Note 9 - Loans and advances to customers

Parent Bank   Group
31 Dec 2017 31 Dec 2018 (NOK million) 31 Dec 2018 31 Dec 2017
105,843 113,356 Gross Loans 120,473 112,071
  697 Write-downs for expected credit losses 744  
751   Specified write-downs   765
323   Collectively assessed write-downs   347
104,769 112,659 Net loans to and advances to customers 119,728 110,959
         
    Additional information    
34,885 38,062 Loans sold to SpareBank 1 Boligkreditt 38,062 34,885
615 603 - Of which loans to employees 993 956
1,828 1,782 Loans sold to SpareBank 1 Næringskreditt 1,782 1,828
         
48 48 Subordinated loan capital other financial institutions  48 48
648 646 Loans to employees *) 1,132 1,149
*) 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

 

Parent Bank (NOK million) Loans subject to impairment Fixed
interest
loans
at FV		 Total
Gross loan Stage 1  Stage 2 Stage 3
Balance at 1 January 2018 91,074 9,931 1,560 3,278 105,843
Transfer to stage 1 2,230 -2,230 0  - -
Transfer to stage 2 -2,637 2,644 -7  - -
Transfer to stage 3 -458 -31 489  - -
Net increase/decrease amount excisting loans -5,487 -65 11 -148 -5,689
New loans 46,099 2,067 72 2,269 50,507
Derecognitions -33,363 -2,428 -581 -933 -37,305
Balance at 31 December 2018 97,458 9,888 1,543 4,467 113,356

 

Group (NOK million) Loans subject to impairment Fixed interest loans at FV Total
Gross loan Stage 1  Stage 2 Stage 3
Balance at 1 January 2018 96,286 10,855 1,652 3,278 112,071
Transfer to stage 1 2,439 -2,391 -48  - -
Transfer to stage 2 -2,957 2,970 -13 - -
Transfer to stage 3 -464 -71 536  - -
Net increase/decrease amount excisting loans -6,397 -260 89 -148 -6,716
New loans 48,841 2,283 89 2,269 53,483
Derecognitions -34,253 -2,556 -622 -933 -38,365
Balance at 31 December 2018 103,494 10,829 1,682 4,467 120,473

 

Loans and commitments specified by type    
         
Parent Bank   Group
31 Dec 2017 31 Dec 2018 Loans and commitments specified by type (NOK million) 31 Dec 2018 31 Dec 2017
         
    Gross loans and advances    
- - Financial lease 2,934 2,839
12,797 13,657 Bank overdraft and operating credit 13,056 12,330
4,186 3,761 Construction loans 3,761 4,186
88,860 95,937 Amortizing loan 100,722 92,716
105,843 113,356 Total gross loans to and receivables from customers 120,473 112,071
         
    Other commitments    
4,210 4,009 Financial guarantees, of which: 4,009 4,210
714 699 Payment guarantees 699 714
1,286 1,125 Performance guarantees 1,125 1,286
1,994 1,960 Loan guarantees 1,960 1,994
84 85 Guarantees for taxes  85 84
132 141 Other guarantee commitments 141 132
         
1,018 918 Unutilised guarantee commitments 918 1,018
11,677 16,186 Unutilised credits 16,202 11,688
1,896 1,582 Loan approvals (not discounted) 1,706 2,148
62 40 Documentary credits 40 62
18,863 22,736 Total other commitments 22,875 19,126
         
124,706 136,092 Total loans and commitments 143,348 131,197

Loans and other commitments specified by sector and industry

  31 Dec 2018 31 Dec 2017
Parent Bank (NOK million) Gross loans Other commitments Total loans
and commitments		 Gross loans Other commitments Total loans
and
commitments
Wage earners 65,475 6,021 71,496 60,099 6,193 66,292
Public administration 44 603 647 226 855 1,081
Agriculture, forestry, fisheries and hunting 12,362 1,453 13,815 11,305 1,002 12,307
Sea farming industries 869 798 1,667 1,311 978 2,289
Manufacturing 3,438 2,379 5,818 2,850 1,625 4,475
Construction, power and water supply 2,947 2,951 5,898 2,794 1,398 4,193
Retail trade, hotels and restaurants 2,335 2,136 4,471 2,432 2,399 4,830
Maritime sector and offshore 4,227 2,560 6,787 4,639 1,510 6,149
Property management 13,324 1,029 14,353 12,462 1,203 13,665
Business services 2,531 931 3,462 2,510 797 3,307
Transport and other services provision 4,145 1,395 5,540 3,547 593 4,140
Other sectors 1,658 481 2,138 1,669 310 1,978
Total 113,356 22,736 136,092 105,843 18,863 124,706

 

  31 Dec 2018 31 Dec 2017
Group (NOK million) Gross loans Other
commitments		 Total loans
and
commitments		 Gross loans Other
commitments		 Total loans
and
commitments
Wage earners 70,070 6,094 76,163 63,812 6,332 70,144
Public administration 55 603 658 240 855 1,095
Agriculture, forestry, fisheries and hunting 12,686 1,458 14,144 11,606 1,013 12,619
Sea farming industries 1,180 803 1,983 1,697 992 2,689
Manufacturing 3,787 2,385 6,172 3,157 1,637 4,794
Construction, power and water supply 3,661 2,962 6,623 3,419 1,421 4,841
Retail trade, hotels and restaurants 2,621 2,140 4,761 2,700 2,409 5,109
Maritime sector and offshore 4,227 2,560 6,787 4,639 1,510 6,149
Property management 13,386 1,030 14,416 12,521 1,205 13,726
Business services 2,162 943 3,105 2,260 811 3,070
Transport and other services provision 4,961 1,416 6,377 4,322 630 4,951
Other sectors 1,679 481 2,160 1,699 310 2,010
Total 120,473 22,875 143,348 112,071 19,126 131,197

Loans and other commitments specified by geographic area

  31 Dec 2018 31 Dec 2017
Parent Bank (NOK million) Gross loans Other commitments Total loans
and
commitments		 Gross loans Other
commitments		 Total loans
and
commitments
Trøndelag 74,312 13,820 88,132 70,137 12,106 82,243
Møre og Romsdal 23,993 7,051 31,044 22,319 5,078 27,397
Sogn og Fjordane 819 209 1,028 608 333 941
Nordland 984 47 1,031 1,216 37 1,253
Oslo 5,592 759 6,352 5,037 653 5,690
Rest of Norway 7,148 818 7,966 6,070 615 6,685
Abroad 507 31 538 456 42 498
Total 113,356 22,736 136,092 105,843 18,863 124,706
             
  31 Dec 2018 31 Dec 2017
Group (NOK million) Gross loans Other commitments Total loans
and commitments		 Gross loans Other commitments Total loans
and
commitments
Trøndelag 77,102 13,881 90,983 73,017 12,227 85,243
Møre og Romsdal 25,495 7,075 32,570 23,670 5,128 28,798
Sogn og Fjordane 1,262 216 1,477 981 347 1,328
Nordland 1,097 49 1,145 1,295 40 1,334
Oslo 5,151 762 5,913 4,710 658 5,368
Rest of Norway 9,859 861 10,720 7,942 685 8,627
Abroad 507 31 538 456 42 498
Total 120,473 22,875 143,348 112,071 19,126 131,197

Gross loans sold to SpareBank 1 Boligkreditt

  31 Dec 2018 31 Dec 2017
(NOK million) Gross loans Other commitments Total loans
and commitments		 Gross loans Other commitments Total loans and commitments
Trøndelag 28,208 1,938 30,145 25,483 1,934 27,418
Møre og Romsdal 5,790 453 6,244 5,645 439 6,084
Sogn og Fjordane 323 14 337 317 21 339
Nordland 157 6 163 124 7 131
Oslo 1,516 60 1,575 1,270 47 1,317
Rest of Norway 2,007 88 2,096 1,997 89 2,087
Abroad 60 1 61 48 1 49
Total 38,062 2,560 40,621 34,885 2,539 37,424

Gross loans sold to SpareBank 1 Næringskreditt

  31 Dec 2018 31 Dec 2017
(NOK million) Gross loans Other commitments Total loans
and commitments		 Gross loans Other commitments Total loans and commitments
Trøndelag 862 - 862 1,164 - 1,164
Møre og Romsdal 158 - 158 158 - 158
Sogn og Fjordane - - - - - -
Nordland 63 - 63 87 - 87
Oslo 650 - 650 366 - 366
Rest of Norway 50 - 50 52 - 52
Abroad - - - - - -
Total 1,782 - 1,782 1,828 - 1,828

Loans to and claims on customers related to financial leases (NOK million)

Group (NOK million) 31 Dec 2018 31 Dec 2017
Gross advances related to financial leasing    
- Maturity less than 1 year 118 233
- Maturity more than 1 year and less than 5 years 2,070 2,105
- Maturity more than 5 years 827 581
Total gross claims 3,015 2,919
     
Received income related to financial leasing, not yet earned 81 80
Net investments related to financial leasing 2,934 2,839
     
Net investments in financial leasing can be broken down as follows:    
- Maturity less than 1 year 110 185
- Maturity more than 1 year and less than 5 years 2,009 2,081
- Maturity more than 5 years 815 573
Total net claims 2,934 2,839

Loans and other commitments to 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.

Other commitments include documentary credits, guarantees, unutilised credit lines and loan approvals.

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.

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 or objetive evidence of impairment leading to reduced cash flows from the customer. See note 2 Accounting principles for further description of such exposures.

  Neither default or impaired    
Parent Bank 31 Dec 2018 (NOK million) Lowest risk Low risk Medium risk High risk Highest risk Default and
written down		 Total
               
Gross Loans              
Fair value over OCI 50,134 7,035 2,542 598 801 242 61,353
Stage 1 50,134 6,212 1,051 139 94 - 57,630
Stage 2 - 823 1,491 459 707 - 3,480
Stage 3 - - - - - 242 242
               
Amortised cost 22,009 9,228 11,070 2,582 1,347 1,300 47,536
Stage 1 21,984 8,323 8,074 1,305 141 - 39,828
Stage 2 25 905 2,996 1,277 1,205 - 6,408
Stage 3 - - - - - 1,300 1,300
               
Fair value over Profit and Loss 3,785 468 152 23 39 - 4,467
Total Gross Loans 75,928 16,731 13,765 3,203 2,186 1,543 113,356
               
Other Commitments 11,749 4,445 5,018 540 201 783 22,736
Stage 1 11,749 3,715 3,305 303 24 - 19,096
Stage 2 - 729 1,713 237 177 - 2,857
Stage 3 - - - - - 783 783
               
Total loans and other commitments 87,677 21,176 18,783 3,743 2,387 2,326 136,092

 

  Neither default or impaired    
Group 31 Dec 2018 (NOK million) Lowest risk Low risk Medium risk High risk Highest risk Default and
written down		 Total
               
Gross Loans              
Fair value over OCI 50,134 7,035 2,542 598 801 242 61,353
Stage 1 50,134 6,212 1,051 139 94 - 57,630
Stage 2 - 823 1,491 459 707 - 3,480
Stage 3 - - - - - 242 242
               
Amortised cost 21,662 10,576 16,028 3,191 1,755 1,441 54,653
Stage 1 21,637 9,668 12,740 1,608 209 - 45,863
Stage 2 25 908 3,287 1,583 1,546 - 7,349
Stage 3 - - - - - 1,441 1,441
               
Fair value over Profit and Loss 3,785 468 152 23 39 - 4,467
Total Gross Loans 75,581 18,079 18,722 3,812 2,595 1,683 120,473
               
Other Commitments 11,754 4,466 5,114 550 208 783 22,875
Stage 1 11,754 3,737 3,305 303 24 - 19,123
Stage 2 - 729 1,808 247 184 - 2,969
Stage 3 - - - - - 783 783
               
Total loans and other commitments 87,334 22,546 23,836 4,362 2,803 2,466 143,348

 

  31 Dec 2017
Parent Bank (NOK million) Gross
loans		 Other
commitments		 Total loans
and
commitments
Lowest risk 69,528 10,852 80,379
Low risk 16,855 3,693 20,548
Medium risk 12,676 3,294 15,970
High risk 2,507 419 2,926
Highest risk 2,708 478 3,185
Default and written down 1,570 128 1,698
Total 105,843 18,863 124,706

 

  31 Dec 2017
Group (NOK million) Gross loans Other commitments Total loans and commitments
Lowest risk 69,415 10,868 80,283
Low risk 18,307 3,750 22,057
Medium risk 15,696 3,413 19,109
High risk 3,532 460 3,991
Highest risk 3,470 508 3,978
Default and written down 1,651 128 1,779
Total 112,071 19,126 131,197

Gross loans and commitments sold to SpareBank 1 Boligkreditt

  31 Dec 2018 31 Dec 2017
(NOK million) Gross loans Other commitments Total loans and commitments Gross loans Other commitments Total loans and commitments
Lowest risk 33,533 2,551 36,083 30,082 2,523 32,604
Low risk 3,175 6 3,181 3,556 12 3,568
Medium risk 867 1 868 865 2 868
High risk 279 1 279 227 1 228
Highest risk 196 0 197 147 0 147
Default and written down 12 1 13 8 1 9
Total 38,062 2,560 40,621 34,885 2,539 37,424


Gross loans and commitments sold to SpareBank 1 Næringskreditt

  31 Dec 2018 31 Dec 2017
(NOK million) Gross
loans		 Other commitments Total loans and commitments Gross loans Other commitments Total loans and commitments
Lowest risk 1,496 - 1,496 1,465 - 1,465
Low risk - - - 96 - 96
Medium risk 287 - 287 267 - 267
High risk - - - - - -
Highest risk - - - - - -
Default and written down - - - - - -
Total 1,782 - 1,782 1,828 - 1,828

Financial results

Annual report and notes

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