Note 13 - Loans and advances to customers

Parent bank    Group
2009 2010 2011 (NOK million) 2011 2010 2009
             
       Loans specified by type      
- - -  Financial lease  1,920 2,078 2,187
7,760 10,171 10,697  Bank overdraft and operating credit  10,697 10,171 7,388
1,840 2,596 3,065  Building loan  2,486 2,036 1,840
49,704 54,675 57,030  Amortizing loan  58,001 55,562 50,367
59,304 67,443 70,793  Gross loans to and receivables from customers  73,105 69,847 61,782
             
-466 -460 -424  Impairments  -462 -512 -507
58,838 66,983 70,369  Net loans to and advances to customers (amortised cost)  72,643 69,336 61,275
             
       Lending specified by markets       
29,117 31,187 32,165  Retail market  33,141 32,020 29,745
30,158 36,194 38,565  Corporate market  39,872 37,726 31,974
28 61 63  Public sector  92 101 64
59,304 67,443 70,793  Gross loans and advances 73,105 69,847 61,782
             
-466 -460 -424  Impairments  -462 -512 -507
58,838 66,983 70,369  Net loans and advances  72,643 69,336 61,275
             
       Of this subordinated loan capital       
48 48 48  Subordinated loan capital other financial institutions  48 48 48
48 48 48  Subordinated loan capital shown under loans to customers  48 48 48
             
      Adv. on this      
661 511 572 Loans to employees 715 634 804
             
      In addition:       
15,647 17,818 22,126 Loans transferred to SpareBank 1 Boligkreditt  22,126 17,818 15,647
342 562 693   Of which loans to employees 869 708 447

Interest rate subsidies on loans to employees are included in net interest income. The lending rate for employees is 75 per cent of the best mortgage rate for other customers.  

Specified by risk group

The Bank calculates default probabilities for all customers in the loan portfolio at the loan approval date. It does this on the basis of key figures on earnings, impairment and behaviour. Default probability is used as a basis for risk classification of the customer. Further, risk classification is used to assign each customer to a risk group. See note 16 for risk class classification.

Customers are rescored in the Bank’s portfolio system on a monthly basis.

Exposures are monitored with a basis in the exposure’s size, risk and migration. Risk pricing of business exposures is done with a basis in expected loss and economic capital required for each exposure. Expected annual average net loss is calculated for the next 12 months. Expected loss is within the limits set for maximum expected loss by the Board of Directors.

Collectively assessed write-downs are calculated with a basis in customers who have shown negative migration since the loan approval date but for whom no individual write-down has been assessed.The Bank uses macro-based stress tests to estimate write-downs required as a result of objective events that were not reflected in portfolio quality at the time of measurement.

Historical data are restated in accordance with new calculations of estimated defaults. See note 3, Risk factors, and the section on probability of default.

 

Parent bank   Group
2009 2010 2011 Total contracts 2011 2010 2009
  29,758   35,521 39,296 Lowest risk 39,478   35,847 31,369
  18,056   18,030 20,185 Low risk 20,891   17,994 18,832
  14,722   20,675 21,743 Medium risk 22,177   21,876 14,376
  4,206 2,364 2,063 High risk 2,494   2,781 4,311
  1,745 2,500 1,811 Highest risk 2,168   2,961 1,854
710   595 463 Default and written down * 542   710   820
  69,197   79,685 85,561 Total 87,750   82,170 71,562
             
             
             
Parent bank   Group
2009 2010 2011 Gross loans 2011 2010 2009
  25,049   29,106 32,390 Lowest risk 32,571   29,412 26,558
  15,796   15,508 16,826 Low risk 17,524   15,431 16,523
  12,493   17,783 17,496 Medium risk 18,069   19,028 12,432
  3,624 2,086 1,903 High risk 2,329   2,477 3,722
  1,655 2,373 1,723 Highest risk 2,078   2,810 1,756
687   586 455 Default and written down * 534   689   791
  59,304   67,443 70,793 Total 73,105   69,847 61,782
             
      * Exposures subject to individual impairment write down are placed in default category.      
             
             
             
Parent bank   Group
2009 2010 2011 Expected annual average net loss 2011 2010 2009
  5 4 5 Lowest risk 5   5 6
  22   15 17 Low risk 18   15 23
  50   86 77 Medium risk 79   88 51
  73   25 20 High risk 23   27 74
  35   54 47 Highest risk 53   62 48
  21   100 25 Default and written down 34   115 42
207   285 190 Total 211   312   244

The best secured home mortgage loans are transferred to SpareBank 1 Boligkreditt, established by the banks in the SpareBank 1 Alliance. Commission (margin) on these loans is taken to income in the income statement under commission income.

The table below shows the risk classification of these exposures.

Parent bank   Group
2009 2010 2011 Total contracts SpareBank 1 Boligkreditt 2011 2010 2009
10,193 10,752 21,681 Lowest risk 21,681 10,752 10,193
5,977 7,339 2,409 Low risk 2,409  7,339 5,977
 1,051 1,508 596 Medium risk 596  1,508 1,051
  94   148 136 High risk 136   148 94
  67   86 76 Highest risk 76   86 67
  -  2 2 Default and written down 2   2 - 
  17,382   19,836 24,901 Total 24,901   19,836 17,382
             
             
             
Parent bank   Group
2009 2010 2011 Gross loans SpareBank 1 Boligkreditt 2011 2010 2009
 8,962 9,295 18,927 Lowest risk 18,927  9,295 8,962
 5,523 6,843 2,393 Low risk 2,393  6,843 5,523
 1,002 1,446 593 Medium risk 593  1,446 1,002
  93   146 136 High risk 136   146 93
  66   86 76 Highest risk 76   86 66
  -  2 2 Default and written down 2   2 - 
  15,647   17,818 22,126 Total 22,126   17,818 15,647

Specified by sector and industry

Parent bank   Group
2009 2010 2011 Total contracts 2011 2010 2009
  31,457   33,751   34,864 Wage earners   35,851 34,641 32,127
967   960 830 Public administration   859 1,003 1,005
  4,511 4,979   5,532 Agriculture, forestry, fisheries and hunting 5,724 5,248 4,839
  2,010 3,012   3,112 Sea farming industries 3,257 3,133 2,109
  3,062 4,222   5,159 Manufacturing 5,399 4,509 3,323
  2,821 3,337   3,390 Construction, power and water supply 3,853 3,165 2,663
  3,326 3,353   3,350 Retail trade, hotels and restaurants 3,543 3,584 3,676
576 5,874   7,282 Maritime sector 7,287 5,877 579
  12,808   14,333   14,820 Property management   14,179 14,440 12,878
  3,263 3,499   4,764 Business services 5,061 3,847 3,592
  4,307 2,161   2,236 Transport and other services provision 2,514 2,519 4,681
  89   203 221 Other sectors   223 205 90
69,197 79,685 85,561 Total 87,750 82,170 71,562
             
             
             
Parent bank   Group
2009 2010 2011 Gross loans 2011 2010 2009
  29,117   31,187   32,165 Wage earners   33,141 32,020 29,745
  28   61   63 Public administration   92 101 64
  4,211 4,580   4,965 Agriculture, forestry, fisheries and hunting 5,155 4,832 4,518
  1,225 1,790   1,880 Sea farming industries 2,024 1,904 1,318
  2,080 2,503   2,641 Manufacturing 2,878 2,772 2,324
  1,733 1,992   2,070 Construction, power and water supply 2,528 2,476 2,229
  2,108 2,264   2,126 Retail trade, hotels and restaurants 2,316 2,480 2,435
  2,205 5,240   5,974 Maritime sector 5,978 5,242 2,209
  11,627   13,465   12,651 Property management   12,167 13,004 11,321
  2,930 2,778   3,570 Business services 3,865 3,104 3,238
  1,842 1,245   1,720 Transport and other services provision 1,989 1,573 2,184
198   337 969 Other sectors   971 339 199
59,304 67,443 70,793 Total 73,105 69,847 61,782
             
             
             
Parent bank   Group
2009 2010 2011 Individual impairment 2011 2010 2009
  37   30   41 Wage earners   43 30 40
  -  -    -  Public administration -  0 0
  8 5   2 Agriculture, forestry, fisheries and hunting 2 8 9
  1 1   21 Sea farming industries   21 1 1
  34   78   18 Manufacturing   30 100 47
  21   14   10 Construction, power and water supply   14 18 28
  14   13   12 Retail trade, hotels and restaurants   13 18 14
  -  -    -  Maritime sector -  0 0
  41   35   29 Property management   29 35 41
  21 5   2 Business services 3 6 22
  8 6   16 Transport and other services provision   17 6 9
  9 -    -  Other sectors -  0 9
193 186 151 Total 172 222 219
             
             
             
Parent bank   Group
2009 2010 2011 Expected annual average net loss 2011 2010 2009
  35   28   21 Lønnstakere o.l   23 30 37
  0 0   0 Offentlig forvaltning 0 0 0
  8 7   9 Jordbruk,skogbruk, fiske og fangst   13 12 11
  1 3   3 Havbruk 3 3 2
  5   17   31 Industri og bergverk   32 19 14
  8 4   16 Bygg og anlegg   22 9 18
  6 5   10 Hotell og handel   11 9 16
  1 2   23 Sjøfart   23 2 1
  39   105   41 Eiendomsdrift   41 108 39
  17   21   33 Forretningsmessig tjenesteyting   36 24 18
  7   13   3 Transport og annen tjenesteytende virksomhet 5 17 8
  -  2   1 Øvrige sektorer 1 2 0
126 206 190 Total 211 234 163

 Specified by geographic area

Parent bank   Group
2009 2010 2011 Gross loans  2011 2010 2009
  24,504   25,588   26,627 Sør-Trøndelag   27,178   26,237 25,515
  15,214   15,989   15,116 Nord-Trøndelag   16,050   16,931 16,120
  10,070   14,094   15,040 Møre og Romsdal   15,542   14,533 10,342
273   499 335 Sogn og Fjordane   348   508 505
479   499 542 Nordland   581   533   520
  4,754 5,061   8,111 Oslo  8,147  5,061  4,754
  3,656 5,207   4,069 Rest of Norway   4,306   5,539 3,673
353   506 953 Abroad   953   506   353
59,304 67,443 70,793 Total  73,105 69,847 61,782

The best secured home mortgage loans are transferred to SpareBank 1 Boligkreditt, established by the banks in the SpareBank 1 Alliance.

The table below shows the geographic classification of these exposures.

Parent bank   Group
2009 2010 2011 Gross loans transferred to SpareBank1 Boligkreditt 2011 2010 2009
  7,406 8,462   10,327 Sør-Trøndelag   10,327   8,462 7,406
  4,566 4,750   5,850 Nord-Trøndelag 5,850   4,750 4,566
  2,118 2,711   3,513 Møre og Romsdal 3,513   2,711 2,118
  7   18   55 Sogn og Fjordane   55   18 7
  78   67   70 Nordland   70   67 78
505   650 830 Oslo   830   650   505
906 1,091   1,392 Landet for øvrig 1,392   1,091   906
  61   68   89 Utlandet   89   68 61
15,647 17,818 22,126 Total gross loans transferred to SpareBank1 Boligkreditt 22,126 17,818 15,647

 

  Group
Loans to and claims on customers related to financial leases 2011 2010 2009
       
Gross advances related to financial leasing      
- Maturity less than 1 year   252   363   304
- Maturity more than 1 year but not more than 5 years 1,536   1,518 1,695
- Maturity more than 5 years   203   266   262
Total gross claims 1,990   2,147 2,261
       
Received income related to financial leasing, not yet earned    70   69 74
Net investments related to financial leasing 1,920   2,078 2,187
       
Net investments in financial leasing can be broken down as follows:      
- Maturity less than 1 year   231   333   269
- Maturity more than 1 year but not more than 5 years 1,489   1,481 1,658
- Maturity more than 5 years   201   264   261
Total net claims  1,920   2,078 2,187

Financial results

Annual report and notes

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