Note 8 - Loans and advances to customers

Parent bank   Group
31 Dec 14 31 Dec 15 (NOK million) 31 Dec 15 31 Dec 14
     Loans specified by type    
 -   -   Financial lease  2,166 1,937
12,527 11,164  Bank overdraft and operating credit  11,164 12,527
2,860 2,879  Building loan  2,879 2,860
71,534 76,086  Amortizing loan  77,765 73,255
86,920 90,129  Gross loans to and receivables from customers  93,974 90,578
         
-164 -174 Specified write-downs -183 -172
-278 -358 Group allowance for impairment -376 -295
86,478 89,596  Net loans to and advances to customers 93,415 90,112
         
         
     Lending specified by markets     
44,037 46,631  Retail market  48,782 45,693
42,604 43,306  Corporate market  44,981 44,585
280 192  Public sector  211 300
86,920 90,129  Gross loans and advances 93,974 90,578
         
    Write-downs specified by markets    
-36 -36 Retail market -38 -38
-128 -138 Corporate market -145 -133
-278 -358 Group allowance for impairment -376 -295
86,478 89,596 Net loans and advances to customers 93,415 90,112
         
    Whereof    
48 48 Subordinated loan capital other financial institutions  48 48
890 740 Loans to employees 1,202 1,187
         
    In addition    
28,393 31,944 Loans sold to SpareBank 1 Boligkreditt  31,944 28,393
830 745 - of which loans to employees 1,089 1,052
1,463 1,460 Loans sold to SpareBank 1 Næringskreditt 1,460 1,463
         
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, financial strength 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 include gross loans, letters of credit, guarantees, unutilised credits and loan commitments.

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.

Risk group default and written down consist of customers default by over 90 days and individual write-downs.

 

Parent bank   Group
31 Dec 14 31 Dec 15 Total exposure allocated to risk groups (NOK million) 31 Dec 15 31 Dec 14
52,644 60,945 Lowest risk 61,202 52,975
25,097 21,757 Low risk 22,821 25,938
18,122 19,305 Medium risk 20,925 19,798
3,998 3,708 High risk 4,222 4,443
1,502 1,680 Highest risk 2,285 1,922
432 558 Default and written down 604 486
101,796 107,953 Total 112,060 105,563
         
         
Parent bank   Group
31 Dec 14 31 Dec 15 Gross loans allocated to risk groups (NOK million) 31 Dec 15 31 Dec 14
45,384 52,516 Lowest risk 52,760 45,701
21,398 18,327 Low risk 19,325 22,204
14,830 13,997 Medium risk 15,495 16,484
3,455 3,173 High risk 3,657 3,882
1,455 1,600 Highest risk 2,175 1,855
399 516 Default and written down 563 452
86,920 90,129 Total 93,974 90,578
         
         
Parent bank   Group
2014 2015 Expected annual average net loss allocated to risk groups (NOK million) 2015 2014
20 26 Lowest risk 26 20
46 33 Low risk 33 46
125 114 Medium risk 118 128
70 77 High risk 79 72
44 51 Highest risk 62 52
20 30 Default and written down 36 29
325 331 Total 355 348

 

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
31 Dec 14 31 Dec 15 Total exposures sold to SpareBank 1 Boligkreditt (NOK million) 31 Dec 15 31 Dec 14
28,781 32,210 Lowest risk 32,210 28,781
2,966 3,460 Low risk 3,460 2,966
927 812 Medium risk 812 927
193 161 High risk 161 193
124 160 Highest risk 160 124
2 5 Default and written down 5 2
32,992 36,809 Total exposure allocated to risk groups 36,809 32,992
         
         
Parent bank   Group
31 Dec 14 31 Dec 15 Gross loans sold to SpareBank 1 Boligkreditt (NOK million) 31 Dec 15 31 Dec 14
24,212 27,377 Lowest risk 27,377 24,212
2,943 3,437 Low risk 3,437 2,943
924 804 Medium risk 804 924
188 161 High risk 161 188
124 160 Highest risk 160 124
2 5 Default and written down 5 2
28,393 31,944 Total gross loans allocated to risk groups 31,944 28,393

 

 

 Parent bank    Group
31 Dec 14 31 Dec 15 Total exposures sold to SpareBank 1 Næringskreditt (NOK million) 31 Dec 15 31 Dec 14
592 818 Lowest risk 818 592
116 543 Low risk 543 116
754 99 Medium risk 99 754
1,463 1,460 Total 1,460 1,463
         
         
 Parent bank    Group
31 Dec 14 31 dec 15 Gross loans sold to SpareBank 1 Næringskreditt (NOK million) 31 Dec 15 31 Dec 14
592 818 Lowest risk 818 592
116 543 Low risk 543 116
754 99 Medium risk 99 754
1,463 1,460 Total 1,460 1,463

 

Specified by sector and industry

 

Parent bank   Group
31 Dec 14 31 Dec 15 Total exposure allocated to sector and industry (NOK million) 31 Dec 15 31 Dec 14
46,631 49,196 Wage earners 51,461 48,328
1,002 1,535 Public administration 1,555 1,023
7,593 9,645 Agriculture, forestry, fisheries and hunting 9,813 7,712
2,342 2,413 Sea farming industries 2,752 2,499
3,091 4,512 Manufacturing 4,816 3,358
5,319 5,035 Construction, power and water supply 5,517 5,829
3,738 3,782 Retail trade, hotels and restaurants 3,976 3,904
7,185 7,934 Maritime and offshore sector 7,958 7,207
13,731 14,718 Property management 14,690 13,805
4,785 3,190 Business services 2,985 5,044
3,411 3,805 Transport and other services provision 4,332 3,866
2,969 2,186 Other sectors 2,205 2,988
101,796 107,953 Total 112,060 105,563
         
         
Parent bank   Group
31 Dec 14 31 Dec 15 Gross loans allocated to sector and industry (NOK million) 31 Dec 15 31 Dec 14
44,037 46,631 Wage earners 48,782 45,693
280 192 Public administration 211 300
7,042 8,515 Agriculture, forestry, fisheries and hunting 8,674 7,158
1,213 1,485 Sea farming industries 1,807 1,367
2,069 2,387 Manufacturing 2,675 2,330
3,221 3,141 Construction, power and water supply 3,598 3,717
2,509 2,482 Retail trade, hotels and restaurants 2,666 2,671
5,616 6,043 Maritime and offshore sector 6,066 5,638
12,539 12,917 Property management 12,885 12,612
3,445 2,019 Business services 1,777 3,681
2,696 2,859 Transport and other services provision 3,355 3,141
2,252 1,458 Other sectors 1,477 2,270
86,920 90,129 Total 93,974 90,578
         
         
Parent bank   Group
31 Dec 14 31 Dec 15 Individual impairment allocated to sector and industry (NOK million) 31 Dec 15 31 Dec 14
36 36 Wage earners 38 38
- 8 Agriculture, forestry, fisheries and hunting 9 1
- - Sea farming industries - 0
18 3 Manufacturing 3 18
36 12 Construction, power and water supply 13 36
20 44 Retail trade, hotels and restaurants 46 22
42 55 Maritime and offshore sector 55 42
- 12 Property management 12 0
2 0 Business services 1 2
10 4 Transport and other services provision 5 12
- - Other sectors 2 -
164 174 Total 183 172
         
         
Parent bank   Group
2014 2015 Expected annual average net loss allocated to sector and industry (NOK million) 2015 2014
69 65 Wage earners 73 75
0 0 Public administration 1 1
23 19 Agriculture, forestry, fisheries and hunting 21 26
4 2 Sea farming industries 4 4
12 25 Manufacturing 27 13
38 29 Construction, power and water supply 32 41
25 27 Retail trade, hotels and restaurants 29 26
20 25 Maritime and offshore sector 25 20
73 78 Property management 79 74
33 36 Business services 37 34
15 11 Transport and other services provision 13 19
14 13 Other sectors 14 14
325 331 Total 355 348

Specified by geographic area

 

Parent bank   Group
31 Dec 14 31 Dec 15 Gross loans (NOK million) 31 Dec 15 31 Dec 14
33,305 33,724 Sør-Trøndelag 34,672 34,713
20,338 22,283 Nord-Trøndelag 23,464 21,314
18,859 19,952 Møre og Romsdal 20,925 19,700
934 499 Sogn og Fjordane 540 979
1,208 1,037 Nordland 1,106 1,264
6,152 4,608 Oslo 4,681 6,200
5,710 6,265 Rest of Norway 6,827 5,994
415 1,760 Abroad 1,760 415
86,920 90,129 Total  93,974 90,578

 

Parent bank   Group
31 Dec 14 31 Dec 15 Gross loans sold to SpareBank1 Boligkreditt (NOK million) 31 Dec 15 31 Dec 14
14,371 15,608 Sør-Trøndelag 15,608 14,371
7,070 7,529 Nord-Trøndelag 7,529 7,070
4,104 4,722 Møre og Romsdal 4,722 4,104
166 249 Sogn og Fjordane 249 166
86 92 Nordland 92 86
1,024 1,166 Oslo 1,166 1,024
1,534 1,763 Rest of Norway 1,763 1,534
39 816 Abroad 816 39
28,393 31,944 Total  31,944 28,393

 

 Parent bank    Group 
31 Dec 14 31 Dec 15 Gross loans sold to SpareBank1 Næringskreditt (NOK million) 31 Dec 15 31 Dec 14
369 358 Sør-Trøndelag 358 369
338 309 Nord-Trøndelag 309 338
546 543 Møre og Romsdal 543 546
150 250 Oslo 250 150
61 - Rest of Norway - 61
1,463 1,460 Total  1,460 1,463

 

  Group
Loans to and claims on customers related to financial leases (NOK million) 31 Dec 15 31 Dec 14
Gross advances related to financial leasing    
- Maturity less than 1 year 204 178
- Maturity more than 1 year but not more than 5 years 1,450 1,378
- Maturity more than 5 years 511 381
Total gross claims 2,166 1,937
     
Received income related to financial leasing, not yet earned  69 65
Net investments related to financial leasing 2,097 1,880
     
Net investments in financial leasing can be broken down as follows:    
- Maturity less than 1 year 176 138
- Maturity more than 1 year but not more than 5 years 1,414 1,357
- Maturity more than 5 years 508 385
Total net claims  2,097 1,880

Financial results

Annual report and notes

Downloads

© SpareBank 1 SMN