Note 8 - Loans and advances to customers

Parent bank   Group
2011 2012 (NOK million) 2012 2011
         
     Loans specified by type    
- -  Financial lease  1,901 1,920
10,697 10,250  Bank overdraft and operating credit  10,250 10,697
3,065 3,759  Building loan  3,153 2,486
57,030 58,455  Amortizing loan  59,639 58,001
70,793 72,464  Gross loans to and receivables from customers  74,943 73,105
         
-424 -407  Impairments  -439 -462
70,369 72,057  Net loans to and advances to customers (amortised cost)  74,504 72,643
         
     Lending specified by markets     
32,165 32,618  Retail market  33,828 33,141
38,565 39,760  Corporate market  41,002 39,872
63 86  Public sector  113 92
70,793 72,464  Gross loans and advances 74,943 73,105
         
-424 -407  Impairments  -439 -462
70,369 72,057  Net loans and advances  74,504 72,643
         
     Of this subordinated loan capital     
48 48  Subordinated loan capital other financial institutions  48 48
48 48  Subordinated loan capital shown under loans to customers  48 48
         
    Adv. on this    
572 565 Loans to employees 713 715
         
    In addition:     
22,126 29,348 Loans transferred to SpareBank 1 Boligkreditt  29,348 22,126
693 848   Of which loans to employees 1,069 869
  - 618 Loans transferred to SpareBank 1 Næringskreditt 618 -

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. This is done 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 12 for risk class classification.

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

Exposures consist of gross loans, total guarantee commitments, unutilised credits, and total letter of credit obligations.

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 6, Risk factors, and the section on probability of default.

Parent bank   Group
2011 2012 Total contracts 2012 2011
  39,296 38,451 Lowest risk 38,760   39,478
  20,185 23,748 Low risk 24,474   20,891
  21,743 19,483 Medium risk 20,241   22,177
2,063 2,994 High risk 3,344   2,494
1,811 2,059 Highest risk 2,406   2,168
  463 417 Default and written down* 517   542
  85,561   87,152 Total 89,744 87,750
         
         
Parent bank   Group
2011 2012 Gross loans 2012 2011
  32,390   32,491 Lowest risk 32,792   32,571
  16,826   19,825 Low risk 20,517   17,524
  17,496   15,328 Medium risk 16,035   18,069
1,903   2,451 High risk 2,791   2,329
1,723   1,976 Highest risk 2,315   2,078
  455 394 Default and written down*   494   534
  70,793   72,464 Total   74,943 73,105
         
*) Exposures subject to individual impairment write down are placed in default category.
         
         
Parent bank   Group
2011 2012 Expected annual average net loss 2012 2011
5   6 Lowest risk 6   5
  17   23 Low risk   23   18
  77   50 Medium risk   52   79
  20   33 High risk   35   23
  47   26 Highest risk   33   53
  25   17 Default and written down   23   34
  190 155 Total   173   211

The best secured home mortgage loans are transferred to SpareBank 1 Boligkreditt.Well secured business loans are transferred to SpareBank 1 Næringskreditt. This is a measure designed to secure long-term funding on competitive terms. 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
2011 2012 Total contracts SpareBank 1 Boligkreditt 2012 2011
  21,681   29,420 Lowest risk 29,420   21,681
2,409   3,228 Low risk 3,228   2,409
  596 868 Medium risk 868   596
  136 144 High risk 144   136
  76 115 Highest risk 115   76
2   13 Default and written down 13   2
  24,901 33,789 Total 33,789 24,901
         
         
Parent bank   Group
2011 2012 Gross loans SpareBank 1 Boligkreditt 2012 2011
  18,927   25,013 Lowest risk   25,013   18,927
2,393   3,199 Low risk 3,199   2,393
  593 863 Medium risk   863   593
  136 144 High risk   144   136
  76 115 Highest risk   115   76
2   13 Default and written down   13   2
  22,126 29,348 Total 29,348   22,126
         
         
 Parent bank    Group
2011 2012 Total contracts SpareBank 1 Næringskreditt 2012 2011
-  150 Lowest risk 150   - 
-  157 Low risk 157  
-  311 Medium risk 311   - 
-  618 Total 618 -
         
         
 Parent bank    Group
2011 2012 Gross loans SpareBank 1 Næringskreditt 2012 2011
-  150 Lowest risk   150   - 
-  157 Low risk   157   - 
-  311 Medium risk   311   - 
 -  618 Total 618  - 

Specified by sector and industry

Parent bank   Group
2011 2012 Total contracts 2012 2011
  34,864   34,433 Wage earners   35,674 35,851
  830 568 Public administration   595 859
5,532   6,974 Agriculture, forestry, fisheries and hunting 7,144 5,724
3,112   3,157 Sea farming industries 3,282 3,257
5,159   3,180 Manufacturing 3,412 5,399
3,390   4,778 Construction, power and water supply 5,329 3,853
3,350  4,437 Retail trade, hotels and restaurants 4,620 3,543
7,282   7,874 Maritime sector 7,880 7,287
  14,820   14,044 Property management   13,526 14,179
4,764   4,361 Business services 4,594 5,061
2,236   2,944 Transport and other services provision 3,279 2,514
  221 401 Other sectors 407 223
85,561 87,152 Total 89,744 87,750
         
         
Parent bank   Group
2011 2012 Gross loans 2012 2011
  32,165   32,618 Wage earners   33,828 33,141
  63   86 Public administration   113 92
4,965   6,081 Agriculture, forestry, fisheries and hunting 6,246 5,155
1,880   2,166 Sea farming industries 2,288 2,024
2,641   2,072 Manufacturing 2,298 2,878
2,070   3,074 Construction, power and water supply 3,611 2,528
2,126   2,577 Retail trade, hotels and restaurants 2,756 2,316
5,974   5,964 Maritime sector 5,970 5,978
  12,651   12,261 Property management   11,740 12,167
3,570   3,108 Business services 3,304 3,865
1,720   2,057 Transport and other services provision 2,384 1,989
  969 401 Other sectors 407 971
70,793 72,464 Total 74,943 73,105
         
         
Parent bank   Group
2011 2012 Individual impairment 2012 2011
  41   38 Wage earners   41 43
-    -  Public administration -    - 
2   2 Agriculture, forestry, fisheries and hunting 3 2
  21   14 Sea farming industries   14 21
  18   13 Manufacturing   16 30
  10   16 Construction, power and water supply   20 14
  12   5 Retail trade, hotels and restaurants 6 13
-    -  Maritime sector -  0
  29   17 Property management   17 29
2   11 Business services   12 3
  16   13 Transport and other services provision   15 17
-    -  Other sectors -  0
151 129 Total 144 172
         
         
Parent bank   Group
2011 2012 Expected annual average net loss 2012 2011
  21   21 Wage earners   25 23
0   0 Public administration 0 0
9   11 Agriculture, forestry, fisheries and hunting   14 13
3   2 Sea farming industries 2 3
  31   17 Manufacturing   18 32
  16   20 Construction, power and water supply   24 22
  10   11 Retail trade, hotels and restaurants   13 11
  23   21 Maritime sector   21 23
  41   30 Property management   30 41
  33   18 Business services   21 36
3   3 Transport and other services provision 5 5
1   1 Other sectors 1 1
190 155 Total   173 211

Specified by geographic area

Parent bank   Group
2011 2012 Gross loans  2012 2011
  26,627   28,295 Sør-Trøndelag   28,996   27,178
  15,116   16,433 Nord-Trøndelag   17,332   16,050
  15,040   15,992 Møre og Romsdal   16,527   15,542
  335 335 Sogn og Fjordane   366   348
  542 481 Nordland   528   581
8,111   5,261 Oslo 5,291   8,147
4,069   4,797 Rest of Norway 5,033   4,306
  953 870 Abroad   870   953
70,793 72,464 Total    74,943 73,105

The best secured home mortgage loans are transferred to SpareBank 1 Boligkreditt. Well secured business loans are transferred to SpareBank 1 Næringskreditt. This is a measure designed to secure long-term funding on competitive terms. Commission (margin) on these loans is taken to income in the income statement under commission income.

The table below shows the geographic classification of these exposures.

Parent bank   Group
2011 2012 Gross loans transferred to SpareBank1 Boligkreditt 2012 2011
  10,288   14,354 Sør-Trøndelag   14,354   10,288
5,830   7,676 Nord-Trøndelag 7,676   5,830
3,581   4,457 Møre og Romsdal 4,457   3,581
  57 100 Sogn og Fjordane   100   57
  79 104 Nordland   104   79
  823   1,007 Oslo 1,007   823
1,379   1,596 Rest of Norway 1,596   1,379
  91   54 Abroad   54   91
22,126 29,348 Total gross loans transferred to SpareBank1 Boligkreditt 29,348 22,126
         
         
 Parent bank    Group 
2011 2012 Gross loans transferred to SpareBank 1 Næringskreditt 2012 2011
-    36 Sør-Trøndelag   36   - 
-  285 Nord-Trøndelag   285   - 
-  297 Møre og Romsdal   297   - 
- 618 Total 618 -

 

  Group
Loans to and claims on customers related to financial leases 2012 2011
Gross advances related to financial leasing    
- Maturity less than 1 year   285   252
- Maturity more than 1 year but not more than 5 years 1,531   1,536
- Maturity more than 5 years   151   203
Total gross claims 1,967   1,990
     
Received income related to financial leasing, not yet earned    66   70
Net investments related to financial leasing 1,901   1,920
     
Net investments in financial leasing can be broken down as follows:    
- Maturity less than 1 year   266   231
- Maturity more than 1 year but not more than 5 years 1,485   1,489
- Maturity more than 5 years   150   201
Total net claims  1,901   1,920

 

Financial results

Annual report and notes

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