Note 8 - Loans and advances to customers

Parent Bank   Group
31 Dec 2019 31 Dec 2020 (NOK million) 31 Dec 2020 31 Dec 2019
117,970 125,660 Gross Loans 134,648 126,277
937 1,446 Write-downs for expected credit losses 1517 998.2133934
117,033 124,214 Net loans to and advances to customers 133,131 125,279
         
    Additional information    
39,833 46,613 Loans sold to SpareBank 1 Boligkreditt 46,613 39,833
608 760 - Of which loans to employees 1,380 1,061
1,667 1,540 Loans sold to SpareBank 1 Næringskreditt 1,540 1,667
         
43 43  Subordinated loan capital other financial institutions  43 43
998 1,027 Loans to employees 1) 1,907 1,924
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 2019 31 Dec 2020 Loans and commitments specified by type (NOK million) 31 Dec 2020 31 Dec 2019
         
    Gross loans and advances    
- - Financial lease 3,365 5,849
13,222 10,592 Bank overdraft and operating credit 10,042 12,588
3,161 3,976 Construction loans 3,976 3,161
101,587 111,093 Amortizing loan 117,265 104,680
117,970 125,660 Total gross loans to and receivables from customers 134,648 126,277
         
    Other commitments    
4,538 3,915 Financial guarantees, of which: 3,915 4,538
1,064 1,151 Payment guarantees 1,151 1,064
1,108 1,238 Performance guarantees 1,238 1,108
1,172 980 Loan guarantees 980 1,172
100 119 Guarantees for taxes 119 100
1,093 427 Other guarantee commitments 427 1,093
         
998 992 Unutilised guarantee commitments 992 998
16,781 17,089 Unutilised credits 17,105 16,796
1,597 1,019 Loans approvals (not discounted) 1,136 1,692
12 12 Documentary credits 12 12
23,925 23,026 Total other commitments 23,160 24,036
         
141,895 148,686 Total loans and commitments 157,808 150,313

   

Loans and other commitments specified by sector and industry

  31 Dec 2020 31 Dec 2019
Parent Bank (NOK million) Gross
loans		 Other
commitments		 Total loans
and
commitments		 Gross
loans		 Other
commitments		 Total loans
and
commitments
Wage earners 72,101 5,480 77,581 69,711 5,669 75,380
Public administration 9 416 425 2 513 515
Agriculture and forestry 9,160 865 10,026 8,602 820 9,422
Fisheries and hunting 5,243 529 5,772 4,601 123 4,724
Sea farming industries 1,704 1,717 3,422 833 766 1,599
Manufacturing 2,234 2,661 4,895 2,212 3,069 5,282
Construction, power and water supply 3,195 2,817 6,011 3,157 2,707 5,864
Retail trade, hotels and restaurants 2,289 2,309 4,598 2,181 2,379 4,561
Maritime sector and offshore 4,537 1,667 6,203 4,660 3,227 7,887
Property management 13,887 1,020 14,908 13,133 855 13,988
Business services 3,644 881 4,525 2,445 874 3,319
Transport and other services provision 6,032 2,163 8,195 4,542 2,420 6,962
Other sectors 1,626 501 2,127 1,890 503 2,393
Total 125,660 23,026 148,686 117,970 23,925 141,895

 

  31 Dec 2020 31 Dec 2019
Group (NOK million) Gross
loans		 Other
commitments		 Total loans
and
commitments		 Gross
loans		 Other
commitments		 Total loans
and
commitments
Wage earners 77,848 5,550 83,398 75,203 5,728 80,932
Public administration 33 417 450 12 513 525
Agriculture and forestry 9,591 871 10,461 8,947 824 9,771
Fisheries and hunting 5,259 529 5,789 4,611 123 4,734
Sea farming industries 2,100 1,722 3,822 1,132 769 1,901
Manufacturing 2,646 2,666 5,312 2,595 3,073 5,668
Construction, power and water supply 4,077 2,827 6,904 3,970 2,716 6,686
Retail trade, hotels and restaurants 2,586 2,329 4,915 2,517 2,392 4,908
Maritime sector and offshore 4,537 1,667 6,203 4,660 3,227 7,887
Property management 13,969 1,021 14,990 13,211 856 14,067
Business services 3,423 886 4,309 2,146 877 3,023
Transport and other services provision 6,942 2,174 9,116 5,409 2,435 7,844
Other sectors 1,638 501 2,139 1,863 503 2,367
Total 134,648 23,160 157,808 126,277 24,036 150,313


Loans and other commitments specified by geographic area

  31 Dec 2020 31 Dec 2019
Parent Bank (NOK million) Gross
loans		 Other
commitments		 Total loans
and
commitments		 Gross
loans		 Other
commitments		 Total loans
and
commitments
Trøndelag 82,308 14,496 96,804 76,405 13,927 90,331
Møre og Romsdal 25,481 6,520 32,002 24,428 8,504 32,932
Nordland 1,024 43 1,067 1,158 40 1,198
Oslo 7,127 634 7,761 6,686 553 7,240
Rest of Norway 9,391 1,312 10,703 8,944 888 9,833
Abroad 329 21 350 349 13 362
Total 125,660 23,026 148,686 117,970 23,925 141,895

 

  31 Dec 2020 31 Dec 2019
Group (NOK million) Gross
loans		 Other
commitments		 Total loans
and
commitments		 Gross
loans		 Other
commitments		 Total loans
and
commitments
Trøndelag 85,762 14,630 100,392 79,487 13,976 93,462
Møre og Romsdal 27,191 6,520 33,712 26,113 8,522 34,635
Nordland 1,183 43 1,226 1,296 42 1,337
Oslo 6,700 634 7,334 6,276 555 6,831
Rest of Norway 13,482 1,312 14,793 12,756 929 13,685
Abroad 329 21 350 349 13 362
Total 134,648 23,160 157,808 126,277 24,036 150,313

 

Gross loans sold to SpareBank 1 Boligkreditt

  31 Dec 2020 31 Dec 2019
(NOK million) Gross
loans		 Other
commitments		 Total loans
and
commitments		 Gross
loans		 Other
commitments		 Total loans
and
commitments
Trøndelag 33,338 1,899 35,237 29,452 1,822 31,275
Møre og Romsdal 6,629 404 7,033 5,844 426 6,270
Nordland 186 6 192 179 6 185
Oslo 2,246 71 2,317 1,619 56 1,675
Rest of Norway 4,144 109 4,253 2,694 108 2,801
Abroad 70 2 72 45 1 46
Total 46,613 2,491 49,105 39,833 2,419 42,252

 

Gross loans sold to SpareBank 1 Næringskreditt

  31 Dec 2020 31 Dec 2019
(NOK million) Gross
loans		 Other
commitments		 Total loans
and
commitments		 Gross
loans		 Other
commitments		 Total loans
and
commitments
Trøndelag 1,032 - 1,032 1,081 - 1,081
Møre og Romsdal 58 - 58 60 - 60
Nordland - - 0 59 - 59
Oslo 404 - 404 419 - 419
Rest of Norway 47 - 47 48 - 48
Abroad - - - - - -
Total 1,540 - 1,540 1,667 - 1,667

 

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

Group (NOK million) 31 Dec 2020 31 Dec 2019
Gross advances related to financial leasing    
- Maturity less than 1 year 212 129
- Maturity more than 1 year and less than 5 years 2,705 2,184
- Maturity more than 5 years 543 823
Total gross claims 3,460 3,135
     
Received income related to financial leasing, not yet earned 95 87
Net investments related to financial leasing 3,365 3,048
     
Net investments in financial leasing can be broken down as follows:    
- Maturity less than 1 year 163 121
- Maturity more than 1 year and less than 5 years 2,662 2,118
- Maturity more than 5 years 540 809
Total net claims 3,365 3,048

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 11 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 credit impaired    
Parent Bank 31 Dec 2020 (NOK million) Lowest
risk		 Low
risk		 Medium
risk		 High
risk		 Highest
risk		 Default
and
credit
impaired		 Total
               
Gross Loans              
Fair value through OCI 61,617 8,152 2,957 864 1,001 284 74,876
Stage 1 61,542 7,241 1,218 263 232 - 70,496
Stage 2 75 911 1,739 601 769 - 4,096
Stage 3 - - - - - 284 284
               
Amortised cost 21,035 12,498 9,306 1,311 551 1,798 46,500
Stage 1 19,784 10,260 7,336 763 245 - 38,388
Stage 2 1,251 2,238 1,970 548 306 - 6,313
Stage 3 - - - - - 1,798 1,798
               
Fair value through Profit and Loss 3,597 465 135 48 39 2 4,285
Total Gross Loans 86,250 21,115 12,398 2,222 1,592 2,084 125,660
               
Other Commitments 12,565 4,806 4,605 629 230 192 23,026
Stage 1 12,092 4,555 3,233 447 56 - 20,383
Stage 2 473 250 1,373 182 173 - 2,451
Stage 3 - - - - - 192 192
               
Total loans and other commitments 98,815 25,920 17,003 2,851 1,821 2,277 148,686

 

 

  Neither default or credit impaired    
Parent Bank 31 Dec 2019 (NOK million) Lowest
risk		 Low
risk		 Medium
risk		 High
risk		 Highest
risk		 Default
and
credit
impaired		 Total
               
Gross Loans              
Fair value through 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 through 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 credit impaired    
Group 31 Dec 2020 (NOK million) Lowest
risk		 Low
risk		 Medium
risk		 High
risk		 Highest
risk		 Default
and
credit
impaired		 Total
               
Gross Loans              
Fair value through OCI 61,617 8,152 2,957 864 1,001 284 74,876
Stage 1 61,542 7,241 1,218 263 232 - 70,496
Stage 2 75 911 1,739 601 769 - 4,096
Stage 3 - - - - - 284 284
               
Amortised cost 20,593 14,401 15,311 2,113 1,097 1,971 55,487
Stage 1 19,342 12,159 12,901 1,164 245 - 45,811
Stage 2 1,251 2,243 2,410 949 852 - 7,705
Stage 3 - - - - - 1,971 1,971
               
Fair value through Profit and Loss 3,597 465 135 48 39 2 4,285
Total Gross Loans 85,808 23,018 18,402 3,025 2,138 2,257 134,648
               
Other Commitments 12,568 4,832 4,690 640 237 192 23,160
Stage 1 12,095 4,582 3,311 447 56 - 20,492
Stage 2 473 250 1,379 193 181 - 2,476
Stage 3 - - - - - 192 192
               
Total loans and other commitments 98,376 27,851 23,092 3,665 2,375 2,449 157,808

 

  Neither default or credit impaired    
Group 31 Dec 2019 (NOK million) Lowest
risk		 Low
risk		 Medium
risk		 High
risk		 Highest
risk		 Default
and
credit
impaired		 Total
               
Gross Loans              
Fair value through 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 through 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


Gross loans and commitments sold to SpareBank 1 Boligkreditt

  31 Dec 2020 31 Dec 2019
(NOK million) Gross loans Other commitments Total loans and commitments Gross loans Other commitments Total loans and commitments
Lowest risk 40,790 2,481 43,271 34,808 2,410 37,218
Low risk 4,320 7 4,327 3,457 7 3,464
Medium risk 967 3 970 1,075 1 1,076
High risk 302 0 302 208 0 208
Highest risk 218 0 218 267 1 268
Default and written down 16 - 16 18 - 18
Total 46,613 2,491 49,105 39,834 2,419 42,253


Gross loans and commitments sold to SpareBank 1 Næringskreditt

  31 Dec 2020 31 Dec 2019
(NOK million) Gross loans Other commitments Total loans and commitments Gross loans Other commitments Total loans and commitments
Lowest risk 1,455 - 1,455 1,667 - 1,667
Low risk 85 - 85 - - -
Medium risk - - - - - -
High risk - - - - - -
Highest risk - - - - - -
Default and written down - - - - - -
Total 1,540 - 1,540 1,667 - 1,667

Financial results

Annual report and notes

Downloads

© SpareBank 1 SMN