Note 13 - Maximum credit risk exposure
The table below shows maximum exposure to credit risk for balance sheet components, including derivatives. Exposures are shown on a gross basis before collateral and permitted set-offs.
| Parent Bank | ||||||
| 31 Dec 2017 (NOK million) | Maximum exposure to credit risk | Collateral in property | Collateral in securities | Other collateral *) | ||
| Assets | ||||||
| Balances with central banks | 3,231 | - | - | - | ||
| Loans and advances to credit institutions | 9,543 | - | - | - | ||
| Loans and advances to customers | 104,769 | 83,692 | 1,620 | 15,910 | ||
| Securities - designated at fair value through profit/loss | 20,014 | - | - | 10,092 | ||
| Derivatives | 4,328 | - | - | 2,408 | ||
| Securities - available for sale | 50 | - | - | - | ||
| Earned income, not yet recieved | 61 | - | - | - | ||
| Accounts receivable, securities | 35 | - | - | - | ||
| Total assets | 142,032 | 83,692 | 1,620 | 28,409 | ||
| Liabilities | ||||||
| Guarantee commitments and documentary credits | 5,346 | - | - | - | ||
| Unutilised credits | 13,965 | 4,817 | 47 | 2,010 | ||
| Loan approvals | 1,896 | - | - | - | ||
| Other exposures | 579 | - | - | - | ||
| Total liabilities | 21,786 | 4,817 | 47 | 2,010 | ||
| Total credit risk exposure | 163,817 | 88,509 | 1,667 | 30,420 | ||
| 31 Dec 2016 (NOK million) | Maximum exposure to credit risk | Collateral in property | Collateral in securities | Other collateral *) | ||
| Assets | ||||||
| Balances with central banks | 236 | - | - | - | ||
| Loans and advances to credit institutions | 8,203 | - | - | - | ||
| Loans and advances to customers | 96,499 | 74,519 | 1,595 | 15,426 | ||
| Securities - designated at fair value through profit/loss | 17,861 | - | - | 9,809 | ||
| Derivatives | 4,812 | - | - | 3,363 | ||
| Securities - available for sale | 24 | - | - | - | ||
| Earned income, not yet recieved | 37 | - | - | - | ||
| Accounts receivable, securities | 20 | - | - | - | ||
| Total assets | 127,692 | 74,519 | 1,595 | 28,597 | ||
| Liabilities | ||||||
| Guarantee commitments and documentary credits | 6,607 | - | - | - | ||
| Unutilised credits | 17,337 | 4,917 | 213 | 1,919 | ||
| Loan approvals | 1,720 | - | - | - | ||
| Other exposures | 2,034 | - | - | - | ||
| Total liabilities | 27,698 | 4,917 | 213 | 1,919 | ||
| Total credit risk exposure | 155,390 | 79,436 | 1,807 | 30,516 | ||
| Group | ||||||
| 31 Dec 2017 (NOK million) | Maximum exposure to credit risk | Collateral in property | Collateral in securities | Other collateral *) | ||
| Assets | ||||||
| Balances with central banks | 3,231 | - | - | - | ||
| Loans and advances to credit institutions | 4,214 | - | - | - | ||
| Loans and advances to customers | 110,959 | 83,692 | 1,620 | 22,614 | ||
| Securities - designated at fair value through profit/loss | 21,494 | - | - | 10,092 | ||
| Derivatives | 4,351 | - | 23 | 2,408 | ||
| Securities - available for sale | 66 | - | - | - | ||
| Earned income, not yet recieved | 104 | - | - | - | ||
| Accounts receivable, securities | 322 | - | 84 | 203 | ||
| Total assets | 144,741 | 83,692 | 1,726 | 35,316 | ||
| Liabilities | ||||||
| Guarantee commitments and documentary credits | 5,346 | - | - | - | ||
| Unutilised credits | 13,976 | 4,817 | 47 | 2,021 | ||
| Loan approvals | 2,148 | - | - | 251 | ||
| Other exposures | 764 | - | 63 | - | ||
| Total liabilities | 22,233 | 4,817 | 110 | 2,272 | ||
| Total credit risk exposure | 166,974 | 88,509 | 1,836 | 37,589 | ||
| 31 Dec 2016 (NOK million) | Maximum exposure to credit risk | Collateral in property | Collateral in securities | Other collateral *) | ||
| Assets | ||||||
| Balances with central banks | 236 | - | - | - | ||
| Loans and advances to credit institutions | 3,892 | - | - | - | ||
| Loans and advances to customers | 101,354 | 74,519 | 1,595 | 20,312 | ||
| Securities - designated at fair value through profit/loss | 19,039 | - | - | 9,809 | ||
| Derivatives | 4,752 | - | 18 | 3,363 | ||
| Securities - available for sale | 60 | - | - | - | ||
| Earned income, not yet recieved | 63 | - | - | - | ||
| Accounts receivable, securities | 220 | - | 33 | 167 | ||
| Total assets | 129,616 | 74,519 | 1,645 | 33,651 | ||
| Liabilities | ||||||
| Guarantee commitments and documentary credits | 6,607 | - | - | - | ||
| Unutilised credits | 17,420 | 4,917 | 213 | 1,949 | ||
| Loan approvals | 1,957 | - | - | - | ||
| Other exposures | 2,211 | - | - | - | ||
| Total liabilities | 28,195 | 4,917 | 213 | 1,949 | ||
| Total credit risk exposure | 157,810 | 79,436 | 1,858 | 35,600 | ||
| *) Other collateral includes cash, movables, ship and guarantees received. For covered bonds the cover pool comprises loans to customers in the company that has issued the bond. | ||||||
The Bank’s maximum credit exposure is shown in the above table. SpareBank 1 SMN provides wholesale banking services to BN Bank and the Samspar banks. In this connection a guarantee agreement has been established which assures full settlement for exposures connected to these agreements.
For retail and corporate customers, use is made of framework agreements requiring provision of collateral. For customers engaged in trading activity, only cash deposits are accepted as collateral. Customers furnish cash deposits and/or assets as collateral for their trade in power and salmon derivatives at NASDAQ OMX Oslo ASA and Fish Pool ASA. See note 37, Other debt and liabilities, for a closer description of NASDAQ.
The collateral is measured at fair value, limited to maximum credit exposure for the individual counterparty.
Credit risk exposure related to financial assets distributed by geographical area
| Parent Bank | Group | |||
| 31 Dec 2016 | 31 Dec 2017 | (NOK million) | 31 Dec 2017 | 31 Dec 2016 |
| Bank activities | ||||
| 89,046 | 90,076 | Trøndelag | 87,759 | 87,092 |
| 26,704 | 27,073 | Møre og Romsdal | 28,483 | 27,867 |
| 851 | 939 | Sogn og Fjordane | 1,324 | 1,087 |
| 997 | 1,248 | Nordland | 1,334 | 1,084 |
| 5,990 | 8,953 | Oslo | 8,987 | 6,399 |
| 6,475 | 7,895 | Rest of Norway | 9,925 | 7,796 |
| 2,631 | 3,241 | Abroad | 3,251 | 2,636 |
| 132,693 | 139,424 | Total | 141,062 | 133,960 |
| Financial instruments | ||||
| 15,931 | 16,988 | Norge | 18,485 | 17,145 |
| 1,922 | 3,065 | Europe/Asia | 3,065 | 1,922 |
| 13 | 5 | Oseania | 5 | 13 |
| 19 | 7 | North Amerika | 7 | 19 |
| 4,812 | 4,328 | Derivatives | 4,351 | 4,752 |
| 22,697 | 24,393 | Total | 25,912 | 23,851 |
| 155,390 | 163,817 | Total distributed by geographical area | 166,974 | 157,810 |
Financial results
Annual report and notes
