Note 4 - Segment information

Management have made an assessment of which business areas are deemed reportable based on form of distribution, products and customers. The primary reporting format takes as a starting point risk and yield profiles of various assets, and reporting is divided into private customers, (including independent business operators), the corporate market, capital markets and subsidiaries. The bank's own investing activities are not a separate segment and appear under the item "unallocated" together with activities which cannot be allocated to either private or business segments. 

The Bank operates in a limited geographical area and reporting along the lines of geographic secondary segments provides little additional information. 

Significant types of assets (loan) allocated geographically in a separate note under loans. 

2012 (NOK million) RM CM SpareBank 1 SMN Markets Eiendoms-
Megler 1		 SpareBank 1 SMN Finans Allegro Finans SpareBank 1 SMN Regnskap Unallocated 4) Total
Profit and loss account                  
Net interest   540   905 -21   5 118 1   0 -70 1,477
Allocated   11   98 4 - -    - - -113 - 
Total interest income   552 1,003 -18   5 118 1   0 -183 1,477
Net fee and commission income 1)   484   137 24   336 -14 11   100   61 1,139
Net return on financial investments 3)   1   34 87 -  -  -   2   342   467
Total income 1,037 1,174 93   341 104 12   102   220 3,083
Total operating expenses   653   399 94   265 40 15   88   98 1,654
Ordinary operating profit   384   775 -1   76 64   -4   14   122 1,430
Net losses on loans and guarantees 2)   1   45 - - 7   - -   5   58
Result before tax   383   731 -1   76 56   -4   14   117 1,371
Post-tax return on equity 22.6 % 13.8 % -0.4 %           11.7 %
 
Return on equity in the retail market business, corporate market business and SpareBank 1 SMN Markets is calculated on the entity’s capital employed over the year. From and including 2012, capital employed reflects the bank’s goal of a tier 1 capital ratio of 11 per cent. This is also converted for 2011 to render the figures comparable.   
 
Balance                  
Loans and advances to customers 58,892 40,671 - - 3,145   - - 2,201 104,909
Adv. of this to Boligkreditt -28,029 -976 - - -   - -  - -29,966
Individual allowance for impairment on loan -28 -101 - - -15   - - - -144
Group allowance for impairment on loan  -   -  - - -16   - - -278 -295
Other assets 391 873 - 70 -2,905 6 20 34,961 33,415
Total assets  31,225 40,467 - 70 208 6 20 35,924 107,919
                   
Deposits to customers 22,440 27,064 - - - 29   14 2,705 52,252
Other liabilities and equity 8,784 13,403 - 70 208 -23 6 33,218 55,667
Total liabilites 31,225 40,467 - 70 208 6 20 35,924 107,919
                   
                     
2011 (NOK million) RM CM SpareBank 1 SMN Markets Eiendoms-
Megler 1		 SpareBank 1 SMN Finans Allegro Finans SpareBank 1 SMN Regnskap Unallocated 4) Total
Profit and loss account                  
Net interest   511   782 10   5 94 1 -0 -11 1,391
Allocated   16   128 5 - -   - - -149   -
Total interest income   527   910 15   5 94 1 -0 -160 1,391
Net fee and commission income 1)   337   133 24   308 -1 12   79   27   919
Net return on financial investments 3)   8   36 64 -0 -1   - -   371   478
Total income   872 1,079 103   313 92 12   79   238 2,789
Total operating expenses   608   351 94   237 50 18   74   50 1,482
Ordinary operating profit   264   728 9   76 42   -5   5   189 1,306
Net losses on loans and guarantees 2)   7   5 - - 15   - - -0   27
Result before tax   256   724 9   76 27   -5   5   189 1,279
Post-tax return on equity 16.8 % 13.9 % 3.4 %           12.8 %
                   
Balance                  
Loans and advances to customers 52,055 38,655  - - 2,941   -   0 1,580 95,232
Adv. of this to Boligkreditt -21,079 -257  - - -   - - -790 -22,126
Individual allowance for impairment on loan -31 -120  - - -22   - - - -172
Group allowance for impairment on loan - -  - - -16   - - -273 -290
Other assets 265 609   146 -2,461 17 18 30,216 28,812
Total assets  31,210 38,888 - 146 443 17 19 30,732 101,455
                   
Deposits to customers 21,185 25,345  -  -  -  -  - 1,340 47,871
Other liabilities and equity 10,025 13,543  - 146 443 17 18 29,392 53,584
Total liabilites 31,210 38,888 - 146 443 17 19 30,733 101,455

1) A portion of the capital market incomes (Markets) is distributed on RM and CM.
2) Collectively assessed write-downs for the Parent Bank are not distributed on RM and CM under "Loss on loans and guarantees".
3) Specification of net return on financial investments:

(NOK million) 2012 2011
Incomes on ownership interests 264 290
Of which SpareBank 1 Gruppen 94 96
Of which BN Bank 72 89
Of which Bank 1 Oslo Akershus 26 15
Of which SpareBank 1 Boligkreditt 44 16
Of which SpareBank 1 Næringskreditt 8 9
Of which Polaris Media   -14 23
Capital gains and dividends on shares 21 101
Of which SpareBank 1 SMN Invest   -9 92
Capital gains on other securities 56   -10
Capital gain SpareBank 1 SMN Markets exc. shares 126 96
Net return on financial investments 467 478

4) "Unallocated" comprises the Bank's own investment activities which cannot be allocated to the Retail Division, Corporate Division, Markets or subsidiaries. It includes profit shares from associates and joint ventures, and the Bank's subsidiaries which are not reported as separate segments. See also note 38.  

Financial results

Annual report and notes

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