Note 10 - Losses on loans and guarantees
| Parent Bank | 2019 | 2018 | ||||
| Losses on loans and guarantees (NOK million) | RM | CM | Total | RM | CM | Total |
| Change in provision for expected credit losses for the period | 28 | 205 | 234 | 18 | 126 | 144 |
| Actual loan losses on commitments exceeding provisions made | 10 | 9 | 19 | 6 | 86 | 93 |
| Recoveries on commitments previously written-off | -7 | -1 | -8 | -7 | -1 | -8 |
| Losses for the period on loans and guarantees | 32 | 213 | 245 | 17 | 212 | 229 |
| Group | 2019 | 2018 | ||||
| Losses on loans and guarantees (NOK million) | RM | CM | Total | RM | CM | Total |
| Change in provision for expected credit losses for the period | 34 | 212 | 246 | 23 | 127 | 150 |
| Actual loan losses on commitments exceeding provisions made | 40 | 22 | 62 | 30 | 98 | 127 |
| Recoveries on commitments previously written-off | -6 | -2 | -8 | -13 | -1 | -15 |
| Losses for the period on loans and guarantees | 68 | 231 | 299 | 40 | 223 | 263 |
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 2019, and still subject to enforcement activities amount to NOK 243 million kroner for the Bank and NOK 303 million for the group.
| Parent Bank (NOK million) | 1 Jan 2019 |
Change in provision | Net write-offs/ recoveries |
31 Dec 2019 |
| Loans at amortised cost-CM | 742 | 201 | -27 | 916 |
| Loans at amortised cost-RM | 45 | -6 | -5 | 34 |
| Loans at fair value over OCI-RM | 75 | 34 | - | 109 |
| Loans at fair value over OCI-CM | 1 | - | 1 | |
| Provision for expected credit losses on loans and guarantees | 862 | 230 | -32 | 1,060 |
| Presented as | ||||
| Provision for loan losses | 697 | 272 | -32 | 937 |
| Other debt- provisons | 148 | -48 | - | 100 |
| Other comprehensive income - fair value adjustment | 17 | 6 | - | 23 |
| Group (NOK million) | 1 Jan 2019 |
Change in provision | Net write-offs/ recoveries |
31 Dec 2019 |
| Loans as amortised cost- CM | 766 | 212 | -31 | 948 |
| Loans as amortised cost- RM | 68 | 0 | -5 | 63 |
| Loans at fair value over OCI- RM | 75 | 34 | - | 109 |
| Loans at fair value over OCI- CM | 1 | - | 1 | |
| Provision for expected credit losses on loans and guarantees | 909 | 248 | -36 | 1,121 |
| Presented as | ||||
| Provision for loan losses | 744 | 290 | -32 | 937 |
| Other debt- provisons | 148 | -48 | - | 100 |
| Other comprehensive income - fair value adjustment | 17 | 6 | - | 23 |
| Parent Bank (NOKm) | 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 (NOKm) | 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 |
| Development in allowance for credit losses during the period | |||||||||
| Parent bank | 2019 | 2018 | |||||||
| Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | ||
| Retail Market | |||||||||
| Opening Balance 1 January | 27 | 62 | 31 | 120 | 19 | 45 | 34 | 97 | |
| Provision for credit losses | |||||||||
| Transfer to (from) stage 1 | 10 | -10 | -0 | - | 7 | -7 | -0 | - | |
| Transfer to (from) stage 2 | -2 | 2 | -0 | - | -1 | 1 | -0 | - | |
| Transfer to (from) stage 3 | -0 | -3 | 3 | - | -0 | -2 | 2 | - | |
| Net remeasurement of loss allowances | -11 | 24 | 18 | 30 | -7 | 16 | 12 | 21 | |
| Originations or purchases | 13 | 17 | 1 | 31 | 18 | 25 | 0 | 43 | |
| Derecognitions | -11 | -20 | -1 | -33 | -8 | -17 | -1 | -26 | |
| Actual loan losses | -5 | -5 | -15 | -15 | |||||
| Closing balance 31 December | 25 | 73 | 45 | 143 | 27 | 62 | 31 | 120 | |
| Corporate Market | |||||||||
| Opening Balance 1 January | 64 | 148 | 382 | 594 | 63 | 150 | 735 | 948 | |
| Provision for credit losses | |||||||||
| Transfer to (from) stage 1 | 19 | -19 | -0 | - | 23 | -23 | - | - | |
| Transfer to (from) stage 2 | -8 | 8 | - | - | -4 | 4 | -0 | - | |
| Transfer to (from) stage 3 | -0 | -0 | 1 | - | -0 | -1 | 1 | - | |
| Net remeasurement of loss allowances | -17 | 98 | 185 | 266 | -22 | 34 | 50 | 62 | |
| Originations or purchases | 27 | 20 | 1 | 48 | 28 | 49 | 0 | 77 | |
| Derecognitions | -20 | -43 | -0 | -63 | -24 | -66 | -4 | -94 | |
| Actual loan losses | - | - | -27 | -27 | -400 | -400 | |||
| Closing balance 31 December | 66 | 210 | 541 | 817 | 64 | 148 | 382 | 594 | |
| Total Allowance for credit losses | 91 | 283 | 586 | 961 | 91 | 210 | 413 | 714 | |
| Development in Gross loans from Opening to Closing balance | |||||||||
| Parent bank | 2019 | 2018 | |||||||
| Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | ||
| Retail marked | |||||||||
| Opening Balance 1 January | 65,403 | 4,366 | 320 | 70,089 | 60,278 | 4,159 | 344 | 64,782 | |
| Transfer to (from) stage 1 | 893 | -877 | -15 | - | 974 | -974 | - | - | |
| Transfer to (from) stage 2 | -1,846 | 1,872 | -25 | - | -1,457 | 1,463 | -6 | - | |
| Transfer to (from) stage 3 | -60 | -135 | 195 | - | -35 | -101 | 136 | - | |
| Net increase/(decrease) amount existing loans | -1,843 | -123 | -21 | -1,986 | -2,654 | -458 | -170 | -3,282 | |
| New loans | 43,549 | 1,588 | 178 | 45,315 | 35,775 | 765 | 36 | 36,576 | |
| Derecognitions | -37,048 | -1,560 | -133 | -38,742 | -27,477 | -487 | -9 | -27,973 | |
| Financial assets with actual loan losses | -2 | -1 | -12 | -14 | -1 | - | -12 | -13 | |
| Closing balance 31 December | 69,045 | 5,129 | 487 | 74,661 | 65,403 | 4,366 | 320 | 70,088 | |
| Corporate | |||||||||
| Opening Balance 1 January | 32,055 | 5,521 | 1,223 | 38,800 | 30,796 | 5,771 | 1,215 | 37,782 | |
| Transfer to (from) stage 1 | 1,586 | -1,561 | -26 | - | 1,256 | -1,256 | - | - | |
| Transfer to (from) stage 2 | -1,405 | 1,446 | -41 | - | -1,180 | 1,181 | -1 | - | |
| Transfer to (from) stage 3 | -8 | -227 | 234 | - | -423 | 70 | 353 | - | |
| Net increase/(decrease) amount existing loans | -1,638 | -91 | -7 | -1,736 | -2,519 | -38 | 166 | -2,391 | |
| New Loans | 11,323 | 205 | 319 | 11,848 | 10,445 | 1,373 | 142 | 11,960 | |
| Derecognitions | -8,723 | -1,319 | -203 | -10,244 | -6.319 | -1,579 | -623 | -8,521 | |
| Financial assets with actual loan losses | - | -5 | -30 | -35 | - | -1 | -29 | -30 | |
| Closing balance 31 December | 33,190 | 3,969 | 1,469 | 41,431 | 32,055 | 5,521 | 1,223 | 38,800 | |
| Loans at fair value through profit and loss | 4,677 | 4,467 | |||||||
| Total Gross Loans | 102,235 | 9,101 | 1957 | 117,970 | 97,458 | 9,888 | 1,543 | 113,356 | |
| Development in allowance for credit losses during the period |
| Group | 2019 | 2018 | |||||||
| Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | ||
| Retail Market | |||||||||
| Opening Balance 1 January | 33 | 71 | 39 | 143 | 24 | 52 | 38 | 114 | |
| Provision for credit losses | |||||||||
| Transfer to (from) stage 1 | 12 | -11 | -0 | - | 8 | -8 | -0 | - | |
| Transfer to (from) stage 2 | -2 | 4 | -1 | - | -2 | 2 | -0 | - | |
| Transfer to (from) stage 3 | -0 | -3 | 4 | - | -0 | -3 | 3 | - | |
| Net remeasurement of loss allowances | -14 | 24 | 22 | 32 | -8 | 17 | 16 | 25 | |
| Originations or purchases | 17 | 23 | 3 | 44 | 21 | 28 | 2 | 51 | |
| Derecognitions | -13 | -23 | -5 | -41 | -9 | -18 | -5 | -32 | |
| Actual loan losses | - | - | -5 | -5 | - | - | -15 | -15 | |
| Closing balance 31 December | 32 | 84 | 56 | 172 | 33 | 71 | 39 | 142 | |
| Corporate Market | |||||||||
| Opening Balance 1 January | 70 | 152 | 397 | 619 | 68 | 154 | 749 | 970 | |
| Provision for credit losses | |||||||||
| Transfer to (from) stage 1 | 20 | -20 | -0 | - | 23 | -23 | - | - | |
| Transfer to (from) stage 2 | -9 | 9 | - | - | -5 | 5 | -0 | - | |
| Transfer to (from) stage 3 | -0 | -1 | 1 | - | -0 | -1 | 1 | - | |
| Net remeasurement of loss allowances | -19 | 100 | 188 | 268 | -24 | 35 | 55 | 67 | |
| Originations or purchases | 30 | 21 | 7 | 59 | 29 | 50 | 1 | 80 | |
| Derecognitions | -20 | -44 | -2 | -66 | -24 | -67 | -7 | -98 | |
| Actual loan losses | - | - | -31 | -31 | - | - | -402 | -400 | |
| Closing balance 31 December | 71 | 218 | 560 | 849 | 68 | 152 | 396 | 619 | |
| Total Allowance for credit losses | 104 | 302 | 616 | 1,021 | 101 | 223 | 435 | 761 | |
| Development in Gross loans from Opening to Closing balance | |||||||||
| Group | 2019 | 2018 | |||||||
| Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | ||
| Retail marked | |||||||||
| Opening Balance 1 January | 69,736 | 4,951 | 385 | 75,073 | 62,604 | 4,725 | 439 | 67,767 | |
| Transfer to (from) stage 1 | 1.053 | -1,033 | -19 | - | 1,118 | -1,074 | -44 | - | |
| Transfer to (from) stage 2 | -2,184 | 2,217 | -33 | - | -1,594 | 1,602 | -8 | - | |
| Transfer to (from) stage 3 | -83 | -164 | 248 | - | -15 | -124 | 138 | - | |
| Net increase/(decrease) amount existing loans | -2,867 | -277 | -31 | -3,175 | -2,024 | -539 | -140 | -2,703 | |
| New Loans | 45,617 | 1,901 | 196 | 47,715 | 37,832 | 945 | 49 | 38,826 | |
| Derecognitions | -37,596 | -1,669 | -165 | -39,430 | -28,183 | -584 | -36 | -28,803 | |
| Financial assets with actual loan losses | -2 | -1 | -12 | -14 | -1 | - | -12 | -13 | |
| Closing balance 31 December | 73,675 | 5,924 | 570 | 80,169 | 69,737 | 4,951 | 386 | 75,073 | |
| Corporate | |||||||||
| Opening Balance 1 January | 33,897 | 5.881 | 1,299 | 41,076 | 33,682 | 6,130 | 1,214 | 41,025 | |
| Transfer to (from) stage 1 | 1,659 | -1,631 | -28 | - | 1,321 | -1,317 | -4 | - | |
| Transfer to (from) stage 2 | -1,681 | 1,736 | -55 | - | -1,363 | 1,368 | -5 | - | |
| Transfer to (from) stage 3 | -42 | -237 | 279 | - | -449 | 52 | 397 | - | |
| Net increase/(decrease) amount existing loans | -1,682 | -164 | -22 | -1,868 | -4,064 | -145 | 213 | -3,997 | |
| New Loans | 12,682 | 260 | 326 | 13,269 | 11,135 | 1,404 | 148 | 12,686 | |
| Derecognitions | -9,367 | -1,414 | -230 | -11,011 | -6,503 | -1,611 | -637 | -8,751 | |
| Financial assets with actual loan losses | - | -5 | -30 | -35 | - | -1 | -29 | -30 | |
| Closing balance 31 December | 35,466 | 4,426 | 1,539 | 41,431 | 33,758 | 5,879 | 1,296 | 40,933 | |
| Loans at fair value through profit and loss | 4,677 | 4,467 | |||||||
| Total Gross Loans | 109.140 | 10.350 | 2.110 | 126,277 | 103,494 | 10,829 | 1,682 | 120,473 | |
| Provision for credit losses on guarantees and unused credit lines | 2019 | 2018 | |||||||
| Parent Bank and Group | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | |
| Opening Balance 1 January | 11 | 47 | 90 | 148 | 13 | 49 | 7 | 70 | |
| Provision for credit losses | |||||||||
| Transfer to (from) stage 1 | 3 | -3 | -0 | - | 2 | -2 | -0 | - | |
| Transfer to (from) stage 2 | -1 | 1 | - | - | -1 | 1 | -0 | - | |
| Transfer to (from) stage 3 | -0 | -0 | 0 | - | -0 | -0 | 0 | - | |
| Net remeasurement of loss allowances | -2 | 3 | -33 | -33 | -3 | 12 | 83 | 92 | |
| Originations or purchases | 7 | 1 | 0 | 8 | 6 | 3 | 0 | 9 | |
| Derecognitions | -3 | -20 | -0 | -24 | -6 | -17 | -0 | -23 | |
| Closing balance 31 December | 10 | 34 | 57 | 100 | 11 | 47 | 90 | 148 | |
| of which | |||||||||
| RM | 2 | 2 | |||||||
| CM | 98 | 147 | |||||||
| Provision for credit losses specified by sector and industry1) | 2019 | 2018 | |||||||
| Parent | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | |
| Wage earners | 25 | 53 | 29 | 107 | 20 | 44 | 24 | 88 | |
| Public administration | 0 | - | 0 | 0 | 0 | - | - | 0 | |
| Agriculture, forestry, fisheries and hunting | 4 | 23 | 7 | 34 | 8 | 16 | 5 | 30 | |
| Fish farming | 1 | 0 | - | 1 | 1 | 0 | - | 1 | |
| Industry and mining | 6 | 10 | 5 | 22 | 9 | 20 | 0 | 29 | |
| Building and construction, power and water supply | 14 | 7 | 14 | 35 | 11 | 11 | 21 | 43 | |
| Wholesale and retail trade, hotel og restaurant industry | 12 | 8 | 15 | 34 | 14 | 8 | 11 | 33 | |
| Maritime sector and offshore | 9 | 114 | 527 | 649 | 4 | 84 | 378 | 465 | |
| Property management | 16 | 45 | 23 | 84 | 19 | 37 | 20 | 76 | |
| Business services | 8 | 53 | 22 | 83 | 7 | 31 | 21 | 59 | |
| Transport and other services provision | 5 | 4 | 2 | 12 | 9 | 5 | 2 | 16 | |
| Other sectors | 0 | 0 | 0 | 0 | 0 | 0 | 22 | 22 | |
| Total | 101 | 316 | 644 | 1,061 | 102 | 257 | 503 | 861 | |
| Provision for credit losses specified by sector and industry1) | 2019 | 2018 | |||||||
| Group | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | |
| Wage earners | 31 | 63 | 40 | 134 | 25 | 52 | 33 | 109 | |
| Public administration | 0 | - | 0 | 0 | 0 | - | - | 0 | |
| Agriculture, forestry, fisheries and hunting | 5 | 24 | 7 | 36 | 9 | 18 | 6 | 33 | |
| Fish farming | 1 | 0 | - | 1 | 1 | 1 | - | 2 | |
| Industry and mining | 7 | 13 | 9 | 29 | 9 | 21 | 3 | 34 | |
| Building and construction, power and water supply | 16 | 9 | 17 | 41 | 12 | 13 | 24 | 49 | |
| Wholesale and retail trade, hotel og restaurant industry | 12 | 9 | 15 | 36 | 15 | 8 | 12 | 35 | |
| Maritime sector and offshore | 9 | 114 | 527 | 649 | 4 | 84 | 378 | 465 | |
| Property management | 17 | 45 | 23 | 85 | 19 | 37 | 20 | 76 | |
| Business services | 9 | 54 | 26 | 88 | 8 | 31 | 23 | 62 | |
| Transport and other services provision | 6 | 6 | 7 | 19 | 10 | 6 | 6 | 23 | |
| Other sectors | 0 | 0 | 0 | 0 | 0 | 0 | 22 | 22 | |
| Total | 113 | 335 | 671 | 1,120 | 112 | 271 | 526 | 909 | |
1)Provision for credit losses specified by sector includes provision for losses on guarantees and unused credit lines
Financial results
Annual report and notes
