Note 8 - Loans and advances to customers

Accounting Policy

Loans held in “hold to collect” business model are measured at amortised cost. Amortised cost is acquisition cost less repayments of principal, plus or minus cumulative amortisation resulting from the effective interest rate method, with deductions for loss provisions. The effective interest rate is the interest rate which precisely discounts estimated future cash in- or out-payments over the financial instrument’s expected lifetime.

The Bank sells only parts of the loans qualified for transfer to SpareBank 1 Boligkreditt. Loans included in business models (portfolios) with loans qualifying for transfer are therefore held both to collect cash flows and for sales. The Bank therefore classify all residential mortgages at fair value over other comprehensive income. Fair value on such loans at initial recognition are measured at the transaction price, without reduction for 12 month expected credit loss.

Fixed interest loans to customers are recognised at fair value. Gains and losses due to changes in fair value are recognised in the income statement as fair value changes. Accrued interest and premiums/discounts are recognised as interest. Interest rate risk on fixed interest loans is managed through interest rate swaps which are recognised at fair value. It is the group’s view that recognising fixed interest loans at fair value provides more relevant information on carrying values. 

Parent Bank   Group
31 Dec 2021 31 Dec 2022 (NOK million) 31 Dec 2022 31 Dec 2021
137,113 140,549 Gross Loans 152,629 147,301
1,348 999 Write-downs for expected credit losses 1,081 1,410
135,766 139,550 Net loans to and advances to customers 151,549 145,890
         
    Additional information    
46,650 56,876 Loans sold to SpareBank 1 Boligkreditt 56,876 46,650
578 718 - Of which loans to employees 1,349 1,106
1,402 1,739 Loans sold to SpareBank 1 Næringskreditt 1,739 1,402
         
78 78  Subordinated loan capital other financial institutions  - -
1,261 1,394 Loans to employees 1) 2,450 2,173

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.
Eksporter til Excel

Loans and commitments specified by type

Parent Bank   Group
31 Dec 2021 31 Dec 2022 Loans and commitments specified by type (NOK million) 31 Dec 2022 31 Dec 2021
         
    Gross loans and advances    
- - Financial lease 3,728 3,392
11,460 12,236 Bank overdraft and operating credit 12,236 11,549
4,173 3,825 Construction loans 3,825 4,173
121,480 124,488 Amortizing loan 132,841 128,187
137,113 140,549 Total gross loans to and receivables from customers 152,629 147,301
         
    Other commitments    
4,549 6,067 Financial guarantees, of which: 6,067 4,549
924 1,493 Payment guarantees 1,493 924
1,282 1,177 Performance guarantees 1,177 1,282
894 712 Loan guarantees 712 894
67 62 Guarantees for taxes 62 67
1,383 2,624 Other guarantee commitments 2,624 1,383
         
1,175 1,047 Unutilised guarantee commitments 1,047 1,175
13,570 12,143 Unutilised credits 12,459 13,788
6,435 4,745 Loans approvals (not discounted) 4,950 6,584
19 5 Documentary credits 5 19
25,747 24,007 Total other commitments 24,527 26,115
         
162,860 164,556 Total loans and commitments 177,157 173,415
Eksporter til Excel

 

Loans and other commitments specified by sector and industry

  31 Dec 2022 31 Dec 2021
Parent Bank (NOK million) Gross
loans		 Other
commitments		 Total loans
and
commitments		 Gross
loans		 Other
commitments		 Total loans
and
commitments
Wage earners 77,965 7,273 85,239 80,178 8,153 88,331
Public administration 1 692 694 2 944 945
Agriculture and forestry 10,707 955 11,662 9,433 864 10,297
Fisheries and hunting 7,047 902 7,949 5,853 1,904 7,756
Sea farming industries 2,324 1,145 3,469 1,926 1,680 3,606
Manufacturing 2,563 2,201 4,765 2,151 1,958 4,109
Construction, power and water supply 4,370 2,741 7,111 3,169 2,132 5,301
Retail trade, hotels and restaurants 2,976 1,719 4,695 2,572 1,562 4,134
Maritime sector and offshore 5,382 548 5,929 4,715 1,121 5,836
Property management 16,983 2,433 19,416 15,522 2,119 17,641
Business services 3,561 860 4,421 4,497 952 5,449
Transport and other services provision 5,327 1,551 6,878 5,714 1,376 7,089
Other sectors 1,343 986 2,329 1,383 982 2,365
Total 140,549 24,007 164,556 137,113 25,747 162,860
Eksporter til Excel

 

  31 Dec 2022 31 Dec 2021
Group (NOK million) Gross loans Other
commitments		 Total loans
and
commitments		 Gross
loans		 Other
commitments		 Total loans
and
commitments
Wage earners 84,957 7,572 92,529 86,244 8,370 94,614
Public administration 35 694 729 34 945 979
Agriculture and forestry 11,140 974 12,114 9,783 877 10,659
Fisheries and hunting 7,075 904 7,979 5,870 1,904 7,774
Sea farming industries 2,656 1,159 3,814 2,176 1,689 3,865
Manufacturing 3,150 2,226 5,376 2,766 1,980 4,746
Construction, power and water supply 5,526 2,790 8,317 4,124 2,166 6,289
Retail trade, hotels and restaurants 3,632 1,747 5,380 2,966 1,576 4,541
Maritime sector and offshore 5,382 548 5,929 4,715 1,121 5,836
Property management 17,101 2,438 19,538 15,643 2,124 17,766
Business services 4,312 893 5,206 4,990 972 5,961
Transport and other services provision 6,375 1,595 7,970 6,667 1,409 8,076
Other sectors 1,288 987 2,275 1,325 983 2,308
Total 152,629 24,527 177,157 147,301 26,115 173,415
Eksporter til Excel

Loans and other commitments specified by geographic area

  31 Dec 2022 31 Dec 2021
Parent Bank (NOK million) Gross
loans		 Other
commitments		 Total loans
and
commitments		 Gross
loans		 Other
commitments		 Total loans
and
commitments
Trøndelag 91,519 14,931 106,449 91,521 14,788 106,309
Møre og Romsdal 29,612 5,341 34,953 27,698 7,558 35,256
Nordland 1,056 44 1,101 1,051 62 1,113
Oslo 7,087 2,051 9,138 6,322 1,437 7,759
Rest of Norway 10,935 1,609 12,543 10,271 1,875 12,146
Abroad 340 31 371 250 27 277
Total 140,549 24,007 164,556 137,113 25,747 162,860
             
  31 Dec 2022 31 Dec 2021
Group (NOK million) Gross
loans		 Other
commitments		 Total loans
and
commitments		 Gross
loans		 Other
commitments		 Total loans
and
commitments
Trøndelag 95,640 15,111 110,751 95,160 14,923 110,083
Møre og Romsdal 31,946 5,441 37,387 29,509 7,623 37,131
Nordland 1,317 55 1,372 1,263 69 1,333
Oslo 7,512 2,069 9,581 6,524 1,444 7,968
Rest of Norway 15,875 1,820 17,695 14,594 2,029 16,623
Abroad 340 31 371 250 27 277
Total 152,629 24,527 177,157 147,301 26,115 173,415
Eksporter til Excel

Gross loans sold to SpareBank 1 Boligkreditt

  31 Dec 2022 31 Dec 2021
(NOK million) Gross
loans		 Other
commitments		 Total loans
and
commitments		 Gross
loans		 Other
commitments		 Total loans
and
commitments
Trøndelag 36,923 1,676 38,599 31,440 1,819 33,259
Møre og Romsdal 8,631 384 9,015 6,855 392 7,247
Nordland 341 8 349 244 5 249
Oslo 3,248 57 3,304 2,598 58 2,656
Rest of Norway 7,693 104 7,796 5,404 95 5,499
Abroad 40 0 40 110 2 112
Total 56,876 2,229 59,104 46,650 2,371 49,021
Eksporter til Excel

Gross loans sold to SpareBank 1 Næringskreditt

  31 Dec 2022 31 Dec 2021
(NOK million) Gross
loans		 Other
commitments		 Total loans
and
commitments		 Gross
loans		 Other
commitments		 Total loans
and
commitments
Trøndelag 1,430 0 1,430 1,018 0 1,018
Møre og Romsdal 53 0 53 54 0 54
Nordland 0 0 0 0 0 0
Oslo 256 0 256 285 0 285
Rest of Norway 0 0 0 44 0 44
Abroad 0 0 0 0 0 0
Total 1,739 0 1,739 1,402 0 1,402
Eksporter til Excel

 

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

Group (NOK million) 31 Dec 2022 31 Dec 2021
Gross advances related to financial leasing    
- Maturity less than 1 year 113 106
- Maturity more than 1 year and less than 5 years 2,377 2,176
- Maturity more than 5 years 1,169 1,014
Total gross claims 3,658 3,296
     
Received income related to financial leasing, not yet earned 105 95
Net investments related to financial leasing 3,728 3,392
     
Net investments in financial leasing can be broken down as follows:    
- Maturity less than 1 year 127 119
- Maturity more than 1 year and less than 5 years 2,450 2,244
- Maturity more than 5 years 1,151 1,028
Total net claims 3,728 3,392
Eksporter til Excel

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 10 losses on loans and guarantees for a further description of these commitments. 

  Neither default or credit impaired    
Parent Bank 31 Dec 22 (NOK million) Lowest risk Low risk Medium risk High risk Highest risk Default
and
credit impaired		 Total
               
Gross Loans              
Fair value through OCI 71,072 6,518 2,488 635 925 372 82,010
Stage 1 70,927 5,671 963 229 188 - 77,978
Stage 2 144 848 1,525 406 737 - 3,660
Stage 3 - - - - - 372 372
               
Amortised cost 26,194 11,451 12,497 1,553 633 1,502 53,830
Stage 1 24,784 10,085 10,195 913 167 - 46,144
Stage 2 1,410 1,365 2,302 640 467 - 6,184
Stage 3 - - - - - 1,502 1,502
               
Fair value through Profit and Loss 3,962 595 99 11 38 4 4,709
Total Gross Loans 101,227 18,564 15,083 2,200 1,597 1,878 140,549
               
Other Commitments 14,300 5,910 3,009 520 96 173 24,007
Stage 1 14,238 5,771 2,555 75 24 - 22,663
Stage 2 62 139 454 445 71 - 1,171
Stage 3 - - - - - 173 173
               
Total loans and other commitments 115,527 24,473 18,093 2,719 1,693 2,051 164,556
Eksporter til Excel

 

  Neither default or credit impaired    
Parent Bank 31 Dec 21 (NOK million) Lowest risk Low risk Medium risk High risk Highest risk Default
and
credit
impaired		 Total
               
Gross Loans              
Fair value through OCI 71,241 7,516 2,455 785 851 304 83,152
Stage 1 71,130 6,739 996 211 203 - 79,280
Stage 2 111 777 1,458 574 648 - 3,568
Stage 3 - - - - - 304 304
               
Amortised cost 23,283 12,471 9,438 1,239 458 2,796 49,685
Stage 1 22,751 10,258 7,569 634 166 - 41,378
Stage 2 532 2,213 1,868 605 292 - 5,511
Stage 3 - - - - - 2,796 2,796
               
Fair value through Profit and Loss 3,686 426 117 25 15 6 4,276
Total Gross Loans 98,211 20,413 12,010 2,049 1,325 3,106 137,113
               
Other Commitments 15,588 6,063 3,007 805 178 106 25,747
Stage 1 15,399 5,726 2,467 355 38 - 23,985
Stage 2 189 336 541 450 140 - 1,655
Stage 3 - - - - - 106 106
               
Total loans and other commitments 113,799 26,476 15,017 2,854 1,503 3,212 162,860
Eksporter til Excel

 

  Neither default or credit impaired    
Group 31 Dec 22 (NOK million) Lowest risk Low risk Medium risk High risk Highest risk Default
and
credit
impaired		 Total
               
Gross Loans              
Fair value through OCI 71,072 6,518 2,488 635 925 372 82,010
Stage 1 70,927 5,671 963 229 188 - 77,978
Stage 2 144 848 1,525 406 737 - 3,660
Stage 3 - - - - - 372 372
               
Amortised cost 27,250 13,973 19,084 2,605 1,403 1,673 65,989
Stage 1 25,840 12,598 16,471 1,535 167 - 56,611
Stage 2 1,410 1,375 2,612 1,071 1,236 - 7,705
Stage 3 - - - - - 1,673 1,673
               
Fair value through Profit and Loss 3,884 595 99 11 38 4 4,631
Total Gross Loans 102,206 21,086 21,670 3,252 2,366 2,049 152,629
               
Other Commitments 14,300 5,910 3,530 520 96 173 24,527
Stage 1 14,238 5,771 2,827 75 24 - 22,934
Stage 2 62 139 703 445 71 - 1,420
Stage 3 - - - - - 173 173
               
Total loans and other commitments 116,505 26,996 25,200 3,772 2,462 2,222 177,157
Eksporter til Excel

 

  Neither default or credit impaired    
Group 31 Dec 21 (NOK million) Lowest risk Low risk Medium risk High risk Highest risk Default
and
credit
impaired		 Total
               
Gross Loans              
Fair value through OCI 71,241 7,516 2,455 785 851 304 83,152
Stage 1 71,130 6,739 996 211 203 - 79,280
Stage 2 111 777 1,458 574 648 - 3,568
Stage 3 - - - - - 304 304
               
Amortised cost 23,800 14,444 15,809 1,921 991 2,986 59,950
Stage 1 23,268 12,227 13,454 1,032 166 - 50,147
Stage 2 532 2,217 2,355 888 825 - 6,818
Stage 3 - - - - - 2,986 2,986
               
Fair value through Profit and Loss 3,608 426 117 25 15 6 4,198
Total Gross Loans 98,649 22,386 18,381 2,731 1,857 3,296 147,301
               
Other Commitments 15,588 6,063 3,375 805 178 106 26,115
Stage 1 15,399 5,726 2,680 355 38 - 24,199
Stage 2 189 336 695 450 140 - 1,809
Stage 3 - - - - - 106 106
               
Total loans and other commitments 114,237 28,449 21,756 3,536 2,035 3,402 173,415
Eksporter til Excel

 

Gross loans and commitments sold to SpareBank 1 Boligkreditt

  31 Dec 2022 31 Dec 2021
(NOK million) Gross
loans		 Other
commitments		 Total loans
and
commitments		 Gross
loans		 Other
commitments		 Total loans
and commitments
Lowest risk 48,752 2,217 50,969 39,955 2,363 42,318
Low risk 6,261 7 6,268 4,972 4 4,976
Medium risk 1,259 4 1,263 1,121 3 1,125
High risk 327 0 327 297 1 298
Highest risk 220 - 220 279 0 279
Default and written down 58 0 58 24 0 24
Total 56,876 2,229 59,104 46,650 2,491 49,021
Eksporter til Excel


Gross loans and commitments sold to SpareBank 1 Næringskreditt

  31 Dec 2022 31 Dec 2021
(NOK million) Gross
loans		 Other
commitments		 Total loans
and
commitments		 Gross
loans		 Other
commitments		 Total loans
and
commitments
Lowest risk 1,496 - 1,496 1,402 - 1,402
Low risk 147 - 147 - - -
Medium risk 96 - 96 - - -
High risk - - - - - -
Highest risk - - - - - -
Default and written down - - - - - -
Total 1,739 - 1,739 1,402 - 1,402
Eksporter til Excel

Financial results

Annual report and notes

Downloads

© SpareBank 1 SMN