Note 8 - Loans and advances to customers

Parent Bank   Group
31 Dec 2018 31 Dec 2019 (NOK million) 31 Dec 2019 31 Dec 2018
113,356 117,970 Gross Loans 126,277 120,473
697 937 Write-downs for expected credit losses 998 744
112,659 117,033 Net loans to and advances to customers 125,279 119,728
         
    Additional information    
38,062 39,833 Loans sold to SpareBank 1 Boligkreditt 39,833 38,062
614 608 - Of which loans to employees 1,061 1,013
1,782 1,667 Loans sold to SpareBank 1 Næringskreditt 1,667 1,782
         
48 43 Subordinated loan capital other financial institutions  43 48
888 998 Loans to employees 1) 1,924 1,513
 
1) 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 

  

Loans and commitments specified by type    
           
Parent Bank   Group
31 Dec 2018 31 Dec 2019 Loans and commitments specified by type (NOK million) 31 Dec 2019 31 Dec 2018
         
    Gross loans and advances    
- - Financial lease 5,849 2,934
13,657 13,222 Bank overdraft and operating credit 12,588 13,056
3,761 3,161 Construction loans 3,161 3,761
95,937 101,587 Amortizing loan 104,680 100,722
113,356 117,970 Total gross loans to and receivables from customers 126,277 120,473
         
    Other commitments    
4,009 4,538 Financial guarantees, of which:  4,538 4,009
699 1,064 Payment guarantees 1,064 699
1,125 1,108 Performance guarantees 1,108 1,125
1,960 1,172 Loan guarantees 1,172 1,960
85 100 Guarantees for taxes 100 85
141 1,093 Other guarantee commitments 1,093 141
         
918 998 Unutilised guarantee commitments 998 918
16,186 16,781 Unutilised credits 16,796 16,202
1,582 1,597 Loans approvals (not discounted) 1,692 1,706
40 12 Documentary credits 12 40
22,736 23,925 Total other commitments 24,036 22,875
         
136,092 141,895 Total loans and commitments 150,313 143,348

 

Loans and other commitments specified by sector and industry

 

  31 Dec 2019 31 Dec 2018
Parent Bank (NOK million) Gross
loans		 Other
commitments		 Total loans
and
commitments		 Gross
loans		 Other
commitments		 Total loans
and
commitments
Wage earners 69,711 5,669 75,380 65,475 6,021 71,496
Public administration 2 513 515 44 603 647
Agriculture, forestry, fisheries and hunting 13,203 943 14,146 12,362 1,453 13,815
Sea farming industries 833 766 1,599 869 798 1,667
Manufacturing 2,212 3,069 5,282 3,438 2,379 5,818
Construction, power and water supply 3,157 2,707 5,864 2,947 2,951 5,898
Retail trade, hotels and restaurants 2,181 2,379 4,561 2,335 2,136 4,471
Maritime sector and offshore 4,660 3,227 7,887 4,227 2,560 6,787
Property management 13,133 855 13,988 13,324 1,029 14,353
Business services 2,445 874 3,319 2,531 931 3,462
Transport and other services provision 4,542 2,420 6,962 4,145 1,395 5,540
Other sectors 1,890 503 2,393 1,658 481 2,138
Total 117,970 23,925 141,895 113,356 22,736 136,092

 

  31 Dec 2019 31 Dec 2018
Group (NOK million) Gross
loans		 Other
commitments		 Total loans
and
commitments		 Gross
loans		 Other
commitments		 Total loans
and
commitments
Wage earners 75,203 5,728 80,932 70,070 6,094 76,163
Public administration 12 513 525 55 603 658
Agriculture, forestry, fisheries and hunting 13,558 947 14,505 12,686 1,458 14,144
Sea farming industries 1,132 769 1,901 1,180 803 1,983
Manufacturing 2,595 3,073 5,668 3,787 2,385 6,172
Construction, power and water supply 3,970 2,716 6,686 3,661 2,962 6,623
Retail trade, hotels and restaurants 2,517 2,392 4,908 2,621 2,140 4,761
Maritime sector and offshore 4,660 3,227 7,887 4,227 2,560 6,787
Property management 13,211 856 14,067 13,386 1,030 14,416
Business services 2,146 877 3,023 2,162 943 3,105
Transport and other services provision 5,409 2,435 7,844 4,961 1,416 6,377
Other sectors 1,863 503 2,367 1,679 481 2,160
Total 126,277 24,036 150,313 120,473 22,875 143,348


Loans and other commitments specified by geographic area

  31 Dec 2019 31 Dec 2018
Parent Bank (NOK million) Gross
loans		 Other
commitments		 Total loans
and
commitments		 Gross
loans		 Other
commitments		 Total loans
and
commitments
Trøndelag 76,405 13,927 90,331 74,312 13,820 88,132
Møre og Romsdal 24,428 8,504 32,932 23,993 7,051 31,044
Sogn og Fjordane 691 40 731 819 209 1,028
Nordland 1,158 40 1,198 984 47 1,031
Oslo 6,686 553 7,240 5,592 759 6,352
Rest of Norway 8,253 849 9,102 7,148 818 7,966
Abroad 349 13 362 507 31 538
Total 117,970 23,925 141,895 113,356 22,736 136,092

 

 

  31 Dec 2019 31 Dec 2018
Group (NOK million) Gross
loans		 Other
commitments		 Total loans
and
commitments		 Gross
loans		 Other
commitments		 Total loans
and
commitments
Trøndelag 79,487 13,976 93,462 77,102 13,881 90,983
Møre og Romsdal 26,113 8,522 34,635 25,495 7,075 32,570
Sogn og Fjordane 1,159 45 1,204 1,262 216 1,477
Nordland 1,296 42 1,337 1,097 49 1,145
Oslo 6,276 555 6,831 5,151 762 5,913
Rest of Norway 11,597 884 12,481 9,859 861 10,720
Abroad 349 13 362 507 31 538
Total 126,277 24,036 150,313 120,473 22,875 143,348

Gross loans sold to SpareBank 1 Boligkreditt

  31 Dec 2019 31 Dec 2018
(NOK million) Gross
loans		 Other
commitments		 Total loans
and
commitments		 Gross
loans		 Other commitments Total loans
and
commitments
Trøndelag 29,451 1,822 31,274 28,208 1,938 30,145
Møre og Romsdal 5,844 426 6,270 5,790 453 6,244
Sogn og Fjordane 341 14 355 323 14 337
Nordland 179 6 185 157 6 163
Oslo 1,619 56 1,675 1,516 60 1,575
Rest of Norway 2,352 94 2,446 2,007 88 2,096
Abroad 45 1 46 60 1 61
Total 39,833 2,419 42,252 38,062 2,560 40,621

 

Gross loans sold to SpareBank 1 Næringskreditt

  31 Dec 2019 31 Dec 2018
(NOK million) Gross
loans		 Other
commitments		 Total loans
and
commitments		 Gross
loans		 Other commitments Total loans
and
commitments
Trøndelag 1,081 0 1,081 862 0 862
Møre og Romsdal 60 0 60 158 0 158
Sogn og Fjordane 0 0 0 0 0 0
Nordland 59 0 59 63 0 63
Oslo 419 0 419 650 0 650
Rest of Norway 48 0 48 50 0 50
Abroad 0 0 0 0 0 0
Total 1,667 0 1,667 1,782 0 1,782

 

 

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

Group (NOK million) 31 Dec 2019 31 Dec 2018
Gross advances related to financial leasing    
- Maturity less than 1 year 129 118
- Maturity more than 1 year and less than 5 years 2,184 2,070
- Maturity more than 5 years 823 827
Total gross claims 3,135 3,015
     
Received income related to financial leasing, not yet earned 87 81
Net investments related to financial leasing 3,048 2,934
     
Net investments in financial leasing can be broken down as follows:    
- Maturity less than 1 year 121 110
- Maturity more than 1 year and less than 5 years 2,118 2,009
- Maturity more than 5 years 809 815
Total net claims 3,048 2,934

 

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 guarantees, unutilised credit lines and letters of credit.

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 2019 (NOK million) Lowest
risk		 Low
risk		 Medium
risk		 High
risk		 Highest
risk		 Default and
written
down		 Total
               
Gross Loans              
Fair value over OCI 56,284 8,904 3,536 977 1,230 405 71,336
Stage 1 56,284 7,839 1,480 306 200 - 66,109
Stage 2 - 1,065 2,056 671 1,030 - 4,822
Stage 3 - - - - - 405 405
               
Amortised cost 20,473 7,922 10,468 1,135 408 1,552 41,957
Stage 1 20,448 7,359 7,512 705 102 - 36,126
Stage 2 25 563 2,956 430 306 - 4,279
Stage 3 - - - - - 1,552 1,552
               
Fair value over Profit and Loss 3,940 490 152 49 36 10 4,677
Total Gross Loans 80,697 17,316 14,156 2,161 1,674 1,967 117,970
               
Other Commitments 13,232 3,926 4,672 932 157 1,005 23,925
Stage 1 13,232 3,244 3,663 807 68 - 21,014
Stage 2 - 682 1,009 126 90 - 1,907
Stage 3 - - - - - 1,005 1,005
               
Total loans and other commitments 93,929 21,242 18,829 3,093 1,831 2,972 141,895

 

  Neither default or impaired    
Parent Bank 31 Dec 2018 (NOK million) Lowest
risk		 Low
risk		 Mediu
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 2019 (NOK million) Lowest
risk		 Low
risk		 Medium
risk		 High
risk		 Highest
risk		 Default and
written
own		 Total
               
Gross Loans              
Fair value over OCI 56,284 8,904 3,536 977 1,230 405 71,336
Stage 1 56,284 7,839 1,480 306 200 - 66,109
Stage 2 - 1,065 2,056 671 1,030 - 4,822
Stage 3 - - - - - 405 405
               
Amortised cost 19,924 9,363 16,424 1,845 1,003 1,704 50,264
Stage 1 19,899 8,798 13,136 998 201 - 43,031
Stage 2 25 565 3,288 848 803 - 5,528
Stage 3 - - - - - 1,704 1,704
               
Fair value over Profit and Loss 3,940 490 152 49 36 10 4,677
Total Gross Loans 80,148 18,757 20,112 2,871 2,269 2,119 126,277
               
Other Commitments 13,234 3,941 4,753 940 164 1,005 24,036
Stage 1 13,234 3,259 3,739 807 68 - 21,106
Stage 2 - 682 1,014 133 96 - 1,926
Stage 3 - - - - - 1,005 1,005
               
Total loans and other commitments 93,382 22,698 24,864 3,811 2,433 3,124 150,313

  

  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

 

Gross loans and commitments sold to SpareBank 1 Boligkreditt

  31 Dec 2019 31 Dec 2018
(NOK million) Gross
loans		 Other
commitments		 Total loans
and
commitments		 Gross
loans		 Other
commitments		 Total loans
and
commitments
Lowest risk 34,808 2,410 37,217 33,532 2,551 36,083
Low risk 3,457 7 3,464 3,175 6 3,181
Medium risk 1,075 1 1,076 867 1 868
High risk 208 0 208 279 1 279
Highest risk 267 1 268 196 0 197
Default and written down 18 0 18 12 1 13
Total 39,833 2,419 42,252 38,061 2,560 40,621


Gross loans and commitments sold to SpareBank 1 Næringskreditt

  31 Dec 2019 31 Dec 2018
(NOK million) Gross
loans		 Other
commitments		 Total loans and commitments Gross loans Other commitments Total loans and commitments
Lowest risk 1,667 0 1,667 1,496 0 1,496
Low risk 0 0 0 0 0 0
Medium risk 0 0 0 287 0 287
High risk 0 0 0 0 0 0
Highest risk 0 0 0 0 0 0
Default and written down 0 0 0 0 0 0
Total 1,667 0 1,667 1,782 0 1,782

Financial results

Annual report and notes

Downloads

© SpareBank 1 SMN