Note 11 - Losses on loans and guarantees
| Parent Bank | 2018 | 2017 | ||||
| Losses on loans and guarantees (NOK million) | RM | CM | Total | RM | CM | Total |
| Change in provision for expected credit losses for the period | 18 | 126 | 144 | 7 | 278 | 285 |
| Actual loan losses on commitments exceeding provisions made | 6 | 86 | 93 | 3 | 41 | 45 |
| Recoveries on commitments previously written-off | -7 | -1 | -8 | -5 | -1 | -6 |
| Losses for the period on loans and guarantees | 17 | 212 | 229 | 5 | 318 | 323 |
| Group | 2018 | 2017 | ||||
| Losses on loans and guarantees (NOK million) | RM | CM | Total | RM | CM | Total |
| Change in provision for expected credit losses for the period | 23 | 127 | 150 | 11 | 279 | 290 |
| Actual loan losses on commitments exceeding provisions made | 30 | 98 | 127 | 12 | 46 | 58 |
| Recoveries on commitments previously written-off | -13 | -1 | -15 | -6 | -1 | -7 |
| Losses for the period on loans and guarantees | 40 | 223 | 263 | 17 | 324 | 341 |
Expected credit loss for loans to credit institutions and central bank have been calculated, but the amount is immaterial and therefore not included in the provision.
Contractual amount outstanding on financial assets that were written off during 2018, and still subject to enforcement activities amount to NOK 734 million kroner for the Bank and NOK 776 million for the group.
Provision for expected credit lossen on loans and guarantees are presented after implementation of IFRS 9 from january 1, 2018. See note 2 and 4 for detailed information about the implementation effect and transition. Comparative figures have not been restated, and the information about 2017 has been presented in accordance with previous rules in IAS 32.
| Parent Bank (NOK million) | 1 Jan 2018 |
Change in provision | Net write-offs/ recoveries |
31 Dec 2018 |
| Loans as amortised cost- CM | 1,017 | 125 | -400 | 742 |
| Loans as amortised cost- RM | 32 | 28 | -15 | 45 |
| Loans at fair value over OCI- RM | 65 | 10 | - | 75 |
| Provision for expected credit losses on loans and guarantees | 1,114 | 163 | -415 | 862 |
| Presented as | ||||
| Provision for loan losses | 1,027 | 86 | -415 | 697 |
| Other debt- provisons | 68 | 80 | - | 148 |
| Other comprehensive income - fair value adjustment | 18 | -2 | - | 17 |
| Group (NOK million) | 1 Jan 2018 |
Change in provision | Net write-offs/ recoveries |
31 Dec 2018 |
| Loans as amortised cost- CM | 1,041 | 128 | -402 | 766 |
| Loans as amortised cost- RM | 49 | 34 | -15 | 68 |
| Loans at fair value over OCI- RM | 65 | 10 | - | 75 |
| Provision for expected credit losses on loans and guarantees | 1,155 | 171 | -417 | 909 |
| Presented as | ||||
| Provision for loan losses | 1,068 | 93 | -417 | 744 |
| Other debt- provisons | 68 | 80 | - | 148 |
| Other comprehensive income - fair value adjustment | 18 | -2 | - | 17 |
| Parent Bank | 2018 | |||
| Total Allowance for Credit Losses (NOK million) | Stage 1 | Stage 2 | Stage 3 | Total |
| Opening balance 1 January | 96 | 256 | 762 | 1,114 |
| Provision for credit losses | ||||
| Transfer to (from) stage 1 | 32 | -32 | -0 | - |
| Transfer to (from) stage 2 | -6 | 6 | -0 | - |
| Transfer to (from) stage 3 | -0 | -2 | 3 | - |
| Net remeasurement of loss allowances | -34 | 45 | 158 | 168 |
| Originations or purchases | 55 | 93 | 1 | 148 |
| Derecognitions | -40 | -108 | -4 | -153 |
| Actual loan losses | - | - | -415 | -415 |
| Closing balance 31 December | 102 | 257 | 503 | 862 |
| Group | 2018 | |||
| Total Allowance for Credit Losses (NOK million) | Stage 1 | Stage 2 | Stage 3 | Total |
| Opening balance 1 January | 106 | 267 | 782 | 1,155 |
| Provision for credit losses | ||||
| Transfer to (from) stage 1 | 34 | -33 | -0 | - |
| Transfer to (from) stage 2 | -7 | 7 | -0 | - |
| Transfer to (from) stage 3 | -0 | -4 | 4 | - |
| Net remeasurement of loss allowances | -37 | 47 | 167 | 177 |
| Originations or purchases | 59 | 96 | 3 | 158 |
| Derecognitions | 112 | 271 | 526 | -163 |
| Actual loan losses | - | - | -417 | -417 |
| Closing balance 31 December | 112 | 271 | 526 | 909 |
| Parent Bank | |||
| 31 Dec 2017 | |||
| Individual write-downs (NOK million) | RM | CM | Total |
| Individual write-downs to cover loss on loans and guarantees at 1.1*) | 24 | 602 | 625 |
| - Actual losses during the period for which provisions for individual impairment losses have been made previously | 8 | 146 | 155 |
| - Reversal of provisions from previous periods | 4 | 8 | 13 |
| + Increased write-downs on provisions previously written down | 0 | 191 | 191 |
| + Write-downs on provisions not previously written down | 6 | 100 | 106 |
| Individual write-downs to cover loss on loans and guarantees at period end | 18 | 738 | 755 |
| *) Individually assessed impairment write-downs on guarantees, totalling NOK 4.2m, are shown in the balance sheet as a liability under 'Other liabilities' | |||
| 31 Dec 2017 | |||
| Collective write-downs (NOK million) | RM | CM | Total |
| Collective write-downs to cover loss on loans, guarantees at 1.1 | 90 | 228 | 318 |
| Period's collective write-downs to cover loss on loans, guarantees etc | - | 5 | 5 |
| Collective write-downs to cover loss on loans and guarantees at period end | 90 | 233 | 323 |
| Group | |||
| 31 Dec 2017 | |||
| Individual write-downs (NOK million) | RM | CM | Total |
| Individual write-downs to cover loss on loans and guarantees at 1.1*) | 27 | 611 | 638 |
| - Actual losses during the period for which provisions for individual impairment losses have been made previously | 9 | 147 | 157 |
| - Reversal of provisions from previous periods | 5 | 9 | 14 |
| + Increased write-downs on provisions previously written down | 0 | 191 | 191 |
| + Write-downs on provisions not previously written down | 7 | 104 | 111 |
| Individual write-downs to cover loss on loans and guarantees at period end | 20 | 750 | 769 |
| *) Individually assessed impairment write-downs on guarantees, totalling NOK 4.2m, are shown in the balance sheet as a liability under 'Other liabilities' | |||
| 31 Dec 2017 | |||
| Collective write-downs (NOK million) | RM | CM | Total |
| Collective write-downs to cover loss on loans, guarantees at 1.1 | 100 | 239 | 339 |
| Period's collective write-downs to cover loss on loans, guarantees etc | 5 | 4 | 9 |
| Collective write-downs to cover loss on loans and guarantees at period end | 104 | 243 | 347 |
| Parent Bank (NOK million) | 31 Dec 2018 | 31 Dec 2017 | |||
| Provision for credit losses specified by sector and industry | Trinn 1 | Trinn 2 | Trinn 3 | Total | |
| Wage earners | 20 | 44 | 24 | 88 | 20 |
| Public administration | 0 | - | - | 0 | - |
| Agriculture, forestry, fisheries and hunting | 8 | 16 | 5 | 30 | 5 |
| Fish farming | 1 | 0 | - | 1 | - |
| Industry and mining | 9 | 20 | 0 | 29 | 14 |
| Building and construction, power and water supply | 11 | 11 | 21 | 43 | 16 |
| Wholesale and retail trade, hotel og restaurant industry | 14 | 8 | 11 | 33 | 24 |
| Maritime sector and offshore | 4 | 84 | 378 | 465 | 617 |
| Property management | 19 | 37 | 20 | 76 | 14 |
| Business services | 7 | 31 | 21 | 59 | 45 |
| Transport and other services provision | 9 | 5 | 2 | 16 | 1 |
| Other sectors | 0 | 0 | 22 | 22 | - |
| Undistributed *) | - | 323 | |||
| Total | 102 | 257 | 503 | 862 | 1,078 |
| *) Undistributed is for 2017 completely related to collective write-downs. Refer to table above for specification of write downs per segment | |||||
| Group (NOK million) | 31 Dec 2018 | 31 Dec 17 | |||
| Provision for credit losses specified by sector and industry | Trinn 1 | Trinn 2 | Trinn 3 | Total | |
| Wage earners | 25 | 52 | 33 | 109 | 20 |
| Public administration | 0 | - | - | 0 | - |
| Agriculture, forestry, fisheries and hunting | 9 | 18 | 6 | 33 | 6 |
| Fish farming | 1 | 1 | - | 2 | - |
| Industry and mining | 9 | 21 | 3 | 34 | 16 |
| Building and construction, power and water supply | 12 | 13 | 24 | 49 | 17 |
| Wholesale and retail trade, hotel og restaurant industry | 15 | 8 | 12 | 35 | 26 |
| Maritime sector and offshore | 4 | 84 | 378 | 465 | 617 |
| Property management | 19 | 37 | 20 | 76 | 14 |
| Business services | 8 | 31 | 23 | 62 | 47 |
| Transport and other services provision | 10 | 6 | 6 | 23 | 6 |
| Other sectors | 0 | 0 | 22 | 22 | - |
| Undistributed *) | 347 | ||||
| Total | 112 | 271 | 526 | 909 | 1,116 |
| *) Undistributed is for 2017 completely related to collective write-downs. Refer to table above for specification of write downs per segment | |||||
Financial results
Annual report and notes
