Interim Report 1st quarter 2013 Gjensidige Bank

Gjensidige Bank group highlights First quarter 2013 In the following text numbers in brackets refer to the amount or percentage for the corresponding period last year.

First quarter • Pre-tax profit: NOK 47.9 million (20.8) • Operating income: NOK 136.8 million (114.7) • Operating expenses: NOK 74.1 million (75.0) • Cost/income ratio: 54.2 per cent (65.4) • Write-downs and losses: NOK 14.8 million (18.9) • Return on equity: 14.2 per cent (6.6) • Tier 1 common capital: NOK 1.3 billion (1.2) • Tier 1 common ratio: 12.6 per cent (14.2) • Gross lending: NOK 18.2 billion (15.1) • Customer deposits: NOK 11.5 billion (10.1)

Operating Income

Pre-tax profit

CET 1 capital ratio

NOK million

NOK million

Per cent

14.2

115

120

13.3

48

137

13.6 13.0

12.6

117 38

27

27

Q2 2012

Q3 2012

21

Q1 2012

2

Q2 2012

Q3 2012

Q3 2012

Q1 2013

Gjensidige Bank – 1st quarter interim report 2013

Q1 2012

Q4 2012

Q1 2013

Q1 2012

Q2 2012

Q3 2012

Q3 2012

Q1 2013

First quarter development

Lending and deposit growth

Profit before tax expense was NOK 47.9 million (20.8), more than twice as much compared to prior year’s performance. The net interest income was the main driver for the increased profitability, coming from the growth in customer lending.

Gross lending increased with 20.9 percent, amounting to NOK 18.2 billion (15.1) at the end of the period. Loan growth was NOK 913.7 million (71.6) during the quarter. The bank’s deposits increased with 13.6 percent, to NOK 11.5 billion (10.1) at the end of the period. Deposits movement was NOK (93.4) million (338.7) during the quarter.

Operating income

Capital adequacy

Earnings performance

Total income was NOK 136.8 million (114.7). The increase was a result of sustainable growth of the underlying business. Net interest income was NOK 126.4 million (105.3). This was a result of customer assets growth and decreasing financing costs. Net commission income and other operating income were NOK 10.4 million (9.4). The increase was primarily driven by customer related commission income and the gains coming from the acquired unsecured loans portfolio, previously written off. The income from financial instruments deteriorated as compared to prior year.

At the end of the period, the Gjensidige Bank Group had a capital adequacy ratio of 12.6 per cent (14.2). The decline was according to the bank’s expectations and was largely due to the growth in the lending volumes. At the end of the period, the net equity and subordinated loan capital amounted to NOK 1.3 billion (1.2). The bank has a 12 per cent target level for core capital ratio.

Rating

Annualised net interest income in per cent of average total assets was 2.66 per cent (2.53). This is a result of lower financing costs.

The long term rating of Gjensidige Bank Boligkreditt's outstanding covered bonds was AA+, unchanged from the end of 2012. The rating of the covered bonds issued by Gjensidige Bank Boligkreditt AS had a positive effect on the bank’s financing costs.

Operating expenses

Debt securities issued

Operating expenses were NOK 74.1 million (75.0). The increase in the expenses driven by the business growth was compensated by the improved depreciation costs. Cost/income ratio was 54.2 per cent (65.4). The decline was driven by the increased income.

Write-downs and losses Total write-down and losses were NOK 14.8 million (18.9), primarily related to the unsecured lending portfolio and in line with the bank’s expectations. The reduction was driven by lower provisioning levels as a result of improved expectation of customer repayments. Annualized write-downs and losses in per cent of average gross lending were 0.34 per cent (0.51) as a result of the improvement in loss and provisioning level as well as the increase in secured loans portfolio. Gross lending in default over 30 days amounted to NOK 358.6 million (305.7). The increase was a result of both portfolio growth and the transition of the unsecured consumer loans portfolio to IFRS accounting rules after it was purchased from Citibank at the end of 2009. Gross loans in default over 30 days was 2.0 per cent (2.0) of total gross lending. The write-downs on the impaired assets measured as a ratio of the non-performing loans (NPL) was at 82.3 per cent (72.9). The weighted average loan to value1) was estimated at 62.7 per cent for the mortgage portfolio.

Net issues of debt securities amounted to NOK 5.8 billion (4.8) at the end of the period. The total nominal value of the securities issued by the bank was NOK 5.8 billion. Out of these, NOK 0.5 billion will be repaid during the year. Gjensidige Bank Boligkreditt AS issued covered bonds totalling NOK 0.8 billion in the first quarter and all of the issuance was placed in the market. Gjensidige Bank ASA had a reserve of covered bonds totalling NOK 1.5 billion issued by Gjensidige Bank Boligkreditt AS. Of this reserve NOK 249.0 million were used in the swap arrangement with Norges Bank (the central bank of Norway). The access to external funding is good. The capital of Gjensidige Bank Boligkreditt AS increased during the quarter in order to support the portfolio growth through financing with covered bonds. Deposits to loans ratio was 63.0 percent (67.0), as result of higher increase in the customer assets vs. customer deposits.

Liquidity At the end of the period the Gjensidige Bank Group had net liquid assets of NOK 2.2 billion, divided between NOK 15.7 million in bank deposits and NOK 2.2 billion in bonds and certificates. Of these assets NOK 1.5 billion were investments in covered bonds from Gjensidige Bank Boligkreditt AS (eliminated in the consolidated accounts) that were not utilised in the swap arrangement with Norges Bank. Some of these assets are listed on the Oslo Alternative Bond Market (ABM). The net liquid assets were at an adequate level that covers the debt payments that will fall due over the next 19 months.

1) The estimate is calculated based on the exposure at the reporting date and the

property valuation at the time the loan was approved, including any higher priority pledge(s).

Gjensidige Bank – 1st quarter interim report 2013

3

Key risk and uncertainty factors The bank’s financial risk mainly includes credit, liquidity and interest rate risk. Risk is reported monthly and is assessed in accordance with the principles, strategies and thresholds on risk defined by the Board. Credit risk represents the risk of losses arising from customers and other counterparties failing to repay their debts when they are due. The bank uses risk classification models to calculate the risk associated with its exposure to customers. The bank considers its loan performance to be satisfactory and monitors its portfolio closely. Liquidity risk is the risk that the bank will be unable to meet all its financial obligations when they are due, or be unable to fund its lending activities. The bank established the legal framework that allows it to attract liquidity from the external market. Also, in order to reduce the risk, liquidity forecasts are continuously updated and reviewed. The liquidity reserve the bank currently has gives the necessary time for implementing measures in a situation of acute liquidity freeze.

Interest rate risk is the risk that equity will fall in value as a result of unexpected changes in the interest rate levels in the market. Such changes in the interest rate levels may lead to a fall in the market value of fixed-interest assets. Alternatively, the market value of fixed-interest debt/liabilities may increase. The bank’s exposure to general interest rate levels shall be kept low in relation to its core capital.

Events after the balance sheet date No significant events have occurred after quarter end.

Future prospects The increase in customer lending brought in a healthy increase in the bank’s profits. The growth is expected to go on at a similar pace, impacting the overall profitability and helping the bank to acquire more market share. The new regulatory requirements regarding capital together with the growth in customer assets are expected to generate increased need for capital.

Oslo, 6. May 2013 The Board of Gjensidige Bank ASA

Mats Gottschalk

Per Kumle

Kari Anne Mørk

Rune Vosseteig

Hans O. Harén

Chairman of the Board

Marianne B. Einarsen

CEO

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Gjensidige Bank – 1st quarter interim report 2013

Profit & loss account Gjensidige Bank Group

NOK thousand

Note

Interest income etc.

1.1.-31.3.2013 252,881

1.1.-31.3.2012 1.1.31.12.2012 233,548

949,650

Interest costs etc.

126,461

128,220

506,704

Net interest income

126,420

105,327

442,946

Commission income and income from bank services

7,655

5,370

27,987

Commission costs and costs of bank services

1,350

1,084

4,587

Income from other financial investments

(177)

3,680

9,366

Other operating income

4,288

1,398

11,996

10,417

9,363

44,762

136,836

114,690

487,707

23,493

24,351

94,707

4,688

7,084

24,823

Other operating expenses

45,952

43,560

186,868

Total operating expenses

74,133

74,995

306,398

Profit / (loss) before loan losses

62,703

39,695

181,310

14,776

18,929

68,354

Profit / (loss) before tax expense

47,928

20,767

112,956

Tax expense

13,420

5,815

31,683

Profit / (loss) for the perdiod

34,508

14,952

81,272

39.4

17.1

92.8

Net commission income and other operating income Total income Wages, salaries and general administration expenses Depreciation of fixed assets

Write-downs and losses

4

Earnings per share (NOK ) (basic and diluted)

Statement of comprehensive income Gjensidige Bank Group

NOK thousand Profit for the period

1.1.-31.3.2013 34,508

1.1.-31.3.2012 14,952

31.12.2012 81,272

Other components of profit / (loss) Actuarial gains/ (loss) on pensions

4,135

Tax on other result components

(1,158)

Total other profit / (loss) components Total profit / (loss) for the period

2,977 34,508

14,952

84,249

Gjensidige Gjensidige Forsikring Bank––hittil 1st quarter i år oginterim fjerde kvartal report 2013 2012

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Balance sheet Gjensidige Bank Group

NOK thousand

Note

31.3.2013

31.3.2012

31.12.2012

Assets Cash and claims from central banks

1,033

Loans to and claims from credit institutions Loans to and claims from customers

2

-Write-downs

4

Net loans to customers Repossessed assets Certificates, bonds and other interest-bearing securities

35,134

55,168

14,635

169,606

31,506

18,237,996

15,090,658

17,324,268

(237,259)

(199,341)

(233,657)

18,000,737

14,891,317

17,090,611

75

75

987,282

1,413,154

1,182,642

50,246

61,209

50,273

311

2,736

365

Shares (and other securities with variable yield) Intangible assets Fixed assets Other assets Advance payments and accrued income Total assets

7,118

508,545

13,358

90,417

55,068

68,509

19,151,854

17,136,844

18,492,432

Liabilities and equity Liabilities to credit institutions

6

218,143

513,108

218,143

Deposits and liabilities to customers

2

11,487,039

10,114,971

11,580,457

Liabilities opened for the issue of securities

3

5,835,414

4,795,392

5,212,320

Other liabilities

53,493

278,134

47,414

163,067

141,786

73,907

8,235

11,491

8,235

17,765,391

15,854,883

17,140,477

Share capital

876,000

876,000

876,000

Premium reserve

332,192

332,192

332,192

3,779

3,779

3,779

Accrued costs and advance payment of income Provision for commitments and costs Total liabilities Equity

Other paid-in equity Other equity

174,492

69,990

139,984

Total equity

1,386,463

1,281,961

1,351,955

19,151,854

17,136,844

18,492,432

Total liabilities and equity

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Gjensidige Bank Forsikring – 1st quarter – hittil i interim år og fjerde report kvartal 2013 2012

Statement of changes in equity Gjensidige Bank Group

NOK thousand Equity 1.1.2012

Share capital 876,000

Premium reserve Fund 332,192

Other paid-in CCAPITAL 3,779

Total paid-in CCAPITAL 1,211,971

Other equity The CCAPITAL

Total equity The CCAPITAL

55,038

1,267,009

14,952

14,952

14,952

14,952

69,990

1,281,961

66,320

66,320

697

697

Group contributions paid (after tax) 1.1.-31.3.2012 Share-based payment transactions settled in equity Profit for the period 1.1.-31.3.2012 Other components of profit / (loss) Actuarial gains/ (loss) on pensions Tax on other result components Total other profit/ (loss) components Total profit / (loss) for the period 1.1.-31.3.2012 Equity 31.3.2012

876,000

332,192

3,779

1,211,971

Total profit / (loss) for the period 1.4.-31.12.2012 Group contribution paid (after tax) 1.4.-31.12.2012 Share-based payment transactions settled in equity Other components of profit / (loss) 1.4.-31.12.2012 Actuarial gains/ (loss) on pensions Tax on other result components Total other profit/ (loss) components 1.4.-31.12.2012

4,135

4,135

(1,158)

(1,158)

2,977

2,977

Equity 31.12.2012

876,000

332,192

3,779

1,211,971

139,984

1,351,955

Equity 1.1.2013

876,000

332,192

3,779

1,211,971

139,984

1,351,955

34,508

34,508

34,508

34,508

174,492

1,386,463

Group contribution paid (after tax) 1.1.-31.3.2013 Share-based payment transactions settled in equity Profit for the period 1.1.-31.3.2013 Other components of profit / (loss) Actuarial gains/ (loss) on pensions Tax on other result components Total other profit/ (loss) components Total profit / (loss) for the period 1.1.-31.3.2013 Equity 31.3.2013

876,000

No. shares at end of period

876,000

332,192

3,779

1,211,971

Gjensidige Gjensidige Forsikring Bank––hittil 1st quarter i år oginterim fjerde kvartal report 2013 2012

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Statement of cash flow Gjensidige Bank Group

NOK thousand

1.1.-31.3.2013

1.1.-31.3.2012 1.1.-31.12.2012

Operating activities Net payment of loans to customers

(913,728)

(71,634)

(2,305,245)

Net payment of deposits by customers

(93,418)

338,735

1,804,221

Payment of interest from customers

231,475

223,687

895,954

Payment of interest to customers

(3,833)

(1,082)

(320,600)

905

(1,448)

Net payment of interest from credit institutions etc. Taxes paid

(11,078)

Net other commission income

(5,707) (22,285)

10,594

5,683

35,396

Payment to operations

(69,736)

(67,911)

(267,163)

Net received/paid (-) upon purchase and sale of financial instruments and interest-bearing securities

196,491

(27,687)

(15,168)

(652,328)

398,342

(200,597)

Net purchase of intangible assets and fixed assets

(4,608)

(2,934)

(13,512)

Net cash flow from investment activities

(4,608)

(2,934)

(13,512)

Net received/paid (-) when taking loans from credit institutions, bonds and certificates

623,094

(528,557)

92,907

Net payment of interest on financing activities

(30,188)

(42,887)

(163,207)

(6,977)

7,025

(2,668)

585,929

(564,419)

(72,968)

(71,007)

(169,011)

(287,077)

Liquid assets at start of period

86,674

373,751

373,751

Liquid assets at end of period

15,668

204,740

86,674

(71,007)

(169,011)

(287,077)

1,033

35,134

55,168

Net cash flow from operating activities Investment activities

Financing activities

Net received/paid (-) for other short-term positions Net intragroup contribution/dividend received Net cash flow from financing activities Total cash flow Cash flow for the period

Net payment received/made(-) of cash Specification of liquid assets Claims from central banks Deposits with financial institutions

14,635

169,606

31,506

Liquid assets in statement of cash flow

15,668

204,740

86,674

The statement of cash flow displays payments made and received of cash and cash equivalents throughout the year. The analysis has been adjusted for items which do not initiate cash flow, such as provisions, depreciation and write-down of loans and gu-

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Gjensidige Bank Forsikring – 1st quarter – hittil i interim år og fjerde report kvartal 2013 2012

arantees. Cash flow is classified as operating activities, investment activities or financing activities. The liquid assets are defined as cash and claims from central banks and loans to and claims from credit institutions.

Notes Gjensidige Bank Group

1. Accounting policies The Gjensidige Bank Group comprises Gjensidige Bank ASA and its subsidiary Gjensidige Bank Boligkreditt AS. The Group prepares its accounts in accordance with international financial reporting standards (IFRS ) and the interim accounts for the first quarter have been prepared in accordance with IAS 34 - Interim reports. The same accounting principles and calculation methods have been used as last annual report. For more detailed information on accounting principles, we refer to the annual report for 2012 for Gjensidige Bank ASA . The IFRS and interpretations that have been released until 6 May 2013, the use of which is not mandatory as at 31 March 2013; i.e. IFRS 9 is expected, based on assessments made so far, not to have a significant impact on reported figures. Preparation of the interim accounts involves the use of assessments, estimates and assumptions that affect the use of acco-

unting policies and recognised amounts for assets and liabilities, revenues and expenses. Actual results may deviate from these estimates. The most material assessments connected with the use of the company’s accounting policies and the key sources of uncertainty in the estimates are the same in preparing the interim accounts as in the annual accounts for 2012. The Gjensidige Bank Group was established in the third quarter of 2009 with the establishment of Gjensidige Bank Boligkreditt AS. Share capital totals NOK 143 million and Gjensidige Bank ASA owns all shares. The company was established with the objective of taking over parts of the loan portfolio in Gjensidige Bank ASA with the aim of issuing covered bonds. All amounts are shown in NOK thousand unless otherwise indicated. Due to rounding differences, figures and percentages may not exactly add up to totals indicated.

2. Segment information NOK thousand

31.3.2013

31.12.2012

30.9.2012

30.6.2012

31.3.2012

31.12.2011

30.9.2011

30.6.2011

Deposit from customers divided per sector and industry Private individuals Total deposits

11,487,039

11,580,457

10,693,407

10,396,462

10,114,971

9,776,236

9,251,249

9,378,632

11,487,039

11,580,457

10,693,407

10,396,462

10,114,971

9,776,236

9,251,249

9,378,632

Loans to customers divided per sector and industry Private individuals Gross loans

18,237,996

17,324,268

16,317,818

15,575,658

15,090,658

15,019,023

14,751,485

14,596,735

18,237,996

17,324,268

16,317,818

15,575,658

15,090,658

15,019,023

14,751,485

14,596,735

Gjensidige Gjensidige Forsikring Bank––hittil 1st quarter i år oginterim fjerde kvartal report 2013 2012

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3. Liabilities on the issue of securities Nominal value NOK thousand

Book value

31.3.2013

31.3.2012 31.12.2012

31.3.2013

31.3.2012 31.12.2012

5,536,000

4,750,000

5,005,000

5,532,473

4,742,265

4,999,015

(10,000)

(256,000)

(100,000)

(10,005)

(256,477)

(100,099)

5,526,000

4,494,000

4,905,000

5,522,468

4,485,788

4,898,916

300,000

300,000

300,000

312,946

309,604

313,404

300,000

300,000

300,000

312,946

309,604

313,404

5,826,000

4,794,000

5,205,000

5,835,414

4,795,392

5,212,320

31.3.2013

31.3.2012 31.12.2012

Certificate and other short-term borrowings Bond debt - Own non-amortised certificates/bonds Total liabilities at amortised cost Certificate and other short-term borrowings Bond debt - Own non-amortised certificates/bonds Total liabilities at fair value Total liabilities

Divided on due date (nominal value):

1,094,000 2013

524,000

1,200,000

1,005,000

2014

1,477,000

1,575,000

1,675,000

2015

375,000

275,000

375,000

2016

800,000

300,000

300,000

2017

1,000,000

350,000

1,000,000

2018

1,000,000

2019

650,000

Total

5,826,000

New issues in 2013

1,031,000

Repayments in 2013

10

500,000

Gjensidige Bank Forsikring – 1st quarter – hittil i interim år og fjerde report kvartal 2013 2012

420,000

350,000 4,794,000

5,205,000

4. Write-downs and losses on loans NOK thousand

31.3.2013

31.3.2012

31.12.2012

+/- Change for the period in group write-downs

4,458

11,488

43,344

+/- Change for the period in individual write-downs

(857)

64

2,525

+ Write off during the period

12,422

8,119

27,309

- Payments on previously written off accounts

(1,248)

(743)

(4,824)

Write-downs and losses for the period

14,776

18,929

68,354

Individual write-downs at the start of the period

2,690

165

165

+/- Change for the period in individual write-downs

(857)

64

2,525

Individual write-downs at the end of the period

1,833

229

2,690

297,224

253,880

253,880

Write-downs and losses for the period

Individual write-downs

Group write-downs Group write-downs at the start of the period 1) +/- Change for the period in group write-downs

4,458

11,488

43,344

Group write-downs at the end of the period

301,682

265,368

297,224

Total write-downs at the end of the period

303,515

265,597

299,914

358,626

305,740

350,177

Defaulted loans Gross default over 30 days 1) Includes the group write-downs of the acquired consumer loan portfolio

Gjensidige Gjensidige Forsikring Bank––hittil 1st quarter i år oginterim fjerde kvartal report 2013 2012

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5. Capital adequacy NOK thousand

31.3.2013

31.3.2012

31.12.2012

1,208,192

1,208,192

1,208,192

143,763

58,817

143,763

1,351,955

1,267,009

1,351,955

(42,445)

(55,860)

(42,471)

Subordinated loan capital Share capital and premium reserve fund Other equity Equity Interim results included in core capital Deduction Goodwill and other intangible assets

(7,801)

(5,348)

(7,801)

Core capital

Deferred tax asset

1,301,709

1,205,801

1,301,683

Net equity and sub-ordinated loan capital

1,301,709

1,205,801

1,301,683

395

10,882

713

Credit risk: Of which: Institutions Enterprises

1,734

1,346

1,339

Mass market positions

282,042

225,183

251,369

Positions secured by mortgage

434,329

358,462

410,225

49,254

40,782

45,841

4,671

3,219

4,672

Overdue positions Covered bonds Shares in securities' fund Other positions Total minimum requirement credit risk Operational risk

7,941 338

441

1,072

772,763

648,256

715,231

70,104

49,417

70,104

Deduction: (18,834)

(15,947)

(18,477)

Minimum requirement equity and subordinated loan capital

Group write-downs

824,033

681,726

766,858

Surplus subordinated capital

477,676

524,075

534,825

Basis of calculation balance sheet items not included in trading portfolio

8,357,430

7,200,188

7,989,983

Basis of calculation off balance sheet items not included in trading portfolio

1,302,100

903,016

950,421

10,298,331

8,521,562

9,585,295

Capital adequacy

12.6 %

14.2 %

13.6 %

Core capital adequacy

12.6 %

14.2 %

13.6 %

Risk-weighted assets (calculation basis for capital adequacy ratio) Capital adequacy

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Gjensidige Bank Forsikring – 1st quarter – hittil i interim år og fjerde report kvartal 2013 2012

6. Closely related parties Gjensidige Forsikring ASA, Gjensidige Bank ASA and Gjensidige Bank Boligkreditt AS are considered to be closely related parties. All transactions and agreements with these parties are carried out in accordance with arm’s length principles.

The CEO of Gjensidige Bank Boligkreditt AS is outsourced to Gjensidige Bank ASA with 40 per cent of the position. Expenses related to this agreement amounted to NOK 0.1 million and have been eliminated in the consolidated financial statements.

Significant transactions with closely related parties:

Gjensidige Bank ASA has invested NOK 1.5 billion in covered bonds issued by Gjensidige Bank Boligkreditt AS, of which NOK 249.0 million is used in Norges Bank's swap arrangement. Interest on bonds amounted to NOK 7.3 million and is eliminated on the consolidated financial statements.

Gjensidige Bank ASA has purchased services from Gjensidige Forsikring ASA of NOK 6.9 million and the balance was NOK 1.0 million. Gjensidige Bank Boligkreditt AS purchases services such as customer support and loan management as well as day-to-day management and administrative services from Gjensidige Bank ASA. In addition Gjensidige Bank Boligkreditt AS is granted a long-term credit facility of up to NOK 1.0 billion, as well as short-term vendor financing of up to NOK 1.5 billion. Utilized credit is per 31. March 2013 NOK 2.1 billion. Revenue and interest on these agreements amounted to NOK 12.9 million. These items have been eliminated in the consolidated financial statements.

Gjensidige Forsikring ASA holds covered bonds with a nominal value of NOK 75 million. Interest on bonds amounted to NOK 0.4 million. Gjensidige Bank Boligkreditt AS has deposits with Gjensidige Bank ASA of NOK 242.2 million and interest totals NOK 1.2 million. Both items have been eliminated on the consolidated financial statements.

7. Contingent liabilities and security NOK thousand

31.3.2013

31.3.2012

31.12.2012

Loan commitment

2,138,310

1,250,526

1,224,461

Unutilised overdraft facility

2,750,177

2,624,335

2,721,246

Total contingent liabilities

4,888,487

3,874,861

3,945,707

Securities offered as security for loans/ overdraft facility in Norges Bank

891,138

514,435

723,156

Securities provided as security for the swap arrangement of treasury bills for covered bonds

249,024

586,559

249,024

1,140,162

1,100,994

972,180

Total securities provided

Gjensidige Gjensidige Forsikring Bank––hittil 1st quarter i år oginterim fjerde kvartal report 2013 2012

13

8. Fair Value of financial instruments 31.3.2013 NOK thousand

31.3.2012

Adjustment Book value to fair value

31.12.2012

Adjustment Book value to fair value

Book value

Adjustment to fair value

Assets Cash and receivables from central banks

1,033

1,033

35,134

35,134

55,168

55,168

Loans to and receivables from credit institutions, amortised cost

14,635

14,635

169,606

169,606

31,506

31,506

Loans to and receivables from credit institutions

14,635

14,635

169,606

169,606

31,506

31,506

18,000,737

18,013,416

14,891,317

14,896,560

17,090,611

17,100,909

18,000,737

18,013,416

14,891,317

14,896,560

17,090,611

17,100,909

Interest-bearing securities, fair value

987,282

987,282

1,413,154

1,413,154

1,182,642

1,182,642

Interest-bearing securities

987,282

987,282

1,413,154

1,413,154

1,182,642

1,182,642

Loans to and receivables from customers, amortised cost Loans to and receivables from customers, fair value Loans to and receivables from customers Interest-bearing securities, receivables and loans, amortised cost

Shares, fair value Shares, available for sale Shares Derivatives, trading portfolio

10,552

10,552

9,698

9,698

11,294

11,294

Derivatives

10,552

10,552

9,698

9,698

11,294

11,294

Other financial assets, amortised cost

84,055

84,055

52,023

52,023

74,883

74,883

Total other financial assets

84,055

84,055

52,023

52,023

74,883

74,883

19,098,294

19,110,973

16,570,932

16,576,176

18,446,104

18,456,402

Liability to credit institutions, amortised cost

218,143

218,143

513,108

513,108

218,143

218,143

Liability to credit institutions

218,143

218,143

513,108

513,108

218,143

218,143

11,487,039

11,486,759

10,114,971

10,114,981

11,580,457

11,580,665

11,487,039

11,486,759

10,114,971

10,114,981

11,580,457

11,580,665

5,522,468

5,523,240

4,485,502

4,480,953

4,898,916

4,922,990

312,946

312,946

309,889

309,889

313,404

313,404

5,835,414

5,836,186

4,795,392

4,790,842

5,212,320

5,236,394

Total financial assets

Liabilities

Deposits and liabilities to customers, measured at amortised cost Deposits and liabilities to customers, measured at fair value Deposits and liabilities to customers Liability incurred through the issue of securities, amortised cost Liability incurred through the issue of securities, fair value Liability incurred through the issue of securities Derivatives, trading portfolio

4,709

4,709

1,958

1,958

4,142

4,142

Derivatives

4,709

4,709

1,958

1,958

4,142

4,142

110,008

110,008

105,604

105,604

25,885

25,885

Other financial liabilities, amortised cost Other financial liabilities Total financial liabilities

110,008

110,008

105,604

105,604

25,885

25,885

17,655,313

17,655,806

15,531,032

15,526,492

17,040,948

17,065,229

5,000

5,000

5,000

5,000

5,000

5,000

891,138

889,815

514,435

514,435

723,156

721,272

Off balance sheet obligations and guarantees Obligations Guarantees Mortgage assets 1)

1) Mortgage assets include bonds and commercial paper mortgaged with Norges Bank as security for loans / credit facility with Norges Bank.

14

Gjensidige Bank Forsikring – 1st quarter – hittil i interim år og fjerde report kvartal 2013 2012

8. Fair Value of financial instruments (cont.) Assets and liabilities that are measured at fair value, whether this is because they are part of the trading portfolio, were designated at fair value on initial recognition or are held as available for sale, shall be classified according to how reliable the fair value estimate is. There are three classification levels, with level 1 assets

having prices quoted in active markets. Level 2 valuations are directly or indirectly based on observable prices for similar assets. Level 3 valuations are not based on observable prices, and instead rely on e.g. our own valuation models.

31.3.2013 NOK thousand

Level 1

Level 2

Level 3

Total

Loans to and receivables from customers, designated at fair value Interest-bearing securities, designated at fair value

397,638

589,644

987,282

10,552

10,552

600,196

997,834

312,946

312,946

Shares, designated at fair value Shares, available for sale Derivatives, trading portfolio Total assets measured at fair value

397,638

Deposits and liabilities to customers, measured at fair value Liabilities opened for the issue of securities, measured at fair value Derivatives, trading portfolio Total liabilities measured at fair value

4,709

4,709

317,655

317,655

31.3.2012 NOK thousand

Level 1

Level 2

Level 3

Total

Loans to and receivables from customers, designated at fair value Interest-bearing securities, designated at fair value

514,435

898,719

1,413,154

9,698

9,698

908,417

1,422,852

309,889

309,889

Shares, designated at fair value Shares, available for sale Derivatives, trading portfolio Total assets measured at fair value

514,435

Deposits and liabilities to customers, measured at fair value Liabilities opened for the issue of securities, measured at fair value Derivatives, trading portfolio Total liabilities measured at fair value

1,958

1,958

311,847

311,847

31.12.2012 NOK thousand

Level 1

Level 2

Level 3

Total

Loans to and receivables from customers, designated at fair value Interest-bearing securities, designated at fair value

594,193

588,449

1,182,642

11,294

11,294

599,743

1,193,936

313,404

313,404

Shares, designated at fair value Shares, available for sale Derivatives, trading portfolio Total assets measured at fair value

594,193

Deposits and liabilities to customers, measured at fair value Liabilities opened for the issue of securities, measured at fair value Derivatives, trading portfolio Total liabilities measured at fair value

4,142

4,142

317,546

317,546

There were no major moves between levels 1 and 2 in 2013.

Gjensidige Gjensidige Forsikring Bank––hittil 1st quarter i år oginterim fjerde kvartal report 2013 2012

15

Quarterly earnings performance Gjensidige Bank Group

Q1 2013

Q4 2012

Q3 2012

Q2 2012

Q1 2012

Q4 2011

Q3 2011

Q2 2011

Interest income etc.

252,881

247,009

235,980

233,113

233,548

230,455

225,142

216,325

Interest costs etc.

126,461

122,575

131,615

124,294

128,220

121,942

116,537

108,533

Net interest income

NOK thousand

126,420

124,434

104,364

108,819

105,327

108,513

108,605

107,792

Commission income and income from bank services

7,655

7,741

8,325

6,551

5,370

5,536

5,565

5,066

Commission costs and costs of bank services

1,350

1,248

1,195

1,059

1,084

1,327

1,380

1,190

Income from other financial investments

(177)

919

2,797

1,970

3,680

1,683

3,286

3,002

Other operating income Total income Wages, salaries and general administration expenses Depreciation of fixed assets

4,288

4,807

2,394

3,398

1,398

384

3,011

6,015

136,836

136,653

116,685

119,679

114,690

114,790

119,086

120,684

23,493

25,718

23,830

20,808

24,351

24,495

29,251

27,601

4,688

5,112

5,615

7,013

7,084

7,216

7,012

6,638

Other operating costs

45,952

54,185

44,551

44,571

43,560

44,262

39,589

47,604

Total operating expenses

74,133

85,015

73,997

72,392

74,995

75,973

75,852

81,843

Profit / (loss) before loan losses

62,703

51,638

42,688

47,287

39,695

38,817

43,234

38,841

14,776

13,856

15,198

20,372

18,929

24,388

23,463

20,748

47,928

37,783

27,490

26,916

20,767

14,429

19,771

18,093

Profit / (loss) before tax expense

Key figures Gjensidige Bank Group 1.1.-31.3.2013 Net interest income in per cent, annualised 1) Write-downs and losses in per cent, annualised

2)

Non-performing loans in per cent of gross lending Return on equity, annualised

3)

Deposit-to-loan ratio at the end of the period

4)

Capital adequacy 5) Cost/income ratio

6)

Average total assets

%

2.66

2.53

2.52

%

0.34

0.51

0.43

%

1.97

2.03

2.02

%

14.20

6.55

8.67

%

63.0

67.0

66.8

%

12.64

14.2

13.6

% NOK thousand

54.2

65.4

62.8

19,291,201

16,721,011

17,552.291

Average number of FTEs

Number

127

114

122

Registered customers at end of period

Number

97,413

100,530

95,726

1) Net interest income in per cent, annualised = net interest income/average total assets 2) Write-downs and losses in per cent, annualised = write-downs and losses/average gross lending 3) Return on equity, annualised = profit before tax/ average equity during the period 4) Deposit-to-loan ratio = deposits in per cent of gross lending 5) Capital adequacy = equity and subordinated loan capital/ basis of calculation for credit risk, market risk and operational risk 6) Cost/income ratio = total operating costs/ total income

The accounts for the period have not been audited.

16

1.1.-31.3.2012 1.1.31.12.2012

Gjensidige Bank Forsikring – 1st quarter – hittil i interim år og fjerde report kvartal 2013 2012

Profit & loss account and balance sheet Gjensidige Bank ASA Profit & loss account NOK thousand

1.1.-31.3.2013

1.1.-31.3.2012 1.1.-31.12.2012

Interest income etc.

204,797

208,043

Interest costs etc.

100,362

109,226

413,634

Net interest income

104,435

98,817

395,390

Commission income and income from bank services

7,047

5,217

26,407

Commission costs and costs of bank services

1,350

1,084

4,587

27

3,680

8,735

4,984

1,813

13,970

Income from other financial investments Other operating income Net commission income and other operating income Total income Wages, salaries and general administration expenses Depreciation of fixed assets

809,024

10,707

9,625

44,524

115,142

108,442

439,914

23,098

23,980

93,379

4,688

6,923

24,396

Other operating expenses

45,313

42,835

183,348

Total operating expenses

73,099

73,738

301,122

Profit / (loss) before loan losses

42,043

34,704

138,791

Write-downs and losses

13,730

17,745

63,666

Profit / (loss) before tax expense

28,313

16,959

75,125

Tax expense Profit / (loss) for the perdiod Earnings per share (NOK ) (basic and diluted)

7,928

4,749

21,091

20,385

12,210

54,034

23.3

13.9

61.7

Balance Sheet NOK thousand

31.3.2013

31.3.2012

31.12.2012

Assets Cash and claims from central banks Loans to and claims from credit institutions Loans to and claims from customers

1,033

35,134

55,168

2,130,963

946,786

2,102,427 10,137,005

10,100,957

10,924,393

-Write-downs

(228,899)

(195,530)

(226,342)

Net loans to customers

9,872,059

10,728,863

9,910,663

Repossessed assets Certificates, bonds and other interest-bearing

75

75

1,962,416

2,461,917

1,888,317

370,030

220,030

290,030

50,117

60,876

50,143

311

2,736

365

7,118

9,045

13,358

92,934

57,169

71,980

14,487,056

14,522,632

14,382,451

Shares (and other securities with variable yield) Ownership interest in group companies Intangible assets Fixed assets Other assets Advance payments and accrued income Total assets Liabilities and equity Liabilities to credit institutions

460,391

643,848

463,362

11,487,039

10,114,971

11,580,457

1,012,482

2,102,311

923,096

38,949

249,828

36,707

151,222

137,327

62,240

8,235

11,491

8,235

13,158,317

13,259,776

13,074,097

Share capital

876,000

876,000

876,000

Premium reserve

332,192

332,192

332,192

3,789

3,789

3,789

Deposits and liabilities to customers Liabilities opened for the issue of securities Other liabilities Accrued costs and advance payment of income Provision for commitments and costs Total liabilities Equity

Other paid-in equity Other equity

116,758

50,875

96,373

Total equity

1,328,739

1,262,856

1,308,354

14,487,056

14,522,632

14,382,451

Total liabilities and equity

Gjensidige Gjensidige Forsikring Bank––hittil 1st quarter i år oginterim fjerde kvartal report 2013 2012

17

Gjensidige is a leading Nordic insurance group built by customers, for customers. The Group has been listed on the Oslo Stock Exchange since 2010. For nearly 200 years, we have worked passionately to secure the lives, health and assets of our customers. We have about 3,100 employees and offer insurance products in Norway, Denmark, Sweden and the Baltic states.In Norway, we also offer banking, pension and savings. Gjensidige Bank, which is a wholly-owned subsidiary of Gjensidige Forsikring ASA, offers electronic distribution of day-to-day banking services and consumer financing. The Group’s operating income was NOK 19.5 billion in 2012, while total assets was NOK 94.2 billion.

Gjensidige Bank ASA Drammensveien 288 NO-0282 OSLO, Norway