SPAREBANKEN VESTSTIG VANGEN

BRIEF INFORMATION ABOUT SPAREBANKEN VEST

The bank was established in 1823 and has been listed on Oslo Børs since 1995 Norway's second oldest savings bank Third biggest Norwegian-owned bank Head office in Bergen, Hordaland Thirty-eight branch offices in Hordaland, Sogn og Fjordane and

Rogaland The Group offers a wide range of services, incl. insurance,

stockbroking and estate agency activities More than NOK 160 billion in assets under management, and more

than 260.000 retail customers and 10.000 corporate customers Return on equity target: > 11%

MARKET AREA

SPAREBANKEN VEST

Sogn og FjordaneMarket share*: 17.0%

HordalandMarket share*: 26.9%

RogalandMarket share*: 5.0%

* Market share Retail Market 2

STRONG POSITION IN THE RETAIL MARKET- WELL-DIVERSIFIED POSITION IN THE CORPORATE MARKET

Lending portfolio NOK 133.9 bill. Breakdown by sector in the corporate market NOK 32.4 bill.

Loans broken down by LTV ratio Broken down by region

74%

14%

7% 5%0%

HORDALAND ROGALAND SOGN OG FJORDANE

RESTEN AV NORGE

UTLAND

GROSS LENDING RETAIL MARKET- 94% WITHIN LTV RATIO OF 70%, 74% OF THE PORTFOLIO IN HORDALAND

94.3 %

4.2 % 1.4 %

LTV <= 70 % 70 - 85 % LTV > 85 % ABROADREST OFNORWAY

4

RETAIL BANK-FOCUS ON DIGITAL INNOVATION

5

E-signing of loan documents on Iphone and IpadMobilbankingRobotsValue creation

Contributes to:Customer efficiencyIncreased profitabilityDiffrentiate Sparebanken Vest

2017: WELL CAPITALISED AND ATTRACTIVE DIVIDEND LEVEL

A high proportion of retail market customers gives a considerable capital effect when excluding the Basel 1 floor

Final phase of A-IRB in the corporate market will have a further positive capital effect

Good credit quality, low exposure in industries exposed to cyclical fluctuations

Good development in associated companies

Owner fractions provide a basis for retention of a relatively larger proportion of profits

Adapted dividend policy – 50–80% of the equity certificate holders' share of profits

'The world is changing very fast. Big will not beat smallanymore. It will be the fast beating the slow'

- Rupert Murdoch

Bilde av kunde……SPING

'A long history is no guarantee that you won't be historytomorrow'

Source: Report from Heads! and Deloitte Digital.

DIGITAL SHIFT AFFECTS INDUSTRIES DIFFERENTLY

'INDEPENDENCE IS THE GOAL –PROFITABILITY IS THE ANSWER’

Total profit for the second quarter

2016

STRONGER RETURN ON EQUITY

Return on equity as percentage Return on equity excl. non-recurring effects*

*Non-recurring effects, second quarter 2016: Restructuring costs NOK 55 million, Visa gain NOK 94 million, sale of property NOK 20 million

STABLE PROFITABILITY OVER YEARS- RETURN ON EQUITY ABOVE TARGET

17.9%

16.2%

4.9%

8.0%

11.3%

8.7%

14.1%.

11.7%

13.7%

11.0%

8.8%

15.0%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Q1 16 Q2 16

14

KEY DEVELOPMENTS IN THE SECOND QUARTER

NOK 504 MILL. (348)

15% (11.1%)

NOK 16 MILL. (38)

NOK 418 MILL. (367)

PRE-TAX OPERATING PROFIT

LOW WRITE-DOWNS

GOOD RETURN ON EQUITY

FLAT COST DEVELOPMENT

Figures in brackets: second quarter 2015

NOK 445 MILL. (290)

12.4% (10.9%)

NOK 16 MILL. (38)

NOK 362 MILL. (367)

PROFIT PERFORMANCE

PROFIT PERFORMANCE EXCL.

NON-RECURRING EFFECTS*

*Non-recurring effects, second quarter 2016: Restructuring costs NOK 55 million, Visa gain NOK 94 million, sale of property NOK 20 million

PROFIT AND BOOK VALUE OF EQUITY CERTIFICATES

Profit per equity certificate Book equity per equity certificate

DEVELOPMENT IN MARGINS

Lending Deposits

Measured against average 3-month NIBOR

INCREASED NOMINAL NET INTEREST

GOOD GROWTH IN THE RETAIL MARKET

Retail marketLending NOK 101.5 billion

Corporate marketLending NOK 32.4 billion

VERY STRONG RESULT FROM FRENDE FORSIKRING

NOKmQ2 2016 Q2 2015 1H 2016 1H 2015

Frende Forsikring 36 14 42 22

Norne Securities -2 2 -5 3

Brage Finans 4 3 7 6

Verd Boligkreditt 1 2 4 4Share of profit/loss from associated companies 39 20 47 34

The companies' profit/loss after tax Profit contribution, associated companies

BREAKDOWN OF LENDING, CORPORATE MARKET- GROWTH IN COMMITMENTS UNDER MNOK 150 MILL.

Breakdown by sector in the corporate market NOK 32.4 bill.By volume*

* Measured by commitments excl. the Jonsvoll company. Breakdown by sector refers to gross lending

21,466

9,642

6,871

22,209

10,264

6,397

0-50 mill 50-150 mill over 150 mill

1H 15 1H 16

38 %

16 %

11 %

10 %

8 %

5 %

5 %4 %

2 % REAL ESTATE

BUILDING AND CONSTRUCTION

AGRICULTURE AND FORESTRY

SERVICE

WHOLESALE AND RETAILTRADE

SHIPPING

ENERGY

INDUSTRY

HOTELS AND RESTAURANTS

OTHER FINANCIALS

PUBLIC SERVICES

22

Total exposure of NOK 1.4 bill. constitutes 1.1% of the total portfolio

Offshore mainly comprises construction ships

LTV: Average of 62%, down from 64% in Q1 2016

The biggest commitments have good contract coverage

Many of the big commitments have already been restructured with long-term capital

Comments

LIMITED LENDING TO THE OFFSHORE SEGMENT- INCLUDING SEISMIC SECTOR AND CONSTRUCTION

Loans to the corporate market NOK 32.4 billion

Segment Lending MNOK # of vessels LTVConstruction/Subsea 945 7Seismic 148 6PSV 158 2ERRV 105 5Barge 86 1SUM 1.442 21 62 %

DECREASE IN DEFAULTS AND OTHER POTENTIAL BAD DEBT*

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

LOW INDIVIDUAL LOSSES- INCREASED GROUP WRITE-DOWNS TO OFFSET UNCERTAIN MACROECONOMIC SITUATION

Quarterly development Breakdown in the period Q2 2015–Q2 2016

ROBUST PROVISION LEVEL

Capital

IMPROVED FINANCIAL STRENGTH – CORE TIER 1 CAPITAL RATIO 14.1%

Basel 1 floor IRB

CAPITAL DEVELOPMENT 2016 – ON SCHEDULE IN RELATION TO TARGET OF 14.5%

Core Tier 1 capital taking into account Basel I floor

Stable lending margins in CM, pressure in RM

Other income and expenses in line with earlier expectations/plan

Lower restructuring costs and non-recurring items on the income side

Growth slightly higher than originally planned

Expected loss cost of NOK 150–200 mill.

Change in pension scheme

Assumptions

13.7 13.814.1

14.5

Q4 15 Q1 16 Q2 16 Q3 16 Q4 16

A flexible organisation

‘If the rate of change on the outside (of an organization)

exceeds the rate of change on the inside, the end is near’

- Jack Welch

MAIN GROUPS OF MEASURES UNDER ‘CUSTOMER 2016’

CSR

Innovation and

customer experienc

e

Operational

services

Risk Manage

ment

Retail market

Corporate market

General managemen

t

New organisation and new service concepts

Increased investments in technology

Downsizing and adjusted expertise

31

32

2011: 3 offices

2012: 4 offices

2013: 11 offices

2014/15: 9 offices

2016: 9 offices

Shift in resources and expertise About 130 full-time equivalents out About 30 new full-time equivalents in

CHANGE IN COST STRUCTURE AND COMPETENCE PROFILE

Number of branch offices Historical development

FLAT COST DEVELOPMENT

729MNOK

728MNOK

H1 14 H1 16

Cost control better than 2% target

Development full-time equivalents and 2017 targetCost development over the last two years

Costs excl. restructuring costs

Everything we do, we do to make life in Western Norway even better

Independence is the core of everything we do – the savings bank model

One of the top two banks in terms of return on equityTrust, simplicity and local commitment – because it makes a difference

Teamw

ork • Bold • Inquisitive

Faster response time

Fix thebasics

The battle for families

The self-service customer

MEASURES

76% retail market portfolio means lower risk

Flat cost development in 2016 and 2017

Low direct exposure to the oil and offshore sector

Robust provision level, 3.1% provision in the corporate market portfolio

Losses for 2016 estimated to be between NOK 150 and 200 million

Solid capital base with a 14.1% Core Tier 1 capital ratio

Ambitious measures to prepare for the digital revolution

Attractive dividend policy and expectation of a high direct return from 2017

OUTLOOK

2017: WELL CAPITALISED AND ATTRACTIVE DIVIDEND LEVEL

A high proportion of retail market customers gives a considerable capital effect when excluding the Basel 1 floor

Final phase of A-IRB in the corporate market will have a further positive capital effect

Good credit quality, low exposure in industries exposed to cyclical fluctuations

Good development in associated companies

Owner fractions provide a basis for retention of a relatively larger proportion of profits

Adapted dividend policy – 50–80% of the equity certificate holders' share of profits

37

20 largest owners Antall EKB Andel %SPAREBANKSTIFTINGA HARDANGER 14.954.394 25,33SPAREBANKSTIFTELSEN SAUDA 4.900.354 8,30PARETO AS 3.923.368 6,65

VPF NORDEA NORGE VER C/O JPMORGAN EUROPE 2.724.239 4,61

MP PENSJON PK 2.663.458 4,51WIMOH INVEST AS 2.196.699 3,72BERGEN KOMMUNALE PENSJONSKASSE 1.625.000 2,75BERA AS 1.120.000 1,90

EIKA UTBYTTE VPF C/O EIKA KAPITALFORV. 1.034.912 1,75

WENAASGRUPPEN AS 790.629 1,34SPAR SHIPPING AS 743.480 1,26

VPF NORDEA KAPITAL C/O JPMORGAN EUROPE 649.423 1,10

VPF NORDEA AVKASTNIN C/O JPMORGAN EUROPE 614.169 1,04

FRAMAR AS C/O A. G. REGNSKAP A 549.800 0,93FONDSFINANS NORGE 515.000 0,87LANDKREDITT UTBYTTE 500.000 0,85TROVÅG AS 483.700 0,82AW CAPITAL INVEST AS 472.558 0,80

MERRILL LYNCH PROF. MLPRO SEG FOR EXCLSV 424.673 0,72

LARRE EIENDOM 2 AS 382.194 0,65

VI ER HER.

DEVELOPMENT IN NET INTEREST IN THE SECOND QUARTER

584

-35 2616

5 -13 -119

601

400

450

500

550

600

650

Q2 2015

Utlånsm

argin

Innskuddsmargin

Utlånsvolum

Innskuddsvolum

Likviditet

Sikringsfondsavg

Andre poster

Q2 2016