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Storebrand ASA
Quarterly Report • Jul 12, 2024
3766_rns_2024-07-12_6538e0da-4b40-4125-8f2f-07d5cef69c3e.pdf
Quarterly Report
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Interim report 2nd quarter 2024
Storebrand Bank ASA (unaudited)
Contents
| Interim report Storebrand Bank Group 3 | |
|---|---|
| Income statement Storebrand Bank Group 5 | |
| Statement of financial position Storebrand Bank Group 6 | |
| Statement of changes in equity Storebrand Bank Group 7 | |
| Income statement Storebrand Bank ASA 8 | |
| Statement of financial position Storebrand Bank ASA 9 | |
| Statement of changes in equity Storebrand Bank ASA 10 | |
| Statement of cash flow 11 | |
| Notes 12 | |
| Declaration by the board 26 |
Important notice:
This document may contain forward-looking statements. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances that may be beyond the Storebrand Group's control. As a result, the Storebrand Group's actual future financial condition, performance and results may differ materially from the plans, goals and expectations set forth in these forward-looking statements. Important factors that may cause such a difference for the Storebrand Group include, but are not limited to: (i) the macroeconomic development, (ii) change in the competitive climate, (iii) change in the regulatory environment and other government actions and (iv) market related risks such as changes in equity markets, interest rates and exchange rates, and the performance of financial markets generally. The Storebrand Group assumes no responsibility to update any of the forward-looking statements contained in this document or any other forward-looking statements it may make. This document contains alternative performance measures (APM) as defined by The European Securities and Market Authority (ESMA). An overview of APM can be found at www.storebrand.com/ir.
Storebrand Bank Group
- Interim report for the second quarter of 2024
(Profit figures for the corresponding period in 2023 are shown in brackets. Balance sheet figures in brackets are for the end of 2023)
- Continued strong lending growth
- Strong growth in customer deposits
- Increased margins and return on equity (RoE)
- Some increase in volume of non-performing loans, but loan losses are still at an expected level
Loans outstanding increased by NOK 3.3 billion during the second quarter. The home mortgage portfolio managed on behalf of Storebrand Livsforsikring AS increased by NOK 0.2 billion during the quarter. The combined portfolio of loans in Storebrand Bank and Storebrand Livsforsikring increased by NOK 3.5 billion this quarter and by NOK 5.5 billion year to date.
Financial performance
The bank group achieved a pre-tax profit of NOK 184 million (NOK 152 million) in the quarter and NOK 332 million (NOK 248 million) year to date.
Net interest income was NOK 295 million (NOK 223 million) and NOK 564 million (NOK 425 million) year to date. Increased lending and deposit volumes as well as increased interest rates, influenced the net interest income positively both for the second quarter and year to date. Net interest income as a percentage of average total assets was 1.60 per cent (1.43 per cent) in the quarter and 1.56 per cent (1.41 per cent) year to date. Increased NIBOR rates and increased margins on lending contributed to net increased margins compared to last year.
Net commission revenues represented NOK 22 million (NOK 23 million) in the quarter and NOK 42 million (NOK 42 million) year to date. Other revenues amounted to NOK 6 million (NOK 4 million) in the second quarter and NOK 4 million (loss of NOK 3 million) year to date.
Operating expenses increased in the quarter and amounted to NOK 122 million (NOK 105 million). Year to date operating expenses amounted to NOK 250 million (NOK 209 million). The increase is driven by significant growth in the customer portfolios, investments to streamline core processes and improvements in processes related to Anti-money laundering (AML).
Loan losses amounted to NOK 16 million (gain of NOK 8 million) in the quarter and NOK 29 million (NOK 8 million) year to date. The booked loan losses consisted mainly of increased loan loss provisions driven by an increased volume of nonperforming loans.
Balance sheet development
The bank group's lending to customers totaled NOK 65.1 billion (NOK 59.7 billion) at the end of the second quarter. The portfolio of loans managed on behalf of Storebrand Livsforsikring AS amounted to NOK 17.1 billion (NOK 17.0 billion). The combined portfolio of loans in Storebrand Bank Group and Storebrand Livsforsikring amounted to NOK 82.2 billion (NOK 76.7 billion) at the end of the second quarter. The bank group's lending portfolio mainly consists of low risk home mortgages. The weighted average loan-to-value ratio in the bank group is 61 per cent for home mortgages, compared to 65 per cent at the end of 2023.
The total volume of non-performing loans has increased since 2023 and accounts for 0.8 per cent (0.6 per cent) of gross lending at the end of the quarter. Non-performing loans without impairment amounted to NOK 354 million (NOK 267 million) at the end of the second quarter. The volume of non-performing loans has historically been very low, but has increased somewhat in the past year and a half as a consequence of higher interest rate levels and living costs. The bank is monitoring the development and ensuring proper measures both in the credit process and close customer contact. Lossexposed loans with evidence of impairment amounted to NOK 161 million (NOK 112 million) at the end of the quarter. Total loan loss provisions amounted to NOK 131 million (NOK 105 million), of which NOK 9 million (NOK 13 million) are loan loss provisions on unused credit limits.
Liquidity risk and funding
The bank has established solid liquidity buffers and puts great importance on a balanced funding structure with varying time to maturity and issuances in various markets. The volume of deposits from customers was NOK 28.7 billion (NOK 23.9 billion) at the end of the quarter, which represents a deposit-toloan ratio of 44.1 per cent (40.1 per cent).
No senior bonds or covered bonds have been issued either in Storebrand Bank or in Storebrand Boligkreditt this quarter. The long-term counterparty credit rating is A (stable). The shortterm counterparty rating is A-1 (stable).
The liquidity coverage requirement (LCR) measures the size of the company's liquid assets, in relation to the net liquidity outflow 30 days in the future, given a stress situation in the money and capital markets. The bank group must comply with a LCR of 100 per cent. The bank group's LCR was 161 per cent at the end of the second quarter.
Net Stable Funding Ratio (NSFR) was 126 per cent on 30 June 2024.
Capital adequacy
The bank group has had an increase in the risk-weighted balance sheet of NOK 1.6 billion year to date. The Storebrand Bank Group had own funds of NOK 5.6 billion at the end of the second quarter. The capital adequacy ratio was 21.3 per cent and the Core Equity Tier 1 (CET1) ratio was 16.9 per cent at the end of the quarter, compared with 21.8 per cent and 17.0 per cent, respectively, at the end of 2023. The combined requirements for capital and CET1 were 18.8 per cent and 14.7 per cent respectively at the end of the second quarter.
The bank group has satisfactory financial strength and liquidity based on its operations. The bank group, parent bank and Storebrand Boligkreditt AS, satisfied the combined capital and capital buffer requirements of 30 June 2024.
Credit risk
There are no significant changes to PD, EAD and LGD estimates from 31 December 2023 to 30 June 2024. The LTV's have decreased and the average LTV is 61 per cent. There is an increase of defaulted loans from the year end 2023 to 30 June 2024, from NOK 379 million to NOK 515 million. In Storebrand Bank ASA the average LTV is approximately 67 per cent. Total loan losses and provisions increased by NOK 28 million from the year end of 2023, and 15 million in the second quarter.
Performance of Storebrand Bank ASA
Storebrand Bank ASA achieved a pre-tax profit of NOK 102 million (NOK 99 million) in the quarter and NOK 183 million (NOK 159 million) year to date.
Net interest income for Storebrand Bank ASA amounted to NOK 167 million (NOK 139 million) in the second quarter and NOK 319 million (NOK 264 million) year to date.
Other operating revenues amounted to NOK 5 million (loss of NOK 1 million) in the quarter and NOK 8 million (loss of NOK 6 million) year to date. The gain in the second quarter was primarily due to changes in value of financial instruments.
Loan losses for the second quarter was NOK 16 million (NOK 0 million). Year to date the loan losses was NOK 27 million (NOK 11 million).
Strategy and future prospects
Storebrand Bank is continuing to support the Group's broad financial services offering and growth strategy in the retail market. Through developing attractive products and digital services related to savings, investments, secured and non-secured lending, the bank offers attractive customer value propositions to both attract and retain customers. Improving competitiveness through better efficiency is a priority and the bank will maintain cost control and increase the degree of automation in customer and work processes.
The bank's position as hub for distribution of mutual fund savings for the group will reach a new milestone in the second half of 2024. The bank is on track with the planned merger with Kron AS, which is scheduled to take place in the fourth quarter of this year. The integration of Kron into Storebrand's systems is now nearly complete and growth in both savings and number of customers have been record high so far this year. This allows us to benefit from the group's economies of scale and simultaneously building on Kron's strong customer satisfaction.
During the first half of 2024, the Central Bank has signalled the continuation of higher interest rate levels for the remainder of the year, though the top has been reached. Increased living costs and global instability continues to create uncertainty in the economy as a whole and on our customers' personal finances, however low unemployment balances the picture. The retail property market has had a mixed development during the year's first six month, with low supply in the new housing market, but with a fair development in the second hand market in most segments.The Bank is closely monitoring the credit risk quality going forward in light of the macro environment and focusing on addressing customer needs in trying times.
The Board of Directors are not aware of any events of material importance to the preparation of the interim financial statements that have occurred since the balance sheet date.
Lysaker, 11 July 2024 The Board of Directors of Storebrand Bank ASA
Income statement
| NOK million Notes 2024 2023 2024 2023 2023 Interest income and similar income Interest income calculated by using the effective interest method 1,033.2 660.4 2,010.5 1,248.8 2,958.5 Other interest income 42.3 30.2 81.3 55.7 135.1 Total interest income and similar income 1,075.4 690.6 2,091.7 1,304.5 3,093.6 Interest expenses and similar expenses Interest expenses calculated by using the effective interest method -769.2 -459.4 -1,506.6 -859.6 -2,141.8 Other interest expenses -11.6 -8.5 -20.7 -19.5 -34.7 Total interest expenses and similar expenses -780.8 -467.9 -1,527.3 -879.1 -2,176.5 Net interest income 294.6 222.7 564.5 425.4 917.1 Fee and commission income from banking services 30.7 30.7 60.8 59.2 128.1 Fee and commission expense for banking services -8.6 -8.0 -18.4 -17.0 -32.3 Net change in fair value and gain/loss on foreign exchange and financial instruments 5.7 3.5 4.5 -3.0 -1.9 Total other operating income 27.8 26.2 46.9 39.1 93.9 Staff expenses -48.4 -48.5 -104.2 -96.1 -198.4 Other operating expenses -69.4 -52.1 -137.5 -103.9 -243.0 Depreciation of non-financial assets -4.3 -4.4 -8.4 -8.8 -16.6 Total operating expenses excl. credit loss on loans, etc. -122.1 -105.0 -250.1 -208.8 -457.9 Profit before credit loss on loans, etc. 200.3 143.9 361.2 255.7 553.1 Credit loss on loans, guarantees and interest-bearing securities -15.8 8.4 -28.7 -7.8 -53.6 Profit before tax for continued operations 184.5 152.3 332.5 247.9 499.5 Tax on profit from continued operations -45.5 -38.7 -82.4 -63.3 -119.5 Profit incl. tax from continued operations 139.0 113.6 250.0 184.6 380.0 Profit incl. tax from discontinued operations Profit before other comprehensive income 139.0 113.6 250.0 184.6 380.0 Other comprehensive income Other income and expenses not to be reclassified to profit/loss Changes in estimates related to defined benefit pension plans 0.1 Total other income and expenses not to be reclassified to 0.1 profit/loss Other income and expenses that may be reclassified to profit/loss Change in unrealised gain/loss on loans valued at fair value through 1.6 1.4 0.2 other comprehensive income (OCI) Total other income and expenses that may be reclassified to 1.6 1.4 0.2 profit/loss Total other comprehensive income 1.6 1.4 0.2 Total comprehensive income 140.6 113.6 251.4 184.6 380.2 Total comprehensive income attributable to: |
Q2 | 01.01 - 30.06 | Full year | |
|---|---|---|---|---|
| Portion attributable to shareholders 133.4 107.3 236.1 172.1 352.9 Portion attributable to additional Tier 1 capital holders 7.3 6.3 15.3 12.5 27.3 |
||||
| Total 140.6 113.6 251.4 184.6 380.2 |
Storebrand Bank Group
Statement of financial position
| NOK million | Notes | 30.06.2024 | 31.12.2023 |
|---|---|---|---|
| Cash and deposits with central banks | 24.3 | 6.2 | |
| Loans to and deposits with credit institutions | 3 | 367.5 | 1,137.9 |
| Loans to customers | 3, 6 | 64,965.0 | 59,609.1 |
| Interest-bearing securities | 3, 7 | 8,339.6 | 9,362.0 |
| Derivatives | 3 | 91.2 | 89.9 |
| Equity instruments | 3 | 47.5 | 44.4 |
| Intangible assets | 30.5 | 27.6 | |
| Other current assets | 269.8 | 50.0 | |
| Total assets | 74,135.6 | 70,327.0 | |
| Loans and deposits from credit institutions | 3 | 500.3 | 283.2 |
| Deposits from and due to customers | 3 | 28,732.2 | 23,948.2 |
| Debt securities issued | 3, 4 | 38,408.1 | 40,154.1 |
| Derivatives | 3 | 80.7 | 62.3 |
| Other current liabilities | 308.2 | 187.3 | |
| Pensions | 1.4 | 1.4 | |
| Tax payable | 33.0 | 97.6 | |
| Deferred tax | 70.0 | 24.4 | |
| Provisions for guarantees and unused credit facilities | 8.8 | 12.5 | |
| Other provisions | 2.8 | 0.3 | |
| Subordinated loans | 3, 4 | 828.7 | 828.6 |
| Total liabilities | 68,974.1 | 65,599.8 | |
| Share capital | 988.3 | 968.1 | |
| Share premium | 1,528.2 | 1,298.5 | |
| Additional Tier 1 capital | 352.9 | 408.2 | |
| Other paid in equity | 1,512.1 | 1,215.1 | |
| Total paid in equity | 4,381.6 | 3,889.9 | |
| Other equity | 779.9 | 837.3 | |
| Total retained earnings | 779.9 | 837.3 | |
| Total equity | 5 | 5,161.4 | 4,727.2 |
| Total liabilities and equity | 74,135.6 | 70,327.0 |
Lysaker, 11 July 2024
The Board of Directors of Storebrand Bank ASA
Statement of changes in equity
| NOK million | Share capital |
Share premium |
Hybrid capital |
Other paid in capital |
Total paid in equity |
Other equity |
Total retained earnings |
Total equity |
|---|---|---|---|---|---|---|---|---|
| Equity at 31.12.2022 | 963.6 | 628.0 | 326.9 | 808.1 | 2,726.6 | 634.3 | 634.3 | 3,360.9 |
| Profit for the period | 27.3 | 27.3 | 352.7 | 352.7 | 380.0 | |||
| Total other income and expenses not to be classified to profit/loss |
0.1 | 0.1 | 0.1 | |||||
| Total other income and expenses that may be classified to profit/loss |
0.2 | 0.2 | 0.2 | |||||
| Total other comprehensive income | 0.2 | 0.2 | 0.2 | |||||
| Total comprehensive income for the period | 27.3 | 27.3 | 352.9 | 352.9 | 380.2 | |||
| Equity transactions with owners: | ||||||||
| Capital injection | 4.5 | 670.5 | 675.0 | 675.0 | ||||
| Additional Tier 1 capital classified as equity | 79.8 | 79.8 | 6.8 | 6.8 | 86.6 | |||
| Payment to additional Tier 1 holders | -25.8 | -25.8 | -25.8 | |||||
| Group contribution received | 407.0 | 407.0 | 407.0 | |||||
| Group contribution paid | -156.7 | -156.7 | -156.7 | |||||
| Equity at 31.12.2023 | 968.1 | 1,298.5 | 408.2 | 1,215.1 | 3,889.9 | 837.3 | 837.3 | 4,727.2 |
| Profit for the period | 15.3 | 15.3 | 234.8 | 234.8 | 250.0 | |||
| Total other income and expenses not to be classified to profit/loss |
||||||||
| Total other income and expenses that may be classified to profit/loss |
1.4 | 1.4 | 1.4 | |||||
| Total other comprehensive income | 1.4 | 1.4 | 1.4 | |||||
| Total comprehensive income for the period | 15.3 | 15.3 | 236.1 | 236.1 | 251.4 | |||
| Equity transactions with owners: | ||||||||
| Capital injection | 20.3 | 229.7 | 250.0 | 250.0 | ||||
| Additional Tier 1 capital classified as equity | -54.8 | -54.8 | 3.8 | 3.8 | -51.0 | |||
| Payment to additional Tier 1 holders | -15.8 | -15.8 | -15.8 | |||||
| Group contribution received | 297.0 | 297.0 | 297.0 | |||||
| Group contribution paid | -297.4 | -297.4 | -297.4 | |||||
| Equity at 30.06.2024 | 988.3 | 1,528.2 | 352.9 | 1,512.1 | 4,381.6 | 779.9 | 779.9 | 5,161.4 |
Income statement
| Q2 | 01.01 - 30.06 | Full year | |||
|---|---|---|---|---|---|
| NOK million Notes |
2024 | 2023 | 2024 | 2023 | 2023 |
| Interest income and similar income | |||||
| Interest income calculated by using the effective interest method | 434.0 | 246.5 | 831.4 | 465.0 | 1,140.2 |
| Other interest income | 30.8 | 44.9 | 59.4 | 82.2 | 172.7 |
| Total interest income and similar income | 464.8 | 291.4 | 890.8 | 547.2 | 1,312.9 |
| Interest expenses and similar expenses | |||||
| Interest expenses calculated by using the effective interest method | -293.5 | -147.5 | -562.7 | -270.6 | -703.4 |
| Other interest expenses | -4.5 | -5.3 | -9.0 | -12.6 | -18.6 |
| Total interest expenses and similar expenses | -298.1 | -152.8 | -571.7 | -283.2 | -722.0 |
| Net interest income | 166.8 | 138.6 | 319.1 | 264.0 | 590.9 |
| Fee and commission income from banking services | 75.6 | 70.8 | 149.9 | 136.6 | 284.9 |
| Fee and commission expense for banking services | -8.4 | -8.0 | -17.5 | -16.7 | -32.0 |
| Income from ownership interests in group companies | 59.9 | ||||
| Net change in fair value and gain/loss on foreign exchange and | |||||
| financial instruments | 5.0 | 1.2 | 8.1 | -5.8 | 0.3 |
| Total other operating income | 72.2 | 64.0 | 140.5 | 114.0 | 313.1 |
| Staff expenses | -48.1 | -48.3 | -103.9 | -96.0 | -198.1 |
| Other operating expenses | -69.0 | -51.4 | -136.7 | -103.0 | -241.5 |
| Depreciation of non-financial assets | -4.3 | -4.4 | -8.4 | -8.8 | -16.6 |
| Total operating expenses excl. credit loss on loans, etc. | -121.4 | -104.2 | -249.1 | -207.8 | -456.2 |
| Profit before credit loss on loans, etc. | 117.5 | 98.4 | 210.5 | 170.3 | 447.8 |
| Credit loss on loans, guarantees and interest-bearing securities | -15.7 | 0.2 | -27.1 | -11.0 | -44.3 |
| Profit before tax for continued operations | 101.8 | 98.6 | 183.3 | 159.2 | 403.5 |
| Tax on profit from continued operations | -27.3 | -26.8 | -49.7 | -43.5 | -98.4 |
| Profit before other comprehensive income | 74.6 | 71.8 | 133.7 | 115.8 | 305.1 |
| Other comprehensive income | |||||
| Other income and expenses not to be reclassified to profit/loss | |||||
| Changes in estimates related to defined benefit pension plans | 0.1 | ||||
| Total other income and expenses not to be reclassified to | |||||
| profit/loss | 0.1 | ||||
| Other income and expenses that may be reclassified to profit/loss Change in unrealised gain/loss on loans valued at fair value through |
|||||
| other comprehensive income (OCI) | 1.6 | 1.8 | |||
| Total other income and expenses that may be reclassified to | |||||
| profit/loss | 1.6 | 1.8 | |||
| Total other comprehensive income | 1.6 | 1.8 | 0.1 | ||
| Total comprehensive income | 76.1 | 71.8 | 135.4 | 115.8 | 305.2 |
| Total comprehensive income attributable to: | |||||
| Portion attributable to shareholders | 68.9 | 65.5 | 120.2 | 103.3 | 277.9 |
| Portion attributable to additional Tier 1 capital holders | 7.3 | 6.3 | 15.3 | 12.5 | 27.3 |
| Total | 76.1 | 71.8 | 135.4 | 115.8 | 305.2 |
Statement of financial position
| NOK million | Notes | 30.06.2024 | 31.12.2023 |
|---|---|---|---|
| Cash and deposits with central banks | 24.3 | 6.2 | |
| Loans to and deposits with credit institutions | 3 | 6,468.6 | 6,703.7 |
| Loans to customers | 3, 6 | 21,025.0 | 14,539.7 |
| Interest-bearing securities | 3, 7 | 7,406.7 | 8,703.0 |
| Derivatives | 3 | 28.9 | 36.8 |
| Equity instruments | 3 | 47.5 | 44.4 |
| Ownership interests in group companies | 3,391.5 | 3,391.5 | |
| Intangible assets | 30.5 | 27.6 | |
| Deferred tax assets | 23.2 | ||
| Other current assets | 258.7 | 397.4 | |
| Total assets | 38,681.8 | 33,873.5 | |
| Loans and deposits from credit institutions | 3 | 561.5 | 338.4 |
| Deposits from and due to customers | 3 | 28,732.2 | 23,948.2 |
| Debt securities issued | 3, 4 | 3,368.7 | 3,632.3 |
| Derivatives | 3 | 17.2 | 19.6 |
| Other current liabilities | 337.1 | 608.6 | |
| Pensions | 1.4 | 1.4 | |
| Deferred tax | 22.6 | ||
| Provisions for guarantees and unused credit facilities | 7.3 | 12.4 | |
| Other provisions | 2.8 | 0.3 | |
| Subordinated loans | 3, 4 | 828.7 | 828.6 |
| Total liabilities | 33,879.4 | 29,389.8 | |
| Share capital | 988.3 | 968.1 | |
| Share premium | 1,528.2 | 1,298.5 | |
| Additional Tier 1 capital | 352.9 | 408.2 | |
| Other paid in equity | 1,683.6 | 1,683.6 | |
| Total paid in equity | 4,553.1 | 4,358.4 | |
| Other equity | 249.2 | 125.2 | |
| Total retained earnings | 249.2 | 125.2 | |
| Total equity | 5 | 4,802.3 | 4,483.6 |
| Total liabilities and equity | 38,681.8 | 33,873.5 |
Lysaker, 11 July 2024
The Board of Directors of Storebrand Bank ASA
Statement of changes in equity
| Share | Share | Hybrid | Other paid in |
Total paid in |
Other | Total retained |
Total | |
|---|---|---|---|---|---|---|---|---|
| NOK million | capital | premium | capital | capital | equity | equity | earnings | equity |
| Equity at 31.12.2022 | 963.6 | 628.0 | 326.9 | 1,386.6 | 3,305.1 | 137.4 | 137.4 | 3,442.5 |
| Profit for the period | 27.3 | 27.3 | 277.8 | 277.8 | 305.1 | |||
| Total other income and expenses not to be classified to profit/loss |
0.1 | 0.1 | 0.1 | |||||
| Total other income and expenses that may be classified to profit/loss |
||||||||
| Total other comprehensive income | 0.1 | 0.1 | 0.1 | |||||
| Total comprehensive income for the period | 27.3 | 27.3 | 277.9 | 277.9 | 305.2 | |||
| Equity transactions with owners: | ||||||||
| Capital injection | 4.5 | 670.5 | 675.0 | 675.0 | ||||
| Additional Tier 1 capital classified as equity | 79.8 | 79.8 | 6.8 | 6.8 | 86.6 | |||
| Payment to additional Tier 1 holders | -25.8 | -25.8 | -25.8 | |||||
| Group contribution received | 297.0 | 297.0 | 297.0 | |||||
| Provision for group contribution | -296.9 | -296.9 | -296.9 | |||||
| Equity at 31.12.2023 | 968.1 | 1,298.5 | 408.2 | 1,683.6 | 4,358.4 | 125.2 | 125.2 | 4,483.6 |
| Profit for the period | 15.3 | 15.3 | 118.4 | 118.4 | 133.7 | |||
| Total other income and expenses not to be classified to profit/loss |
||||||||
| Total other income and expenses that may be classified to profit/loss |
1.8 | 1.8 | 1.8 | |||||
| Total other comprehensive income | 1.8 | 1.8 | 1.8 | |||||
| Total comprehensive income for the period | 15.3 | 15.3 | 120.2 | 120.2 | 135.4 | |||
| Equity transactions with owners: | ||||||||
| Capial injection | 20.3 | 229.7 | 250.0 | 250.0 | ||||
| Additional Tier 1 capital classified as equity | -54.8 | -54.8 | 3.8 | 3.8 | -51.0 | |||
| Payment to additional Tier 1 holders | -15.8 | -15.8 | -15.8 | |||||
| Equity at 30.06.2024 | 988.3 | 1,528.2 | 352.9 | 1,683.6 | 4,553.1 | 249.2 | 249.2 | 4,802.3 |
The share capital is made up of 65 888 533 shares of nominal value NOK 15.
Statement of cash flow
| Storebrand Bank ASA | Storebrand Bank Group |
|||
|---|---|---|---|---|
| 01.01 - 30.06 | 01.01 - 30.06 | |||
| 2023 | 2024 | NOK million | 2024 | 2023 |
| Cash flow from operating activities | ||||
| 513.0 | 823.1 Receipts of interest, commissions and fees from customers | 1,914.5 | 1,283.9 | |
| -55.1 | -118.8 Payments of interest, commissions and fees to customers | -118.8 | -55.1 | |
| -5,235.7 | -6,457.9 Net disbursements/payments on customer loans | -5,388.0 | -6,066.7 | |
| 2,777.4 | 4,442.6 Net receipts/payments of deposits from banking customers | 4,442.6 | 2,777.4 | |
| -3,204.2 | 1,510.8 Net receipts/payments - securities | 1,245.9 | -1,006.8 | |
| -124.2 | -345.2 Payments of operating costs | -341.0 | -144.8 | |
| -5,328.7 | -145.5 Net cash flow from operating activities | 1,755.2 | -3,212.1 | |
| Cash flow from investing activities | ||||
| -8.2 | -11.4 Net payments on purchase/sale of fixed assets etc. | -11.4 | -8.2 | |
| -8.2 | -11.4 Net cash flow from investing activities | -11.4 | -8.2 | |
| Cash flow from financing activities | ||||
| -576.0 | -955.0 Payments - repayments of loans and issuing of bond debt | -5,872.7 | -4,576.0 | |
| 700.0 Receipts - new loans and issuing of bond debt | 4,239.8 | 8,183.8 | ||
| -91.6 | -97.8 Payments - interest on loans | -1,136.8 | -583.3 | |
| -19.4 | -25.1 Payments - interest on subordinated loans | -25.1 | -19.4 | |
| 125.0 | Receipts - new additional Tier 1 capital | 125.0 | ||
| -100.0 | -54.8 Payments of additional Tier 1 capital | -54.8 | -100.0 | |
| -11.6 | -15.8 Payments - interest on additional Tier 1 capital | -15.8 | -11.6 | |
| 8,203.3 | 2,003.1 Receipts - new loans from credit institutions | 1,997.2 | 8,136.8 | |
| -7,456.9 | -1,780.0 Payments - repayment of loans to credit institutions | -1,780.0 | -7,456.9 | |
| 400.0 | 250.0 Receipts - issuing of share capital and other equity | 250.0 | 400.0 | |
| 435.4 | 356.9 Receipts - group contribution | 297.0 | 407.0 | |
| -480.1 | -441.7 Payments - group contribution / dividends | -395.0 | -208.0 | |
| 428.0 | -60.2 Net cash flow from financing activities | -2,496.2 | 4,297.4 | |
| -4,908.9 | -217.1 Net cash flow in the period | -752.4 | 1,077.1 | |
| 6,999.7 | 6,709.9 Cash and bank deposits at the start of the period | 1,144.2 | 116.1 | |
| 2,090.8 | 6,492.9 Cash and bank deposits at the end of the period | 391.8 | 1,193.1 | |
| Cash and bank deposits consists of: | ||||
| 9.6 | 24.3 Cash and deposits with central banks | 24.3 | 9.6 | |
| 2,081.2 | 6,468.6 Loans to and deposits with credit institutions | 367.5 | 1,183.5 | |
| 2,090.8 | 6,492.9 Total cash and bank deposits in the balance sheet | 391.8 | 1,193.1 |
Notes to the interim accounts
Note Basis for preparation
1
The Group's financial statements include Storebrand Bank ASA together with subsidiaries. The financial statements are prepared in accordance with IAS 34 Interim Financial Reporting. The interim financial statements do not contain all the information that is required in full annual financial statements.
The interim accounts of Storebrand Bank ASA are prepared in accordance with the annual accounts regulations of banks, mortgage companies and finance companies and with IAS 34 Interim Financial Reporting.
A description of the accounting policies applied in the preparation of the financial statements is provided in the 2023 Annual report, and the interim financial statements are prepared with respect to these accounting policies.
In preparing the Group's and the company's financial statements the management are requiring to make judgements, estimates and assumptions of uncertain amounts. The estimates and underlying assumptions are reviewed on an ongoing basis and are based on historical experience and expectations of future events and represent the management's best judgement at the time the financial statements were prepared. Critical accounting estimates and judgements are described in the 2023 Annual financial statements in note 2 and valuation of financial instruments at fair value are described in note 9 for the Group, and in note 2 and note 9 for Storebrand Bank ASA.
There are none new or changed accounting standards that entered into effect in 2024 that have significant effect on Storebrand Bank Group's and Storebrand Bank ASA's financial statements.
There have not been any substantial changes in the financial risk since 31.12.2023. Please se note 3 to note 9 in the 2023 Annual report for more details.
Note 2 Related parties
Covered bonds issued by Storebrand Boligkreditt
| NOK million | Q2 | 30.06.2024 |
|---|---|---|
| Storebrand Bank ASAs investments in covered bonds issued by Storebrand | ||
| Boligkreditt AS | 1,264.3 | 1,264.3 |
The investments are included in the liquidity portfolio in the bank and are classified at fair value through profit or loss. All investments have been eliminated in the consolidated accounts against bonds issued by Storebrand Boligkreditt AS.
Loans sold to Storebrand Boligkreditt AS
| - | ||
|---|---|---|
| NOK million | Q2 | 30.06.2024 |
| Sold home mortgages to Storebrand Boligkreditt AS | 3,012.0 | 7,878.5 |
| Bought home mortgages from Storebrand Boligkreditt AS | 43.6 | 565.6 |
Loans sold to Storebrand Livsforsikring AS
| - | ||
|---|---|---|
| NOK million | Q2 | 30.06.2024 |
| Sold home mortgages to Storebrand Livsforsikring AS | 1,754.3 | 3,187.8 |
| Bought home mortgages from Storebrand Livsforsikring AS | 6.3 | 8.3 |
| The home mortgage portfolio managed on behalf of Storebrand Livsforsikring AS | 233.8 | 17,107.1 |
| Recognised fees on managemgent of the home mortgage portfolio on behalf of | ||
| Storebrand Livsforsikring AS | 16.8 | 33.7 |
Credit facilities with Storebrand Boligkreditt AS
The bank has issued two credit facilities to Storebrand Boligkreditt AS. One of these facilities is a normal overdraft facility, with a commitment of NOK 8 billion. This has no expiry date, but can be terminated by the bank on 15 months' notice. The amount of the other facility is the payment obligations of Storebrand Boligkreditt the following 31 days on interest and principal amounts regarding Covered Bonds, including any connected derivatives. This facility may not be terminated by Storebrand Bank ASA until at least 3 months after the maturity date of the covered bond and the associated derivatives with the longest period to maturity.
For more details about related parties, please see note 41 in the 2023 Annual report for Storebrand Bank ASA.
Note 3 Valuation of financial instruments
The Storebrand Group classify financial instruments valued at fair value in three different levels. The criteria for the classification and processes associated with valuing are described in more detail in note 9 in the Annual report 2023 for Storebrand Bank Group and Storebrand Bank ASA.
The company has established valuation models and gathers information from a wide range of well-informed sources with a view to minimize any uncertainty in the valuations.
Storebrand Bank Group
Valuation of financial instruments at fair value through profit and loss
| Level 1 Quoted |
Level 2 Observ able assump |
Level 3 Non observ able assump |
|||
|---|---|---|---|---|---|
| NOK million | prices | tions | tions 30.06.2024 31.12.2023 | ||
| Equities and funds | |||||
| Equities | 38.0 | 9.5 | 47.5 | 44.4 | |
| Total equities 30.06.2024 | 38.0 | 9.5 | 47.5 | ||
| Total equities 31.12.2023 | 36.3 | 8.1 | 44.4 | ||
| Loans to customers | |||||
| Loans to customers - Retail Market | 343.9 | 343.9 | 351.3 | ||
| Total loans to customers 30.06.2024 | 343.9 | 343.9 | |||
| Total loans to customers 31.12.2023 | 351.3 | 351.3 | |||
| Interest-bearing securities | |||||
| Government and government guaranteed bonds | 366.6 | 366.6 | 670.1 | ||
| Collateralised securitites | 1,297.2 | 1,297.2 | 2,681.5 | ||
| Total interest-bearing securities 30.06.2024 | 1,663.8 | 1,663.8 | |||
| Total interest-bearing securities 31.12.2023 | 3,351.6 | 3,351.6 | |||
| Derivatives | |||||
| Interest derivatives | 10.6 | 10.6 | 27.5 | ||
| Total derivatives 30.06.2024 | 10.6 | 10.6 | |||
| Derivatives with a positive fair value | 91.2 | 91.2 | 89.9 | ||
| Derivatives with a negative fair value | -80.7 | -80.7 | -62.3 | ||
| Total derivatives 31.12.2023 | 27.5 | 27.5 |
There have not been any changes between quoted prices and observable assumptions on the various financial instruments in the quarter.
Valuation of financial instruments at fair value through other comprehensive income
| NOK million | Level 1 Quoted prices |
Level 2 Observ able assump tions |
Level 3 Non observ able assump |
tions 30.06.2024 31.12.2023 | |
|---|---|---|---|---|---|
| Loans to customers - retail market | 64,277.5 | 64,277.5 | 58,882.2 | ||
| Total loans to customers 30.06.2024 | 64,277.5 | 64,277.5 | |||
| Total loans to customers 31.12.2023 | 58,882.2 | 58,882.2 |
Financial instruments at fair value - Level 3
| 30.06.2024 | ||||||
|---|---|---|---|---|---|---|
| NOK million | Equities | Loans to customers at fair value through profit and loss |
Loans to customers at fair value through other comprehen sive income |
|||
| Book value 01.01.2024 | 8.1 | 351.3 | 58,882.2 | |||
| Net gains/losses on financial instruments | 1.4 | 2.1 | -8.0 | |||
| Additions | 42.8 | 16,942.4 | ||||
| Sales | -52.4 | -11,539.0 | ||||
| Book value 30.06.2024 | 9.5 | 343.9 | 64,277.5 |
| 31.12.2023 | |||||
|---|---|---|---|---|---|
| NOK million | Equities | Loans to customers at fair value through profit and loss |
Loans to customers at fair value through other comprehen sive income |
||
| Book value 01.01.2023 | 6.1 | 318.8 | 49,156.0 | ||
| Net gains/losses on financial instruments | 2.0 | 3.1 | -10.7 | ||
| Additions | 98.2 | 29,154.8 | |||
| Sales | -68.9 | -19,417.9 | |||
| Book value 31.12.2023 | 8.1 | 351.3 | 58,882.2 |
Valuation of financial instruments at amortised cost
| NOK million | Fair value 30.06.2024 |
Book value 30.06.2024 |
Fair value 31.12.2023 |
Book value 31.12.2023 |
|---|---|---|---|---|
| Financial assets | ||||
| Loans to and deposits with credit institutions | 367.5 | 367.5 | 1,137.9 | 1,137.9 |
| Loans to customers - Retail market | 343.6 | 343.6 | 375.6 | 375.6 |
| Interest-bearing securities | 6,687.4 | 6,675.8 | 6,002.8 | 6,010.4 |
| Total financial assets 30.06.2024 | 7,398.5 | 7,386.9 | ||
| Total financial assets 31.12.2023 | 7,516.3 | 7,523.9 | ||
| Financial liabilities | ||||
| Loans and deposits from credit institutions | 500.3 | 500.3 | 283.2 | 283.2 |
| Deposits from and due to customers | 28,732.2 | 28,732.2 | 23,948.2 | 23,948.2 |
| Debt securities issued | 38,552.5 | 38,408.1 | 40,164.1 | 40,154.1 |
| Subordinated loans | 824.0 | 828.7 | 817.1 | 828.6 |
| Total financial liabilities 30.06.2024 | 68,609.0 | 68,469.3 | ||
| Total financial liabilities 31.12.2023 | 65,212.5 | 65,214.0 |
Sensitivity assessments
Loans to customers
The value of home loans with a floating interest rate are valued at nominal value less expected credit loss. Loans without any substantially higher credit risk than at initial recognition are valued at nominal value. Loans where there has been a significant increase in credit risk since initial recognition or loans where there is objective evidence of loss, are valued at nominal value less expected credit loss over the lifetime of the loan.
Equities
This item consists of shares in VN Norge AS. At the end of the quarter, the value of the shares is calculated on the basis of the price of the shares in VISA Inc. and the exchange rate USD / NOK. The value has also been adjusted for a liquidity and general uncertainty discount of 14%.
| Floating loans to customers Fair value through other comprehensive income (OCI) Changes in market spread |
Floating loans to customers Fair value through other comprehensive income (OCI) Changes in market spread |
|||||
|---|---|---|---|---|---|---|
| Equities Change in value |
||||||
| NOK million | + 10 bp | - 10 bp | + 25bp | - 25 bp | + 25bp | - 25 bp |
| Increase/reduction in fair value at 30.06.2024 | -7.4 | 7.4 | -18.5 | 18.5 | 9.5 | -9.5 |
| Increase/reduction in fair value at 31.12.2023 | -6.8 | 6.8 | -16.9 | 16.9 | 9.1 | -9.1 |
Storebrand Bank ASA
Valuation of financial instruments at fair value through profit and loss
| Level 1 | Level 2 | Level 3 | |||
|---|---|---|---|---|---|
| Observ | Non observ |
||||
| Quoted | able assump |
able assump |
|||
| NOK million | prices | ions | tions 30.06.2024 31.12.2023 | ||
| Equities and funds | |||||
| Equities | 38.0 | 9.5 | 47.5 | 44.5 | |
| Total equities 30.06.2024 | 38.0 | 9.5 | 47.5 | ||
| Total equities 31.12.2023 | 36.3 | 8.1 | 44.4 | ||
| Loans to customers | |||||
| Loans to customers - Retail Market | 343.9 | 343.9 | 351.3 | ||
| Total loans to customers 30.06.2024 | 343.9 | 343.9 | |||
| Total loans to customers 31.12.2023 | 351.3 | 351.3 | |||
| Interest-bearing securities | |||||
| Government and government guaranteed bonds | 261.8 | 261.8 | 670.1 | ||
| Collateralised securities | 1,651.8 | 1,651.8 | 2,126.5 | ||
| Total interest-bearing securities 30.06.2024 | 1,913.6 | 1,913.6 | |||
| Total interest-bearing securities 31.12.2023 | 2,796.5 | 2,796.5 | |||
| Derivatives | |||||
| Interest derivatives | 11.6 | 11.6 | 17.2 | ||
| Total derivatives 30.06.2024 | 11.6 | 11.6 | |||
| Derivatives with a positive fair value | 28.9 | 28.9 | 36.8 | ||
| Derivatives with a negative fair value | -17.2 | -17.2 | -19.6 | ||
| Total derivatives 31.12.2023 | 17.2 | 17.2 |
There have not been any changes between quoted prices and observable assumptions on the various financial instruments in the quarter.
Valuation of financial instruments at fair value through other comprehensive income
| Level 1 | Level 2 | Level 3 | |||
|---|---|---|---|---|---|
| NOK million | Quoted prices |
Observ able assump tions |
Non observ able assump |
tions 30.06.2024 31.12.2023 | |
| Loans to customers - retail market | 20,337.6 | 20,337.6 | 13,812.8 | ||
| Total loans to customers 30.06.2024 | 20,337.6 | 20,337.6 | |||
| Total loans to customers 31.12.2023 | 13,812.8 | 13,812.8 |
Financial instruments at fair value - Level 3
| 30.06.2024 | |||
|---|---|---|---|
| NOK million | Equities | Loans to customers at fair value through profit and loss |
Loans to customers at fair value through other comprehens ive income |
| Book value 01.01.2024 | 8.1 | 351.3 | 13,812.8 |
| Net gains/losses on financial instruments | 1.4 | 2.1 | -7.5 |
| Supply / disposal | 42.8 | 12,189.6 | |
| Sales / due settlements | -52.4 | -5,657.3 | |
| Book value 30.06.2024 | 9.5 | 343.9 | 20,337.6 |
| 31.12.2023 | ||||
|---|---|---|---|---|
| NOK million | Equities | Loans to customers at fair value through profit and loss |
Loans to customers at fair value through other comprehens ive income |
|
| Book value 01.01.2023 | 6.1 | 318.8 | 11,685.7 | |
| Net gains/losses on financial instruments | 1.9 | 3.1 | -1.3 | |
| Supply / disposal | 98.2 | 9,634.0 | ||
| Sales / due settlements | -68.9 | -7,505.7 | ||
| Book value 31.12.2023 | 8.0 | 351.3 | 13,812.8 |
Valuation of financial instruments at amortised cost
| NOK million | Fair value 30.06.2024 |
Book value 30.06.2024 |
Fair value 31.12.2023 |
Book value 31.12.2023 |
|---|---|---|---|---|
| Financial assets | ||||
| Loans to and deposits with credit institutions | 6,468.6 | 6,468.6 | 6,703.7 | 6,703.7 |
| Loans to customers - Retail market | 343.6 | 343.6 | 375.6 | 375.6 |
| Interest-bearing securities | 5,504.8 | 5,493.0 | 5,898.8 | 5,906.4 |
| Total financial assets 30.06.2024 | 12,317.0 | 12,305.2 | ||
| Total financial assets 31.12.2023 | 12,978.2 | 12,985.7 | ||
| Financial liabilities | ||||
| Loans and deposits from credit institutions | 561.5 | 561.5 | 338.4 | 338.4 |
| Deposits from and due to customers | 28,732.2 | 28,732.2 | 23,948.2 | 23,948.2 |
| Debt securities issued | 3,386.1 | 3,368.7 | 3,641.4 | 3,632.3 |
| Subordinated loans | 824.0 | 828.7 | 817.1 | 828.6 |
| Total financial liabilities 30.06.2024 | 33,503.9 | 33,491.1 | ||
| Total financial liabilities 31.12.2023 | 28,745.0 | 28,747.5 |
Sensitivity assessments
Loans to customers
The value of home loans with a floating interest rate are valued at nominal value less expected credit loss. Loans without any substantially higher credit risk than at initial recognition are valued at nominal value. Loans where there has been a significant increase in credit risk since initial recognition or loans where there is objective evidence of loss, are valued at nominal value less expected credit loss over the lifetime of the loan.
Equities
This item consists of shares in VN Norge AS. At the end of the quarter, the value of the shares is calculated on the basis of the price of the shares in VISA Inc. and the exchange rate USD / NOK. The value has also been adjusted for a liquidity and general uncertainty discount of 14%.
| Floating loans to customers Fair value through other comprehensive income (OCI) Changes in market spread |
Floating loans to customers Fair value through other comprehensive income (OCI) Changes in market spread |
|||||
|---|---|---|---|---|---|---|
| Equities Change in value |
||||||
| NOK million | + 10 bp | - 10 bp | + 25bp | - 25 bp | + 25bp | - 25 bp |
| Increase/reduction in fair value at 30.06.2024 | -2.3 | 2.3 | -5.8 | 5.8 | 9.5 | -9.5 |
| Increase/reduction in fair value at 31.12.2023 | -1.6 | 1.6 | -4.0 | 4.0 | 9.1 | -9.1 |
Note 4
.
Debt securities issued and subordinated loans
| Storebrand Bank Group | ||||
|---|---|---|---|---|
| NOK million | 30.06.2024 | 31.12.2023 | ||
| Commercial papers | 852.9 | 602.3 | ||
| Senior bonds and covered bonds | 37,555.2 | 39,551.7 | ||
| Subordinated loans | 828.7 | 828.6 | ||
| Total debt securities issued and subordinated loans | 39,236.8 | 40,982.7 |
Changes in debt securities issued and and subordinated loans
| NOK million | Balance sheet 31.12.2023 |
Issued | Matured / redeemed |
Exchange movements |
Adjustments | Balance sheet 31.03.2024 |
|---|---|---|---|---|---|---|
| Commercial papers | 602.3 | 250.0 | 0.6 | 852.9 | ||
| Senior bonds | 3,029.9 | 449.9 | -967.4 | 3.5 | 2,515.8 | |
| Covered bonds | 36,521.8 | 4,070.5 | -5,561.3 | 10.4 | -2.0 | 35,039.4 |
| Total debt securities issued | 40,154.1 | 4,770.3 | -6,528.7 | 10.4 | 2.1 | 38,408.1 |
| Dated subordniated loans | 828.6 | 0.1 | 828.7 | |||
| Total subordinated loans | 828.6 | 0.1 | 828.7 |
Note Capital adequacy
5
Capital adequacy calculations are subject to special consolidation rules in accordance with the regulation on consolidated application of the capital adequacy rules etc. (the "Consolidation Regulation"). The Storebrand Bank Group is defined pursuant to Section 5 of the Consolidation Regulation as a financial group comprising solely or mainly undertakings other than insurance companies. According to the capital requirement regulations, the valuation rules used in the company's accounts form the basis for consolidation. Consolidation is mainly carried out in accordance with the same principles as those used in the accounts, with all internal transactions eliminated, including shares, loans and deposits as well as other receivables and liabilities.
The standard method is used for credit risk and market risk and the basis method is used for operational risk. Total requirement to Core Equity Tier 1 (CET1) and eligible capital (Tier 1 capital + Tier 2 capital) are 14.7 per cent and 18.8 per cent repectively. The Pillar 2 requirement for Storebrand Bank is 1.3 per cent. As of 31 December 2023, 0.73 per cent of the Pillar 2 requirement must be covered with Core Equity Tier 1 (CET1) capital.
| Eligible capital | ||||
|---|---|---|---|---|
| Storebrand Bank ASA | Storebrand Bank Group | |||
| 31.12.2023 30.06.2024 NOK million | 30.06.2024 31.12.2023 | |||
| 968.1 | 988.3 Share capital | 988.3 | 968.1 | |
| 3,515.6 | 3,814.0 Other equity | 4,173.1 | 3,759.1 | |
| 4,483.6 | 4,802.3 Total equity | 5,161.4 | 4,727.2 | |
| -404.8 | -350.0 Additional Tier 1 capital included in total equity | -350.0 | -404.8 | |
| -3.4 | -2.9 Accrued interest on capital instruments included in total equity | -2.9 | -3.4 | |
| 4,075.4 | 4,449.5 Total equity included in Core Equity Tier 1 (CET1) | 4,808.5 | 4,319.0 | |
| Deductions | ||||
| -133.7 Profit not included in the calculation of eligible capital | -250.0 | |||
| -17.7 | -22.8 AVA adjustments | -66.6 | -63.5 | |
| -27.6 | -30.5 Intangible assets | -30.5 | -27.6 | |
| -2.5 Minimum Loss Coverage for Non Perfoming Loans | -4.9 | |||
| Provision for group contribution | -297.4 | |||
| Addition | ||||
| Group contribution received | 297.0 | |||
| 4,030.1 | 4,260.1 Core Equity Tier 1 (CET1) | 4,456.4 | 4,227.5 | |
| Other Tier 1 capital | 4,456.4 | 4,227.5 | ||
| 404.8 | 350.0 Capital instruments eligible as Additional Tier 1 capital | 350.0 | 404.8 | |
| -54.8 | Capital instruments not eligible as Additional Tier 1 capital | -54.8 | ||
| 4,380.1 | 4,610.1 Tier 1 capital | 4,806.4 | 4,577.5 | |
| Tier 2 capital | ||||
| 825.0 | 825.0 Subordinated loans | 825.0 | 825.0 | |
| 5,205.1 | 5,435.1 Eligible capital (Tier 1 capital + Tier 2 capital) | 5,631.4 | 5,402.5 |
| Minimum capital requirements | |||||
|---|---|---|---|---|---|
| Storebrand Bank ASA | Storebrand Bank Group | ||||
| 31.12.2023 30.06.2024 NOK million | 30.06.2024 31.12.2023 | ||||
| 1,189.7 | 1,354.4 Credit risk | 1,991.4 | 1,867.3 | ||
| Of which: | |||||
| 9.5 | Local and regional authorities | 4.8 | |||
| 373.1 | 376.9 | Institutions | 8.2 | 10.8 | |
| 400.0 | 593.3 | Loans secured in residential real estate | 1,823.7 | 1,653.9 | |
| 70.7 | 53.1 | Retail market | 67.2 | 108.8 | |
| 13.8 | 19.7 | Loans past-due | 38.2 | 31.5 | |
| 302.8 | 297.1 | Covered bonds | 35.5 | 41.2 | |
| 19.9 | 14.2 | Other | 18.6 | 16.3 | |
| 1,189.7 | 1,354.4 Total minimum requirement for credit risk | 1,991.4 | 1,867.3 | ||
| Total minimum requirement for market risk | |||||
| 101.1 | 101.1 Operational risk | 115.3 | 115.3 | ||
| 1.4 | 1.2 CVA risk 1) | 5.2 | 1.8 | ||
| 1,292.2 | 1,456.7 Minimum requirement for net primary capital | 2,111.9 | 1,984.3 |
| Capital Adequacy | ||||||
|---|---|---|---|---|---|---|
| Storebrand Bank ASA | Storebrand Bank Group | |||||
| 31.12.2023 30.06.2024 | 30.06.2024 31.12.2023 | |||||
| 32.2% | 29.8% Capital ratio | 21.3% | 21.8% | |||
| 27.1% | 25.3% Tier 1 capital ratio | 18.2% | 18.5% | |||
| 25.0% | 23.4% Core equity Tier 1 (CET1) capital ratio | 16.9% | 17.0% |
| Basis of calculation (risk-weighted volume) | ||||||
|---|---|---|---|---|---|---|
| Storebrand Bank ASA 31.12.2023 30.06.2024 NOK million |
Storebrand Bank Group | |||||
| 30.06.2024 31.12.2023 | ||||||
| 14,871.3 | 16,930.0 Credit risk | 24,892.6 | 23,341.2 | |||
| Of which: | ||||||
| 118.3 | Local and regional authorities | 60.2 | ||||
| 4,663.2 | 4,710.7 | Institutions | 102.7 | 135.3 | ||
| 4,999.5 | 7,416.8 | Loans secured in residential real estate | 22,796.0 | 20,674.0 | ||
| 883.8 | 664.0 | Retail market | 839.7 | 1,360.1 | ||
| 172.7 | 246.4 | Loans past-due | 477.6 | 393.6 | ||
| 3,785.4 | 3,714.2 | Covered bonds | 444.0 | 514.8 | ||
| 248.5 | 177.9 | Other | 232.7 | 203.2 | ||
| 14,871.3 | 16,930.0 Total basis of calculation credit risk | 24,892.6 | 23,341.2 | |||
| Total basis of calculation market risk | ||||||
| 1,264.2 | 1,264.2 Operational risk | 1,440.9 | 1,440.9 | |||
| 17.1 | 14.6 CVA risk | 65.3 | 22.2 | |||
| 16,152.6 | 18,208.8 Total basis of calculation of minimum requirements for capital | 26,398.8 | 24,804.3 | |||
| base |
| Leverage ratio | |||||||
|---|---|---|---|---|---|---|---|
| Storebrand Bank ASA | Storebrand Bank Group | ||||||
| 31.12.2023 30.06.2024 NOK million | 30.06.2024 31.12.2023 | ||||||
| 4,380.1 | 4,610.0 Tier 1 capital | 4,806.4 | 4,577.5 | ||||
| 68,367.2 | 72,585.0 Total Leverage ratio exposure measure | 76,310.7 | 72,197.5 | ||||
| 6.4% | 6.4% Leverage ratio | 6.3% | 6.3% |
Leverage ratio requirement is 3.0 percentage points as per 30.06.2024.
Note 6
Loan portfolio and guarantees
| Storebrand Bank ASA | Storebrand Bank Group | |||
|---|---|---|---|---|
| NOK million | 30.06.2024 31.12.2023 30.06.2024 31.12.2023 | |||
| Loans to customers at amortised cost | 411.8 | 422.9 | 411.8 | 422.9 |
| Loans to customers at fair value through profit and loss | 343.9 | 351.3 | 343.9 | 351.3 |
| Loans to customers at fair value through other comprehensive income (OCI) |
20,370.6 | 13,838.3 | 64,331.2 | 58,927.8 |
| Total gross loans to customers | 21,126.2 | 14,612.5 | 65,086.8 | 59,702.0 |
| Provision for expected loss stage 1 | -3.7 | -4.7 | -4.3 | -6.4 |
| Provision for expected loss stage 2 | -33.1 | -14.1 | -38.1 | -20.6 |
| Provision for expected loss stage 3 | -64.4 | -54.1 | -79.5 | -66.0 |
| Net loans to customers | 21,025.0 | 14,539.7 | 64,965.0 | 59,609.1 |
Change in gross loans to customers valued at amortised
cost
| Storebrand Bank Group | ||||
|---|---|---|---|---|
| NOK million | Stage 1 | Stage 2 | Stage 3 | Total gross loans |
| Gross loans 01.01.2024 | 290.6 | 78.0 | 54.3 | 422.9 |
| Transfer to stage 1 | 32.1 | -31.8 | -0.3 | |
| Transfer to stage 2 | -57.8 | 59.0 | -1.1 | |
| Transfer to stage 3 | -8.0 | -11.1 | 19.1 | |
| New loans | 37.2 | 12.9 | 2.2 | 52.4 |
| Derecognition | -34.1 | -6.1 | -6.3 | -46.5 |
| Other changes | -9.9 | -6.8 | -0.3 | -17.0 |
| Gross loans 30.06.2024 | 250.2 | 94.2 | 67.4 | 411.8 |
| Storebrand Bank Group | ||||
|---|---|---|---|---|
| NOK million | Stage 1 | Stage 2 | Stage 3 | Total gross loans |
| Gross loans 01.01.2023 | 346.0 | 106.8 | 31.4 | 484.1 |
| Transfer to stage 1 | 5.7 | -5.0 | -0.7 | |
| Transfer to stage 2 | -26.7 | 27.1 | -0.4 | |
| Transfer to stage 3 | -7.3 | -8.6 | 15.9 | |
| New loans | 92.2 | 13.5 | 21.7 | 127.4 |
| Derecognition | -110.3 | -49.4 | -13.8 | -173.5 |
| Other changes | -9.0 | -6.4 | 0.2 | -15.1 |
| Gross loans 31.12.2023 | 290.6 | 78.0 | 54.3 | 422.9 |
| Storebrand Bank ASA | ||||
|---|---|---|---|---|
| NOK million | Stage 1 | Stage 2 | Stage 3 | Total gross loans |
| Gross loans 01.01.2024 | 290.6 | 78.0 | 54.3 | 422.9 |
| Transfer to stage 1 | 32.1 | -31.8 | -0.3 | |
| Transfer to stage 2 | -57.8 | 59.0 | -1.1 | |
| Transfer to stage 3 | -8.0 | -11.1 | 19.1 | |
| New loans | 37.2 | 12.9 | 2.2 | 52.4 |
| Derecognition | -34.1 | -6.1 | -6.3 | -46.5 |
| Other changes | -9.9 | -6.8 | -0.3 | -17.0 |
| Gross loans 30.06.2024 | 250.2 | 94.2 | 67.4 | 411.8 |
| Storebrand Bank ASA | ||||
|---|---|---|---|---|
| NOK million | Stage 1 | Stage 2 | Stage 3 | Total gross loans |
| Gross loans 01.01.2023 | 346.0 | 106.8 | 31.4 | 484.1 |
| Transfer to stage 1 | 5.7 | -5.0 | -0.7 | |
| Transfer to stage 2 | -26.7 | 27.1 | -0.4 | |
| Transfer to stage 3 | -7.3 | -8.6 | 15.9 | |
| New loans | 92.2 | 13.5 | 21.7 | 127.4 |
| Derecognition | -110.3 | -49.4 | -13.8 | -173.5 |
| Other changes | -9.0 | -6.4 | 0.2 | -15.1 |
| Gross loans 31.12.2023 | 290.6 | 78.0 | 54.3 | 422.9 |
Change in gross loans to customers valued at fair value through other comprehensive income (OCI)
| Storebrand Bank Group | ||||
|---|---|---|---|---|
| NOK million | Stage 1 | Stage 2 | Stage 3 | Total gross loans |
| Gross loans 01.01.2024 | 52,617.7 | 5,988.9 | 321.3 | 58,927.8 |
| Transfer to stage 1 | 1,316.9 | -1,286.9 | -30.0 | |
| Transfer to stage 2 | -3,257.9 | 3,290.2 | -32.3 | |
| Transfer to stage 3 | -80.5 | -133.5 | 214.0 | |
| New loans | 16,002.0 | 927.9 | 12.5 | 16,942.4 |
| Derecognition | -9,506.4 | -793.8 | -34.6 | -10,334.9 |
| Other changes | -1,090.7 | -106.0 | -7.5 | -1,204.1 |
| Gross loans 30.06.2024 | 56,001.1 | 7,886.6 | 443.5 | 64,331.2 |
| Storebrand Bank Group | ||||
|---|---|---|---|---|
| NOK million | Stage 1 | Stage 2 | Stage 3 | Total gross loans |
| Gross loans 01.01.2023 | 45,685.6 | 3,438.4 | 67.0 | 49,191.0 |
| Transfer to stage 1 | 772.8 | -770.1 | -2.7 | |
| Transfer to stage 2 | -2,643.3 | 2,644.3 | -1.0 | |
| Transfer to stage 3 | -141.3 | -122.3 | 263.7 | |
| New loans | 23,990.1 | 1,753.0 | 35.2 | 25,778.3 |
| Derecognition | -14,155.0 | -895.0 | -36.2 | -15,086.2 |
| Other changes | -891.2 | -59.3 | -4.7 | -955.2 |
| Gross loans 31.12.2023 | 52,617.7 | 5,988.9 | 321.3 | 58,927.8 |
| Storebrand Bank ASA | ||||
|---|---|---|---|---|
| NOK million | Stage 1 | Stage 2 | Stage 3 | Total gross loans |
| Gross loans 01.01.2024 | 11,964.6 | 1,772.0 | 101.7 | 13,838.3 |
| Transfer to stage 1 | 263.8 | -257.3 | -6.5 | |
| Transfer to stage 2 | -693.6 | 698.1 | -4.5 | |
| Transfer to stage 3 | -25.8 | -54.4 | 80.2 | |
| New loans | 11,415.2 | 770.8 | 3.6 | 12,189.6 |
| Derecognition | -4,944.4 | -489.4 | -11.0 | -5,444.7 |
| Other changes | -184.6 | -22.8 | -5.1 | -212.6 |
| Gross loans 30.06.2024 | 17,795.2 | 2,417.0 | 158.4 | 20,370.6 |
| Storebrand Bank ASA | ||||
|---|---|---|---|---|
| NOK million | Stage 1 | Stage 2 | Stage 3 | Total gross loans |
| Gross loans 01.01.2023 | 10,699.4 | 981.4 | 29.2 | 11,709.9 |
| Transfer to stage 1 | 104.8 | -104.8 | ||
| Transfer to stage 2 | -570.9 | 570.9 | ||
| Transfer to stage 3 | -52.5 | -29.3 | 81.8 | |
| New loans | 8,759.5 | 859.2 | 15.3 | 9,634.0 |
| Derecognition | -6,856.8 | -486.1 | -21.4 | -7,364.3 |
| Other changes | -119.0 | -19.2 | -3.1 | -141.4 |
| Gross loans 31.12.2023 | 11,964.6 | 1,772.0 | 101.7 | 13,838.3 |
Change in maximum exposure for guarantees and unused credits
| Storebrand Bank Group | ||||
|---|---|---|---|---|
| Total | ||||
| NOK million | Stage 1 | Stage 2 | Stage 3 | exposure |
| Maximum exposure 01.01.2024 | 4,695.5 | 187.9 | 0.3 | 4,883.7 |
| Transfer to stage 1 | 152.1 | -152.0 | -0.1 | |
| Transfer to stage 2 | -63.9 | 63.9 | ||
| Transfer to stage 3 | -0.2 | -0.1 | 0.3 | |
| New loans | 1,781.0 | 23.6 | 1,804.6 | |
| Derecognition | -542.8 | -14.9 | -557.7 | |
| Other changes | 34.6 | -5.8 | 1.3 | 30.2 |
| Maximum exposure 30.06.2024 | 6,056.3 | 102.6 | 1.8 | 6,160.6 |
| Storebrand Bank Group | ||||
|---|---|---|---|---|
| NOK million | Stage 1 | Stage 2 | Stage 3 | Total exposure |
| Maximum exposure 01.01.2023 | 3,612.5 | 124.5 | 0.3 | 3,737.3 |
| Transfer to stage 1 | 23.0 | -22.9 | -0.1 | |
| Transfer to stage 2 | -90.8 | 90.8 | ||
| Transfer to stage 3 | -0.4 | -0.3 | 0.7 | |
| New loans | 1,671.1 | 42.7 | 1,713.8 | |
| Derecognition | -514.9 | -16.0 | -0.1 | -530.9 |
| Other changes | -5.0 | -31.0 | -0.5 | -36.5 |
| Maximum exposure 31.12.2023 | 4,695.5 | 187.9 | 0.3 | 4,883.7 |
| Storebrand Bank ASA | ||||
|---|---|---|---|---|
| NOK million | Stage 1 | Stage 2 | Stage 3 | Total exposure |
| Maximum exposure 01.01.2024 | 2,332.7 | 152.0 | 0.3 | 2,485.0 |
| Transfer to stage 1 | 117.8 | -117.7 | -0.1 | |
| Transfer to stage 2 | -29.1 | 29.1 | ||
| Transfer to stage 3 | -0.2 | -0.1 | 0.3 | |
| New loans | 1,579.0 | 22.7 | 1,601.8 | |
| Derecognition | -533.9 | -18.7 | -552.6 | |
| Other changes | -5.1 | -11.8 | -0.1 | -17.0 |
| Maximum exposure 30.06.2024 | 3,461.3 | 55.5 | 0.4 | 3,517.2 |
| Storebrand Bank ASA | ||||||
|---|---|---|---|---|---|---|
| NOK million | Stage 1 | Stage 2 | Stage 3 | Total exposure |
||
| Maximum exposure 01.01.2023 | 2,259.9 | 107.9 | 0.3 | 2,368.1 | ||
| Transfer to stage 1 | 5.2 | -5.1 | -0.1 | |||
| Transfer to stage 2 | -57.2 | 57.3 | ||||
| Transfer to stage 3 | -0.3 | -0.2 | 0.6 | |||
| New loans | 893.7 | 26.8 | 920.5 | |||
| Derecognition | -749.7 | -27.9 | -0.1 | -777.7 | ||
| Other changes | -18.7 | -6.8 | -0.4 | -25.9 | ||
| Maximum exposure 31.12.2023 | 2,332.7 | 152.0 | 0.3 | 2,485.0 |
Note Off balance sheet liabilities and contingent liabilities
7
| Storebrand Bank ASA | Storebrand Bank Group | |||
|---|---|---|---|---|
| 31.12.2023 30.06.2024 NOK million | 30.06.2024 31.12.2023 | |||
| 0.3 | 0.3 Guarantees | 0.3 | 0.3 | |
| 4,904.7 | 5,396.8 Unused credit limits | 6,160.3 | 4,883.3 | |
| 2,607.0 | 4,485.9 Loan commitments retail market | 4,485.9 | 2,607.0 | |
| 7,511.9 | 9,883.0 Total contingent liabilities | 10,646.5 | 7,490.6 | |
| Booked value of bonds pledged as security for the bank's D-loan and | ||||
| 1,428.6 | 2,723.4 | F-loan facility with the Norwegian central bank | 2,202.3 | 1,428.6 |
| 152.3 | 101.4 Booked value of bonds pledged as security with other credit | 101.4 | 152.3 | |
| 1,580.9 | institutions 2,824.7 Total book value of off balance sheet liabilities |
2,303.6 | 1,580.9 |
Guarantees essentially encompass payment guarantees and contract guarantees. Unused credit facilities encompass granted and any unused credit accounts and credit cards, as well as, any unused flexible mortgage facilities. Unused credit facilities reported in Storebrand Bank ASA as of 30 June 2024 includes NOK 1.9 billion to the subsidiary Storebrand Boligkreditt AS (see note 2).
Storebrand Bank ASA and Storebrand Bank Group - Declaration by the Board of Directors and the CEO
On this date, the Board of Directors and the CEO have considered and approved the interim report and interim financial statements for Storebrand Bank ASA and the Storebrand Bank Group for the first six months of 2024 (Interim report for the first six months, 2024).
The Interim report has been prepared in accordance with the requirements of IAS 34 Interim Financial Reporting as adopted by the EU and additional Norwegian requirements pursuant to the Norwegian Securities Trading Act.
In the best judgement of the Board and the CEO, the financial statements for first six months of 2024 have been prepared in accordance with applicable accounting standards, and the information in the financial statements provides a fair and true picture of the parent company's and Group's assets, liabilities, financial standing and results as a whole as at 30 June 2024. In the best judgement of the Board and the CEO, the six-month report provides a fair and true overview of important events during the accounting period and their effects on the financial statements for Storebrand Bank ASA and the Storebrand Bank Group. In the best judgement of the Board and the CEO, the descriptions of the most important elements of risk and uncertainty that the group faces in the next accounting period, and a description of related parties' material transactions, also provide a true and fair view.
Lysaker, 11 July 2024 The Board of Directors of Storebrand Bank ASA
Heidi Skaaret Chairman of the Board
Trygve Saue Håkedal Beate Steen Kolstø Jan Birger Penne
Gro Opsanger Rebbestad Cecilie Joramo Sandell Joachim Collett Thue
Camilla Leikvoll CEO
Financial calendar
12 July 2024 Results Q2 2024 23 October 2024 Results Q3 2024 February 2025 Results Q4 2024
Investor Relations contacts
Camilla Leikvoll
CEO [email protected] +47 979 89 128
Kjetil R. Krøkje
Group Head of Finance, Strategy and M&A [email protected] +47 934 12 155
Johannes Narum
Head of Investor Relations [email protected] +47 993 33 569
Storebrand Bank ASA Professor Kohts vei 9, P.O. Box 474, N-1327 Lysaker, Norway Phone: +47 22 31 50 50