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 9 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 as the opening balance includes companies that during the fiscal year have been classified as related partied of the Bank. 

  Subsidiaries Other related companies
Loans (NOK million) 2018 2017 2018 2017
Outstanding loans as at 1.1 5,909 4.780 4,609 4.049
Loans issued in the period 1,200 1,445 31 515
Repayments 276 317 45 3
Outstanding loans as at 31.12 6,833 5,909 4,595 4,561
Interest income 130 119 125 121
Bonds and subordinated loans as at 31.12 158 160 858 1.749
Deposits (NOK million)        
Deposits as at 1.1 938 1,158 3,950 3,950
Contribution received during the period 42,985 30,304 53,459 53,459
Withdrawals 42,684 30,514 55,346 55,346
Deposits as at 31.12 1,238 947 2,063 2,063
Interest expenses 19 14 13 14
Securities trading 28 25 204 468
Commission income SpareBank 1 Boligkreditt - - 340 322
Commission income SpareBank 1 Næringskreditt - - 16 17
Issued guarantees and amount guaranteed 110 110 23 89

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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