Note 10 - Losses on loans and guarantees
| Parent Bank | 2020 | 2019 | ||||
| Losses on loans and guarantees (NOK million) | RM | CM | Total | RM | CM | Total |
| Change in provision for expected credit losses for the period | 49 | 666 | 715 | 28 | 205 | 234 |
| Actual loan losses on commitments exceeding provisions made | 14 | 197 | 212 | 10 | 9 | 19 |
| Recoveries on commitments previously written-off | -7 | -18 | -25 | -5 | -1 | -7 |
| Losses for the period on loans and guarantees | 56 | 846 | 902 | 32 | 213 | 245 |
| Group | 2020 | 2019 | ||||
| Losses on loans and guarantees (NOK million) | RM | CM | Total | RM | CM | Total |
| Change in provision for expected credit losses for the period | 48 | 681 | 729 | 34 | 212 | 246 |
| Actual loan losses on commitments exceeding provisions made | 55 | 213 | 268 | 40 | 22 | 62 |
| Recoveries on commitments previously written-off | -25 | -21 | -46 | -6 | -2 | -8 |
| Losses for the period on loans and guarantees | 78 | 873 | 951 | 68 | 231 | 299 |
| Parent Bank (NOK million) | 1 Jan 20 | Change in provision |
Net write-offs/ recoveries |
31 Dec 2020 |
| Loans as amortised cost- CM | 916 | 667 | -206 | 1,377 |
| Loans as amortised cost- RM | 34 | 12 | -11 | 35 |
| Loans at fair value over OCI- RM | 109 | 38 | - | 147 |
| Loans at fair value over OCI- CM | 1 | -1 | - | 0 |
| Provision for expected credit losses on loans and guarantees | 1,060 | 715 | -217 | 1,559 |
| Presented as | ||||
| Provision for loan losses | 937 | 725 | -217 | 1,446 |
| Other debt- provisons | 100 | -19 | - | 81 |
| Other comprehensive income - fair value adjustment | 23 | 9 | - | 32 |
| Group (NOK million) | 1 Jan 20 | Change in provision |
Net write-offs / recoveries |
31 Dec 2020 |
| Loans as amortised cost- CM | 948 | 682 | -209 | 1,421 |
| Loans as amortised cost- RM | 63 | 10 | -11 | 62 |
| Loans at fair value over OCI- RM | 109 | 38 | - | 147 |
| Loans at fair value over OCI- CM | 1 | -1 | - | 0 |
| Provision for expected credit losses on loans and guarantees | 1,121 | 729 | -220 | 1,630 |
| Presented as | ||||
| Provision for loan losses | 998 | 739 | -220 | 1,517 |
| Other debt- provisons | 100 | -19 | - | 81 |
| Other comprehensive income - fair value adjustment | 23 | 9 | - | 32 |
| Parent Bank (NOK million) | 1 Jan 19 | Change in provision |
Net write-offs/ recoveries |
31 Dec 2019 |
| Loans as amortised cost- CM | 742 | 201 | -27 | 916 |
| Loans as 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 19 | 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 | -36 | 998 |
| Other debt- provisons | 148 | -48 | - | 100 |
| Other comprehensive income - fair value adjustment | 17 | 6 | - | 23 |
| Development in allowance for credit losses during the period | ||||||||
| 2020 | 2019 | |||||||
| Parent Bank (NOK million) | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total |
| Retail market | ||||||||
| Opening balance | 25 | 73 | 45 | 143 | 27 | 62 | 31 | 120 |
| Transfer to (from) stage 1 | 14 | -13 | -0 | - | 10 | -10 | - | - |
| Transfer to (from) stage 2 | -1 | 2 | -0 | - | -2 | 2 | - | - |
| Transfer to (from) stage 3 | -0 | -3 | 3 | - | - | -3 | 3 | - |
| Net remeasurement of loss allowances | -17 | 12 | 9 | 5 | -11 | 24 | 18 | 30 |
| Originations or purchases | 13 | 13 | 0 | 26 | 13 | 17 | 1 | 31 |
| Derecognitions | -8 | -23 | -2 | -33 | -11 | -20 | -1 | -33 |
| Changes due to changed input assumptions | 10 | 38 | 2 | 50 | - | - | - | - |
| Actual loan losses | 0 | 0 | -11 | -11 | - | - | -5 | -5 |
| Closing balance | 35 | 97 | 47 | 180 | 25 | 73 | 45 | 143 |
| Corporate Market | ||||||||
| Opening balance | 66 | 210 | 540 | 816 | 64 | 148 | 382 | 594 |
| Transfer to (from) stage 1 | 14 | -14 | -0 | - | 19 | -19 | - | - |
| Transfer to (from) stage 2 | -4 | 4 | -0 | - | -8 | 8 | - | - |
| Transfer to (from) stage 3 | -0 | -1 | 1 | - | - | - | 1 | - |
| Net remeasurement of loss allowances | -2 | 72 | 486 | 556 | -17 | 98 | 185 | 266 |
| Originations or purchases | 45 | 99 | 1 | 144 | 27 | 20 | 1 | 48 |
| Derecognitions | -30 | -96 | -1 | -127 | -20 | -43 | - | -63 |
| Changes due to changed input assumptions | -0 | 113 | 2 | - | - | - | - | - |
| Actual loan losses | - | - | -206 | -206 | - | - | -27 | -27 |
| Closing balance | 88 | 387 | 823 | 1,299 | 66 | 210 | 541 | 817 |
| Total accrual for loan losses | 123 | 484 | 870 | 1,478 | 91 | 283 | 586 | 961 |
| Accrual for losses on loans | 2020 | 2019 | ||||||
| Group (NOK million) | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total |
| Retail Market | ||||||||
| Opening balance | 32 | 84 | 56 | 172 | 33 | 71 | 39 | 143 |
| Transfer to (from) stage 1 | 16 | -15 | -1 | - | 12 | - 11 | - | - |
| Transfer to (from) stage 2 | -2 | 3 | -1 | - | - 2 | 4 | - 1 | - |
| Transfer to (from) stage 3 | -0 | -4 | 5 | - | - | - 3 | 4 | - |
| Net remeasurement of loss allowances | -18 | 15 | 14 | 11 | - 14 | 24 | 22 | 32 |
| Originations or purchases | 15 | 15 | 3 | 34 | 17 | 23 | 3 | 44 |
| Derecognitions | -11 | -28 | -10 | -49 | - 13 | - 23 | - 5 | - 41 |
| Changes due to changed input assumptions | 10 | 38 | 2 | 50 | - | - | - | - |
| Actual loan losses | - | - | - 11 | - 11 | - | - | - 5 | - 5 |
| Closing balance | 42 | 107 | 58 | 207 | 32 | 84 | 56 | 172 |
| Corporate Market | ||||||||
| Opening balance | 71 | 218 | 560 | 849 | 70 | 152 | 397 | 619 |
| Transfer to (from) stage 1 | 16 | -16 | -0 | - | 20 | - 20 | - | - |
| Transfer to (from) stage 2 | -4 | 5 | -0 | - | - 9 | 9 | - | - |
| Transfer to (from) stage 3 | -0 | -1 | 1 | - | - | - 1 | 1 | - |
| Net remeasurement of loss allowances | -1 | 77 | 488 | 563 | - 19 | 100 | 188 | 268 |
| Originations or purchases | 49 | 102 | 1 | 161 | 30 | 21 | 7 | 59 |
| Derecognitions | -32 | -98 | 10 | -136 | - 20 | - 44 | - 2 | - 66 |
| Changes due to changed input assumptions | -0 | 113 | 2 | 115 | - | - | - | - |
| Actual loan losses | - | - | -209 | -209 | - | - | - 31 | - 31 |
| Closing balance | 98 | 399 | 845 | 1,342 | 71 | 218 | 560 | 849 |
| Total accrual for loan losses | 140 | 507 | 902 | 1,549 | 104 | 302 | 616 | 1,021 |
| Development in Gross loans from Opening to Closing balance | ||||||||
| 2020 | 2019 | |||||||
| Parent Bank (NOK million) | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total |
| Retail Market | ||||||||
| Balance at 1 January | 69,045 | 5,129 | 487 | 74,661 | 65,403 | 4,366 | 320 | 70,089 |
| Transfer to stage 1 | 1,050 | -1,019 | -31 | - | 893 | -877 | -16 | - |
| Transfer to stage 2 | -1,433 | 1,470 | -38 | - | -1,847 | 1,872 | -25 | - |
| Transfer to stage 3 | -30 | -47 | 77 | - | -60 | -135 | 195 | - |
| Net increase/decrease amount existing loans | -2,093 | -136 | -7 | -2,237 | -1,843 | -123 | -21 | -1,986 |
| New loans | 49,001 | 1,464 | 111 | 50,575 | 43,549 | 1,588 | 178 | 45,315 |
| Derecognitions | -42,243 | -2,429 | -196 | -44,867 | -37,050 | -1,562 | -145 | -38,756 |
| Financial assets with actual loan losses | -1 | -2 | -22 | -24 | - | - | - | - |
| Balance at 31 December | 73,297 | 4,430 | 381 | 78,108 | 69,045 | 5,129 | 487 | 74,661 |
| Corporate Market | ||||||||
| Balance at 1 January | 33,190 | 3,971 | 1,470 | 38,632 | 32,055 | 5,521 | 1,223 | 38,800 |
| Transfer to stage 1 | 521 | -521 | -0 | - | 1,586 | -1,561 | -26 | - |
| Transfer to stage 2 | -2,605 | 2,614 | -9 | - | -1,405 | 1,446 | -41 | - |
| Transfer to stage 3 | -70 | -685 | 754 | - | -8 | -227 | 234 | - |
| Net increase/decrease amount existing loans | -1,541 | -208 | 38 | -1,711 | -1,638 | -91 | -7 | -1,736 |
| New loans | 17,141 | 1,672 | 328 | 19,141 | 11,323 | 205 | 319 | 11,848 |
| Derecognitions | -11,046 | -753 | -862 | -12,662 | -8,723 | -1,324 | -232 | -10,279 |
| Financial assets with actual loan losses | -2 | -111 | -19 | -132 | 0 | 0 | - | - |
| Balance at 31 December | 35,587 | 5,979 | 1,702 | 43,268 | 33,190 | 3,971 | 1,470 | 38,632 |
| Fixed interest loans at FV | 4,285 | 4,285 | 4,677 | 4,677 | ||||
| Total gross loans at 31 December | 113,169 | 10,409 | 2,083 | 125,660 | 106,912 | 9,101 | 1,957 | 117,970 |
| Development in Gross loans from Opening to Closing balance | ||||||||
| 2020 | 2019 | |||||||
| Group (NOK million) | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total |
| Retail Market | ||||||||
| Balance at 1 January | 73,675 | 5,924 | 570 | 80,169 | 69,736 | 4,951 | 386 | 75,073 |
| Transfer to stage 1 | 1,260 | -1,225 | -35 | - | 1,053 | -1,034 | -19 | - |
| Transfer to stage 2 | -1,731 | 1,785 | -54 | - | -2,184 | 2,217 | -33 | - |
| Transfer to stage 3 | -44 | -89 | 133 | - | -84 | -164 | 248 | - |
| Net increase/decrease amount existing loans | -2,136 | -196 | -15 | -2,346 | -2,867 | -277 | -31 | -3,175 |
| New loans | 51,383 | 1,702 | 119 | 53,204 | 45,617 | 1,901 | 196 | 47,715 |
| Derecognitions | -43,512 | -2,624 | -239 | -46,375 | -37,596 | -1,669 | -165 | -39,430 |
| Financial assets with actual loan losses | -689 | -70 | -25 | -784 | -2 | -1 | -12 | -14 |
| Balance at 31 December | 78,206 | 5,208 | 453 | 83,867 | 73,675 | 5,924 | 570 | 80,169 |
| Corporate Market | ||||||||
| Balance at 1 January | 35,466 | 4,426 | 1,539 | 41,431 | 33,897 | 5,881 | 1,299 | 41,076 |
| Transfer to stage 1 | 693 | -690 | -4 | - | 1,659 | -1,631 | -28 | - |
| Transfer to stage 2 | -2,897 | 2,909 | -11 | - | -1,681 | 1,736 | -55 | - |
| Transfer to stage 3 | -107 | -695 | 801 | - | -42 | -237 | 279 | - |
| Net increase/decrease amount existing loans | -1,589 | -265 | 34 | -1,819 | -1,682 | -164 | -22 | -1,868 |
| New loans | 18,238 | 1,875 | 349 | 20,462 | 12,682 | 261 | 326 | 13,269 |
| Derecognitions | -11,287 | -815 | -883 | -12,985 | -9,367 | -1,414 | -230 | -11,011 |
| Financial assets with actual loan losses | -410 | -159 | -24 | -593 | 0 | -5 | -30 | -35 |
| Balance at 31 December | 38,107 | 6,587 | 1,802 | 46,496 | 35,466 | 4,426 | 1,539 | 41,431 |
| Fixed interest loans at FV | 4,285 | 4,285 | 4,677 | 4,677 | ||||
| Total gross loans at 31 December | 120,598 | 11,794 | 2,255 | 134,648 | 113,817 | 10,350 | 2,110 | 126,277 |
| Accrual for losses on guarantees and unused credit lines | ||||||||
| 2020 | 2019 | |||||||
| Parent Bank and Group (NOK million) | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total |
| Opening balance | 14 | 29 | 57 | 100 | 11 | 47 | 90 | 148 |
| Transfer to (from) stage 1 | 2 | -2 | -0 | - | 3 | -3 | -0 | - |
| Transfer to (from) stage 2 | -0 | 0 | -0 | - | -1 | 1 | - | - |
| Transfer to (from) stage 3 | -0 | -0 | 0 | - | -0 | -0 | 0 | - |
| Net remeasurement of loss allowances | 2 | 16 | -54 | -36 | -2 | 3 | -33 | -33 |
| Originations or purchases | 11 | 8 | 0 | 19 | 7 | 1 | 0 | 8 |
| Derecognitions | -5 | -13 | -0 | -19 | -3 | -20 | -0 | -24 |
| Changes due to changed input assumptions | 3 | 12 | 0 | 16 | - | - | - | - |
| Closing balance | 27 | 50 | 4 | 81 | 14 | 29 | 57 | 100 |
| Of which | ||||||||
| Retail market | 2 | 2 | ||||||
| Corporate Market | 79 | 98 | ||||||
| Provision for credit losses specified by industry | ||||||||
| 2020 | 2019 | |||||||
| Parent Bank (NOK million) | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total |
| Agriculture and forestry | 2 | 34 | 5 | 41 | 2 | 21 | 7 | 30 |
| Fisheries and hunting | 6 | 2 | - | 8 | 2 | 1 | 0 | 3 |
| Sea farming industries | 2 | 0 | 3 | 5 | 1 | 0 | - | 1 |
| Manufacturing | 8 | 25 | 2 | 35 | 5 | 9 | 5 | 20 |
| Construction, power and water supply | 11 | 27 | 17 | 55 | 10 | 5 | 11 | 26 |
| Retail trade, hotels and restaurants | 10 | 30 | 17 | 58 | 10 | 8 | 11 | 28 |
| Maritime sector | 10 | 180 | 614 | 804 | 9 | 87 | 471 | 568 |
| Property management | 20 | 56 | 38 | 114 | 16 | 45 | 23 | 83 |
| Business services | 12 | 56 | 142 | 210 | 7 | 50 | 22 | 79 |
| Transport and other services | 8 | 10 | 2 | 19 | 7 | 4 | 3 | 14 |
| Public administration | 0 | - | - | 0 | - | - | - | - |
| Other sectors | 0 | 0 | - | 0 | - | - | - | - |
| Wage earners | 2 | 65 | 31 | 97 | - | 52 | 33 | 86 |
| Total provision for losses on loans | 91 | 484 | 870 | 1,446 | 68 | 283 | 586 | 937 |
| loan loss allowance on loans at FVOCI | 32 | - | - | 32 | 23 | - | - | 24 |
| Total loan loss allowance | 123 | 484 | 870 | 1,478 | 91 | 283 | 586 | 961 |
| Provision for credit losses specified by industry | ||||||||
| 2020 | 2019 | |||||||
| Group (NOK million) | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total |
| Agriculture and forestry | 3 | 36 | 5 | 44 | 2 | 22 | 8 | 32 |
| Fisheries and hunting | 6 | 2 | - | 8 | 2 | 1 | 0 | 3 |
| Sea farming industries | 3 | 1 | 3 | 6 | 1 | 0 | - | 1 |
| Manufacturing | 10 | 27 | 7 | 44 | 6 | 11 | 9 | 27 |
| Construction, power and water supply | 13 | 31 | 20 | 64 | 11 | 8 | 16 | 35 |
| Retail trade, hotels and restaurants | 12 | 31 | 19 | 62 | 11 | 8 | 11 | 30 |
| Maritime sector | 10 | 180 | 614 | 804 | 9 | 87 | 471 | 568 |
| Property management | 20 | 56 | 39 | 115 | 16 | 45 | 23 | 84 |
| Business services | 13 | 57 | 143 | 213 | 8 | 51 | 24 | 82 |
| Transport and other services | 10 | 12 | 10 | 32 | 8 | 5 | 8 | 21 |
| Public administration | 0 | - | - | 0 | - | - | - | - |
| Other sectors | 0 | 0 | 2 | 2 | 2 | 0 | 0 | 2 |
| Wage earners | 7 | 73 | 41 | 122 | 6 | 63 | 44 | 112 |
| Total provision for losses on loans | 108 | 507 | 902 | 1,517 | 81 | 302 | 615 | 998 |
| loan loss allowance on loans at FVOCI | 32 | - | - | 32 | 23 | - | - | 24 |
| Total loan loss allowance | 140 | 507 | 902 | 1,549 | 104 | 302 | 615 | 1,021 |
Financial results
Annual report and notes
