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 8 on loans and advances to customers and note 20 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) 2019 2018 2019 2018
Outstanding loans as at 1 January 6,833 5,909 4,583 4,609
Loans issued in the period 1,617 1,200 1 31
Repayments 600 276 3 45
Outstanding loans as at 31 December 7,850 6,833 4,581 4,595
Interest rate income 140 130 139 125
Bonds and subordinated loans as at 31 December 159 158 623 858
Deposits (NOK million)        
Deposits as at 1 January 1,292 938 1,388 2,061
Contribution received during the period 45,304 42,985 55,805 52,419
Withdrawals 45,047 42,684 56,242 52,936
Deposits as at 31 December 1,549 1,238 951 1,544
Interest rate expenses 27 19 13 13
Securities trading 348 28 108 204
Commission income SpareBank 1 Boligkreditt - - 348 340
Commission income SpareBank 1 Næringskreditt - - 16 16
Issued guarantees and amount guaranteed 111 110 20 23

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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