Note 8 - Loans and advances to customers

Parent Bank   Group
2013 2014 (NOK million) 2014 2013
     Loans specified by type    
 -   -   Financial lease  1,937 1,877
11,547 12,523  Bank overdraft and operating credit  12,523 11,547
3,277 2,855  Building loan  2,855 3,274
62,207 71,309  Amortizing loan  73,025 63,619
77,030 86,687  Gross loans to and receivables from customers  90,339 80,317
         
-428 -442  Impairments  -467 -468
76,602 86,245  Net loans to and advances to customers (amortised cost)  89,872 79,849
         
     Lending specified by markets     
36,632 43,959  Retail market  45,610 38,724
40,129 42,448  Corporate market  44,430 41,301
269 280  Public sector  300 291
77,030 86,687  Gross loans and advances 90,339 80,317
         
-428 -442  Impairments  -467 -468
76,602 86,245  Net loans and advances  89,872 79,849
         
     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    
820 890 Loans to employees 1,187 1,044
         
    In addition:     
30,514 28,393 Loans transferred to SpareBank 1 Boligkreditt  28,393 30,514
765 830 Of which loans to employees 1,052 972
1,221 1,463 Loans transferred to SpareBank 1 Næringskreditt 1,463 1,221

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 on credit risk exposure for each internal risk rating.

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 twelve 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.

Parent Bank   Group
2013 2014 Total contracts 2014 2013
46,680 52,394 Lowest risk 52,724 46,927
22,631 24,969 Low risk 25,809 23,418
16,275 18,846 Medium risk 20,520 17,831
3,644 3,972 High risk 4,416 4,008
1,988 1,484 Highest risk 1,868 2,321
457 432 Default and written down* 520 543
91,676 102,098 Total 105,858 95,047
         
         
Parent Bank   Group
2013 2014 Gross loans 2014 2013
40,120 45,760 Lowest risk 46,077 40,363
19,132 20,934 Low risk 21,739 19,907
12,210 14,729 Medium risk 16,381 13,709
3,108 3,429 High risk 3,855 3,464
2,023 1,436 Highest risk 1,801 2,352
438 399 Default and written down* 487 523
77,030 86,687 Total 90,339 80,317
*) Exposures subject to individual impairment write down are placed in default category.
         
         
Parent Bank   Group
2013 2014 Expected annual average net loss 2014 2013
15 14 Lowest risk 14 15
29 32 Low risk 33 30
79 90 Medium risk 93 82
67 49 High risk 51 69
46 32 Highest risk 39 53
25 16 Default and written down 25 32
262 233 Total 256 281

Historical data are compiled based on new reduction factor rates for valuation of collateral items. This entails increased probability of default and thereby an increase in expected annual average losses.

The best secured home mortgage loans are transferred 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
2013 2014 Total contracts SpareBank 1 Boligkreditt 2014 2013
30,583 28,781 Lowest risk 28,781 30,583
3,302 2,966 Low risk 2,966 3,302
1,029 927 Medium risk 927 1,029
190 193 High risk 193 190
182 124 Highest risk 124 182
2 2 Default and written down 2 2
35,288 32,992 Total 32,992 35,288
         
         
Parent Bank   Group
2013 2014 Gross loans SpareBank 1 Boligkreditt 2014 2013
25,845 24,212 Lowest risk 24,212 25,845
3,278 2,943 Low risk 2,943 3,278
1,017 924 Medium risk 924 1,017
190 188 High risk 188 190
182 124 Highest risk 124 182
2 2 Default and written down 2 2
30,514 28,393 Total 28,393 30,514

 

 Parent Bank    Group
2013 2014 Total contracts SpareBank 1 Boligkreditt 2014 2013
307 592 Lowest risk 592 307
657 116 Low risk 116 657
257 754 Medium risk 754 257
1,221 1,463 Total 1,463 1,221
         
         
 Parent Bank    Group
2013 2014 Gross loans SpareBank 1 Næringskreditt 2014 2013
307 592 Lowest risk 592 307
657 116 Low risk 116 657
257 754 Medium risk 754 257
1,221 1,463 Total 1,463 1,221

Specified by sector and industry

Parent Bank   Group
2013 2014 Total contracts 2014 2013
39,479 47,410 Wage earners 49,102 40,867
805 594 Public administration 615 828
6,838 7,685 Agriculture, forestry, fisheries and hunting 7,804 6,992
3,239 2,341 Sea farming industries 2,498 3,371
3,031 3,432 Manufacturing 3,699 3,229
4,698 5,534 Construction, power and water supply 6,044 5,228
3,695 3,646 Retail trade, hotels and restaurants 3,812 3,864
7,712 7,410 Maritime sector 7,432 7,719
12,859 13,703 Property management 13,778 12,930
5,844 6,715 Business services 6,974 6,083
3,440 3,626 Transport and other services provision 4,081 3,881
35 1 Other sectors 19 54
91,676 102,098 Total 105,858 95,047
         
         
Parent Bank   Group
2013 2014 Gross loans 2014 2013
36,632 43,959 Wage earners 45,610 38,724
269 280 Public administration 300 291
6,208 7,021 Agriculture, forestry, fisheries and hunting 7,137 6,455
2,334 1,212 Sea farming industries 1,366 2,238
1,946 2,060 Manufacturing 2,321 2,156
2,693 3,211 Construction, power and water supply 3,706 3,375
2,275 2,501 Retail trade, hotels and restaurants 2,663 2,409
5,395 5,614 Maritime sector 5,636 5,626
10,957 12,497 Property management 12,570 11,602
3,646 3,435 Business services 3,671 4,670
2,284 2,648 Transport and other services provision 3,093 2,719
2,391 2,249 Other sectors 2,267 51
77,030 86,687 Total 90,339 80,317
         
         
Parent Bank   Group
2013 2014 Individual impairment 2014 2013
37 36 Wage earners 38 46
-  -  Public administration -  - 
-  -  Agriculture, forestry, fisheries and hunting 1 1
14 -  Sea farming industries -  14
9 18 Manufacturing 18 10
32 36 Construction, power and water supply 36 33
8 20 Retail trade, hotels and restaurants 22 11
-  -  Maritime sector -  - 
19 -  Property management 0 19
22 2 Business services 2 22
8 52 Transport and other services provision 53 16
-  -  Other sectors -  - 
150 164 Total 172 173
         
         
Parent Bank   Group
2013 2014 Expected annual average net loss 2014 2013
48 52 Wage earners 58 56
0 0 Public administration 1 0
24 17 Agriculture, forestry, fisheries and hunting 20 25
4 3 Sea farming industries 3 5
12 11 Manufacturing 12 14
22 24 Construction, power and water supply 27 25
23 19 Retail trade, hotels and restaurants 20 24
29 15 Maritime sector 15 29
57 50 Property management 51 58
32 32 Business services 33 34
10 11 Transport and other services provision 15 13
0 0 Other sectors -  0
262 233 Total 256 281

Historical data are compiled based on new reduction factor rates for valuation of collateral items. This entails increased probability of default and thereby an increase in expected annual average losses.

Specified by geographic area

Parent Bank   Group
2013 2014 Gross loans  2014 2013
29,497 33,220 Sør-Trøndelag 34,627 30,791
17,998 20,410 Nord-Trøndelag 21,384 18,943
17,006 18,894 Møre og Romsdal 19,733 17,688
494 706 Sogn og Fjordane 752 534
658 1,212 Nordland 1,268 714
5,337 6,174 Oslo 6,222 5,375
5,153 5,654 Rest of Norway 5,938 5,386
886 416 Abroad 416 886
77,030 86,687 Total  90,339 80,317

 

Parent Bank   Group
2013 2014 Gross loans transferred to SpareBank1 Boligkreditt 2014 2013
14,966 14,371 Sør-Trøndelag 14,371 14,966
7,895 7,070 Nord-Trøndelag 7,070 7,895
4,626 4,104 Møre og Romsdal 4,104 4,626
127 166 Sogn og Fjordane 166 127
100 86 Nordland 86 100
1,128 1,024 Oslo 1,024 1,128
1,622 1,534 Rest of Norway 1,534 1,622
50 39 Abroad 39 50
30,514 28,393 Total  28,393 30,514

 

 Parent Bank    Group 
2013 2014 Gross loans transferred to SpareBank1 Næringskreditt 2014 2013
381 369 Sør-Trøndelag 369 381
332 338 Nord-Trøndelag 338 332
296 546 Møre og Romsdal 546 296
150 150 Oslo 150 150
63 61 Rest of Norway 61 63
1,221 1,463 Total  1,463 1,221

 

  Group
Loans to and claims on customers related to financial leases 2014 2013
Gross advances related to financial leasing    
- Maturity less than 1 year 178 157
- Maturity more than 1 year but not more than 5 years 1,378 1,512
- Maturity more than 5 years 381 208
Total gross claims 1,937 1,877
     
Received income related to financial leasing, not yet earned  65 47
Net investments related to financial leasing 1,880 1,830
     
Net investments in financial leasing can be broken down as follows:    
- Maturity less than 1 year 138 124
- Maturity more than 1 year but not more than 5 years 1,357 1,499
- Maturity more than 5 years 385 207
Total net claims  1,880 1,830

Financial results

Annual report and notes

Downloads

© SpareBank 1 SMN