Note 8 - Loans and advances to customers

Parent Bank   Group
2012 2013 (NOK million) 2013 2012
     Loans specified by type    
- -  Financial lease  1,877 1,901
10,250 11,547  Bank overdraft and operating credit  11,547 10,250
3,759 3,277  Building loan  3,274 3,153
58,455 62,207  Amortizing loan  63,605 59,639
72,464 77,030  Gross loans to and receivables from customers  80,303 74,943
         
-407 -428  Impairments  -467 -439
72,057 76,602  Net loans to and advances to customers (amortised cost)  79,836 74,504
         
     Lending specified by markets     
32,618 36,632  Retail market  38,724 33,828
39,760 40,129  Corporate market  41,287 41,002
87 269  Public sector  291 113
72,464 77,030  Gross loans and advances 80,303 74,943
         
-407 -428  Impairments  -467 -439
72,057 76,602  Net loans and advances  79,836 74,504
         
     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    
565 820 Loans to employees 1,044 713
         
    In addition:     
29,348 30,516 Loans transferred to SpareBank 1 Boligkreditt  30,516 29,348
848 765 Of which loans to employees 972 1,069
618 1,221 Loans transferred to SpareBank 1 Næringskreditt 1,221 618


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
2012 2013 Total contracts 2013 2012
42,325 46,680 Lowest risk 46,927 42,635
20,920 22,631 Low risk 23,418 21,646
17,697 16,275 Medium risk 17,816 18,456
4,230 3,644 High risk 4,008 4,580
1,563 1,988 Highest risk 2,321 1,910
417 457 Default and written down* 543 517
87,152 91,676 Total 95,033 89,744
         
         
Parent Bank   Group
2012 2013 Gross loans 2013 2012
35,681 40,120 Lowest risk 40,363 35,982
17,760 19,132 Low risk 19,907 18,453
13,986 12,210 Medium risk 13,695 14,693
3,178 3,108 High risk 3,464 3,518
1,464 2,023 Highest risk 2,352 1,803
394 438 Default and written down* 523 494
72,464 77,030 Total 80,303 74,943
*) Exposures subject to individual impairment write down are placed in default category.
         
         
Parent Bank   Group
2012 2013 Expected annual average net loss 2013 2012
7 9 Lowest risk 9 7
20 15 Low risk 15 20
48 49 Medium risk 51 51
33 40 High risk 42 35
30 17 Highest risk 24 36
17 14 Default and written down 21 23
155 144 Total 163 173

The best secured home mortgage loans are sold to SpareBank 1 Boligkreditt. Well secured business loans are sold 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
2012 2013 Total contracts SpareBank 1 Boligkreditt 2013 2012
29,420 30,583 Lowest risk 30,583 29,420
3,228 3,302 Low risk 3,302 3,228
868 1,029 Medium risk 1,029 868
144 190 High risk 190 144
115 182 Highest risk 182 115
13 2 Default and written down 2 13
33,789 35,288 Total 35,288 33,789
         
         
Parent Bank   Group
2012 2013 Gross loans SpareBank 1 Boligkreditt 2013 2012
25,013 25,846 Lowest risk 25,846 25,013
3,199 3,278 Low risk 3,278 3,199
863 1,017 Medium risk 1,017 863
144 190 High risk 190 144
115 182 Highest risk 182 115
13 2 Default and written down 2 13
29,348 30,516 Total 30,516 29,348

 

 Parent Bank    Group
2012 2013 Total contracts SpareBank 1 Boligkreditt 2013 2012
150 307 Lowest risk 307 150
157 657 Low risk 657 157
311 257 Medium risk 257 311
618 1,221 Total 1,221 618
         
         
 Parent Bank    Group
2012 2013 Gross loans SpareBank 1 Næringskreditt 2013 2012
150 307 Lowest risk 307 150
157 657 Low risk 657 157
311 257 Medium risk 257 311
618 1,221 Total 1,221 618

Specified by sector and industry

Parent Bank   Group
2012 2013 Total contracts 2013 2012
34,433 39,479 Wage earners 40,867 35,674
568 805 Public administration 828 595
6,974 6,838 Agriculture, forestry, fisheries and hunting 6,992 7,144
3,157 3,239 Sea farming industries 3,371 3,282
3,180 3,031 Manufacturing 3,229 3,412
4,778 4,698 Construction, power and water supply 5,228 5,329
4,437 3,695 Retail trade, hotels and restaurants 3,864 4,620
7,874 7,712 Maritime sector 7,719 7,880
14,044 12,859 Property management 12,930 13,526
4,361 5,844 Business services 6,083 4,594
2,944 3,440 Transport and other services provision 3,881 3,279
401 35 Other sectors 40 407
87,152 91,676 Total 95,033 89,744
         
         
Parent Bank   Group
2012 2013 Gross loans 2013 2012
32,618 36,632 Wage earners 38,724 33,828
86 269 Public administration 291 113
6,081 6,208 Agriculture, forestry, fisheries and hunting 6,455 6,246
2,166 2,334 Sea farming industries 2,238 2,288
2,072 1,946 Manufacturing 2,156 2,298
3,074 2,693 Construction, power and water supply 3,375 3,611
2,577 2,275 Retail trade, hotels and restaurants 2,409 2,756
5,964 5,395 Maritime sector 5,626 5,970
12,261 10,957 Property management 11,602 11,740
3,108 3,646 Business services 4,670 3,304
2,057 2,284 Transport and other services provision 2,719 2,384
401 2,391 Other sectors 37 407
72,464 77,030 Total 80,303 74,943

 

Parent Bank   Group
2012 2013 Individual impairment 2013 2012
38 37 Wage earners 46 41
- - Public administration - -
2 - Agriculture, forestry, fisheries and hunting 1 3
14 14 Sea farming industries 14 14
13 9 Manufacturing 10 16
16 32 Construction, power and water supply 33 20
5 8 Retail trade, hotels and restaurants 11 6
- - Maritime sector - -
17 19 Property management 19 17
11 22 Business services 22 12
13 8 Transport and other services provision 16 15
- - Other sectors - -
129 150 Total 173 144
         
         
Parent Bank   Group
2012 2013 Expected annual average net loss 2013 2012
21 17 Wage earners 25 25
- 0 Public administration 0 0
11 10 Agriculture, forestry, fisheries and hunting 11 14
2 2 Sea farming industries 3 2
17 9 Manufacturing 10 18
20 12 Construction, power and water supply 15 24
11 16 Retail trade, hotels and restaurants 17 13
21 20 Maritime sector 20 21
30 24 Property management 25 30
18 26 Business services 27 21
3 6 Transport and other services provision 8 5
1 0 Other sectors 0 1
155 144 Total 163 173
         
         
Specified by geographic area     
     
Parent Bank   Group
2012 2013 Gross loans 2013 2012
28,295 29,497 Sør-Trøndelag 30,776 28,996
16,433 17,998 Nord-Trøndelag 18,943 17,332
15,992 17,006 Møre og Romsdal 17,688 16,527
335 494 Sogn og Fjordane 534 366
481 658 Nordland 714 528
5,261 5,337 Oslo 5,375 5,291
4,797 5,153 Rest of Norway 5,386 5,033
870 886 Abroad 886 870
72,464 77,030 Total 80,303 74,943

 

Parent Bank   Group
2012 2013 Gross loans sold to SpareBank 1 Boligkreditt 2013 2012
14,354 14,968 Sør-Trøndelag 14,968 14,354
7,676 7,895 Nord-Trøndelag 7,895 7,676
4,457 4,626 Møre og Romsdal 4,626 4,457
100 127 Sogn og Fjordane 127 100
104 100 Nordland 100 104
1,007 1,128 Oslo 1,128 1,007
1,596 1,622 Rest of Norway 1,622 1,596
54 50 Abroad 50 54
29,348 30,516 Total  30,516 29,348

 

 Parent Bank    Group 
2012 2013 Gross loans sold to SpareBank 1 Næringskreditt 2013 2012
36 381 Sør-Trøndelag 381 36
285 332 Nord-Trøndelag 332 285
297 296 Møre og Romsdal 296 297
-  150 Oslo 150 - 
-  63 Rest of Norway 63 - 
618 1,221 Total  1,221 618

 

  Group
Loans to and claims on customers related to financial leases 2013 2012
Gross advances related to financial leasing    
- Maturity less than 1 year 157 285
- Maturity more than 1 year but not more than 5 years 1,512 1,531
- Maturity more than 5 years 208 151
Total gross claims 1,877 1,967
     
Received income related to financial leasing, not yet earned  47 66
Net investments related to financial leasing 1,830 1,901
     
Net investments in financial leasing can be broken down as follows:    
- Maturity less than 1 year 124 266
- Maturity more than 1 year but not more than 5 years 1,499 1,485
- Maturity more than 5 years 207 150
Total net claims  1,830 1,901

Financial results

Annual report and notes

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