Sparebanken Møre

Audit Report / Information • Sep 11, 2024

Adjustment in calibration of IRB Model for corporates

Adjustment in calibration of IRB Model for corporates

In the financial reporting for 2nd quarter 2023 presented on august 10th, 2023 was informed of the Financial Supervisory Authority of Norway (FSA) letter dated June 22nd 2023 with the FSA approval of the Sparebanken Møres request to adopt new IRB models for corporates. The new model to be implemented during 2nd half of 2023 and the estimated improved CET1 to be 0,5 p.p. In the financial report for 4th quarter 2023 the CET1 effect was 0,7 p.p.

The utilisation and monitoring of the new IRB Model up to and included 2nd quarter 2024 shows an effect on CET1 to be higher than previous expected and above the effect from 4th quarter 2023. Sparebanken Møre have, based on the monitoring of the model so fare this year, decided to adjust the calibration to better reflect the portfolio development.

The adjustment in calibration will be effective from 3rd quarter 2024 and separately have a negative effect on CET1 of 0,8 p.p. compared to 2nd quarter 2024.

Sparebanken Møre reported by 2nd quarter 2024 a CET1 of 19,1% well above the CET1 minimum requirement of 16,15% (14,9% excl. P2G).

Contacts

John Arne Winsnes, CFO, Mobile +47 462 80 999

Kåre Helvik Morken, Head of Risk, Mobile +47 408 62 062

This information is subject to the disclosure requirements pursuant to section 5-12 of the Securities Trading Act.