Note 10 - Losses on loans and guarantees
| 2021 | 2020 | |||||
| Parent Bank (NOKm) | RM | CM | Total | RM | CM | Total |
| Change in provision for expected credit losses for the period | -11 | 39 | 27 | 49 | 666 | 715 |
| Actual loan losses on commitments exceeding provisions made | 10 | 107 | 117 | 14 | 197 | 212 |
| Recoveries on commitments previously written-off | -9 | -1 | -10 | -7 | -18 | -25 |
| Losses for the period on loans and guarantees | -10 | 145 | 134 | 56 | 846 | 902 |
In 2021, the Bank has written off NOK 184 million, which are still subject to enforcement activities, the corresponding figure for 2020 was NOK 116 million.
| 2021 | 2020 | |||||
| Group (NOKm) | RM | CM | Total | RM | CM | Total |
| Change in provision for expected credit losses for the period | -20 | 50 | 30 | 48 | 681 | 729 |
| Actual loan losses on commitments exceeding provisions made | 30 | 112 | 142 | 55 | 213 | 268 |
| Recoveries on commitments previously written-off | -9 | -3 | -12 | -25 | -21 | -46 |
| Losses for the period on loans and guarantees | 1 | 159 | 161 | 78 | 873 | 951 |
In 2021, the Group has written off NOK 200 million, which are still subject to enforcement activities, the corresponding figure for 2020 was NOK 130 million.
| Parent Bank (NOKm) | 1 Jan 21 | Change in provision | Net write-offs/ recoveries |
31 Dec 21 |
| Loans as amortised cost- CM | 1,377 | 38 | -117 | 1,298 |
| Loans as amortised cost- RM | 35 | 8 | -12 | 31 |
| Loans at fair value over OCI- RM | 147 | -19 | - | 128 |
| Loans at fair value over OCI- CM | 0 | 1 | - | 1 |
| Provision for expected credit losses on loans and guarantees | 1,559 | 27 | -129 | 1,458 |
| Presented as | ||||
| Provision for loan losses | 1,446 | 30 | -129 | 1,348 |
| Other debt- provisons | 81 | -2 | - | 79 |
| Other comprehensive income - fair value adjustment | 32 | -1 | - | 31 |
| Parent Bank (NOKm) | 1 Jan 20 | Change in provision | Net write-offs/ recoveries |
31 Dec 20 |
| 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 (NOKm) | 1 Jan 21 | Change in provision | Net write-offs/ recoveries |
31 Dec 21 |
| Loans as amortised cost- CM | 1,421 | 50 | -128 | 1,343 |
| Loans as amortised cost- RM | 62 | -1 | -12 | 49 |
| Loans at fair value over OCI- RM | 147 | -19 | - | 128 |
| Loans at fair value over OCI- CM | 0 | 1 | - | 1 |
| Provision for expected credit losses on loans and guarantees | 1,630 | 30 | -140 | 1,520 |
| Presented as | ||||
| Provision for loan losses | 1,517 | 33 | -140 | 1,410 |
| Other debt- provisons | 81 | -2 | - | 79 |
| Other comprehensive income - fair value adjustment | 32 | -1 | - | 31 |
| Group (NOKm) | 1 Jan 20 | Change in provision | Net write-offs/ recoveries |
31 Dec 20 |
| 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 |
| Accrual for losses on loans | ||||||||
| 31 Dec 2021 | 31 Dec 2020 | |||||||
| Parent Bank (NOKm) | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total |
| Retail market | ||||||||
| Opening balance | 35 | 97 | 47 | 180 | 25 | 73 | 45 | 143 |
| Transfer to (from) stage 1 | 20 | -20 | -0 | - | 14 | -13 | -0 | - |
| Transfer to (from) stage 2 | -2 | 2 | -0 | - | -1 | 2 | -0 | - |
| Transfer to (from) stage 3 | -1 | -6 | 7 | - | -0 | -3 | 3 | - |
| Net remeasurement of loss allowances | -22 | 24 | -3 | -1 | -17 | 12 | 9 | 5 |
| Originations or purchases | 19 | 17 | 1 | 37 | 13 | 13 | 0 | 26 |
| Derecognitions | -12 | -32 | -4 | -48 | -8 | -23 | -2 | -33 |
| Changes due to changed input assumptions | 1 | -0 | - | 1 | 10 | 38 | 2 | 50 |
| Actual loan losses | 0 | 0 | -12 | -12 | - | - | -11 | -11 |
| Closing balance | 39 | 82 | 36 | 156 | 35 | 97 | 47 | 180 |
| Corporate Market | ||||||||
| Opening balance | 88 | 387 | 823 | 1,299 | 66 | 210 | 540 | 816 |
| Transfer to (from) stage 1 | 15 | -15 | - | - | 14 | -14 | -0 | - |
| Transfer to (from) stage 2 | -5 | 5 | - | - | -4 | 4 | -0 | - |
| Transfer to (from) stage 3 | -2 | -26 | 28 | - | -0 | -1 | 1 | - |
| Net remeasurement of loss allowances | -26 | 26 | 38 | 39 | -2 | 72 | 486 | 556 |
| Originations or purchases | 32 | 21 | 100 | 153 | 45 | 99 | 1 | 144 |
| Derecognitions | -20 | -145 | -1 | -166 | -30 | -96 | -1 | -127 |
| Changes due to changed input assumptions | 1 | 14 | - | 15 | -0 | 113 | 2 | 115 |
| Actual loan losses | - | - | -117 | -117 | - | - | -206 | -206 |
| Closing balance | 84 | 268 | 871 | 1,223 | 88 | 387 | 823 | 1,299 |
| Total accrual for loan losses | 123 | 350 | 907 | 1,379 | 123 | 484 | 870 | 1,478 |
| 31 Dec 2021 | 31 Dec 2020 | |||||||
| Group (NOKm) | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total |
| Retail market | ||||||||
| Opening balance | 42 | 107 | 58 | 207 | 32 | 84 | 56 | 172 |
| Transfer to (from) stage 1 | 22 | - 22 | - 0 | - | 14 | - 13 | - 0 | - |
| Transfer to (from) stage 2 | - 2 | 3 | - 0 | - | 0 | - 0 | - 0 | - |
| Transfer to (from) stage 3 | - 1 | - 7 | 8 | - | - 1 | - 2 | 3 | - |
| Net remeasurement of loss allowances | - 23 | 26 | - 1 | 2 | - 17 | 11 | 11 | 5 |
| Originations or purchases | 22 | 20 | 1 | 43 | 12 | 15 | 5 | 31 |
| Derecognitions | - 14 | - 37 | - 9 | - 60 | - 6 | - 20 | 1 | - 25 |
| Changes due to changed input assumptions | - 0 | - 2 | - 4 | - 5 | 7 | 33 | - 6 | 35 |
| Actual loan losses | - | - | - 12 | - 12 | - | - | - 11 | - 11 |
| Closing balance | 45 | 89 | 40 | 174 | 42 | 107 | 58 | 207 |
| Corporate Market | ||||||||
| Opening balance | 98 | 399 | 845 | 1,342 | 71 | 218 | 560 | 849 |
| Transfer to (from) stage 1 | 20 | - 20 | - 0 | - | 14 | - 14 | - 0 | - |
| Transfer to (from) stage 2 | - 7 | 7 | - 0 | - | - 2 | 2 | - 0 | - |
| Transfer to (from) stage 3 | - 2 | - 27 | 29 | - | - 1 | 0 | 1 | - |
| Net remeasurement of loss allowances | - 29 | 31 | 42 | 44 | - 2 | 72 | 484 | 555 |
| Originations or purchases | 35 | 23 | 112 | 169 | 46 | 103 | 3 | 151 |
| Derecognitions | - 21 | - 146 | - 2 | - 169 | - 26 | - 93 | 10 | - 109 |
| Changes due to changed input assumptions | - 2 | 12 | - 2 | 9 | - 2 | 111 | - 4 | 106 |
| Actual loan losses | - | - | - 128 | - 128 | - | - | - 209 | - 209 |
| Closing balance | 94 | 278 | 896 | 1,268 | 98 | 399 | 845 | 1,342 |
| Total accrual for loan losses | 138 | 367 | 936 | 1,442 | 140 | 507 | 902 | 1,549 |
| Accrual for losses on guarantees and unused credit lines | ||||||||
| 31 Dec 2021 | 31 Dec 2020 | |||||||
| Parent Bank and Group (NOKm) | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total |
| Opening balance | 27 | 50 | 4 | 81 | 14 | 29 | 57 | 100 |
| Transfer to (from) stage 1 | 6 | -6 | -0 | - | 2 | -2 | -0 | - |
| Transfer to (from) stage 2 | -7 | 7 | - | - | -0 | 0 | -0 | - |
| Transfer to (from) stage 3 | -0 | -1 | 1 | - | -0 | -0 | 0 | - |
| Net remeasurement of loss allowances | -9 | 4 | 0 | -4 | 2 | 16 | -54 | -36 |
| Originations or purchases | 7 | 4 | 0 | 11 | 11 | 8 | 0 | 19 |
| Derecognitions | -6 | -5 | -0 | -11 | -5 | -13 | -0 | -19 |
| Changes due to changed input assumptions | 0 | 2 | - | 2 | 3 | 12 | 0 | 16 |
| Actual loan losses | - | - | - | - | - | - | - | - |
| Closing balance | 19 | 55 | 5 | 79 | 27 | 50 | 4 | 81 |
| Of which | ||||||||
| Retail market | 2 | 2 | ||||||
| Corporate Market | 76 | 79 | ||||||
| Provision for credit losses specified by industry | ||||||||
| 31 Dec 2021 | 31 Dec 2020 | |||||||
| Parent Bank (NOKm) | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total |
| Agriculture and forestry | 2 | 31 | 6 | 39 | 2 | 34 | 5 | 41 |
| Fisheries and hunting | 6 | 7 | 0 | 13 | 6 | 2 | - | 8 |
| Sea farming industries | 1 | 0 | 0 | 2 | 2 | 0 | 3 | 5 |
| Manufacturing | 5 | 36 | 15 | 56 | 8 | 25 | 2 | 35 |
| Construction, power and water supply | 13 | 16 | 14 | 43 | 11 | 27 | 17 | 55 |
| Retail trade, hotels and restaurants | 8 | 28 | 11 | 46 | 10 | 30 | 17 | 58 |
| Maritime sector | 14 | 118 | 555 | 687 | 10 | 180 | 614 | 804 |
| Property management | 20 | 50 | 36 | 105 | 20 | 56 | 38 | 114 |
| Business services | 13 | 12 | 222 | 247 | 12 | 56 | 142 | 210 |
| Transport and other services | 7 | 6 | 17 | 30 | 8 | 10 | 2 | 19 |
| Public administration | 0 | - | - | 0 | 0 | - | - | 0 |
| Other sectors | 0 | 0 | - | 0 | 0 | 0 | - | 0 |
| Wage earners | 2 | 47 | 30 | 79 | 2 | 65 | 31 | 97 |
| Total provision for losses on loans | 91 | 350 | 907 | 1,348 | 91 | 484 | 870 | 1,446 |
| Loan loss allowance on loans at FVOCI | 31 | 31 | 32 | 32 | ||||
| Total loan loss allowance | 123 | 350 | 907 | 1,379 | 123 | 484 | 870 | 1,478 |
| 31 Dec 2021 | 31 Dec 2020 | |||||||
| Group (NOKm) | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total |
| Agriculture and forestry | 3 | 33 | 7 | 42 | 3 | 36 | 5 | 44 |
| Fisheries and hunting | 6 | 7 | 0 | 13 | 6 | 2 | - | 8 |
| Sea farming industries | 1 | 1 | 1 | 3 | 3 | 1 | 3 | 6 |
| Manufacturing | 7 | 38 | 21 | 66 | 10 | 27 | 7 | 44 |
| Construction, power and water supply | 16 | 19 | 18 | 53 | 13 | 31 | 20 | 64 |
| Retail trade, hotels and restaurants | 9 | 28 | 16 | 53 | 12 | 31 | 19 | 62 |
| Maritime sector | 14 | 118 | 555 | 687 | 10 | 180 | 614 | 804 |
| Property management | 20 | 50 | 36 | 106 | 20 | 56 | 39 | 115 |
| Business services | 14 | 14 | 227 | 255 | 13 | 57 | 143 | 213 |
| Transport and other services | 8 | 7 | 22 | 37 | 10 | 12 | 10 | 32 |
| Public administration | 0 | - | 0 | 0 | 0 | - | - | 0 |
| Other sectors | 0 | 0 | - | 0 | 0 | 0 | 2 | 2 |
| Wage earners | 7 | 53 | 34 | 95 | 7 | 73 | 41 | 122 |
| Total provision for losses on loans | 107 | 367 | 936 | 1,410 | 108 | 507 | 902 | 1,517 |
| Loan loss allowance on loans at FVOCI | 31 | 31 | 32 | 32 | ||||
| Total loan loss allowance | 138 | 367 | 936 | 1,442 | 140 | 507 | 902 | 1,549 |
| 31 Dec 2021 | 31 Dec 2020 | |||||||
| Parent Bank (NOKm) | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total |
| Retail Market | ||||||||
| Opening balance | 73,297 | 4,430 | 381 | 78,108 | 69,045 | 5,129 | 487 | 74,661 |
| Transfer to stage 1 | 1,007 | -1,002 | -6 | - | 1,050 | -1,019 | -31 | - |
| Transfer to stage 2 | -1,325 | 1,332 | -7 | - | -1,433 | 1,470 | -38 | - |
| Transfer to stage 3 | -61 | -87 | 148 | - | -30 | -47 | 77 | - |
| Net increase/decrease amount existing loans | -2,513 | -102 | -15 | -2,630 | -2,093 | -136 | -7 | -2,237 |
| New loans | 43,464 | 1,198 | 118 | 44,780 | 49,001 | 1,464 | 111 | 50,575 |
| Derecognitions | -31,569 | -1,876 | -156 | -33,601 | -42,243 | -2,429 | -196 | -44,867 |
| Financial assets with actual loan losses | 0 | -1 | -20 | -21 | -1 | -2 | -22 | -24 |
| Closing balance | 82,299 | 3,892 | 444 | 86,636 | 73,297 | 4,430 | 381 | 78,108 |
| Corporate Market | ||||||||
| Opening balance | 35,587 | 5,979 | 1,702 | 43,268 | 33,190 | 3,971 | 1,470 | 38,632 |
| Transfer to stage 1 | 647 | -647 | -0 | - | 521 | -521 | -0 | - |
| Transfer to stage 2 | -1,434 | 1,434 | - | - | -2,605 | 2,614 | -9 | - |
| Transfer to stage 3 | -43 | -593 | 637 | - | -70 | -685 | 754 | - |
| Net increase/decrease amount existing loans | -1,202 | -196 | -39 | -1,437 | -1,541 | -208 | 38 | -1,711 |
| New loans | 13,125 | -550 | 1,074 | 13,649 | 17,141 | 1,672 | 328 | 19,141 |
| Derecognitions | -8,320 | -236 | -524 | -9,081 | -11,046 | -753 | -862 | -12,662 |
| Financial assets with actual loan losses | -1 | -4 | -193 | -199 | -2 | -111 | -19 | -132 |
| Closing balance | 38,359 | 5,186 | 2,656 | 46,201 | 35,587 | 5,979 | 1,702 | 43,268 |
| Fixed interest loans at FV | 4,276 | 4,276 | 4,285 | 4,285 | ||||
| Total gross loans at the end of the period | 124,934 | 9,079 | 3,100 | 137,113 | 113,169 | 10,409 | 2,083 | 125,660 |
| 31 Dec 2021 | 31 Dec 2020 | |||||||
| Group (NOKm) | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total |
| Retail Market | ||||||||
| Opening balance | 78,206 | 5,208 | 453 | 83,867 | 73,675 | 5,924 | 570 | 80,169 |
| Transfer to stage 1 | 1,227 | -1,221 | -6 | - | 1,260 | -1,225 | -35 | - |
| Transfer to stage 2 | -1,598 | 1,609 | -11 | - | -1,731 | 1,785 | -54 | - |
| Transfer to stage 3 | -74 | -132 | 206 | - | -44 | -89 | 133 | - |
| Net increase/decrease amount existing loans | -2,599 | -154 | -28 | -2,782 | -2,136 | -196 | -15 | -2,346 |
| New loans | 46,190 | 1,465 | 125 | 47,781 | 51,383 | 1,702 | 119 | 53,204 |
| Derecognitions | -33,775 | -2,161 | -189 | -36,125 | -43,512 | -2,624 | -239 | -46,375 |
| Financial assets with actual loan losses | -0 | -1 | -20 | -21 | -689 | -70 | -25 | -784 |
| Closing balanse | 87,577 | 4,612 | 531 | 92,721 | 78,206 | 5,208 | 453 | 83,867 |
| Corporate Market | ||||||||
| Opening balance | 38,107 | 6,587 | 1,802 | 46,496 | 35,466 | 4,426 | 1,539 | 41,431 |
| Transfer to stage 1 | 879 | -876 | -2 | - | 693 | -690 | -4 | - |
| Transfer to stage 2 | -1,795 | 1,797 | -1 | - | -2,897 | 2,909 | -11 | - |
| Transfer to stage 3 | -57 | -626 | 683 | - | -107 | -695 | 801 | - |
| Net increase/decrease amount existing loans | -652 | -257 | -53 | -963 | -1,589 | -265 | 34 | -1,819 |
| New loans | 14,533 | -455 | 1,085 | 15,164 | 18,238 | 1,875 | 349 | 20,462 |
| Derecognitions | -9,159 | -397 | -561 | -10,117 | -11,287 | -815 | -883 | -12,985 |
| Financial assets with actual loan losses | -1 | -4 | -193 | -199 | -410 | -159 | -24 | -593 |
| Balance at 31 December | 41,855 | 5,768 | 2,759 | 50,382 | 38,107 | 6,587 | 1,802 | 46,496 |
| Closing balanse | ||||||||
| Fixed interest loans at FV | 4,198 | 4,198 | 4,285 | 4,285 | ||||
| Total gross loans at the end of the period | 133,630 | 10,381 | 3,290 | 147,301 | 120,598 | 11,794 | 2,255 | 134,648 |
Financial results
Annual report and notes
