Note 11 - Losses on loans and guarantees

Parent bank  
  2015 2014
Losses on loans and guarantees (NOK million) RM CM Total RM CM Total
Period’s change in individual write-downs 2 9 11 -4 18 14
+ Period’s change in collective write-downs - 80 80 - - -
+ Actual losses on loans previously written down 7 58 65 10 41 51
+ Confirmed losses on loans not previously written down 8 4 12 12 16 28
- Recoveries on previously written down loans, guarantees etc. 6 3 9 12 -2 10
Total  11 148 159 6 77 83
             
             
  31 Dec 15 31 Dec 14
Individual write-downs (NOK million) RM CM Total RM CM Total
Individual write-downs to cover loss on loans, guarantees etc. at 1 Jan 25 139 164 28 122 150
- Confirmed losses in the period on loans, guarantees etc. previously subject to individual write down 7 58 65 10 41 51
- Reversal of previous years’ write-downs 2 40 43 6 13 19
+ Increase in write-downs of commitments previously subject to individual write down 1 21 22 1 0 2
+ write-downs of loans not previously subject to individual write down  10 86 96 11 72 83
Individual write-downs to cover loss on loans, guarantees etc at 31 Dec
 27 148 174 25 139 164
             
             
  31 Dec 15 31 Dec 14
Collective write-downs (NOK million) RM CM Total RM CM Total
Collective write-downs to cover loss on loans, guarantees at 1 Jan 90 188 278 90 188 278
Period’s collective write-downs to cover loss on loans, guarantees etc - 80 80  -  - -
Collective write-downs to cover loss on loans and guarantees at 31 Dec 90 268 358 90 188 278

 

Losses specified by sector and industry (NOK million) 2015 2014
Agriculture, forestry, fisheries and hunting  0 5
Industry and mining 2 6
Building, construction, power and water supply 19 12
Wholesale and retail trade, hotel og restaurant industry 6 16
Other transport and communication 24 19
Financing, property management and business services 15 14
Wage earners 12 11
Collective write-downs, corporate 80  - 
Losses on loans to customers 159 83

 

  31 Dec 15 31 Dec 14
Total defaults (NOK million) RM CM Total RM CM Total
Loans in default for more than 90 days 133 38 171 134 90 224
- Individual write-downs 15 8 23 18 45 63
Net defaults 119 30 148 116 45 162
Provison rate 11 % 22 % 13 % 13 % 50 % 28 %
             
  31 Dec 15 31 Dec 14
Problem loans (NOK million) RM CM Total RM CM Total
Problem loans (not in default) 45 341 387 15 193 208
- Individual write-downs 13 138 151 7 95 101
Net problem loans 32 204 236 9 98 107
Provison rate 29 % 40 % 39 % 43 % 49 % 49 %

Interest taken to income on defaulted and doubtful exposures totals NOK 40.2 million for the parent bank (NOK 36.6 million).

The realisable value of the collateral backing individually written-down loans totals NOK 195.2 million (NOK 189.8 million) for the Parent bank at 31 December 2015.

Group            
  2015 2014
Losses on loans and guarantees (NOK million) RM CM Total RM CM Total
Period’s change in individual write-downs 3 9 11 -9 8 -1
+ Period’s change in collective write-downs 2 80 82 - - -
+ Actual losses on loans previously written down 8 59 67 14 51 66
+ Confirmed losses on loans not previously written down 13 7 21 15 20 35
- Recoveries on previously written down loans, guarantees etc. 8 4 12 13 -2 11
Total  18 151 169 8 81 89
             
             
  31 Dec 15 31 Dec 14
Individual write-downs (NOK million) RM CM Total RM CM Total
Individual write-downs to cover loss on loans, guarantees etc. at 1 Jan 27 145 172 36 137 173
- Confirmed losses in the period on loans, guarantees etc. previously subject to individual write down 8 59 67 14 51 66
- Reversal of previous years’ write-downs 3 42 46 7 15 22
+ Increase in write-downs of commitments previously subject to individual write down 1 21 22 1 1 2
+ write-downs of loans not previously subject to individual write down  13 88 101 11 73 84
Individual write-downs to cover loss on loans, guarantees etc at 31 Dec 30 153 183 27 145 172
             
             
  31 Dec 15 31 Dec 14
Collective write-downs (NOK million) RM CM Total RM CM Total
Collective write-downs to cover loss on loans, guarantees at 1 Jan 94 201 295 94 201 295
Period’s collective write-downs to cover loss on loans, guarantees etc 2 80 82  -  - -
Collective write-downs to cover loss on loans and guarantees at 31 Dec 96 281 376 94 201 295

 

Losses specified by sector and industry (NOK million) 2015   2014
Agriculture, forestry, fisheries and hunting  0 6
Industry and mining 4 6
Building and construction, power and water supply 19 13
Wholesale and retail trade, hotel og restaurant industry 4 15
Other transport and communication 26 21
Financing, property management and business services 16 15
Abroad and others 2 -
Wage earners 12 13
Collective write-downs, corporate 84 -
Collective write-downs, retail 2 -
Losses on loans to customers 169 89

 

  31 Dec 15 31 Dec 14
Total defaults (NOK million) RM CM Total RM CM Total
Loans in default for more than 90 days 155 50 205 156 114 270
- Individual write-downs 17 9 26 21 46 67
Net defaults 138 41 179 135 67 203
Provison rate 11 % 18 % 13 % 13 % 41 % 25 %
             
  31 Dec 15 31 Dec 14
Problem loans (NOK million) RM CM Total RM CM Total
Problem loans (not in default) 49 350 399 16 201 216
- Individual write-downs 14 142 156 7 98 105
Net problem loans 34 208 243 9 102 111
Provison rate 30 % 41 % 39 % 43 % 49 % 49 %

Interest taken to income on defaulted and doubtful exposures totals NOK 45.0 million (NOK 43.8 million) for the Group.

The realisable value of the collateral backing individually written-down loans totals NOK 200.7 million (NOK 196.2 million) for the Group at 31 December 2015.

Financial results

Annual report and notes

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