Quarterly Report • May 10, 2023
Quarterly Report
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Lovatnet, Stryn
| Main figures 3 | |
|---|---|
| Report of the Board of Directors 5 | |
| Income statement 21 | |
| Balance sheet 23 | |
| Cash flow statement 24 | |
| Change in equity 25 | |
| Notes 28 | |
| Results from quarterly accounts 59 | |
| Key figures from quarterly accounts 60 | |
| Equity capital certificates 61 | |
| Auditor's report 63 |
| January - March | |||
|---|---|---|---|
| From the income statement (NOKm) | 2023 | 2022 | 2022 |
| Net interest | 1,035 | 759 | 3,339 |
| Net commission income and other income | 541 | 522 | 2,042 |
| Net return on financial investments | 28 | 175 | 380 |
| Total income | 1,604 | 1,456 | 5,760 |
| Total operating expenses | 728 | 629 | 2,443 |
| Results before losses | 875 | 827 | 3,317 |
| Loss on loans, guarantees etc | -71 | 0 | -7 |
| Results before tax | 946 | 827 | 3,324 |
| Tax charge | 206 | 166 | 718 |
| Result investment held for sale, after tax | 38 | 37 | 179 |
| Net profit | 778 | 698 | 2,785 |
| Interest Tier 1 Capital | 34 | 21 | 63 |
| Net profit excl. Interest Tier 1 Capital | 744 | 677 | 2,722 |
| Balance sheet figures | 31 Mar 2023 | 31 Mar 2022 | 31 Dec 2022 |
| Gross loans to customers | 153,181 | 147,023 | 152,629 |
| Gross loans to customers incl. SB1 Boligkreditt and SB1 Næringskreditt | 213,967 | 199,965 | 211,244 |
| Deposits from customers | 123,529 | 114,053 | 122,010 |
| Average total assets | 225,759 | 202,936 | 196,226 |
| Total assets | 228,207 | 207,027 | 223,110 |
| January - March | |||
| Key figures | 2023 | 2022 | 2022 |
| Profitability | |||
| Return on equity1) | 13.0 % | 12.6 % | 12.3 % |
| Cost-income ratio1) | 45 % | 43 % | 42 % |
| Deposit-to-loan ratio excl. SB1 Boligkreditt and SB1 Næringskreditt | 81 % | 78 % | 80 % |
| Deposit-to-loan ratio incl. SB1 Boligkreditt and SB1 Næringskreditt 1) | 58 % | 57 % | 58 % |
| Growth in loans (gross) last 12 months (incl. SB1 Boligkreditt and SB1 Næringskreditt) 1) | 7.0 % | 7.9 % | 8.1 % |
| Growth in deposits last 12 months | 8.3 % | 11.4 % | 9.6 % |
| Losses in % of gross loans incl. SB1 Boligkreditt and SB1 Næringskreditt | |||
| Impairment losses ratio1) | -0.13 % | 0.00 % | 0.00 % |
| Stage 3 as a percentage of gross loans1) | 0.96 % | 1.62 % | 0.97 % |
| Solidity | 31 Mar 2023 | 31 Mar 2022 | 31 Dec 2022 |
| Capital ratio | 22.2 % | 21.9 % | 23.1 % |
| Tier 1 capital ratio | 20.1 % | 19.8 % | 20.9 % |
| Common equity Tier 1 capital ratio | 18.2 % | 18.3 % | 18.9 % |
| Tier 1 capital | 21,985 | 19,797 | 21,835 |
| Total eligible capital | 24,298 | 21,839 | 24,147 |
| Liquidity Coverage Ratio (LCR) | 194 % | 155 % | 239 % |
| Leverage Ratio | 6.9 % | 6.9 % | 7.1 % |
| Branches and staff | 31 Mar 2023 | 31 Mar 2022 | 31 Dec 2022 |
| Number of branches | 40 | 40 | 40 |
| No. Of full-time positions | 1,415 | 1,401 | 1,432 |
| 1) Defined as alternative performance measures, see attachment to quarterly report |
| 31 Mar | 31 Mar | 31 Dec | 31 Dec | 31 Dec | 31 Dec | |
|---|---|---|---|---|---|---|
| Key figures ECC | 2023 | 2022 | 2022 | 2021 | 2020 | 2019 |
| ECC ratio | 64 % | 64 % | 64 % | 64 % | 64 % | 64 % |
| Number of certificates issued, millions1) | 129.43 | 129.39 | 129.29 | 129.39 | 129.39 | 129.30 |
| ECC share price at end of period (NOK) | 123.60 | 141.20 | 127.40 | 149.00 | 97.60 | 100.20 |
| Stock value (NOKM) | 15,997 | 18,270 | 16,471 | 19,279 | 12,629 | 12,956 |
| Booked equity capital per ECC (including dividend) 1) | 105.63 | 99.55 | 109.86 | 103.48 | 94.71 | 90.75 |
| Profit per ECC, majority 1) | 3.51 | 3.20 | 12.82 | 13.31 | 8.87 | 12.14 |
| Dividend per ECC | 6.50 | 7.50 | 4.40 | 6.50 | ||
| Price-Earnings Ratio 1) | 8.79 | 11.05 | 9.94 | 11.19 | 11.01 | 8.26 |
| Price-Book Value Ratio 1) | 1.17 | 1.42 | 1.16 | 1.44 | 1.03 | 1.10 |
1) Defined as alternative performance measures, see attachment to quarterly report
(Consolidated figures. Figures in parenthesis refer to the same period of 2022 unless otherwise stated)
Norges Bank raised its base rate to 3.00 per cent in March and to 3.25 per cent at the beginning of May. SpareBank 1 SMN has like other banks raised mortgage interest rates and deposit rates. At its interest rate meeting in March the central bank indicated a base rate hike to 3.50 – 3.75 per cent in the course of 2023.
The 12-month rate of growth in the consumer price index was 6.5 per cent at the end of the quarter, and Norges Bank expects the CPI to remain above the target level of 2 per cent up to 2026. The labour market remains tight, and activity levels in the Norwegian economy are high. At the same time there are signs that price growth and a tighter monetary policy stance are reducing households' purchasing power. This is expected to affect firms' activity in the period ahead. More customers are turning to the bank for financial advice, but so far no significant increase in loan defaults is in evidence.
Figures for the first quarter 2023 indicate that the number of bankruptcies in the region is nearing the level prior to the pandemic. For SpareBank 1 SMN's part the credit risk trend in the corporate portfolio is acceptable. While continued improvement is seen in the offshore segment, increased risk is noted in the wider business sector due to high inflation and higher interest rates. Industries viewed as more exposed than others are construction, retail trade and commercial property.
On 19 January SpareBank 1 SMN reported a hired replacement employee to the police for gross embezzlement. The matter was brought to light by the bank's own control systems. The embezzlement totals NOK 75m. The accused returned about NOK 9m to SpareBank 1 SMN before his arrest. The net amount taken out of SpareBank 1 SMN is accordingly just over NOK 66m. NOK 15m was returned to the bank from the police after being placed in safekeeping. SpareBank 1 SMN has insurance cover against economic crime, including embezzlement. The claim against the insurer is a contingent asset under IAS 37 which is not recognised as income since the standard requires an absence of all uncertainty as to the claim settlement before recognition can take place. The insurance policy carries a deductible of NOK 5m.
Over the course of the first quarter the banks carried out a comprehensive merger project, and a successful legal merger was completed on 2 May. SpareBank 1 Søre Sunnmøre is now a part of SpareBank 1 SMN, and work on achieving business gains of the merger is under way.
The first quarter net profit was NOK 778m (698m), and return on equity was 13.0 per cent (12.6 per cent). The net profit is NOK 10m better than in the fourth quarter. The profit growth from last year's fourth quarter is largely due to increased net interest income and reduced losses.
Earnings per equity certificate (EC) were NOK 3.51 (3.20) and the EC's book value was NOK 105.63 (99.55). In the fourth quarter 2022 earnings per EC were NOK 3.53.
Net interest income totalled NOK 1,035m (759m), which is NOK 73m higher than in the fourth quarter and NOK 275m better than in the same quarter last year. In the first quarter 2023 a flattening of the base rate and the interest rate increases has resulted in increased margins on loans and reduced margins on deposits. Increased lending and deposit volumes, along with higher return on equity, have strengthened net interest income.
Net commission and other income rose from the previous quarter by NOK 68m to NOK 541m (522m). Increased incomes from accounting services are the main reason for the growth from the fourth quarter.
The group's share of the results from ownership interests and related companies was NOK 125m (62m). In the fourth quarter the profit share was NOK 195m. The decline from the fourth quarter is mainly down to a profit decline recorded by SpareBank 1 Gruppen. A positive profit performance was posted by BN Bank in which SpareBank 1 SMN holds a 35 per cent stake.
Return on financial investments (incl. dividends) was minus NOK 97m (gain of 113m) and in the fourth quarter minus NOK 33m.
Operating expenses came to NOK 728m (629m) and in the fourth quarter to NOK 646m. The first quarter 2023 accounts are debited by NOK 51m as a result of the embezzlement committed against the bank in January 2023, and NOK 15m in merger costs.
A net recovery of NOK 71m was (0m) was recorded on losses on loans and guarantees in the first quarter and a loss of NOK 19m in the fourth quarter. The first quarter saw a reversal of previous loss write-downs on offshore exposures totalling NOK 137m.
Overall lending grew by 7.0 per cent (7.9 per cent) and deposits by 8.3 per cent (11.4 per cent) in the last 12 months. In the first quarter lending growth was 1.3 per cent (2.4 per cent) and deposit growth 1.2 per cent (2.5 per cent). Growth in credit to households has slowed, and growth in SpareBank 1 SMN's mortgage lending has been on the decline, but above the credit growth to households in the past year.
As at 31 March 2023 the CET1 ratio was 18.2 per cent (18.3 per cent), a decline of 0.7 per cent from the previous quarter. The CET1 ratio target is 17.2 per cent.
Norges Bank raised its base rate to 3.00 per cent in March 2023. Market interest rates in terms of NIBOR have risen substantially, and were approximately 3.30 per cent at the end of the first quarter 2023 compared with 1.18 at the end of the first quarter 2022. The bank has raised mortgage and deposit rates in step with the changes in the base rate, most recently with effect from 1 February 2023. A further increase is announced with effect from 11 May 2023 following Norges Bank's base rate hike on 23 March.
Net interest income totalled NOK 1,035m (759m) compared with NOK 961m in the fourth quarter 2022. The increase of NOK 73m from the fourth quarter is 7.6 per cent. Average market interest rates in the fourth quarter 2022 and the first quarter 2023 were at approximately the same level. Margins on residential mortgages and loans to corporates rose, while margins on deposits fell in the quarter. Compared with the first quarter 2022, increased deposit margins, growth in lending and deposits along with higher return on equity have strengthened net interest income.
Norges Bank has revised up its forecast for the base rate, and has signalled a rate of 3.50 per cent in summer 2023.
A high proportion of multi-product customers contributes to high customer satisfaction and a diversified income flow for the group.
| Commission income (NOKm) | 1Q 23 | 4Q 22 | 1Q 22 |
|---|---|---|---|
| Payment transfers | 72 | 91 | 69 |
| Creditcard | 17 | 15 | 15 |
| Saving products | 10 | 11 | 9 |
| Insurance | 61 | 60 | 57 |
| Guarantee commission | 16 | 25 | 19 |
| Real estate agency | 105 | 94 | 94 |
| Accountancy services | 188 | 127 | 156 |
| Other commissions | 11 | 14 | 14 |
| Commissions ex SB1 Boligkreditt and SB1 Næringskreditt | 480 | 438 | 434 |
| Commissions SB1 Boligkreditt | 57 | 32 | 84 |
| Commissions SB1 Næringskreditt | 3 | 4 | 4 |
| Total commissions | 541 | 473 | 522 |
Commission income and other operating income totalled NOK 541m (522m) compared with NOK 473m in the fourth quarter 2022.
Commission income on loans sold to SpareBank 1 Boligkreditt and SpareBank 1 Næringskreditt altogether totalled NOK 60m (88m). In the fourth quarter 2022 commissions came to NOK 36m. The increase in the first quarter 2023 compared with the preceding quarter is due to higher margins on loans sold to SpareBank 1 Boligkreditt.
Other commission income totalled NOK 480m (434m) compared with NOK 438m in the fourth quarter. The increase from both the fourth quarter and first quarter of 2022 relates mainly to accounting services.
Return on financial investments in the first quarter was minus NOK 99m (111m) and in the fourth quarter minus NOK 52m. The group's shareholdings showed a capital loss of NOK 17m (gain of 137m). Financial instruments, including bonds and CDs, showed a capital loss of NOK 105m (loss of 33m) as a result of increased credit margins and interest rate turbulence. Income of NOK 23m (8m) from forex transactions refers to corporate clients' currency trading and agio on the bank's funding in foreign currencies.
| Return on financial investments (NOKm) | 1Q 23 | 4Q 22 | 1Q 22 |
|---|---|---|---|
| Capital gains/losses shares | -17 | -23 | 137 |
| Gain/(loss) on financial instruments | -105 | -55 | -33 |
| Foreign exchange gain/(loss) | 23 | 25 | 8 |
| Net return on financial instruments | -99 | -52 | 111 |
The product companies provide SpareBank 1 SMN with a broad product range and commission income along with return on invested capital. The overall profit share from the product companies and other related companies was NOK 125m (62m). In the fourth quarter the figure was NOK 195m.
| Income from investment in associated companies (NOKm) | 1Q 23 | 4Q 22 | 1Q 22 |
|---|---|---|---|
| SpareBank 1 Gruppen (19.5%)* | 34 | 128 | 13 |
| SpareBank 1 Boligkreditt (22.6%) | 33 | -1 | -5 |
| SpareBank 1 Næringskreditt (16.3%) | 2 | 2 | 0 |
| BN Bank (35.0 %) | 62 | 54 | 49 |
| SpareBank 1 Kreditt (18.0 %) | -4 | 0 | 3 |
| SpareBank 1 Betaling (20.8%) | -8 | 22 | -5 |
| SpareBank 1 Forvaltning (19.6%) | 8 | 5 | 8 |
| Other companies | -3 | -15 | -1 |
| Income from investment in associated companies | 125 | 195 | 62 |
* SpareBank 1 Gruppen has implemented IFRS 17 from 01 January 2023, comparison figures have not been reinstated but information about the effect is shown in Note 1.
The company owns 100 per cent of the shares of SpareBank 1 Forsikring, SpareBank 1 Factoring and SpareBank 1 Spleis. The company is majority owner of Fremtind Forsikring with a 65 per cent stake, and owns 50 per cent of Kredinor.
SpareBank 1 Gruppen's profit share from SpareBank 1 Gruppen was NOK 34m (13m) and in the fourth quarter 2022 NOK 128m. The group has not restated comparatives, but the effect on the group's net profit is shown in note 1.
SpareBank 1 Gruppen's post-tax profit in the first quarter 2023 was NOK 272m (289m). Of the profit of NOK 272m, NOK 176m (188m) accrues to the majority owners of SpareBank 1. Return on equity in the first quarter 2023 was 7.8 per cent (8.3 per cent).
As at 1 January 2023, a negative implementation effect on equity upon the transition to IFRS 17 and IFRS 9 was recognised in an amount of NOK 1,045, of which SpareBank 1 SMN's share is NOK 202m. The effect of IFRS 17 will be reversed over time when incomes are recognised in step with the reduction in the insurance obligation. SpareBank 1 Gruppen has restated its comparatives.
Fremtind Forsikring posted a profit of NOK 274m (293m) after tax in the first quarter 2023 and a return on equity of 12.7 per cent (13.9 per cent).
The result of insurance services was NOK 267m (420m). The result from insurance services includes incomes, IFRS 17 expenses (operating expenses and commissions), claims paid, best estimate changes, risk adjustment, loss component and changes in self-supporting arrangements and the net result of reinsurance contracts.
Net income from investments came to NOK 295m (minus 318m), NOK 613m higher than in the same period last year. Incomes are affected by a positive development in equity markets and improved interest yield following the sharp interest rate rise in 2022. Premiums for sums insured increased by NOK 374m (218m) in the first quarter, corresponding to an annual growth of 10.2 per cent (6.8 per cent).
The net insurance-related financial result was minus NOK 147m (364m). The net financial result of insurance services comprises the discounting effect on provisions, and is affected by the negative trend in the interest rate curve.
SpareBank 1 Forsikring reported a profit of NOK 44m (minus 16m) after tax and a return on equity of 4.6 per cent (minus 1.9 per cent).
The result of insurance services came to NOK 6m (30m) in the first quarter, which is a reduction of NOK 24m from the same period last year. The fall is mainly due to increased expenses related to insurance services since actual expenses from insurance services were higher than expected.
Net income from investments was NOK 646m (minus 547m), an improvement of NOK 1,193m from the previous year. The improvement is due to improved return on financial assets. Financial income related to the company's funds accrues to the company in its entirety.
Net insurance-related financial costs were minus NOK 584m (plus 501m), a reduction of NOK 1,085m compared with the same period of 2022. The negative result and the decline from last year is attributable to the portion of net incomes from investments that accrues to insurance customers.
The sum of net income from investments and the net insurance-related financial result came to NOK 62m (minus 47m), an improvement of NOK 109m from the first quarter 2022.
Kredinor is for SpareBank 1 Gruppen a joint venture with an owner stake of 50 per cent. SpareBank 1 Gruppen's share of the company's deficit was NOK 15m after tax. By the end of the quarter, portfolios worth about NOK 50m had been written down in the Kredinor group.
SpareBank 1 Factoring posted a first-quarter profit of NOK 18m (17m) after tax, and has shown a positive trend in incomes and portfolios.
SpareBank 1 Spleis recorded pre-tax profit of minus NOK 5m (minus 4m).
The company was established in 2021 to strengthen the SpareBank 1 banks' competitive power in the savings market. SpareBank 1 Kapitalforvaltning, SpareBank 1 SR Forvaltning and SpareBank 1
verdipapirservice has been merged into the parent company SpareBank 1 Forvaltning, which also own Odin Forvaltning. SpareBank 1 SMN owns 19.6 per cent of the company, and the profit share in the first quarter was NOK 8m (8m) and in the fourth quarter NOK 5m.
Capital in managed funds has grown by NOK 11bn in 2023 and amounted to NOK 106bn as at 31 March 2023, the same level as one year ago. Net new subscription in the quarter totalled NOK 1.9bn.
SpareBank 1 Boligkreditt was established by the banks making up the SpareBank 1 Alliance to draw benefit from the market for covered bonds. The banks sell well-secured residential mortgages to the company and achieve reduced funding costs.
As at 31 March 2023 the bank had sold loans totalling NOK 59.1bn (51.2bn) to SpareBank 1 Boligkreditt, corresponding to 41.3 per cent (38.0 per cent) of the bank's overall lending to retail borrowers.
The bank's ownership stake is 22.6 per cent and its share of the company's net profit was NOK 33m (minus 5m). The first quarter's high net profit is in all essentials related to reversal of unrealised capital losses on the company's own debt in the fourth quarter 2022.
SpareBank 1 Næringskreditt was established along the same lines and with the same administration as SpareBank 1 Boligkreditt. As at 31 March 2023, loans worth NOK 1.7bn (1.7bn) had been sold to SpareBank 1 Næringskreditt.
SpareBank 1 SMN's share of the profit was NOK 2m (0m). SpareBank 1 SMN holds a stake of 16.3 per cent.
SpareBank 1 SMN's share of the first quarter net profit was minus NOK 4m (gain of 3m). SpareBank 1 SMN customers' portfolio of credit cards and consumer loans totalled NOK 1,293m (1,076m) and its stake was 18.0 per cent.
In the first quarter the company recorded a deficit of NOK 22.5m (profit of 16.7m). The decline was down to increased interest expenses and losses. As at 31 March 2023 the company's overall portfolio was worth NOK 8.1bn (6.2bn). The growth is ascribable both to credit cards and repayment loans.
BN Bank offers residential mortgages and loans to commercial property and its main market is Oslo and south-eastern Norway. BN Bank showed good growth of 8.1 per cent in lending to personal customers in the last 12 months (14.4 per cent) and growth of 0.5 per cent in the first quarter (2.3 per cent). The growth in lending to corporate clients was 6.9 per cent in the last 12 months (5.0 per cent) and 0.9 per cent in the first quarter (4.2 per cent). Total outstanding loans come to NOK 57bn (53bn).
BN Bank recorded a net profit of NOK 183m (143m) in the first quarter, providing a return on equity of 13.5 per cent (11.6 per cent). Increased net interest income and reduced losses explain the profit growth. SpareBank 1 SMN's share of BN Bank's profit is NOK 62m (49m).
SpareBank 1 Betaling is the SpareBank 1 banks' parent company in Vipps AS. SpareBank 1 SMN has a 20.8 per cent stake in the company and its profit share was minus NOK 8m (minus 5m) in the first quarter. The result for the fourth quarter 2022 was affected by the merger with MobilePay by a gain of NOK 29 million.
| Operating expenses (NOKm) | 1Q 23 | 4Q 22 | 1Q 22 |
|---|---|---|---|
| Staff costs | 398 | 333 | 375 |
| IT costs | 106 | 100 | 89 |
| Marketing | 23 | 24 | 19 |
| Ordinary depreciation | 29 | 33 | 29 |
| Operating expenses, real properties | 16 | 9 | 22 |
| Purchased services | 38 | 53 | 52 |
| Merger expenses | 15 | 22 | 0 |
| Other operating expense | 104 | 73 | 44 |
| Total operating expenses | 728 | 646 | 629 |
Overall expenses in the first quarter came to NOK 728m (629m), an increase of NOK 99m compared with the same period of 2022. Overall expenses in the fourth quarter 2022 were NOK 646m. Adjusted for the costs related to the embezzlement committed against the bank in January 2023 and expenses related to the merger, the growth in costs and expenses from the first quarter 2022 was 5.3 per cent, mainly comprising growth in salaries and prices.
The subsidiaries show expense growth of NOK 19m compared with the same period of last year, with the highest growth reported by SpareBank 1 Regnskapshuset SMN. This company is carrying out a substantial change of strategy bringing increased personnel and technology costs but also substantial income growth.
The bank recorded expenses of NOK 469m (389m) and in the previous quarter NOK 416m. In the first quarter 2023 the accounts were debited by NOK 51m as a result of the embezzlement committed against the bank in January 2023. When adjusted for fraud and merger costs, growth from the first quarter 2022 was NOK 14m, corresponding to 4 per cent. The cost-income ratio was 45 per cent (43 per cent) for the group, 42 per cent (39 per cent) for the parent bank.
A net recovery of NOK 71m (0m) was recorded on losses and in the fourth quarter a loss of NOK 19m.
| Impairment losses (NOKm) | 1Q 23 | 4Q 22 | 1Q 22 |
|---|---|---|---|
| RM | 11 | 31 | -5 |
| CM | -82 | -12 | 5 |
| Total impairment losses | -71 | 19 | -0 |
A net recovery of NOK 82m was recorded on loans to corporates (loss of NOK 5m), including a net recovery of NOK 137m (net recovery of NOK 12m) in the offshore portfolio and increased losses of NOK 55m (17m) on loans to other business and industry, distributed across a wide range of customers and segments. Losses on loans to other business and industry mainly comprise model losses resulting from a higher expected interest rate level and inflation.
A strong improvement is noted in the offshore segments, customers are achieving longer contracts on better terms and conditions and increasing use is made of vessels not on contract. A number of customers have excellent debt-servicing capacity, enabling reversal of parts of the bank's loss provisioning on those customers. Scenario weights in the offshore portfolio were normalised in the first quarter 2023 and are on a par with business and industry in general.
Losses of NOK 11m were recorded on retail customers (recovery of 5m).
Overall impairment write-downs on loans and guarantees total NOK 1,101m (1,351m).
Problem loans (Stage 3) total NOK 2,065m (3,243m) corresponding to 0.96 per cent (1.62 per cent) of gross outstanding loans, including loans sold to SpareBank 1 Boligkreditt and SpareBank 1 Næringskreditt. Most of the decline from last year is due to improved market conditions in the offshore segment with an appurtenant reduction in problem loans.
The bank's total assets were NOK 228bn (207bn), having risen as a result of higher lending and higher liquidity holdings.
Loans totalling NOK 61bn (53bn) have been sold from SpareBank 1 SMN to SpareBank 1 Boligkreditt and to SpareBank 1 Næringskreditt. These loans do not figure as loans in the bank's balance sheet. The comments covering lending growth take into account loans sold.
Total outstanding loans rose in the last 12 months by NOK 14.0bn (14.6bn), corresponding to 7.0 per cent (7.9 per cent), and stood at NOK 214.0bn (200.0bn) at quarter-end. Growth in the first quarter was 1.3 per cent (2.4 per cent).
Good, albeit somewhat diminishing, growth is noted in lending to personal customers. Growth has over time exceeded credit growth to households (C2), and the group is strengthening its market position. The growth in lending to corporate clients is distributed across a number of segments, and industry and single name concentrations are avoided.
(For distribution by sector, see note 5).
Customer deposits rose in the last 12 months by NOK 9.5bn (11.7bn) to NOK 123.5bn (114.1bn), corresponding to a growth of 8.3 per cent (11.4 per cent). Growth in the first quarter 1.2 per cent (2.5 per cent).
Personal deposits rose by NOK 3.4bn (4.3bn) to NOK 48.9bn (45.6bn), corresponding to 7.4 per cent (10.3 per cent). In the fourth quarter 1.3 per cent (2.2 per cent)
Deposit growth has been very high due to the pandemic, but normalised in 2022. Deposits are an important funding source for the bank, and the bank has drawn up plans to strengthen the growth in personal deposits.
(For distribution by sector, see note 9).
The Personal Banking Division and EiendomsMegler 1 Midt-Norge offer a broad range of financial services. Improved coordination between the bank and the real estate agency business affords customers a better service offering and contributes to increased growth and profitability.
| Result before tax (NOKm) | 1Q 23 | 4Q 22 | 1Q 22 |
|---|---|---|---|
| Personal market | 372 | 371 | 274 |
| EiendomsMegler 1 | 18 | -6 | 14 |
| Total | 390 | 365 | 287 |
The Personal Banking Division achieved a pre-tax profit of NOK 372m (274m), and NOK 371m in the previous quarter.
| Profit and loss account (NOKm) | 1Q 23 | 4Q 22 | 1Q 22 |
|---|---|---|---|
| Net interest | 524 | 476 | 313 |
| Comission income and other income | 181 | 176 | 202 |
| Total income | 706 | 651 | 515 |
| Total operating expenses | 325 | 253 | 248 |
| Ordinary operating profit | 381 | 398 | 266 |
| Loss on loans, guarantees etc. | 9 | 27 | -7 |
| Result before tax including held for sale | 372 | 371 | 274 |
| Balance | |||
| Loans and advances to customers | 148,294 | 147,426 | 139,759 |
| Adv.of this sold to SB1 Boligkreditt and SB1 Næringskreditt | -59,306 | -57,134 | -51,477 |
| Deposits to customers | 55,948 | 54,930 | 52,321 |
| Key figures | |||
| Return on equity per quarter 1) | 15.8 % | 16.2 % | 13.0 % |
| Lending margin | 0.93 % | 0.39 % | 1.04 % |
| Deposit margin | 1.82 % | 2.19 % | 0.73 % |
Loans granted by the Personal Banking Division total NOK 148bn (140bn) and deposits NOK 56bn (52bn). These are loans to and deposits from wage earners, agricultural customers and sole proprietorships.
Operating income posted by the division totalled NOK 706m (515m) and NOK 651m in the previous quarter. Net interest income accounted for NOK 524m (313m) and NOK 476m in the fourth quarter. Commission income totalled NOK 181m (202m) and NOK 176m in the previous quarter. Net interest income has risen compared with the first quarter 2022 as a result of growth and a strengthened deposit margin, while lower margins on loans have weakened net interest income and commissions from SpareBank 1 Boligkreditt. A higher central bank base rate is the driver behind the margin changes. NIBOR stabilised in the first quarter 2023 and increases in lending rates had a positive effect.
The lending margin was 0.93 per cent (1.04 per cent) and in the fourth quarter 2022 0.39 per cent. The deposit margin was 1.82 per cent (0.73 per cent) and 2.19 per cent in the previous quarter.
Lending to and deposits from personal customers grew by 6.1 per cent (7.3 per cent) and 6.9 per cent (8.0 per cent) respectively in the last 12 months. In the first quarter growth in lending and deposits was 0.6 per cent (1.5 per cent) and 1.9 per cent (3.2 per cent) respectively.
Lending to personal customers consistently carries low risk, as reflected in continued low losses. The loan portfolio is largely secured by residential property. Net loan losses of NOK 9m (net recovery of 7m) were recorded in the first quarter.
Eiendomsmegler 1 Midt-Norge is the market leader in Trøndelag and in Møre and Romsdal.
| EiendomsMegler 1 Midt-Norge (87%) | 1Q 23 | 4Q 22 | 1Q 22 |
|---|---|---|---|
| Total income | 107 | 93 | 95 |
| Total operating expenses | 89 | 100 | 81 |
| Result before tax (NOKm) | 18 | -6 | 14 |
| Operating margin | 17 % | -7 % | 15 % |
Operating income came to NOK 107m in the fourth quarter (95m) and operating expenses ended at NOK 89m (81m), bringing a pre-tax profit of NOK 18m (14m). 1,587 properties were sold in the first quarter compared with 1,606 in the same period of 2022. The company continues to note good activity in the housing market despite higher interest rates and high inflation. However, much uncertainty attaches to how the market will absorb an even higher interest rate level after the summer.
Higher earnings per property sale compared with last year along with a stable cost trend contribute to an increase in the operating margin, from 15 per cent in the first quarter 2022 to 17 per cent in the first quarter 2023. The company's market share at 31 March 2023 was 38 per cent (37 per cent).
The corporate business at SpareBank 1 SMN consists of the bank's corporate banking arm, SpareBank 1 Regnskapshuset SMN and SpareBank 1 Finans Midt-Norge. These business lines offer business and industry a complete range of accounting, banking and capital market services. Coordination between the business lines has a high priority and strengthens the group's position in the business sector.
| Result before tax (NOKm) | 1Q 23 | 4Q 22 | 1Q 22 |
|---|---|---|---|
| Corporate banking | 500 | 443 | 277 |
| SpareBank 1 Regnskapshuset SMN (88.7%) | 44 | 20 | 23 |
| SpareBank 1 Finans Midt-Norge (54.3%) | 53 | 51 | 53 |
| Total corporate customers | 597 | 514 | 353 |
The Corporate Banking Division achieved a pre-tax profit of NOK 500m (NOK 277m) and NOK 443m in the fourth quarter 2022. Lower losses strengthen the profit performance.
| 1Q 23 | 4Q 22 | 1Q 22 |
|---|---|---|
| 474 | 458 | 330 |
| 63 | 85 | 74 |
| 541 | 544 | 404 |
| 127 | 119 | 124 |
| 413 | 425 | 280 |
| -86 | -19 | 3 |
| 500 | 443 | 277 |
| 53,245 | 51,822 | 49,764 |
| -1,481 | -1,481 | -1,465 |
| 63,644 | 62,920 | 59,541 |
| 28.4 % | 26.0 % | 15.4 % |
| 2.64 % | 2.23 % | 2.38 % |
| 0.27 % | 0.47 % | -0.05 % |
Outstanding loans to the bank's corporate customers total NOK 53bn (50bn) and deposits total NOK 64bn (60bn). This is a diversified portfolio of loans to and deposits from corporate clients in Trøndelag and in Møre and Romsdal.
Operating income came to NOK 541m (404m) and NOK 544m in the fourth quarter. Net interest income was NOK 474m (330m) and NOK 458m in the fourth quarter. Commission income totalled NOK 67m (74m) compared with NOK 85m in the fourth quarter. A levelling out of NIBOR combined with a lag in interest rate changes brought increased lending margins in the quarter, but reduced deposit margins. Increased loan and deposit volumes have strengthened the earnings base.
The lending margin was 2.64 per cent (2.38 per cent) and the deposit margin was 0.27 per cent (minus 0.05 per cent). Lending growth in the last 12 months was 7.0 per cent (7.7 per cent) while deposits rose 6.9 per cent (11.9 per cent). Lending growth in the quarter was 2.7 per cent (4.6 per cent) and deposit growth was 1.2 per cent (minus 0.1 per cent).
A net recovery of NOK 86m was recorded on loan losses to the bank's corporate clients (loss of 3m) and a net recovery of NOK 19m on losses in the third quarter. Market conditions in the offshore industry have improved markedly enabling a reversal of earlier impairment write-downs worth NOK 137m.
SpareBank 1 SMN and SpareBank 1 Regnskapshuset SMN each have a large proportion of businesses in the market area as customers. Development of the customer offering aims to ensure that customers see the value of being a customer of both the bank and Regnskapshuset.
SpareBank 1 Regnskapshuset SMN posted a pre-tax profit of NOK 44m (23m) and an operating margin of 22 per cent (14 per cent). Operating income was NOK 202m (166m) and expenses were NOK 158m (143m).
| SpareBank 1 Regnskapshuset SMN (88.7%) | 1Q 23 | 4Q 22 | 1Q 22 |
|---|---|---|---|
| Total income | 202 | 139 | 166 |
| Total operating expenses | 158 | 119 | 143 |
| Result before tax (NOKm) | 44 | 20 | 23 |
| Operating margin | 22 % | 15 % | 14 % |
The company is implementing a restructuring programme entitled "from accountant to accounting consultant". The object is to take into use modern technology to boost the efficiency of accounting and
reporting services for customers, while at the same time retaining the role as the customer's closest sparring partner. The programme develops advisers and launches new accounting advisory services in the field of taxes and duties, corporate transactions, IT solutions, HR services and Sustainability.
In the sustainability field a strong increase is noted in demand from customers for assistance in empowering businesses for the green transition.
The company has seen a very positive development since the restructuring programme was launched in 2021. Figures for the first quarter 2023 show turnover growth of 21 per cent from last year, of which close to 17 per cent is organic. The company notes a substantial net customer influx of more than 200 new customers in the quarter.
Income from advisory services rose as much as 30 per cent from the first quarter 2022, showing the company's ability to deliver relevant advisory services. In tandem with the development of advisors, the business model is also being revamped through the introduction of subscriptions to replace traditional time recording.
In total the company delivered an operating margin of 22 per cent (14 per cent) for the quarter – putting it in a class of its own in the accounting industry. The company's market share in Trøndelag, Møre and Romsdal and Gudbrandsdal is about 25 per cent.
SpareBank 1 Finans Midt-Norge delivered a pre-tax profit of NOK 53m (47m). The company's focal areas are leasing and invoice factoring services to businesses and car loans to personal customers.
| SpareBank 1 Finans Midt-Norge (54.3%) | 1Q 23 | 4Q 22 | 1Q 22 |
|---|---|---|---|
| Total income | 90 | 87 | 80 |
| Total operating expenses | 30 | 25 | 28 |
| Loss on loans, guarantees etc. | 7 | 11 | 4 |
| Result before tax (NOKm) | 53 | 51 | 47 |
The company's incomes altogether totalled NOK 90m (80m). Costs in the first quarter 2023 were NOK 30m (28m). Losses amounted to NOK 7m (4m).
The company has leasing agreements with and loans to corporate customers worth NOK 5.3bn (4.3bn) and car loans worth NOK 7.1bn (6.4bn). Growth in the last 12 months was 19.6 per cent and 11.5 per cent respectively. Invoice factoring is an important product for the company and invoices worth NOK 167m (154m) were purchased in the first quarter 2023.
SpareBank 1 Finans Midt-Norge and other SpareBank 1 banks own 47 per cent of the shares of the car subscription company Fleks. Fleks offers flexible car subscription solutions. Along with electrification of the car population, the car subscription system makes for reduced emissions. Fleks currently has 3,000 cars and is the market leader in Norway. SpareBank 1 Finans Midt-Norge recognised a profit share from Flex of minus NOK 7m in the first quarter (minus 6m).
SpareBank 1 Markets is headquartered in Oslo and has offices in Trondheim, Ålesund and Stavanger. It employs 164 FTEs.
SpareBank 1 Markets' pre-tax profit was NOK 38m (39m).
Activity levels in the respective business lines were high in the quarter. The market in particular for advisory services and to some extent for management of stock issues has picked up compared with the same quarter of 2022, but was somewhat quieter than in the previous quarter. This has provided good incomes for Investment Banking but to a lesser degree for stockbroking. Earnings from the fixed income and forex business and debt capital have been high. Overall income came to NOK 194m (176m). Operating expenses totalled NOK 125m (99m).
SpareBank 1 Markets has developed into one of the largest Norwegian brokerages with a strong position in several product areas, and is the leading capital market unit in SpareBank 1 SMN's market area. The announced amalgamation of the capital market units of SpareBank 1 Markets, SpareBank 1 SR-Bank and SpareBank 1 Nord-Norge is under preparation and is expected to contribute to higher and more diversified earnings. The merger is currently scheduled to take place in the second quarter 2023, but this is dependent on the government authorities' process. SpareBank 1 Markets has been classified as held for sale, see further description in note 2.
The company owns shares in regional businesses. The portfolio is managed together with other long-term shareholdings of the bank and will be scaled down. The company's shares are worth NOK 560m (686m) as at 31 March 2023.
The pre-tax result was minus NOK 31m (net profit of 132m) and in the previous quarter minus NOK 4m. The deficit is mainly down to unrealised losses on the company's shareholdings.
Price growth remains high, and base rates have been raised further both abroad and in Norway. The Norwegian currency has depreciated. In the first quarter 2023, problems at some banks in the USA and Switzerland have led to substantial movements in financial markets. Credit spreads have narrowed somewhat after the fluctuations in the wake of the banking turbulence.
The bank has a conservative liquidity strategy, with liquidity reserves that ensure the bank's survival for 12 months of ordinary operation without need of fresh external funding.
The bank is required to maintain sufficient liquidity buffers to withstand periods of limited access to market funding. The liquidity coverage ratio (LCR) measures the size of banks' liquid assets relative to net liquidity outflow 30 days ahead given a stressed situation.
The LCR was 194 per cent as at 31 March 2023 (155 per cent). The requirement is 100 per cent.
The group's deposit-to-loan ratio at 31 March 2023 was 58 per cent (57 per cent).
The bank's funding sources and products are amply diversified.
SpareBank 1 Boligkreditt and Næringskreditt are the bank's most important funding sources, and loans totalling NOK 61bn (53bn) had been sold to these mortgage companies as at 31 March 2023.
In the first quarter the bank raised new senior non-preferred debt (MREL) in Japanese yen at three years' maturity, equivalent to NOK 760m.
As at 31 March 2023 SpareBank 1 SMN held NOK 7.9bn in senior non-preferred debt (MREL), SpareBank 1 SMN will meet the MREL requirements by the end of 2023.
The bank has a rating of A1 (positive outlook) with Moody's.
The CET1 ratio at 31 March 2023 was 18.2 per cent (18.3 per cent) compared with 18.9 per cent as at 31 December 2022. The CET1 requirement is 15.9 per cent, including combined buffer requirements and a Pillar 2 requirement of 1.9 per cent. Finanstilsynet set a new Pillar 2 requirement for SpareBank 1 SMN on 30 April 2022. The 1.9 per cent rate is unchanged, but the bank is subject to a provisional add-on of 0.7 per cent to its Pillar 2 requirement until its application for adjustment of IRB models has been processed. The provisional add-on of 0.7 per cent is not included in the bank's long-term target.
Finanstilsynet has resolved that SpareBank 1 SMN is to have a Pillar 2 guidance of 1.25 per cent over and above overall capital requirements. This brings the bank's long-term CET1 ratio target to 17.2 per cent.
The CET1 ratio shows a 0.7 percentage point decline in the first quarter. Risk weighted assets grew 4.4 per cent in the first quarter. This is a result of lending growth, an increased liquidity portfolio, increased customer positions linked to derivatives, and a higher capital requirement related to CVA. In addition, BN Bank has been instructed by Finanstilsynet to increase security margins in its corporate portfolio.
A good profit performance has in isolation strengthened CET1 capital, but implementation of IFRS 17 at SpareBank 1 Forsikring has adversely affected equity capital. This is partially offset by a reduced deduction on the bank's holding in SpareBank 1 Gruppen. CET1 capital rose 0.9 per cent in the first quarter. A payout ratio of 50 per cent of the group' net profit for 2023 is assumed.
A leverage ratio of 6.9 per cent (7.0 per cent) shows the bank to be very solid. See note 4 for further details.
In the first quarter SpareBank 1 SMN published its consolidated carbon account as part of its annual report for 2022. The carbon account contains for the first time the group's estimated greenhouse gas emissions, both from its own operations and from the loan portfolio. Greenhouse gas emissions from its own operations are estimated using the Klimakost model, whereas portfolio emissions are estimated using the PCAF framework. The carbon account is our best basis for developing and updating the group's action plans towards net zero emissions by 2050.
Follow-up and management of sustainability are integrated into the group's corporate governance, at the same time as the group's competencies and capacity in this area are being strengthened. Important tasks for Personal Banking and Corporate Banking in the period ahead are to prepare and implement transition plans for households and industries. These will be significant contributions to reaching the group's overarching goal of zero emissions in 2050. At the same time all reporting requirements must be met, and work has started on identifying and structuring data needed in order to satisfy regulatory requirements and to meet the need for management information in the ESG field.
The sustainability strategy stands firm and we will in the period ahead intensify efforts to stimulate a sustainable development of Trøndelag, Møre and Romsdal, Sunnmøre and Fjordane.
The market price of the equity certificate (EC) as at 31 March 2023 was NOK 123.60 (141.20), and the book value per EC was NOK 105.63 (99.55). Earnings per EC were NOK 3.51 (3.20). In 2023 a cash dividend of NOK 6,50 (NOK 7.50) per EC has been paid for the year 2022.
The Price / Income ratio was 8.79 (11.05) and the Price / Book ratio was 1.17 (1.42).
SpareBank 1 SMN delivered a good profit performance in the first quarter 2023, and achieved its goals in terms of profitability and capitalisation. The business lines performed extremely well and the group's market position is strengthened even though the growth in residential mortgage lending is subsiding.
Uncertainty in the economy persists with an expectation of further base rate increases by Norges Bank and high price growth. Households' purchasing power is impaired and a reduction in private consumption is expected in 2023. Increased pessimism is noted in business and industry, although there wide variations between sectors. Unemployment nonetheless remains extremely low in Mid Norway and activity levels in the Norwegian economy are high. At the same time as there are signs that inflation is levelling off.
Increased earnings and the prospect of strengthened market balance in the offshore segment have provided a basis for reversal of earlier loss provisions. At the same time the bank is increasing its provision for losses on loans to business and industry in general due to higher expected interest rates and inflation. The risk trend in SpareBank 1 SMN's loan portfolio is satisfactory. Increased risk is noted in commercial property and construction, but as yet no significant increase in defaults is in evidence.
Activity in the housing market continues at a high level. However, uncertainty attaches to the market's ability to absorb an even higher interest rate level after the summer. More customers are in dialogue with the bank for financial advice, and the number of enquiries about mortgage payment holidays has risen somewhat, although no increase is seen in defaults. The bank is well equipped with highly competent advisers who are close to the customer and are present throughout Trøndelag and Møre and Romsdal.
SpareBank 1 SMN aspires to be among the best performers in the Nordic region and aims for a return on equity of 13 per cent, and achieving the group's strategy objectives has the board of directors' close attention.
The growth ambition will be realised through a prioritisation of segments and industries in the group's business lines, synergies between the real estate business, bank and accounting business along with an increased focus on deposits and saving. Competitive pricing of all products and services in the group is important in the implementation of the strategy. The merger with SpareBank 1 Søre Sunnmøre has reached completion, and the group's market position will be further strengthened through profitable growth and expanded market shares in Sunnmøre and Fjordane.
Sustainability is being integrated into all the group's business lines. This ensures that the group will meet the challenges to which the stakeholders have drawn attention in the group's materiality analysis. Transition plans at industry level are being drawn up and implemented with a view to attaining the goal of net zero emissions in 2050.
Exploiting the strength of SpareBank 1 Alliance is an important strategic foundation for SpareBank 1 SMN. Highest on the agenda in 2023 are simplification of loan approval processes in the personal market and
corporate market alike, setting the stage for improving customer service centres' efficiency, and establishing a shared data platform for increased use of data in and insight into business processes.
The board of directors is well pleased with the work done to implement the group strategy and with results achieved in the first quarter of 2023. Although the economic prospects are uncertain, 2023 is expected to be another good year for SpareBank 1 SMN.
Trondheim, 9. May 2023 The Board of Directors of SpareBank 1 SMN
(chair) (deputy chair)
Kjell Bjordal Christian Stav Mette Kamsvåg
Freddy Aursø Tonje Eskeland Foss Ingrid Finboe Svendsen
Kristian Sætre Christina Straub Inge Lindseth
(employee rep.) (employee rep.)
Jan-Frode Janson (Group CEO)
| Parent bank | Group | ||||||
|---|---|---|---|---|---|---|---|
| Jan - Mar | Jan - Mar | ||||||
| 2022 | 2022 | 2023 (NOKm) | Note | 2023 | 2022 | 2022 | |
| 5,128 | 991 | 1,889 Interest income effective interest method | 2,014 | 1,104 | 5,596 | ||
| 724 | 124 | 354 Other interest income | 353 | 123 | 720 | ||
| 2,972 | 467 | 1,331 Interest expenses | 1,332 | 468 | 2,977 | ||
| 2,880 | 648 | 911 Net interest | 10 | 1,035 | 759 | 3,339 | |
| 1,192 | 299 | 281 Commission income | 341 | 358 | 1,446 | ||
| 90 | 20 | 26 Commission expenses | 50 | 42 | 186 | ||
| 55 | 17 | 16 Other operating income | 249 | 206 | 781 | ||
| 1,156 | 296 | 271 Commission income and other income | 11 | 541 | 522 | 2,042 | |
| 677 | 63 | 4 Dividends | 2 | 2 | 33 | ||
| - | - | - Income from investment in related companies | 3 | 125 | 62 | 442 | |
| -123 | -19 | -66 Net return on financial investments | 13 | -99 | 111 | -94 | |
| 554 | 43 | -62 Net return on financial investments | 28 | 175 | 380 | ||
| 4,590 | 988 | 1,120 Total income | 1,604 | 1,456 | 5,760 | ||
| 661 | 181 | 189 Staff costs | 398 | 375 | 1,406 | ||
| 841 | 208 | 280 Other operating expenses | 12 | 330 | 255 | 1,038 | |
| 1,502 | 389 | 469 Total operating expenses | 728 | 629 | 2,443 | ||
| 3,088 | 599 | 651 Result before losses | 875 | 827 | 3,317 | ||
| -37 | -4 | -77 Loss on loans, guarantees etc. | 6,7 | -71 | -0 | -7 | |
| 3,125 | 603 | 728 Result before tax | 3 | 946 | 827 | 3,324 | |
| 631 | 144 | 176 Tax charge | 206 | 166 | 718 | ||
| - | - | - Result investment held for sale, after tax | 2, 3 | 38 | 37 | 179 | |
| 2,494 | 459 | 552 Net profit | 778 | 698 | 2,785 | ||
| 60 | 20 | 33 Attributable to additional Tier 1 Capital holders | 34 | 21 | 63 | ||
| 1,557 | 280 | 332 Attributable to Equity capital certificate holders | 455 | 413 | 1,658 | ||
| 877 | 158 | 187 Attributable to the saving bank reserve | 256 | 233 | 934 | ||
| Attributable to non-controlling interests | 33 | 30 | 130 | ||||
| 2,494 | 459 | 552 Net profit | 778 | 698 | 2,785 | ||
| Profit/diluted profit per ECC | 19 | 3.51 | 3.20 | 12.82 |
| Parent bank | Group | ||||
|---|---|---|---|---|---|
| Jan - Mar | Jan - Mar | ||||
| 2022 | 2022 | 2023 (NOKm) | 2023 | 2022 | 2022 |
| 2,494 | 459 | 552 Net profit | 778 | 698 | 2,785 |
| Items that will not be reclassified to profit/loss | |||||
| 177 | - | - Actuarial gains and losses pensions | - | - | 177 |
| -44 | - | - Tax | - | - | -44 |
| - | - | - Share of other comprehensive income of associates and joint venture | 1 | 1 | 4 |
| 133 | - | - Total | 1 | 1 | 137 |
| Items that will be reclassified to profit/loss | |||||
| 9 | - | - Fair value change on financial assets through other comprehensive income | - | - | 9 |
| - | -1 | 5 Value changes on loans measured at fair value | 5 | -1 | - |
| - | - | - Share of other comprehensive income of associates and joint venture | -16 | 75 | 113 |
| - | - | - Tax | - | - | - |
| 9 | -1 | 5 Total | -11 | 73 | 122 |
| 142 | -1 | 5 Net other comprehensive income | -10 | 74 | 259 |
| 2,636 | 458 | 558 Total comprehensive income | 768 | 772 | 3,044 |
| 60 | 20 | 33 Attributable to additional Tier 1 Capital holders | 34 | 21 | 63 |
| 1,647 | 280 | 335 Attributable to Equity capital certificate holders | 448 | 461 | 1,823 |
| 929 | 158 | 189 Attributable to the saving bank reserve | 253 | 260 | 1,028 |
| Attributable to non-controlling interests | 33 | 30 | 130 | ||
| 2,636 | 458 | 558 Total comprehensive Income | 768 | 772 | 3,044 |
| Parent bank | Group | ||||||
|---|---|---|---|---|---|---|---|
| 31 Dec | 31 Mar | 31 Mar | 31 Mar | 31 Mar | 31 Dec | ||
| 2022 | 2022 | 2023 (NOKm) | Note | 2023 | 2022 | 2022 | |
| 1,171 | 1,190 | 1,241 Cash and receivables from central banks | 1,241 | 1,190 | 1,171 | ||
| 21,972 | 18,214 | 19,259 Deposits with and loans to credit institutions | 8,630 | 9,456 | 11,663 | ||
| 139,550 | 135,306 | 139,845 Net loans to and receivables from customers | 5 | 152,208 | 145,773 | 151,549 | |
| 38,072 | 32,013 | 44,329 Fixed-income CDs and bonds | 17 | 44,330 | 32,014 | 38,073 | |
| 6,804 | 4,321 | 7,073 Derivatives | 17 | 7,073 | 4,077 | 6,804 | |
| 417 | 386 | 429 Shares, units and other equity interests | 17 | 826 | 2,635 | 840 | |
| 5,063 | 4,631 | 5,069 Investment in related companies | 7,913 | 7,534 | 7,873 | ||
| 2,379 | 2,374 | 1,924 Investment in group companies | - | - | - | ||
| 98 | 98 | 554 Investment held for sale | 2 | 1,509 | 112 | 1,919 | |
| 467 | 457 | 467 Intangible assets | 670 | 854 | 663 | ||
| 2,092 | 1,851 | 3,246 Other assets | 14 | 3,808 | 3,384 | 2,555 | |
| 218,085 | 200,839 | 223,434 Total assets | 228,207 | 207,027 | 223,110 | ||
| 14,636 | 18,598 | 15,875 Deposits from credit institutions | 15,875 | 19,468 | 14,636 | ||
| 122,699 | 114,717 | 124,202 Deposits from and debt to customers | 9 | 123,529 | 114,053 | 122,010 | |
| 47,474 | 37,093 | 49,361 Debt created by issue of securities | 16 | 49,361 | 37,093 | 47,474 | |
| 8,307 | 5,164 | 7,792 Derivatives | 17 | 7,792 | 5,147 | 8,307 | |
| 2,067 | 5,239 | 4,169 Other liabilities | 15 | 4,880 | 7,030 | 2,725 | |
| - | - | - Investment held for sale | 2 | 620 | 2 | 1,093 | |
| 2,015 | 1,753 | 2,015 Subordinated loan capital | 16 | 2,058 | 1,796 | 2,058 | |
| 197,199 | 182,564 | 203,414 Total liabilities | 204,115 | 184,588 | 198,303 | ||
| 2,597 | 2,597 | 2,597 Equity capital certificates | 2,597 | 2,597 | 2,597 | ||
| -0 | -0 | -0 Own holding of ECCs | -8 | -9 | -11 | ||
| 895 | 895 | 895 Premium fund | 895 | 895 | 895 | ||
| 7,877 | 7,007 | 7,877 Dividend equalisation fund | 7,838 | 6,974 | 7,828 | ||
| 840 | - | - Recommended dividends | - | - | 840 | ||
| 474 | - | - Provision for gifts | - | - | 474 | ||
| 6,408 | 5,918 | 6,408 Ownerless capital | 6,408 | 5,918 | 6,408 | ||
| 70 | 171 | 70 Unrealised gains reserve | 70 | 171 | 70 | ||
| (0) | -1 | 5 Other equity capital | 2,825 | 2,919 | 2,940 | ||
| 1,726 | 1,230 | 1,617 Additional Tier 1 Capital | 1,659 | 1,271 | 1,769 | ||
| 459 | 552 Profit for the period | 778 | 698 | ||||
| Non-controlling interests | 1,031 | 1,005 | 997 | ||||
| 20,887 | 18,275 | 20,021 Total equity capital | 24,092 | 22,439 | 24,807 | ||
| 218,085 | 200,839 | 223,434 Total liabilities and equity | 228,207 | 207,027 | 223,110 |
| Parent bank | Group | |||||
|---|---|---|---|---|---|---|
| Jan - Mar | Jan - Dec | |||||
| 2022 | 2022 | 2023 (NOKm) | 2023 | 2022 | 2022 | |
| 2,494 | 459 | 552 Net profit | 778 | 698 | 2,785 | |
| 77 | 19 | 23 Depreciations and write-downs on fixed assets | 29 | 29 | 117 | |
| -37 | -4 | -77 Losses on loans and guarantees | -71 | -0 | -7 | |
| -324 | - | - | Adjustments for undistributed profits of related companies |
-125 | -62 | -443 |
| -2,420 | -1,769 | 2,233 Other adjustments | 2,265 | -1,889 | -2,436 | |
| -210 | -1,295 | 2,730 Net cash increase from ordinary operations | 2,876 | -1,224 | 16 | |
| -4,626 | -1,881 | -1,374 Decrease/(increase) other receivables | -1,442 | -2,145 | -4,193 | |
| 5,155 | 5,048 | 1,587 Increase/(decrease) short term debt | 1,167 | 5,052 | 5,136 | |
| -3,739 | 463 | -212 Decrease/(increase) loans to customers | -583 | 116 | -5,643 | |
| -8,782 | -5,024 | 2,713 Decrease/(increase) loans credit institutions | 3,033 | -4,751 | -6,959 | |
| 10,672 | 2,689 | 1,502 Increase/(decrease) deposits to customers | 1,519 | 2,767 | 10,724 | |
| 294 | 4,257 | 1,239 Increase/(decrease) debt to credit institutions | 1,239 | 4,404 | -429 | |
| -7,310 | -1,251 | -6,257 Increase/(decrease) in short term investments | -6,257 | -1,252 | -7,311 | |
| - | - | - Increase/(decrease) in shares held for trading | - | - | 1,821 | |
| -8,546 | 3,006 | 1,928 A) Net cash flow from operations | 1,552 | 2,966 | -6,837 | |
| -71 | -36 | -71 Increase in tangible fixed assets | -116 | -59 | -89 | |
| -18 | - | - Proceeds from sales of property, plant and equipment | - | - | 276 | |
| - | - | - | Cash flows from losing control of subsidiaries or other businesses |
- | - | - |
| -5 | - | - | Cash flows used in obtaining control of subsidiaries or | 410 | 41 | -1,815 |
| 324 | - | - | other businesses Dividends received from investments in related |
0 | - | 324 |
| companies | ||||||
| 6 | 2 | 23 Other cash receipts from sales of interests in associates and joint ventures |
23 | 2 | 6 | |
| -479 | -43 | -26 Other cash payments to acquire interests in associates and joint ventures |
-26 | -43 | -492 | |
| 813 | 138 | 706 Other cash receipts from sales of equity instruments of other entities |
707 | 170 | 849 | |
| -835 | -122 | -698 Other cash payments to acquire equity instruments of other entities |
-700 | -124 | -846 | |
| -265 | -59 | -65 B) Net cash flow from investments | 298 | -12 | -1,788 | |
| 1,000 | - | - Increase in subordinated loan capital | - | - | 1,000 | |
| -750 | - | - Decrease in subordinated loan capital | - | - | -750 | |
| -0 | -0 | -0 Purchase of treasury shares | - | -0 | -21 | |
| - | - | - Proceeds from sale or issue of treasury shares | 13 | - | - | |
| -970 | -970 | -840 Dividend cleared | -840 | -970 | -970 | |
| - | - | - Dividends paid to non-controlling interests | - | -7 | -162 | |
| -547 | -547 | -474 Disbursed from gift fund | -474 | -547 | -547 | |
| - | - | - Additional Tier 1 capital issued | - | - | - | |
| 476 | - | -76 Repayments of Additional Tier 1 Capital | -76 | - | 476 | |
| -60 | -20 | -33 Interest payments Additional Tier 1 Capital | -34 | -21 | -63 | |
| 16,194 | 3,380 | 857 Increase in other long term loans | 857 | 3,380 | 16,194 | |
| -6,613 | -4,851 | -1,227 Decrease in other long term loans | -1,227 | -4,851 | -6,613 | |
| 8,729 | -3,009 | -1,793 C) Net cash flow from financial activities | -1,781 | -3,017 | 8,544 | |
| A) + B) + C) Net changes in cash and cash | ||||||
| -81 | -62 | 70 | equivalents | 70 | -62 | -81 |
| 1,252 | 1,252 | 1,171 Cash and cash equivalents at 1.1 | 1,171 | 1,252 | 1,252 | |
| 1,171 | 1,190 | 1,241 Cash and cash equivalents at end of quarter | 1,241 | 1,190 | 1,171 | |
| -81 | -62 | 70 Net changes in cash and cash equivalents | 70 | -62 | -81 |
| Parent Bank | Issued equity | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| EC | Premium | Owner less |
Equali sation |
Dividend | Un realised gains |
Other | Additional Tier 1 |
Total | |
| (NOKm) | capital | fund | capital | fund | and gifts | reserve | equity | Capital | equity |
| Equity at 1 January 2022 | 2,597 | 895 | 5,918 | 7,007 | 1,517 | 171 | - | 1,250 | 19,356 |
| Net profit | - | - | 440 | 781 | 1,314 | -101 | - | 60 | 2,494 |
| Other comprehensive income | |||||||||
| Financial assets through OCI | - | - | - | - | - | - | 9 | - | 9 |
| Actuarial gains (losses), pensions |
- | - | - | - | - | - | 133 | - | 133 |
| Other comprehensive income | - | - | - | - | - | - | 142 | - | 142 |
| Total comprehensive income | - | - | 440 | 781 | 1,314 | -101 | 142 | 60 | 2,636 |
| Transactions with owners | |||||||||
| Dividend declared for 2021 | - | - | - | - | -970 | - | - | - | -970 |
| To be disbursed from gift fund | - | - | - | - | -547 | - | - | - | -547 |
| Additional Tier 1 Capital | - | - | - | - | - | - | - | 476 | 476 |
| Interest payments additional | - | - | - | - | - | - | - | -60 | -60 |
| Tier 1 capital | |||||||||
| Purchase and sale of own ECCs | 0 | - | - | -0 | - | - | - | - | -0 |
| Direct recognitions in equity | - | - | 50 | 88 | - | - | -142 | - | -3 |
| Total transactions with owners | 0 | - | 50 | 88 | -1,517 | - | -142 | 416 | -1,105 |
| Equity at 31 December 2022 | 2,597 | 895 | 6,408 | 7,877 | 1,314 | 70 | 0 | 1,726 | 20,887 |
| Equity at 1 January 2023 | 2,597 | 895 | 6,408 | 7,877 | 1,314 | 70 | 0 | 1,726 | 20,887 |
| Net profit | - | - | - | - | - | - | 552 | - | 552 |
| Other comprehensive income | |||||||||
| Value changes on loans measured at fair value |
- | - | - | - | - | - | 5 | - | 5 |
| Actuarial gains (losses), | - | - | - | - | - | - | - | - | - |
| pensions | |||||||||
| Other comprehensive income | - | - | - | - | - | - | 5 | - | 5 |
| Total comprehensive income | - | - | - | - | - | - | 558 | - | 558 |
| Transactions with owners | |||||||||
| Dividend declared for 2022 | - | - | - | - | -840 | - | - | - | -840 |
| To be disbursed from gift fund | - | - | - | - | -474 | - | - | - | -474 |
| Additional Tier 1 Capital | - | - | - | - | - | - | - | - | - |
| Interest payments additional Tier 1 capital |
- | - | - | - | - | - | - | -76 | -76 |
| Purchase and sale of own ECCs | - | - | - | - | - | - | - | -33 | -33 |
| Direct recognitions in equity | -0 | - | - | -0 | - | - | - | - | -0 |
| Total transactions with owners | -0 | - | - | -0 | -1,314 | - | - | -109 | -1,423 |
| Equity at 31 March 2023 | 2,597 | 895 | 6,408 | 7,877 | - | 70 | 558 | 1,617 | 20,021 |
| Attributable to parent company equity holders | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Group | Issued equity | Earned equity | ||||||||
| (NOKm) | EC capital |
Premium fund |
Owner less capital |
Equali sation fund |
Dividend and gifts |
Un realised gains reserve |
Other equity |
Additional Tier 1 Capital |
NCI | Total equity |
| Equity at 1 January 2022 | 2,588 | 895 | 5,918 | 6,974 | 1,517 | 171 | 2,896 | 1,293 | 989 | 23,241 |
| Implementation effect of IFRS 17 in SpareBank 1 Gruppen 2) |
- | - | - | - | - | - | -234 | - | - | -234 |
| Equity at 1 January 2022 | 2,588 | 895 | 5,918 | 6,974 | 1,517 | 171 | 2,662 | 1,293 | 989 | 23,007 |
| Net profit | - | - | 440 | 781 | 1,314 | -101 | 158 | 63 | 130 | 2,785 |
| Other comprehensive income | - | - | - | - | - | - | - | - | - | - |
| Share of other comprehensive income of associates and joint ventures |
- | - | - | - | - | - | 149 | - | - | 149 |
| Value changes on loans measured at fair value |
- | - | - | - | - | - | 9 | - | - | 9 |
| Actuarial gains (losses), pensions |
- | - | - | - | - | - | 133 | - | - | 133 |
| Other comprehensive income | - | - | - | - | - | - | 291 | - | - | 291 |
| Total comprehensive income | - | - | 440 | 781 | 1,314 | -101 | 449 | 63 | 130 | 3,076 |
| Transactions with owners Dividend declared for 2021 |
- | - | - | - | -970 | - | - | - | - | -970 |
| To be disbursed from gift fund | - | - | - | - | -547 | - | - | - | - | -547 |
| Additional Tier 1 Capital issued | - | - | - | - | - | - | - | 476 | - | 476 |
| Buyback Additional Tier 1 Capital issued |
- | - | - | - | - | - | - | - | - | - |
| Interest payments additional Tier 1 capital |
- | - | - | - | - | - | - | -63 | - | -63 |
| Purchase and sale of own ECCs |
0 | - | - | -0 | - | - | - | - | - | -0 |
| Own ECC held by SB1 Markets 1) |
-2 | - | - | -16 | - | - | -2 | - | - | -21 |
| Direct recognitions in equity | - | - | 50 | 88 | - | - | -149 | - | - | -11 |
| Share of other transactions from associates and joint ventures |
- | - | - | - | - | - | -19 | - | - | -19 |
| Change in non-controlling interests |
- | - | - | - | - | - | - | - | -122 | -122 |
| Total transactions with owners | -2 | - | 50 | 72 | -1,517 | - | -170 | 413 | -122 | -1,276 |
| Equity at 31 December 2022 | 2,586 | 895 | 6,408 | 7,828 | 1,314 | 70 | 2,940 | 1,769 | 997 | 24,807 |
| Equity at 1 January 2023 | 2,586 | 895 | 6,408 | 7,828 | 1,314 | 70 | 2,940 | 1,769 | 997 | 24,807 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net profit | - | - | - | - | - | - | 745 | - | 33 | 778 |
| Other comprehensive income | - | - | - | - | - | - | - | - | - | - |
| Share of other comprehensive income of associates and joint ventures |
- | - | - | - | - | - | -16 | - | - | -16 |
| Value changes on loans measured at fair value |
- | - | - | - | - | - | 5 | - | - | 5 |
| Actuarial gains (losses), pensions |
- | - | - | - | - | - | - | - | - | - |
| Other comprehensive income | - | - | - | - | - | - | -10 | - | - | -10 |
| Total comprehensive income | - | - | - | - | - | - | 734 | - | 33 | 768 |
| Transactions with owners | ||||||||||
| Dividend declared for 2022 | - | - | - | - | -840 | - | - | - | - | -840 |
| To be disbursed from gift fund | - | - | - | - | -474 | - | - | - | - | -474 |
| Additional Tier 1 capital issued | - | - | - | - | - | - | - | - | - | - |
| Buyback additional Tier 1 Capital issued |
- | - | - | - | - | - | - | -76 | - | -76 |
| Interest payments additional Tier 1 capital |
- | - | - | - | - | - | - | -34 | - | -34 |
| Purchase and sale of own ECCs |
-0 | - | - | -0 | - | - | - | - | - | -0 |
| Own ECC held by SB1 Markets 1) |
3 | - | - | 10 | - | - | -0 | - | - | 13 |
| Direct recognitions in equity | - | - | - | - | - | - | 0 | - | - | 0 |
| Share of other transactions from associates and joint ventures |
- | - | - | - | - | - | -71 | - | - | -71 |
| Change in non-controlling interests |
- | - | - | - | - | - | - | - | - | - |
| Total transactions with owners | 3 | - | - | 10 | -1,314 | - | -71 | -110 | - | -1,482 |
| Equity at 31 March 2023 | 2,589 | 895 | 6,408 | 7,838 | - | 70 | 3,603 | 1,659 | 1,031 | 24,092 |
1) Holding of own equity certificates as part of SpareBank 1 Markets' trading activity
2) The change in principle as a result of the implementation of IFRS 17 is described in Note 1 Accounting Principles
| Note 1 - Accounting principles 29 | |
|---|---|
| Note 2 - Critical estimates and assessment concerning the use of accounting principles 30 | |
| Note 3 - Account by business line 32 | |
| Note 4 - Capital adequacy 34 | |
| Note 5 - Distribution of loans by sector/industry 36 | |
| Note 6 - Losses on loans and guarantees 37 | |
| Note 7 - Losses 38 | |
| Note 8 - Gross Loans 44 | |
| Note 9 - Distribution of customer deposits by sector/industry 46 | |
| Note 10 - Net interest income 47 | |
| Note 11 - Net commission income and other income 48 | |
| Note 12 - Operating expenses 49 | |
| Note 13 - Net return on financial investments 50 | |
| Note 14 - Other assets 51 | |
| Note 15 - Other liabilities 52 | |
| Note 16 - Debt created by issue of securities and subordinated debt 53 | |
| Note 17 - Measurement of fair value of financial instruments 54 | |
| Note 18 - Liquidity risk 57 | |
| Note 19 - Earnings per EC 58 |
SpareBank 1 SMN prepares and presents its quarterly accounts in compliance with the Stock Exchange Regulations, Stock Exchange Rules and International Financial Reporting Standards (IFRS) approved by EU, including IAS 34, Interim Financial Reporting. The quarterly accounts do not include all the information required in a complete set of annual financial statements and should be read in conjunction with the annual accounts for 2022. The Group has in this quarterly report used the same accounting principles and calculation methods as in the latest annual report and accounts, with the exception of the implementation of IFRS 17 in the associated company SpareBank 1 Gruppen, as described below.
IFRS 17 Insurance contracts replace IFRS 4 Insurance Contracts and specify principles for recognition, measurement, presentation and disclosure of insurance contracts. The purpose of the new standard is to eliminate inconsistent practices in accounting for insurance contracts and the core of the new model are as follows:
IFRS 17 shall, as a starting point, be used retrospectively, but it has been opened for a modified retrospective application or use based on fair value at the time of transition if retrospective use is impracticable.
IFRS 17 is effective for reporting periods beginning on or after 1 January 2023, with comparative figures required. Early application is permitted.
The effect on equity as a result of the associated company SpareBank 1 Gruppen implementing this standard as of 1 January 2022 is NOK 234 million in reduced equity. The result for 2022 from SpareBank 1 Gruppen, after adapting IFRS 17/IFRS 9, has been adjusted by NOK 32 million. As such the effect on equity as of 1 January 2023 is NOK 202 million. The group's result for 2022 and other key figures have not been restated.
| IFRS 17 effects for the Group | |
|---|---|
| Implementation of IFRS 17/IFRS 9 as of 1 January 2022 | - 234 |
| Restated results from SpareBank 1 Gruppen for 2022 as a result of implementing IFRS 17/IFRS 9 | 32 |
| Implementation effect on equity as of 1 January 2022 | - 202 |
| Restatement of comparable figures | First quarter 2022 |
| Group's share of recognised profit from SpareBank 1 Gruppen Q1 2022 | 13 |
| Effects of implementing IFRS 17/IFRS 9 | 23 |
| Group's restated results from SpareBank 1 Gruppen for Q1 2022 | 36 |
When it prepares the consolidated accounts the management team makes estimates, discretionary assessments and assumptions which influence the application of accounting principles. This accordingly affects recognised amounts for assets, liabilities, revenues and expenses. Last year's annual accounts give a closer explanation of significant estimates and assumptions in Note 3 Critical estimates and assessments concerning the use of accounting principles.
SpareBank 1 SMN's strategy is that ownership duse to defaulted exposures should at the outset be of brief duration, normally not longer than one year. Investments are recorded at fair value in the Parent Bank's accounts, and is classified as investment held for sale.
From fourth quarter 2022, the subsidiary SpareBank1 Markets is classified as held for sale. On 22 June 2022, SpareBank1 SMN announced that SpareBank1 Markets is strengthening its investment within the capital market and SpareBank1 SR-Bank and SpareBank1 Nord-Norge will be its majority owners. SpareBank1 SR-Bank and SpareBank1 Nord-Norge will transfer their markets business to SpareBank1 Markets, and also buy into the company in the form of a cash consideration. After completion of the transaction, SpareBank1 SMN will own 39.4% and SpareBank1 Markets will be treated as an associated company. The transaction is dependent on approval from the Norwegian Financial Supervisory Authority and the Norwegian Competition Authority, and is planned to be completed in June 2023.
Profit from SpareBank 1 Markets has been reclassified as shown:
| Income Statement (NOKm) | First Quarter 2023 | First Quarter 2022 |
|---|---|---|
| Net interest | -7 | 2 |
| Interest on capital employed | - | - |
| Total interest income | -7 | 2 |
| Commission income and other income | -159 | -115 |
| Net return on financial investments | -42 | -60 |
| Total income | -208 | -174 |
| Total operating expenses | -164 | -133 |
| Result before losses | -45 | -41 |
| Loss on loans, guarantees etc. | - | - |
| Result before tax | -45 | -41 |
| Tax charge | 7 | 4 |
| Net profit for investment held for sale | 38 | 37 |
| January - March 2023 (NOK Million) | Assets | Liabilities | Revenue | Expenses | Profit | Ownership |
|---|---|---|---|---|---|---|
| Mavi XV AS Group | 75 | 30 | 4 | 4 | -0 | 100 % |
| SpareBank 1 Markets | 1,434 | 589 | 208 | 171 | 38 | 67 % |
| Total Held for sale | 1,509 | 620 | 212 | 174 | 38 |
For a detailed description of the Bank's model for expected credit losses, refer to note 10 in the annual accounts for 2022.
In 2020 and 2021, the bank changed the model assumptions due to increased uncertainty related to the pandemic. The change consisted of increased loss expectations in the base scenario both for retail and corporate portfolio. These changes were reversed in 2021 for retail customers and in first quarter of 2022 for corporate market portfolio. In addition, the bank's exposure to hotels and tourism in stage 1 was included in stage 2 and this change was reversed in fourth quarter of 2022.
In 2022, increased macroeconomic uncertainty as a result of the war in Ukraine, strong increases in energy and raw material prices, challenges in the supply chains and the prospect of permanently higher inflation and interest rates have led to an increased probability of a low scenario for the corporate market excl. offshore. Future loss expectations have been increased by increased PD and LGD for both the personal market and the corporate market, excl. offshore in the base scenario. The bank has focused on the expected long-term effects of the crisis. For the offshore portfolio, during 2022, as a result of significant improvement in the market and market prospects, increased earnings assumptions have been used in the simulations and the weight for low scenarios has been reduced for supply and subsea. In the first quarter of 2023, the write-down models for the offshore portfolio are calculated using the same assumptions as the corporate market with regards to scenario weights, adjustment factors for PD and LGD and repayment assumptions.
The effect of the change in input assumptions in 2023 is shown as "Effect of changed assumptions in the ECL model" in note 7.
The write-downs are reduced for offshore as a result of increased earnings assumptions and a reduced weight for the low scenario. On the other hand, write-downs are increasing for both the business and personal market portfolios as a result of significant increase in interest rates and inflation are expected to increase future levels for PD and LGD lines.
In total, this amounts to NOK 19 million for the Bank and NOK 9 million for the Group in increased write-downs.
The first part of the table below show total calculated expected credit loss as of 31 March 2023 in each of the three scenarios, distributed in the portfolios Retail Market, Corporate Market and offshore, tourism and agriculture, which adds up to parent bank. In addition the subsidiary SpareBank 1 Finans Midt-Norge is included. ECL for the parent bank and the subsidiary is summed up in the coloumn "Group".
The second part of the table show the ECL distributed by portfolio using the scenario weight applied, in addition to a alternative weighting where downside scenaro weight has been doubled.
If the downside scenario's probability were doubled at the expense of the baseline scenario at the end of March 2023, this would have entailed an increase in loss provisions of NOK 268 million for the parent bank and NOK 291 million for the group.
| CM (excl offshore |
SB 1 | SB 1 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| and | Total | Finans | Finans | ||||||
| agriculture) | RM Offshore Tourism Agriculture | parent | MN, CM | MN, RM | Group | ||||
| ECL base case | 504 | 78 | 152 | 10 | 51 | 796 | 38 | 24 | 857 |
| ECL worst case | 1,201 | 267 | 262 | 33 | 181 | 1,944 | 84 | 82 | 2,110 |
| ECL best case | 348 | 28 | 137 | 5 | 27 | 544 | 25 | 15 | 585 |
| ECL with scenario weights used 60 /25/15 |
655 | - | 177 | 15 | 80 | 927 | 44 | - | 971 |
| ECL with scenario weights used 70 /15/15 |
- | 99 | - | - | - | 99 | - | 32 | 131 |
| Total ECL used | 655 | 99 | 177 | 15 | 80 | 1,026 | 44 | 32 | 1,102 |
| ECL alternative scenario weights 35 /50/15 |
829 | - | 205 | 21 | 112 | 1,167 | 59 | - | 1,226 |
| ECL alternative scenario weights 55 /30/15 |
- | 127 | - | - | - | 127 | - | 39 | 167 |
| Total ECL alternative weights | 829 | 127 | 205 | 21 | 112 | 1,294 | 59 | 39 | 1,393 |
| Change in ECL if alternative weights were used |
174 | 28 | 27 | 6 | 33 | 268 | 15 | 8 | 291 |
The table reflects that there are some significant differences in underlying PD and LGD estimates in the different scenarios and that there are differentiated levels and level differences between the portfolios. At group level, the ECL in the upside scenario, which largely reflects the loss and default picture in recent years, is about 70 per cent of the ECL in the expected scenario. The downside scenario gives about double the ECL than in the expected scenario. Applied scenario weighting gives about 30 percent higher ECL than in the expected scenario.
For the subsidiaries the figures refer to the respective company accounts, while for joint ventures incorporated by the equity method the Group's profit share is stated, after tax, as well as book value of the investment at group level.
| SB 1 Finans |
SB 1 Regnskaps |
|||||||
|---|---|---|---|---|---|---|---|---|
| Profit and loss account (NOKm) | RM | CM | EM 1 | MN | huset SMN | Other Uncollated | Total | |
| Net interest | 433 | 406 | 1 | 123 | 1 | - | 70 | 1,035 |
| Interest from allocated capital | 91 | 68 | - | - | - | - | -158 | - |
| Total interest income | 524 | 474 | 1 | 123 | 1 | - | -88 | 1,035 |
| Comission income and other income | 181 | 63 | 105 | -27 | 201 | - | 17 | 541 |
| Net return on financial investments **) | 1 | 4 | - | -7 | - | 131 | -101 | 28 |
| Total income | 706 | 541 | 107 | 90 | 202 | 131 | -172 | 1,604 |
| Total operating expenses | 325 | 127 | 89 | 30 | 158 | - | -0 | 728 |
| Ordinary operating profit | 381 | 413 | 18 | 59 | 44 | 131 | -172 | 875 |
| Loss on loans, guarantees etc. | 9 | -86 | - | 7 | - | - | -0 | -71 |
| Result before tax | 372 | 500 | 18 | 53 | 44 | 131 | -172 | 946 |
| Equity return *) | 15.8% | 28.4% | 13.0% |
| SB 1 Finans |
SB 1 Regnskaps |
|||||||
|---|---|---|---|---|---|---|---|---|
| Profit and loss account (NOKm) | RM | CM | EM 1 | MN | huset SMN | Other Uncollated | Total | |
| Net interest | 287 | 309 | 1 | 111 | 0 | - | 52 | 759 |
| Interest from allocated capital | 25 | 22 | - | - | - | - | -47 | - |
| Total interest income | 313 | 330 | 1 | 111 | 0 | - | 5 | 759 |
| Comission income and other income | 203 | 72 | 94 | -25 | 166 | - | 12 | 522 |
| Net return on financial investments **) | -0 | 2 | - | -6 | - | 68 | 112 | 175 |
| Total income | 515 | 404 | 95 | 80 | 166 | 62 | 129 | 1,456 |
| Total operating expenses | 248 | 124 | 81 | 28 | 143 | - | 4 | 629 |
| Ordinary operating profit | 266 | 280 | 14 | 51 | 23 | 62 | 124 | 827 |
| Loss on loans, guarantees etc. | -7 | 3 | - | 4 | - | - | -0 | -0 |
| Result before tax | 274 | 277 | 14 | 47 | 23 | 62 | 125 | 827 |
| Equity return *) | 13.4% | 11.5% | 12.6% |
| SB 1 Finans |
SB 1 Regnskaps |
|||||||
|---|---|---|---|---|---|---|---|---|
| Profit and loss account (NOKm) | RM | CM | EM 1 | MN | huset SMN | Other Uncollated | Total | |
| Net interest | 1,328 | 1,380 | 3 | 459 | 2 | - | 167 | 3,339 |
| Interest from allocated capital | 163 | 125 | - | - | - | - | -288 | - |
| Total interest income | 1,491 | 1,505 | 3 | 459 | 2 | - | -121 | 3,339 |
| Comission income and other income | 796 | 290 | 418 | -106 | 605 | - | 39 | 2,042 |
| Net return on financial investments **) | -4 | 9 | 8 | -23 | - | 466 | -76 | 380 |
| Total income | 2,283 | 1,804 | 429 | 329 | 607 | 466 | -158 | 5,760 |
| Total operating expenses | 958 | 467 | 371 | 108 | 511 | - | 28 | 2,443 |
| Ordinary operating profit | 1,325 | 1,337 | 58 | 221 | 96 | 466 | -186 | 3,317 |
| Loss on loans, guarantees etc. | 29 | -66 | - | 30 | - | - | -0 | -7 |
| Result before tax | 1,296 | 1,403 | 58 | 191 | 96 | 466 | -186 | 3,324 |
| Equity return *) | 13.6% | 20.8% | 12.3% |
*) Regulatory capital is used as a basis for calculating capital used in retail market (RM) and corporate market (CM). This capital has been grossed up to 17.2 per cent to be in line with the Bank's capital target.
| **) Specification of other (NOKm) | 31 Mar 23 | 31 Mar 22 | 31 Dec 22 |
|---|---|---|---|
| SpareBank 1 Gruppen | 34 | 13 | 175 |
| SpareBank 1 Boligkreditt | 33 | -5 | 1 |
| SpareBank 1 Næringskreditt | 2 | -0 | 3 |
| BN Bank | 62 | 49 | 203 |
| SpareBank 1 Kreditt | -4 | 3 | 9 |
| SpareBank 1 Betaling | -8 | -5 | 13 |
| SpareBank 1 Forvaltning | 8 | 8 | 33 |
| Other companies | 4 | 5 | 29 |
| Income from investment in associates and joint ventures | 131 | 68 | 466 |
| SpareBank 1 Mobilitet Holding | -7 | -6 | -23 |
| Net income from investment in associates and joint ventures | 125 | 62 | 442 |
Capital adequacy is calculated and reported in accordance with the EU capital requirements regulations for banks and investment firms (CRR/CRD IV). SpareBank 1 SMN utilises the Internal Rating Based Approach (IRB) for credit risk. Advanced IRB Apporoach is used for the corporate portfolios. Use of IRB imposes wide-ranging requirements on the bank's organisational set-up, competence, risk models and risk management systems.
As of 31 March 2023 the overall minimum requirement on CET1 capital is 14.0 per cent. The capital conservation buffer requirement is 2.5 per cent, the systemic risk requirement for Norwegian IRB-banks is 4.5 per cent and the Norwegian countercyclical buffer is 2.5 per cent. These requirements are additional to the requirement of 4.5 per cent CET1 capital. In addition the financial supervisory authority has set a Pillar 2 requirement of 1.9 per cent for SpareBank 1 SMN, however not below NOK 1,794 million in monetary terms. From 30 April 2022, SpareBank 1 SMN has received a new Pillar 2 requirement. The rate of 1.9 per cent is unchanged, but in addition the bank must have an additional 0.7 per cent in Pillar 2 requirements until the application for adjusting IRB-models has been processed.
Under the CRR/CRDIV regulations the average risk weighting of exposures secured on residential property in Norway cannot be lower than 20 per cent. As of 31 March 2023 an adjustment was made in both the parent bank and the group to bring the average risk weight up to 20 per cent. This is presented in the note together with 'mass market exposure, property' under 'credit risk IRB'.
The systemic risk buffer stands at 4.5 per cent for the Norwegian exposures. For exposures in other countries, the particular country's systemic buffer rate shall be employed. As of 31 March 2023 the effective rate for the parent bank and for the group is accordingly 4.45 per cent.
The countercyclical buffer is calculated using differentiated rates. For exposures in other countries the countercyclical buffer rate set by the authorities in the country concerned is applied. If that country has not set a rate, the same rate as for exposures in Norway is applied unless the Ministry of Finance sets another rate. For the first quarter of 2023 both the parent bank and the group is below the capital deduction threshold such that the Norwegian rate is applied to all relevant exposures.
| Parent Bank | Group | |||||
|---|---|---|---|---|---|---|
| 31 Dec | 31 Mar | 31 Mar | 31 Mar | 31 Mar | 31 Dec | |
| 2022 | 2022 | 2023 (NOKm) | 2023 | 2022 | 2022 | |
| 20,887 | 18,275 | 20,021 Total book equity | 24,092 | 22,439 | 24,807 | |
| -1,726 | -1,230 | -1,617 Additional Tier 1 capital instruments included in total equity | -1,659 | -1,271 | -1,769 | |
| -467 | -457 | -467 Deferred taxes, goodwill and other intangible assets | -951 | -957 | -947 | |
| -1,314 | - | - Deduction for allocated dividends and gifts | - | - | -1,314 | |
| - | - | - Non-controlling interests recognised in other equity capital | -1,031 | -1,005 | -997 | |
| - | - | - Non-controlling interests eligible for inclusion in CET1 capital | 834 | 579 | 784 | |
| - | -459 | -552 Net profit | -778 | -698 | - | |
| - | 100 | 147 Year-to-date profit included in core capital (50 per cent (50 per cent) pre tax of group profit) |
372 | 338 | - | |
| -72 | -46 | -78 Value adjustments due to requirements for prudent valuation | -95 | -62 | -89 | |
| -194 | -469 | -258 Positive value of adjusted expected loss under IRB Approach | -363 | -529 | -279 | |
| - | - | - Cash flow hedge reserve | -4 | -2 | -4 | |
| -281 | -202 | -281 Deduction for common equity Tier 1 capital in significant investments in financial institutions |
-460 | -603 | -417 | |
| 16,833 | 15,513 | 16,915 Common equity Tier 1 capital | 19,959 | 18,229 | 19,776 | |
| 1,726 | 1,250 | 1,650 Additional Tier 1 capital instruments | 2,073 | 1,616 | 2,106 | |
| -47 | -47 | -46 Deduction for significant investments in financial institutions | -46 | -47 | -47 | |
| 18,512 | 16,715 | 18,519 Tier 1 capital | 21,985 | 19,797 | 21,835 | |
| - | ||||||
| - | Supplementary capital in excess of core capital | |||||
| 2,000 | 1,750 | 2,000 Subordinated capital | 2,522 | 2,258 | 2,523 | |
| -210 | -217 | -209 Deduction for significant investments in financial institutions | -209 | -217 | -210 | |
| 1,790 | 1,533 | 1,791 Additional Tier 2 capital instruments | 2,313 | 2,041 | 2,312 | |
| 20,301 | 18,249 | 20,309 Total eligible capital | 24,298 | 21,839 | 24,147 |
| Minimum requirements subordinated capital | |||||
|---|---|---|---|---|---|
| 1,148 | 1,157 | 1,234 Specialised enterprises | 1,469 | 1,376 | 1,351 |
| 901 | 1,052 | 920 Corporate | 947 | 1,072 | 923 |
| 1,379 | 1,356 | 1,368 Mass market exposure, property | 2,587 | 2,374 | 2,559 |
| 98 | 101 | 108 Other mass market | 111 | 104 | 100 |
| 1,249 | 1,008 | 1,253 Equity positions IRB | - | 1 | - |
| 4,774 | 4,674 | 4,884 Total credit risk IRB | 5,113 | 4,927 | 4,933 |
| 6 | 3 | 3 Central government | 3 | 4 | 6 |
| 82 | 97 | 109 Covered bonds | 156 | 144 | 139 |
| 403 | 421 | 383 Institutions | 285 | 301 | 276 |
| 187 | 1 | 217 Local and regional authorities, state-owned enterprises | 242 | 20 | 207 |
| 143 | 139 | 174 Corporate | 421 | 401 | 385 |
| 7 | 4 | 7 Mass market | 679 | 485 | 662 |
| 27 | 33 | 36 Exposures secured on real property | 111 | 123 | 109 |
| 90 | 279 | 90 Equity positions | 501 | 495 | 504 |
| 97 | 65 | 102 Other assets | 180 | 125 | 162 |
| 1,042 | 1,041 | 1,121 Total credit risk standardised approach | 2,578 | 2,098 | 2,450 |
| 27 | 52 | 42 Debt risk | 43 | 54 | 29 |
| - | - | - Equity risk | 10 | 30 | 10 |
| - | - | - Currency risk and risk exposure for settlement/delivery | 4 | 2 | 1 |
| 458 | 433 | 458 Operational risk | 852 | 809 | 853 |
| 30 | 28 | 40 Credit value adjustment risk (CVA) | 149 | 67 | 101 |
| 6,331 | 6,228 | 6,544 Minimum requirements subordinated capital | 8,749 | 7,988 | 8,377 |
| 79,140 | 77,846 | 81,801 Risk weighted assets (RWA) | 109,366 | 99,847 | 104,716 |
| 3,561 | 3,503 | 3,681 Minimum requirement on CET1 capital, 4.5 per cent | 4,921 | 4,493 | 4,712 |
| Capital Buffers | |||||
| 1,978 | 1,946 | 2,045 Capital conservation buffer, 2.5 per cent | 2,734 | 2,496 | 2,618 |
| 3,561 | 3,503 | 3,640 Systemic risk buffer, 4.5 per cent | 4,867 | 4,493 | 4,712 |
| 1,583 | 778 | 2,045 Countercyclical buffer, 1.0 per cent | 2,734 | 998 | 2,094 |
| 7,123 | 6,228 | 7,730 Total buffer requirements on CET1 capital | 10,335 | 7,988 | 9,424 |
| 6,149 | 5,782 | 5,504 Available CET1 capital after buffer requirements | 4,702 | 5,748 | 5,639 |
| Capital adequacy | |||||
| 21.3 % | 19.9 % | 20.7 % Common equity Tier 1 capital ratio | 18.2 % | 18.3 % | 18.9 % |
| 23.4 % | 21.5 % | 22.6 % Tier 1 capital ratio | 20.1 % | 19.8 % | 20.9 % |
| 25.7 % | 23.4 % | 24.8 % Capital ratio | 22.2 % | 21.9 % | 23.1 % |
| Leverage ratio | |||||
| 209,285 | 193,702 | 216,517 Balance sheet items | 311,331 | 275,296 | 300,772 |
| 6,234 | 9,942 | 6,724 Off-balance sheet items | 8,046 | 11,167 | 7,744 |
| -313 | -563 | -382 Regulatory adjustments | -504 | -641 | -419 |
| 215,205 | 203,081 | 222,858 Calculation basis for leverage ratio | 318,873 | 285,823 | 308,097 |
| 18,512 | 16,715 | 18,519 Core capital | 21,985 | 19,797 | 21,835 |
| Parent Bank | Group | |||||
|---|---|---|---|---|---|---|
| 31 Dec | 31 Mar | 31 Mar | 31 Mar | 31 Mar | 31 Dec | |
| 2022 | 2022 | 2023 (NOKm) | 2023 | 2022 | 2022 | |
| 10,707 | 9,446 | 10,773 Agriculture and forestry | 11,214 | 9,807 | 11,140 | |
| 7,047 | 7,069 | 7,095 Fisheries and hunting | 7,123 | 7,086 | 7,075 | |
| 2,324 | 1,949 | 1,864 Sea farming industries | 2,179 | 2,194 | 2,656 | |
| 2,563 | 2,259 | 2,736 Manufacturing | 3,321 | 2,856 | 3,150 | |
| 4,370 | 3,287 | 4,923 Construction, power and water supply | 6,086 | 4,266 | 5,526 | |
| 2,976 | 2,783 | 3,129 Retail trade, hotels and restaurants | 3,872 | 3,212 | 3,632 | |
| 5,382 | 5,067 | 5,700 Maritime sector | 5,700 | 5,067 | 5,382 | |
| 18,722 | 17,468 | 19,587 Property management | 19,703 | 17,570 | 18,840 | |
| 3,561 | 4,649 | 3,817 Business services | 4,635 | 5,207 | 4,312 | |
| 5,327 | 5,500 | 5,102 Transport and other services provision | 6,182 | 6,448 | 6,375 | |
| 1 | 2 | 3 Public administration | 37 | 32 | 35 | |
| 1,343 | 1,280 | 1,142 Other sectors | 1,094 | 1,223 | 1,288 | |
| 64,322 | 60,759 | 65,872 Gross loans in Corporate market | 71,146 | 64,966 | 69,411 | |
| 134,841 | 128,673 | 135,646 Wage earners | 142,822 | 134,998 | 141,833 | |
| 199,163 | 189,432 | 201,518 Gross loans incl. SB1 Boligkreditt /SB1 Næringskreditt |
213,967 | 199,965 | 211,244 | |
| 56,876 | 51,233 | 59,054 of which SpareBank 1 Boligkreditt | 59,054 | 51,233 | 56,876 | |
| 1,739 | 1,709 | 1,732 of which SpareBank 1 Næringskreditt | 1,732 | 1,709 | 1,739 | |
| 140,549 | 136,490 | 140,731 Total Gross loans to and receivables from customers |
153,181 | 147,023 | 152,629 | |
| 890 | 1,098 | 784 - Loan loss allowance on amortised cost loans | 870 | 1,162 | 972 | |
| 109 | 87 | 102 - Loan loss allowance on loans at FVOCI | 102 | 87 | 109 | |
| 139,550 | 135,306 | 139,845 Net loans to and receivables from customers | 152,208 | 145,773 | 151,549 |
| Jan - Mar | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| 2023 | 2022 | 2022 | |||||||
| Parent Bank (NOKm) | RM | CM | Total | RM | CM | Total | RM | CM | Total |
| Change in provision for expected credit losses | 6 | -93 | -87 | -6 | -13 | -18 | 29 | -97 | -68 |
| Actual loan losses on commitments exceeding provisions made | 5 | 7 | 11 | 1 | 18 | 19 | 7 | 38 | 45 |
| Recoveries on commitments previously written-off | -2 | -1 | -2 | -2 | -3 | -5 | -7 | -7 | -14 |
| Losses for the period on loans and guarantees | 9 | -86 | -77 | -7 | 3 | -4 | 29 | -66 | -37 |
| Jan - Mar | |||||||||
| 2023 | 2022 | 2022 | |||||||
| Group (NOKm) | RM | CM | Total | RM | CM | Total | RM | CM | Total |
| Change in provision for expected credit losses | 8 | -91 | -83 | -5 | -12 | -16 | 38 | -86 | -48 |
| Actual loan losses on commitments exceeding provisions made | 5 | 9 | 14 | 2 | 20 | 22 | 13 | 45 | 58 |
| Recoveries on commitments previously written-off | -2 | -1 | -2 | -2 | -3 | -5 | -7 | -10 | -17 |
| Change in | Net write offs |
|||
|---|---|---|---|---|
| Parent Bank (NOKm) | 1 Jan 23 | provision | /recoveries | 31 Mar 23 |
| Loans as amortised cost- CM | 921 | -93 | - | 828 |
| Loans as amortised cost- RM | 35 | 7 | -3 | 39 |
| Loans at fair value over OCI- RM | 147 | -1 | - | 146 |
| Loans at fair value over OCI- CM | 2 | 0 | - | 2 |
| Provision for expected credit losses on loans and guarantees | 1,106 | -87 | -3 | 1,015 |
| Presented as | ||||
| Provision for loan losses | 999 | -109 | -3 | 887 |
| Other debt- provisons | 67 | 17 | - | 83 |
| Other comprehensive income - fair value adjustment | 40 | 5 | - | 45 |
| Net write | ||||
|---|---|---|---|---|
| Parent Bank (NOKm) | 1 Jan 22 | Change in provision |
offs /recoveries |
31 Mar 22 |
| Loans as amortised cost- CM | 1,298 | -13 | -149 | 1,137 |
| Loans as amortised cost- RM | 31 | 6 | -4 | 32 |
| Loans at fair value over OCI- RM | 128 | -11 | - | 116 |
| Loans at fair value over OCI- CM | 1 | -0 | - | 1 |
| Provision for expected credit losses on loans and guarantees | 1,458 | -18 | -153 | 1,286 |
| Presented as | ||||
| Provision for loan losses | 1,348 | -10 | -153 | 1,185 |
| Other debt- provisons | 79 | -7 | - | 71 |
| Other comprehensive income - fair value adjustment | 31 | -1 | - | 30 |
| Net write | ||||
|---|---|---|---|---|
| Parent Bank (NOKm) | 1 Jan 22 | Change in provision |
offs /recoveries |
31 Dec 22 |
| Loans as amortised cost- CM | 1,298 | -98 | -278 | 921 |
| Loans as amortised cost- RM | 31 | 10 | -5 | 35 |
| Loans at fair value over OCI- RM | 128 | 19 | - | 147 |
| Loans at fair value over OCI- CM | 1 | 1 | - | 2 |
| Provision for expected credit losses on loans and guarantees | 1,458 | -68 | -284 | 1,106 |
| Presented as | ||||
| Provision for loan losses | 1,348 | -65 | -284 | 999 |
| Other debt- provisons | 79 | -12 | - | 67 |
| Other comprehensive income - fair value adjustment | 31 | 9 | - | 40 |
| Net write | |||||
|---|---|---|---|---|---|
| Change in | offs | ||||
| Group (NOKm) | 1 Jan 23 | provision | /recoveries | 31 Mar 23 | |
| Loans as amortised cost- CM | 976 | -91 | - | 885 | |
| Loans as amortised cost- RM | 63 | 9 | -3 | 69 | |
| Loans at fair value over OCI- RM | 147 | -1 | - | 146 | |
| Loans at fair value over OCI- CM | 2 | 0 | - | 2 | |
| Provision for expected credit losses on loans and guarantees | 1,188 | -83 | -3 | 1,101 | |
| Presented as | |||||
| Provision for loan losses | 1,081 | -105 | -3 | 973 | |
| Other debt- provisons | 67 | 17 | - | 83 | |
| Other comprehensive income - fair value adjustment | 40 | 5 | - |
| Group (NOKm) | 1 Jan 22 | Change in provision |
Net write offs /recoveries |
31 Mar 22 |
|---|---|---|---|---|
| Loans as amortised cost- CM | 1,343 | -12 | -149 | 1,182 |
| Loans as amortised cost- RM | 49 | 7 | -4 | 51 |
| Loans at fair value over OCI- RM | 128 | -11 | - | 116 |
| Loans at fair value over OCI- CM | 1 | -0 | - | 1 |
| Provision for expected credit losses on loans and guarantees | 1,520 | -17 | -153 | 1,351 |
| Presented as | ||||
| Provision for loan losses | 1,410 | -8 | -153 | 1,249 |
| Other debt- provisons | 79 | -7 | - | 71 |
| Other comprehensive income - fair value adjustment | 31 | -1 | - | 30 |
| Net write | ||||
|---|---|---|---|---|
| Change in | offs | |||
| Group (NOKm) | 1 Jan 22 | provision | /recoveries | 31 Dec 22 |
| Loans as amortised cost- CM | 1,343 | -88 | -280 | 976 |
| Loans as amortised cost- RM | 49 | 19 | -5 | 63 |
| Loans at fair value over OCI- RM | 128 | 19 | - | 147 |
| Loans at fair value over OCI- CM | 1 | 1 | - | 2 |
| Provision for expected credit losses on loans and guarantees | 1,520 | -48 | -285 | 1,188 |
| Presented as | ||||
| Provision for loan losses | 1,410 | -45 | -285 | 1,081 |
| Other debt- provisons | 79 | -12 | - | 67 |
| Other comprehensive income - fair value adjustment | 31 | 9 | - | 40 |
| 31 Mar 2023 | 31 Mar 2022 | 31 Dec 2022 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Parent Bank (NOKm) | Stage 1 Stage 2 Stage 3 | Total Stage 1 Stage 2 Stage 3 | Total Stage 1 Stage 2 Stage 3 | Total | ||||||||
| Retail market | ||||||||||||
| Opening balance | 46 | 93 | 42 | 181 | 39 | 82 | 36 | 156 | 39 | 82 | 36 | 156 |
| Transfer to (from) stage 1 |
20 | -20 | -0 | - | 15 | -15 | -0 | - | 18 | -18 | -0 | - |
| Transfer to (from) stage 2 |
-3 | 3 | -0 | - | -2 | 2 | -0 | - | -2 | 2 | -0 | - |
| Transfer to (from) stage 3 |
-0 | -5 | 5 | - | -0 | -5 | 5 | - | -0 | -6 | 6 | - |
| Net remeasurement of loss allowances |
-21 | 18 | 5 | 2 | -16 | 12 | 0 | -4 | -24 | 20 | 7 | 4 |
| Originations or purchases |
8 | 2 | 1 | 11 | 5 | 4 | 1 | 10 | 17 | 24 | 4 | 45 |
| Derecognitions | -6 | -9 | -3 | -18 | -3 | -8 | -2 | -13 | -12 | -24 | -3 | -39 |
| Changes due to changed input assumptions |
6 | 7 | -4 | 9 | -0 | 2 | -2 | 0 | 9 | 13 | -2 | 20 |
| Actual loan losses | 0 | 0 | -3 | -3 | - | - | -4 | -4 | 0 | 0 | -5 | -5 |
| Closing balance | 51 | 89 | 43 | 182 | 38 | 74 | 34 | 146 | 46 | 93 | 42 | 181 |
| Corporate Market | ||||||||||||
| Opening balance | 138 | 298 | 421 | 858 | 84 | 268 | 871 | 1,223 | 84 | 268 | 871 | 1,223 |
| Transfer to (from) stage 1 |
28 | -27 | -0 | - | 20 | -20 | -0 | - | 75 | -74 | -1 | - |
| Transfer to (from) stage 2 |
-4 | 14 | -10 | - | -2 | 2 | - | - | -5 | 97 | -92 | - |
| Transfer to (from) stage 3 |
-1 | -2 | 3 | - | -1 | -3 | 4 | - | -1 | -3 | 4 | - |
| Net remeasurement of loss allowances |
-31 | -56 | -20 | -107 | 38 | 19 | -12 | 45 | -67 | -35 | -66 | -168 |
| Originations or purchases |
18 | 1 | - | 19 | 25 | 8 | 2 | 35 | 49 | 34 | 4 | 87 |
| Derecognitions | -13 | -15 | -3 | -32 | -6 | -10 | -15 | -31 | -33 | -31 | -24 | -88 |
| Changes due to changed input assumptions |
7 | 5 | - | 12 | -55 | -6 | 6 | -54 | 37 | 41 | 4 | 83 |
| Actual loan losses | - | - | - | - | - | - | -149 | -149 | - | - | -278 | -278 |
| Closing balance | 141 | 218 | 391 | 750 | 104 | 258 | 708 | 1,069 | 138 | 298 | 421 | 858 |
| Total accrual for loan losses |
192 | 306 | 434 | 932 | 142 | 332 | 741 | 1,215 | 184 | 391 | 463 | 1,039 |
| 31 Mar 2023 | 31 Mar 2022 | 31 Dec 2022 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Group (NOKm) | Stage 1 Stage 2 Stage 3 | Total Stage 1 Stage 2 Stage 3 | Total Stage 1 Stage 2 Stage 3 | Total | ||||||||
| Retail market | ||||||||||||
| Opening balance | 55 | 107 | 47 | 209 | 45 | 89 | 40 | 174 | 45 | 89 | 40 | 174 |
| Transfer to (from) stage 1 |
21 | -21 | -0 | - | 16 | -16 | -0 | - | 20 | -20 | -0 | - |
| Transfer to (from) stage 2 |
-3 | 3 | -0 | - | -2 | 2 | -0 | - | -3 | 3 | -1 | - |
| Transfer to (from) stage 3 |
-0 | -6 | 6 | - | -0 | -5 | 5 | - | -0 | -7 | 7 | - |
| Net remeasurement of loss allowances |
-21 | -21 | -6 | 7 | -16 | 15 | 1 | -1 | -24 | 25 | 8 | 9 |
| Originations or purchases |
10 | 2 | 1 | 13 | 7 | 5 | 1 | 12 | 22 | 30 | 4 | 56 |
| Derecognitions | -6 | -10 | -3 | -19 | -4 | -8 | -2 | -14 | -13 | -26 | -4 | -43 |
| Changes due to changed input assumptions |
5 | 5 | -4 | 6 | -1 | 2 | -3 | -2 | 8 | 13 | -3 | 18 |
| Actual loan losses | - | - | -3 | -3 | - | - | -4 | -4 | - | - | -5 | -5 |
| Closing balance | 60 | 103 | 49 | 212 | 45 | 82 | 38 | 165 | 55 | 107 | 47 | 209 |
| Corporate Market | ||||||||||||
| Opening balance | 151 | 311 | 450 | 912 | 94 | 278 | 896 | 1,268 | 94 | 278 | 896 | 1,268 |
| Transfer to (from) stage 1 |
29 | -28 | -0 | - | 21 | -21 | -0 | - | 77 | -76 | -1 | - |
| Transfer to (from) stage 2 |
-5 | 15 | -10 | - | -2 | 2 | -0 | - | -7 | 99 | -92 | - |
| Transfer to (from) stage 3 |
-1 | -3 | 4 | - | -1 | -3 | 4 | - | -2 | -3 | 4 | - |
| Net remeasurement of loss allowances |
-29 | -53 | -19 | -101 | 39 | 20 | -11 | 48 | -68 | -30 | -47 | -145 |
| Originations or purchases |
2 | 0 | 1 | 3 | 27 | 8 | 2 | 37 | 55 | 35 | 5 | 95 |
| Derecognitions | -14 | -16 | -3 | -33 | -6 | -11 | -16 | -33 | -34 | -33 | -26 | -93 |
| Changes due to | ||||||||||||
| changed input assumptions |
7 | 4 | -6 | 5 | -55 | -7 | 6 | -56 | 35 | 40 | -8 | 67 |
| Actual loan losses | - | - | - | - | - | - | -149 | -149 | - | - | -280 | -280 |
| Closing balance | 158 | 231 | 417 | 806 | 115 | 268 | 732 | 1,115 | 151 | 311 | 450 | 912 |
| Total accrual for loan losses |
219 | 334 | 465 | 1,018 | 160 | 350 | 770 | 1,279 | 206 | 418 | 497 | 1,121 |
| 31 Mar 2023 | 31 Mar 2022 | 31 Dec 2022 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Stage | Stage | Stage | Stage | Stage | Stage | Stage | Stage | Stage | ||||
| Parent Bank and Group (NOKm) | 1 | 2 | 3 Total | 1 | 2 | 3 Total | 1 | 2 | 3 Total | |||
| Opening balance | 24 | 34 | 9 | 67 | 19 | 55 | 5 | 79 | 19 | 55 | 5 | 79 |
| Transfer to (from) stage 1 | 1 | -1 | -0 | - | 1 | -1 | -0 | - | 16 | -16 | -0 | - |
| Transfer to (from) stage 2 | -0 | 0 | -0 | - | -0 | 0 | -0 | - | -1 | 1 | -0 | - |
| Transfer to (from) stage 3 | -0 | -0 | 0 | - | -0 | -0 | 0 | - | -0 | -0 | 1 | - |
| Net remeasurement of loss allowances | -4 | 11 | 4 | 12 | 2 | -5 | 0 | -2 | -16 | -3 | 3 | -15 |
| Originations or purchases | - | - | - | - | 5 | 1 | 0 | 6 | 12 | 6 | 0 | 18 |
| Derecognitions | -1 | -3 | -0 | -4 | -1 | -5 | -0 | -6 | -4 | -12 | -0 | -16 |
| Changes due to changed input assumptions |
2 | -4 | - | -2 | -5 | -1 | 0 | -5 | -3 | 3 | 0 | 1 |
| Actual loan losses | - | - | - | - | - | - | - | - | - | - | - | - |
| Closing balance | 31 | 39 | 13 | 83 | 21 | 45 | 5 | 71 | 24 | 34 | 9 | 67 |
| Of which | ||||||||||||
| Retail market | 3 | 3 | 1 | |||||||||
| Corporate Market | 81 | 68 | 66 |
| 31 Mar 2023 | 31 Mar 2022 | 31 Dec 2022 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Parent Bank (NOKm) | Stage 1 Stage 2 Stage 3 | Total Stage 1 Stage 2 Stage 3 | Total Stage 1 Stage 2 Stage 3 | Total | ||||||||
| Agriculture and forestry | 3 | 33 | 18 | 54 | 2 | 31 | 8 | 41 | 4 | 38 | 18 | 60 |
| Fisheries and hunting | 13 | 8 | - | 21 | 9 | 10 | 0 | 19 | 11 | 12 | 0 | 23 |
| Sea farming industries | 2 | 1 | 1 | 4 | 1 | 0 | 1 | 2 | 3 | 1 | 1 | 5 |
| Manufacturing | 9 | 39 | 5 | 53 | 5 | 31 | 11 | 47 | 9 | 47 | 2 | 58 |
| Construction, power and water supply |
39 | 12 | 6 | 57 | 13 | 14 | 8 | 35 | 26 | 22 | 11 | 59 |
| Retail trade, hotels and restaurants |
9 | 20 | 14 | 42 | 10 | 28 | 11 | 49 | 16 | 14 | 1 | 32 |
| Maritime sector | 12 | 20 | 0 | 32 | 22 | 109 | 409 | 539 | 19 | 117 | 184 | 320 |
| Property management | 1 | 3 | 12 | 16 | 24 | 45 | 30 | 99 | 34 | 55 | 28 | 117 |
| Business services | 44 | 86 | 195 | 324 | 14 | 14 | 221 | 249 | 13 | 24 | 177 | 214 |
| Transport and other services |
15 | 37 | 158 | 210 | 7 | 8 | 18 | 33 | 9 | 11 | 16 | 36 |
| Public administration | 0 | - | - | 0 | 0 | - | - | 0 | 0 | 0 | 0 | 0 |
| Other sectors | 0 | 0 | - | 0 | 0 | 0 | - | 0 | 0 | 0 | 0 | 0 |
| Wage earners | 0 | 49 | 25 | 74 | 3 | 42 | 25 | 70 | 1 | 50 | 25 | 75 |
| Total provision for losses on loans |
146 | 306 | 434 | 887 | 111 | 332 | 741 | 1,185 | 144 | 391 | 463 | 999 |
| loan loss allowance on loans at FVOCI |
45 | 45 | 30 | 30 | 40 | 40 | ||||||
| Total loan loss allowance |
192 | 306 | 434 | 932 | 142 | 332 | 741 | 1,215 | 184 | 391 | 463 | 1,039 |
| 31 Mar 2023 | 31 Mar 2022 | 31 Dec 2022 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Group (NOKm) | Stage 1 Stage 2 Stage 3 | Total Stage 1 Stage 2 Stage 3 | Total Stage 1 Stage 2 Stage 3 | Total | ||||||||
| Agriculture and forestry | 4 | 35 | 19 | 58 | 3 | 32 | 9 | 44 | 5 | 40 | 19 | 64 |
| Fisheries and hunting | 13 | 8 | 0 | 21 | 9 | 10 | 0 | 19 | 11 | 12 | 0 | 23 |
| Sea farming industries | 4 | 1 | 1 | 6 | 2 | 1 | 1 | 4 | 4 | 1 | 4 | 9 |
| Manufacturing | 13 | 43 | 11 | 67 | 8 | 34 | 16 | 57 | 11 | 50 | 8 | 70 |
| Construction, power and water supply |
43 | 15 | 12 | 69 | 16 | 16 | 11 | 44 | 30 | 25 | 16 | 71 |
| Retail trade, hotels and restaurants |
10 | 21 | 15 | 46 | 12 | 28 | 19 | 59 | 17 | 15 | 2 | 34 |
| Maritime sector | 12 | 20 | 0 | 32 | 22 | 109 | 409 | 539 | 19 | 117 | 184 | 320 |
| Property management | 1 | 3 | 13 | 17 | 25 | 45 | 30 | 100 | 35 | 55 | 29 | 118 |
| Business services | 46 | 87 | 203 | 336 | 15 | 16 | 225 | 256 | 15 | 25 | 184 | 224 |
| Transport and other services |
18 | 42 | 162 | 222 | 10 | 10 | 21 | 41 | 12 | 16 | 21 | 49 |
| Public administration | 0 | - | - | 0 | 0 | - | - | 0 | 0 | 0 | 0 | 0 |
| Other sectors | 0 | 0 | 0 | 0 | 0 | 0 | - | 0 | 0 | 0 | 0 | 0 |
| Wage earners | 8 | 61 | 30 | 99 | 8 | 49 | 29 | 86 | 8 | 61 | 29 | 99 |
| Total provision for losses on loans |
173 | 334 | 465 | 973 | 130 | 350 | 770 | 1,249 | 166 | 418 | 497 | 1,081 |
| loan loss allowance on loans at FVOCI |
45 | 45 | 30 | 30 | 40 | 40 | ||||||
| Total loan loss allowance |
219 | 334 | 465 | 1,018 | 160 | 350 | 770 | 1,279 | 206 | 418 | 497 | 1,121 |
| 31 Mar 2023 | 31 Mar 2022 | 31 Dec 2022 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Parent Bank (NOKm) | Stage 1 Stage 2 Stage 3 | Total Stage 1 Stage 2 Stage 3 | Total Stage 1 Stage 2 Stage 3 | Total | ||||||||
| Retail Market | ||||||||||||
| Opening balance | 80,994 | 3,962 | 527 | 85,484 | 82,299 | 3,892 | 444 | 86,636 | 82,299 | 3,892 | 444 | 86,636 |
| Transfer to stage 1 |
1,061 | -1,048 | -14 | - | 1,034 | -1,022 | -12 | - | 1,075 | -1,060 | -15 | - |
| Transfer to stage 2 |
-1,003 | 1,010 | -7 | - | -968 | 968 | -0 | - | -1,403 | 1,411 | -8 | - |
| Transfer to stage 3 |
-2 | -95 | 97 | - | -19 | -115 | 133 | - | -32 | -119 | 150 | - |
| Net increase/decrease amount existing loans |
-973 | -33 | -2 | -1,007 | -1,224 | -50 | -32 | -1,306 | -2,501 | -106 | -15 | -2,623 |
| New loans | 11,257 | 205 | 49 | 11,511 | 12,643 | 234 | 30 | 12,906 | 38,691 | 1,418 | 120 | 40,229 |
| Derecognitions | -11,250 | -489 | -59 | -11,798 | -13,820 | -502 | -33 | -14,355 | -37,136 | -1,473 | -137 | -38,746 |
| Financial assets with actual loan losses |
0 | 0 | -8 | -8 | - | - | -6 | -6 | -0 | -1 | -11 | -12 |
| Closing balance | 80,085 | 3,514 | 583 | 84,181 | 79,946 | 3,406 | 523 | 83,875 | 80,994 | 3,962 | 527 | 85,484 |
| Corporate Market | ||||||||||||
| Opening balance | 43,127 | 5,883 | 1,346 | 50,356 | 38,359 | 5,186 | 2,656 | 46,201 | 38,359 | 5,186 | 2,656 | 46,201 |
| Transfer to stage 1 |
791 | -787 | -4 | - | 201 | -198 | -3 | - | 1,839 | -1,820 | -19 | - |
| Transfer to stage 2 |
-625 | 700 | -76 | - | -555 | 555 | -0 | - | -1,699 | 2,606 | -908 | - |
| Transfer to stage 3 |
-11 | -16 | 27 | - | -66 | -73 | 139 | - | -67 | -72 | 139 | - |
| Net increase/decrease amount existing loans |
106 | -66 | 2 | 42 | 390 | -83 | -13 | 294 | -731 | -257 | -3 | -990 |
| New loans | 4,732 | 30 | 47 | 4,810 | 5,932 | 261 | 78 | 6,271 | 17,124 | 1,661 | 86 | 18,872 |
| Derecognitions | -3,147 | -162 | -50 | -3,360 | -3,805 | -404 | -283 | -4,492 | -11,697 | -1,415 | -514 | -13,625 |
| Financial assets with actual loan losses |
0 | 0 | -5 | -5 | 0 | 0 | -31 | -31 | -3 | -8 | -91 | -102 |
| Closing balance | 44,972 | 5,582 | 1,288 | 51,843 | 40,455 | 5,244 | 2,543 | 48,242 | 43,127 | 5,883 | 1,346 | 50,356 |
| Fixed interest loans at FV |
4,707 | 4,707 | 4,373 | 4,373 | 4,709 | - | - | 4,709 | ||||
| Total gross loans at the end of the period |
129,764 | 9,096 | 1,872 140,731 124,774 | 8,651 | 3,066 136,490 128,830 | 9,845 | 1,874 140,549 |
| 31 Mar 2023 | 31 Mar 2022 | 31 Dec 2022 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Group (NOKm) | Stage 1 Stage 2 Stage 3 | Total Stage 1 Stage 2 Stage 3 | Total Stage 1 Stage 2 Stage 3 | Total | ||||||||
| Retail Market | ||||||||||||
| Opening balance | 86,972 | 4,901 | 635 | 92,508 | 87,577 | 4,612 | 531 | 92,721 | 87,577 | 4,612 | 531 | 92,721 |
| Transfer to stage 1 |
1,180 | -1,167 | -14 | - | 1,141 | -1,128 | -12 | - | 1,278 | -1,261 | -17 | - |
| Transfer to stage 2 |
-1,219 | 1,229 | -10 | - | -1,147 | 1,150 | -2 | - | -1,771 | 1,784 | -13 | - |
| Transfer to stage 3 |
-5 | -120 | 124 | - | -21 | -129 | 149 | - | -40 | -151 | 190 | - |
| Net increase/decrease amount existing loans |
-902 | -40 | -3 | -944 | -1,067 | -59 | -32 | -1,158 | -2,177 | -170 | -25 | -2,372 |
| New loans | 12,195 | 229 | 50 | 12,474 | 13,427 | 248 | 40 | 13,715 | 41,570 | 1,801 | 129 | 43,500 |
| Derecognitions | -11,990 | -581 | -69 | -12,640 | -14,473 | -582 | -61 | -15,117 | -39,465 | -1,714 | -150 | -41,329 |
| Financial assets with actual loan losses |
-0 | - | -8 | -8 | - | - | -6 | -6 | -0 | -1 | -11 | -12 |
| Closing balance | 86,232 | 4,451 | 705 | 91,389 | 85,436 | 4,113 | 606 | 90,155 | 86,972 | 4,901 | 635 | 92,508 |
| Corporate Market | ||||||||||||
| Opening balance | 47,621 | 6,460 | 1,410 | 55,491 | 41,855 | 5,768 | 2,759 | 50,382 | 41,855 | 5,768 | 2,759 | 50,382 |
| Transfer to stage 1 |
846 | -834 | -12 | - | 250 | -235 | -15 | - | 2,090 | -2,045 | -45 | - |
| Transfer to stage 2 |
-684 | 760 | -76 | - | -618 | 620 | -2 | - | -2,042 | 2,959 | -917 | - |
| Transfer to stage 3 |
-16 | -41 | 57 | - | -70 | -80 | 149 | - | -97 | -88 | 185 | - |
| Net increase/decrease amount existing loans |
119 | -68 | 1 | 52 | 419 | -86 | -14 | 319 | -761 | -329 | -13 | -1,104 |
| New loans | 5,242 | 41 | 50 | 5,333 | 6,390 | 268 | 94 | 6,752 | 19,085 | 1,751 | 109 | 20,945 |
| Derecognitions | -3,431 | -211 | -66 | -3,708 | -4,078 | -467 | -304 | -4,849 | -12,507 | -1,546 | -577 | -14,629 |
| Financial assets with actual loan losses |
0 | 0 | -4 | -4 | 0 | 0 | -31 | -31 | -3 | -8 | -91 | -102 |
| Balance at 31 December |
49,696 | 6,108 | 1,359 | 57,163 | 44,148 | 5,788 | 2,636 | 52,573 | 47,621 | 6,460 | 1,410 | 55,491 |
| Closing balance | ||||||||||||
| Fixed interest loans at FV |
4,629 | 4,629 | 4,295 | 4,295 | 4,631 | 4,631 | ||||||
| Total gross loans at the end of the period |
140,557 | 10,559 | 2,065 153,181 133,879 | 9,901 | 3,243 147,023 139,224 | 11,361 | 2,044 152,629 |
| Parent Bank | Group | |||||
|---|---|---|---|---|---|---|
| 31 Dec 2022 | 31 Mar 2022 | 31 Mar 2023 (NOKm) | 31 Mar 2023 | 31 Mar 2022 | 31 Dec 2022 | |
| 2,159 | 2,453 | 2,747 Agriculture and forestry | 2,747 | 2,453 | 2,159 | |
| 1,366 | 1,487 | 1,464 Fisheries and hunting | 1,464 | 1,487 | 1,366 | |
| 644 | 789 | 774 Sea farming industries | 774 | 789 | 644 | |
| 2,881 | 2,255 | 2,880 Manufacturing | 2,880 | 2,255 | 2,881 | |
| 5,534 | 4,552 | 4,952 Construction, power and water supply | 4,952 | 4,552 | 5,534 | |
| 6,065 | 5,452 | 4,976 Retail trade, hotels and restaurants | 4,976 | 5,452 | 6,065 | |
| 1,198 | 1,006 | 1,265 Maritime sector | 1,265 | 1,006 | 1,198 | |
| 5,645 | 5,913 | 5,810 Property management | 5,738 | 5,855 | 5,577 | |
| 13,036 | 12,452 | 13,225 Business services | 13,225 | 12,452 | 13,036 | |
| 9,364 | 9,598 | 9,912 Transport and other services provision | 9,417 | 9,158 | 8,856 | |
| 21,690 | 19,242 | 23,301 Public administration | 23,301 | 19,242 | 21,690 | |
| 4,800 | 3,929 | 3,952 Other sectors | 3,846 | 3,762 | 4,687 | |
| 74,383 | 69,127 | 75,259 Total | 74,586 | 68,463 | 73,693 | |
| 48,316 | 45,590 | 48,943 Wage earners | 48,943 | 45,590 | 48,316 | |
| 122,699 | 114,717 | 124,202 Total deposits | 123,529 | 114,053 | 122,010 |
| Parent bank | Group | |||||
|---|---|---|---|---|---|---|
| Jan - Mar | Jan - Mar | |||||
| 2022 | 2022 | 2023 (NOKm) | 2023 | 2022 | 2022 | |
| Interest income | ||||||
| 435 | 59 | 183 Interest income from loans to and claims on central banks and credit institutions (amortised cost) |
77 | 24 | 212 | |
| 2,814 | 565 | 981 Interest income from loans to and claims on customers (amortised cost) |
1,207 | 707 | 3,483 | |
| 1,879 | 368 | 725 Interest income from loans to and claims on customers (FVOCI) |
725 | 368 | 1,879 | |
| 125 | 28 | 33 Interest income from loans to and claims on customers (FVPL) |
33 | 28 | 125 | |
| 599 | 96 | 320 Interest income from money market instruments, bonds and other fixed income securities |
319 | 95 | 595 | |
| - | - | - Other interest income | 6 | 5 | 22 | |
| 5,852 | 1,115 | 2,243 Total interest income | 2,367 | 1,227 | 6,315 | |
| Interest expense | ||||||
| 260 | 30 | 126 Interest expenses on liabilities to credit institutions | 126 | 30 | 260 | |
| 1,524 | 225 | 696 Interest expenses relating to deposits from and liabilities to customers |
689 | 223 | 1,508 | |
| 1,035 | 179 | 462 Interest expenses related to the issuance of securities | 462 | 179 | 1,035 | |
| 66 | 11 | 24 Interest expenses on subordinated debt | 25 | 11 | 68 | |
| 7 | 2 | 2 Other interest expenses | 9 | 4 | 26 | |
| 79 | 20 | 21 Guarantee fund levy | 21 | 20 | 79 | |
| 2,972 | 467 | 1,331 Total interest expense | 1,332 | 468 | 2,977 | |
| 2,880 | 648 | 911 Net interest income | 1,035 | 759 | 3,339 |
| Parent bank | Jan - Mar | Group Jan - Mar |
||||
|---|---|---|---|---|---|---|
| 2022 | 2022 | 2023 (NOKm) | 2023 | 2022 | 2022 | |
| Commission income | ||||||
| 77 | 20 | 18 Guarantee commission | 18 | 20 | 77 | |
| - | - | - Broker commission | 64 | 61 | 267 | |
| 44 | 10 | 11 Portfolio commission, savings products | 11 | 10 | 44 | |
| 256 | 84 | 57 Commission from SpareBank 1 Boligkreditt | 57 | 84 | 256 | |
| 16 | 4 | 3 Commission from SpareBank 1 Næringskreditt | 3 | 4 | 16 | |
| 475 | 103 | 113 Payment transmission services | 112 | 102 | 471 | |
| 236 | 57 | 61 Commission from insurance services | 61 | 57 | 236 | |
| 88 | 21 | 18 Other commission income | 16 | 19 | 80 | |
| 1,192 | 299 | 281 Total commission income | 341 | 358 | 1,446 | |
| - | ||||||
| Commission expenses | ||||||
| 80 | 18 | 23 Payment transmission services | 24 | 18 | 80 | |
| 11 | 2 | 3 Other commission expenses | 26 | 24 | 105 | |
| 90 | 20 | 26 Total commission expenses | 50 | 42 | 186 | |
| - | ||||||
| Other operating income | ||||||
| 30 | 13 | 9 Operating income real property | 10 | 13 | 32 | |
| - | - | - Property administration and sale of property | 42 | 33 | 151 | |
| - | - | - Accountant's fees | 188 | 156 | 564 | |
| 25 | 3 | 7 Other operating income | 10 | 5 | 34 | |
| 55 | 17 | 16 Total other operating income | 249 | 206 | 781 | |
| 1,156 | 296 | 271 | Total net commission income and other operating income |
541 | 522 | 2,042 |
| Parent bank | Group | |||||
|---|---|---|---|---|---|---|
| Jan - Mar | Jan - Mar | |||||
| 2022 | 2022 | 2023 (NOKm) | 2023 | 2022 | 2022 | |
| 304 | 76 | 92 IT costs | 106 | 89 | 355 | |
| 11 | 3 | 3 Postage and transport of valuables | 4 | 4 | 14 | |
| 59 | 14 | 17 Marketing | 23 | 19 | 86 | |
| 77 | 19 | 23 Ordinary depreciation | 29 | 29 | 117 | |
| 46 | 21 | 13 Operating expenses, real properties | 16 | 22 | 55 | |
| 188 | 42 | 43 Purchased services | 53 | 52 | 217 | |
| 156 | 33 | 90 Other operating expense *) | 99 | 40 | 195 | |
| 841 | 208 | 280 Total other operating expenses | 330 | 255 | 1,038 |
*) In the first quarter of 2023, an operational loss under other operating expenses of NOK 51 million has been expensed in connection with the embezzlement case.
On 19 January SpareBank 1 SMN reported a hired replacement employee to the police for gross embezzlement. The matter was brought to light by the bank's own control systems. The embezzlement totals NOK 75m. The accused returned about NOK 9m to SpareBank 1 SMN before his arrest. The net amount taken out of SpareBank 1 SMN is accordingly just over NOK 66m. NOK 15m was returned to the bank from the police after being placed in safekeeping. SpareBank 1 SMN has insurance cover against economic crime, including embezzlement. The claim against the insurer is a contingent asset under IAS 37 which is not recognised as income since the standard requires an absence of all uncertainty as to the claim settlement before recognition can take place. The insurance policy carries a deductible of NOK 5m.
| Parent Bank | Group | |||||
|---|---|---|---|---|---|---|
| Jan - Mar | Jan - Mar | |||||
| 2022 | 2022 | 2023 (NOKm) | 2023 | 2022 | 2022 | |
| Valued at fair value through profit/loss | ||||||
| -433 | -203 | -33 Value change in interest rate instruments | -33 | -203 | -283 | |
| Value change in derivatives/hedging | ||||||
| -6 | -0 | 9 | Net value change in hedged bonds and derivatives* | 9 | -0 | -6 |
| 12 | -3 | -24 | Net value change in hedged fixed rate loans and derivatives |
-24 | -3 | 12 |
| 301 | 171 | -57 | Other derivatives | -57 | 171 | 332 |
| Income from equity instruments | ||||||
| Income from owner interests | 125 | 62 | 705 | |||
| 726 | 60 | - | Dividend from owner instruments | |||
| 8 | 4 | 5 | Value change and gain/loss on owner instruments | 2 | 4 | 13 |
| 6 | 3 | 4 | Dividend from equity instruments | 2 | 2 | 22 |
| -4 | 3 | 11 | Value change and gain/loss on equity instruments | -18 | 133 | 163 |
| 610 | 34 | -85 Total net income from financial assets and liabilities at fair value through profit/(loss) |
5 | 166 | 959 | |
| Valued at amortised cost | ||||||
| -2 | -0 | -1 Value change in interest rate instruments held to maturity | -1 | -0 | -2 | |
| -2 | -0 | -1 Total net income from financial assets and liabilities at amortised cost |
-1 | -0 | -2 | |
| 72 | 10 | 24 Total net gain from currency trading | 24 | 10 | 70 | |
| 680 | 43 | -62 Total net return on financial investments | 28 | 175 | 1,026 | |
| * Fair value hedging | ||||||
| -664 | -824 | 185 Changes in fair value on hedging instrument | 185 | -824 | -664 | |
| 657 | 824 | -176 Changes in fair value on hedging item | -176 | 824 | 657 -6 |
|
| -6 | -0 | 9 Net Gain or Loss from hedge accounting | 9 | -0 |
| Parent Bank | Group | |||||
|---|---|---|---|---|---|---|
| 31 Dec 2022 | 31 Mar 2022 | 31 Mar 2023 (NOKm) | 31 Mar 2023 | 31 Mar 2022 | 31 Dec 2022 | |
| - | 3 | - Deferred tax asset | 5 | 87 | 5 | |
| 117 | 99 | 114 Fixed assets | 227 | 223 | 232 | |
| 223 | 255 | 275 Right to use assets | 410 | 477 | 325 | |
| 87 | 119 | 143 Earned income not yet received | 192 | 183 | 104 | |
| 262 | 974 | 1,780 Accounts receivable, securities | 1,780 | 1,752 | 262 | |
| 240 | 62 | 240 Pension assets | 240 | 62 | 240 | |
| 1,164 | 338 | 694 Other assets | 953 | 600 | 1,387 | |
| 2,092 | 1,851 | 3,246 Total other assets | 3,808 | 3,384 | 2,555 |
| Parent Bank | Group | |||||
|---|---|---|---|---|---|---|
| 31 Dec 2022 |
31 Mar 2022 |
31 Mar | 2023 (NOKm) | 31 Mar 2023 |
31 Mar 2022 |
31 Dec 2022 |
| 72 | - | 72 Deferred tax | 127 | 56 | 127 | |
| 611 | 322 | 527 Payable tax | 602 | 367 | 705 | |
| 13 | 12 | 13 Capital tax | 13 | 12 | 13 | |
| 97 | 407 | 265 Accrued expenses and received, non-accrued income |
574 | 932 | 388 | |
| 427 | 542 | 619 Provision for accrued expenses and commitments | 619 | 542 | 427 | |
| 66 | 71 | 83 Losses on guarantees and unutilised credits | 83 | 71 | 66 | |
| 6 | 8 | 6 Pension liabilities | 6 | 8 | 6 | |
| 233 | 265 | 285 Lease liabilities | 421 | 492 | 339 | |
| 97 | 57 | 109 Drawing debt | 109 | 57 | 97 | |
| 73 | 240 | 81 Creditors | 159 | 377 | 116 | |
| 176 | 1,330 | 972 Debt from securities | 966 | 1,940 | 176 | |
| - | - | - Equity Instruments | - | -0 | - | |
| 196 | 1,986 | 1,139 Other liabilities | 1,201 | 2,177 | 265 | |
| 2,067 | 5,239 | 4,169 Total other liabilites | 4,880 | 7,030 | 2,725 |
Group
| Fallen | |||||
|---|---|---|---|---|---|
| 31 Dec | due/ | Other | 31 Mar | ||
| Change in securities debt (NOKm) | 2022 | Issued | Redeemed | changes | 2023 |
| Bond debt, nominal value | 42,532 | 72 | 1,227 | 2,189 | 43,567 |
| Senior non preferred, nominal value | 7,100 | 784 | - | -10 | 7,874 |
| Value adjustments | -2,438 | - | - | 26 | -2,412 |
| Accrued interest | 280 | - | - | 52 | 332 |
| Total | 47,474 | 857 | 1,227 | 2,257 | 49,361 |
| Fallen | |||||
|---|---|---|---|---|---|
| Change in subordinated debt and hybrid equity (NOKm) | 31 Dec 2022 |
Issued | due/ Redeemed |
Other changes |
31 Mar 2023 |
| Ordinary subordinated loan capital, nominal value | 2,043 | - | - | - | 2,043 |
| Value adjustments | - | - | - | - | - |
| Accrued interest | 16 | - | - | - | 16 |
| Total | 2,058 | - | - | - | 2,058 |
Fair value of financial instruments that are traded in the active markets is based on market price on the balance sheet date. A market is considered active if market prices are easily and regularly available from a stock exchange, dealer, broker, industry group, price-setting service or regulatory authority, and these prices represent actual and regularly occurring market transactions at an arm's length. This category also includes quoted shares and Treasury bills.
Level 2 consists of instruments that are valued by the use of information that does not consist in quoted prices, but where the prices are directly or indirectly observable for the assets or liabilities concerned, and which also include quoted prices in non-active markets.
If valuation data are not available for level 1 and 2, valuation methods are applied that are based on non-observable information.
| Assets (NOKm) | Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|
| Financial assets at fair value through profit/loss | ||||
| - Derivatives | - | 7,073 | - | 7,073 |
| - Bonds and money market certificates | 4,576 | 39,754 | - | 44,330 |
| - Equity instruments | 158 | 120 | 548 | 826 |
| - Fixed interest loans | - | - | 4,628 | 4,628 |
| Financial assets through other comprehensive income | ||||
| - Loans at fair value through other comprehensive income | - | - | 80,843 | 80,843 |
| Total assets | 4,734 | 46,947 | 86,019 | 137,699 |
| Liabilities | Level 1 | Level 2 | Level 3 | Total |
| Financial liabilities through profit/loss | ||||
| - Derivatives | - | 7,792 | - | 7,792 |
| - Equity instruments | - | - | - | - |
| Total liabilities | - | 7,792 | - | 7,792 |
| Assets (NOKm) | Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|
| Financial assets at fair value through profit/loss | ||||
| - Derivatives | 2 | 4,074 | - | 4,077 |
| - Bonds and money market certificates | 3,164 | 28,850 | - | 32,014 |
| - Equity instruments | 1,861 | 89 | 685 | 2,635 |
| - Fixed interest loans | - | - | 4,294 | 4,294 |
| Financial assets through other comprehensive income | ||||
| - Loans at fair value through other comprehensive income | - | - | 80,643 | 80,643 |
| Total assets | 5,027 | 33,013 | 85,623 | 123,662 |
| Liabilities | Level 1 | Level 2 | Level 3 | Total |
| Financial liabilities through profit/loss | ||||
| - Derivatives | 0 | 5,147 | - | 5,147 |
| - Equity instruments | -0 | - | - | -0 |
| Total liabilities | -0 | 5,147 | - | 5,146 |
| Assets (NOKm) | Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|
| Financial assets at fair value through profit/loss | ||||
| - Derivatives | - | 6,804 | - | 6,804 |
| - Bonds and money market certificates | 3,721 | 34,352 | - | 38,073 |
| - Equity instruments | 140 | 130 | 570 | 840 |
| - Fixed interest loans | - | - | 4,630 | 4,630 |
| Financial assets through other comprehensive income | ||||
| - Loans at fair value through other comprehensive income | - | - | 81,901 | 81,901 |
| Total assets | 3,861 | 41,285 | 87,102 | 132,248 |
| Liabilities | Level 1 | Level 2 | Level 3 | Total |
| Financial liabilities through profit/loss | ||||
| - Derivatives | - | 8,307 | - | 8,307 |
| - Equity instruments | - | - | - | - |
| Total liabilities | - | 8,307 | - | 8,307 |
The following table presents the changes in the instruments classified in level 3 as at 31 March 2023:
| Equity | Loans at | |||
|---|---|---|---|---|
| instruments through |
Fixed interest |
fair value through |
||
| (NOKm) | profit/loss | loans | OCI | Total |
| Opening balance 1 January | 570 | 4,630 | 81,901 | 87,101 |
| Investment in the period | 4 | 211 | 10,292 | 10,506 |
| Disposals in the period | -3 | -209 | -11,356 | -11,568 |
| Expected credit loss | - | - | 1 | 1 |
| Gain or loss on financial instruments | -24 | -4 | 5 | -22 |
| Closing balance 31 March 2023 | 548 | 4,628 | 80,843 | 86,019 |
| (NOKm) | Equity instruments through profit/loss |
Fixed interest loans |
Loans at fair value through OCI |
Total |
|---|---|---|---|---|
| Opening balance 1 January | 564 | 4,198 | 83,055 | 87,817 |
| Investment in the period | 3 | 460 | 11,522 | 11,985 |
| Disposals in the period | -2 | -264 | -13,944 | -14,209 |
| Expected credit loss | - | - | 11 | 11 |
| Gain or loss on financial instruments | 120 | -100 | -1 | 19 |
| Closing balance 31 March 2022 | 685 | 4,294 | 80,643 | 85,623 |
| (NOKm) | Equity instruments through profit/loss |
Fixed interest loans |
Loans at fair value through OCI |
Total |
|---|---|---|---|---|
| Opening balance 1 January | 564 | 4,198 | 83,055 | 87,817 |
| Investment in period | 17 | 1,355 | 36,461 | 37,834 |
| Disposals in the period | -2 | -752 | -37,604 | -38,358 |
| Expected credit loss | - | - | -20 | -20 |
| Gain or loss on financial instruments | -8 | -171 | 9 | -171 |
| Closing balance 31 December | 570 | 4,630 | 81,901 | 87,102 |
The valuation method applied is adapted to each financial instrument, and is intended to utilise as much of the information that is available in the market as possible.
The method for valuation of financial instruments in level 2 and 3 is described in the following:
The loans consist for the most part of fixed interest loans denominated in Norwegian kroner. The value of the fixed interest loans is determined such that agreed interest flows are discounted over the term of the loan by a discount factor that is adjusted for margin requirements. The discount factor is raised by 10 points when calculating sensitivity.
Property Loans at floating interest classified at fair value over other comprehensive income is valued based on nominal amount reduced by expected credit loss. Loans with no significant credit risk detoriation since first recognition is assessed at nominal amount. For loans with a significant increase in credit risk since first recognition or objective evidence of loss, the calculation of expected credit losses over the life of the asset is in line with loan losses for loans at amortised cost. Estimated fair value is the nominal amount reduced by expected lifetime credit loss. If the likelihood of the worst case scenario in the model is doubled, fair value is reduced by NOK 6 million.
Valuation on level 2 is based for the most part on observable market information in the form of interest rate curves, exchange rates and credit margins for the individual credit and the bond's or certificate's characteristics. For paper valued under level 3 the valuation is based on indicative prices from a third party or comparable paper.
Shares that are classified to level 3 include essentially investments in unquoted shares. Among other a total of NOK 474 million in Private Equity investments, property funds, hedge funds and unquoted shares through the company SpareBank SMN 1 Invest. The valuations are in all essentials based on reporting from managers of the funds who utilise cash flow based models or multiples when determining fair value. The Group does not have full access to information on all the elements in these valuations and is therefore unable to determine alternative assumptions.
Financial derivatives at level 2 include for the most part currency futures and interest rate and exchange rate swaps. Valuation is based on observable interest rate curves. In addition the item includes derivatives related to FRAs. These are valued with a basis in observable prices in the market. Derivatives classified to level 2 also include equity derivatives related to SpareBank 1 Markets' market-making activities. The bulk of these derivatives refer to the most sold shares on Oslo Børs, and the valuation is based on the price of the actual /underlying share and observable or calculated volatility.
| Effect from change in reasonable possible alternative |
||
|---|---|---|
| (NOKm) | Book value | assumtions |
| Fixed interest loans | 4,628 | -13 |
| Equity instruments through profit/loss* | 548 | - |
| Loans at fair value through other comprehensive income | 80,843 | -6 |
* As described above, the information to perform alternative calculations are not available
Liquidity risk is the risk that the group will be unable to refinance its debt or to finance asset increases. Liquidity risk management starts out from the group's overall liquidity strategy which is reviewed and adopted by the board of directors at least once each year. The liquidity strategy reflects the group's moderate risk profile.
The group reduces its liquidity risk through guidelines and limits designed to achieve a diversified balance sheet, both on the asset and liability side. Preparedness plans have been drawn up both for the group and the SpareBank 1 Alliance to handle the liquidity situation in periods of turbulent capital markets. The bank's liquidity situation is stress tested on a monthly basis using various maturities and crisis scenarios: bank-specific, for the financial market in general or a combination of internal and external factors. The group's objective is to survive twelve months of ordinary operations without access to fresh external funding while housing prices fall 30 per cent. In the same period minimum requirements to LCR shall be fulfilled.
The average residual maturity on debt created by issue of securities at the end of the first quarter 2023 was 3.2 years. The overall LCR at the same point was 194 per cent and the average overall LCR in the first quarter was 205 per cent. The LCR in Norwegian kroner and euro at quarter-end was 196 and 405 per cent respectively.
ECC owners share of profit have been calculated based on net profit allocated in accordance to the average number of certificates outstanding in the period. There is no option agreements in relation to the Equity Capital certificates, diluted net profit is therefore equivalent to Net profit per ECC.
| Jan - Mar | |||
|---|---|---|---|
| (NOKm) | 2023 | 2022 | 2022 |
| Adjusted Net Profit to allocate between ECC owners and Savings Bank Reserve 1) |
711 | 646 | 2,692 |
| Allocated to ECC Owners 2) | 455 | 413 | 1,722 |
| Issues Equity Captial Certificates adjusted for own certificates | 129,357,116 | 129,387,872 | 129,339,665 |
| Earnings per Equity Captial Certificate | 3.51 | 3.20 | 13.31 |
| Jan - Mar | |||
|---|---|---|---|
| 1) Adjusted Net Profit | 2023 | 2022 | 2022 |
| Net Profit for the group | 778 | 698 | 2,902 |
| adjusted for non-controlling interests share of net profit | -33 | -30 | -160 |
| Adjusted for Tier 1 capital holders share of net profit | -34 | -21 | -50 |
| Adjusted Net Profit | 711 | 646 | 2,692 |
| 2) Equity capital certificate ratio (parent bank) (NOKm) | 31 Mar 2023 | 31 Mar 2022 | 31 Dec 2022 |
|---|---|---|---|
| ECC capital | 2,597 | 2,597 | 2,597 |
| Dividend equalisation reserve | 7,877 | 7,007 | 7,007 |
| Premium reserve | 895 | 895 | 895 |
| Unrealised gains reserve | 45 | 109 | 109 |
| Other equity capital | 3 | - | - |
| A. The equity capital certificate owners' capital | 11,417 | 10,609 | 10,609 |
| Ownerless capital | 6,408 | 5,918 | 5,918 |
| Unrealised gains reserve | 25 | 62 | 62 |
| Other equity capital | 2 | - | - |
| B. The saving bank reserve | 6,435 | 5,980 | 5,980 |
| To be disbursed from gift fund | - | - | 547 |
| Dividend declared | - | - | 970 |
| Equity ex. profit | 17,852 | 16,588 | 18,106 |
| Equity capital certificate ratio A/(A+B) | 64.0 % | 64.0 % | 64.0 % |
| Equity capital certificate ratio for distribution | 64.0 % | 64.0 % | 64.0 % |
| Group (NOKm) | 1Q | 4Q | 3Q | 2Q | 1Q | 4Q | 3Q | 2Q | 1Q |
|---|---|---|---|---|---|---|---|---|---|
| 2023 | 2022 | 2022 | 2022 | 2022 | 2021 | 2021 | 2021 | 2021 | |
| Interest income effective interest method | 2,367 | 2,136 | 1,605 | 1,346 | 1,227 | 1,107 | 1,026 | 1,025 | 1,012 |
| Interest expenses | 1,332 | 1,175 | 791 | 543 | 468 | 382 | 318 | 325 | 341 |
| Net interest | 1,035 | 961 | 814 | 803 | 759 | 725 | 709 | 701 | 671 |
| Commission income | 341 | 340 | 370 | 378 | 358 | 405 | 407 | 401 | 374 |
| Commission expenses | 50 | 45 | 52 | 46 | 42 | 47 | 47 | 41 | 41 |
| Other operating income | 249 | 178 | 173 | 223 | 206 | 163 | 162 | 213 | 193 |
| Commission income and other income | 541 | 473 | 491 | 555 | 522 | 521 | 521 | 572 | 526 |
| Dividends | 2 | 19 | 8 | 4 | 2 | 1 | 1 | 17 | 4 |
| Income from investment in related companies | 125 | 195 | 108 | 77 | 62 | 186 | 179 | 212 | 128 |
| Net return on financial investments | -99 | -52 | -30 | -123 | 111 | -19 | 37 | 1 | 93 |
| Net return on financial investments | 28 | 163 | 86 | -43 | 175 | 168 | 217 | 230 | 224 |
| Total income | 1,604 | 1,597 | 1,391 | 1,316 | 1,456 | 1,414 | 1,447 | 1,503 | 1,422 |
| Staff costs | 398 | 333 | 348 | 350 | 375 | 342 | 341 | 343 | 352 |
| Other operating expenses | 330 | 314 | 235 | 235 | 255 | 267 | 246 | 235 | 234 |
| Total operating expenses | 728 | 646 | 583 | 585 | 629 | 609 | 586 | 579 | 586 |
| Result before losses | 875 | 951 | 808 | 731 | 827 | 805 | 861 | 924 | 836 |
| Loss on loans, guarantees etc. | -71 | 19 | 22 | -48 | -0 | 32 | 31 | 39 | 59 |
| Result before tax | 946 | 932 | 785 | 779 | 827 | 773 | 830 | 885 | 777 |
| Tax charge | 206 | 210 | 179 | 164 | 166 | 103 | 174 | 156 | 131 |
| Result investment held for sale, after tax | 38 | 46 | 10 | 87 | 37 | 33 | 19 | 26 | 122 |
| Net profit | 778 | 768 | 617 | 702 | 698 | 703 | 675 | 755 | 768 |
| Group (NOKm) | 1Q | 4Q | 3Q | 2Q | 1Q | 4Q | 3Q | 2Q | 1Q |
|---|---|---|---|---|---|---|---|---|---|
| 2023 | 2022 | 2022 | 2022 | 2022 | 2021 | 2021 | 2021 | 2021 | |
| Profitability | |||||||||
| Return on equity per quarter 1) | 13.0% | 13.1% | 10.9% | 12.9% | 12.6% | 12.7% | 12.4% | 14.3% | 14.8% |
| Cost-income ratio 1) | 45 % | 40 % | 42 % | 44 % | 43 % | 43 % | 41 % | 39 % | 41 % |
| Balance sheet figures | |||||||||
| Gross loans to customers | 153,181 152,629 150,247 148,681 147,023 147,301 143,972 141,935 137,471 | ||||||||
| Gross loans incl. SB1 Boligkreditt and SB1 Næringskreditt |
213,967 211,244 208,900 205,504 199,965 195,353 191,976 189,015 185,342 | ||||||||
| Deposit from customers | 123,529 122,010 120,558 123,812 114,053 111,286 109,691 110,133 102,390 | ||||||||
| Total assets | 228,207 223,312 218,918 217,458 207,027 198,845 200,124 200,426 193,822 | ||||||||
| Quarterly average total assets | 225,759 221,115 218,188 212,243 202,936 199,492 200,275 197,124 190,867 | ||||||||
| Growth in loans incl. SB1 Boligkreditt and SB1 Næringskredtt last 12 months 1) |
1.3 % | 1.1 % | 1.7 % | 2.8 % | 2.4 % | 1.8 % | 1.6 % | 2.0 % | 1.4 % |
| Growth in deposits last 12 months | 1.2 % | 1.2 % | -2.6 % | 8.6 % | 2.5 % | 1.5 % | -0.4 % | 7.6 % | 5.0 % |
| Losses in % of gross loans incl. SB1 Boligkreditt and SB1 Næringskreditt |
|||||||||
| Impairment losses ratio 1) | -0.13 % | 0.04 % | 0.04 % -0.09 % | 0.00 % | 0.07 % | 0.07 % | 0.08 % | 0.13 % | |
| Stage 3 as a percentage of gross loans 1) | 0.96 % | 0.97 % | 1.02 % | 1.08 % | 1.62 % | 1.68 % | 1.80 % | 1.87 % | 1.66 % |
| Solidity | |||||||||
| Common equity Tier 1 capital ratio | 18.2 % | 18.9 % | 19.2 % | 18.8 % | 18.3 % | 18.0 % | 18.1 % | 18.3 % | 18.0 % |
| Tier 1 capital ratio | 20.1 % | 20.9 % | 20.8 % | 20.4 % | 19.8 % | 19.6 % | 19.7 % | 20.0 % | 19.7 % |
| Capital ratio | 22.2 % | 23.1 % | 23.0 % | 22.7 % | 21.9 % | 21.6 % | 21.8 % | 22.2 % | 21.9 % |
| Tier 1 capital | 21,985 | 21,835 | 21,252 | 20,547 | 19,797 | 19,322 | 19,265 | 19,011 | 18,636 |
| Total eligible capital | 24,298 | 24,147 | 23,546 | 22,910 | 21,839 | 21,333 | 21,338 | 21,105 | 20,741 |
| Liquidity Coverage Ratio (LCR) | 194 % | 239 % | 180 % | 204 % | 155 % | 138 % | 163 % | 184 % | 190 % |
| Leverage Ratio | 6.9 % | 7.1 % | 7.3 % | 6.9 % | 7.0 % | 6.9 % | 6.9 % | 7.0 % | 7.0 % |
| Key figures ECC | |||||||||
| ECC share price at end of period (NOK) | 123.60 | 127.40 | 111.40 | 115.80 | 141.20 | 149.00 | 129.80 | 119.20 | 107.40 |
| Number of certificates issued, millions 1) | 129.43 | 129.29 | 129.29 | 129.31 | 129.39 | 129.39 | 129.39 | 129.36 | 129.22 |
| Booked equity capital per ECC (NOK) 1) | 105.63 | 109.86 | 107.19 | 102.91 | 99.55 | 103.48 | 103.57 | 100.18 | 96.70 |
| Profit per ECC, majority (NOK) 1) | 3.51 | 3.53 | 2.89 | 3.20 | 3.20 | 3.20 | 3.22 | 3.51 | 3.40 |
| Price-Earnings Ratio (annualised) 1) | 8.79 | 9.02 | 9.62 | 9.06 | 11.05 | 11.65 | 10.09 | 8.50 | 7.91 |
| Price-Book Value Ratio 1) | 1.17 | 1.16 | 1.04 | 1.13 | 1.42 | 1.44 | 1.25 | 1.19 | 1.11 |
1) Defined as alternative performance measures, see attachment to the quarterly report.
1 March 2021 to 31 March 2023
OSEBX = Oslo Stock Exchange Benchmark Index (rebased) OSEEX = Oslo Stock Exchange ECC Index (rebased)
1 April 2022 to 31 March 2023
Total number of ECs traded (1000)
| 20 largest ECC holders | No. Of ECCs | Holding |
|---|---|---|
| Sparebankstiftelsen SMN | 3,965,391 | 3.05 % |
| KLP | 3,302,912 | 2.54 % |
| Pareto Aksje Norge VPF | 3,081,093 | 2.37 % |
| VPF Odin Norge | 2,987,707 | 2.30 % |
| VPF Eika Egenkapitalbevis | 2,813,786 | 2.17 % |
| Pareto Invest Norge AS | 2,790,803 | 2.15 % |
| J. P. Morgan Securities plc | 2,635,011 | 2.03 % |
| J. P. Morgan Chase Bank, N.A., London | 2,555,343 | 1.97 % |
| State Street Bank and Trust Comp | 2,538,938 | 1.96 % |
| VPF Alfred Berg Gamba | 2,269,698 | 1.75 % |
| VPF Nordea Norge | 2,203,686 | 1.70 % |
| State Street Bank and Trust Comp | 2,032,211 | 1.57 % |
| Danske Invest Norske Aksjer Institusjon II | 2,027,190 | 1.56 % |
| Forsvarets personellservice | 2,014,446 | 1.55 % |
| J. P. Morgan SE | 1,802,526 | 1.39 % |
| Spesialfondet Borea Utbytte | 1,773,713 | 1.37 % |
| RBC Investor Services Trust | 1,586,047 | 1.22 % |
| VPF Holberg Norge | 1,405,000 | 1.08 % |
| MP Pensjon PK | 1,352,771 | 1.04 % |
| Morgan Stanley & Co. International | 1,271,977 | 0.98 % |
| The 20 largest ECC holders in total | 46,410,249 | 35.75 % |
| Others | 83,426,194 | 64.25 % |
| Total issued ECCs | 129,836,443 | 100.00 % |
SpareBank 1 SMN aims to manage the Group's resources in such a way as to provide equity certificate holders with a good, stable and competitive return in the form of dividend and a rising value of the bank's equity certificate.
The net profit for the year will be distributed between the owner capital (the equity certificate holders) and the ownerless capital in accordance with their respective shares of the bank's total equity capital.
SpareBank 1 SMN's intention is that about one half of the owner capital's share of the net profit for the year should be disbursed in dividends and, similarly, that about one half of the owner capital's share of the net profit for the year should be disbursed as gifts or transferred to a foundation. This is on the assumption that capital adequacy is at a satisfactory level. When determining dividend payout, account will be taken of the profit trend expected in a normalised market situation, external framework conditions and the need for tier 1 capital.
To the Board of Sparebank 1 SMN
We have reviewed the accompanying consolidated interim balance sheet of Sparebank 1 SMN as of 31 March 2023, and the related consolidated income statement, the statement of changes in equity and the cash flow statement for the three-month period then ended, and a summary of significant accounting policies and other explanatory notes. Management is responsible for the preparation of this interim financial information that gives a true and fair view in accordance with IAS 34 Interim Financial Reporting. Our responsibility is to express a conclusion on this interim financial information based on our review.
We conducted our review in accordance with International Standard on Review Engagements 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (ISAs), and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Based on our review, nothing has come to our attention that causes us to believe that the accompanying consolidated interim financial information does not, in all material respects, give a true and fair view of the financial position of the entity as at 31 March 2023, and of its financial performance and its cash flows for the three-month period then ended in accordance with IAS 34 Interim Financial Reporting.
Trondheim, 9 May 2023 PricewaterhouseCoopers AS
Rune Kenneth S. Lædre State Authorised Public Accountant
Note: This translation from Norwegian has been prepared for information purposes only.
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