The Board of Directors of SpareBank 1 SR-Bank recommends that the Supervisory Board resolves a conversion to a limited liability company (ASA)

Reference is made to the Stock Exchange report of 28 June 2010 where the Supervisory Board requested that the Board of Directors evaluate the pros and cons of a possible conversion of SpareBank 1 SR-Bank into a limited liability savings bank.


SpareBank 1 SR-Bank has a strong position in its market. Profitability has been good for many years and the group is extremely well positioned for further profitable growth. However, access to capital may be a scarcity factor.  

"The region has seen substantial growth over the last 15 to 20 years. The bank's performance reflects this, total assets increasing from NOK 18 billion in 1991 to almost NOK 140 billion in 2010," says Terje Vareberg, SpareBank 1 SR-Bank's Chief Executive Officer. 

The Board of Directors has made a concrete overall assessment of all relevant issues affecting the bank. The Board has stressed maintaining the bank's regional roots, and that the savings bank activities shall continue to be developed in a close interaction with the region's social and business development

"We have succeeded in combining growth, an expansion of the product range and the geographic catchment area with significant and ongoing restructuring. This development has been entirely dependent on a growing market, combined with ready access to capital," Terje Vareberg concludes.

Based on the current capital situation and a total weighing up of interests, the Board of Directors has concluded that a reorganisation of the activities into a limited liability company is best suited for continuing and developing the bank's business as a whole. The Board has stressed in particular the need to deal with sudden changes and major fluctuations in the capital market in best possible manner.  

The Board of Directors has therefore decided to recommend that the Supervisory Board resolves a conversion to a limited liability company (ASA). Any such conversion shall absorb and continue the regional roots, the savings bank traditions and the bank's history.

A conversion to a limited liability savings bank takes place by establishing a public limited company that acquires the banking licence, and takes SpareBank 1 SR-Bank's assets and liabilities. Owners of equity capital certificates will have these converted into a similar number of shares. Simultaneously, a savings bank foundation is established that becomes the owner of the shares in the new limited liability savings bank that are not assigned to existing owners.

On establishment, the savings bank foundation will own approximately one-third of the bank's shares. It will be the bank's largest owner by far. Pursuant to law, the objects of the foundation will be to act as a long-term owner of the limited liability savings bank and to engage in charitable activities. 

The Supervisory Board will deal with the matter at its ordinary meeting on 25 November 2010. Any subsequent conversion calls for the approval of the authorities.

For further details, please contact:

Terje Vareberg, Chief Executive Officer, telephone +47 911 00 448
Inger Reinertsen, Chief Financial Officer, telephone +47 909 95 033
Thor-Christian Haugland, Executive Vice President Communications, telephone + 47 480 31 633
Vidar Torsøe, Director IR, telephone + 47 970 80656

This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)