SpareBank 1 Nord-Norge First quarter report 2010 – the Group Very satisfactory result for Q1 2010. The bank has sustained its high level of solidity. Main features (figures in brackets refer to the same interim period in 2009):

• Operating result before tax for the first quarter totalled NOK 260 million (NOK 189 million). • Return on equity after tax was 15.9 per cent (13.5 per cent). • Earnings per equity certificate so far this year (parent bank): NOK 4.17 (NOK 2.68).

• The underlying banking operations are good. The result from core operations before losses amounted to NOK 205 million (173 million).

• Total contribution from the group's subsidiaries: NOK 19 million (NOK 34 million). • Net result from financial investments totalled NOK 76 million (NOK 69 million).

• The contribution to the overall result from SpareBank 1 Gruppen AS amounted to NOK 22 million (NOK 2 million).

• The contribution to the overall result from other associates in the SpareBank 1 alliance (Bank 1 Oslo, BN Bank, SpareBank 1 Boligkreditt and SpareBank 1 Næringskreditt) amounted to NOK 19 million.

• Net gain from the bank’s share portfolio included in the accounts totalled NOK 21 million. • Net loss from interest-bearing portfolio (including related financial derivatives transactions) amounted

to NOK 2 million. • Net gain from foreign exchange and other financial derivatives was NOK 7 million.

• Cost development are under control. A non-recurring effect of recognising income from reduced pension commitments of NOK 60 million as a result of the transition to a new early retirement pension scheme (AFP) in the private sector. Cost/income ratio of 40 per cent (50 per cent).

• Reduced loan losses: Net losses totalled NOK 21 million (NOK 53 million). • Total lending growth during the last 12 months (including loans transferred to SpareBank 1 Boligkreditt): 5.2

per cent (7.4 per cent). • Retail market: 7.8 per cent (incl. SpareBank 1 Boligkreditt). • Corporate market: -0.2 per cent.

• The accounts show a reduction in lending over the last 12 months of 4.9 per cent (+ 2.2 per cent). • Growth in deposits in the last 12 months: 4.2 per cent (9.6 per cent).

• Retail market 4.8 per cent • Corporate market - 7.1 per cent. • Public sector market 24.8 per cent

• Deposit-to-loan ratio: 73.3 per cent (67.0 per cent). • The bank has good financial strength with a core capital adequacy (Group) of 11.7 per cent (10.1 per cent) and

a total capital adequacy of 13.4 per cent (11.7 per cent). • Liquidity remains satisfactory.

Introductory comments The quarterly accounts have been prepared in accordance with the International Financial Reporting Standards (IFRS), including IAS 34 relating to interim reporting. IFRS involves the use of different principles for the incorporation of subsidiaries and joint-venture companies between parent bank and group accounts. In the consolidated accounts, the equity method is applied, in accordance with which results from joint-venture companies are incorporated in the Group’s profit and loss account according to equity share, and are taken into consideration in the book value of equity shares in the balance sheet. The shares of the subsidiaries’ results are consolidated into the accounts. In accordance with IFRS, only the cost method of accounting shall be used in company accounts. This means that the book value of subsidiaries and joint-venture businesses in the parent bank’s accounts is included at historic cost. In the parent bank’s accounts, only the annual dividends received from these businesses are shown.

In accordance with the rules and regulations from the Ministry of Finance dated 16 October 2008, permission was given to reclassify securities in the trading portfolio from the category “At fair market value with value changes through the profit and loss account” to categories which are assessed at amortised cost. The Group decided to make such a reclassification of large parts of the interest-bearing portfolio held available for sale as at 1 July 2008. Future assessments in these categories shall be calculated at amortised cost using the effective interest method of accounting, which means that earlier value write-downs and interest are amortised and incorporated as interest income over the remaining life of the securities in question. The bank’s remaining portfolio of certificates and bonds is classified as “At fair market value with value changes through the profit and loss account”. To the extent that there is an active market for the securities involved, observable market prices are applied in order to assess fair market value. There are no observable market prices in some parts of the portfolio, and the bank has therefore utilised alternative value assessment methods according to IFRS 39 to ascertain fair market value as at

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31 March 2010 for the securities in question. This is described in more detail in the note to the accounts on accounting principles.

Since year-end, the Group has amended its classification of net interest income/costs regarding interest rate hedging for fixed interest loans. Previously, these items were recognised on the profit and loss account under “Net value changes for financial assets”, but are now reported under “Interest income”. The figures for previous periods (2010 and 2009) have also been moved to allow comparison.

On 1 January 2010, SpareBank 1 Nord-Norge acquired a 19.5 per cent shareholding in Bank 1 Oslo AS from SpareBank 1 Gruppen AS.

As part of the wage agreement entered into in 2008 between the Norwegian Federation of Trade Unions (LO) and the Confederation of Norwegian Enterprise (NHO), an agreement was signed for a new AFP scheme (early retirement pension). The former scheme implied that companies included a share of the pension connected to the early retirement pension scheme in their accounting of pension commitments and pension costs. The scheme provides pension payments from the age of 62 to 67 subsequent to voluntary retirement during this period.

It has now been decided that the old scheme should be terminated as of 31 March 2010. This applies to all employees born after 1948.

This amendment has an impact on accounting, in that accrued pension commitments and provisions for pension commitments for employees entering the new scheme as of Q1 2010 no longer exist and shall therefore be removed from the consolidated balance sheet and recognised in the profit and loss account as a non-recurring item.

The Group maintains its commitment to make pension payments to employees who have chosen to retire prior to 1 January 2011. Employees born during the period from and including 1944 to and including 1948 can choose between the old and the new early retirement pension schemes.

The Group’s actuaries have calculated the impact of the transition to the new scheme as of 31 March 2010 as NOK 60 million, of which NOK 57 million for the parent bank. These figures have been recognised as a reduction of the Group’s pension commitments.

Earnings development Operating result before tax at the end of the first quarter 2010 amounted to NOK 260 million. The corresponding result for the same interim period of 2009 was NOK 189 million. The Group’s core operations (operations excluding net income from financial investments) remain good, posting a profit before losses of NOK 205 million, up by NOK 32 million on the same time last year. The Group’s return on equity after tax as of 31 March 2010 is 15.9 per cent (13.5 per cent). For the parent bank, the return on equity is 20.5 per cent (15.1 per cent) and the result per equity certificate is NOK 4.17 (NOK 2.68). The tax cost has been calculated to NOK 56 million.

Compared with the first quarter 2009, the causes of the NOK 71 million improvement in pre-tax result are as follows: • Reduction in net interest income NOK -30 million • Increase in net commission income NOK 28 million • Increase in income from financial investments

NOK 7 million

• Reduction in other operating income

NOK -21 million

• Reduction in costs NOK 55 million • Reduction in net losses NOK 32 million

Share of SpareBank 1 Gruppen’s result SpareBank 1 Gruppen’s preliminary after-tax result at the end of the first quarter 2010 totalled NOK 93 million. The SpareBank 1 Nord-Norge Group’s share of the result, amounting to NOK 18 million, has been incorporated in the accounts. Furthermore, a correction of the final annual result for 2009 has been recognised as income totalling NOK 4 million. With effect from 1 January 2010, the owner banks in SpareBank 1 Gruppen AS took over ownership of Bank 1 Oslo AS. As of the first quarter 2010, a contribution to overall result of NOK 7 million has been reported from Bank 1 Oslo. Subsidiaries The Group’s subsidiaries produced an aggregate contribution of NOK 19 million towards the overall result for the first quarter. Of this, the result from SpareBank 1 Finans Nord-Norge AS accounted for NOK 11 million. SpareBank 1 Invest’s contribution amounted to NOK 6 million. Otherwise, reference is made to the relevant notes to the quarterly accounts. Interest margin The Group’s net interest income at the end of the first quarter 2010 amounted to NOK 272 million. This is NOK 30 million lower than in Q1 2009. In relation to average total assets (GFK), net interest income as of Q1 2010 is 1.70 per cent, 0.17 percentage points lower than for the same period last year. For the first quarter alone, net interest income is NOK 26 million lower than for the fourth quarter. The decline in net interest income is also due to the increase in transfer of loans to SpareBank 1 Boligkreditt. Income from the transferred portfolio is recognised as commission income. To ensure liquidity, the bank raised substantial long-term funding from the capital markets during the financial crisis in 2007 and 2008. These loans have large credit spreads compared with the current level and have raised the bank’s average funding cost. Redemption and replacement of older capital market funding raised before the financial crisis (with low credit spreads) has had – and is expected to still have - a negative effect on the bank’s interest margin.

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The bank has maintained its focus on lending margin. Tough competition, the current low interest rates, coupled with low activity levels in the economy, are expected to continue to exert downward pressure on the bank’s overall interest margin – also in nominal terms. Net income from banking services and other income Net commission income as of Q1 2010 is NOK 120 million, an increase of NOK 28 million when compared with the same period last year. The improvement in result is largely ascribable to increased commission income from SpareBank 1 Boligkreditt and Entercard. Other income as of the end of Q1 2010 is down NOK 21 million when compared with the same period last year. This is due to the fact that a gain on the sale of the Group’s factoring business was recognised in 2009. Income from financial investments Net income from financial investments for the first quarter 2010 totalled NOK 76 million. The result breaks down as follows: Result from SpareBank 1 Gruppen NOK 22million

Result from SpareBank 1 Boligkreditt Result from Bank 1 Oslo Result from BN Bank Amortised net lesser value booked as income, BN Bank Result from SpareBank 1 Næringskreditt Share dividends Net gains on shares

NOK 4 million NOK 6 million NOK 7 million NOK 1 million NOK 1 million NOK 9 million NOK 21 million

Net loss on bonds NOK -2 million Net gain on foreign exchange and financial derivatives

NOK 7 million

When compared with the first quarter 2009, the net result from financial investments is NOK 7 million higher. On 1 July 2008, the bank completed a reclassification of large parts of the interest-bearing securities in the trading portfolio, from the category “At fair market value through the profit and loss account” to categories which are assessed at amortised cost. This involved NOK 3,807 million of the portfolio amounting to NOK 4,981 million in the accounts as at 30 June 2008. If such a re-classification had not been made, further unrealised losses of NOK 212 million on this portfolio would have been charged to the profit and loss account from 1 July 2008 to 31 December 2008 as a result of increased credit spreads. Without reclassification, this unrealised loss would have been reduced to NOK 10 million as at 31 March 2010. Previously written-down amounts on this part of the portfolio as at 30 June 2008 amounted to NOK 112 million and are now included as income (amortised) over the remaining life of each of the securities involved. In 2008, 2009 and to date in 2010, income has been recognised at NOK 18 million, NOK 26 million and NOK 5 million respectively. As per 31 March 2010, average maturity for the reclassified part of the portfolio has been assessed as 1.86 years. The reclassified portfolio has been assessed with regard to the need for permanent write-down in value. As at 31 December 2008, such write-down was made on two of the

bank’s investments, involving NOK 46 million. Further write-downs have been made on one of the securities involved in 2009, the amount being NOK 17 million. No further write-downs were made in 2010. See also the notes to the interim accounts for the first quarter. Operating costs Ordinary operating costs at the end of the first quarter 2010 totalled NOK 188 million, down by NOK 55 million or 22.6 per cent on the same time last year. As mentioned above, the pension costs have seen a reduction with a non-recurring effect of NOK 60 million as a result of the transition to the new early retirement pension scheme in the private sector. If we take this figure into account, ordinary operating costs are at approximately the same level as last year. Current pension costs related to the early retirement pension scheme will increase in the future as a result. In relation to average total assets (GFK), costs amounted to 1.17 per cent, after a decline of 0.34 percentage points compared with the same period last year. If the above-mentioned figures regarding the early retirement pension scheme are not taken into account, the ratio is 1.55 per cent. The Group has a cost/income ratio of 40.1 per cent for Q1 2010 compared with 50.1 per cent in Q1 2009. The cost/income ratio excluding the reduction of pension costs is 52.9 per cent. At the end of the first quarter 2010, the bank had 774 man-years, of which 684 are in the parent bank. The corresponding figures for 2008 were 811 and 719 respectively. The Bank’s cost-reducing measures are to be continued. This includes possible rationalisation measures within the areas of distribution and overall staffing levels. Net losses and commitments in default The Group’s net losses on lending at the end of the first quarter totalled NOK 21 million. Net losses from the corporate market amounted to NOK 16 million, the private market NOK 5 million. As at 31 March 2010, net commitments in default and doubtful commitments amounted to NOK 546 million, equivalent to 1.13 per cent of gross lending, down by NOK 100 million on the same interim period in 2009. The Group’s total individual loss write-downs at the end of the first quarter 2010 are NOK 216 million, a reduction of NOK 12 million on the last quarter. The bank continues to observe a weak development within individual branches, but to a lesser extent. Collective write-downs for impaired value on loans remain unchanged and there have been no changes to the long-term monitoring portfolio. Collective write-downs for impaired value on loans came to 0.49 per cent of the Group’s gross lending at the end of the first quarter.

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According to the main Board of Directors’ opinion, the quality of the bank’s lending portfolio remains good, and every effort continues to be made towards effective work relating to commitments in default and doubtful commitments throughout the Group. As a result of the economic downturn, the bank witnessed a relatively high level of loan losses in 2008 and 2009. Despite the continued uncertainties regarding growth and development in international and national economies, the main Board of Directors is of the opinion that the level of loan losses in the near future will be somewhat lower when compared with 2008/2009. Tax At the end of the first quarter 2010, the Group’s tax cost was estimated at NOK 56 million. In the parent bank’s accounts, the basis for tax has been reduced by permanent differences coupled with the effects of the exemption model. According to IFRS, wealth tax is not a tax cost, and NOK 7 million has therefore been charged to the profit and loss account as part of other operating costs. Total assets On 31 March 2010, group assets stood at NOK 64,086 million, after a NOK 520 million or 0.8 per cent increase during the last 12 months. Lending As at 31 March 2010, group gross lending to customers totalled NOK 48,429 million. In comparison with 31 March 2009, this represents a reduction of 4.9 per cent. As at 31 March 2010, house mortgage loans amounting to NOK 11,443 million had been transferred to SpareBank 1 Boligkreditt AS. Lending growth including these loans amounted to 5.2 per cent. Retail banking loans were up by 7.8 per cent, whereas corporate and public sector loans were down by 0.2 per cent in all. Including the transferred loans to SpareBank 1 Boligkreditt, the share of lending to the retail market is somewhat higher than it was at the end of the first quarter of 2009, amounting to 69 per cent of aggregate loans at the end of the first quarter 2010. The financial crisis, with its diminishing effect on economic growth, has brought about a reduced growth in lending. The immediate future is expected to be characterised by a weak macro-economy, with weak lending growth, especially in the corporate market. However, the main Board of Directors sustains its ambitions for lending growth and increased market shares. In the case of new loans, particular emphasis is placed on customers’ ability to service and repay their outstanding loans, and on a satisfactory level of collateral and other security to ensure that credit risk is maintained at an acceptable level. Saving and investments As at 31 March 2010, group deposits from customers totalled NOK 35,497 million. Over the last 12 months, deposits increased by NOK 1,419 million or 4.2 per cent. Retail market customer deposits were up by 4.8 per cent and public sector deposits by 24.8 per cent, whereas deposits from corporate customers were down by 7.1 per cent.

Portfolio of certificates and bonds The Group’s portfolio of certificates and bonds totalled NOK 8,953 million at the end of the first quarter 2010. Comparative figures as at 31 December 2009 and 31 March 2009 were NOK 8,893 million and NOK 7,661 million respectively. The portfolio of interest-bearing securities remains higher than previous years as a result of the following:

• Increased liquidity reserves in the form of certificates and Treasury bills.

• Transfer of house mortgage loans to SpareBank 1 Boligkreditt involves an increased portfolio of covered bonds (and reduced loans).

• Using the authorities’ swap scheme for covered bonds involves accounting-related incorporation on a gross basis, which in turn means a parallel increase in assets (including certificates) and liabilities.

The larger portfolio of certificates and bonds entails only a small degree of increased risk. Liquidity Deposits from customers represent the bank’s main source of funding. At the end of the first quarter 2010, the deposit-to-loan ratio was 73.3 per cent, up by 6.3 percentage points on the same time last year. The bank’s remaining funding, apart from equity capital and deposits from customers, is mainly from long-term funding from the capital markets. The bank’s access to liquidity has been satisfactory throughout the period of unsettled global financial markets. The bank’s strategic aim is to maintain the overall liquidity risk at a low level. Equity and capital adequacy SpareBank 1 Nord-Norge received permission from the Financial Supervisory Authority of Norway (FSAN) to apply internal measuring methods (Internal Rating Based Approach) for credit risk from 1 January 2007. The statutory minimum requirement for capital adequacy for credit risk was therefore, with effect from 2007, based on the bank’s internal risk assessment. The rules and regulations render the statutory minimum requirement for capital adequacy more risk-sensitive, so that the capital requirement to a larger extent corresponds to the risk in the underlying portfolios. The use of internal computation methods involves comprehensive requirements relating to the bank’s organisation, competence levels, risk models and risk management systems. As a result of the transition rules in the new regulation, IRB Banks were to gain full effect of reduced regulatory capital requirements from and including 2010. A resolution has now been reached to postpone this issue, and the transition rules for 2009 will continue to apply in 2010. The Group has been granted permission by FSAN to use proportional consolidation in its reporting of the capital adequacy of the assets in SpareBank 1 Boligkreditt and SpareBank 1 Næringskreditt. As at 31 March 2010, group core capital adequacy amounted to 11.74 per cent (10.13 per cent) of the weighted asset calculation basis. The total capital adequacy was 13.44 per cent (11.73 per cent).

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At the end of the first quarter 2010, capital adequacy ratio in the parent bank was 11.95 per cent (12.00 per cent), of which core capital constitutes 11.27 per cent (10.66 per cent). The bank’s goal for core capital adequacy is 10 per cent or higher. The bank’s solidity is deemed satisfactory. If 50 per cent of the result were to be factored into the capital adequacy calculations, the capital adequacy ratio for the parent bank would be 12.30 per cent (12.22 per cent) and for the Group 13.68 per cent (11.92 per cent). The bank’s equity certificate holders The bank’s equity certificate capital amounts to NOK 896 million, represented by 17,912,073 equity certificates. The equity certificate ratio as at 1 January 2010 was calculated at 34.54 per cent. The number of equity certificate holders at the end of the first quarter 2010 is 8,514, an increase of 208 over the past year. The number of equity certificate holders from North Norway is 2,457. An overview of the bank’s 20 largest equity certificate holders is provided in the notes to the accounts. Concluding remarks and outlook The result at the end of the first quarter of 2010 is deemed to be very good – especially in light of the current

economic situation. The bank’s core operations remain good. The macro-economic situation in Norway and northern Norway in particular is expected to remain relatively weak in the immediate future. This will result in a reduced demand for credit than normal, particularly within the corporate market, in addition to a somewhat higher level of loss compared with the period of strong economic expansion prior to 2008/2009. A low interest rate and increased competition are expected to continue to exert pressure on the bank's net interest income. The bank attaches importance to balance sheet growth, in terms of deposits and loans alike. Importance is also attached to increasing other income through sales of products and services. All lending growth shall involve good quality. The bank will continue to place a main focus on cost reducing measures. This includes possible rationalisation measures within the areas of distribution and overall staffing levels. Tromsø, 27 April 2010 The main Board of Directors of SpareBank 1 Nord-Norge

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Key figures group

Amounts in NOK million and in % of average assets 31.03.10 % 31.03.09 % 31.12.09 %From the profit and loss accountNet interest income 272 1.70 % 302 1.87 % 1 173 1.80 %

Net fee-, commision and other operating income 121 0.75 % 114 0.71 % 462 0.71 %

Net income from financial investments 76 0.47 % 69 0.43 % 524 0.80 %

Total income 469 2.92 % 485 3.01 % 2 159 3.31 %

Total costs 188 1.17 % 243 1.51 % 972 1.49 %

Result before losses 281 1.75 % 242 1.50 % 1 187 1.82 %

Losses 21 0.13 % 53 0.33 % 185 0.28 %

Result before tax 260 1.62 % 189 1.17 % 1 002 1.54 %

Tax 56 0.35 % 37 0.23 % 143 0.22 %

Minority interests 0 0.00 % 0 0.00 % 1 0.00 %

Result for the period 204 1.27 % 152 0.94 % 858 1.32 %

Profitability

Return on equity capital 1 15.9 % 13.5 % 18.2 %

Interest margin 2 1.70 % 1.87 % 1.80 %

Cost/income 3 40.1 % 50.1 % 45.0 %

Balance sheet figures

Loans and advances to customers 48 429 50 900 48 180

Loans and advances to customers including SpareBank 1 Boligkreditt AS 59 872 56 923 59 061

Deposits from customers 35 497 34 078 34 877

Deposits as a percentage of gross lending 4 73.3 % 67.0 % 72.4 %

Growth in loans and advances to customers past 12 months -4.9 % 2.2 % -6.0 %

Growth in loans and advances to customers including SpareBank 1 Boligkreditt AS 5.2 % 7.4 % 4.0 %

Growth in deposits from customers past 12 months 4.2 % 9.6 % 0.9 %

Average assets 5 64 163 64 537 65 169

Total assets 64 086 63 566 64 239

Losses on loans and commitments in default

Losses on loans to customers as a percentage of gross loans 0.17 % 0.42 % 0.38 %

Commitments in default as a percentage of gross loans 0.69 % 0.88 % 0.80 %

Commitments at risk of loss as a percentage of gross loans 0.88 % 0.74 % 0.87 %

Net commitments in default and at risk of loss as a percentage of gross loans 1.13 % 1.27 % 1.19 %

Solidity

Capital adequacy ratio 6 13.44 % 11.73 % 14.26 %

Core capital adequacy ratio 7 11.74 % 10.13 % 11.94 %

Core capital 5 476 4 059 5 534

Equity and related capital resources 6 272 4 699 6 605

Adjusted risk-weighted assets base 46 651 40 069 46 333

Branches and full-time employees

Branches 76 81 76

Manyear 774 811 778

Equity Certificates 31.03.10 31.12.09 31.12.08 31.12.07 31.12.06 31.12.05

Equity Certificate ratio overall 8 34.54 % 34.54 % 34.22 % 32.88 % 34.19 % 35.60 %

Quoted/market price NONG as at 115.00 110.00 44.00 127.00 149.50 157.00

Quotation value 9 2 060 1 970 788 2 135 2 367 2 486

Equity capital per Equity Certificate (NOK) 10 76.48 83.18 72.35 76.19 72.95 60.07

Result per Equity Certificate (Parent Bank) 11 4.17 13.85 4.09 10.00 14.03 11.64

Cash dividend per Equity Certificate to be paid 12 6.75 3.00 9.50 10.00 10.00

P/E (Price/Earnings) 13 6.9 7.9 10.8 12.7 10.7 13.5

P/V (Price/Book Value) 14 1.5 1.3 0.6 1.7 2.0 2.6

Before Equity Certificate split in 2005

9 Quoted price on Oslo Stock Exchange multiplied by numbers of EC's outstanding 10 EC-capital + Premium Fund + Dividend Equalisation Fund, divided by number of EC's outstanding 11 Profit for the period (parent bank) multiplied by Equity Certificates holders' share of the equity capital as at 01.01., in relation to total number of EC's 12 Cash dividend per EC for the accounting year. Resolution made by Main Board of Directors 13 Market price on Oslo Stock Exchange at end of period, divided by result for the period per EC 14 Market price on Oslo Stock Exchange at end of period, divided by book value of equity capital per EC

1 Profit for the period as a percentage of average total equity, calculated as average amount of quarterly equity and per 01.01. and 31.12. 2 Total interest margin as a percentage of average total assets 3 Total costs as a percentage of total net income4 Deposits from customers as a percentage of gross lending(ex. Sp1.Boligkreditt) 5 Average assets are calculated as average assets each quarter and at 01.01. and 31.12. 6 Net subordinated capital as a percentage of calculated risk-weighted balance 7 Core capital as a percentage of calculated risk-weighted balance 8 EC holders share of equity capital as at 01.01.

*)

*)

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31.12.09 1Q09 1Q10 31.03.09 31.03.10 31.03.10 31.03.09 1Q10 1Q09 31.12.09

2 686 848 561 848 561 Interest income 581 867 581 867 2 763

1 591 565 310 565 310 Interest costs 309 565 309 565 1 590

1 095 283 251 283 251 Net interest income 272 302 272 302 1 173

449 99 122 99 122 Fee- and commission income 142 112 142 112 526

87 20 22 20 22 Fee- and commission costs 22 20 22 20 88

5 1 0 1 0 Other operating income 1 22 1 22 24

367 80 100 80 100 Net fee-, commision and other operating income 121 114 121 114 462

22 0 0 0 0 Dividend 9 0 9 0 23

144 21 76 21 76 Income from investments 41 7 41 7 281

278 62 26 62 26 Net gain from investments in securities 26 62 26 62 220

444 83 102 83 102 Net income from financial investments 76 69 76 69 524

1 906 446 453 446 453 Total income 469 485 469 485 2 159

441 99 48 99 48 Personnel costs 61 116 61 116 508

264 69 63 69 63 Administration costs 69 75 69 75 284

34 8 7 8 7 Ordinary depreciation 12 13 12 13 49

153 45 50 45 50 Other operating costs 46 39 46 39 131

892 221 168 221 168 Total costs 188 243 188 243 972

1 014 225 285 225 285 Result before losses 281 242 281 242 1 187

170 52 18 52 18 Losses 21 53 21 53 185

844 173 267 173 267 Result before tax 260 189 260 189 1 002

126 34 51 34 51 Tax 56 37 56 37 143

718 139 216 139 216 Result for the period 204 152 204 152 859

Majority interest 204 152 204 152 858

Minority interests 0 0 0 0 1

Result per Equity Certificate

13.85 2.68 4.17 2.68 4.17 Result per Equity Certificate (Parent Bank) 3.93 2.93 3.93 2.93 16.39

13.85 2.68 4.17 2.68 4.17 Diluted result per Equity Certificate 3.93 2.93 3.93 2.93 16.39

718 139 216 139 216 Result for the period 204 152 204 152 8590 0 0 0 0 Effective part of change in fair market value in cash flow hedging 0 -4 0 0 -170 0 0 0 0 Net change in fair market value of investment in joint ventures 0 0 0 0 0

-6 0 0 -6 0 Net change in fair market value of financial assets available for sale 0 -6 0 -6 -60 0 0 0 0 Tax on other comprehensive income 0 -1 0 0 -5

-6 0 0 -6 0 Other comprehensive income for the period 0 -9 0 -6 -18712 139 216 133 216 Total comprehensive income for the period 204 143 204 146 841

Majority interest 204 142 204 145 840Minority interests 0 1 0 1 1

Totalresult per Equity Certificate

13.73 2.68 4.17 2.56 4.17 Total result per Equity Certificate (Parent Bank) 3.93 2.76 3.93 2.82 16.06

13.73 2.68 4.17 2.56 4.17 Diluted total result per Equity Certificate 3.93 2.76 3.93 2.82 16.06

Tax on other comprehensive income:0 0 0 0 0 Effective part of change in fair market value in cash flow hedging 0 -1 0 0 -50 0 0 0 0 Net change in fair market value of financial assets available for sale 0 0 0 0 00 0 0 0 0 Tax on other comprehensive income 0 -1 0 0 -5

Statement of comprehensive income

Comprehensive income

GroupParent Bank

(Amounts in NOK million)

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31.12.09 31.03.09 31.03.10 31.03.10 31.03.09 31.12.09

Assets2 159 378 1 787 Cash and balances with central banks 1 787 378 2 1592 671 2 503 2 360 Loans and advances to credit institutions 627 798 908

46 431 49 228 46 663 Loans and advances to customers 48 429 50 900 48 180 216 166 203 - Individual write-downs for impaired value 216 176 228 227 211 227 - Collective write-downs for impaired value 238 219 238

45 988 48 851 46 233 Net loans and advances to customers 47 975 50 505 47 714 410 430 344 Shares 519 575 560

8 891 7 654 8 949 Certificates and bonds 8 953 7 661 8 893 561 642 645 Financial derivatives 645 642 561 248 284 243 Investments in Group Companies 0 0 0

1 586 1 108 1 706 Investments in assosiated companies and joint ventures 2 560 1 808 2 396 110 120 105 Property, plant and equipment 463 480 469 11 0 11 Intangible assets 1 1 1

554 671 599 Other assets 556 718 578

63 189 62 641 62 982 Total assets 64 086 63 566 64 239

Liabilities6 869 4 504 7 311 Deposits from credit institutions 7 311 4 502 6 868

34 892 34 107 35 509 Deposits from customers 35 497 34 078 34 87714 162 17 352 12 783 Debt securities in issue 12 783 17 352 14 162

319 419 428 Financial derivatives 428 419 3191 092 1 013 1 414 Other liabilities 1 610 1 163 1 242

0 112 0 Deferred tax liabilities 0 114 31 608 1 399 1 355 Subordinated loan capital 1 355 1 399 1 608

58 942 58 906 58 800 Total liabilities 58 984 59 027 59 079

Equity

896 896 896 Equity Certificate capital 896 896 896

123 123 123 Equity Certificate premium reserve 123 123 123

471 223 351 Dividend Equalisation Fund 351 223 471

2 624 2 221 2 463 The Savings Bank's Fund 2 580 2 314 2 724

133 133 133 Donations 133 133 133

0 0 0 Fund for unrealised gains 0 0 0

0 0 0 Other equity capital 813 693 810

0 139 216 Result for the period 204 152 0

Minority interests 2 5 34 247 3 735 4 182 Total equity 5 102 4 539 5 160

63 189 62 641 62 982 Total liabilities and equity 64 086 63 566 64 239

Statement of financial positionParent Bank

(Amounts in NOK million)

Group

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(Amounts in NOK million) 1Q10 4Q09 3Q09 2Q09 1Q09 4Q08 3Q08 2Q08 1Q08

Interest income 581 584 618 694 867 1 171 1 126 1 049 988

Interest costs 309 286 324 415 565 822 777 736 679

Net interest income 272 298 294 279 302 349 349 313 309

Fee- and commission income 142 145 143 126 112 122 119 126 111

Fee- and commission costs 22 24 21 23 20 22 26 20 16

Other operating income 1 3 - 1 0 22 3 1 6 7

Net fee-, commision and other operating income 121 124 121 103 114 103 94 112 102

Dividend 9 17 1 5 0 2 1 5 8

Income from investments 41 109 97 68 7 220 8 30 19

Net gain from investments in securities 26 103 65 - 10 62 - 195 - 65 - 2 - 115

Net income from financial investments 76 229 163 63 69 27 - 56 33 - 88

Total income 469 651 578 445 485 479 387 458 323

Personnel costs 61 151 124 117 116 107 124 119 113

Administration costs 69 84 59 66 75 79 71 74 80

Ordinary depreciation 12 12 12 12 13 22 13 13 14

Other operating costs 46 29 32 31 39 39 25 31 47

Total costs 188 276 227 226 243 247 233 237 254

Result before losses 281 375 351 219 242 232 154 221 69

Losses 21 44 39 49 53 114 41 25 3

Result before tax 260 331 312 170 189 118 113 196 66

Tax 56 20 50 36 37 18 49 48 28

Minority interests 0 1 0 0 0 1 0 1 0

Result for the period 204 310 262 134 152 99 64 147 38

Profitability

Return on equity capital 15.90 % 25.30 % 22.71 % 11.63 % 12.98 % 8.71 % 5.98 % 14.24 % 2.29 %

Interest margin 1.70 % 1.85 % 1.77 % 1.70 % 1.87 % 2.21 % 2.31 % 2.10 % 2.06 %

Cost/income 40.09 % 42.40 % 39.27 % 50.79 % 50.10 % 51.57 % 60.21 % 51.75 % 78.64 %

Balance sheet figures

Loans and advances to customers 48 429 48 180 49 413 50 473 50 900 51 268 50 414 49 907 49 815

Deposits from customers 35 497 34 877 34 256 36 129 34 078 34 572 32 148 33 793 31 106

Deposits as a percentage of gross lending 73.3 % 72.4 % 69.3 % 71.6 % 67.0 % 67.4 % 63.8 % 67.7 % 62.4 %

Growth in loans and advances to customers including SpareBank 1 Boligkreditt AS 5.2 % 4.0 % 5.6 % 5.1 % 7.4 % 8.0 % 9.0 % 11.0 % 11.2 %

Growth in deposits from customers past 12 months 4.2 % 0.9 % 6.6 % 6.9 % 9.6 % 7.9 % 6.1 % 4.3 % 7.3 %

Average assets 64 163 65 169 65 402 65 678 64 537 61 267 60 207 59 983 59 900

Total assets 64 086 64 239 64 574 67 961 63 566 65 507 60 879 60 148 58 831

Losses on loans and commitments in default

Losses on loans to customers as a percentage of gross loans 0.17 % 0.37 % 0.32 % 0.39 % 0.42 % 0.89 % 0.33 % 0.20 % 0.02 %

Commitments in default as a percentage of gross loans 0.69 % 0.80 % 0.79 % 0.93 % 0.88 % 0.60 % 0.55 % 0.32 % 0.34 %

Commitments at risk of loss as a percentage of gross loans 0.88 % 0.87 % 0.83 % 0.76 % 0.74 % 0.88 % 0.93 % 0.95 % 0.75 %

Net commitments in default and at risk of loss as a percentage of gross loans 1.13 % 1.19 % 1.21 % 1.34 % 1.27 % 1.08 % 1.11 % 0.98 % 0.85 %

Solidity

Capital adequacy ratio 13.44 % 14.26 % 12.07 % 11.08 % 11.73 % 10.56 % 11.26 % 10.93 % 11.71 %

Core capital adequacy ratio 11.74 % 11.94 % 10.08 % 9.65 % 10.13 % 9.06 % 9.35 % 9.44 % 9.54 %

Core capital 5 476 5 534 4 683 3 914 4 059 4 060 3 448 3 415 3 403

Equity and related capital resources 6 272 6 605 5 609 4 494 4 699 4 731 4 151 3 955 4 175

Basel I risk-weighted assets base 46 651 46 333 46 476 40 559 40 069 44 819 36 862 36 191 35 665

Result from the Group's quarterly accounts

9/20

Parent Bank

31.12.08 31.12.09

Equity Certificate capital 896 896

Equity Certificate premium reserve 123 123

Dividend Equalisation Fund 277 471

Set aside dividend - 54 - 121

Share Fund Fair Value Options - 5 - 30

A. Equity attributable to Equity Certificate holders of the Bank 1 237 1 339

The Savings Bank's Fund 2 221 2 623

Allocated dividends to ownerless capital 0 - 161

Donations 133 133

Share Fund Fair Value Options - 10 - 57

B. Total ownerless capital 2 344 2 538

Equity Certificate Ratio overall (A/(A+B)) 34.54 % 34.54 %

ECC ratio overall

(Amounts in NOK million)

(Amounts in NOK million) PCC capitalPremium

Fund

Dividend Equalisation

FundSaving Bank's

FundDonations

FundFair value reserve

Fund for evaluation differences

Period result

Total Majority interests

Minority interests Total equity

Group

Equity at 01.01.09 896 123 277 2 314 133 6 703 4 452 6 4 458

Total comprehensive income for the Period result 152 152 152Other comprehensive income:Net change in fair market value of investment in joint ventures - 10 - 10 - 10Tax on other comprehensive income Total other comprehensive income - 6 - 10 - 16 - 16Total comprehensive income for the period - 6 - 10 152 136 136

Transactions with ownersDividend issue Set aside for dividend payments Reversal of dividend payments Dividend paid - 54 - 54 - 1 - 55Payments from Donations Fund Total transactions with owners - 54 - 54 - 1 - 55

Equity at 31.03.09 896 123 223 2 314 133 693 152 4 534 5 4 539

Equity at 01.01.10 896 123 471 2 724 133 810 5 157 3 5 160

Total comprehensive income for the Period result 204 204 204Other comprehensive income:Net change in fair market value of investment in joint ventures 17 3 20 20Net change in fair market value of financial assets available for sale Tax on other comprehensive income Total other comprehensive income 17 3 20 20Total comprehensive income for the period 17 3 204 224 224

Transactions with ownersDividend issue Set aside for dividend payments 121 Reversal of dividend payments Dividend paid - 120 - 161 - 281 - 1 - 282Payments from Donations Fund Total transactions with owners - 120 - 161 - 281 - 1 - 282

Equity at 31.03.10 896 123 351 2 580 133 813 204 5 100 2 5 102

Quarterly Report - Changes in equity

10/20

31.12.09 31.03.09 31.03.10 31.03.10 31.03.09 31.12.09

844 173 267 Result before tax 260 189 1 002 34 8 7 + Ordinary depreciation 12 13 49 0 0 0 + Write-downs, gains/losses fixed assets 0 0 0

170 52 18 + Losses on loans and guarantees 21 53 185 126 34 51 - Tax 56 37 142

0 0 0 - Group contributions 0 0 0 54 54 281 - Dividends/donations 281 54 54

868 145 - 40 Provided from the year's operations - 44 164 1 040

- 22 181 431 Change in sundry liabilities: + increase/ - decrease 493 117 - 89 485 271 - 129 Change in various claims: - increase/ + decrease - 62 337 545

2 946 201 - 263 Change in gross lending to and claims on customers: - increase/ + decrease - 282 305 2 964-2 232 - 989 8 Change in short term-securities: - increase/ + decrease - 19 -1 008 -2 225

293 - 492 617 Change in deposits from and debt owed to customers: + increase/ - decrease 620 - 494 3053 149 784 442 Change in debt owed to credit institutions: + increase/ - decrease 443 794 3 160

5 487 101 1 066 A. Net liquidity change from operations 1 149 215 5 700

- 17 - 2 - 2 - Investment in fixed assets - 6 - 4 - 33 1 0 0 + Sale of fixed assets 0 0 4

- 458 - 16 - 115 Change in holdings of long-term securities: - increase/ + decrease - 164 - 12 - 600

- 474 - 18 - 117 B. Liquidity change from investments - 170 - 16 - 629

-5 584 -2 394 -1 379 Change in borrowings through the issuance of securities: + increase/ - decrease -1 379 -2 394 -5 584 147 - 62 - 253 Change in Equity Certificate/subordinated loan capital: + increase/ - decrease - 253 - 62 147

-5 437 -2 456 -1 632 C. Liquidity change from financing -1 632 -2 456 -5 437

- 424 -2 373 - 683 A + B + C. Total change in liquidity - 653 -2 257 - 3665 254 5 254 4 830 + Liquid funds at the start of the period 3 067 3 433 3 433

4 830 2 881 4 147 = Liquid funds at the end of the period 2 414 1 176 3 067

Liquid funds are defined as cash-in-hand, claims on central banks,plus loans to and claims on credit institutions.

Statement of cash flowsParent Bank

(Amounts in NOK million)

Group

11/20

Notes

Note 1 - Accounting Principles

The Group’s quarterly accounts have been prepared in accordance with stock exchange rules and regulations and International Financial Reporting Standards (IFRS), including IAS 34 relating to interim reporting. The quarterly accounts do not comprise all information which is required in complete annual accounts and should be read in conjunction with the 2008 Annual Accounts. IAS 1 – presentation of the financial accounts – has been amended in 2009, involving several changes in the presentation of the profit and loss account – now “Statement of comprehensive income” as well as the statement of changes in equity capital. Items which are recognised directly in equity capital shall now also be presented in the Statement of comprehensive income as extended profit and loss account items. In the equity capital statement transactions between the owners and other transactions are kept separate.

In accordance with the rules and regulations dated 16 October 2008 issued by the Ministry of Finance, it is now permitted to reclassify securities in a trading portfolio from the category ‘Market value with any value changes shown through the profit and loss account’ to the category ‘Hold until maturity’ and ‘Loans and claims’. The SNN Group decided to apply such reclassification to large parts of its interest-bearing portfolio with effect from01.07.08. Future assessments within these categories shall be calculated at amortized cost, which means that earlier write-downs of values and interest are to be amortized and included in the profit and loss account as interest income over the remaining life of the items in question. Reference is made to Note 12.

The remaining portfolio of certificates and bonds is assessed at market value through the profit and loss account. To the extent that there is an active market in the securities in question, known market prices are applied in order to establish actual value. For parts of the portfolio (portfolio of CDOs – Collateralised Debt Obligations), observable prices were not available, and the Bank has therefore applied alternative assessment methods according to IFRS 39 in order to determine actual value (‘Fair Market Value’) as at 31.03.10 for the securities involved.In the absence of direct prices for the financial instruments, broad market indexes are used. These follow fluctuations in the credit markets, and are thought to reflect relevant re-pricing of credit risk in relation to pricing of the types of securities in question. Credit indexes used are ‘Itraxx Europe Investment Grade Index’, ‘CDX North America’ Index’ and ‘CMBX North America’ (with relevant rating in relation to the Bank’s portfolio).

Note 2 - Capital Adequacy

New capital adequacy rules and regulations (Basel II – EU’s new directives for capital adequacy) were implemented in Norway with effect from 1 January 2007. SpareBank 1 Nord-Norge has received permission from The Financial Supervisory Authorityof Norway (FSAN) to apply internal calculation methods (Internal Rating-Based Approach) for credit risk from 1 January 2007. With effect from 2007, therefore, the statutory minimum capital adequacy requirement for credit risk will be based on the Bank’s internal assessment of risk. This will make the statutory minimum capital adequacy requirement more risk-sensitive, which means that the capital requirement will to a larger extent correspond to the risk contained in the underlying portfolios in question. The use of internal calculation methods will involve comprehensive demands on the Bank’s organisation, competence, risk models and risk management systems. As a result of transitional rules relating to the new directive mentioned above, IRB-banks would not experience the full impact of the reduced regulatory capital requirements until 2010. Until 2010, banks had to report on a parallel basis, both according to the old capital adequacy calculations and Basel II. During the period 2007-2010, an annual adjustment of the risk-adjusted calculation basis in relation to the old method (socalled correction of 'floor') was permitted. A resolution has now been reached to postpone this issue, and the transition rules for 2009 will continue to apply in 2010.The calculation basis in 2010 therefore amounts to 80 per cent of the calculated basis according to the Basel I rules and regulations.

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31.12.09 31.03.09 31.03.10 31.03.10 31.03.09 31.12.09

Equity and related capital resources4 247 3 735 4 182 Core capital eksclusive minority interests 5 100 4 534 5 157

0 - 139 - 216 Result for the period - 204 - 152 0 0 0 0 Deduction Fund for Evaluation Differences - 813 - 693 - 810 0 0 0 Deduction Fund for unrealised gains 0 0 0

- 121 0 0 Deduction set aside dividend 0 0 - 121 346 406 360 Perpetuan non-call bonds 360 406 346

Share core capital from consolidated financial institutions 1 515 557 1 436- 11 0 - 10 Deduction deffered tax - 1 - 1 - 1

- 678 - 487 - 713 Deduction subordinated capital in other financial institutions (50 %) 0 - 137 0- 80 - 73 - 70 Deduction adjusted expected amount lost (50 %) - 70 - 64 - 82

Core capital adequacy reserve (50 %) - 411 - 391 - 3913 703 3 442 3 533 Core capital 5 476 4 059 5 534

1 262 993 995 Subordinated loan capital 995 993 1 262Share supplementary capital from consolidated institutions 282 239 282

- 678 - 487 - 713 Deduction subordinated capital in other financial institutions (50 %) 0 - 137 0- 80 - 73 - 70 Deduction adjusted expected amount lost (50 %) - 70 - 64 - 82

Core capital adequacy reserve (50 %) - 411 - 391 - 391 504 433 212 Supplementary capital 796 640 1 071

4 207 3 875 3 745 Equity and related capital resources 6 272 4 699 6 605

Risk-weighted assets base20 834 20 060 20 992 Credit risk 21 102 20 060 22 030

0 0 0 Settlement/Delivery risk 3 0 01 239 1 205 1 140 Position,foreign exchange and commodity risks 1 402 1 428 1 3642 302 2 832 3 022 Operational risk 3 820 3 525 3 1177 623 6 474 8 225 Standardised approach 9 609 7 483 7 814

Standardised approach consolidated financial institutions 9 207 7 899 9 215-1 357 - 974 -1 425 Deduction subordinated capital in other financial institutions (100 %) 0 - 274 - 28- 160 - 146 - 140 Deduction adjusted expected amount lost (100 %) - 140 - 128 - 163

Core capital adequacy reserve (100 %) - 822 - 783 - 78230 481 29 451 31 814 Total risk-weighted assets base - IRB 44 181 39 210 42 56739 126 40 355 39 170 Basel I risk-weighted assets base 58 313 50 087 57 91531 301 32 284 31 336 Adjusted risk-weighted assets base 46 651 40 069 46 333

11.83 % 10.66 % 11.27 % Core capital adequacy ratio 11.74 % 10.13 % 11.94 %1.61 % 1.34 % 0.68 % Supplementary capital adequacy ratio 1.71 % 1.60 % 2.31 %

13.44 % 12.00 % 11.95 % Capital adequacy ratio 13.44 % 11.73 % 14.26 %

352 413 301 Non-performing commitments 334 447 386 383 341 395 + Non-performing commitments, impaired 428 375 417 220 166 203 - Individual write-down for impaired value 216 176 228 515 588 493 = Net bad and doubtful commitments 546 646 575

27 - 22 - 13 + Period's change in individual write-down for impaired value - 11 - 23 29

30 16 - 1 + Period's change in collective write-down for impaired value - 1 17 36

+ Period's confirmed losses against which individual write-downs 121 57 34 were previously made 35 58 124

+ Period's confirmed losses against which individual write-downs 5 3 0 were previously not made 0 3 10

13 2 2 - Recoveries in respect of previously confirmed losses 2 2 14 170 52 18 = Total losses on loans 21 53 185

Individual write-downs for impaired value:Individual write-downs for impaired value

193 193 220 on loans and guarantees as at 01.01. 232 203 203- Confirmed losses during the period on loans and guarantees,

121 57 34 against which individual write-downs for impaired value has prev. bee 35 58 127 48 40 35 - Reversal of previous years' individual write-downs for impaired value 35 40 49

+ Increase in write-downs for impaired value for commitments against which 25 20 3 individual write-downs for impaired value were previously made 6 20 28

+ Write-downs for impaired value for commitments against which no 171 54 53 individual write-downs for impaired value was previously raised 53 55 177

= Individual write-downs for impaired value 220 170 207 on loans and guarantees * 221 180 232

Collective write-downs for impaired value:Collective write-downs for impaired value against losses on loans

196 196 227 and guarantees as at 01.01. 238 204 204+ Period's collective write-downs for impaired value against losses

31 15 0 on loans and guarantees 0 15 34= Collective write-downs for impaired value against losses on loans,

227 211 227 and guarantees 238 219 238

*Individual write-downs for impaired value on guarantees, NOK 4 million, are included in the Balance Sheet as liabilities under 'Provisions against liabilities'.

Group

Note 5 - Individual- and collective write-downs for impaired value

Note 4 - Losses incorporated in the accounts

Note 3 -Net bad and doubtful commitments

Parent Bank

(Amounts in NOK million)

13/20

31.12.09 31.03.09 31.03.10 31.03.10 31.03.09 31.12.09

0 0 0 Central government administration and social security administration 0 0 1 140 289 171 Counties and municipalities 204 351 170

2 420 2 492 2 352 Agriculture, forestry, fisheries, hunting and fish farming 2 480 2 625 2 545 125 148 128 Production of crude oil and natural gas 128 148 125

1 116 1 296 1 360 Industry and mining 1 483 1 382 1 2402 109 1 335 2 203 Building and construction, power and water supply 2 495 1 616 2 4081 195 1 706 1 211 Wholesale and retail trade; hotel and restaurant industry 1 374 1 868 1 355 419 120 638 International shipping and pipeline transport 638 126 419

7 443 8 027 7 248 Financing, property management and business services 7 108 7 879 7 2961 463 1 538 1 534 Transport and communication 1 852 1 847 1 795 694 801 686 Other service industries 842 848 789 286 150 256 Insurance, fund management and financial services 94 44 157

28 970 31 269 28 826 Retail banking market 29 681 32 109 29 827 51 57 50 Foreign retail banking market 50 57 53

46 431 49 228 46 663 Gross lending 48 429 50 900 48 180

0 0 0 Central government administration and social security administration 0 0 0 0 0 0 Counties and municipalities 0 0 0

50 20 1 Agriculture, forestry, fisheries, hunting and fish farming 1 20 50 0 0 3 Production of crude oil and natural gas 3 0 0

24 1 0 Industry and mining 0 1 25 9 3 1 Building and construction, power and water supply 2 3 9 6 2 1 Wholesale and retail trade; hotel and restaurant industry 1 2 6 1 1 0 International shipping and pipeline transport 0 1 1

33 4 5 Financing, property management and business services 5 5 34 2 - 1 0 Transport and communication 1 - 2 7 2 0 5 Other service industries 5 0 3 0 0 0 Insurance, fund management and financial services 0 0 0

25 9 4 Retail banking market 5 10 30 0 0 0 Foreign retail banking market 0 0 0 0 0 0 Non individual specific write-downs public market 0 0 0

31 15 0 Collective write-downs public market 0 15 31 0 0 0 Collective write-downs retail market 0 0 3 0 0 0 Unallocated market 0 0 0

183 54 20 Gross losses 23 55 199 13 2 2 Recoveries from previously written off losses 2 2 14

170 52 18 Net losses 21 53 185

622 566 1 836 Central government administration and social security administration 1 836 566 6225 532 4 734 4 779 Counties and municipalities 4 779 4 734 5 532 763 1 079 940 Agriculture, forestry, fisheries, hunting and fish farming 940 1 079 763

1 2 3 Production of crude oil and natural gas 3 2 1 412 512 387 Industry and mining 387 512 412

1 587 1 653 1 673 Building and construction, power and water supply 1 673 1 653 1 5871 322 1 261 1 233 Wholesale and retail trade; hotel and restaurant industry 1 233 1 261 1 322

23 11 22 International shipping and pipeline transport 22 11 232 773 3 252 2 690 Financing, property management and business services 2 681 3 238 2 764 844 599 785 Transport and communication 785 599 844 346 450 447 Insurance, fund management and financial services 444 435 340

1 758 1 949 1 807 Other service industries 1 807 1 949 1 75818 663 17 802 18 655 Retail banking market 18 655 17 802 18 663

246 237 252 Foreign retail banking market 252 237 24634 892 34 107 35 509 Deposits from customers 35 497 34 078 34 877

Note 8 - Deposits broken down by sector and industry

Group(Amounts in NOK million)

Note 6 - Loans broken down by sector and industry

Note 7 - Losses broken down by sector and industry

Parent Bank

14/20

Parent Bank Group

31.12.09 31.03.09 31.03.10 31.03.10 31.03.09 31.12.09

1 1 0 Repossessed assets 0 1 1

285 451 258 Accrued income 268 460 292

33 35 16 Prepayments 25 44 44

235 184 325 Other assets 263 213 241

554 671 599 Total other assets 556 718 578

471 652 582 Costs incurred 749 757 586

82 65 5 Provisioning against incurred liabilities and costs 27 70 107

539 296 827 Other liabilities 834 336 549

1 092 1 013 1 414 Total other liabilities 1 610 1 163 1 242

Note 10 - Other assets

Note 11 - Other liabilities

(Amounts in NOK million)

Note 9 - Subsidiaries

(Amounts in NOK 1 000) EquityShare of Eq.% 31.03.10 31.03.09 31.12.09 31.03.10 31.03.09 31.12.09

SpareBank 1 Finans Nord-Norge AS 100 11 280 34 530 64 912 233 166 256 416 286 798

SpareBank 1 Nord-Norge Invest AS 100 6 557 -2 091 -64 779 864 53 441 -9 274

Eiendomsdrift AS 100 998 662 2 075 47 751 55 804 44 756

EiendomsMegler 1 Nord-Norge AS 100 - 281 83 3 783 17 054 13 576 17 334

SpareBank 1 Nord-Norge Securities ASA 79.25 587 - 22 2 087 4 030 5 485 10 168

Sparebanken Factoring 0 0 638 637 0 0 0

BBL Eiendomsmegling AS 0 0 0 0 0 0 0

Profit from ordinary operations after tax

Sparebanken Factoring was sold at 31.03.09. BBL Eiendomsmegling AS are included in accounts for EiendomsMegler 1 Nord-Norge AS.

Note 12 - Investment in bonds

(Amounts in NOK million) 01.07.08 31.12.08 30.06.09 31.12.09 31.03.10Hold until maturityBook value 3 109 3 498 3 058 2 650 2 281Nominal value (nominal amount) 3 182 3 588 3 111 2 689 2 315Theoretical market value 3 109 3 358 2 942 2 623 2 266

Loans and claimsBook value 698 739 682 629 620Nominal value (nominal amount) 737 809 751 656 645Theoretical market value 698 675 646 599 597

Total book value 3 807 4 237 3 740 3 279 2 901

As a result of extraordinary market conditions, parts of the Bank’s ordinary securities portfolio became illiquid in 2008. Following the changes in international accounting standards in October 2008 (see note 1), the SNN Group decided to reclassify parts of the Bank’s bond portfolio as at 01.07.09 from the category ‘Market value with inclusion of value changes over the profit and loss account’ to the categories ‘Hold until maturity’ and ‘Loans and claims’ as the securities in question no longer was expected to be sold before maturity. In the category ‘Hold until maturity’ the Bank includes quoted securities, whereas unquoted securities has been put into the category of ‘Loans and claims.'In the categories ‘Hold until maturity’ and ‘Loans and claims’ the securities are assessed at amortized cost. After the reclassification, the writedowns made earlier will be reversed over the portfolio’s remaining life, which on average is 1,86 year as at 31.03.10, and included in the profit and loss account as interest income. For the last half year of 2008 and the year 2009, such inclusion of income amounts to NOK 44 million. As at 31.03.10 the amount booked as income is NOK 5 million. If the reclassification had not been made, the Group would have charged NOK 212 million to the profit and loss account in the third and fourth quarter of 2008 due to increased credit spreads. This unrealised loss would have been reduced to NOK 10 as at 31.03.10. It was necessary to apply a NOK 46 million write-down due to the permanent impairment of value in this portfolio as at 31.12.08. A further NOK 17 million write-down has been made on this part of the portfolio as at 31.12.09. No further write-down has been made in 2010. The portfolio had an NOK 478 million unrealised loss on foreign exchange as at 31.12.08. As at 31.12.09 the loss was NOK 3 million and as at 31.03.10 the unrealised loss is NOK 44 million.

15/20

Parent Bank and Group(Amounts in NOK million)

Securities issued31.12.09 31.03.09 31.03.10

Certificates and other short-term borrowings 355 Bond debt 14 162 16 997 12 783Total debt securities in issue 14 162 17 352 12 783

Changes in securities issued:

Statement of financial position Issued

Matured/redeemed

Exchange rate

movementsOther

adjustments

Statement of financial

position31.12.09 31.03.10 31.03.10 31.03.10 31.03.10 31.03.10

Certificates and other short-term borrowings Bond debt 14 162 837 -2 042 - 172 - 2 12 783Total debt securities issued 14 162 837 -2 042 - 172 - 2 12 783

Subordinated loan capital and perpetual subordinated loan capital securities

31.12.09 31.03.09 31.03.10Perpetual subordinated loan capital securities2033 6 months Libor + margin (US$ 60 mill.)(call opt. 2013) 370 370 370Perpetual subordinated loan capital securities - currency - 24 36 - 24Total perpetual subordinated loan capital securities 346 406 346

Subordinated loan capitalSubordinated loan capital with definite maturities 1 262 993 1 262Total subordinated loan capital 1 262 993 1 262

Total subordinated loan capital and perpetual 1 608 1 399 1 608

Changes in subordinated loan capital and perpetual subordinated loan capital securities:

Statement of financial position Issued

Matured/redeemed

Exchange rate

movementsOther

adjustments

Statement of financial

position31.12.09 31.03.10 31.03.10 31.03.10 31.03.10 31.03.10

Subordinated loan capital with definite maturities 1 262 - 259 - 8 995Perpetual subordinated loan capital securities 346 10 4 360subordinated loan capital securities 1 608 - 259 2 4 1 355

Note 13 - Securities issued and subordinated loan capital

16/20

Note 14 - Financial derivatives

Parent Bank and Group(Amounts in NOK million)

Fair value hedging transactions 31.03.10 31.03.09 31.12.09Net loss charged to the statement of comprehensive income in respect of hedging instruments in connection with actual value - 2 - 11 102Total gain from hedging objects relating to the hedged risk 3 28 - 74

Total fair value hedging transactions

(Amounts in NOK million)

Fair value through statement of comprehensive income 31.03.10 31.03.09 31.12.09Fair value Fair value Fair value

Foreign currency instruments Contract Assets Liabilites Contract Assets Liabilites Contract Assets LiabilitesForeign exchange financial derivatives (forwards) 2 237 41 36 4 653 18 20 3 367 28 38Currency swaps 7 666 148 68 9 525 21 11 5 934 103 34Currency options Total non-standardised contracts 9 903 189 104 14 178 39 31 9 301 131 72Standardised foreign currency contracts (futures) Total foreign currency instruments 9 903 189 104 14 178 39 31 9 301 131 72

Interest rate instruments Interest rate swaps (including cross currency) 15 337 174 280 14 018 228 353 15 743 134 196Short,-term interest rate swaps (FRA) Other interest rate contracts 686 2 4 1 607 10 17 173 5 9Total non-standardised contracts 16 023 176 284 15 625 238 370 15 916 139 205Standardised interest rate contracts (futures) Total interest rate instruments 16 023 176 284 15 625 238 370 15 916 139 205

Hedging of funding loans

Foreign currency instruments Foreign exchange financial derivatives (forwards) Currency swaps Total, non-standardised contracts Standardised foreign currency contracts (futures) Total foreign currency instruments

Interest rate instruments Interest rate swaps (including cross currency) 6 948 280 40 7 102 365 18 6 808 291 42Short-term interest rate swaps (FRA) Other interest rate contracts Total, non-standardised contracts 6 948 280 40 7 102 365 18 6 808 291 42Standardised interest rate contracts (futures) Total interest rate instruments 6 948 280 40 7 102 365 18 6 808 291 42

Total interest rate instruments 22 971 456 324 22 727 603 388 22 724 430 247Total foreign currency instruments 9 903 189 104 14 178 39 31 9 301 131 72Total 32 874 645 428 36 905 642 419 32 025 561 319

The Bank's main Board of Directors has determined limits for maximum risk for the Bank's interest rate positions. Routines have been established to ensure that positions are maintained within these limits.

Interest rate swaps: Commitments to exchange one set of cash flow for another over an agreed period. Foreign exchange derivatives:Agreements to buy or sell a fixed amount of currency at an agreed future date at a rate of exchange which has been agreed in advanceCurrency swaps:Agreements relating to the swapping of currency- and interest rate terms and conditions, periods and amounts having been agreed in advance.Interest rate- and currency swap agreements:Agreements involving the swapping of currency- and interest rate terms and conditions, periods and amounts having been agreed in advance. Options:Agreements where the seller gives the buyer a right, but not an obligation to either sell or buy a financial instrument or currency at an agreed date or before, and at an agreed amount.

SpareBank 1 Nord-Norge enters into hedging contracts with respected Norwegian and foreign banks in order to reduce its own risk. Financial derivatives transactions are related to ordinary banking operations and are done in order to reduce the risk relating to the Bank’s funding loans from the financial markets, and in order to cover and reduce risk relating to customer-related activities. Only hedging transactions relating to the Bank’s funding loan operations are defined as ‘fair value hedging’ in accordance with IFRS standard IAS 39. Other hedging transactions are defined as ordinary accounts-related hedging. The Bank does not use cash flow hedging.

17/20

Note 15 - Business Areas

Group31.03.10

(Amounts in NOK million)Retail Corporate Leasing Unallocated Total

Net interest income 129 110 25 8 272

Net fee- and commission income 54 46 0 21 121

Other operating income 0 0 0 76 76

Operating costs 91 77 7 13 188

Result before losses 92 79 18 92 281

Losses 4 14 3 0 21

Result before tax 88 65 15 92 260

Loans and advances to customers 28 876 17 787 2 233 - 467 48 429

Individual write-downs for impaired value on loans and advances to customers - 34 - 173 - 13 4 - 216

Collective write-downs for impaired value on loans and advances to customers - 59 - 168 - 11 0 - 238

Other assets 0 0 16 16 095 16 111

Total assets per business area 28 783 17 446 2 225 15 632 64 086

Deposits from customers 18 907 16 602 0 - 12 35 497

Other liabilities and equity capital 0 0 2 225 26 364 28 589

Total equity and liabilities per business area 18 907 16 602 2 225 26 352 64 086

31.03.09

Net interest income 157 116 22 8 303

Net fee- and commission income 56 41 1 - 6 92

Other operating income 0 0 25 65 90

Operating costs 127 94 8 14 243

Result before losses 86 63 40 53 242

Losses 7 44 2 0 53

Result before tax 79 19 38 53 189

Loans and advances to customers 31 325 17 902 2 108 - 435 50 900

Individual write-downs for impaired value on loans and advances to customers - 35 - 135 - 10 0 - 180

Collective write-downs for impaired value on loans and advances to customers - 58 - 153 - 8 0 - 219

Other assets 0 0 19 13 046 13 065

Total assets per business area 31 232 17 614 2 109 12 611 63 566

Deposits from customers 18 039 16 068 0 - 29 34 078

Other liabilities and equity capital 0 0 2 109 27 379 29 488

Total equity and liabilities per business area 18 039 16 068 2 109 27 350 63 566

Management has made an assessment of which business areas are deemed reportable with respect to form of distribution, products and customers. The primary format of reporting takes as a starting point risk and yield profiles of various assets and reporting is divided into privatecustomers (Retail Banking Market), Corporate / Public Market and leasing. Apart from what is included in this list, the Group does not have anycompanies or segments which are of significant importance. The Bank operates in a limited geograpfical area and reporting along the lines of geograpfic segments provides little additional information.

18/20

Trading statistics

Price trend NONG

NOK

2 57

6 47

6

422

441

2 11

8 73

8

421

873

396

161

568

417

181

045

281

907

366

282

275

475

504

949

1 29

7 29

1

1 28

6 75

7

781

553

652

316

1 02

6 88

7

0

500 000

1 000 000

1 500 000

2 000 000

2 500 000

3 000 000

dec

.08

jan.0

9

feb.

09

mar

.09

apr.

09

may

.09

jun.0

9

jul.09

aug.0

9

sep.0

9

oct.

09

nov

. 09

dec

.09

jan. 10

feb.

10

mar

. 10

30

40

50

60

70

80

90

100

110

120

dec

.08

jan.0

9

feb.0

9

mar

.09

apr.

09

mai

.09

jun.0

9

jun.0

9

jul.09

aug.0

9

sep.0

9

oct.

09

nov

. 09

dec

.09

jan. 10

feb.

10

mar

. 10

Note 16 - Primary Capital Certificates (PCCs)

The 20 largest PCC holders as at 31.03.10

Number Share of PCC Holders of PCCs PCC CapitalPareto Aksjer Norge 1 031 510 5.76%Pareto Aktiv 506 628 2.83%MP Pensjon 418 279 2.34%Frank Mohn AS 381 362 2.13%Tonsenhagen Forretningssentrum AS 319 126 1.78%Framo Development AS 238 798 1.33%Grunnfond Invest AS 219 821 1.23%Sparebanken Rogalands Pensjonskasse 195 406 1.09%Forsvarets Personellservice 174 334 0.97%Pareto VPF 163 020 0.91%Karl Ditlefsen, Tromsø 154 359 0.86%Sparebankstiftelsen 153 478 0.86%Trond Mohn 143 279 0.80%Fred Olsen & Co’s pensjonskasse 121 787 0.68%Terra Utbytte Verdipapirfond 116 471 0.65%Troms Kraft Invest AS, Tromsø 115 113 0.64%Lærdal Finans A/S 114 782 0.64%Ringerike Sparebank 102 852 0.57%Bodø Kommune, Bodø 83 102 0.46%Norges Råfisklag, Tromsø 82 402 0.46%TOTAL 4 835 909 27.00%

Dividend policy

Through its policy regarding owners of its capital and its dividend policy, the bank intends to ensure that its equity certificates are regarded as attractive and liquid financial instruments. The bank's objective is to manage the group's resources in such a way that, compared to comparable investments and taking into account the bank's risk profile, a good, long-term and competitive return on the bank's equity is achieved. For the owners of the bank's equity certificates, the return will be in the form of cash dividends and changes in the market price of the certificates. SpareBank 1 Nord-Norge's equity comprises two principal groups: the equity capital owned by the owners of the bank's equity certificates, and the equity capital that is socially owned. The bank's aim is to ensure that, over time, it will be a savings bank with a considerable element of socially-owned capital. Furthermore, the bank's goal is to treat the owner groups equitably, in accordance with the intentions in the current legislation. This implies that the bank will seek to avoid undesirable equity dilution effects that result from inequitable treatment of the two groups of owners. The profit for the individual year is to be split proportionately between the owner groups in relation to their relative share of the bank's equity. Dividends will, as far as possible, be set so that each of the groups has at its disposal equally large relative shares of the profit as a dividend. Dividends will comprise cash payments to equity certificate holders and funds allocated to reserves for donations and endowments etc. The bank's aim is to distribute a total of up to 50 per cent of the profit for the year in the form of dividends.

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SpareBank 1 Nord-NorgeP.O. Box 6800N-9298 Tromsø

Telephone: (+47 915) 02244Web: www.snn.no

E-mail: 02244@snn.no

Org.number: 952 706 365Headoffice: Storgata 65, Tromsø

SpareBank 1 Nord-Norge Main Board of Directors:Kjell Olav Pettersen, Tromsø (Chairman)Erik Sture Larre jr., Oslo (Deputy Chairman)Roar Dons, TromsøElisabeth Johansen, StamsundAnn-Christine Nybacka, BrønnøysundPål Andreas Pedersen, BodøAnita Persen, AltaVivi Ann Pedersen, Tromsø (elected from the employees)Gunnar Kristiansen, Sortland (elected from the employees, deputy)

Members of the Group Management Committee:Hans Olav Karde (Chief Executive Officer)Oddmund Åsen (Deputy Chief Executive Officer)Liv Bortne Ulriksen (Senior Group General Manager Corporate Banking Market)Stig Arne Engen (Senior Group General Manager Retail Banking Market)Rolf Eigil Bygdnes (Senior Group General Manager CFO)Elisabeth Utheim (Senior Group General Manager Support Functions)Geir Andreassen (Senior Group General Manager Risk Management)Kjell Kolbeinsen (Director, Information and Public Relations)

Investor RelationsRolf Eigil Bygdnes (Senior Group General Manager CFO)Telephone +47 776 22211e-mail: rolf.eigil.bygdnes@snn.no

Financial CalendarSupervisory Board Meeting 17 March 2010PCC noted exsclusive dividend 18 March 2009

Interim reports and accounts 2010:1st quarter 28 April 20102nd quarter 11 August 20103rd quarter 28 October 20104th quarter At the beginning of February 2011

Information

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