Note 11 - Losses on loans and guarantees

 

Parent Bank  
  2016 2015
Losses on loans and guarantees (NOK million) RM CM Total RM CM Total
Period’s change in individual write-downs 0 449 450 2 9 11
Period’s change in collective write-downs - -40 -40 - 80 80
Actual losses on loans previously written down 8 34 42 7 58 65
Confirmed losses on loans not previously written down 10 49 59 8 4 12
Recoveries on previously written down loans, guarantees etc. -6 -3 -8 -6 -3 -9
Total  13 490 502 11 148 159
             
             
  2016 2015
Individual write-downs (NOK million) RM CM Total RM CM Total
Individual write-downs to cover loss on loans, guarantees etc. at 1 jan 28 148 176 25 140 165
- Confirmed losses in the period on loans, guarantees etc. previously subject to individual write down 8 34 42 7 58 65
- Reversal of previous years’ write-downs 3 36 39 2 40 43
+ Increase in write-downs of commitments previously subject to individual write down 2 6 8 1 21 22
+ write-downs of loans not previously subject to individual write down  4 518 523 12 85 96
Individual write-downs to cover loss on loans, guarantees etc at 31 Dec *) 24 602 625 28 148 176
             
             
  2016 2015
Collective write-downs (NOK million) RM CM Total RM CM Total
Collective write-downs to cover loss on loans, guarantees at 01.01 90 268 358 90 188 278
Period’s collective write-downs to cover loss on loans, guarantees etc - -40 -40 - 80 80
Collective write-downs to cover loss on loans and guarantees at 31 Dec 90 228 318 90 268 358

 

Losses specified by sector and industry (NOK million) 2016 2015
Agriculture, forestry, fisheries and hunting  6 0
Industry and mining 15 2
Building, construction, power and water supply 6 19
Wholesale and retail trade, hotel og restaurant industry 9 6
Other transport and communication 490 24
Financing, property management and business services 16 15
Private sector 1 12
Collective write-downs, corporate -40 80
Collective write-downs, retail - -
Losses on loans to customers 502 159
     
  31 Dec 16 31 Dec 15
Total defaults (NOKm) RM CM Total RM CM Total
Loans in default for more than 90 days 144 29 173 133 38 171
- Individual write-downs 17 18 36 15 8 23
Net defaults 127 11 138 119 30 148
Provison rate 12 % 62 % 21 % 11 % 22 % 13 %
Problem loans            
Problem loans (not in default) 19 1,435 1,453 45 341 387
- Individual write-downs 6 584 590 13 139 152
Net problem loans 13 851 863 32 202 234
Provison rate 33 % 41 % 41 % 29 % 41 % 39 %

Interest recognised on defaulted and doubtful exposures totals NOK 57.8 million for the parent bank (NOK 40.2 million ).

The realisable value of the collateral backing individually written-down loans totals NOK 844.2 million(NOK 195.2 million) for the
Parent bank at 31 December 2016

Group      
  2016 2015
Losses on loans and guarantees (NOK million) RM CM Total RM CM Total
Period’s change in individual write-downs 0 454 454 3 9 11
Period’s change in collective write-downs 4 -42 -38 2 80 82
Actual losses on loans previously written down 8 36 44 8 59 67
Confirmed losses on loans not previously written down 14 50 64 13 7 21
Recoveries on previously written down loans, guarantees etc. -6 -3 -9 -8 -4 -12
Total  21 495 516 18 151 169
             
             
  2016 2015
Individual write-downs (NOK million) RM CM Total RM CM Total
Individual write-downs to cover loss on loans, guarantees etc. at 1 Jan 31 153 184 27 146 173
- Confirmed losses in the period on loans, guarantees etc. previously subject to individual write down 8 36 44 8 59 67
- Reversal of previous years’ write-downs 3 36 39 3 42 46
+ Increase in write-downs of commitments previously subject to individual write down 2 6 8 1 21 22
+ write-downs of loans not previously subject to individual write down  4 523 528 14 87 102
Individual write-downs to cover loss on loans and guarantees 31 Dec 27 611 638 31 153 184
             
             
  2016 2015
Collective write-downs (NOK million) RM CM Total RM CM Total
Collective write-downs to cover loss on loans, guarantees at 1 Jan 96 281 376 94 201 295
Period’s collective write-downs to cover loss on loans, guarantees etc 4 -42 -38 2 80 82
Collective write-downs to cover loss on loans and guarantees at 31.12 100 239 339 96 281 376
             
Losses specified by sector and industry (NOK million) 2016   2015
Agriculture, forestry, fisheries and hunting  6 0
Industry and mining 16 4
Building and construction, power and water supply 7 19
Wholesale and retail trade, hotel og restaurant industry 9 4
Other transport and communication 494 26
Financing, property management and business services 16 16
Abroad and others 1 2
Private sector 4 12
Collective write-downs, corporate -42 84
Collective write-downs, retail 4 2
Losses on loans to customers 516 169
     
  31 Dec 16   31 Dec 15  
Total defaults (NOKm) RM CM Total RM CM Total
Loans in default for more than 90 days 176 38 214 155 50 205
- Individual write-downs 20 19 39 17 9 26
Net defaults 156 18 174 138 41 179
Provison rate 12 % 51 % 18 % 11 % 18 % 13 %
Problem loans            
Problem loans (not in default) 19 1,455 1,474 49 350 399
- Individual write-downs 6 592 599 14 144 158
Net problem loans 13 863 875 34 206 241
Provison rate 33 % 41 % 41 % 30 % 41 % 40 %

Interest taken to income on defaulted and doubtful exposures totals NOK 65.7 million (NOK 45.0 million) for the Group.

The realisable value of the collateral backing individually written-down loans totals NOK 853.6 million (NOK 200.7 million) for
the Group at 31 December 2016

Financial results

Annual report and notes

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