Note 41 - Significant transactions with related companies
In this context ‘related parties’ means subsidiaries, affiliated companies, joint ventures and companies held for sale over which the Bank exercises substantial influence, as well as SpareBank 1 SMN Pensjonskasse (pension fund) and companies owned by the Bank’s personal related parties. The Bank’s outstanding accounts with employees and members of the Board of Directors are shown in note 8 Loans and advances to customers and note 23 Personnel expenses and emoluments to senior employees and elected officers. The opening balance may differ from the previous year's closing balance as the opening balance includes companies that during the fiscal year have been classified as related partied of the Bank.
| Subsidiaries | Other related companies | |||
| Loans (NOK million) | 2013 | 2012 | 2013 | 2012 |
| Outstanding loans as at 1.1. | 3,316 | 3,017 | 2,603 | 822 |
| Loans issued in the period | 11 | 355 | 558 | 2,363 |
| Repayments | 589 | 50 | 1,276 | 78 |
| Outstanding loans as at 31.12. | 2,738 | 3,322 | 1,885 | 3,107 |
| Interest rate income | 89 | 102 | 79 | 88 |
| Actual losses | - | - | - | 25 |
| Bonds and subordinated loans as at 31.12 | 89 | 89 | 2,708 | 4,551 |
| Deposits (NOK million) | ||||
| Deposits as at 1.1. | 2,161 | 853 | 2,885 | 1,985 |
| Contribution received during the period | 21,740 | 20,855 | 5,017 | 7,002 |
| Withdrawals | 22,066 | 19,464 | 6,968 | 5,976 |
| Deposits as at 31.12. | 1,836 | 2,244 | 934 | 3,011 |
| Interest rate expenses | 50 | 28 | 20 | 13 |
| Securities trading | - | - | 554 | 2,014 |
| Commission income SpareBank 1 Boligkreditt | - | - | 414 | 201 |
| Commission income SpareBank 1 Næringskreditt | - | - | 8 | 4 |
| Issued guarantees and amount guaranteed | - | 1 | 59 | 81 |
| Committed credit | - | - | 108 | - |
Loans and deposits
All loans and deposits for related parties are booked in the Parent Bank.
Securities trading
SpareBank 1 SMN's Markets and Finance divisions carry out a large number of transactions with the Bank's related companies. Transactions are executed on a ongoing basis in the fixed income and forex area, payments transmission, bond trading etc. These transactions are part of ordinary bank operations and all agreements are contracted on market terms. Numbers above includes net investmens in derivatives, bond transactions and deposits.
Other transactions
SpareBank 1 SMN has signed supply agreements with several related companies in order to safeguard ordinary banking operations and further development of the SpareBank 1 Alliance. This includes development of data-technical solutions for alliance collaboration, commission from insurance and savings and investment products, administrative services, leasing of premises etc. The agreements are considered to be on market terms. In addition the Bank participates in increases of capital in related companies; see note 39 on Investment in owner interests.
SpareBank 1 SMN took over 23.89 per cent of the shares of SpareBank 1 Markets in 2013. The bank previously indirectly owned 19.23 per cent of SpareBank 1 Markets through its ownership in SpareBank 1 Gruppen. For detailed information see note 40 Business acquisitions/business combinations.
Two stock exchange listed companies were sold in 2013 by the Bank to the subsidiary SpareBank 1 SMN Invest in a total amount of NOK 112m.
Financial results
Annual report and notes
