Sparebanken Møre

Regulatory Filings • Apr 27, 2022

Sparebanken Møre receives SREP decision from The Financial Supervisory Authority of Norway

Sparebanken Møre receives SREP decision from The Financial Supervisory Authority of Norway

The Financial Supervisory Authority of Norway (Finanstilsynet) regularly subjects Sparebanken Møre’s risk and capital requirements to a Supervisory Review and Evaluation Process (SREP). The bank normally undergoes a SREP every second year and as part of this process a decision is made concerning its Pillar 2 Requirement and expectations regarding the Pillar 2 Guidance.

Sparebanken Møre has this evening received this year’s SREP decision from Finanstilsynet. The requirements will apply from 30.04.2022.

Sparebanken Møre’s new Pillar 2 requirement will amount to 1,7 per cent of the risk weighted assets. The requirement must be met by Common Equity Tier 1 capital (CET1) and is additional to the minimum requirement and total buffer requirement in Pillar 1. The previous Pillar 2 requirement was 1.7 per cent of the risk weighted assets.

Finanstilsynet also expects Sparebanken Møre to have a level of Pillar 2 Guidance in the form of CET1 that exceeds the total capital adequacy requirement by 1,25 per cent of the risk weighted assets. Finanstilsynet has not specifically expressed such an expectation to the bank before, although Sparebanken Møre has established and communicated an internal target for its capital margin (management buffer) of a minimum of 1.0 per cent.

The total requirement for CET1 capital in Sparebanken Møre will now be 12,7 per cent plus the Pillar 2 Guidance of 1.25 per cent.

Sparebanken Møre’s future capital planning will be based on a CET1 ratio target that as a minimum will amount to the sum of the Pillar 1 and Pillar 2 requirement plus the Pillar 2 Guidance.

At the end of 2021, Sparebanken Møre had a CET1 ratio of 17.2 per cent. The bank has previously provided guidance on the effect of the SME discount, which will have effect from 1 June 2022, of 1.3 percentage points.

For further information:

Trond Lars Nydal, CEO: +47 951 79 977

Runar Sandanger, Senior Economist: +47 950 43 660

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