Note 41 - Significant transactions with related companies

In this context ‘related parties’ means subsidiaries, associated 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 on loans and advances to customers and note 22 on personnel expenses and emoluments to senior employees and elected officers. The opening balance may differ from the previous year's closing balance due to changes in which companies classified as related parties of the Bank during the period. 

  Subsidiaries Other related companies
Loans (NOK million) 31 Dec 2017 31 Dec 2016 31 Dec 2017 31 Dec 2016
Outstanding loans as at 1 Jan 4,780 3,951 4,049 4,541
Loans issued in the period 1,445 894 515 37
Repayments 317 65 3 431
Outstanding loans as at 31 Dec 5,909 4,780 4,561 4,147
Interest rate income 119 71 121 150
Bonds and subordinated loans as at 31 Dec 2,033 79 4,759 1,315
Deposits (NOK million)        
Deposits as at 1 Jan 1,158 1,079 3,950 1,932
Contribution received during the period 30,304 30,162 53,459 45,542
Withdrawals 30,514 29,827 55,346 43,643
Deposits as at 31 Dec 947 1,413 2,063 3,831
Interest rate expenses 14 21 14 9
Securities trading 25 -15 468 -213
Commission income SpareBank 1 Boligkreditt - - 322 250
Commission income SpareBank 1 Næringskreditt - - 17 12
Issued guarantees and amount guaranteed 110 110 89 91

Loans and deposits

All loans and deposits for related parties are booked in the Parent Bank.

Securities trading

SpareBank 1 SMN's treasury department and subsidiary SpareBank 1 Markets, through outsourced business, 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.

Annual report and notes

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