Interim report 2021

Storebrand Bank ASA (unaudited)

Interim report Storebrand Bank Group 3
Key figures Storebrand Group 5
Income statement Storebrand Bank Group 6
Statement of financial position 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 Group . 10
Statement of changes in equity Storebrand Bank ASA 11
Statement of cash flow . 12

Notes

Note 1	Accounting principles 13
Note 2	Estimates	13
Note 3	Tax 13
Note 4	Related Parties	13
Note 5	Financial risk	14
Note 6	Valuation of financial instruments . 17
Note 7	Debt securities issued and subordinated loans	21
Note 8	Capital adequacy 22
Note 9	Losses on loans, guarantees and unused credits .	24
	Note 10 Loan portfolio and guarantees 25
	Note 11 Loan loss provisions .	29
	Note 12 Non-performing loans and loan losses. 31
	Note 13 Distribution of loan loss provisions and exposure on secured and unsecured retail exposures 33
	Note 14 Off balance sheet liabilities and contingent liabilities .	35
	Note 15 Net interest income .	35
	Note 16 Net change in fair value and gain/loss on foreign exchange and financial instruments .	37
	Note 17 Quarterly income statement .	39

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.

Storebrand Bank Group - Interim report for the fourth quarter of 2021

(Profit figures for the corresponding period in 2020 are shown in brackets. Balance sheet figures in brackets are for the end of 2020).

Continued strong lending growth
Stable net interest income
Low volume of non-performing loans

Loans outstanding increased by NOK 0.1 billion during the quarter. The home mortgage portfolio managed on behalf of Storebrand Livsforsikring AS increased by NOK 1.3 billion during the quarter. The combined portfolio of loans in Storebrand Bank and Storebrand Livsforsikring increased by NOK 1.3 billion during the quarter and NOK 7.5 billion year to date.

Financial performance

The bank group achieved pre-tax profit of NOK 60 million (NOK 69 million) in the fourth quarter and a pre-tax profit of NOK 276 million (NOK 190 million) year to date.

Net interest income was NOK 137 million (NOK 113 million) in the fourth quarter and NOK 509 million (NOK 430 million) year to date. Net interest income as a percentage of average total assets was 1.19 per cent (1.13 per cent) in the quarter and 1.17 per cent (1.11 per cent) year to date. The net interest income was negatively influenced by increased the NIBOR, but this was offset by an increase of the average lending portfolio.

Net commission revenues represented NOK 22 million (NOK 27 million) in the fourth quarter and NOK 90 million (NOK 97 million) year to date. Other revenues amounted to a loss of NOK 4 million (NOK 24 million) in the quarter and NOK 17 million (NOK 28 million) year to date. The loss in the fourth quarter was primarily due to changes in value of financial instruments.

Operating expenses increased in the quarter and amounted to NOK 92 million (NOK 94 million). The increase was mainly due to a write-down of intangible assets related to the loan application process. Year to date the operating expenses amounted to NOK 352 million (NOK 328 million).

Loan losses amounted to NOK 3 million (NOK 1 million) in the quarter and a gain of NOK 12 million (NOK 37 million loss) year to date.

Balance sheet development

The bank group's lending to customers was NOK 39.0 billion (NOK 31.9 billion) at the end of the fourth quarter. The portfolio of loans managed on behalf of Storebrand Livsforsikring AS amounted to NOK 18.0 billion (NOK 17.7 billion). The combined portfolio of loans in Storebrand Bank Group and Storebrand Livsforsikring amounted to NOK 57.0 billion (NOK 49.6 billion) at the end of the fourth 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 57 per cent for home mortgages, compared to 56 per cent at the end of 2020.

As of 30 September 2021, the Storebrand Bank group has changed the definition of default. The definition is adapted to the European Banking Authority (EBA) guidelines on definition of default. See note 12 for more details about the new default definition.

The total volume of non-performing loans remained stable year to date and accounts for 0.2 per cent (0.4 per cent) of gross lending at the end of the fourth quarter. The bank considers the portfolio quality to be good. Non-performing loans without impairment amounted to NOK 48 million (NOK 71 million) at the end of the fourth quarter. Loss-exposed loans with evidence of impairment amounted to NOK 29 million (NOK 50 million) at the end of the fourth quarter. Total loan loss provisions amounted to NOK 58 million (NOK 76 million) at the end of the quarter, of which NOK 9 million (NOK 24 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 17.2. billion (NOK 15.5 billion) at the end of the fourth quarter, which represents a deposit-to-loan ratio of 44.1 per cent (48.7 per cent).

Storebrand Bank ASA issued senior bonds of NOK 500 million in the quarter. Storebrand Boligkreditt AS has not issued any covered bonds this quarter. The long-term counterparty credit rating is unchanged A- (stable) from S&P Global.

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 163 per cent at the end of the fourth quarter.

Capital adequacy

The bank group has had an increase in the risk-weighted balance sheet of NOK 2.3 billion year to date. The Storebrand Bank group had a net capital base of NOK 3.3 billion at the end of the fourth quarter. The capital adequacy ratio was 20.3 per cent and the Core Equity Tier 1 (CET1) ratio was 15.4 per cent at the end of the fourth quarter, compared with 18.7 per cent and 15.1 per cent, respectively, at the end of 2020. The combined requirements for capital and CET1 were 15.8 per cent and 12.3 per cent respectively at the end of the fourth quarter.

The bank group aims to comply with the applicable buffer capital requirements at any given time. 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 by a good margin as of 31 December 2021.

Credit risk

The credit risk in the loan portfolio at year end 2021 is in line with the credit risk previous quarters. The portfolio mainly consists of loans and credits secured in residential real estate. The average LTV is approximately 57% compared to 56% at year end 2020. Loans in arrear and defaulted loans are on similar levels as in previous quarters.

The expected credit losses are approximately unchanged during the fourth quarter. Expected losses based on models are reduced by approximately NOK 2.1 million, and expected losses on individually assessed loans are increased by NOK 1.8 million. The level of expected credit losses is still above pre-pandemic level.

Performance of Storebrand Bank ASA

In the fourth quarter, Storebrand Bank ASA achieved a pre-tax profit of NOK 149 million (NOK 99 million) and NOK 240 million (NOK 167 million) for the year to date.

Net interest income for Storebrand Bank ASA was NOK 65 million (NOK 47 million) in the quarter and NOK 238 million (NOK 229 million) year to date.

Loan losses for the quarter was NOK 2 million (NOK 3 million) and a gain of NOK 13 million (NOK 35 million loss) year to date.

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, 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.

Sound management of the bank's credit and liquidity risk, and control of the operational risk in key work processes is a core priority. The bank will continue to closely monitor developments in non-performing loans and loan losses. Developments in the Norwegian and international capital markets, interest rates, unemployment, and the property market, particularly in Oslo, are regarded as key risk factors that can affect the results of the Storebrand Bank group.

Storebrand Bank's operational restrictions imposed by the pandemic have been lifted, and the company is combining key learnings from flexible working to establish a productive work environment to the benefit of both employees and customers.

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, 8 February 2022 The Board of Directors of Storebrand Bank ASA

Storebrand Bank Group Key figures Storebrand Bank Group

	Q4		Full Year
NOK million and percentage	2021	2020	2021	2020
Profit and Loss account
Net interest income 1)	1.20 %	1.13 %	1.17 %	1.11 %
Other operating income 2)	0.16 %	0.52 %	0.24 %	0.32 %

Main balance sheet figures
Total assets			45,372.3	39,809.4
Average total assets 1)	45,595.3	39,589.7	43,607.0	38,869.4
Gross loans to customers			39,049.6	31,854.9
Deposits from customers			17,238.8	15,506.3
Deposits from customers as % of gross loans			44.1 %	48.7 %
Equity			2,929.7	2,539.0

Other key figures
Loan losses and provisions as % of average total loans 4)	0.03 %	0.02 %	-0.03 %	0.12 %
Gross non-performing and loss-exposed loans as % of total loans			0.2 %	0.4 %
Cost/income ratio 3)	59.4 %	57.2 %	56.2 %	59.1 %
Adjusted return on equity	7.3 %	9.2 %	8.5 %	6.3 %
Core equity Tier 1 (CET1) capital ratio			15.4 %	15.1 %
LCR 5)			163.0 %	224.0 %

Storebrand Bank ASA

	Q4		Full Year
NOK million and percentage	2021	2020	2021	2020
Profit and Loss account
Net interest income 1)	1.06 %	0.81 %	0.99 %	1.02 %
Other operating income 2)	2.97 %	2.67 %	1.42 %	1.34 %
Profit before other comprehensive income as % of total asets			0.74 %	0.56 %

Main balance sheet figures
Total assets			24,918.8	22,960.8
Average total assets 1)	24,184.9	23,055.3	23,899.6	22,421.2
Gross lending to customers			12,615.0	10,785.2
Deposits from customers			17,238.8	15,506.3
Deposits from customers as % of gross loans			136.7 %	143.8 %
Equity			2,716.6	2,387.4

Other key figures
Loan losses and provisions as % of average total loans 4)	0.07 %	0.11 %	-0.10 %	0.34 %
Gross non-performing and loss-exposed loans as % of total loans			0.5 %	0.7 %
Cost/income ratio 3)	37.7 %	49.7 %	60.6 %	61.8 %
Core equity Tier 1 (CET1) capital ratio			21.2 %	20.0 %
LCR 5)			135.0 %	215.0 %

Definitions:

1) Net interest income as percent of average total assets. Average total assets is calculated on the basis of monthly total assets for the quarter and for the year to date respectively.

2) Other operating income includes net fee and commission income.

3) Total operating expenses as % of total income.

4) Loan losses and provisions for Storebrand Bank Group consist of total loan loss provisions including change in statistical provisions for the period.

5) Liquidity coverage requirement.

Storebrand Bank Group Income statement

		Q4		Full Year
NOK million	note	2021	2020	2021	2020
Interest income and similar income
Interest income calculated by using the effective interest method		204.4	161.9	724.8	750.7
Other interest income		13.7	8.7	41.9	72.5
Total interest income and similar income	15	218.2	170.6	766.7	823.3

Interest expenses and similar expenses
Interest expenses calculated by using the effective interest method		-70.2	-50.7	-229.3	-362.3
Other interest expenses		-10.8	-7.2	-28.6	-30.6
Total interest expenses and similar expenses	15	-80.9	-57.9	-257.9	-392.8
Net interest income	15	137.3	112.7	508.8	430.4

Fee and commission income from banking services		28.2	32.4	113.1	114.4
Fee and commission expense for banking services		-6.0	-5.0	-23.2	-17.7
Income from shares, units and other equity instruments			10.2		10.2
Net change in fair value and gain/loss on foreign exchange and financial instruments	16	-4.1	0.8	15.7	-0.7
Other operating income			13.3	1.0	18.7
Total other operating income		18.0	51.7	106.6	125.0

Staff expenses		-42.2	-38.8	-165.6	-114.8
Other operating expenses		-38.5	-46.4	-156.3	-190.0
Depreciation of non-financial assets		-4.0	-4.9	-17.1	-19.3
Impairment of non-financial assets		-7.5	-4.0	-12.8	-4.0
Total operating expenses excl. credit loss on loans, etc.		-92.2	-94.1	-351.8	-328.0
Profit before credit loss on loans, etc.		63.1	70.4	263.6	227.4
Credit loss on loans, guarantees and interest-bearing securities	9	-3.1	-1.3	12.0	-37.4
Profit before tax for continued operations		59.9	69.0	275.6	190.0
Tax on profit from continued operations	3	-11.6	-12.3	-63.8	-42.9
Profit incl. tax from continued operations		48.3	56.7	211.8	147.1
Profit incl. tax from discontinued operations'
Profit before other comprehensive income		48.3	56.7	211.8	147.1

Other comprehensive income
Other income and expenses not to be reclassified to profit/loss
Changes in estimates related to defined benefit pension plans		0.3	-0.2	0.3	-0.2
Tax		-0.1		-0.1
Total other income and expenses not to be reclassified to profit/loss		0.3	-0.1	0.3	-0.1

Other income and expenses that may be reclassified to profit/loss
Change in unrealised gain/loss on loans valued at fair valute through other
comprehensive income (OCI)		0.7		0.7
Tax		-0.2		-0.2
Total other income and expenses that may be reclassified to profit/loss		0.6		0.6

Total other comprehensive income elements		0.8	-0.1	0.8	-0.1
Total comprehensive income		49.1	56.6	212.6	147.0

Total comprehensive income attributable to:
Portion attributable to shareholders		46.8	54.5	203.8	137.0
Portion attributable to additional Tier 1 capital holders		2.3	2.2	8.8	10.0
Total		49.1	56.6	212.6	147.0

Storebrand Bank Group Statement of financial position

NOK million note	31.12.2021	31.12.2020
Cash and deposits with central banks	313.0	49.5
Loans to and deposits with credit institutions	6 67.4	103.3
Loans to customers 5, 6, 10, 11, 12, 13	39,000.6	31,802.5

Interest-bearing securities 6, 14	5,805.9	7,628.5
Derivatives	6 56.5	73.5
Equity instruments	40.1	41.7

Intangible assets	44.4	67.9
Deferred tax assets	3 3.5	6.2
Other current assets	41.1	36.3
Total assets	45,372.3	39,809.4


Loans and deposits from credit institutions	6 502.0	1,653.3
Deposits from and due to customers	6 17,238.8	15,506.3
Debt securities issued 6, 7	23,922.7	19,648.1
Derivatives	6 51.1	77.8
Other current liabilities	80.8	65.7

Pensions	3.0	4.7
Tax payable	58.6	14.3
Provisions for guarantees and unused credit facilities 11	8.7	23.6
Other provisions	0.9	0.9

Subordinated loans 6, 7	575.9	275.6
Total liabilities	42,442.6	37,270.4

Share capital	962.1	960.6
Share premium	404.5	156.0
Additional Tier 1 capital	225.7	225.7
Other paid in equity	728.1	728.1
Total paid in equity	2,320.4	2,070.3

Other equity	609.4	468.7
Total retained earnings	609.4	468.7

Total equity	8 2,929.7	2,539.0
Total liabilities and equity	45,372.3	39,809.4

Lysaker, 8 February 2022 The Board of Directors of Storebrand Bank ASA

Storebrand Bank ASA Income statement

	Q4		Full Year
NOK million note	2021	2020	2021	2020
Interest income and similar income
Interest income calculated by using the effective interest method	82.9	65.7	303.1	315.2
Other interest income	12.1	10.7	41.4	76.9
Total interest income and similar income 15	95.0	76.4	344.5	392.1

Interest expenses and similar expenses
Interest expenses calculated by using the effective interest method	-24.0	-23.0	-81.4	-136.4
Other interest expenses	-6.1	-6.4	-25.2	-27.2
Total interest expenses and similar expenses 15	-30.2	-29.4	-106.7	-163.6
Net interest income 15	64.9	47.0	237.8	228.5

Fee and commission income from banking services	53.7	53.4	206.6	197.4
Fee and commission expense for banking services	-5.9	-5.0	-22.9	-17.3
Income from shares, units and other equity instruments		10.2		10.2
Income from ownership interests in group companies	139.5	69.8	139.5	69.8
Net change in fair value and gain/loss on foreign exchange and financial instruments 16	-8.7	7.9	15.1	21.5
Other operating income		18.7	1.0	18.7
Total other operating income	178.6	155.0	339.4	300.3

Staff expenses	-42.1	-43.9	-165.4	-114.5
Other operating expenses	-38.1	-47.7	-154.7	-188.8
Depreciation of non-financial assets	-4.0	-4.9	-17.1	-19.3
Impairment of non-financial assets	-7.5	-4.0	-12.8	-4.0
Total operating expenses excl. credit loss on loans, etc.	-91.8	-100.5	-350.0	-326.6
Profit before credit loss on loans, etc.	151.7	101.5	227.2	202.1
Total credit loss on loans, guarantees and interest-bearing securities 9	-2.3	-2.8	12.5	-34.7
Profit before tax for continued operations	149.4	98.7	239.6	167.4
Tax on profit from continued operations 3	-31.1	-19.0	-55.7	-38.1
Profit before other comprehensive income	118.3	79.7	183.9	129.3

Other comprehensive income
Other income and expenses not to be reclassified to profit/loss
Changes in estimates related to defined benefit pension plans	0.3	-0.2	0.3	-0.2
Tax	-0.1		-0.1
Total other income and expenses not to be reclassified to profit/loss	0.3	-0.1	0.3	-0.1

Other income and expenses that may be reclassified to profit/loss
Change in unrealised gain/loss on loans valued at fair valute through other comprehen
sive income (OCI)	0.7		0.7
Tax	-0.2		-0.2
Total other income and expenses that may be reclassified to profit/loss	0.6		0.6

Total other comprehensive income elements	0.8	-0.1	0.8	-0.1
Total comprehensive income	119.1	79.6	184.7	129.2

Total comprehensive income attributable to:
Portion attributable to shareholders	116.8	77.5	175.9	119.2
Portion attributable to additional Tier 1 capital holders	2.3	2.2	8.8	10.0
Total	119.1	79.6	184.7	129.2

Storebrand Bank ASA Statement of financial position

NOK million note	31.12.2021	31.12.2020

Cash and deposits with central banks	313.0	49.5
Loans to and deposits with credit institutions 6	1,818.6	1,807.7
Loans to customers 5, 6, 10, 11, 12,	12,570.6	10,737.0
13

Interest-bearing securities 6, 14	8,191.0	8,563.6
Derivatives 6	53.9	73.5
Equity instruments	40.1	41.7
Ownership interests in group companies	1,619.7	1,510.9

Intangible assets	44.4	67.9
Deferred tax assets 3	13.8	8.5
Other current assets	253.6	100.5
Total assets	24,918.8	22,960.8

Loans and deposits from credit institutions 6	502.0	1,653.3
Deposits from and due to customers 6	17,238.8	15,506.3
Debt securities issued 6, 7	3,379.9	2,821.5
Derivatives 6	51.1	77.8
Other current liabilities	441.8	209.7

Pensions	3.0	4.7
Provisions for guarantees and unused credit facilities 11	8.7	23.6
Other provisions	0.9	0.9

Subordinated loans 6, 7	575.9	275.6
Total liabilities	22,202.2	20,573.4

Share capital	962.1	960.6
Share premium	404.5	156.0
Additional Tier 1 capital	225.7	225.7
Other paid in equity	979.6	899.6
Total paid in equity	2,571.9	2,241.9

Other equity	144.7	145.5
Total retained earnings	144.7	145.5

Total equity 8	2,716.6	2,387.4
Total liabilities and equity	24,918.8	22,960.8

Lysaker, 8 February 2022 The Board of Directors of Storebrand Bank ASA

Storebrand Bank Group Statement of changes in equity

			Additional	Other	Total		Total
	Share	Share	Tier 1	paid in	paid in	Other	retained	Total
NOK million	capital	premium	capital	equity	equity	equity	earnings	equity

Equity at 31.12.19	960.6	156.0	225.9	544.1	1,886.6	512.6	512.6	2,399.2

Profit for the period			10.0		10.0	137.1	137.1	147.1
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			10.0		10.0	137.0	137.0	147.0

Equity transactions with owners:
Additional Tier 1 capital classified as equity						2.5	2.5	2.5
Payment to additional Tier 1 holders			-10.3		-10.3			-10.3
Group contribution received				184.0	184.0			184.0
Group contribution paid						-183.5	-183.5	-183.5
Equity at 31.12.20	960.6	156.0	225.7	728.1	2,070.3	468.7	468.7	2,539.0

Profit for the period			8.8		8.8	203.0	203.0	211.8
Total other income and expenses not to be classified to
profit/loss						0.3	0.3	0.3
Total other income and expenses that may be classified to profit/loss						0.6	0.6	0.6
Total other comprehensive income						0.8	0.8	0.8
Total comprehensive income for the period			8.8		8.8	203.8	203.8	212.6

Equity transactions with owners:
Capital injection	1.5	248.5			250.0			250.0
Additional Tier 1 capital classified as equity						2.2	2.2	2.2
Payment to additional Tier 1 holders			-8.8		-8.8			-8.8
Group contribution paid						-65.3	-65.3	-65.3
Equity at 31.12.21	962.1	404.5	225.7	728.1	2,320.4	609.4	609.4	2,929.7

Storebrand Bank ASA Statement of changes in equity

			Additional	Other	Total		Total
	Share	Share	Tier 1	paid in	paid in	Other	retained	Total
NOK million	capital	premium	capital	equity	equity	equity	earnings	equity

Equity at 31.12.19	960.6	156.0	225.9	899.6	2,242.1	89.5	89.5	2,331.7

Profit for the period			10.0		10.0	119.3	119.3	129.3
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			10.0		10.0	119.2	119.2	129.2

Equity transactions with owners:
Additional Tier 1 capital classified as equity						2.5	2.5	2.5
Payment to additional Tier 1 holders			-10.3		-10.3			-10.3
Provision for group contribution						-65.7	-65.7	-65.7
Equity at 31.12.20	960.6	156.0	225.7	899.6	2,241.9	145.5	145.5	2,387.4

Profit for the period			8.8		8.8	175.1	175.1	183.9
Total other income and expenses not to be classified to profit/loss						0.3	0.3	0.3
Total other income and expenses that may be classified to profit/loss						0.6	0.6	0.6
Total other comprehensive income						0.8	0.8	0.8
Total comprehensive income for the period			8.8		8.8	175.9	175.9	184.7

Equity transactions with owners:
Capial injection	1.5	248.5			250.0			250.0
Additional Tier 1 capital classified as equity						2.2	2.2	2.2
Payment to additional Tier 1 holders			-8.8		-8.8			-8.8
Group contribution received				80.0	80.0			80.0
Provision for group contribution						-179.0	-179.0	-179.0
Equity at 31.12.21	962.1	404.5	225.7	979.6	2,571.9	144.7	144.7	2,716.6

The share capital is made up of 64 137 183 shares of nominal value NOK 15.

Statement of cash flow

Storebrand Bank ASA			Storebrand Bank Group
31.12.2020	31.12.2021	NOK million	31.12.2021	31.12.2020
		Cash flow from operating activities
509.8	503.7	Receipts of interest, commissions and fees from customers	918.1	953.2
-102.1	-63.9	Payments of interest, commissions and fees to customers	-63.9	-102.1
-937.9	-1,839.0	Net disbursements/payments on customer loans	-7,208.2	-1,606.4
1,102.0	1,732.5	Net receipts/payments of deposits from banking customers	1,732.5	1,102.0
-4,191.0	425.0	Net receipts/payments - securities	1,875.8	-3,153.2
-294.9	-311.9	Payments of operating costs	-407.1	-385.9
-3,914.0	446.4	Net cash flow from operating activities	-3,152.8	-3,192.4

		Cash flow from investing activities
-18.8		Net payments on purchase/capitalisation of subsidiaries		-18.8
-6.9	-6.3	Net payments on purchase/sale of fixed assets etc.	-6.3	-6.9
-25.7	-6.3	Net cash flow from investing activities	-6.3	-25.7

		Cash flow from financing activities
-815.0	-1,038.5	Payments - repayments of loans and issuing of bond debt	-2,106.0	-6,248.0
750.0	1,599.3	Receipts - new loans and issuing of bond debt	6,429.7	8,512.5
-65.5	-46.2	Payments - interest on loans	-241.3	-341.7
	300.0	Receipts - subordinated loans	300.0
-7.8	-7.1	Payments - interest on subordinated loans	-7.1	-7.8
-10.3	-8.8	Payments - interest on additional Tier 1 capital	-8.8	-10.3
1,206.2	-1,149.8	Net receipts/payments of liabilities to credit institutions	-1,149.8	1,205.2
	250.0	Receipts - issuing of share capital and other equity	250.0
264.3	69.8	Receipts - group contribution		184.0
-306.6	-134.4	Payments - group contribution / dividends	-80.0	-244.0
1,015.3	-165.7	Net cash flow from financing activities	3,386.7	3,049.9

-2,924.4	274.4	Net cash flow in the period	227.6	-168.2

4,781.6	1,857.2	Cash and bank deposits at the start of the period	152.8	321.1
1,857.2	2,131.6	Cash and bank deposits at the end of the period	380.4	152.8

		Cash and bank deposits consists of:
49.5	313.0	Cash and deposits with central banks	313.0	49.5
1,807.7	1,818.6	Loans to and deposits with credit institutions	67.4	103.3
1,857.2	2,131.6	Total cash and bank deposits in the balance sheet	380.4	152.8

Notes Storebrand Bank Group

Note 01

Accounting principles

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 2020 annual report, and the interim financial statements are prepared with respect to these accounting policies.

In 2013, Storebrand Bank ASA decided to wind up the corporate market at the bank. At the end of 2021, the remaining corporate market portfolio is insignificant. Therefore, the Storebrand Bank Group no longer distinguishes between different segments in its reporting.

There are no new standards or changes in standards that have not been applied in the presentation of the accounts 2021 that are expected to have a significant effect on the banking group's and the parent bank's accounts.

Note 02

Estimates

Critical accounting estimates and judgements are described in the 2020 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 10 for Storebrand Bank ASA.

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.

Actual results may differ from these estimates.

Note 03

Tax

The Storebrand Bank Group includes companies that are both subject to and not subject to the financial tax. Therefore, when capitalizing deferred tax/deferred tax assets in the consolidated financial statements, the company tax rate that applies for the individual group companies is used.

Related Parties Note 04

Covered bonds issued by Storebrand Boligkreditt AS

Storebrand Bank ASA has invested a total of NOK 4.0 billion in covered bonds issued by Storebrand Boligkreditt AS as of 31 December 2021. The investments are included in the liquidity portfolio in the parent company and are classified at fair value through profit or loss. The investment has been eliminated in the consolidated accounts against bonds issued by Storebrand Boligkreditt AS.

Loans sold to Storebrand Boligkreditt AS

Storebrand Bank ASA sells loans to the mortgage company Storebrand Boligkreditt AS. Once the loans are sold, Storebrand Boligkreditt AS assumes all the risks and benefits of owning the loan portfolio. It is Storebrand Boligkreditt AS that receives all the cash flows from the loan customer. Storebrand Bank ASA shall arrange the transfer and return of loans when changes have to be made, i.e. if there is a request to increase the loan amount, change from variable to fixed interest, conversion to employee loan or conversion to a flexible mortgage. The costs are included in the contractual administration fee. Non-performing loans in Storebrand Boligkreditt AS remain in the company.

These loans will, pursuant to the service agreement with Storebrand Bank ASA, be treated in the same way as non-performing loans in the bank. Specific reports are prepared for non-performing loans in Storebrand Boligkreditt AS. These loans are not included in the cover pool. Loans to employees can be transferred to Storebrand Boligkreditt AS. The difference between the market interest rate and the subsidised interest rate is covered monthly by the company in which the debtor is employed.

Storebrand Bank ASA has not pledged any guarantees in connection with loans to Storebrand Boligkreditt AS.

Storebrand Bank ASA and Storebrand Boligkreditt AS have signed a management agreement pursuant to which Storebrand Boligkreditt AS will purchase administrative services from the bank. Storebrand Boligkreditt AS also purchases administrative services from Storebrand Livsforsikring AS.

Loans sold to Storebrand Livsforsikring AS

Storebrand Bank ASA has sold mortgages to sister company Storebrand Livsforsikring AS. There has been sold loans of total NOK 2,6 billion in the fourth quarter and NOK 5.0 billion year to date. The home mortgage portfolio managed on behalf of Storebrand Livsforsikring AS as of the fourth quarter in 2021 is NOK 18.0 billion. As the buyer, Storebrand Livsforsikring AS has acquired both cash flows and most of the risk and control. The loans were therefore derecognised in the bank's balance sheet in accordance with IFRS 9. Storebrand Bank ASA receives management fees for the work being done with the sold portfolio. The bank has recognised NOK 70.5 million as revenue in the accounts for the fourth quarter of 2021.

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 6 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. In 2021 all covenant requirements are fulfilled.

Other related parties

Storebrand Bank ASA conducts transactions with related parties as part of its normal business activities. The terms for transactions with senior employees and related parties are stipulated in notes 40 and 41 in the 2020 annual report for Storebrand Bank ASA.

Financial risk Note 05

Notes 4 to 8 in the 2020 annual report provide a detailed overview of the bank group's financial risk and notes 5 to 9 in the 2020 annual report provide a detailed overview of Storebrand Bank ASA's financial risk. The descriptions are applicable at 31 December 2021, however, with the following amendments and further comments.

Credit Risk - credit exposure

There are no significant changes to PD, EAD and LGD estimates from 30 September 2021 to 31 December 2021. The LTV's are not significantly changed. There are no significant changes to loans in arrear and defaulted loans at 31 December 2021 compared to previous quarters, cf. new definition of default (see note 12).

Loan-to-value ratio, secured loans

Storebrand Bank Group

	31.12.2021
NOK million	Distribution in per cent	Book value (gross)	Unused credit limits	Total commitments
0% - 40%	17.7 %	6,162.0	1,053.7	7,215.6
40% - 60%	32.8 %	12,527.5	894.3	13,421.8
60% - 80%	36.8 %	14,798.3	219.7	15,018.0
80% - 90%	10.8 %	4,374.8	32.6	4,407.4
90% - 100%	1.2 %	464.2	15.9	480.1
> 100%	0.8 %	315.7	5.8	321.6
Total secured loans	100.0 %	38,642.5	2,222.0	40,864.5
Loan commitments and financing certificates, secured			3,515.8	3,515.8
Total secured loans incl. loan commitments and financing certificates		38,642.5	5,737.8	44,380.3

	31.12.2020
NOK million	Distribution in per cent	Book value (gross)	Unused credit limits	Total commitments
0% - 40%	23.6 %	6,228.2	1,668.1	7,896.3
40% - 60%	28.6 %	9,360.8	193.2	9,554.1
60% - 80%	39.0 %	13,016.3	28.1	13,044.4
80% - 90%	7.0 %	2,332.3	0.6	2,332.9
90% - 100%	0.9 %	304.9	0.6	305.4
> 100%	0.9 %	285.6	8.2	293.8
Total secured loans	100.0 %	31,528.1	1,898.9	33,426.9
Loan commitments and financing certificates, secured			2,961.7	2,961.7
Total secured loans incl. loan commitments and financing certificates		31,528.1	4,860.5	36,388.6

	31.12.2021
	Distribution in	Book value	Unused	Total
NOK million	per cent	(gross)	credit limits	commitments
0% - 40%	16.4 %	1,709.8	501.4	2,211.2
40% - 60%	29.4 %	3,411.9	557.5	3,969.4
60% - 80%	32.1 %	4,155.0	177.0	4,332.0
80% - 90%	17.7 %	2,370.0	18.2	2,388.2
90% - 100%	2.7 %	346.9	13.9	360.9
> 100%	1.6 %	214.9	4.1	219.0
Total secured loans	100.0 %	12,208.6	1,272.0	13,480.6
Loan commitments and financing certificates, secured			3,515.8	3,515.8
Total secured loans incl. loan commitments and financing certificates		12,208.6	4,787.9	16,996.5

	31.12.2020
	Distribution in	Book value	Unused	Total
NOK million	per cent	(gross)	credit limits	commitments
0% - 40%	18.7 %	1,460.9	640.9	2,101.7
40% - 60%	23.7 %	2,539.7	132.8	2,672.5
60% - 80%	37.0 %	4,149.9	23.7	4,173.6
80% - 90%	16.5 %	1,855.1	0.7	1,855.8
90% - 100%	2.0 %	228.0	0.7	228.7
> 100%	2.1 %	225.1	9.5	234.5
Total secured loans	100.0 %	10,458.7	808.1	11,266.8
Loan commitments and financing certificates, secured			2,961.7	2,961.7
Total secured loans incl. loan commitments and financing certificates		10,458.7	3,769.8	14,228.5

Risk related to secured loans

Storebrand Bank Group

	31.12.2021
	Distribution	Book value	Unused	Total
NOK million	in per cent	(gross)	credit limits	commitments
Low risk	92.9 %	35,769.7	2,193.9	37,963.6
Medium risk	6.6 %	2,662.3	28.1	2,690.3
High risk	0.5 %	184.5		184.6
Non-performing and loss-exposed loans incl. loans with evidence of impairment	0.1 %	26.0		26.0
Total secured loans	100.0 %	38,642.5	2,222.0	40,864.5
Loan commitments and financing certificates, secured			3,515.8	3,515.8
Total secured loans incl. loan commitments and financing certificates		38,642.5	5,737.8	44,380.3

	31.12.2020
	Distribution	Book value	Unused	Total
NOK million	in per cent	(gross)	credit limits	commitments
Low risk	93.2 %	29,277.2	1,875.8	31,152.9
Medium risk	6.1 %	2,008.8	23.1	2,031.9
High risk	0.5 %	160.0		160.0
Non-performing and loss-exposed loans incl. loans with evidence of impairment	0.2 %	82.1		82.1
Total secured loans	100.0 %	31,528.1	1,898.9	33,426.9
Loan commitments and financing certificates, secured			2,961.7	2,961.7
Total secured loans incl. loan commitments and financing certificates		31,528.1	4,860.5	36,388.6

Storebrand Bank ASA

	31.12.2021
	Distribution	Book value	Unused	Total
NOK million	in per cent	(gross)	credit limits	commitments
Low risk	90.5 %	10,954.2	1,244.5	12,198.7
Medium risk	8.9 %	1,166.2	27.5	1,193.8
High risk	0.5 %	69.0		69.0
Non-performing and loss-exposed loans incl. loans with evidence of impairment	0.1 %	19.1		19.1
Total secured loans	100.0 %	12,208.6	1,272.0	13,480.6
Loan commitments and financing certificates, secured			3,515.8	3,515.8
Total secured loans incl. loan commitments and financing certificates		12,208.6	4,787.9	16,996.5

	31.12.2020
NOK million	Distribution in per cent	Book value (gross)	Unused credit limits	Total commitments
Low risk	91.1 %	9,481.3	786.8	10,268.1
Medium risk	7.9 %	864.6	21.3	885.9
High risk	0.6 %	71.3		71.3
Non-performing and loss-exposed loans incl. loans with evidence of impairment	0.4 %	41.5		41.5
Total secured loans	100.0 %	10,458.7	808.1	11,266.8
Loan commitments and financing certificates, secured			2,961.7	2,961.7
Total secured loans incl. loan commitments and financing certificates		10,458.7	3,769.8	14,228.5

Liquidity risk

Storebrand Bank ASA has had solid liquidity buffers previous quarters, and the bank still has substantial liquidity buffer at 31 December 2021. The LCR ratio for the bank group is at 163 per cent, well above the requirement of 100 per cent. The funding structure is balanced with regards to maturity.

The long term counterparty rating of Storebrand Bank ASA is "A-" with a stable outlook from S&P Global. The covered bond programme is rated "AAA".

Market risk

The interest rate risk is not significantly changed the last quarter.

Valuation of financial instruments

The Storebrand Group classify financial instruments valued at fair valune in three different levels. The criteria for the classification and processes associated with valuing are described in more detail in note 10 in the 2020 annual report for Storebrand Bank ASA.

The company has established valuation models to gather information from a wide range of well-informed sources with a view to minimising the uncertainty of valuations.

Storebrand Bank Group

Valuation of financial instruments at fair value through profit and loss (FVTPL)

		Level 2	Level 3
	Level 1	Observable	Non-observable	Book value	Book value
NOK million	Quoted prices	assumptions	assumptions	31.12.2021	31.12.2020
Equities and funds
Equites		28.9	11.2	40.1	41.7
Total equities 31.12.2021		28.9	11.2	40.1
Total equities 31.12.2020		31.2	10.5		41.7
Loans to customers - Corporate Market
Loans to customers - Retail Market			489.4	489.4	722.3
Total loans to customers 31.12.2021			489.4	489.4
Total loans to customers 31.12.2020			722.3		722.3
Government and government guaranteed bonds		237.1		237.1	427.6
Mortgage and asset backed bonds		2,022.6		2,022.6	3,923.5
Total interest-bearing securities 31.12.2021		2,259.7		2,259.7
Total interest-bearing securities 31.12.2020		4,351.1			4,351.1
Interest derivatives		5.4		5.4	-4.2
Currency derivatives					-0.1
Total derivatives 31.12.2021		5.4		5.4
Derivatives with a positive fair value		56.5		56.5	73.5
Derivatives with a negative fair value		-51.1		-51.1	-77.8
Total derivatives 31.12.2020		-4.3			-4.3

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 (FVOCI)

	Level 1	Level 2	Level 3
		Observable	Non-observable	Book value	Book value
NOK million	Quoted prices	assumptions	assumptions	31.12.2021	31.12.2020
Loans to customers - corporate market			3.0	3.0	12.1
Loans to customers - retail market			38,091.8	38,091.8	30,774.0
Total loans to customers 31.12.2021			38,094.8	38,094.8
Total loans to customers 31.12.2020			30,786.1		30,786.1

Financial instruments at fair value - level 3

	31.12.2021
		Loans to customers at fair value	Loans to customers at fair value
NOK million	Equities	through profit and loss	through other comprehensive income
Book value 01.01.2021	10.5	722.3	30,786.1
Net gains/losses on financial instruments	0.7	-7.6	-1.3
Additions		362.8	16,642.6
Sales		-588.1	-9,332.6
Book value 31.12.2021	11.2	489.4	38,094.8

Book value 31.12.2020	10.5	722.3	30,786.1
Sales		-226.3	-13,068.1
Additions		556.5	14,337.3
Net gains/losses on financial instruments	-8.9	3.0	-3.4
Book value 01.01.2020	19.4	389.2	29,520.3
NOK million	Equities	Loans to customers at fair value through profit and loss	Loans to customers at fair value through other comprehensive income
			31.12.2020

Valuation of financial instruments at amortised cost

	Fair value	Book value	Fair value	Book value
NOK million	31.12.2021	31.12.2021	31.12.2020	31.12.2020
Financial assets
Loans to and deposits with credit institutions	67.4	67.4	103.3	103.3
Loans to customers - Retail market	416.4	416.4	294.1	294.1
Interest-bearing securities	3,546.7	3,546.2	3,287.1	3,277.4
Total financial assets 31.12.2021	4,030.5	4,030.0
Total financial assets 31.12.2020			3,684.5	3,674.7
Financial liabilities
Loans and deposits from credit institutions	502.0	502.0	1,653.3	1,653.3
Deposits from and due to customers	17,238.8	17,238.8	15,506.3	15,506.3
Debt securities issued	23,989.4	23,922.7	19,737.7	19,648.1
Subordinated loans	575.8	575.9	280.7	275.6
Total financial liabilities 31.12.2021	42,306.1	42,239.5
Total financial liabilities 31.12.2020			37,178.1	37,083.4

Sensitivity analysis

Loans to customers

The value of fixed-rate loans is determined by discounting the agreed cash flows over the remaining maturity by the current discount rate adjusted for market spread. The discount rate that is used is based on a swap interest rate (mid swap) with a maturity that corresponds to the remaining lock-in period for the underlying loans. The market spread that is used on the date of the balance sheet is determined by assessing the market conditions, market price and the associated swap interest rate.

Equities

This item consist 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 comprehensive income (OCI) Changes in market spread		Floating loans to customers Fair value through other comprehensive income (OCI)		Equities
			Changes in market spread		Change in value
(NOK million)	+ 10 BP	- 10 BP	+ 25 bp	- 25 bp	+ 25 bp	- 25 bp
Increase/reduction in fair value at 31.12.2021	-4.4	4.4	-11.0	11.0	6.1	-7.9
Increase/reduction in fair value at 31.12.2020	-3.5	3.5	-8.9	8.9	7.0	-8.3

Storebrand Bank ASA

Valuation of financial instruments at fair value through profit and loss (FVTPL)

		Level 2	Level 3
	Level 1	Observable	Non-observable	Book value	Book value
NOK million	Quoted prices	assumptions	assumptions	31.12.2021	31.12.2020
Assets:
Equity instruments		28.9	11.2	40.1	41.7
Total equities 31.12.2021		28.9	11.2	40.1
Total equities 31.12.2020		31.2	10.5		41.7
Loans to customers - Corporate Market
Loans to customers - Retail Market			489.4	489.4	722.3
Total loans to customers 31.12.2021			489.4	489.4
Total loans to customers 31.12.2020			722.3		722.3
Government and government guaranteed bonds		237.1		237.1	427.6
Collateralised securities		4,695.9		4,695.9	4,900.3
Total interest-bearing securities 31.12.2021		4,932.9		4,932.9
Total interest-bearing securities 31.12.2020		5,327.9			5,327.9
Interest derivatives		2.8		2.8	-4.2
Currency derivatives					-0.1
Total derivatives 31.12.2021		2.8		2.8
Derivatives with a positive fair value		53.9		53.9	73.5
Derivatives with a negative fair value		-51.1		-51.1	-77.8
Total derivatives 31.12.2020		-4.3			-4.3

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 (FVOCI)

	Level 1	Level 2	Level 3
		Observable	Non-observable	Book value	Book value
NOK million	Quoted prices	assumptions	assumptions	31.12.2021	31.12.2020
Loans to customers - corporate market			3.0	3.0	12.1
Loans to customers - retail market			11,661.8	11,661.8	9,708.4
Total loans to customers 31.12.2021			11,664.8	11,664.8
Total loans to customers 31.12.2020			9,720.5		9,720.5

Financial instruments at fair value - Level 3

31.12.2021

		Loans to customers at fair value	Loans to customers at fair value
NOK million	Equities	through profit and loss	through other comprehensive income
Book value 01.01.2021	10.5	722.3	9,720.5
Net gains/losses on financial instruments	0.7	-7.6	-0.7
Supply / disposal		362.8	8,991.2
Sales / due settlements		-588.1	-7,046.2
Book value 31.12.2021	11.2	489.4	11,664.8

31.12.2020

NOK million	Equities	Loans to customers at fair value through profit and loss	Loans to customers at fair value through other comprehensive income
Book value 01.01.2020	19.4	389.2	9,116.9
Net gains/losses on financial instruments	-8.9	3.0	-0.8
Supply / disposal		556.5	6,912.2
Sales / due settlements		-226.3	-6,307.8
Book value 31.12.2020	10.5	722.3	9,720.5

Valuation of financial instruments at amortised cost

	Fair value	Book value	Fair value	Book value
NOK million	31.12.2021	31.12.2021	31.12.2020	31.12.2020
Financial assets
Loans to and deposits with credit institutions	1,818.6	1,818.6	1,807.7	1,807.7
Loans to customers - Retail market	416.4	416.4	294.1	294.1
Interest-bearing securities	3,258.6	3,258.1	3,245.4	3,235.7
Total financial assets 31.12.2021	5,493.6	5,493.1
Total financial assets 31.12.2020			5,347.2	5,337.5
Financial liabilities
Loans and deposits from credit institutions	502.0	502.0	1,653.3	1,653.3
Deposits from and due to customers	17,238.8	17,238.8	15,506.3	15,506.3
Debt securities issued	3,388.4	3,379.9	2,830.5	2,821.5
Subordinated loans	575.8	575.9	280.7	275.6
Total financial liabilities 31.12.2021	21,705.2	21,696.6
Total financial liabilities 31.12.2020			20,270.9	20,256.8

Sensitivity analysis

Loans to customers

Equities

	Floating loans to customers Fair value through comprehensive income (OCI)		Floating loans to customers Fair value through other comprehensive income (OCI)		Equities
		Changes in market spread Changes in market spread		Change in value
(NOK million)	+ 10 BP	- 10 BP	+ 25 bp	- 25 bp	+ 25 bp	- 25 bp
Increase/reduction in fair value at 31.12.2021	-1.3	1.3	-3.4	3.4	6.1	-7.9
Increase/reduction in fair value at 31.12.2020	-1.1	1.1	-2.8	2.8	7.0	-8.3

Note 7

Debt securities issued and subordinated loans

Total debt securities issued and subordinated loans	24,498.6	19,923.6
Subordinated loans	575.9	275.6
Debt securities issued	23,922.7	19,648.1
(NOK million)	31.12.2021	31.12.2020
	Storebrand Bank Group

Specification of debt securities issued and subordinated loans as at 31 December 2021 - Storebrand Bank Group

NOK million		Net				Book value
ISIN code	Issuer	nominal value	Currency	Interest	Maturity 1)	31.12.2021
Bond loans
NO0010841562	Storebrand Bank ASA	75.0	NOK	Floating	18.01.2022	75.2
NO0010860398	Storebrand Bank ASA	550.0	NOK	Floating	15.08.2022	550.8
NO0010868185	Storebrand Bank ASA	400.0	NOK	Floating	11.11.2022	400.7
NO0010881386	Storebrand Bank ASA	300.0	NOK	Floating	04.05.2023	300.7
NO0010891344	Storebrand Bank ASA	450.0	NOK	Floating	25.08.2023	450.5
NO0010931819	Storebrand Bank ASA	1,100.0	NOK	Floating	15.02.2024	1,101.2
NO0011146359	Storebrand Bank ASA	500.0	NOK	Floating	05.02.2025	500.7
Total bond loans		3,375.0				3,379.9

						Book
(NOK million)		Net				value
ISIN code	Issuer	nominal value	Currency	Interest	Maturity 1)	31.12.2021
Covered bonds
NO0010786726	Storebrand Boligkreditt AS	4,000.0	NOK	Floating	15.06.2022	4,004.6
NO0010813959	Storebrand Boligkreditt AS	2,527.0	NOK	Floating	20.06.2023	2,531.2
NO0010873177	Storebrand Boligkreditt AS	5,000.0	NOK	Floating	19.06.2024	4,998.9
NO0010894199	Storebrand Boligkreditt AS	5,000.0	NOK	Floating	25.06.2025	5,138.2
NO0011073140	Storebrand Boligkreditt AS	3,000.0	NOK	Floating	03.06.2026	3,074.7
NO0010951528	Storebrand Boligkreditt AS	480.0	NOK	Fixed	15.04.2031	481.8
NO0010936917	Storebrand Boligkreditt AS	300.0	NOK	Floating	21.02.2031	313.4
Total covered bonds 2)		20,307.0				20,542.9
Total debt securities issued		23,682.0				23,922.7

1) Maturity date in this summary is the first possible maturity date (Call date).

2) For issued covered bonds, a regulatory requirement for over-collateralisation of 102 per cent and an over-collateralisation requirement of 109.5 per cent for bonds issued before 21 June 2017 apply. In 2021 all covenants are fulfilled.

						Book
(NOK million)		Net				value
ISIN code	Issuer	nominal value	Currency	Interest	Maturity 1)	31.12.2021
Dated subordinated loans
NO0010786510	Storebrand Bank ASA	150.0	NOK	Floating	22.02.2022	150.4
NO0010843519	Storebrand Bank ASA	125.0	NOK	Floating	27.02.2025	125.3
NO0011104077	Storebrand Bank ASA	300.0	NOK	Floating	23.09.2026	300.1
Total subordinated loans		575.0				575.9
Total debt securities issued and subordinated loans						24,498.6

Note 8

Capital adequacy

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 12,3 per cent and 15.8 per cent. As of 31 December 2021, the Pilar 2 requirement for Storebrand Bank is 1.3 per cent of the risk-weihgted volume.

The Ministry of Finance has set an increase of the countercyclical capital buffer requirement by 1 percentage points from 31 December 2022.

Storebrand Bank ASA			Storebrand Bank Group
31.12.2020	31.12.2021	NOK million	31.12.2021	31.12.2020
960.6	962.1	Share capital	962.1	960.6
1,426.8	1,754.5	Other equity	1,967.7	1,578.4
2,387.4	2,716.6	Total equity	2,929.7	2,539.0
-225.0	-225.0	Additional Tier 1 capital included in total equity	-225.0	-225.0
-0.7	-0.7	Accrued interest on capital instruments included in total equity	-0.7	-0.7
2,161.7	2,490.8	Total equity included in Core Equity Tier 1 (CET1)	2,704.0	2,313.3

		Deductions
-16.0	-16.3	AVA adjustments	-39.6	-36.1
-67.9	-44.4	Intangible assets	-44.4	-67.9
		Provision for group contribution	-179.4	-80.0
		Addition
		Group contribution received	80.0
2,077.9	2,430.2	Core Equity Tier 1 (CET1)	2,520.7	2,129.4
		Other Tier 1 capital
225.0	225.0	Capital instruments eligible as Additional Tier 1 capital	225.0	225.0
		Capital instruments not eligible as Additional Tier 1 capital
		Addition
2,302.9	2,655.2	Tier 1 capital	2,745.7	2,354.4
		Tier 2 capital
275.0	575.0	Subordinated loans	575.0	275.0
		Subordinated loans not eligible as Tier 2 capital
		Tier 2 capital deductions
2,577.9	3,230.2	Eligible capital (Tier 1 capital + Tier 2 capital)	3,320.7	2,629.4

Eligible capital

Minimum capital requirement

Storebrand Bank ASA			Storebrand Bank Group
31.12.2020	31.12.2021	NOK million	31.12.2021	31.12.2020
748.1	837.2	Credit risk	1,221.2	1,033.1
		Of which:
1.7	2.8	Local and regional authorities	0.7	1.2
215.2	221.4	Institutions	1.3	1.7
306.2	361.2	Loans secured in residential real estate	1,091.1	889.2
41.7	52.8	Retail market	62.8	46.7
7.0	4.7	Loans past-due	7.4	13.5
151.3	173.3	Covered bonds	23.5	44.1
24.9	21.0	Other	34.4	36.6
748.1	837.2	Total minimum requirement for credit risk	1,221.2	1,033.1

0.0	0.0	Total minimum requirement for market risk	0.0	0.0
66.2	79.7	Operational risk	86.6	77.8
15.1	0.1	CVA risk 1)	1.2	15.1
		Deductions
829.5	917.0	Minimum requirement for net primary capital	1,309.0	1,126.0

1) Regulation on own funds requirements for credit valuation adjustment risk.

Capital adequacy

Storebrand Bank ASA			Storebrand Bank Group
31.12.2020	31.12.2021		31.12.2021	31.12.2020
24.9 %	28.2 %	Capital ratio	20.3 %	18.7 %
22.2 %	23.2 %	Tier 1 capital ratio	16.8 %	16.7 %
20.0 %	21.2 %	Core equity Tier 1 (CET1) capital ratio	15.4 %	15.1 %

Basis of calculation (risk-weighted volume)

Storebrand Bank ASA			Storebrand Bank Group
31.12.2020	31.12.2021	NOK million	31.12.2021	31.12.2020
9,351.1	10,465.1	Credit risk	15,264.4	12,913.4
		Of which:
21.3	34.4	Local and regional authorities	8.7	15.6
2,690.1	2,767.6	Institutions	15.9	21.3
3,828.1	4,515.2	Loans secured in residential real estate	13,638.5	11,115.5
521.2	660.0	Retail market	785.5	583.2
87.0	58.2	Loans past-due	93.0	168.7
1,891.7	2,166.7	Covered bonds	293.2	551.2
311.6	263.0	Other	429.7	457.8
9,351.1	10,465.1	Total basis of calculation credit risk	15,264.4	12,913.4

0.0	0.0	Total basis of calculation market risk	0.0	0.0
828.0	996.4	Operational risk	1,082.6	973.0
189.1	0.8	CVA risk	15.2	189.1
		Deductions
10,368.3	11,462.2	Total basis of calculation of minimum requirements for capital base	16,362.2	14,075.5

Losses on loans, guarantees and unused credits

Storebrand Bank Group

Note 9

		31.12.2021			31.12.2020
	Loans to customers			Loans to customers and securities valued
	and securities valued at	Guarantees and		at amortisert cost	Guarantees and
	amortisert cost and loans	unused credit		and loans to	unused credit
	to customers valued at fair value through other	limits which not are valued at fair		customers valued at fair value through	limits which not are valued at fair
	comprehensive	value through		other comprehensive	value through
(NOK million)	income (OCI)	profit and loss	Total	income (OCI)	profit and loss	Total
The periods change in
impairment losses stage 1	-1.7		-1.7	-2.2		-2.2
The periods change in
impairment losses stage 2	0.6	12.1	12.7	-7.9	-9.0	-16.9
The periods change in
impairment losses stage 3	0.2		0.2	2.3		2.3
Realised losses	-7.1		-7.1	-14.2		-14.2
Recoveries on previously
realised losses	1.2		1.2	1.5		1.5
Credit loss on interest-bearing
securities	0.1		0.1
Management overlay	4.1	2.9	7.0	-4.1	-2.9	-7.0
Other changes	-0.5		-0.5	-0.8		-0.8
Loss expense for the period	-3.0	14.9	12.0	-25.6	-11.8	-37.4

In 2020, a discretionary additional provision of NOK 7 million was made based on uncertainty related to the future development of the corona pandemic. Although the pandemic is not over by the end of 2021, the uncertainty in macroeconomic prospects has significantly decreased. The Norwegian Governement has introduced support schemes. No increase in default and arrears volume has been observed since the end of 2019. No increase in credit risk has been observed in the healthy part of the portfolio. Based on lower uncertainty and improved financial prospects, the bank has reversed this additional provision. The loss provision has been reversed gradually during 2021.

The Storebrand Bank group has NOK 4.4 million in outstanding contractual amounts for realised losses during 2021 that are still subject to enforcement activities. In 2020, the Storebrand Bank group had NOK 10.5 million in outstanding contractual amounts for realised losses during 2020 that were subject to enforcement activities.

Storebrand Bank ASA

		31.12.2021			31.12.2020
(NOK million)	Loans to customers and securities valued at amortisert cost and loans to customers valued at fair value through other comprehensive income (OCI)	Guarantees and unused credit limits which not are valued at fair value through profit and loss	Total	Loans to customers and securities valued at amortisert cost and loans to customers valued at fair value through other comprehensive income (OCI)	Guarantees and unused credit limits which not are valued at fair value through profit and loss	Total
The periods change in impairment losses stage 1	-1.4		-1.4	-1.7	0.1	-1.6
The periods change in impairment losses stage 2	1.2	12.1	13.3	-6.5	-9.0	-15.5
The periods change in impairment losses stage 3			-0.1	2.9		2.9
Realised losses	-7.1		-7.1	-14.0		-14.0
Recoveries on previously realised losses	1.2		1.2	1.5		1.5
Credit loss on interest-bearing securities	0.1		0.1
Management overlay	4.1	2.9	7.0	-4.1	-2.9	-7.0
Other changes	-0.6		-0.6	-0.8		-0.8
Loss expense for the period	-2.5	14.9	12.5	-22.9	-11.8	-34.7

Storebrand Bank ASA has NOK 4.4 million in outstanding contractual amounts for realised losses during 2021 that are still subject to enforcement activities. In 2020, Storebrand Bank ASA had NOK 10.3 million in outstanding contractual amounts for realised losses during 2020 that were subject to enforcement activities.

Note 10

Loan portfolio and guarantees

	Storebrand Bank ASA		Storebrand Bank Group
	31.12.2021	31.12.2020	31.12.2021	31.12.2020
(NOK million)	Book value	Book value	Book value	Book value

Loans to customers at amortised cost	438.5	320.8	438.5	320.8
Loans to customers at fair value through profit and loss	489.4	722.3	489.4	722.3
Loans to customers at fair value through other comprehensive
income (OCI)	11,687.1	9,742.0	38,121.7	30,811.7
Total gross loans to customers	12,615.0	10,785.2	39,049.6	31,854.9
Provision for expected loss Stage 1	-5.5	-4.1	-6.6	-4.9
Provision for expected loss Stage 2	-9.2	-14.5	-11.7	-16.4
Provision for expected loss Stage 3	-29.7	-29.7	-30.8	-31.1
Net loans to customers	12,570.6	10,737.0	39,000.6	31,802.5

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 01.01.2021	173.6	130.6	16.7	320.8
Transfer to stage 1	65.5	-65.3	-0.3	0.0
Transfer to stage 2	-5.8	6.3	-0.5	0.0
Transfer to stage 3	-2.3	-2.0	4.3	0.0
New loans	153.5	57.2	3.7	214.5
Derecognition	-41.9	-34.1	-7.0	-83.0
Other changes	-10.8	-3.5	0.6	-13.8
Gross loans 31.12.2021	331.8	89.2	17.5	438.5

Storebrand Bank Group

(NOK million)	Stage 1	Stage 2	Stage 3	Total gross loans
Gross loans 01.01.2020	227.2	56.9	22.1	306.3
Transfer to stage 1	2.3	-2.3		0.0
Transfer to stage 2	-56.2	57.0	-0.8	0.0
Transfer to stage 3	-2.1	-2.7	4.8	0.0
New loans	63.6	46.8	2.8	113.2
Derecognition	-34.4	-11.2	-13.3	-58.9
Other changes	-26.9	-13.9	1.1	-39.7
Gross loans 31.12.2020	173.6	130.6	16.7	320.8

Storebrand Bank ASA

(NOK million)	Stage 1	Stage 2	Stage 3	Total gross loans
Gross loans 01.01.2021	173.6	130.6	16.7	320.8
Transfer to stage 1	65.5	-65.3	-0.3	0.0
Transfer to stage 2	-5.8	6.3	-0.5	0.0
Transfer to stage 3	-2.3	-2.0	4.3	0.0
New loans	153.5	57.2	3.7	214.5
Derecognition	-41.9	-34.1	-7.0	-83.0
Other changes	-10.8	-3.5	0.6	-13.8
Gross loans 31.12.2021	331.8	89.2	17.5	438.5

(NOK million)	Stage 1	Stage 2	Stage 3	Total gross loans
Gross loans 01.01.2020	227.2	56.9	22.1	306.3
Transfer to stage 1	2.3	-2.3		0.0
Transfer to stage 2	-56.2	57.0	-0.8	0.0
Transfer to stage 3	-2.1	-2.7	4.8	0.0
New loans	63.6	46.8	2.8	113.2
Derecognition	-34.4	-11.2	-13.3	-58.9
Other changes	-26.9	-13.9	1.1	-39.7
Gross loans 31.12.2020	173.6	130.6	16.7	320.8

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 01.01.2021	28,104.7	2,603.1	103.9	30,811.7
Transfer to stage 1	1,135.9	-1,131.1	-4.8	0.0
Transfer to stage 2	-297.3	325.4	-28.1	0.0
Transfer to stage 3	-3.1	-7.0	10.1	0.0
New loans	15,857.0	785.4	0.2	16,642.6
Derecognition	-8,004.4	-840.6	-30.4	-8,875.3
Other changes	-433.3	-16.2	-7.7	-457.3
Gross loans 31.12.2021	36,359.5	1,719.0	43.2	38,121.7

Storebrand Bank Group

(NOK million)	Stage 1	Stage 2	Stage 3	Total gross loans
Gross loans 01.01.2020	27,841.6	1,598.7	102.2	29,542.5
Transfer to stage 1	280.0	-274.8	-5.1	0.0
Transfer to stage 2	-1,099.0	1,115.6	-16.6	0.0
Transfer to stage 3	-15.0	-40.5	55.5	0.0
New loans	11,299.0	826.6		12,125.6
Derecognition	-9,662.4	-578.6	-31.2	-10,272.2
Other changes	-539.5	-43.9	-0.8	-584.2
Gross loans 31.12.2020	28,104.7	2,603.1	103.9	30,811.7

Storebrand Bank ASA

(NOK million)	Stage 1	Stage 2	Stage 3	Total gross loans
Gross loans 01.01.2021	8,893.0	786.0	63.0	9,742.0
Transfer to stage 1	159.9	-156.5	-3.4	0.0
Transfer to stage 2	-57.3	69.2	-12.0	0.0
Transfer to stage 3	-3.1	-4.9	8.0	0.0
New loans	8,577.9	413.1	0.2	8,991.2
Derecognition	-6,430.0	-508.0	-12.6	-6,950.6
Other changes	-79.8	-8.2	-7.6	-95.6
Gross loans 31.12.2021	11,060.6	590.8	35.6	11,687.1

(NOK million)	Stage 1	Stage 2	Stage 3	Total gross loans
Gross loans 01.01.2020	8,616.1	454.1	67.4	9,137.6
Transfer to stage 1	38.6	-38.0	-0.6	0.0
Transfer to stage 2	-223.2	232.7	-9.5	0.0
Transfer to stage 3	-4.1	-17.3	21.4	0.0
New loans	6,513.9	398.4		6,912.2
Derecognition	-5,905.7	-226.9	-15.5	-6,148.1
Other changes	-142.6	-16.9	-0.3	-159.7
Gross loans 31.12.2020	8,893.0	786.0	63.0	9,742.0

Change in maximum exposure for guarantees and unused credits

Storebrand Bank Group

(NOK million)	Stage 1	Stage 2	Stage 3	Total gross loans
Maximum exposure 01.01.2021	2,690.4	373.1		3,063.4
Transfer to stage 1	264.8	-264.8		0.0
Transfer to stage 2	-20.3	20.3		0.0
Transfer to stage 3	-0.2	-0.2	0.4	0.0
New loans	604.4	18.5		622.9
Derecognition	-290.0	-50.6		-340.7
Other changes	-23.5	0.2	-0.1	-23.5
Maximum exposure 31.12.2021	3,225.6	96.4	0.3	3,322.3

Storebrand Bank Group

(NOK million)	Stage 1	Stage 2	Stage 3	Total gross loans
Maximum exposure 01.01.2020	2,878.2	194.8	0.1	3,073.0
Transfer to stage 1	8.7	-8.7		0.0
Transfer to stage 2	-191.4	191.4		0.0
Transfer to stage 3	-0.3	-0.3	0.6	0.0
New loans	290.3	14.4		304.7
Derecognition	-397.4	-29.6		-427.0
Other changes	102.3	11.0	-0.6	112.7
Maximum exposure 31.12.2020	2,690.4	373.1	0.0	3,063.4

Storebrand Bank ASA

(NOK million)	Stage 1	Stage 2	Stage 3	Total gross loans
Maximum exposure 01.01.2021	1,617.1	355.6		1,972.7
Transfer to stage 1	249.2	-249.2		0.0
Transfer to stage 2	-19.7	19.7		0.0
Transfer to stage 3	-0.2	-0.2	0.4	0.0
New loans	684.6	18.5		703.0
Derecognition	-196.5	-49.6		-246.1
Other changes	-58.0	0.7	-0.1	-57.4
Maximum exposure 31.12.2021	2,276.5	95.5	0.3	2,372.3

(NOK million)	Stage 1	Stage 2	Stage 3	Total gross loans
Maximum exposure 01.01.2020	1,652.9	190.9	0.1	1,843.8
Transfer to stage 1	6.1	-6.1		0.0
Transfer to stage 2	-175.5	175.5		0.0
Transfer to stage 3	-0.3	-0.3	0.6	0.0
New loans	336.9	13.7		350.5
Derecognition	-221.1	-28.9		-250.0
Other changes	18.1	10.9	-0.6	28.4
Maximum exposure 31.12.2020	1,617.1	355.6	0.0	1,972.7

Loan loss provisions Note

Storebrand Bank Group

	Stage 1	Stage 2	Stage 3
		Lifetime ECL - no	Lifetime ECL -
	12-month	objective evidence	objective evidence
(NOK million)	ECL	of impairment	of impairment	Total
Loan loss provisions 01.01.2021	8.9	36.0	31.1	76.0
Transfer to stage 1 (12-month ECL)	9.2	-9.0	-0.2	0.0
Transfer to stage 2 (lifetime ECL - no objective evidence of
impairment)	-0.3	0.6	-0.3	0.0
Transfer to stage 3 (lifetime ECL - objective evidence of impairment)	-0.1	-0.4	0.5	0.0
Net remeasurement of loan losses	-6.9	1.8	3.5	-1.6
New financial assets originated or purchased	4.0	6.5	2.9	13.5
Financial assets that have been derecognised	-2.0	-4.7	-1.5	-8.2
ECL changes of balances on financial assets without changes in stage
in the period	-3.1	-2.5	3.6	-2.0
ECL allowance on written-off (financial) assets		-0.1	-5.7	-5.8
Changes in models/risk parameters	0.8	-6.1	-1.9	-7.2
Management overlay		-7.0		-7.0
Loan loss provisions 31.12.2021	10.6	15.3	31.9	57.7

Loan loss provisions on loans to customers valued at amortised cost	3.6	6.1	12.4	22.1
Loan loss provisions on loans to customers valued at fair value
through other comprehensive income (OCI)	3.0	4.7	19.2	27.0
Loan loss provisions on guarantees and unused credit limits	4.0	4.5	0.2	8.7
Total loans loss provisions	10.6	15.3	31.9	57.7

	Stage 1	Stage 2	Stage 3
		Lifetime ECL - no	Lifetime ECL -
	12-month	objective evidence	objective evidence
(NOK million)	ECL	of impairment	of impairment	Total
Loan loss provisions 01.01.2020	6.8	12.1	33.3	52.2
Transfer to stage 1 (12-month ECL)	0.5	-0.4	-0.1	0.0
Transfer to stage 2 (lifetime ECL - no objective evidence of impairment)	-3.3	3.7	-0.4	0.0
Transfer to stage 3 (lifetime ECL - objective evidence of impairment)		-0.3	0.3	0.0
Net remeasurement of loan losses	-0.4	7.8	4.9	12.3
New financial assets originated or purchased	3.3	3.0	1.4	7.7
Financial assets that have been derecognised	-0.9	-1.5	-2.0	-4.3
ECL changes of balances on financial assets without changes in stage
in the period	3.0	4.8	2.5	10.4
ECL allowance on written-off (financial) assets		-0.2	-9.0	-9.2
Management overlay		7.0		7.0
Loan loss provisions 31.12.2020	8.9	36.0	31.1	76.0

Loan loss provisions on loans to customers valued at amortised cost	2.0	11.4	13.3	26.7
Loan loss provisions on loans to customers valued at fair value through
other comprehensive income (OCI)	2.9	5.0	17.8	25.7
Loan loss provisions on guarantees and unused credit limits	4.0	19.6		23.6
Total loans loss provisions	8.9	36.0	31.1	76.0

Storebrand Bank ASA

	Stage 1	Stage 2	Stage 3
		Lifetime ECL - no	Lifetime ECL -
	12-month	objective evidence	objective evidence
(NOK million)	ECL	of impairment	of impairment	Total
Loan loss provisions 01.01.2021	8.1	34.0	29.7	71.9
Transfer to stage 1 (12-month ECL)	8.8	-8.5	-0.2	0.0
Transfer to stage 2 (lifetime ECL - no objective evidence of impairment)	-0.3	0.5	-0.3	0.0
Transfer to stage 3 (lifetime ECL - objective evidence of impairment)	-0.1	-0.4	0.5	0.0
Net remeasurement of loan losses	-6.5	1.3	3.5	-1.8
New financial assets originated or purchased	3.2	5.3	2.9	11.4
Financial assets that have been derecognised	-2.4	-4.3	-1.3	-8.0
ECL changes of balances on financial assets without changes in stage
in the period	-2.2	-2.0	3.6	-0.4
ECL allowance on written-off (financial) assets		-0.1	-5.7	-5.8
Changes in models/risk parameters	0.8	-6.1	-1.9	-7.2
Management overlay		-7.0		-7.0
Loan loss provisions 31.12.2021	9.5	12.8	30.7	53.0

Loan loss provisions on loans to customers valued at amortised cost	3.6	6.1	12.4	22.1
Loan loss provisions on loans to customers valued at fair value
through other comprehensive income (OCI)	1.9	2.2	18.1	22.3
Loan loss provisions on guarantees and unused credit limits	4.0	4.5	0.2	8.7
Total loans loss provisions	9.5	12.8	30.7	53.0

	Stage 1	Stage 2	Stage 3
		Lifetime ECL - no	Lifetime ECL -
		objective evidence	objective evidence
(NOK million)	12-month ECL	of impairment	of impairment	Total
Loan loss provisions 01.01.2020	6.5	11.5	32.6	50.6
Transfer to stage 1 (12-month ECL)	0.4	-0.4		0.0
Transfer to stage 2 (lifetime ECL - no objective evidence of impairment)	-3.3	3.7	-0.4	0.0
Transfer to stage 3 (lifetime ECL - objective evidence of impairment)		-0.3	0.3	0.0
Net remeasurement of loan losses	-0.3	7.2	4.1	11.0
New financial assets originated or purchased	3.0	2.8	1.4	7.3
Financial assets that have been derecognised	-0.9	-1.3	-2.0	-4.1
ECL changes of balances on financial assets without changes in stage
in the period	2.8	3.9	2.5	9.1
ECL allowance on written-off (financial) assets		-0.2	-8.8	-9.0
Management overlay		7.0		7.0
Loan loss provisions 31.12.2020	8.1	34.0	29.7	71.9

Loan loss provisions on loans to customers valued at amortised cost	2.0	11.4	13.3	26.7
Loan loss provisions on loans to customers valued at fair value
through other comprehensive income (OCI)	2.1	3.0	16.4	21.5
Loan loss provisions on guarantees and unused credit limits	4.0	19.6		23.6
Total loans loss provisions	8.1	34.0	29.7	71.9

Periodical changes in individual impairments and expected credit loss on loans, unused credits and guarantees are shown above. Storebrand Bank Group and Storebrand Bank ASA have not any expected loan loss provisions related to loans to the central bank, credit institutionsand interest-bearing securities. Recognised losses on loans, unused credits and guarantees in the profit and loss account are shown in note 9.

Non-performing loans and loan losses Note 12

Storebrand Bank ASA			Storebrand Bank Group
31.12.2020	31.12.2021	NOK million	31.12.2021	31.12.2020
		Non-performing loans
37.8	38.1	Non-performing loans without evidence of impairment	47.6	70.9
41.9	24.0	Loss-exposed loans with evidence of impairment	29.4	49.7
79.7	62.1	Gross non-performing and loss-exposed loans	77.0	120.5
-29.7	-30.6	Loan loss provisions in stage 3	-31.7	-31.1
50.0	31.6	Net non-performing and loss-exposed loans	45.4	89.5

The Storebrand Bank group has changed the definition of default in line with the recommendation given by European Banking Authority's (EBA's) guide to implementing the default definition in accordance with Article 178 (EU Regulation 575/2013). The definition of default is applied at debtor level with absolute and relative thresholds for arrears/overdrafts. Arrears/overdrafts for each individual commitment are measured in relation to the total debtor exposure. The absolute threshold is set at NOK 1,000 (per commitment), and the relative threshold is 1% of total debtor exposure. Joint commitments (commitments with several debtors) are defined as a separate risk point, and they are not included in the total exposure for the respective individual customers. Default occurs after 90 days with arrears/overdrafts above both absolute and relative thresholds. All debtor commitments are considered defaulted if default has occurred on at least one of them. In accordance with the guidelines, a probation period of 3 months is used. The probation period starts when default criteria are no longer in place. In order for the probation period to end, the arrears/overdrafts must be below the threshold values for the entire probation period.

Overview of loan loss provisions and securities on loans in stage 3 Storebrand Bank Group

	31.12.2021
	Gross	Loan loss		Value of	Type of
(NOK million)	amount	provisions	Net value	collateral	collateral

Non-performing loans without evidence of impairment
- retail exposures secured by mortgages on					residential
immovable property	29.9	-1.1	28.8	78.4	property
- unsecured retail exposures including credit
cards exposures	17.7	-12.5	5.2
- other exposures including SME exposures
Total non-performing loans without evidence of
impairment	47.6	-13.6	34.0

Loss-exposed loans with evidence of impairment
- retail exposures secured by mortgages on					residential
immovable property	12.0	-4.2	7.8	29.3	property
- unsecured retail exposures including credit
cards exposures	0.3	-0.1	0.2
- other exposures including SME exposures	17.2	-14.0	3.2
Total loss-exposed loans with evidence of
impairment	29.4	-18.2	11.2

The bank group has loans of NOK 11.9 million in stage 3 where no loan loss provisions have been made due to the value of collateral.

			31.12.2020
	Gross	Loan loss		Value of	Type of
(NOK million)	amount	provisions	Net value	collateral	collateral


Non-performing loans without evidence of impairment
- retail exposures secured by mortgages on					residential

immovable property	54.6	-0.8	53.8	101.7	property
- unsecured retail exposures including credit cards
exposures	16.3	-13.2	3.1

- other exposures including SME exposures
Total non-performing loans without evidence of


impairment	70.9	-14.1	56.8

Loss-exposed loans with evidence of impairment

- retail exposures secured by mortgages on					residential
immovable property	27.5	-7.4	20.0	38.7	property

- unsecured retail exposures including credit
cards exposures	0.4	-0.1	0.3
					commercial
- other exposures including SME exposures	21.8	-9.5	12.3	10.0	real estate

Total loss-exposed loans with evidence of impairment	49.7	-17.0	32.7

The bank group had loans of NOK 35.6 million in stage 3 where no loan loss provisions was made due to the value of collateral.

Storebrand Bank ASA

			31.12.2021
	Gross	Loan loss		Value of	Type of
(NOK million)	amount	provisions	Net value	collateral	collateral

Non-performing loans without evidence of impairment
- retail exposures secured by mortgages on					residential
immovable property	20.4	-1.1	19.4	51.5	property
- unsecured retail exposures including credit cards
exposures	17.7	-12.5	5.2
- other exposures including SME exposures
Total non-performing loans without evidence of
impairment	38.1	-13.6	24.6

Loss-exposed loans with evidence of impairment
- retail exposures secured by mortgages on					residential
immovable property	7.2	-3.6	3.7	11.2	property
- unsecured retail exposures including credit cards
exposures	0.3	-0.1	0.2
- other exposures including SME exposures	16.5	-13.5	3.0
Total loss-exposed loans with evidence of
impairment	24.0	-17.2	6.8

The bank has loans of NOK 6.9 million in stage 3 where no loan loss provisions have been made due to the value of collateral.

			31.12.2020
	Gross	Loan loss		Value of	Type of
(NOK million)	amount	provisions	Net value	collateral	collateral


Non-performing loans without evidence of
impairment
- retail exposures secured by mortgages on					residential
immovable property	21.5	-0.6	20.9	54.2	property

- unsecured retail exposures including credit cards
exposures	16.3	-13.2	3.1
- other exposures including SME exposures
Total non-performing loans without evidence of
impairment	37.8	-13.8	24.0


Loss-exposed loans with evidence of impairment
- retail exposures secured by mortgages on					residential
immovable property	20.0	-6.3	13.6	24.7	property

- unsecured retail exposures including credit cards
exposures	0.4	-0.1	0.3
					commercial
- other exposures including SME exposures	21.5	-9.4	12.1	10.0	real estate

Total loss-exposed loans with evidence of
impairment	41.9	-15.8	26.0

The bank had loans of NOK 12.5 million in stage 3 where no loan loss provisions was made due to the value of collateral.

Note 13

Distribution of loan loss provisions and exposure on secured and unsecured retail exposures

Storebrand Bank Group Distribution of loan loss provisions

	31.12.2021
				Total loan loss
(NOK million)	Stage 1	Stage 2	Stage 3	provisions
Retail exposures secured by mortgages on immovable property	3.0	4.7	5.2	13.0
Unsecured retail exposures including credit cards exposures	7.6	10.6	12.6	30.7
Other exposures including SME exposures			14.0	14.0
Total loan loss provisions	10.6	15.3	31.9	57.7

	31.12.2020
				Total loan loss
(NOK million)	Stage 1	Stage 2	Stage 3	provisions
Retail exposures secured by mortgages on immovable property	2.9	5.0	8.3	16.2
Unsecured retail exposures including credit cards exposures	6.0	31.0	13.3	50.3
Other exposures including SME exposures			9.5	9.5
Total loan loss provisions	8.9	36.0	31.1	76.0

Distribution of exposure incl. unused credit facilities and guarantees

	31.12.2021
(NOK million)	Stage 1	Stage 2	Stage 3	Total exposure
Retail exposures secured by mortgages on immovable property	39,047.9	1,774.7	41.9	40,864.5
Unsecured retail exposures including credit cards exposures	1,315.9	155.5	18.2	1,489.6
Other exposures including SME exposures	0.5		17.2	17.8
Total exposure	40,364.3	1,930.2	77.3	42,371.9
	31.12.2020
(NOK million)	Stage 1	Stage 2	Stage 3	Total exposure
Retail exposures secured by mortgages on immovable property	30,626.1	2,718.7	82.1	33,426.9
Unsecured retail exposures including credit cards exposures	1,001.9	450.4	16.7	1,469.0
Other exposures including SME exposures	0.3	0.3	21.8	22.4
Total exposure	31,628.3	3,169.4	120.6	34,918.3

Storebrand Bank ASA

Distribution of loan loss provisions

	31.12.2021
(NOK million)	Stage 1	Stage 2	Stage 3	Total gross loans
Retail exposures secured by mortgages on immovable property	1.9	2.2	4.6	8.8
Unsecured retail exposures including credit cards exposures	7.6	10.6	12.6	30.7
Other exposures including SME exposures			13.5	13.5
Total loan loss provisions	9.5	12.8	30.7	53.0

	31.12.2020
(NOK million)	Stage 1	Stage 2	Stage 3	Total gross loans
Retail exposures secured by mortgages on immovable property	2.1	3.0	6.9	12.1
Unsecured retail exposures including credit cards exposures	6.0	31.0	13.3	50.3
Other exposures including SME exposures			9.4	9.5
Total loan loss provisions	8.1	34.0	29.7	71.9

Distribution of exposure incl. unused credit facilities and guarantees

	31.12.2021
(NOK million)	Stage 1	Stage 2	Stage 3	Total exposure
Retail exposures secured by mortgages on immovable property	12,799.9	653.0	27.7	13,480.6
Unsecured retail exposures including credit cards exposures	1,315.9	155.5	18.2	1,489.6
Other exposures including SME exposures	0.5		16.5	17.0
Total exposure	14,116.4	808.5	62.4	14,987.3

	31.12.2020
(NOK million)	Stage 1	Stage 2	Stage 3	Total exposure
Retail exposures secured by mortgages on immovable property	10,341.1	884.2	41.5	11,266.8
Unsecured retail exposures including credit cards exposures	1,001.9	450.4	16.7	1,469.0
Other exposures including SME exposures	0.3	0.3	21.5	22.1
Total exposure	11,343.3	1,334.9	79.7	12,757.9

Off balance sheet liabilities and contingent liabilities

	Storebrand Bank ASA		Storebrand Bank Group
31.12.2020	31.12.2021	NOK million	31.12.2021	31.12.2020
0.3	0.3	Guarantees	0.3	0.3
6,259.7	6,614.7	Unused credit limits	3,322.0	3,063.2
2,961.7	3,515.8	Loan commitments retail market	3,515.8	2,961.7
9,221.6	10,130.8	Total contingent liabilities	6,838.1	6,025.1
		Booked value of bonds pledged as security for the bank's D-loan and F-loan
3,255.8	1,060.7	facility with the Norwegian central bank	650.8	1,702.8
150.7	151.2	Booked value of bonds pledged as security with other credit institutions	151.2	150.7
3,406.5	1,211.9	Total book value of off balance sheet liabilities	802.0	1,853.5

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 31 December 2021 includes NOK 4.2 billion to the subsidiary Storebrand Boligkreditt AS (see note 4).

Note 15

Net interest income

Storebrand Bank Group

	Q4 Full Year
(NOK million)	2021	2020	2021	2020
Interest on loans to credit institutions	0.8	0.5	1.8	3.8
Interest on loans to customers valued at amortised cost	12.4	10.2	44.4	39.6
Interest on loans to customers valued at fair value
through other comprehensive income (OCI)	185.2	146.9	662.3	680.5
Interest on interest-bearing securities valued at
amortised cost	6.0	4.4	16.2	26.8
Total interest income calculated by using the effective interest method	204.4	161.9	724.8	750.7
Interest on loans to customers valued at fair value
through profit and loss	3.2	3.4	12.5	15.9
Interest on interest-bearing securities valued at fair value
with change in value through profit and loss	4.0	3.8	18.4	51.4
Interest on derivatives	6.5	1.4	10.9	5.2
Other interest income		0.1		0.1
Total other interest income	13.7	8.7	41.9	72.5
Total interest income	218.2	170.6	766.7	823.3

Interest on loans from credit institutions	-0.1	-0.7	-0.8	-4.0
Interest on deposits from customers	-11.8	-13.1	-41.0	-84.8
Interest on debt securities issued	-55.5	-35.4	-180.2	-266.1
Interest on subordinated loans	-2.8	-1.4	-7.3	-7.4
Total interest expenses calculated by using the
effective interest method	-70.2	-50.7	-229.3	-362.3
Interest on derivatives	-6.5	-3.0	-11.4	-13.5
Other interest expenses	-4.3	-4.3	-17.2	-17.0
Total other interest expenses	-10.8	-7.2	-28.6	-30.6
Total interest expenses	-80.9	-57.9	-257.9	-392.8
Net interest income	137.3	112.7	508.8	430.4

	Q4		Full Year
(NOK million)	2021	2020	2021	2020
Interest on loans to credit institutions	4.5	3.6	19.2	30.4
Interest on loans to customers valued at amortised cost	12.4	10.2	44.4	39.6
Interest on loans to customers valued at fair value
through other comprehensive income (OCI)	60.4	47.6	223.9	218.7
Interest on interest-bearing securities valued at
amortised cost	5.6	4.3	15.6	26.4
Total interest income calculated by using the
effective interest method	82.9	65.7	303.1	315.2
Interest on loans to customers valued at fair value
through profit and loss	3.2	3.4	12.5	15.9
Interest on interest-bearing securities valued at fair value with change in value through profit and loss	7.6	5.9	23.1	55.8
Interest on derivatives	1.3	1.4	5.8	5.2
Other interest income		0.1		0.1

Total other interest income	12.1	10.7	41.4	76.9
Total interest income	95.0	76.4	344.5	392.1

Interest on loans from credit institutions	-0.1	-0.7	-0.8	-4.0
Interest on deposits from customers	-11.8	-13.1	-41.0	-84.7
Interest on debt securities issued	-9.4	-7.7	-32.3	-40.2
Interest on subordinated loans	-2.8	-1.4	-7.3	-7.4
Total interest expenses calculated by using the
effective interest method	-24.0	-23.0	-81.4	-136.4
Interest on derivatives	-2.7	-3.0	-11.4	-13.5
Other interest expenses	-3.5	-3.4	-13.8	-13.6
Total other interest expenses	-6.1	-6.4	-25.2	-27.2
Total interest expenses	-30.2	-29.4	-106.7	-163.6
Net interest income	64.9	47.0	237.8	228.5

Net change in fair value and gain/loss on foreign exchange and financial instruments

Storebrand Bank Group

	Q4		Full Year
(NOK million)	2021	2020	2021	2020
Realised gain/loss on loans and receivable
Unrealised gain/loss on loans and receivable	-5.2	4.3	-9.8	21.3
Net change in value and gain/loss on loans and
receivables	-5.2	4.3	-9.8	21.3
Realised gain/loss on interest-bearing securities	0.3	0.3	15.8	5.2
Unrealised gain/loss on interest-bearing securities	-2.1	2.8	-4.9	0.1
Net change in value and gain/loss on interest-bearing
securities	-1.8	3.1	11.0	5.3
Realised gain/loss on equity instruments			-0.1
Unrealised gain/loss on equity instruments	-0.6	-12.7	-0.4	-6.9
Net change in value and gain/loss on equity instru

ments	-0.6	-12.7	-0.5	-6.9
Realised gain/loss on financial liabilities	-0.4	-1.2	-1.3	-19.0
Unealised gain/loss on financial liabilities	1.7	1.2	5.5	-6.8
Net change in value and gain/loss on financial liabilities
(except financial derivatives)	1.3	0.0	4.1	-25.8
Realised gain/loss on foreign exchange and financial
derivatives	1.9	1.2	2.5	6.2
Unrealised gain/loss on foreign exchange and financial
derivatives	0.3	5.0	8.4	-0.8
Net change in value and gain/loss on foreign
exchange and financial derivatives	2.2	6.2	11.0	5.5
Total change in value and net gain/loss on financial assets and financial liabilities	-4.1	0.8	15.7	-0.7

	Q4			Full Year
(NOK million)	2021	2020	2021	2020
Realised gain/loss on loans and receivable
Unrealised gain/loss on loans and receivable	-5.2	4.3	-10.1	21.3
Net change in value and gain/loss on loans and
receivables	-5.2	4.3	-10.1	21.3
Realised gain/loss on interest-bearing securities	0.3	1.5	24.1	6.3
Unrealised gain/loss on interest-bearing securities	-6.8	8.7	-11.9	4.1
Net change in value and gain/loss on interest-bearing
securities	-6.5	10.2	12.2	10.4
Realised gain/loss on equity instruments			-0.1
Unrealised gain/loss on equity instruments	-0.6	-12.7	-0.4	-6.9
Net change in value and gain/loss on equity
instruments	-0.6	-12.7	-0.5	-6.9
Realised gain/loss on financial liabilities	-0.4	-1.2	-1.2	-2.0
Unealised gain/loss on financial liabilities	0.0	1.2	0.3	-6.8
Net change in value and gain/loss on financial liabilities
(except financial derivatives)	-0.4	0.0	-0.9	-8.8
Realised gain/loss on foreign exchange and financial
derivatives	1.9	1.1	2.6	6.3
Unrealised gain/loss on foreign exchange and financial
derivatives	2.1	5.0	11.9	-0.8
Net change in value and gain/loss on foreign
exchange and financial derivatives	4.0	6.2	14.5	5.5
Total change in value and net gain/loss on financial
assets and financial liabilities	-8.7	7.9	15.1	21.5

Quarterly income statement Note 17

Storebrand Bank Group

	Q4	Q3	Q2	Q1	Q4
NOK million	2021	2021	2021	2021	2020
Interest income	218.2	190.2	183.4	174.9	170.6
Interest expense	-80.9	-53.3	-61.0	-62.7	-57.9
Net interest income	137.3	136.9	122.4	112.2	112.7
Fee and commission income from banking services	28.2	31.8	26.4	26.7	32.4
Fee and commission expenses for banking services	-6.0	-6.3	-5.2	-5.7	-5.0
Net fee and commission income	22.2	25.5	21.2	21.0	27.4
Dividend and other income from equity instruments					10.2
Net gains/losses on financial instruments	-4.1	5.6	-4.3	18.6	0.8
Other income			1.0		13.3
Total other operating income	-4.1	5.6	-3.3	18.6	24.4
Staff expenses	-42.2	-40.2	-38.4	-44.8	-38.8
Other operating expenses	-38.5	-41.0	-38.6	-38.2	-46.4
Depreciation and impairment of non-financial
assets	-11.5	-4.4	-9.6	-4.3	-8.9
Total operating expenses	-92.2	-85.6	-86.6	-87.3	-94.1
Operating profit before loan losses	63.1	82.4	53.7	64.4	70.4
Loan losses for the period	-3.1	6.9	-0.7	8.9	-1.3
Profit before tax	59.9	89.3	53.0	73.3	69.0
Tax	-11.6	-21.4	-13.1	-17.7	-12.3
Result after tax sold/discontinued operations
Profit before other comprehensive income	48.3	68.0	39.9	55.7	56.7

	Q4	Q3	Q2	Q1	Q4
NOK million	2021	2021	2021	2021	2020
Interest income	95.0	84.1	85.5	79.9	76.4
Interest expense	-30.2	-24.6	-25.1	-26.8	-29.4
Net interest income	64.9	59.6	60.3	53.0	47.0
Fee and commission income from banking services	53.7	56.1	48.8	48.0	53.4
Fee and commission expenses for banking services	-5.9	-6.3	-5.1	-5.7	-5.0
Net fee and commission income	47.9	49.8	43.7	42.3	48.4
Dividend and other income from equity instruments	139.5				80.0
Net gains/losses on financial instruments	-8.7	8.9	-3.6	18.6	7.9
Other income			1.0		18.7
Total other operating income	130.8	8.9	-2.5	18.6	106.6
Staff expenses	-42.1	-40.2	-38.3	-44.8	-43.9
Other operating expenses	-38.1	-40.7	-38.1	-37.8	-47.7
Depreciation and impairment of non-financial assets	-11.5	-4.4	-9.6	-4.3	-8.9
Total operating expenses	-91.8	-85.2	-86.1	-86.9	-100.5
Operating profit before loan losses	151.7	33.0	15.4	27.0	101.5
Loan losses for the period	-2.3	6.7	-0.2	8.3	-2.8
Profit before tax	149.4	39.7	15.2	35.3	98.7
Tax	-31.1	-10.5	-4.8	-9.4	-19.0
Profit before other comprehensive income	118.3	29.2	10.4	25.9	79.7

Financial calender 2022

4 May Results Q1 2022 14 July Results Q2 2022 26 October Results Q3 2022 February 2023 Results Q4 2022

Investor Relations contacts

Kjetil Ramberg Krøkje Group Head of Finance, Strategy and M&A [email protected] +47 934 12 155 Daniel Sundahl Head of Investor Relations and Rating [email protected] +47 913 61 899

Camilla Leikvoll CEO [email protected] +47 979 89 128

AI Terminal

Storebrand ASA

3766_rns_2022-02-09_3bf60b7b-9329-4c07-ad73-518296b5782d.pdf

Interim report 2021

Contents

Notes

Storebrand Bank Group - Interim report for the fourth quarter of 2021

Financial performance

Balance sheet development

Liquidity risk and funding

Capital adequacy

Credit risk

Performance of Storebrand Bank ASA

Strategy and future prospects

Storebrand Bank Group Key figures Storebrand Bank Group

Storebrand Bank Group Income statement

Storebrand Bank Group Statement of financial position

Storebrand Bank ASA Income statement

Storebrand Bank ASA Statement of financial position

Storebrand Bank Group Statement of changes in equity

Storebrand Bank ASA Statement of changes in equity

Statement of cash flow

Notes Storebrand Bank Group

Note 01

Accounting principles

Note 02

Estimates

Note 03

Related Parties Note 04

Covered bonds issued by Storebrand Boligkreditt AS

Loans sold to Storebrand Boligkreditt AS

Loans sold to Storebrand Livsforsikring AS

Credit facilities with Storebrand Boligkreditt AS

Other related parties

Financial risk Note 05

Credit Risk - credit exposure

Loan-to-value ratio, secured loans

Risk related to secured loans

Storebrand Bank Group

Storebrand Bank ASA

Liquidity risk

Market risk

Valuation of financial instruments

Storebrand Bank Group

Valuation of financial instruments at fair value through profit and loss (FVTPL)

Valuation of financial instruments at fair value through other comprehensive income (FVOCI)

Financial instruments at fair value - level 3

Valuation of financial instruments at amortised cost

Sensitivity analysis

Loans to customers

Equities

Storebrand Bank ASA

Valuation of financial instruments at fair value through profit and loss (FVTPL)

Valuation of financial instruments at fair value through other comprehensive income (FVOCI)

Financial instruments at fair value - Level 3

31.12.2020

Valuation of financial instruments at amortised cost

Sensitivity analysis

Loans to customers

Equities

Note 7

Debt securities issued and subordinated loans

Specification of debt securities issued and subordinated loans as at 31 December 2021 - Storebrand Bank Group

Note 8

Capital adequacy

Eligible capital

Minimum capital requirement

Capital adequacy

Basis of calculation (risk-weighted volume)

Losses on loans, guarantees and unused credits

Storebrand Bank Group

Storebrand Bank ASA

Loan portfolio and guarantees

Change in gross loans to customers valued at amortised cost

Storebrand Bank Group

Storebrand Bank Group

Storebrand Bank ASA

Change in gross loans to customers valued at fair value through other comprehensive income (OCI)

Storebrand Bank Group

Storebrand Bank Group