK 240 mill. last year due to repayment and currency effects 5 % . The biggest commitments have good contract coverage 8 % 39 % Offshore; . Several of the big commitments have already been restructured with long-term 1,365 capital Shipping; 3,680 12 % Overview offshore portfolio

Segment Loans NOK million Number of vessels Construction 713 7 11 % Seismic sector 123 6 15 % PSV 261 2 ERRV 134 5 Barges 72 1 Shipping TOTAL 1,365 21

Source: Sparebanken Vest – 30 June 2017 7 A PERFORMANCE-ORIENTED BANK - RECENT DEVELOPMENTS

Retail market - Lending NOK 108.4 billion Corporate market - Lending NOK 34.4 billion

6.80 % 6.20 %

2.90 % 2.10 %

Q2 Growth lending Growth last 12 months Q2 Growth lending Growth last 12 months

Development in funds under management - NOK bn Equity and profit performance

9,0 13.321 666 + 52 % 8,5

8,0 8.135 437

7,5

7,0

6,5 Equity (MNOK) Profit 1H (MNOK) 6,0 2013 2017 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 2013 2017

Source: Sparebanken Vest – 30 June 2017 8 INCREASED EFFICIENCY - THROUGH COST REDUCTION AND HEALTHY GROWTH

Development in Employees - Full-time Equivalents Costs as % of Average Assets Under Management

803 784 761 1.73 748 1.64 1.46 713 708 697 1.31 1.27 1.2 1.22 1.1 1.06 0.99 0.95 0.91 0.87

Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 YTD

Source: Sparebanken Vest – 30 June 2017 9 STABLE LEVEL OF DEFAULTS *

1.600 5%

1.400

4% 1.200

1.000 3% 1,276 1,321 1,215 1,241 1,218 800

2% 600

400 0.96 % 0.96 % 0.92 % 0.96 % 0.97 % 1%

200 247 238 223 247 243

- 0% Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Retail market Corporate market % of total portfolio

* Includes all defaults, not just defaults of payment. Includes commitments with individual write-downs, 10 calculated as a percentage of the total lending volume. ROBUST PROVISION LEVEL

0,8 % 0.76 % 0.76 % 0.77 % 0.77 % 0.77 % 1200

0,7 % 1000

0,6 % 506 503 800 490 499 0,5 % 505

0,4 % 600

0,3 % 400 Capitalised write-downs (MNOK) Capitalised write-downs Write-downs as % as % of gross lending Write-downs 0,2 % 565 589 510 533 547 200 0,1 %

0,0 % 0 Q216 Q316 Q416 Q117 Q217

Individual write-downs Group write-downs Write-downs as % of gross lendings

11 STABLE OUTLOOK FROM MOODY’S

Main Takeaways

On the 10th of July 2017, Moody’s changed the outlook for Sparebanken Vest’s rating to ‘A1 Negative’ from ‘A1 Stable’. The reason given by Moody’s for the change in outlook is the implementation of the Crisis Management Directive in Norwegian  Moody`s emphasises the bank’s strong regional retail law. franchise, good capital metrics, strong asset quality and resilient earnings performance in 2016. The rating decision affected all Norwegian banks who already had an expectation of government support in times of distress implemented into their ratings.  Emphasis has also been placed on the bank’s strong financial fundamentals and low Loss Given Failure score Bonds issued by Sparebanken Vest Boligkreditt AS are rated by (LGF). Moody’s and have an Aaa rating with stable outlook.

Ratings Quoted from Moody’s

“The negative outlooks were triggered by the proposed legislation introduced to the Norwegian parliament on 21 June 2017 by the Baseline credit assessment Ministry of Finance, to implement the EU's bank recovery and baa1 (BCA) resolution directive (BRRD) and the deposit guarantee scheme directive. If the law proposal is enacted, the rating agency expects Senior Unsecured Debt A1/P-1 (Negative) that Norwegian banks will benefit from a lower probability of government support, which will exert downward pressure on the LT Bank Deposits A1/P-1 (Negative) ratings. Today's rating action signals Moody's intention to more closely align its support assumptions for Norwegian banks to those of its European peers under BRRD resolution framework.” – Moody’s Investor Service, 10 July 2017

Source: Moody’s, Sparebanken Vest, Cicero Consulting 12 CONSIDERABLE EFFECT OF AIRB APPROVAL - FINANCIAL STRENGTH – CORE TIER 1 CAPITAL 18.5%

Basel 1 – floor IRB- AIRB

20% 18.7 % 24% 22.9 % 18.6 % 18.4 % 18.3 % 22.4 % 21.7 % 17.4 % 21.2 % 18% 22% 20.4 % 2.6 % 2.2 % 2.2 % 2.1 % 2.1 % 2.6 % 20% 2.6 % 2.5 % 16% 2.2 % 1.9 % 1.7 % 1.6 % 1.5 % 1.5 % 2.6 % 1.9 % 1.1 % 18% 1.9 % 1.8 % 14% 1.3 % 16% 12% 14% 10% 12%

8% 10% 14.8 % 14.9 % 14.8 % 14.7 % 18.5 % 14.1 % 17.2 % 18.0 % 8% 16.5 % 16.9 % 6% 6% 4% 4% 2% 2% 0% 0% 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 AIRB AIRB corporate corporate portfolio portfolio

13 LOW LENDING RISK AND HIGH EQUITY RATIO - ABOVE REGULATORY REQUIREMENTS EVEN WITH HIGH RETAIL SHARE

Core Tier 1 capital Leverage ratio

18.5

14.8 14.9 14.8 14.7 14.1 7.3 7.1 7.2 6.6 6.1 13.3

Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q2 17 IRB Q2 16 Q3 16 Q4 16 Q1 17 Q2 17

The dashed line represents current CET 1 requirements, includinmg the bank’s Pillar 2 requirements.

14 SPAREBANKEN VEST BOLIGKREDITT AS SPAREBANKEN VEST BOLIGKREDITT AS

Market Area Brief Information about Sparebanken Vest Boligkreditt . Wholly owned subsidiary of Sparebanken Vest - and a dedicated covered bond company

. Revolving credit facility provided by Sparebanken Vest to cover payment obligations in covered bonds for a rolling 12 month period less amounts already disbursed under the facility

. Loans transferred to Boligkreditt as true sale on a non- recourse basis

. Cover pool 100 % prime, Norwegian residential mortgages

. Covered bonds rated Aaa by Moody’s – five notches “leeway”

. Approval from the Norwegian FSA to report capital according to AIRB methods

16 ELIGIBILITY CRITERIA FOR THE COVER POOL

. Employed retail clients and independent self employed individuals Customer criteria . Resident in Norway . No negative credit history

. Probability of default max 1.25% Credit criteria . Not in arrears . Not delinquent – 31 days or loss write-down

. Max LTV 75% Collateral . Recent valuations (less than 3 months) . Quarterly valuation from independent AVM provider

. Primary residences Type of properties . Cooperative housing loans . No holiday homes

. Principal repayment loans Type of products . Revolving credits (flexi-loans) . Fixed and variable rate loans

Source: Sparebanken Vest Boligkreditt 17 COVER POOL (1/2)

Cover pool as of 30.06.2017 Distribution according to LTV (indexed)

Total cover pool NOK 66.6 bn 40% 37,81% Total loan balance (mortgages) NOK 61.8 bn Average loan balance NOK 1,258,000 35% No. of loans 49,052 30% No of properties 42,788 25% WA seasoning (in months) 44 WA remaining terms (in months) 279 20% 16,71% 16,74% WA indexed LTV (based on limits) 55.77% 15,52% 15% WA indexed LTV (on drawn amounts) 53.62% 10,88% Variable rates 94.99% 10% Defaults (Basel) NOK 52.0 m 5% 2,35% OC level (eligible)* 15.0% OC level if house prices drop 20% 8.8% 0% 0 -40 % 40 -50 % 50-60% 60-70% 70-80% >80 % OC % if house prices decline 30% 1.8%

. 100% prime Norwegian residential mortgages . Moody’s TPI of “High” . 7.25% substitute assets in the cover pool . CB rated Aaa with “leeway” of five notches** . 99.92% performing loans . Regulatory minimum OC-requirement: 2.0% . Cover Pool Collateral Score: 5.0%

* Based on hedged value of bonds 18 ** Sparebanken Vest is rated A1 by Moody’s (negative outlook) COVER POOL (2/2)

Geographic Distribution Development in Arrears and Indexed LTV

1,0 % 75%

70%

0,8 % 65% Rest of Norway (4.9%) 60% 0,6 % 55% 30-60 60-90 50% 0,4 % 90 45% LTV (RA) 0,2 % 40% Sogn & Fjordane (6.0%) 35%

0,0 % 30% Hordaland (75.4%) Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 08 09 09 10 10 11 11 12 12 13 13 14 14 15 15 16 16 17

Rogaland (13.7%)

. Properties mainly located in the market area of . Low arrears Sparebanken Vest in Western Norway . LTVs calculated based on limit of flexible credit mortgages . Western Norway has a very diversified industrial structure (i.e. undrawn portion included)

19 MATURITY PROFILE - AMORTISATION OF MORTGAGES VS. COVERED BOND MATURITIES

70

60 Milliarder

50

40

30

20

10

- jun. 17 jun. 17 okt. 18 jun. 18 okt. 19 jun. 19 okt. 20 jun. 20 okt. 21 jun. 21 okt. 22 jun. 22 okt. 23 jun. feb. 18 feb. 19 feb. 20 feb. 21 feb. 22 feb. 23 feb.

Covered Bonds Planned amortisation cover pool Real amortisation cover pool (2,5% Prepayments)*

. Equivalent of EUR 100 mill. mature in the remainder of 2017 . The maturity profile of CBs matches real amortisation in mortgage portfolio in the cover pool

* Refers to prepayment level of 2.5% per month, which is the long term average observed in the cover pool 20 RISK MANAGEMENT - LOW RISK LEVEL

. Credit risk framework is set out in separate document stating which loans can be bought . Board resolution required for any change in credit risk framework Credit risk . Framework requirements: maximum risk level (PD), type of property, objective documented LTV threshold and customer requirements . Credit risk managed by IRB standards

. Currency risk – 100 % hedged by swaps, open limit of MNOK 10 . Interest rate risk – hedged by swaps if any, limit of MNOK 40 (based on 1 % parallel shift in yield curves) Market risk . No investments/placements in “risky” assets; Norwegian government or high quality fixed income securities (so far only rated Norwegian covered bonds investments)

. The law requires positive cash flow from the cover pool to cover bond holders . Soft bullet structure on all covered bonds issued Liquidity risk . Note Purchase Agreement with parent securing that Boligkreditt will be able to meet the next 12 months of maturities at all times

21 NORWEGIAN ECONOMY KEY INDICATORS OF THE NORWEGIAN ECONOMY

2014 2015 2016 2017E 2018E 2019E

Mainland GDP * 2.2 % 1.1 % 0.9 % 2.1% 2.2 % 2.2 %

Private Consumption ** 2.4 %2.1 %1.6 %2,1 %2.3 %2.0 %

Real private investments ** -0.5 % -1.6 % 2.1 % 6.4 % 4.8 % 3.5 %

Oil investments ** -1.7 % -15.0 % -16.4 % -5.2 % 1.0 % 5.1 %

Exports Mainland ** 3.4% 4.8 % -6.0 % 1.1 % 3.8 % 3.6 %

Core inflation * 2.4 % 2.7 % 3.0 % 1.9 % 2.0% 1.8 %

NIBOR (Level) * 1.7 %1.3 %1.0 %1.0 %1.0 %1.2 %

Unemployment, LFS (Level) * 3.5 %4.4 %4.7 %4.5 %4.3 %4.3 %

Source: * Statistics Norway – 21 June 2017, ** Norges Bank – 22 June 2017 23 NORWEGIAN ECONOMY - INTERNATIONAL CONTEXT

GDP Growth, 2000=100 Unemployment

24 LOWER GROWTH - OIL INVESTMENT IS STILL FALLING, BUT LESS THAN EARLIER

Oil Investment Norway, GDP

25 UNEMPLOYMENT IS FALLING - STABILIZING IN WESTERN NORWAY

Norway, Unemployment

26 VARIETY OF EMPLOYMENT - JOBS ARE SPREAD ACROSS A WIDE RANGE OF INDUSTRIES

120000

100000

80000

60000

40000

20000

0

Rogaland Hordaland Sogn & Fjordane

Source: Statistics Norway 27 LABOUR MARKET CONTINUED - LABOUR FORCE DEVELOPMENT

Labour Force and Employment - Norway Labour Force Growth in Western Norway

28 HOUSEHOLDS LESS NEGATIVE

Norge - DetaljhandelIndex of Retail ekskl. Sales motorvogner Forventningsbarometeret,Household Expectations Finans Survey Norge

120.0 5 40

117.5 4 30 115.0 3

112.5 2 20

110.0 1 10 % 107.5 0 Index Index 0 105.0 -1

102.5 -2 -10 100.0 -3 -20 97.5 -4

95.0 -5 -30 2010 2011 2012 2013 2014 2015 2016 2017 2006 2008 2010 2012 2014 2016

Index, VS Y/Y, HS Norge

Kilde: Macrobond/Sparebanken Vest Source: Macrobond/Sparebanken Vest

29 NEGATIVE REAL WAGE GROWTH IN 2016 - LOW GROWTH OUTLOOK DAMPENS CONSUMPTION GROWTH

7

6

5

4

3

2

1

0

-1

ReallønnWages KPICPI

30 NORWEGIAN GOVERNMENT FINANCIALS

Government Net Debt, Estimate IMF Government Pension Fund

31 NORWEGIAN SHOCK ABSORBERS

. Exchange rate

. Pension Fund

. Pension Fund mechanism

. Stable inflation expetations Index . Monetary policy

USD/Barrel . Flexible labour market

. Solid banks

32 THE NORWEGIAN MORTGAGE MARKET NORWEGIAN HOUSING MARKET – KEY FEATURES

. Among the highest in the world - around 80% of households own their own home Home ownership . Buy-to-let market is limited in Norway

. Best social security benefits for unemployed people in the world (according to OECD) Social benefit . On average unemployment benefit approx. 62% of previous salary system . Unemployment benefits paid for minimum of 104 weeks . All interest expenses are tax deductible in Norway Tax incentives . Low effective real estate tax - i.e. approx. 40 pct. of market value . Capital gain on a dwelling is tax-free after one year of occupancy by the owner . Borrowers personally liable for their debt - also after foreclosure/forced sale Personal liability . Strong incentive to service debt reflected in low arrears . Transparent and reliable information about borrowers available to the lenders

. 95% of residential mortgage loans granted by banks . Typical maturity 25-30 years Mortgage lending in . Around 90% of residential mortgages variable rate loans Norway . Banks allowed to increase interest rates with a six weeks notice to the borrower . No “sub-prime” market in Norway

34 HOUSE PRICES - PRICES MORE THAN DOUBLED SINCE 2003

Introduction Nominal House Prices, 2003=100

. Average price increases in 2016: +8.3 %

. Large regional differences

. Prices has come down in Stavanger

. Strong price growth in Oslo + 23%

. Average yearly growth rate of 6.9* percent in period 2003-2016

* Source: NEF Price Statistics 35 HOUSE PRICES - LARGE REGIONAL DIFFERENCES IN NORWEGIAN HOUSE PRICES

Bergen Stavanger Oslo Norway

Price change -0.6 % -0.6 % -2.8 % -1,2 % past month

Price change 0.0 % 1.3 % 6.4 % 4.8 % past 12 months

Price change 24.7 % -4.3 % 44.3 % 30.5 % past 5 years

Time on market 26 85 34 50 (no of days)

Figures as of September 2016

Source: Housing market update – July 2017 – Eiendomsverdi 36 VERY DIFFERENT PRICE DEVELOPMENT - HOUSE PRICES ARE BEGINNING TO RECOVER IN ROGALAND

Norway, Real EstateNorway, Prices, Real All Estate Residential Prices Buildings, Index

30

25

20

15

10 % 5

0

-5

-10

-15 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Hordaland Oslo Rogaland Total

Source: Macrobond/Sparebanken Vest

37 LONG TERM OVERVIEW OF HOUSE PRICES - HIGH ECONOMIC GROWTH CONDUCIVE TO RISING HOUSE PRICES

House Prices Deflated with Gross National Disposable House Prices Deflated with CPI Growth, 2000 = 100 Income per Capita, 2000 = 100

250 250 Sweden 225 225

200 200

175 Norway 175

150 150

125 Denmark 125

100 100

United States 75 75 2000 2002 2004 2006 2008 2010 2012 2014 2016 Source: Macrobond/Sparebanken Vest

. House prices in Norway correlate highly with increase in wages and disposable income

38 SUPPLY OF HOUSING IS LIMITED

Population Growth, Western Norway Construction Activity, Norway

. Immigration and demographic changes drive up demand for housing in most major cities . New dwellings too low to match the increased demand for houses . Continued low interest rates are important factors for price increases

39 CONTACT DETAILS / MORE INFORMATION

Egil Mokleiv, Managing Director/CEO, Sparebanken Vest Boligkreditt AS . Mobile: +4795265976 . E-mail: [email protected]

Fredrik Skarsvåg, COO, Sparebanken Vest Boligkreditt AS . Mobile: +4798857275 . E-mail: [email protected]

Websites for more information

Sparebanken Vest Boligkreditt https://www.spv.no/om-oss/investor-relations/sparebanken-vest-boligkreditt

Sparebanken Vest www.spv.no

Web-site for the Norwegian Covered https://www.finansnorge.no/en/covered-bonds/ Bonds Market

40 DISCLAIMER

This material does not constitute an offering circular in whole or part and you must read the actual offering circular related to the Covered Bond program and the notes which may be

issued from time to time thereunder as referred to in this material (respectively the"Program" and the “Notes”) before making an investment decision. The offering circular for the

Program is available from the Arrangers. You should consult the offering circular for more complete information about Sparebanken Vest Boligkreditt and the Program. The Notes

are not to be offered or sold in any jurisdiction in circumstances in which the distribution of this document or the Notes would be prohibited in such jurisdiction. This document must

not be acted on or relied on by persons who are not eligible to invest in the Notes. Any investment or investment activity to which this communication relates is available only to

person's eligible to invest in the Notes and will be engaged in only with such persons. By electing to receive this transmission, you represent, warrant and agree that you will not

attempt to reproduce or re-transmit the contents of this presentation by any means. By receiving this presentation, each recipient (i) acknowledges that the offering is being made

only outside the United States to non-U.S. persons in reliance upon Regulation S under the U.S. Securities Act Of 1933 and (ii) is deemed to represent that it is not a U.S. person

within the meaning of Regulation S and is not accessing the presentation from a location within the United States.

In addition, institutions mentioned in this material, affiliates, agents, directors, partners and employees may make purchases and/or sales of the Notes as principal or agent or may

act as market maker or provide investment banking or other services in respect of the Program or the Notes which may be issued from time to time thereunder. Sparebanken Vest

Boligkreditt, Sparebanken Vest, the Arrangers and the Dealers and their respective affiliates, agents, directors, partners and employees accept no liability whatsoever for any loss

or damage of any kind arising out of the use of all or any part of this material. Although the statements of fact in this presentation have been obtained from and are based upon

sources that Sparebanken Vest Boligkreditt believes to be reliable, no representation or warranty, either expressed or implied, is provided in relation to the accuracy,completeness

or reliability of the information contained herein. All opinions and estimates included in this presentation constitute Sparebanken Vest Boligkreditt’s judgement, as of the date of this

presentation and are subject to change without notice and Sparebanken Vest Boligkreditt is not under any obligation to update or keep current the information contained herein. This

presentation is the property of Sparebanken Vest Boligkreditt.

41