Gjensidige NOR ASA Kirkegata 18, P.O. Box 1172 Sentrum, N-0107 Oslo Telephone: (+47) 22 31 90 50 www.gjensidigenor.no/investor/english Annnnuualal RepRepooorrt Gjensidign gee NOR ASA 2002 Annua l Report Gjensi d ige NOR ASA 200 ige NOR ASA 2 Contents Contacts 1 Financial summary Gjensidige NOR ASA Gjensidige NOR Kapitalforvaltning AS OTHER UNITS President and CEO: Olav Hytta Managing Director: Erik Garaas Cresco 2 Gjensidige NOR ASA Head offi ce: Kirkegata 18, Oslo Offi ce address: Drammensveien 288, Managing Director: Roar Dybvik Postal address: P.O. Box 1172 Sentrum, Lysaker Offi ce address: Klæbuveien 194, N-0107 Oslo Postal address: P.O. Box 276, Trondheim 3 Highlights 2002 Telephone: +47 22 31 90 50 N-1326 Lysaker Postal address: N-7483 Trondheim Telephone: +47 22 96 80 00 Telephone: +47 73 58 79 00 4 President and CEO Gjensidige NOR Sparebank ASA President and CEO: Olav Hytta Gjensidige NOR Næringseiendom AS Vika Bank 5 Report of the Board of Directors Offi ce address: Kirkegata 18, Oslo Managing Director: Halvard Bergby Managing Director: Kjell Sletner Postal address: P.O. Box 1172 Sentrum, Offi ce address: Drammensveien 288, Offi ce address: Olav V ’s gate 5, Oslo N-0107 Oslo Lysaker Postal address: P.O. Box 1172 Sentrum, 15 Financial Statements Telephone: +47 22 31 90 50 Postal address: P.O. Box 276, 0107 Oslo N-1326 Lysaker Telephone: +47 22 01 44 40 61 Key fi gures Gjensidige NOR Spareforsikring ASA Telephone: +47 22 96 80 00 Managing Director: Bård Benum 64 Shares and shareholders Offi ce address: Tinghusplassen 3, Gjensidige NOR Pensjonstjenester AS Trondheim Managing Director: Terje Pedersen INVESTOR RELATIONS Postal address: N-7469 Trondheim Offi ce address: Drammensveien 288, 67 Property fi nancing Chief Financial Offi cer: Geir Bergvoll Telephone: +47 73 58 71 11 Lysaker Telephone: +47 22 31 99 80 Postal address: P.O. Box 276, 68 Corporate social responsibility SUBSIDIARIES N-1326 Lysaker Director, Avanse Forvaltning AS Telephone: +47 22 96 80 00 Investor Relations: Lisbeth Lindberg 70 Organising the business Managing Director: Tom Rathke Telephone: +47 22 31 91 66 Offi ce address: Drammensveien 288, Sparebankenes Kredittselskap AS Managing Director: Gunnar Gabrielsen 71 Savings Bank Lysaker Deputy Director: Ann-Kristin Sandvik Postal address: P.O. Box 416, Offi ce address: Kirkegata 15,Oslo Telephone: +47 22 31 87 26 N-1327 Lysaker Postal address: P.O. Box 1172 Sentrum, 74 Corporate Customers Telephone: +47 22 96 66 00 N-0107 Oslo Telephone: +47 22 94 34 00 76 Capital Markets Elcon Finans AS Managing Director: Erik Kongelf Sparebankgårdene AS 78 Life Insurance and Pensions Offi ce address: Strandveien 18, Lysaker Managing Director: Rolf B. Vedal Postal address: P.O. Box 177, Offi ce address: Kirkegata 18, Oslo N-1325 Lysaker Postal address: P.O. Box 1172 Sentrum, 83 Banking Products Telephone: +47 22 96 90 00 N-0107 Oslo Telephone: +47 22 31 90 50 84 Cresco Gjensidige NOR Eiendom AS Managing Director: Svein N. Rønning Union Bank of Norway International S.A. 85 Subsidiaries Offi ce address: Kirkegata 15,Oslo Luxembourg Postal address: P.O. Box 1172 Sentrum, Managing Director: Øyvind Parnemann N-0107 Oslo Offi ce address: 22, Rue Jean-Pierre 87 Governing bodies Telephone: +47 22 31 90 50 Brasseur Postal address: P.O. Box 867, 88 Chief executives Gjensidige NOR Equities ASA L-2018 Luxembourg Managing Director: Terje D. Skullerud Telephone: +35 245 49 451 Contacts Offi ce address: Øvre Slottsgate 3, Oslo Postal address: P.O. Box 1172 Sentrum, N-0107 Oslo Telephone: +47 23 10 56 00 Gjensidige NOR Fondsforsikring AS Financial calendar for 2003 Managing Director: Jan Petter Opedal 29 April Annual general meeting Offi ce address: Bassengbakken 1, Trondheim 30 April Ex dividend date Postal address: N-7469 Trondheim Design and layout: Gjensidige NOR Markedsstøtte 8 May First quarter 2003 Telephone: +47 73 58 71 61 by Vigdis Brekkan and Per Svaan 15 May Payment of dividend Photo: Sverre Chr. Jarild and Morten Brakestad 14 August Second quarter 2003 Print: Kampen Grafi sk AS 30 October Third quarter 2003 Circulation: 9,000 (English edition) Financial Summary 2002 2001(*) 2000(*) 1999(*) Net interest income 5,715 5,527 5,347 4,976 Capital gains 162 272 262 229 Other operating income 1,830 1,917 1,669 1,489 Share of profi t (loss) – Spareforsikring ( 157) ( 32) 287 290 Operating expenses 4,768 4,544 4,106 4,310 Operating profi t before losses 2,782 3,140 3,459 2,674 Losses (gains) on loans 546 426 215 234 Losses (gains) on long-term fi nancial assets 2 ( 232) ( 746) ( 386) Operating profi t 2,234 2,946 3,990 2,826 Net profi t 1,501 2,129 2,975 2,120 Return on equity 9.1% 13.8% 21.5% 17.3% Interest margin 2.3% 2.4% 2.6% 2.8% Dividend yield on share (10.3%) 12.5% 45.7% 33.9% Earnings per share (in NOK) 17.25 24.47 34.20 24.37 RISK amount (in NOK as at 1 January subsequent year) Approx. 2 17.53 28.11 20.18 Growth in lending 7.7% 9.5% 7.8% 36.2% Growth in deposits 12.2% 9.4% 7.1% 32.5% Total assets 253,690 233,883 209,612 198,230 Losses (gains) on loans 0.26% 0.22% 0.12% 0.12% Capital (eligible) 23,923 21,058 19 826 17,984 Capital ratio 11.7% 10.2% 10.4% 10.3% Of which: core (tier 1) capital 8.4% 6.7% 6.8% 6.7% (*) Pro forma Amounts in NOK million; see p. 61 - 63 for further key fi gures and defi nitions. Pro forma key fi gures for shares (**) 2002 2001 2000 1999 Market price at 31.12. (NOK) 227 272 257 186 Book equity per share (in NOK, incl. allocation of dividend) 198 190 174 150 Book equity per share (in NOK, exc. allocation of dividend) 187 181 165 143 Price/book value (incl. allocation to dividend) 1.1 1.4 1.5 1.2 Price/book value (exc. allocation to dividend) 1.2 1.5 1.6 1.3 Price/earnings 13.2 11.1 7.5 7.6 Earnings per share (NOK) 17.25 24.47 34.20 24.37 Dividend per share (NOK) 11 17 17 14 Direct yield (allocated dividend in % of market price at year-end) 4.8% 6.3% 6.6% 7.5% No. shares/PCCs at 31.12. 86,996,467 86,996,467 86,996,467 86,996,467 (**) Primary capital certifi cates (PCC) were Union Bank of Norway’s stock-exchange-listed equity capital instrument up to the third quarter of 2002. Financial Summary 1 Gjensidige NOR ASA Gjensidige NOR ASA is the parent company in Norway’s second largest fi nancial conglomerate, with NOK 366 billion under management. It delivers products and services in the fi elds of everyday banking, lending and fi - nancing, pensions, savings and investment and real estate agency. The Group also has a number of businesses that offer products to niche segments of the fi nancial market. Union Bank of Norway and Gjensidige NOR Sparefor- • focus on profi t growth sikring (the Group’s life insurance arm) deliver products • build an effective and effi cient organisation and services to almost 1.2 million customers. Other structure companies within the Group have a further approx. • create strong relationships with its customers 1.2 million customer relationships, including a large • recruit and develop skilled staff and managers number who are customers of both the bank and the • further develop effective fi nancial management life insurance company. • maintain a proactive approach to evolution in the fi nancial industry OBJECTIVES Owners, customers and staff are all crucial players in The Group wishes to provide the market with a Gjensidige NOR’s evolution, as refl ected in the wording Norway-based alternative that upholds the valuable of the Group’s objectives: traditions on which Gjensidige NOR is based. • Our main objective is to create shareholder value COOPERATION on a par with leading Nordic players in the fi nancial Gjensidige NOR ASA has a long-term, strategic co- industry through competitive return on equity and operation with Gjensidige NOR Forsikring designed to profi t growth. improve both sides’ competitiveness and profi tability. • Our business is designed to demonstrate that: «Our The cooperation agreement includes developing the customers have made the best choice». Group-wide «Gjensidige NOR» brand, and realising the • We intend to be a challenging and motivating em- potentials for cross-sales within the Group. ployer that stimulates diversity and development. Gjensidige NOR also has strategic agreements with 17 independent savings banks. STRATEGY Gjensidige NOR ASA’s corporate structure is essen- Norway is Gjensidige NOR ASA’s main market, and re- tially as shown below. See page 70 for an overview of tail customers and small and medium-sized businesses the Group’s organisation in business and functional are the main customer categories. To meet current and terms. future challenges the Group will Gjensidige NOR ASA 100 per cent 100 per cent 100 per cent Union Bank of Norway ASA Gjensidige NOR Fondsforsikring AS Gjensidige NOR Spareforsikring ASA 100 per cent Elcon Finans AS Sparebankenes Kredittselskap AS Gjensidige NOR Eiendomsmegling AS UBN Int. SA Luxembourg Gjensidige NOR Equities ASA Gjensidige NOR Kapitalforvaltning ASA 97,3 per cent Avanse Forvaltning AS 2 Gjensidige NOR ASA Highlights in 2002 LAW CHANGE PASSED FROM TRANSACTION TO INTERACTION On 4 June the Storting passes law changes enabling The Internet bank adds new services to its range in Sep- savings banks to convert to limited liability companies.