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SpareBank 1 SMN
Quarterly Report • Feb 12, 2025
3751_rns_2025-02-12_0ea67d31-b62a-4780-bd75-a13af96342ea.pdf
Quarterly Report
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Fourth Quarter Report 2024
CONTENTS
| MAIN FIGURES | 3 |
|---|---|
| REPORT OF THE BOARD OF DIRECTORS | 5 |
| INCOME STATEMENT | 15 |
| BALANCE SHEET | 17 |
| CASH FLOW STATEMENT | 19 |
| CHANGES IN EQUITY | 21 |
| NOTES | 25 |
| RESULTS FROM QUARTERLY ACCOUNTS | 57 |
| KEY FIGURES FROM QUARTERLY ACCOUNTS | 58 |
| EQUITY CAPITAL CERTIFICATES | 60 |
Cover Photo: Nidelva, Trondheim
Photo: Ila, Trondheim
Main Figures
| 4Q | January - December | |||
|---|---|---|---|---|
| From the income statement (NOKm) | 2024 | 2023 | 2024 | 2023 |
| Net interest | 1,372 | 1,345 | 5,373 | 4,732 |
| Net commission income and other income | 580 | 499 | 2,392 | 2,085 |
| Net return on financial investments | 283 | 538 | 1,357 | 699 |
| Total income | 2,235 | 2,383 | 9,123 | 7,516 |
| Total operating expenses | 901 | 866 | 3,300 | 3,018 |
| Results before losses | 1,335 | 1,517 | 5,823 | 4,498 |
| Loss on loans, guarantees etc | 30 | 20 | 176 | 14 |
| Results before tax | 1,305 | 1,496 | 5,647 | 4,484 |
| Tax charge | 253 | 262 | 1,054 | 904 |
| Result investment held for sale, after tax | -1 | 12 | -2 | 108 |
| Net profit | 1,052 | 1,247 | 4,591 | 3,688 |
| Interest Tier 1 Capital | 43 | 40 | 146 | 125 |
| Net profit excl. Interest Tier 1 Capital | 1,009 | 1,207 | 4,446 | 3,563 |
| 31 Dec 2024 |
31 Dec 2023 |
|---|---|
| 180,102 | 169,862 |
| 249,350 | 236,329 |
| 140,897 | 132,889 |
| 241,090 | 235,303 |
| 247,699 | 232,717 |
Key figures
| 4Q | January - December | ||||||
|---|---|---|---|---|---|---|---|
| Profitability 1) | 2024 | 2023 | 2024 | 2023 | Solidity | 31 Dec 2024 | 31 Dec 2023 |
| Return on equity | 14.4 % |
18.3 % |
16.6 % |
14.4 % |
Capital ratio | 22.8 % |
23.0 % |
| Cost-income ratio | 46% | 47% | 42% | 44% | Tier 1 capital ratio | 20.2 % |
20.8 % |
| Deposit-to-loan ratio excl. SB1 Boligkreditt and SB1 Næringskreditt |
78% | 78% | 78% | 78% | Common equity Tier 1 capital ratio |
18.3 % |
18.8 % |
| Deposit-to-loan ratio incl. SB1 Boligkreditt and SB1 | 57% | 59% | 57% | 56% | Tier 1 capital | 24,769 | 23,793 |
| Næringskreditt | Total eligible capital | 28,004 | 26,399 | ||||
| Growth in loans (gross) last 12 months (incl. SB1 Bolig kreditt and SB1 Næringskreditt) |
0.9 % |
0.9 % |
5.5 % |
11.9 % |
Liquidity Coverage Ratio (LCR) | 183% | 175% |
| Growth in deposits last 12 months | 2.1 % |
−3.9 % |
6.0 % |
8.9 % |
Leverage Ratio | 7.0 % |
7.2 % |
| MREL | 52.8 % |
67.8 % |
|||||
| Losses in % of gross loans incl. SB1 Boligkreditt and SB1 Næringskreditt 1) |
MREL, substituted | 35.8 % |
35.9 % |
||||
| NSFR | 125.0 % |
127.0 % |
|||||
| Impairment losses ratio | 0.05% | 0.03% | 0.07% | 0.01% | |||
| Stage 3 as a percentage of gross loans | 0.89% | 0.88% | 0.89% | 0.88% | Branches and staff | ||
| Number of branches | 47 | 46 | |||||
| No. Of full-time positions | 1,660 | 1,545 |
| Key figures ECC | 31/12/2024 | 31/12/2023 | 31/12/2022 | 31/12/2021 | 31/12/2020 |
|---|---|---|---|---|---|
| ECC ratio | 67% | 67% | 64% | 64% | 64% |
| Number of certificates issued, millions 1) | 144.21 | 144.20 | 129.29 | 129.39 | 129.39 |
| ECC share price at end of period (NOK) | 171.32 | 141.80 | 127.40 | 149.00 | 97.60 |
| Stock value (NOKM) | 24,706 | 20,448 | 16,471 | 19,279 | 12,629 |
| Booked equity capital per ECC (including dividend) 1) | 128.09 | 120.48 | 109.86 | 103.48 | 94.71 |
| Profit per ECC, majority 1) | 20.60 | 16.88 | 12.82 | 13.31 | 8.87 |
| Dividend per ECC | 12.50 | 12.00 | 6.50 | 7.50 | 4.40 |
| Price-Earnings Ratio 1) | 8.32 | 8.40 | 9.94 | 11.19 | 11.01 |
| Price-Book Value Ratio 1) | 1.34 | 1.18 | 1.16 | 1.44 | 1.03 |
1) Defined as alternative performance measures, see attachment to quarterly report
Report of the Board of Directors
Fourth quarter 2024
(Consolidated figures. Figures in parenthesis refer to the same period of 2023 unless otherwise stated.
- Pre-tax profit NOK 1,305m (1,496m)
- Net profit NOK 1,052m (1,247m)
- Return on equity 14.4% (18.3%)
- CET1 ratio 18.3% (18.8%)
- Growth in lending 0.9% (0.9%) and in deposits 2.1% (minus 3.9%)
- Lending to the bank's retail customers rose 1.5% in the quarter (0.8%), 0.2 percentage points higher growth than in the third quarter. Lending to the bank's corporate clients decreased 0.4% (1.0% growth) which was 4.9 percentage points lower growth than in the third quarter
- Deposits from retail customers rose 1.3% (1.1%), 2.3 percentage points higher growth than in the third quarter. Deposits from corporate clients rose 2.5% (reduction of 10%). This is 3.3 percentage points higher growth than in the third quarter
- Net result of ownership interests was NOK 227m (90m)
- Net result of financial instruments (incl. dividends) was NOK 56m (448m)
- Losses on loans and guarantees: NOK 30m (20m)
- Earnings per equity certificate (EC): NOK 4.67 (5.62).
- Book value per EC: NOK 128.09 (120.48)
Preliminary annual accounts 2024
- Pre-tax profit: NOK 5,647m (4,484m)
- Net profit: NOK 4,591m (3,688m)
- Return on equity: 16.6% (14.4%)
- Without the NOK 452m gain related to the merger between Fremtind and Eika Forsikring, the net profit would have been NOK 4,139, and return on equity 15.0%
- Growth in lending: 5.5% (11.9%) and in deposits: 6.0% (8.9%) in the last 12 months
- Growth in lending to the bank's retail customers was 5.0% (13.1%) in the last 12 months. Growth lending to corporates was 7.5% (10.4%) in the last 12 months
- Lending to wage earners accounts for 67% (68%) of total lending
- Deposits from retail customers rose 7.5% (17.6%) in the last 12 months. Deposits from corporate clients rose 10.7% (0.1%) in the last 12 months
- Net result of ownership interests: NOK 1,254m (297m)
- Net result of financial instruments (incl. dividends): NOK 103m (402m)
- Losses on loans and guarantees: NOK 176m (14m), 0.07% (0.01%) of gross lending
- Earnings per EC: NOK 20.60 (16.88)
- The board of directors proposes a cash dividend of NOK 12.50 per EC (12.00) which is 61% of the net profit, and a community dividend of NOK 896m (860m).
Events in the quarter
Unchanged base rate and changes to the lending regulations
Norges Bank, the central bank, kept its base rate unchanged at 4.50 in December 2024. The central bank's own forecasts indicate that the base rate will be lowered gradually as from the first quarter of 2025.
The 12-month rate of growth in the consumer price index (CPI) was 2.2 per cent at the end of the fourth quarter 2024. Underlying inflation in the same period in terms of the consumer price index adjusted for changes in indirect taxes and excluding energy products (CPI-ATE) was 2.7 per cent. The wholly unemployed share of the labour force remains at a low level. The wholly unemployed share stands at 1.8 per cent both in Trøndelag and Møre and Romsdal. At national level the share is 2.0 per cent.
After a period of reduced, but positive credit growth to households, the twelve-month rate of credit growth to households has risen to 3.7 per cent as at December 2024. The corresponding figure for non-financial undertakings is 1.3 per cent. Norges Bank expects 3.8 per cent growth in household debt in 2025. In December 2024 the government decided to lower the minimum deposit required for residential mortgages from 15 to 10 per cent. It was also decided to allow banks to take account of income growth in the interest rate lock-in period for borrowers with a fixed interest mortgage when stress testing such mortgages.
The regional indicator in Norges Bank's regional network survey continues to show improvement for Mid Norway, and is neutral as at December 2024. For Region North West the indicator is positive. The building and construction industry continues to show the weakest prospects due to high financing and construction costs.
Regulatory changes
The updated Capital Requirements Regulation (CRR3) will enter into force in the EEA Agreement once any constitutional reservations have been lifted. In addition, a risk weight floor of 25 per cent has been introduced for residential mortgages which will enter into force on 1 July 2025.
The above changes will in isolation reduce SpareBank 1 SMN's CET1 ratio by about 1.0 percentage point. At the end of the fourth quarter 2024 the CET1 ratio was 18.3 per cent. SpareBank 1 SMN will remain solidly capitalised after implementation of CRR3 and the new risk weight floor for residential mortgages.
Changes in organisation and strengthening of the finance centre model
The group maintains its focus on "One SMN", and the finance centre model is further strengthened. Twenty-six finance centres have been established in SpareBank 1 SMN's catchment area, each one co-locating all four business lines in the group. This will further strengthen synergy efforts across the group and elevate the customer experience through a holistic offering of banking, accounting and estate agency services.
As from 1 January 2025 the bank will switch from three to two business divisions: Retail Banking and Corporate Banking. Agriculture will at the same time be transferred from the Retail Banking to the Corporate Banking Division.
Establishment in Kristiansund
SpareBank 1 SMN is establishing a new finance centre in Kristiansund. As from March 2025, customers in Kristiansund can access the group's services at the newly opened Campus Kristiansund. In conjunction with the new establishment, SpareBank 1 Regnskapshuset SMN has acquired Meese AS, a Kristiansund accounting firm.
"Svindeljegeren" podcast launched
As a part of its anti-fraud effort, SpareBank 1 SMN launched in the fourth quarter the podcast "Svindeljegeren" which spotlights various types of fraud perpetrated against customers.
Ski world championships
"Road to the World Championships" was among the initiatives to combine a focus on public health with SpareBank 1 sponsorship of the 2025 Ski World Championship. In collaboration with local sports clubs – and with support from the community dividend fund – lectures, a stage show and a mini world championship were organised at 10 different locations in SpareBank 1 SMN's catchment area. The activities were a mix of professional refills and activities related to mental health and physical health, aimed at cheering one another on and creating a festive occasion.
Results in the fourth quarter
The fourth quarter 2024 was another strong quarter for the group. The net profit of NOK 1,052m was driven by continued strong net interest income and solid contributions from ownership interests. Return on equity in the quarter was 14.4 per cent.
The central bank's base rate remained unchanged throughout 2024. Net interest income rose as a result of increased average loan volume in the quarter.
Strong payment incomes at the bank brought in aggregate higher net commission and other incomes for the group compared with the previous quarter. SpareBank 1 Regnskapshuset SMN and EiendomsMegler 1 Midt-Norge delivers turnover growth compared to the same period last year, but the fourth quarter is influenced by lower activity in line with the seasonal variations in these industries. Commission income from the residential mortgage company was reduced as a result of lower margins on sold loans.
The result from related companies is on a par with the previous quarter, excluding recognition of the gain from the merger between Fremtind and Eika in the third quarter. Group expenses in the fourth quarter rose compared with the previous quarter. Capital tax and increased employer national insurance contributions account for the bulk of the increase.
Losses on loans in the fourth quarter remain on a moderate level. The CET1 ratio at quarter-end was 18.3 per cent, which is well above the group's own target and regulatory requirements.
SPAREBANK 1 SMN
Proposed distribution of the net profit
It is the group's results exclusive of interest on hybrid capital, along with non-controlling ownership interests' share of the profit, which comprise the basis for distribution of the net profit for the year; the distribution is done at the parent bank.
The net profit is distributed between the ownerless capital and the equity certificate (EC) capital in proportion to their relative shares of total equity. Earnings per equity certificate were NOK 20.60. Given the bank's solid capitalisation, regulatory changes and prospects for profitable operation, the board of directors recommends a cash dividend of NOK 12.50 per equity certificate (EC). This makes for a payout ratio of 61 per cent of the group's net profit. The bank's long-term dividend policy is to distribute about 50 per cent of distributable profit. This policy stands firm.
The board of directors further recommends an allocation of NOK 896m to community dividend. Of this amount, NOK 240m is to be transferred to non-profit causes and NOK 656m to the foundation Sparebankstiftelsen SMN. NOK 206m and NOK 102m are to be transferred to the dividend equalisation fund and the ownerless capital respectively.
| 2024 | 2023 | |
|---|---|---|
| Profit for the year, Group | 4,591 | 3,688 |
| Interest hybrid capital (after tax) | −137 | −122 |
| Profit for the year excl interest hybrid capital, group | 4,454 | 3,566 |
| Profit, subsidiaries | −387 | −408 |
| Dividend, subsidiaries | 117 | 302 |
| Profit, associated companies | −1,254 | −297 |
| Dividend, associated companies | 201 | 391 |
| Group eliminations | 14 | 2 |
| Profit for the year excl interest hybrid capital, Parent bank | 3,146 | 3,557 |
| Distribution of profit | 2024 | 2023 |
| Profit for the year excl interest hybrid capital, Parent bank | 3,146 | 3,557 |
| Transferred to/from revaluation reserve | −139 | −37 |
| Profit for distribution | 3,007 | 3,520 |
| Dividends | 1,803 | 1,731 |
| Equalisation fund | 206 | 621 |
| Saving Bank's fund | 102 | 308 |
| Gifts | 896 | 860 |
| Total distributed | 3,007 | 3,520 |
The parent bank's disposable profit includes dividends received from subsidiaries, related companies and joint ventures, and is adjusted for interest expenses on hybrid capital.
Subsidiaries are fully consolidated in the group accounts, whereas profit shares from related companies and joint ventures are consolidated using the equity method. Dividends are accordingly not included in the group results. The net annual profit for distribution reflects changes of NOK 139m in the unrealised gains reserve.
The total amount for distribution is accordingly NOK 3,007m. After distribution of the net profit for 2024, the ratio of EC capital to total equity remains 66.8 per cent.
Net interest income
Market interest rates in terms of NIBOR were relatively stable over the quarter. Three-month NIBOR averaged 4.69 per cent in the fourth quarter. Net interest income totalled NOK 1,372m (1,345m) compared with NOK 1,355m in the third quarter, an increase of 1.3 per cent. Net interest income rose as a result of increased loan volume in the quarter, which is offset by somewhat lower margins both on loans and deposits.
Net interest income and commission from the captive mortgage companies rose by in aggregate NOK 11m from the third quarter, corresponding to an increase of 0.8 per cent.
Commission income and other operating income
SpareBank 1 SMN's strategy of exploiting the breadth present in the group and expanding interaction across the respective business lines stands firm. This is achieved inter alia through co-location of services in finance centres. A high proportion of multi-product customers contributes to a capital-efficient, diversified income flow and high customer satisfaction.
| Commission income (NOKm) | 4Q 2024 | 3Q 2024 | 4Q 2024 |
|---|---|---|---|
| Payment transfers | 107 | 79 | 101 |
| Creditcard | 18 | 18 | 14 |
| Saving products | 13 | 13 | 11 |
| Insurance | 69 | 67 | 61 |
| Guarantee commission | 17 | 16 | 16 |
| Real estate agency | 112 | 127 | 98 |
| Accountancy services | 160 | 145 | 152 |
| Other commissions | 16 | 13 | 23 |
| Commissions ex SB1 Boligkreditt and SB1 Næringskreditt |
512 | 478 | 475 |
| Commissions SB1 Boligkreditt | 65 | 71 | 19 |
| Commissions SB1 Næringskreditt | 3 | 3 | 4 |
| Total commissions | 580 | 553 | 498 |
Commission income excluding the captive mortgage companies rose by NOK 33m from the previous quarter, and by NOK 37m from the same quarter of 2023. The increase in commission income compared with the third quarter is driven in particular by incomes from payment services and accounting services, whereas income from estate agency services diminished in keeping with seasonal variations in the housing market. Commission income excluding mortgage companies rose 7.7 per cent compared with the fourth quarter 2023.
In the case of loans sold to SpareBank 1 Boligkreditt and SpareBank 1 Næringskreditt the bank receives a commission corresponding to the loan interest less the funding and operating expenses of those companies.
Return on financial investments
Return on financial investments in the fourth quarter was NOK 40m (458m).
Capital gains on shares are related to unrealised value changes, and totalled NOK 44m in the quarter. The gain on shares in the fourth quarter 2023 was driven by NOK 414m related to the disinvestment from SpareBank 1 Markets.
Financial instruments, including bonds and CDs, showed a capital loss of NOK 47m (capital loss of 41m) while income from foreign exchange transactions totalled NOK 42m (27m).
| Return on financial investments (NOKm) |
4Q 2024 | 3Q 2024 | 4Q 2024 |
|---|---|---|---|
| Capital gains/losses shares | 44 | -1 | 472 |
| Gain/(loss) on financial instruments | -47 | -45 | -41 |
| Foreign exchange gain/(loss) | 42 | 24 | 27 |
| Net return on financial instruments | 40 | -22 | 458 |
Associated companies
SpareBank 1 SMN has a broad and well-diversified income platform. The group offers its customers a broad product range through product companies, both through direct ownership and through ownership of the SpareBank 1 Group, which provide commission income along with return on invested capital.
The overall profit share from the product companies and other associated companies was NOK 227m (90m) in the quarter. In the third quarter 2024 the corresponding figure was NOK 685m.
| Income from investment in associated companies (NOKm) |
4Q 2024 | 3Q 2024 | 4Q 2024 |
|---|---|---|---|
| SpareBank 1 Gruppen (19,5 %) | 99 | 86 | -51 |
| Gevinst forsikringsfusjon Fremtind/Eika | - | 452 | - |
| SpareBank 1 Boligkreditt (23,2 %) | 23 | 37 | 30 |
| SpareBank 1 Næringskreditt (12,7 %) | 4 | 3 | 1 |
| BN Bank (35,0 %) | 68 | 77 | 73 |
| SpareBank 1 Markets (39,9 %) | 19 | 20 | 19 |
| SpareBank 1 Kreditt (17,9 %) | -5 | -3 | -3 |
| SpareBank 1 Betaling (21,9 %) | -4 | -1 | -8 |
| SpareBank 1 Forvaltning (21,5 %) | 17 | 13 | 12 |
| Other companies | 4 | 1 | 16 |
| Income from investment in associated companies |
227 | 685 | 90 |
SpareBank 1 Alliance
The SpareBank 1 Alliance is Norway's second largest financial services grouping. It is a banking and product collaboration designed to ensure the banks in the SpareBank 1 Alliance economies of scale and access to competitive financial services and products. The Alliance collaboration is driven through its ownership of the SpareBank 1 Group which owns and manages several of the product companies, and through its participation in SpareBank 1 Utvikling which develops and delivers shared products and services.
SpareBank 1 Gruppen posted a net profit of NOK 993m (65m) in the fourth quarter, of which SpareBank 1 SMN's share of the controlling interest's net profit was NOK 99m (minus 51m).
The most important companies in the SpareBank 1 Gruppen (SpareBank 1 Gruppen's holding in parenthesis):
- Fremtind Forsikring (51,4 prosent) offers non-life and personal insurance coverage and is headquartered in Oslo. The company posted a profit of NOK 964m (912m) after tax in the fourth quarter.
- SpareBank 1 Forsikring (100 prosent) is a pension company headquartered in Oslo. The company mainly offers contribution-based occupational pensions, collective disability insurance and private pension saving. SpareBank 1 Forsikring reported a net profit of NOK 50m (83m) in the fourth quarter.
- SpareBank 1 Factoring (100 prosent) offers administrative and financial factoring services. The company is headquartered in Ålesund. The company posted a fourthquarter net profit of NOK 23m (22m) in the fourth quarter.
• Kredinor (69,0 prosent) is Norway's largest debt collection company and a subsidiary of the SpareBank 1 Group. Kredinor reported a loss of NOK 62m, driven by a write-down due to new tax rules governing deductions of interest on consumer loans in Sweden. As a result of the final purchase price allocation following the change in ownership structure in April 2024, the SpareBank 1 Group has reversed the write-down of intangible assets amounting to NOK 85 million. The initial write-down was done in the third quarter of 2024. Additionally, NOK 74 million more than what is recognised as income in Kredinor's consolidated financial statements has been recognised in the SpareBank 1 Group's financial statements due to lower fair value of the Kredinor portfolio in the SpareBank 1 Group's final purchase price allocation.
SpareBank 1 Forvaltning delivers products and services to a broad range of clients in the field of capital management and securities services. SpareBank 1 SMN's profit share in the fourth quarter was NOK 17m (12m).
SpareBank 1 Boligkreditt is a mortgage company that issues covered bonds secured by residential mortgages with a view to stable financing and low financing costs. SpareBank 1 SMN's profit share was NOK 23m (30m) in the quarter.
SpareBank 1 Næringskreditt is a mortgage company that issues covered bonds secured by commercial mortgages with a view to stable financing and low financing costs. SpareBank 1 SMN's profit share was NOK 4m (1m) in the quarter.
SpareBank 1 Kreditt offers unsecured finance to retail customers. SpareBank 1 SMN's profit share in the fourth quarter was minus NOK 5m (minus 3m). From 2025, the company has merged with Eika Kredittbank, obtained a banking licence, and operates under the name Kredittbanken.
BN Bank offers residential mortgages and loans to commercial property and its main market is south-eastern Norway. SpareBank 1 SMN's share of BN Bank's net profit was NOK 68m (73m) in the quarter.
SpareBank 1 Markets is a leading Norwegian investment firm. The company offers services in the fields of equity and credit analysis, equity and bond trading and services in the corporate finance area. SpareBank 1 SMN's share of SpareBank 1 Markets' profit was NOK 19m (19m).
SpareBank 1 Betaling is the SpareBank 1 banks' parent company in Vipps AS. SpareBank 1 SMN's profit share was minus NOK 4m (minus 8m) in the fourth quarter.
Operating expenses
The group aims for a cost-income ratio below 40 per cent at the bank and below 85 per cent at the subsidiaries EiendomsMegler 1 Midt-Norge and SpareBank 1 Regnskapshuset SMN. The cost-income ratio is defined as the ratio of operating expenses to net interest income and commission and other income.
The bank's cost-income ratio was 38.1 per cent in the quarter (39.8 per cent). The
corresponding figures for EiendomsMegler 1 Midt-Norge and SpareBank 1 Regnskapshuset SMN were 101 (107) and 103 (95) per cent respectively.
| Operating expenses (NOKm) | 4Q 2024 | 3Q 2024 | 4Q 2024 |
|---|---|---|---|
| Staff costs | 516 | 498 | 476 |
| IT costs | 83 | 108 | 132 |
| Marketing | 30 | 23 | 21 |
| Ordinary depreciation | 48 | 44 | 47 |
| Operating expenses, real properties | 10 | 14 | 11 |
| Purchased services | 98 | 61 | 71 |
| Merger expenses | - | - | 18 |
| Other operating expense | 116 | 62 | 90 |
| Total operating expenses | 901 | 810 | 866 |
Overall group expenses rose NOK 35m from the fourth quarter of 2023 and by NOK 91m compared with the previous quarter.
The subsidiaries' expenses rose NOK 39m compared with the same period of 2023. The increase was primarily driven by increased personnel expenses. This is due primarily to acquisitions by SpareBank 1 Regnskapshuset SMN along with improved market conditions and ensuing higher remuneration at EiendomsMegler 1 Midt-Norge.
The bank's expenses were reduced by NOK 4m compared with the fourth quarter 2023. The fourth quarter 2023 contained a number of one-time effects, including costs related to the merger with SpareBank 1 Søre Sunnmøre. Expenses in the fourth quarter 2024 are impacted by capital tax of NOK 38m (22m). Moreover, the fourth quarter saw the expensing of increased employer's national insurance contributions in an amount of NOK 22m. The increase is due to the recalculation of such contributions referring to the period 2019 to 2024 since regional differentiation of employer's national insurance contribution rates had been incorrectly applied.
The bank's expenses rose NOK 78m from the previous quarter of which capital tax and higher employer national insurance contributions account for NOK 60m. The bank's overall expenses in 2024 are 6.4 per cent higher than in 2023. When adjusted for higher capital tax and the one-time expense related to employer national insurance contributions mentioned above, expense growth at the bank comes to 4.5 per cent.
Group expenses for the year are 9.3 per cent higher than last year, of which 55 per cent of the increase refers to the subsidiaries.
Losses on loans and guarantees
The group's losses on loans and guarantees totalled NOK 30m (NOK 20m) in the fourth quarter 2024.
SPAREBANK 1 SMN
| Impairment losses (NOKm) | 4Q 2024 | 3Q 2024 | 4Q 2024 |
|---|---|---|---|
| Retail market in parent bank | 1 | 14 | -2 |
| Corporate market in parent bank | 31 | 49 | -25 |
| SpareBank 1 Finans Midt-Norge | -2 | 12 | 47 |
| Total impairment losses | 30 | 75 | 20 |
Losses in the quarter break down to NOK 28m in Stage 1 and 2 and NOK 2m in Stage 3. Losses in the period measured 0.05 per cent of total outstanding loans (0.03 per cent).
Overall impairment write-downs on loans and guarantees as at 31 December 2024 amount to NOK 981m (995m), corresponding to 0.54 per cent (0.59 per cent) of gross lending.
The bank's loan portfolio is of good credit quality. The portfolio comprises NOK 177,871m (167,777m) in Stages 1 and 2, corresponding to 99.11 per cent. Loans in Stage 3 total NOK 2,231m (2,085m), corresponding to 0.89 per cent (0.88 per cent) of gross outstanding loans, including loans sold to the captive mortgage companies.
Results from business areas
In the SpareBank 1 SMN Group, Retail Banking, Corporate Banking and subsidiaries of key significance are defined as business lines. SpareBank 1 SMN's strategy of exploiting the breadth present in the group and expanding interaction across the respective business lines stands firm. Agriculture will be transferred from Retail Banking to Corporate Banking as from the first quarter 2025.
Personal customers
The Retail Banking Division achieved a pre-tax profit of NOK 521m in the fourth quarter 2024 (423m). Return on capital employed was 17.5 per cent (16.3 per cent). The retail banking portfolio consists of wage earners, agricultural customers and sole proprietorships.
| Profit and loss account (NOKm) | 4Q 2024 | 3Q 2024 | 4Q 2024 |
|---|---|---|---|
| Net interest | 674 | 672 | 626 |
| Comission income and other income | 224 | 205 | 167 |
| Total income | 898 | 877 | 794 |
| Total operating expenses | 377 | 344 | 373 |
| Ordinary operating profit | 522 | 533 | 421 |
| Loss on loans, guarantees etc. | 1 | 14 | −2 |
| Result before tax including held for sale | 521 | 519 | 423 |
| Balance | |||
|---|---|---|---|
| Loans and advances to customers | 175,120 | 172,581 | 166,713 |
| Adv.of this sold to SB1 Boligkreditt and SB1 Næringskreditt |
−67,972 | −66,144 | −64,892 |
| Deposits to customers | 69,449 | 68,532 | 64,601 |
| Key figures | |||
| Return on equity per quarter *) | 17.5 % |
17.5 % |
16.3 % |
| Lending margin | 0.95% | 0.97% | 0.68% |
| Deposit margin | 1.63% | 1.73% | 2.14% |
*) Regulatory capital is used as a basis for calculating capital used in retail market (RM)
Lending growth in the quarter was 1.5 per cent and deposit growth 1.3 per cent. Corresponding figures in the fourth quarter 2023 were 0.8 and 1.1 per cent respectively. The Retail Banking Division prioritises balanced growth, as reflected in growth figures for 2024, viz. 5.0 per cent lending growth and 7.5 per cent deposit growth. A focus on deposits in advisory services lends robustness to the bank's earnings and heightens customers' financial security in the form of increased buffer capital.
Higher income from the payments area is noted compared with the third quarter. Increased margins on loans sold to SpareBank 1 Boligkreditt bring improved net interest income and other incomes compared with the same period of last year. Lending to personal customers consistently carries low risk, as reflected in continued low losses.
The distribution model is enhanced by co-location of services in finance centres and a transition from personal advisers to customer teams. Increased use of data and insights enables a closer interplay between the physical and digital advisory channels, providing customers with improved and more efficient advice.
Eiendomsmegler 1 Midt-Norge is the market leader in Trøndelag and in Møre and Romsdal. Pre-tax profit was minus NOK 1m (minus 7m) in the fourth quarter.
| EiendomsMegler 1 Midt-Norge (92.4%) | 4Q 2024 | 3Q 2024 | 4Q 2024 |
|---|---|---|---|
| Total income | 114 | 128 | 99 |
| Total operating expenses | 115 | 120 | 106 |
| Result before tax (NOKm) | -1 | 8 | -7 |
| Operating margin | −1% | 6% | −7% |
Activity remains high at EiendomsMegler 1 Midt-Norge, which sold 163 more properties than in the same quarter last year. This, combined with good cost control, brings increased profitability for the company compared with last year.
1,556 properties were sold in the fourth quarter (1,393), and new assignments totalled 1,330 (1,297). The company's market share in 2024 was 37.6 per cent, up from 37.3 per cent in 2023.
Corporate customers
The Corporate Banking Division achieved a pre-tax profit of NOK 513m (606m). Return on capital employed was 27.1 per cent (33.1 per cent).
| CM, Profit and loss account (NOKm) | 4Q 2024 | 3Q 2024 | 4Q 2024 |
|---|---|---|---|
| Net interest | 623 | 611 | 659 |
| Comission income and other income | 81 | 87 | 90 |
| Total income | 704 | 698 | 749 |
| Total operating expenses | 159 | 153 | 168 |
| Ordinary operating profit | 545 | 546 | 581 |
| Loss on loans, guarantees etc. | 31 | 49 | −25 |
| Result before tax including held for sale | 513 | 497 | 606 |
Balance
| Loans and advances to customers | 61,470 | 61,693 | 57,191 |
|---|---|---|---|
| Adv.of this sold to SB1 Boligkreditt and SB1 Næringskreditt |
−1,277 | −1,415 | −1,576 |
| Deposits to customers | 69,734 | 68,032 | 62,988 |
Key figures
| Return on equity per quarter *) | 27.1 % |
26.4 % |
33.1 % |
|---|---|---|---|
| Lending margin | 2.57% | 2.64% | 2.85% |
| Deposit margin | 0.39% | 0.39% | 0.63% |
*) Regulatory capital is used as a basis for calculating capital used in corporate market (CM)
The Corporate Banking Division's loan volume declined 0.4 per cent in the fourth quarter (1.0 per cent growth) while the deposit volume rose by 2.5 per cent (reduction of 10.0 per cent). The decline in deposit volume in the fourth quarter 2023 is attributable to growing competition for public sector deposits.
Effectuation of interest rate changes and recognition of unrecognised interest on an exposure acquired at a discount widened the lending margin in the quarter. When adjusted for the one-time effect of NOK 59m, the lending margin in terms of NIBOR averaged 2.45 per cent in the quarter. The change in portfolio composition brought a positive development in deposit margins.
The credit quality of the loan portfolio is good. The bankruptcy rate in the region has risen, but so far with limited impact on the loan portfolio, and losses on loans and guarantees were moderate in 2024.
A strengthened input of resources in Trondheim and greater coordination with SpareBank 1 Regnskapshuset SMN spurs Corporate Banking's acquisition of market shares in Mid Norway. The establishment of a presence in Oslo has developed as planned and stimulated lending growth in selected segments where SpareBank 1 SMN offers competencies and experience.
SpareBank 1 Regnskapshuset SMN is the market leader in Trøndelag and in Møre and Romsdal. The company posted a result of minus NOK 3m (8m).
| SpareBank 1 Regnskapshuset SMN (93.3%) | 4Q 2024 | 3Q 2024 | 4Q 2024 |
|---|---|---|---|
| Total income | 150 | 164 | 142 |
| Total operating expenses | 154 | 171 | 134 |
| Result before tax (NOKm) | -3 | -7 | 8 |
| Operating margin | −3% | −4% | 5% |
SpareBank 1 Regnskapshuset SMN has continued its change programme aimed at developing accounting advisers of the future, combined with the implementation of new cloud-based solutions. Substantial investments in the adviser segment are essential to achieving the goal of remaining firms' closest sparring partner. In addition to developing accounting advisers, use of data and expanded collaboration with business advisers in the bank will be crucial.
SpareBank 1 SMN is in a unique position to deliver a customer experience that stands out from other market operators. The year as a whole brought substantial customer growth and reinforced customer loyalty.
SpareBank 1 Finans Midt-Norge's focal areas are leasing and invoice purchasing services to businesses and car loans to personal customers. SpareBank 1 Finans Midt-Norge recorded a pre-tax profit of NOK 87m (12m).
| SpareBank 1 Finans Midt-Norge (57.3%) | 4Q 2024 | 3Q 2024 | 4Q 2024 |
|---|---|---|---|
| Total income | 123 | 112 | 85 |
| Total operating expenses | 38 | 32 | 26 |
| Loss on loans, guarantees etc. | −2 | 12 | 47 |
| Result before tax (NOKm) | 87 | 68 | 12 |
SPAREBANK 1 SMN
SpareBank 1 Finans Midt-Norge reports an income increase of NOK 11m from the previous quarter as a result of lower funding costs. Losses recovered on loans and guarantees make for added profit improvement measured against the previous quarter and the same quarter of 2023.
SpareBank 1 Finans Midt-Norge and Sparebanken Møre initiated in the first quarter of 2024 a distribution collaboration on vendor's liens and leasing to retail customers. This collaboration between SpareBank 1 Finans Midt-Norge and Sparebanken Møre has proven highly successful, adding substantial volume in the course of the quarter. SpareBank 1 Finans Midt-Norge has a market share of about 10 per cent in vendor's liens in the counties where parent banks are represented. Sales via SpareBank 1 Sørøst-Norge will cease to be part of SpareBank 1 Finans Midt-Norge's offering as from 1 October.
SpareBank 1 SMN Invest owns shares and units in regional growth companies and funds. The portfolio is managed together with other long-term shareholdings of the bank and will be scaled down over time. The company's securities portfolio is worth NOK 589m (531m) as at 31 December 2024.
The company's pre-tax profit in the fourth quarter 2024 was NOK 27m (54m). The result is ascribable to a positive value trend for some companies in the portfolio along with income from a development project.
Results as of 31. desember 2024
SpareBank 1 SMN posted a net profit NOK 4,591m (3,688m) and a return on equity of 16.6 per cent (14.4 per cent) as at 31 December 2024. Earnings per equity certificate (EC) were NOK 20.60 (16.88).
Net interest income came to NOK 5,373m (4,732m). The base rate has remained unchanged at 4.50 per cent since December 2023. The bank has carried out general interest rate increases on loans and deposits in line with Norges Bank's hikes, and the latest rate increase was given effect in the first quarter 2024. Compared with 2023, lending margins in the retail market have strengthened while deposit margins have concurrently weakened. Margins in 2023 were heavily impacted by the notice to borrowers required in connection with Norges Bank's base rate hikes.
Net commission income was NOK 2,392 m (2,085m). Income from accounting and estate agency services rose by NOK 72m and 73m respectively compared with 2023. Income from insurance products and payment transfers have risen concurrently. Net commission income excluding the captive mortgage companies has increased by NOK 184m from 2023. Higher margins on loans sold to SpareBank 1 Boligkreditt have increased commissions from this mortgage company by NOK 113m.
The net result from ownership interests was NOK 1,254m (297m). The growth in profit from ownership interests is due mainly to recognition of NOK 452m related to the merger between Fremtind and Eika Forsikring and to strong profit contributions from BN Bank and reclassification of SpareBank 1 Markets as a related company. The net result from financial
instruments and dividends was reduced from NOK 402m in 2023 to NOK 103m in 2024. The reduction is attributable to disinvestment from SpareBank 1 Markets in the fourth quarter 2023.
Group expenses were NOK 3,300m (3,018m) in 2024. The expenses picture in 2023 reflected merger costs and expensing of the embezzlement affair. In 2024 expenses rose as a result of initiatives and investments made through 2023. The bank's overall expenses in 2024 are 6.4 per cent higher than in 2023. When adjusted for increased capital tax and the one-time expense related to employer national insurance contributions in the fourth quarter, expense growth in the bank is 4.5 per cent. At group level expenses for the year are 9.3 per cent higher than last year, of which 55 per cent of the increased costs refers to the subsidiaries.
As at 31 December loan losses total NOK 176m (14m). Losses on loans to corporate customers amounted to NOK 139m in 2023 (6m). The corresponding figure for personal customers is a loss of NOK 37 (8m).
Lending growth in the group was 5.5 per cent (11.9 per cent) in 2024. Growth in lending to the bank's retail segment was 5 per cent (13.1 per cent). Lending to the bank's corporate customers rose 7.5 per cent (10.4 per cent).
Deposits rose 6.0 per cent (8.9 per cent). Deposits from personal customers rose 7.5 per cent (17.6 per cent). Deposits from corporate customers climbed 10.7 per cent (0.1 per cent). Treasury deposits were reduced over the course of the year as part of the bank's liquidity management.
Balance sheet, funding and liquidity
Total assets
The bank's total assets as at the fourth quarter of 2024 were NOK 248bn (233bn), having increased by NOK 15bn, or 6.4 per cent, over the last 12 months.
As at 31 December 2024 loans totalling NOK 69bn (66bn) had been sold from SpareBank 1 SMN to the captive mortgage companies SpareBank 1 Boligkreditt and 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 to SpareBank 1 Boligkreditt and SpareBank 1 Næringskreditt.
Loans
Total outstanding loans rose in the last 12 months by NOK 13.0bn, or 5.5 per cent, and stood at NOK 249.4bn (236.3bn) at the end of the fourth quarter. Lending growth in the quarter was 0.9 per cent.
Lending to the bank's retail customers climbed NOK 2.5bn in the quarter (1.3bn). This corresponds to a lending growth of 1.5 per cent (0.8 per cent). Lending growth over the last 12 months was 5.0 per cent (13.1 per cent). Total lending to the bank's retail customers came to NOK 175.1bn (166.7bn) at the end of the fourth quarter 2024. Last year's figures are impacted by the merger with the former SpareBank 1 Søre Sunnmøre.
SPAREBANK 1 SMN
SPAREBANK 1 SMN
13
Lending to the bank's corporate segment was reduced by NOK 0.2bn in the quarter (growth of 0.6bn), corresponding to minus 0.4 per cent (1.0 per cent). Growth in lending in the last 12 months was 7.5 per cent (10.4 per cent). Overall lending to the bank's corporate customers came to NOK 61.5bn (57.2bn) as at 31 December 2024. Last year's figures are impacted by the merger with the former SpareBank 1 Søre Sunnmøre.
SpareBank 1 Finans' gross loan volume was NOK 13.2bn (12.6bn) at the end of the fourth quarter 2024.
(For breakdown by sector – see note 5).
Deposits
Customer deposits were NOK 140.9bn (132.9bn) at the end of the fourth quarter 2024. Deposit growth in the quarter was 2.1 per cent.
Personal deposits rose NOK 0.9bn in the quarter (0.7bn), corresponding to deposit growth of 1.3 per cent (1.1 per cent). Deposit growth in the last 12 months was 7.5 per cent (17.6 per cent). Total deposits from personal customers came to NOK 69.4bn (64.6bn) at the end of the quarter.
Deposits from the bank's corporate segment rose NOK 1.7bn in the quarter (reduction of 7.0bn), corresponding to a growth of 2.5 per cent (minus 10.0 per cent). Deposit growth over the last 12 months was 10.7 per cent (0.1 per cent). Total deposits from the bank's corporate segment were NOK 69.7bn (63.0bn) as at 31 December 2024.
Last year's figures are impacted by the merger with the former SpareBank 1 Søre Sunnmøre.
(For breakdown by sector – see note 9).
Funding and liquidity
SpareBank 1 SMN has ample liquidity and good access to funding. The bank follows 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 group's deposit-to-loan ratio at 31 December 2024, including the captive mortgage companies SpareBank 1 Boligkreditt and SpareBank 1 Næringskreditt, was 57 per cent (56 per cent).
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 calculated at 183 per cent as at 31 December 2024.
The bank's funding sources and products are amply diversified. The share of the bank's overall money market funding with a maturity above one year was 83 per cent (89 per cent) at the end of the fourth quarter.
SpareBank 1 Boligkreditt and Næringskreditt are important funding sources for the bank, and loans totalling NOK 69bn (66bn) had been sold to these mortgage companies as at 31
December 2024.
In the fourth quarter SpareBank 1 SMN issued senior non-preferred debt (SNP) in Japanese yen (JPY) worth the equivalent of NOK 360m. At the end of the quarter SpareBank 1 SMN held NOK 13.4bn in SNP debt instruments. SNP debt measured 35.8 per cent as at 31 December 2024, and SpareBank 1 SMN met the MREL requirements by an ample margin.
Rating
The bank has a rating of Aa3 (stable outlook) with Moody's.
Financial soundness
The CET1 ratio at 31 December 2024 was 18.3 per cent (18.8 per cent) compared with 18.2 per cent at 30 September 2024. The increase in CET1 ratio from previous quarter is due to lower payout ratio than the regulatory requirements applied throughout the year.
SpareBank 1 SMN received a new Pillar 2 requirement in the fourth quarter of 2023. The requirement was reduced to 1.7 percentage points and must be met with a minimum of 56.25 per cent CET1 capital. As a result of this change the group's long-term CET1 target is revised to 16.3 per cent, including a Pillar 2 guidance. 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 capital target.
A leverage ratio of 7.0 per cent (7.2 per cent) at 31. December 2024 shows the bank to be very solid. See note 4 for details.
The bank's equity certificate (MING)
The book value per EC at 31 December 2024 was NOK 128.09 (120.48) and earnings per EC in 2024 were NOK 20.60 (16.88).
The Price / Income ratio was 8.32 (8.40) and the Price / Book ratio was 1.34 (1.18).
Sustainability
The introduction of CSRD has made the regulatory landscape clearer and more binding. The value of voluntary obligations and memberships is thus reduced. After careful consideration, SpareBank 1 SMN has chosen to withdraw from the voluntary frameworks UN Global Impact Norway (UNGC) and UN Environmental Programme Financial Initiative (UNEPFI). This has been done through a joint process with other SpareBank 1 banks.
As a consequence of CSRD, a project has been initiated to review and revise the group's ambitions and objectives in the sustainability sphere. This project will be central in the work of establishing the group transition plan for climate and nature.
The transition plan for agriculture has been revised in accordance with agriculture's own climate plan. This a natural part of the development of these transition plans and ensures that the ambitions set out in the transition plan are aligned with the sector's own ambitions for transition.
Outlook
SpareBank 1 SMN delivered a very good performance in 2023 reflecting strong profitability and financial soundness. In addition to good operating profit, the gain from the merger between Fremtind and Eika Forsikring contributed to strengthening return on equity.
At the start of 2025 there are prospects for lower interest rates and increased household purchasing power. Inflation has diminished substantially and unemployment in Mid Norway remains low. Norges Bank's regional network survey shows a positive trend for the region in with expectations at the end of 2024 having turned from weakly negative to neutral for Mid Norway.
SpareBank 1 SMN's ambition to expand its market shares stands firm. The bank's growth aspirations will be realised through initiatives taken in selected geographical locations and industries. Work on strengthening synergies across the group's business lines continues through an expanded focus on the finance centre model, and 26 finance centres have now been established in SpareBank 1 SMN's catchment area. This focus is expected to contribute further to the group's well-diversified income platform and to strengthen profitability in the years ahead.
The bank's cost trend has normalised through 2024. Among the subsidiaries the cost trend is to a greater degree driven by activity levels, and will vary with market conditions. The cost-income ratio is one of the groups main key figures, and the bank's cost growth in 2025 is expected to be moderate.
The risk picture in SpareBank 1 SMN's loan portfolio is satisfactory, although increased uncertainty is evident in the construction industry and retail trade. Bankruptcies in the region declined in number in 2024 and remain at a lower level than prior to the pandemic. The credit quality of the bank's portfolio is good, as reflected in continued low losses.
The group's long-term CET1 target is 16.3 per cent. The group still awaits a decision on its application for revision of its IRB models. The provisional requirement of a 0.7 percentage point add-on to its Pillar 2 requirement accordingly still needs to be taken into account. Implementation of CRR3 and a new risk weight floor for residential mortgages will in isolation reduce the group's CET1 ratio, but the ratio remains above regulatory requirements and SpareBank 1 SMN is in position to deliver on its growth aspirations while concurrently maintaining good dividend capacity.
The group's long-term dividend policy requiring about one half of net profit to be disbursed as dividend stands firm. When setting the size of the annual dividend payout, account is taken of the group's need for capital, prospects for profitable growth and strategic plans. The board of directors will recommend the bank's supervisory board to set a cash dividend of NOK 12.50 per equity certificate (NOK 12.00) which is equivalent to 61 per cent of the net profit, and a community dividend of NOK 896m (860m). The size of the dividend for 2024 should be viewed in light of the group's solidity, which at the end of the fourth quarter remains well above regulatory requirements and the group's long-term target.
SpareBank 1 SMN aspires to be among the best performers in the Nordic region, and the group's overriding financial goal of delivering a return on equity above 13 per cent over time stands firm. The main pillars of the group's strategy are unchanged, and the focus is on implementation and realisation of desired effects. The board of directors is pleased with results achieved in 2024. The group is well placed to strengthen its market position with an efficient distribution of products and services. The board of directors expects 2025 to be another good year for the group.
Trondheim, 11. februar 2025
The Board of Directors of SpareBank 1 SMN
Group CEO
Income statement
| Parent bank | Group | |||||||
|---|---|---|---|---|---|---|---|---|
| Fourth quarter | Jan - Dec | Jan - Dec Fourth quarter |
||||||
| 2023 | 2024 | 2023 | 2024 | (NOKm) Note |
2024 | 2023 | 2024 | 2023 |
| 2,729 | 2,828 | 9,219 | 11,122 | Interest income effective interest method | 11,685 | 9,721 | 2,973 | 2,847 |
| 451 | 510 | 1,647 | 1,883 | Other interest income | 1,875 | 1,642 | 510 | 449 |
| 1,948 | 2,112 | 6,622 | 8,180 | Interest expenses | 8,187 | 6,631 | 2,110 | 1,951 |
| 1,232 | 1,226 | 4,244 | 4,824 | Net interest 10 |
5,373 | 4,732 | 1,372 | 1,345 |
| 272 | 345 | 1,121 | 1,315 | Commission income | 1,611 | 1,374 | 411 | 326 |
| 25 | 32 | 114 | 135 | Commission expenses | 224 | 199 | 53 | 40 |
| 17 | 15 | 69 | 65 | Other operating income | 1,006 | 910 | 223 | 213 |
| 264 | 328 | 1,076 | 1,245 | Commission income and other income 11 |
2,392 | 2,085 | 580 | 499 |
| 82 | 16 | 711 | 361 | Dividends | 33 | 26 | 16 | -10 |
| - | - | - | - | Income from investment in related companies 3 |
1,254 | 297 | 227 | 90 |
| 414 | 28 | 364 | 45 | Net return on financial investments 13 |
70 | 376 | 40 | 458 |
| 496 | 44 | 1,076 | 406 | Net return on financial investments | 1,357 | 699 | 283 | 538 |
| 1,991 | 1,598 | 6,396 | 6,475 | Total income | 9,123 | 7,516 | 2,235 | 2,383 |
| 258 | 267 | 849 | 1,012 | Staff costs | 1,981 | 1,691 | 516 | 476 |
| 337 | 324 | 1,121 | 1,084 | Other operating expenses 12 |
1,319 | 1,327 | 384 | 390 |
| 595 | 591 | 1,970 | 2,096 | Total operating expenses | 3,300 | 3,018 | 901 | 866 |
| 1,396 | 1,006 | 4,426 | 4,379 | Result before losses | 5,823 | 4,498 | 1,335 | 1,517 |
| -27 | 32 | -72 | 156 | Loss on loans, guarantees etc. 6, 7 |
176 | 14 | 30 | 20 |
| 1,423 | 975 | 4,498 | 4,223 | Result before tax 3 |
5,647 | 4,484 | 1,305 | 1,496 |
| 228 | 230 | 820 | 940 | Tax charge | 1,054 | 904 | 253 | 262 |
| - | - | - | - | Result investment held for sale, after tax 2, 3 |
-2 | 108 | -1 | 12 |
| 1,195 | 744 | 3,678 | 3,283 | Net profit | 4,591 | 3,688 | 1,052 | 1,247 |
| 38 | 41 | 122 | 137 | Attributable to additional Tier 1 Capital holders | 146 | 125 | 43 | 40 |
| 773 | 470 | 2,376 | 2,101 | Attributable to Equity capital certificate holders | 2,970 | 2,331 | 674 | 809 |
| 384 | 234 | 1,181 | 1,044 | Attributable to the saving bank reserve | 1,370 | 1,159 | 305 | 402 |
| - | - | - | - | Attributable to non-controlling interests | 106 | 74 | 30 | -4 |
| 1,195 | 744 | 3,678 | 3,283 | Net profit | 4,591 | 3,688 | 1,052 | 1,247 |
| Profit/diluted profit per ECC 19 |
20.10 | 16.87 | 4.67 | 5.62 |
Other comprehensive income
| Parent bank Group |
|||||||||
|---|---|---|---|---|---|---|---|---|---|
| Fourth quarter | Jan - Dec | Jan - Dec | Fourth quarter | ||||||
| 2023 | 2024 | 2023 | 2024 | (NOKm) | 2024 | 2023 | 2024 | 2023 | |
| 1,195 | 744 | 3,678 | 3,283 | Net profit | 4,591 | 3,688 | 1,052 | 1,247 | |
| - | - | - | - | Items that will not be reclassified to profit/loss | - | - | - | - | |
| -27 | 70 | -27 | 70 | Actuarial gains and losses pensions | 70 | -27 | 70 | -27 | |
| 7 | -17 | 7 | -17 | Tax | -17 | 7 | -17 | 7 | |
| - | - | - | - | Share of other comprehensive income of associates and joint venture |
9 | 6 | 6 | 4 | |
| -20 | 52 | -20 | 52 | Total | 62 | -14 | 58 | -16 | |
| - | - | - | - | - | - | - | - | ||
| - | - | - | - | Items that will be reclassified to profit/loss | - | - | - | - | |
| - | - | - | - | Fair value change on financial assets through other comprehen sive income |
- | - | - | - | |
| -12 | -0 | -5 | -4 | Value changes on loans measured at fair value | -4 | -5 | -0 | -12 | |
| - | - | - | - | Share of other comprehensive income of associates and joint venture |
-148 | -140 | -46 | -92 | |
| - | - | - | - | Tax | - | - | - | - | |
| -12 | -0 | -5 | -4 | Total | -153 | -145 | -46 | -104 | |
| -32 | 52 | -25 | 48 | Net other comprehensive income | -91 | -158 | 12 | -120 | |
| 1,163 | 796 | 3,653 | 3,331 | Total comprehensive income | 4,500 | 3,530 | 1,064 | 1,127 | |
| 38 | 41 | 122 | 137 | Attributable to additional Tier 1 Capital holders | 146 | 125 | 43 | 40 | |
| 751 | 505 | 2,359 | 2,134 | Attributable to Equity capital certificate holders | 2,909 | 2,225 | 682 | 729 | |
| 374 | 251 | 1,173 | 1,060 | Attributable to the saving bank reserve | 1,339 | 1,106 | 309 | 362 | |
| - | - | - | - | Attributable to non-controlling interests | 106 | 74 | 30 | -4 | |
| 1,163 | 796 | 3,653 | 3,331 | Total comprehensive Income | 4,500 | 3,530 | 1,064 | 1,127 |
Balance sheet
| Parent bank | Group | ||||
|---|---|---|---|---|---|
| 31 Dec 2023 |
31 Dec 2024 |
(NOKm) | Note | 31 Dec 2024 |
31 Dec 2023 |
| 1,172 | 654 | Cash and receivables from central banks | 654 | 1,172 | |
| 19,241 | 19,785 | Deposits with and loans to credit institutions | 9,166 | 8,746 | |
| 156,464 | 166,312 | Net loans to and receivables from customers | 5 | 179,254 | 168,955 |
| 34,163 | 36,649 | Fixed-income CDs and bonds | 17 | 36,650 | 34,163 |
| 6,659 | 7,231 | Derivatives | 17 | 7,231 | 6,659 |
| 731 | 587 | Shares, units and other equity interests | 17 | 1,050 | 1,137 |
| 6,270 | 6,789 | Investment in related companies | 10,084 | 8,695 | |
| 2,090 | 2,225 | Investment in group companies | - | - | |
| 98 | 98 | Investment held for sale | 2 | 190 | 112 |
| 812 | 797 | Intangible assets | 1,230 | 1,228 | |
| 1,321 | 1,599 | Other assets | 14 | 2,189 | 1,849 |
| 229,020 | 242,726 | Total assets | 247,699 | 232,717 |
| Parent bank | Group | |||
|---|---|---|---|---|
| 31 Dec 2023 |
31 Dec 2024 |
(NOKm) Note |
31 Dec 2024 |
31 Dec 2023 |
| 13,160 | 13,940 | Deposits from credit institutions | 13,941 | 13,160 |
| 133,462 | 141,485 | Deposits from and debt to customers 9 |
140,897 | 132,889 |
| 33,417 | 36,570 | Debt created by issue of securities 16 |
36,570 | 33,417 |
| 12,415 | 13,352 | Subordinated debt | 13,352 | 12,415 |
| 6,989 | 6,152 | Derivatives 17 |
6,152 | 6,989 |
| 2,258 | 2,673 | Other liabilities 15 |
3,527 | 3,002 |
| - | - | Investment held for sale 2 |
2 | 1 |
| 2,169 | 2,656 | Subordinated loan capital 16 |
2,735 | 2,247 |
| 203,871 | 216,829 | Total liabilities | 217,175 | 204,120 |
| 2,884 | 2,884 | Equity capital certificates | 2,884 | 2,884 |
| -0 | -0 | Own holding of ECCs | -0 | -0 |
| 2,422 | 2,422 | Premium fund | 2,422 | 2,422 |
| 8,482 | 8,721 | Dividend equalisation fund | 8,721 | 8,482 |
| 1,730 | 1,803 | Recommended dividends | 1,803 | 1,730 |
| 860 | 896 | Provision for gifts | 896 | 860 |
| 6,865 | 6,984 | Ownerless capital | 6,984 | 6,865 |
| 106 | 245 | Unrealised gains reserve | 245 | 106 |
| 0 | - | Other equity capital | 3,709 | 2,677 |
| 1,800 | 1,943 | Additional Tier 1 Capital | 2,039 | 1,903 |
| - | - | Non-controlling interests | 821 | 666 |
| 25,150 | 25,898 | Total equity capital | 30,523 | 28,597 |
| 229,020 | 242,726 | Total liabilities and equity | 247,699 | 232,717 |
Cash flow statement
| Parent bank | Group | ||||||
|---|---|---|---|---|---|---|---|
| January - December | January - December | ||||||
| 2023 | 2024 | (NOKm) | 2024 | 2023 | |||
| −6,270 | −9,987 | Decrease/(increase) loans to customers | −10,458 | −6,834 | |||
| 8,263 | 10,324 | Interest receipts from loans to customers | 10,961 | 8,805 | |||
| 4,331 | −538 | Decrease/(increase) loans credit institutions | −414 | 4,517 | |||
| 856 | 1,017 | Interest receipts from loans to credit institutions | 919 | 783 | |||
| 622 | 8,048 | Increase/(decrease) deposits from customers | 8,034 | 738 | |||
| −3,632 | −4,974 | Interest payment on deposits from customers | −4,926 | −3,600 | |||
| −1,480 | 748 | Increase/(decrease) debt to credit institutions | 748 | −1,472 | |||
| −514 | −551 | Interest payment on debt to credit institutions | −551 | −514 | |||
| 5,881 | −1,902 | Increase/(decrease) in short term investments | −1,765 | 5,881 | |||
| 1,288 | 1,579 | Interest receipts from short term investments | 1,466 | 1,282 | |||
| 221 | −766 | Increase/(decrease) in derivatives | −766 | 221 | |||
| −802 | −837 | Interest receipts from derivatives | −837 | −802 | |||
| 2,084 | 1,221 | Increase/(decrease) in other claims | 2,424 | 2,946 | |||
| −2,822 | −2,737 | Increase/(decrease) in other debts | −3,959 | −3,936 | |||
| 8,026 | 646 | A) Net change in liquidity from operations | 877 | 8,016 | |||
| 35 | - | Increase of cash by merging | - | 35 | |||
| −125 | −176 | Gross investment buildings/operating assets | −241 | −207 | |||
| - | - | Sale of buildings/operating assets | - | - | |||
| 302 | 117 | Dividends from subsidiaries | - | - | |||
| - | −37 | Paid-in capital from reduction in ownership of subsidiaries | - | - | |||
| −69 | −97 | Payment of capital due to increase in shareholding in subsidiaries | - | - | |||
| 391 | - | Dividends from associated companies and joint ventures | 201 | 391 | |||
| 123 | 200 | Proceeds from sale of shares of associated companies and joint ventures | 198 | 142 | |||
| −190 | −717 | Payment for purchase of shares of associated companies and joint ventures | −717 | −198 | |||
| - | - | Proceeds from shares held for sale | −80 | 163 | |||
| 18 | 43 | Dividends from other businesses | 33 | 26 |
| Parent bank | Group | ||||
|---|---|---|---|---|---|
| January - December | January - December | ||||
| 2023 | 2024 | (NOKm) | 2024 | 2023 | |
| 1,590 | 1,411 | Reduction/sale of shares and ownership interests | 1,382 | 1,638 | |
| −1,487 | −1,175 | Increase/purchase of shares and ownership interests | −1,208 | −1,509 | |
| 589 | −432 | B) Net change in liquidity from investments | −432 | 482 | |
| 5,280 | 7,589 | Debt raised by issuance of covered bonds | 7,589 | 5,280 | |
| −11,204 | −4,820 | Repayment of issued covered bonds | −4,820 | −11,204 | |
| −1,207 | −1,430 | Interest payment on covered bonds issued | −1,430 | −1,207 | |
| 750 | 900 | Debt raised by issuance of subordinated debt | 902 | 826 | |
| −750 | −400 | Payments of issued subordinated debt | −400 | −793 | |
| −125 | −187 | Interest payment on subordinated debt | −194 | −128 | |
| 2 | 1 | Proceeds from sale or issue of treasury shares | 1 | 153 | |
| −840 | −1,730 | Dividends cleared | −1,730 | −840 | |
| 0 | 201 | Dividends paid to non-controlling interests | −9 | −121 | |
| −474 | −860 | Disbused from gift fund | −860 | −474 | |
| 416 | 143 | Additional Tier 1 Capital issued | 450 | 519 | |
| −342 | - | Repayment of Additional Tier 1 Capital | −315 | −385 | |
| −122 | −137 | Interest payments Additional Tier 1 capital | −146 | −125 | |
| −8,615 | −731 | C) Net change in liquidity from financial activities | −962 | −8,498 | |
| 1 | −517 | A) + B) + C) Net changes in cash and cash equivalents | −517 | 1 | |
| 1,171 | 1,172 | Cash and cash equivalents at 1.1 | 1,172 | 1,171 | |
| 1,172 | 654 | Cash and cash equivalents at end of the year | 654 | 1,172 | |
| 1 | −517 | Net changes in cash and cash equivalents | −517 | 1 |
Changes in equity
| Parent bank | Issued equity | Earned equity | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| (NOKm) | EC capital | Premium fund |
Ownerless capital |
Equalisa tion fund |
Dividend and gifts |
Un-realised gains reserve |
Other equity |
Additional Tier 1 Capital |
Total equity |
|
| Equity at 1 January 2023 | 2,597 | 895 | - | 6,408 | 7,877 | 1,314 | 70 | 0 | 1,726 | 20,887 |
| Net profit | - | - | - | 299 | 602 | 2,591 | 37 | 27 | 122 | 3,678 |
| Other comprehensive income | ||||||||||
| Value changes on loans measured at fair value | - | - | - | - | - | - | - | -5 | - | -5 |
| Actuarial gains (losses), pensions | - | - | - | - | - | - | - | -20 | - | -20 |
| Other comprehensive income | - | - | - | - | - | - | - | -25 | - | -25 |
| Total comprehensive income | - | - | - | 299 | 602 | 2,591 | 37 | 3 | 122 | 3,653 |
| Transactions with owners | ||||||||||
| Dividend declared for 2023 | - | - | - | - | - | -840 | - | - | - | -840 |
| To be disbursed from gift fund | - | - | - | - | - | -474 | - | - | - | -474 |
| Additional Tier 1 Capital | - | - | - | - | - | - | - | - | 416 | 416 |
| Buyback Additional Tier 1 Capital issued | - | - | - | - | - | - | - | - | -342 | -342 |
| Interest payments additional Tier 1 capital | - | - | - | - | - | - | - | - | -122 | -122 |
| Purchase and sale of own ECCs | -0 | - | - | - | 3 | - | - | - | - | 2 |
| Merging with SpareBank 1 Søre Sunnmøre | 288 | 1,526 | - | 158 | - | - | - | - | - | 1,972 |
| Direct recognitions in equity | - | - | - | - | - | - | - | -3 | - | -3 |
| Total transactions with owners | 287 | 1,526 | - | 158 | 3 | -1,314 | - | -3 | -48 | 610 |
| Equity at 31 December 2023 | 2,884 | 2,422 | - | 6,865 | 8,482 | 2,591 | 106 | 0 | 1,800 | 25,150 |
| Parent bank | Issued equity | Earned equity | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| (NOKm) | EC capital | Premium fund |
Ownerless capital |
Equalisa tion fund |
Dividend and gifts |
Un-realised gains reserve |
Other equity |
Additional Tier 1 Capital |
Total equity |
|
| Equity at 1 January 2024 | 2,884 | 2,422 | - | 6,865 | 8,482 | 2,591 | 106 | - | 1,800 | 25,150 |
| Net profit | - | - | - | 119 | 239 | 2,698 | 139 | -49 | 137 | 3,283 |
| Other comprehensive income | ||||||||||
| Value changes on loans measured at fair value | - | - | - | - | - | - | - | -4 | - | -4 |
| Actuarial gains (losses), pensions | - | - | - | - | - | - | - | 52 | - | 52 |
| Other comprehensive income | - | - | - | - | - | - | - | 48 | - | 48 |
| Total comprehensive income | - | - | - | 119 | 239 | 2,698 | 139 | -1 | 137 | 3,331 |
| Transactions with owners | ||||||||||
| Dividend declared for 2023 | - | - | - | - | - | -1,730 | - | - | - | -1,730 |
| To be disbursed from gift fund | - | - | - | - | - | -860 | - | - | - | -860 |
| Additional Tier 1 Capital | - | - | - | - | - | - | - | - | 450 | 450 |
| Buyback Additional Tier 1 Capital issued | - | - | - | - | - | - | - | - | -307 | -307 |
| Interest payments additional Tier 1 capital | - | - | - | - | - | - | - | - | -137 | -137 |
| Purchase and sale of own ECCs | 0 | - | - | - | 1 | - | - | - | - | 1 |
| Direct recognitions in equity | - | - | - | - | - | - | - | 1 | - | 1 |
| Total transactions with owners | 0 | - | - | - | 1 | -2,591 | - | 1 | 6 | -2,583 |
| Equity at 30 December 2024 | 2,884 | 2,422 | - | 6,984 | 8,721 | 2,698 | 245 | -0 | 1,943 | 25,898 |
| Attributable to parent company equity holders | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Group | Issued equity Earned equity |
|||||||||
| (NOKm) | EC capital | Premium fund |
Owner less capital |
Equalisa tion fund |
Dividend and gifts |
Un-realised gains reserve |
Other equity |
Addition al Tier 1 Capital |
NCI1) | Total equity |
| Equity at 1 January 2023 | 2,586 | 895 | 6,408 | 7,828 | 1,314 | 70 | 2,940 | 1,769 | 997 | 24,807 |
| Net Profit | - | - | 299 | 602 | 2,591 | 37 | -40 | 125 | 74 | 3,688 |
| Other comprehensive income | ||||||||||
| Share of other comprehensive income of associates and joint ventures |
- | - | - | - | - | - | -133 | - | - | -133 |
| Value changes on loans measured at fair value | - | - | - | - | - | - | -5 | - | - | -5 |
| Actuarial gains (losses), pensions | - | - | - | - | - | - | -20 | - | - | -20 |
| Other comprehensive income | - | - | - | - | - | - | -158 | - | - | -158 |
| Total comprehensive income | - | - | 299 | 602 | 2,591 | 37 | -198 | 125 | 74 | 3,530 |
| Transactions with owners | ||||||||||
| Dividend declared for 2022 | - | - | - | - | -840 | - | - | - | - | -840 |
| To be disbursed from gift fund | - | - | - | - | -474 | - | - | - | - | -474 |
| Additional Tier 1 Capital issued | - | - | - | - | - | - | - | 519 | - | 519 |
| Buyback Additional Tier 1 Capital issued | - | - | - | - | - | - | - | -385 | - | -385 |
| Interest payments additional Tier 1 capital | - | - | - | - | 0 | - | - | -125 | - | -125 |
| Purchase and sale of own ECCs | -0 | - | - | 3 | - | - | - | - | - | 2 |
| Own ECC held by SB1 Markets2) | 11 | - | - | 49 | - | - | 10 | - | - | 70 |
| Merging with SpareBank 1 Søre Sunnmøre | 288 | 1,526 | 158 | - | - | - | - | - | -93 | 1,879 |
| SB1 Markets from subsidiary to associated company | - | - | - | - | - | - | 110 | - | - | 110 |
| Direct recognitions in equity | - | - | - | - | - | - | -16 | - | - | -16 |
| Share of other transactions from associates and joint ventures | - | - | - | - | - | - | -169 | - | - | -169 |
| Change in non-controlling interests | - | - | - | - | - | - | - | - | -312 | -312 |
| Total transactions with owners | 298 | 1,526 | 158 | 52 | -1,314 | - | -65 | 10 | -405 | 260 |
| Equity at 31 December 2023 | 2,884 | 2,422 | 6,865 | 8,482 | 2,591 | 106 | 2,677 | 1,903 | 666 | 28,597 |
1) Non-controlling interests
2) Holding of own equity certificates as part of SpareBank 1 Markets' trading activity
SPAREBANK 1 SMN
| Attributable to parent company equity holders | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Group | Issued equity Earned equity |
|||||||||
| (NOKm) | EC capital | Premium fund |
Own erless capital |
Equalisa tion fund |
Dividend and gifts |
Un-realised gains reserve |
Other equity |
Addition al Tier 1 Capital |
NCI1) | Total equity |
| Equity at 1 January 2024 | 2,884 | 2,422 | 6,865 | 8,482 | 2,591 | 106 | 2,677 | 1,903 | 666 | 28,597 |
| Net profit | - | - | 119 | 239 | 2,698 | 139 | 1,145 | 146 | 106 | 4,591 |
| Other comprehensive income | ||||||||||
| Share of other comprehensive income of associates and joint ventures |
- | - | - | - | - | - | -139 | - | - | -139 |
| Value changes on loans measured at fair value | - | - | - | - | - | - | -4 | - | - | -4 |
| Actuarial gains (losses), pensions | - | - | - | - | - | - | 52 | - | - | 52 |
| Other comprehensive income | - | - | - | - | - | - | -91 | - | - | -91 |
| Total comprehensive income | - | - | 119 | 239 | 2,698 | 139 | 1,053 | 146 | 106 | 4,500 |
| Transactions with owners | ||||||||||
| Dividend declared for 2023 | - | - | - | - | -1,730 | - | - | - | - | -1,730 |
| To be disbursed from gift fund | - | - | - | - | -860 | - | - | - | - | -860 |
| Additional Tier 1 capital issued | - | - | - | - | - | - | - | 450 | - | 450 |
| Buyback additional Tier 1 Capital issued | - | - | - | - | - | - | - | -315 | - | -315 |
| Interest payments additional Tier 1 capital | - | - | - | - | 0 | - | - | -146 | - | -146 |
| Purchase and sale of own ECCs | 0 | - | - | 1 | - | - | - | - | - | 1 |
| Direct recognitions in equity | - | - | - | - | - | - | 0 | - | - | 0 |
| Other transactions from associates and joint ventures | - | - | - | - | - | - | -21 | - | - | -21 |
| Change in non-controlling interests | - | - | - | - | - | - | - | - | 48 | 48 |
| Total transactions with owners | 0 | - | - | 1 | -2,591 | - | -21 | -10 | 48 | -2,573 |
| Equity at 31 December 2024 | 2,884 | 2,422 | 6,984 | 8,721 | 2,698 | 245 | 3,709 | 2,039 | 821 | 30,523 |
1) Non-controlling interests
Note 1 - Accounting Principles
Accounting Principles
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 2023. The Group has in this quarterly report used the same accounting principles and calculation methods as in the latest annual report and accounts.
Note 2 - Critical estimates and assessment concerning the use of accounting principles
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.
Pensions
Sparebank 1 SMN Group has one pension arrangement; defined contribution plan. For a further description of the pension scheme, see note 22 in the 2023 annual report.
The group's pension liabilities are accounted for under IAS 19R. Estimate variances are therefore directly reflected in equity capital and are presented under other comprehensive income.
It was decided to terminate the defined benefit scheme at a board meeting in 2016. Employees on this scheme transferred to the defined contribution scheme from 1 January 2017, and received a paid-up policy showing rights accumulated under the defined benefit scheme. Paid-up policies are managed by the pension fund, which has been a paid-up pension fund as from 1 January 2017. A framework agreement has been established between SpareBank 1 SMN and the pension fund which covers funding, asset management etc. In view of the responsibility still held by SpareBank 1 SMN, future liabilities will need to be incorporated in the accounts. The board of the pension fund is required to be composed of representatives from the Group and participants in the pension schemes in accordance with the articles of association of the pension fund.
A new calculation of the Group's pension liabilities has been carried out as per 31 December 2024.
| Actuarial assumptions | 31 Dec 2023 |
01/01/2024 | 31 Dec 2024 |
|---|---|---|---|
| Discount rate | 3.00% | 3.00% | 3.90% |
| Expected rate of return on plan assets | 3.00% | 3.00% | 3.90% |
| Expected future wage and salary growth | 3.25% | 3.25% | 4.00% |
| Expected adjustment on basic amount (G) | 3.25% | 3.25% | 3.75% |
| Expected increase in current pension | 0.00% | 0.00% | 0.00% |
| Employers contribution | 19.10% | 19.10% | 19.10% |
| Demographic assumptions: | ||||
|---|---|---|---|---|
| Mortality base table | K2013 BE | |||
| Disability | IR73 | |||
| Voluntary exit | 2% til 50år, 0% etter 50år | |||
| Movement in net pension liability in the balan ce sheet Group (NOKm) |
Funded | Unfunded | Total | |
| Net pension liability in the balance sheet 1.1 | −221 | 4 | −217 | |
| OCI accounting 1 Jan | 0 | - | 0 | |
| OCI accounting 31 December | −69 | −1 | −70 | |
| Net defined-benefit costs in profit and loss account |
−7 | 0 | −7 | |
| Paid in pension premium, defined-benefit sche mes |
0 | - | 0 | |
| Paid in pension premium, defined-benefit plan | - | −1 | −1 | |
| Net pension liability in the balance sheet 31 December 2023 |
−296 | 3 | −294 |
| Net pension liability in the balance sheet Group (NOKm) |
31 Dec 2024 | 31 Dec 2023 |
|---|---|---|
| Net present value of pension liabilities in funded schemes |
512 | 558 |
| Estimated value of pension assets | -806 | -776 |
| Net pension liability in the balance sheet before em ployer's contribution |
-294 | -217 |
| Employers contribution | 0 | 1 |
| Net pension liability in the balance sheet | -294 | -217 |
SPAREBANK 1 SMN
| Pension cost Group (NOKm) | 31 Dec 2024 | 31 Dec 2023 |
|---|---|---|
| Present value of pension accumulated in the year | - | - |
| Net interest income | -7 | -7 |
| Net pension cost related to defined plans, incl. unfunded pension commitment |
-7 | -7 |
| Employer's contribution subject to accrual accounting | 0 | 0 |
| Cost of defined contribution pension and early retirement pension scheme |
149 | 124 |
| Total pension cost for the period | 143 | 117 |
Investment held for sale
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.
| 2024 (NOKm) | Assets | Liabilities | Revenue | Expenses | Profit | Owner ship |
|---|---|---|---|---|---|---|
| Mavi XV AS Group | 190 | 2 | 13 | -15 | -2 | 100% |
| Total Held for sale | 190 | 2 | 13 | -15 | -2 |
Losses on loans and guarantees
For a detailed description of the Bank's model for expected credit losses, refer to note 10 in the annual accounts for 2023.
Measurement of expected credit loss for each stage requires both information on events and current conditions and information on expected events and future economic conditions. Estimation and use of forward-looking information requires a high degree of discretionary judgement. Each macroeconomic scenario that is utilised includes a projection for a five-year period. For credits where credit risk is assessed to have increased significantly since loan approval (stage 2), loss estimates for the period after year 5 are based on year 5 as regards level of PD and LGD.
Our estimate of expected credit loss at stage 1 and 2 is a probability-weighted average of three scenarios: Base Case, Best Case and Worst Case. The model that computes model write-downs is based on two macro variables – interest rate level (three-month NIBOR) and unemployment (Statistics Norway's Labour Force Survey, AKU). The assumptions in the baseline scenario are based on the assumptions in Norges Bank's Monetary Policy Report 4/24. Updated macro assumptions this quarter have had a small positive effect on the level of write-downs due to a lower interest rate path in the base scenario and increased estimates for price increases on housing, as per updated estimates from Norges Bank. The downside scenario features high interest rates and high unemployment, which are largely based on Finanstilsynet's stress test reported in Financial Outlook, June 2023. The upside scenario features low interest rates and low unemployment.
Calculation of the group's overall model write-downs is based on calculations of expected credit loss (ECL) for each of five portfolios below. For each portfolio, separate assumptions are defined with regard to how the macro variables 'interest rate' and 'unemployment' impact PD and LGD. The relationships between the macro variables are developed using of regression analysis and simulation, while the relationships between the macro variables and LGD are based largely on expert assessments and discretionary judgement. The five portfolios are:
- Residential mortgages
- Other retail loans
- Agriculture
- Industries with large balance sheets / high long-term debt ratios (real estate, shipping, offshore, aquaculture, fishery)
- Industries with smaller balance sheets / low long-term debt ratios (other industries)
The criteria for classification in stage 2 ("significantly increased credit risk since approval") have not been changed in the quarter. The customers in building and construction industry (including industries closely linked to the building and construction sector) and some fishery segments are generally considered to have acquired significantly increased credit risk since loan approval and customers in this industry are accordingly classified to stage 2 or 3.
ECL as at 31 December 2024 is calculated as a combination of 80 per cent expected scenario, 10 per cent downside scenario and 10 per cent upside scenario (80/10/10 pct).
The effect of the change of assumptions in 2024 is shown in the line "Effect of changed assumptions in the ECL model" in note 7. This quarter the model has been updated with a new version of the LGD-model which give higher estimated credit losses. At the same time the PD model has been re-calibrated to take into account that the calculated PD has been higher than historically observed default levels. Combined, this give somewhat reduced model write-downs for the retail market, and increased write-downs for the corporate portfolio. Overall, for 2024 this amounts to NOK 6 m for the bank in increased write-downs and NOK 18 m for the group in terms of reduced write-downs.
Sensitivity
The first part of the table below show total calculated expected credit loss as of 31 December 2024 in each of the three scenarios, distributed in the portfolios Retail Market, Corporate Market 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 2024, this would have entailed an increase in loss provisions of NOK 114 million for the parent bank and NOK 135 million for the group.
| CM | RM | Agri culture |
Total parent |
SB 1 Finans MN CM |
SB 1 Finans MN RM |
Total group |
|
|---|---|---|---|---|---|---|---|
| ECL base case | 610 | 98 | 89 | 797 | 38 | 15 | 850 |
| ECL worst case | 1,422 | 316 | 203 | 1,941 | 186 | 79 | 2,206 |
| ECL best case | 426 | 79 | 66 | 571 | 22 | 11 | 604 |
| ECL with scenario weights used 80/10/10 |
672 | 118 | 98 | 888 | 51 | 21 | 960 |
| ECL alternative scenario weights 70/20/10 |
754 | 140 | 109 | 1,003 | 66 | 27 | 1,096 |
| Total ECL used | 81 | 22 | 11 | 114 | 15 | 6 | 135 |
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 60 per cent of the ECL in the expected scenario. The downside scenario gives over double the ECL than in the expected scenario. Applied scenario weighting gives about 13 percent higher ECL than in the expected scenario.
Note 3 - Account by business line
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.
Group January - December 2024
| Sunnmøre | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Profit and loss account (NOKm) |
og | SB 1 Finans | SB 1 Regnskaps | ||||||
| RM | CM | Fjordane | EM 1 | MN | huset SMN | Other | Uncollated | Total | |
| Net interest | 1,924 | 1,456 | 715 | 6 | 549 | 4 | - | 721 | 5,373 |
| Interest from allocated capital | 418 | 242 | 161 | - | - | - | - | -821 | - |
| Total interest income | 2,342 | 1,697 | 876 | 6 | 549 | 4 | - | -100 | 5,373 |
| Comission income and other income | 752 | 236 | 158 | 505 | -96 | 804 | - | 33 | 2,392 |
| Net return on financial investments **) | -5 | 3 | 8 | 1 | - | - | 1,254 | 97 | 1,357 |
| Total income | 3,088 | 1,936 | 1,041 | 512 | 453 | 808 | 1,254 | 30 | 9,123 |
| Total operating expenses | 668 | 233 | 212 | 442 | 136 | 730 | - | 880 | 3,300 |
| Ordinary operating profit |
2,421 | 1,703 | 829 | 71 | 317 | 78 | 1,254 | -849 | 5,823 |
| Loss on loans, guarantees etc. | 30 | 88 | 38 | - | 20 | - | - | -0 | 176 |
| Result before tax | 2,390 | 1,615 | 792 | 71 | 298 | 78 | 1,254 | -849 | 5,647 |
| Return on equity *) | 18.9 % |
23.7 % |
16.0 % |
16.6 % |
*) Regulatory capital in line with the bank's capital target have been used as basis for calculating capital used in the Retail and Corporate market.
Group January - December 2023
| Sunnmøre | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| RM | CM | Fjordane | EM 1 | MN | huset SMN | Other | Uncollated | Total | ||
| 1,824 | 1,335 | 598 | 2 | 490 | 4 | - | 379 | 4,632 | ||
| 328 | 195 | 112 | - | - | - | - | -634 | - | ||
| 2,151 | 1,530 | 709 | 2 | 490 | 4 | - | -255 | 4,632 | ||
| 652 | 234 | 110 | 432 | -97 | 716 | - | 37 | 2,084 | ||
| 1 | 6 | 7 | 1 | -82 | - | 379 | 488 | 799 | ||
| 2,804 | 1,770 | 826 | 435 | 311 | 720 | 379 | 270 | 7,515 | ||
| 1,078 | 407 | 315 | 395 | 115 | 612 | - | 97 | 3,017 | ||
| 1,726 | 1,363 | 512 | 40 | 196 | 108 | 379 | 173 | 4,498 | ||
| 1 | 45 | -118 | - | 86 | - | - | -0 | 14 | ||
| 1,725 | 1,318 | 629 | 40 | 111 | 108 | 379 | 173 | 4,484 | ||
| 18.2 % |
24.3 % |
19.6 % |
1.5 % |
14.4 % |
||||||
| og | SB 1 Finans | SB 1 Regnskaps |
*) Regulatory capital in line with the bank's capital target have been used as basis for calculating capital used in the Retail and Corporate market.
| January - December | ||||
|---|---|---|---|---|
| **) Specification of other (NOKm) |
2024 | 2023 | ||
| SpareBank 1 Gruppen | 226 | −34 | ||
| Gevinst fra forsikringsfusjon Fremtind/Eika | 452 | 0 | ||
| SpareBank 1 Boligkreditt | 129 | 98 | ||
| SpareBank 1 Næringskreditt | 14 | 10 | ||
| BN Bank | 302 | 257 | ||
| SpareBank1 Markets | 89 | 19 | ||
| SpareBank 1 Kreditt | −10 | −13 | ||
| SpareBank 1 Betaling | −19 | −37 | ||
| SpareBank 1 Forvaltning | 54 | 35 | ||
| Other companies | 15 | 46 | ||
| Income from investment in associates and joint ventures | 1,254 | 379 | ||
| SpareBank 1 Mobilitet Holding | −82 | |||
| Net income from investment in associates and joint ventures |
1,254 | 297 |
Note 4 - Capital adequacy
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 December 2024 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 for SpareBank 1 SMN. From 31 December 2023, the requirement is 1.7 per cent and must be met with a minimum of 56.25 per cent. 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 December 2024, the average risk weights are over 20 per cent for the group.
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 December 2024 the effective rate for the group is 4.44 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. As of 31 December 2024 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 2023 |
31 Dec 2024 |
(NOKm) | 31 Dec 2024 |
31 Dec 2023 |
| 25,150 | 25,898 | Total book equity | 30,523 | 28,597 |
| -1,800 | -1,943 | Additional Tier 1 capital instruments included in total equity |
-2,039 | -1,903 |
| -812 | -771 | Deferred taxes, goodwill and other intangible assets |
-2,272 | -1,625 |
| -2,591 | -2,698 | Deduction for allocated dividends and gifts | -2,698 | -2,591 |
| - | - | Non-controlling interests recognised in other equity capital |
-821 | -666 |
| - | - | Non-controlling interests eligible for inclusion in CET1 capital |
700 | 679 |
| -53 | -58 | Value adjustments due to requirements for prudent valuation |
-78 | -72 |
| -412 | -407 | Positive value of adjusted expected loss under IRB Approach |
-641 | -546 |
| - | - | Cash flow hedge reserve | -2 | -4 |
| -350 | -350 | Deduction for common equity Tier 1 capital in significant investments in financial institutions |
-264 | -278 |
| 19,131 | 19,670 | Common equity Tier 1 capital | 22,409 | 21,589 |
| 1,800 | 1,800 | Additional Tier 1 capital instruments | 2,409 | 2,252 |
| -48 | -49 | Deduction for significant investments in financial institutions |
-49 | -48 |
| 20,883 | 21,422 | Tier 1 Capital | 24,769 | 23,793 |
| Supplementary capital in excess of core capital |
||||
| 2,150 | 2,650 | Subordinated capital | 3,465 | 2,822 |
| -216 | -230 | Deduction for significant investments in financial institutions |
-230 | -216 |
| 1,934 | 2,420 | Additional Tier 2 capital instruments | 3,235 | 2,606 |
| 22,817 | 23,842 | Total eligible capital | 28,004 | 26,399 |
| Parent Bank | Group Parent Bank |
Group | |||||||
|---|---|---|---|---|---|---|---|---|---|
| 31 Dec 2023 |
31 Dec 2024 |
(NOKm) | 31 Dec 2024 |
31 Dec 2023 |
31 Dec 2023 |
31 Dec 2024 |
(NOKm) | 31 Dec 2024 |
31 Dec 2023 |
| Risk weighted assets (RWA) | Capital Buffers | ||||||||
| 15,701 | 17,015 | Specialised enterprises | 20,514 | 19,226 | 2,184 | 2,348 | Capital conservation buffer, 2.5 per cent | 3,066 | 2,866 |
| 11,303 | 12,252 | Corporate | 12,422 | 11,634 | 3,896 | 4,179 | Systemic risk buffer, 4.5 per cent | 5,444 | 5,081 |
| 19,617 | 21,185 | Mass market exposure, property | 39,806 | 36,333 | 2,184 | 2,348 | Countercyclical buffer, 1.0 per cent | 3,066 | 2,866 |
| 1,545 | 1,498 | Other mass market | 1,540 | 1,577 | 8,264 | 8,874 | Total buffer requirements on CET1 | 11,576 | 10,813 |
| 18,558 | 19,411 | Equity positions IRB | - | - | capital | ||||
| 66,724 | 71,361 | Total credit risk IRB | 74,283 | 68,770 | 6,937 | 6,571 | Available CET1 capital after buffer requirements |
5,315 | 5,618 |
| 40 | 15 | Central government | 324 | 68 | |||||
| 1,188 | 1,450 | Covered bonds | 2,100 | 1,908 | Capital adequacy | ||||
| 4,659 | 4,540 | Institutions | 3,327 | 3,495 | 21.9 % |
20.9 % |
Common equity Tier 1 capital ratio | 18.3 % |
18.8 % |
| 1,371 | 1,032 | Local and regional authorities, state | 1,177 | 1,829 | 23.9 % |
22.8 % |
Tier 1 capital ratio | 20.2 % |
20.8 % |
| owned enterprises | 26.1 % |
25.4 % |
Capital ratio | 22.8 % |
23.0 % |
||||
| 3,101 | 3,145 | Corporate | 6,895 | 6,325 | |||||
| 49 | 216 | Mass market | 9,141 | 8,785 | Leverage ratio | ||||
| 467 | 840 | Exposures secured on real property | 1,592 | 1,573 | 221,334 | 235,069 | Balance sheet items | 342,557 | 323,929 |
| 792 | 889 | Equity positions | 5,946 | 5,809 | 7,559 | 8,473 | Off-balance sheet items | 10,145 | 8,984 |
| 1,400 | 1,682 | Other assets | 2,734 | 2,224 | -513 | -513 Regulatory adjustments |
-768 | -666 | |
| 13,069 | 13,810 | Total credit risk standardised approach |
33,235 | 32,016 | 228,380 | 243,028 | Calculation basis for leverage ratio | 351,934 | 332,247 |
| 20,883 | 21,422 | Core capital | 24,769 | 23,793 | |||||
| 279 | 409 | Debt risk | 405 | 279 | 9.1 % | 8.8 % | Leverage Ratio | 7.0 % | 7.2 % |
| - | - | Equity risk | 137 | 82 | |||||
| - | - | Currency risk and risk exposure for settlement/delivery |
13 | 21 | |||||
| 6,810 | 7,859 | Operational risk | 13,125 | 11,548 | |||||
| 472 | 463 | Credit value adjustment risk (CVA) | 1,424 | 1,918 | |||||
| 87,354 | 93,902 | Risk weighted assets (RWA) | 122,622 | 114,633 | |||||
| 6,988 | 7,512 | Minimum requirements subordinated capital |
9,810 | 9,171 | |||||
| 3,931 | 4,226 | Minimum requirement on CET1 capital, 4.5 per cent |
5,518 | 5,159 |
SPAREBANK 1 SMN
Note 5 - Distribution of loans by sector/industry
| Parent Bank | Group | |||
|---|---|---|---|---|
| 31 Dec 2023 |
31 Dec 2024 |
(NOKm) | 31 Dec 2024 |
31 Dec 2023 |
| 12,021 | 13,029 | Agriculture and forestry | 13,519 | 12,489 |
| 5,459 | 6,055 | Fisheries and hunting | 6,085 | 5,488 |
| 2,218 | 3,835 | Sea farming industries | 4,144 | 2,473 |
| 3,170 | 3,697 | Manufacturing | 4,362 | 3,757 |
| 6,111 | 4,996 | Construction, power and water supply | 6,332 | 7,353 |
| 2,845 | 3,266 | Retail trade, hotels and restaurants | 4,201 | 3,777 |
| 6,030 | 4,043 | Maritime sector | 4,043 | 6,030 |
| 21,288 | 24,845 | Property management | 24,964 | 21,400 |
| 4,239 | 4,965 | Business services | 5,701 | 5,148 |
| 5,396 | 6,099 | Transport and other services provision | 7,311 | 6,459 |
| 2 | 37 | Public administration | 62 | 39 |
| 2,220 | 1,548 | Other sectors | 1,466 | 2,140 |
| 70,997 | 76,414 | Gross loans in Corporate market | 82,191 | 76,553 |
| 152,710 | 159,911 | Wage earners | 167,159 | 159,777 |
| 223,708 | 236,326 | Gross loans incl. SB1 Boligkreditt /SB1 Næringskreditt |
249,350 | 236,329 |
| 64,719 | 67,830 | of which SpareBank 1 Boligkreditt | 67,830 | 64,719 |
| 1,749 | 1,419 | of which SpareBank 1 Næringskreditt | 1,419 | 1,749 |
| 157,240 | 167,077 | Total Gross loans to and receivables from customers | 180,102 | 169,862 |
| 659 | 641 | - Loan loss allowance on amortised cost loans | 724 | 790 |
| 117 | 124 | - Loan loss allowance on loans at FVOCI | 124 | 117 |
| 156,464 | 166,312 | Net loans to and receivables from customers | 179,254 | 168,955 |
Note 6 - Losses on loans and guarantees
| January - December | Fourth quarter | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |||||||||
| Parent Bank (NOKm) | RM | CM | Total | RM | CM | Total | RM | CM | Total | RM | CM | Total |
| Change in provision for expected credit losses | 38 | 28 | 65 | 4 | −59 | −55 | 2 | −39 | −37 | −8 | −33 | −41 |
| Actual loan losses on commitments exceeding provisions made |
3 | 105 | 109 | 11 | 146 | 157 | 0 | 78 | 78 | 0 | 135 | 135 |
| Recoveries on commitments previously written-off | −5 | −13 | −18 | −21 | −153 | −174 | −1 | −7 | −8 | 5 | −126 | −121 |
| Losses for the period on loans and guarantees | 36 | 120 | 156 | −6 | −66 | −72 | 1 | 31 | 32 | −2 | −25 | −27 |
| January - December | Fourth quarter | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |||||||||
| Group (NOKm) | RM | CM | Total | RM | CM | Total | RM | CM | Total | RM | CM | Total |
| Change in provision for expected credit losses | 33 | −14 | 19 | 1 | −7 | −6 | 1 | −87 | −87 | −14 | 11 | −4 |
| Actual loan losses on commitments exceeding provisions made |
9 | 166 | 175 | 47 | 168 | 215 | 6 | 139 | 144 | 1 | 144 | 145 |
| Recoveries on commitments previously written-off | −5 | −14 | −19 | −40 | −155 | −195 | −6 | −21 | −28 | 5 | −126 | −121 |
| Losses for the period on loans and guarantees | 37 | 139 | 176 | 8 | 6 | 14 | 0 | 30 | 30 | −8 | 28 | 20 |
Note 7 - Losses
| Net write-offs / | ||||
|---|---|---|---|---|
| Parent Bank (NOKm) | 01 Jan 24 | Change in provision | recoveries | 31 Dec 24 |
| Loans as amortised cost- CM | 671 | 37 | -31 | 677 |
| Loans as amortised cost- RM | 43 | 26 | -0 | 69 |
| Loans at fair value over OCI- RM | 137 | 12 | - | 149 |
| Loans at fair value over OCI- CM | 13 | -9 | - | 4 |
| Provision for expected credit losses on loans and guarantees | 864 | 65 | -31 | 899 |
| Presented as | ||||
| Provision for loan losses | 776 | 20 | -31 | 765 |
| Other debt- provisons | 53 | 50 | - | 102 |
| Other comprehensive income - fair value adjustment | 36 | -4 | - | 31 |
| Merger Søre | Net write-offs / | ||||
|---|---|---|---|---|---|
| Parent Bank (NOKm) | 01 Jan 23 | Sunnmøre | Change in provision | recoveries | 31 Dec 23 |
| Loans as amortised cost- CM | 921 | 32 | -101 | -181 | 671 |
| Loans as amortised cost- RM | 35 | 11 | 2 | -5 | 43 |
| Loans at fair value over OCI- RM | 147 | - | -10 | - | 137 |
| Loans at fair value over OCI- CM | 2 | - | 11 | - | 13 |
| Provision for expected credit losses on loans and guarantees | 1,106 | 43 | -99 | -186 | 864 |
| Presented as | |||||
| Provision for loan losses | 999 | 41 | -77 | -186 | 776 |
| Other debt- provisons | 67 | 2 | -16 | - | 53 |
| Other comprehensive income - fair value adjustment | 40 | - | -5 | - | 36 |
| Net write-offs / | ||||
|---|---|---|---|---|
| Group (NOKm) | 1 Jan 24 | Change in provision | recoveries | 31 Dec 24 |
| Loans as amortised cost- CM | 777 | 39 | -77 | 739 |
| Loans as amortised cost- RM | 68 | 21 | -0 | 89 |
| Loans at fair value over OCI- RM | 137 | 12 | - | 149 |
| Loans at fair value over OCI- CM | 13 | -9 | - | 4 |
| Provision for expected credit losses on loans and guarantees | 995 | 63 | -77 | 981 |
| Presented as | ||||
| Provision for loan losses | 907 | 18 | -77 | 848 |
| Other debt- provisons | 53 | 50 | - | 102 |
| Other comprehensive income - fair value adjustment | 36 | -4 | - | 31 |
| Merger Søre | Net write-offs / | ||||
|---|---|---|---|---|---|
| Group (NOKm) | 1 Jan 23 | Sunnmøre | Change in provision | recoveries | 31 Dec 23 |
| Loans as amortised cost- CM | 976 | 32 | -44 | -186 | 777 |
| Loans as amortised cost- RM | 63 | 11 | -1 | -5 | 68 |
| Loans at fair value over OCI- RM | 147 | - | -10 | - | 137 |
| Loans at fair value over OCI- CM | 2 | - | 11 | - | 13 |
| Provision for expected credit losses on loans and guarantees | 1,188 | 43 | -44 | -192 | 995 |
| Presented as | |||||
| Provision for loan losses | 1,081 | 41 | -23 | -192 | 907 |
| Other debt- provisons | 67 | 2 | -16 | - | 53 |
| Other comprehensive income - fair value adjustment | 40 | - | -5 | - | 36 |
Accrual for losses on loans
| 31 Dec 2024 | 31 Dec 2023 | |||||||
|---|---|---|---|---|---|---|---|---|
| Parent Bank (NOKm) | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total |
| Retail market | ||||||||
| Opening balance | 38 | 95 | 45 | 179 | 46 | 93 | 42 | 181 |
| Transfer to (from) stage 1 | 16 | −16 | 0 | 0 | 18 | −18 | 0 | 0 |
| Transfer to (from) stage 2 | −4 | 5 | −1 | 0 | −3 | 3 | 0 | 0 |
| Transfer to (from) stage 3 | −1 | −9 | 10 | 0 | 0 | −8 | 9 | 0 |
| Net remeasurement of loss allowances | −16 | 36 | 25 | 45 | −26 | 19 | −5 | −12 |
| Originations or purchases | 14 | 20 | 2 | 36 | 15 | 20 | 3 | 37 |
| Derecognitions | −12 | −26 | −5 | −42 | −14 | −31 | −4 | −49 |
| Changes due to changed input assumptions | 1 | −3 | −4 | −6 | 3 | 16 | 8 | 27 |
| Actual loan losses | 0 | 0 | 0 | 0 | 0 | 0 | −5 | −5 |
| Closing balance | 36 | 103 | 72 | 211 | 38 | 95 | 45 | 179 |
| Corporate Market | ||||||||
| Opening balance | 160 | 267 | 205 | 633 | 138 | 298 | 421 | 858 |
| 191 | 382 | 224 | 796 | 363 | 812 | ||
|---|---|---|---|---|---|---|---|
| 155 | 278 | 152 | 585 | 160 | 267 | 205 | 633 |
| 0 | 0 | −31 | −31 | 0 | 0 | −181 | −181 |
| −7 | 8 | 14 | 15 | −2 | 31 | −62 | −33 |
| −60 | −108 | −14 | −181 | −52 | −68 | −15 | −136 |
| 70 | 57 | 3 | 131 | 90 | 35 | 37 | 163 |
| −23 | 90 | −49 | 18 | −58 | 11 | 9 | −38 |
| −7 | −19 | 26 | 0 | −1 | −5 | 6 | 0 |
| −9 | 11 | −2 | 0 | −14 | 24 | −10 | 0 |
| 29 | −29 | 0 | 0 | 59 | −59 | 0 | 0 |
| 198 | 251 |
SPAREBANK 1 SMN
| 31 Dec 2024 | 31 Dec 2023 | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Group (NOKm) | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | |
| Retail market | |||||||||
| Opening balance | 46 | 111 | 46 | 204 | 55 | 107 | 47 | 209 | |
| Transfer to (from) stage 1 | 19 | −19 | −1 | 0 | 21 | −20 | −1 | 0 | |
| Transfer to (from) stage 2 | −5 | 6 | −1 | 0 | −4 | 5 | −1 | 0 | |
| Transfer to (from) stage 3 | −1 | −11 | 12 | 0 | −1 | −10 | 11 | 0 | |
| Net remeasurement of loss allowances | −19 | 41 | 25 | 47 | −28 | 25 | −6 | −9 | |
| Originations or purchases | 17 | 23 | 2 | 42 | 19 | 25 | 3 | 47 | |
| Derecognitions | −14 | −29 | −5 | −48 | −17 | −34 | −7 | −58 | |
| Changes due to changed input assumptions | −1 | −7 | −4 | −13 | 0 | 14 | 7 | 21 | |
| Actual loan losses | 0 | 0 | 0 | 0 | 0 | 0 | −5 | −5 | |
| Closing balance | 43 | 116 | 73 | 232 | 46 | 111 | 46 | 204 | |
| Corporate Market | |||||||||
| Opening balance | 172 | 299 | 268 | 739 | 151 | 311 | 450 | 912 | |
| Transfer to (from) stage 1 | 34 | −33 | 0 | 0 | 63 | −63 | 0 | 0 | |
| Transfer to (from) stage 2 | −10 | 13 | −3 | 0 | −18 | 28 | −10 | 0 | |
| Transfer to (from) stage 3 | −7 | −20 | 27 | 0 | −1 | −6 | 7 | 0 | |
| Net remeasurement of loss allowances | −25 | 98 | −46 | 27 | −59 | 22 | 60 | 23 |
Originations or purchases 75 70 4 149 96 46 38 181 Derecognitions −62 −112 −14 −188 −54 −70 −16 −140 Changes due to changed input assumptions −10 −1 9 −2 −5 29 −75 −51 Actual loan losses 0 0 −77 −77 0 0 −186 −186 Closing balance 166 313 168 647 172 299 268 739 Total accrual for loan losses 209 429 241 879 218 410 314 943
Accrual for losses on guarantees and unused credit lines
| 31 Dec 2024 | 31 Dec 2023 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Parent Bank and Group (NOKm) | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | ||
| Opening balance | 18 | 27 | 8 | 53 | 24 | 34 | 9 | 67 | ||
| Transfer to (from) stage 1 | 12 | −12 | 0 | 0 | 6 | −6 | 0 | 0 | ||
| Transfer to (from) stage 2 | −1 | 1 | 0 | 0 | −2 | 2 | 0 | 0 | ||
| Transfer to (from) stage 3 | 0 | 0 | 1 | 0 | 0 | −1 | 1 | 0 | ||
| Net remeasurement of loss allowances | −11 | 9 | 44 | 41 | −13 | −4 | 2 | −15 | ||
| Originations or purchases | 18 | 4 | 2 | 23 | 9 | 4 | 0 | 13 | ||
| Derecognitions | −6 | −4 | −2 | −12 | −6 | −8 | −1 | −15 | ||
| Changes due to changed input assumptions | −3 | 2 | −2 | −3 | 0 | 5 | −3 | 2 | ||
| Actual loan losses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||
| Closing balance | 26 | 26 | 50 | 102 | 18 | 27 | 8 | 53 | ||
| Of which | ||||||||||
| Retail market | 6 | 1 | ||||||||
| Corporate Market | 96 | 51 |
Provision for credit losses specified by industry
| 31 Dec 2024 | 31 Dec 2023 | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Parent Bank (NOKm) | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | |
| Agriculture and forestry | 2 | 49 | 28 | 80 | 3 | 44 | 10 | 57 | |
| Fisheries and hunting | 9 | 65 | 18 | 92 | 6 | 33 | - | 39 | |
| Sea farming industries | 7 | 2 | 1 | 9 | 5 | 0 | 0 | 5 | |
| Manufacturing | 11 | 26 | 14 | 51 | 15 | 31 | 13 | 59 | |
| Construction, power and water supply | 28 | 37 | 43 | 108 | 46 | 25 | 28 | 99 | |
| Retail trade, hotels and restaurants | 14 | 34 | 14 | 63 | 8 | 13 | 1 | 23 | |
| Maritime sector | 3 | 2 | 25 | 30 | 7 | 54 | 103 | 164 | |
| Property management | 41 | 86 | 28 | 156 | 44 | 92 | 22 | 159 | |
| Business services | 22 | 22 | 2 | 46 | 17 | 16 | 24 | 57 | |
| Transport and other services | 22 | 7 | 3 | 32 | 10 | 6 | 13 | 29 | |
| Public administration | 0 | 0 | 0 | 0 | 0 | - | - | 0 | |
| Other sectors | 1 | 0 | 0 | 1 | 1 | 0 | - | 1 | |
| Wage earners | 1 | 50 | 48 | 99 | 1 | 47 | 35 | 83 | |
| Total provision for losses on loans | 160 | 382 | 224 | 765 | 163 | 363 | 251 | 776 | |
| loan loss allowance on loans at FVOCI | 31 | 0 | 0 | 31 | 36 | 0 | 0 | 36 | |
| Total loan loss allowance | 191 | 382 | 224 | 796 | 198 | 363 | 251 | 812 |
| 31 Dec 2024 | 31 Dec 2023 | |||||||
|---|---|---|---|---|---|---|---|---|
| Group (NOKm) | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total |
| Agriculture and forestry | 3 | 51 | 29 | 83 | 4 | 46 | 10 | 60 |
| Fisheries and hunting | 9 | 65 | 18 | 92 | 6 | 33 | 0 | 39 |
| Sea farming industries | 8 | 2 | 2 | 11 | 6 | 0 | 0 | 6 |
| Manufacturing | 13 | 31 | 17 | 61 | 18 | 36 | 13 | 68 |
| Construction, power and water supply | 28 | 55 | 45 | 129 | 46 | 42 | 33 | 121 |
| Retail trade, hotels and restaurants | 17 | 36 | 14 | 67 | 11 | 15 | 2 | 28 |
| Maritime sector | 3 | 2 | 25 | 30 | 7 | 54 | 103 | 164 |
| Property management | 41 | 87 | 28 | 156 | 45 | 93 | 22 | 160 |
| Business services | 24 | 24 | 10 | 58 | 19 | 18 | 78 | 114 |
| Transport and other services | 25 | 13 | 4 | 42 | 12 | 11 | 16 | 39 |
| Public administration | 0 | 0 | - | 0 | 0 | - | - | 0 |
| Other sectors | 1 | 0 | 0 | 1 | 1 | 0 | - | 1 |
| Wage earners | 7 | 62 | 49 | 117 | 8 | 62 | 36 | 106 |
| Total provision for losses on loans | 178 | 429 | 241 | 848 | 183 | 410 | 314 | 907 |
| loan loss allowance on loans at FVOCI | 31 | - | - | 31 | 36 | - | - | 36 |
| Total loan loss allowance | 209 | 429 | 241 | 879 | 218 | 410 | 314 | 943 |
Note 8 - Gross loans
| 31 Dec 2024 | 31 Dec 2023 | |||||||
|---|---|---|---|---|---|---|---|---|
| Parent Bank (NOKm) | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total |
| Retail Market | ||||||||
| Opening balance | 90,901 | 4,553 | 725 | 96,178 | 80,994 | 3,962 | 527 | 85,484 |
| Transfer to stage 1 | 986 | −955 | −32 | 0 | 895 | −868 | −27 | 0 |
| Transfer to stage 2 | −1,808 | 1,852 | −44 | 0 | −1,538 | 1,557 | −18 | 0 |
| Transfer to stage 3 | −125 | −211 | 336 | 0 | −38 | −156 | 194 | 0 |
| Net increase/decrease amount existing loans | −2,207 | −94 | −37 | −2,337 | −2,305 | −95 | −6 | −2,406 |
| New loans | 44,893 | 1,607 | 360 | 46,860 | 42,690 | 1,549 | 222 | 44,460 |
| Derecognitions | −41,895 | −2,003 | −320 | −44,218 | −29,797 | −1,395 | −149 | −31,342 |
| Financial assets with actual loan losses | 0 | 0 | −1 | −1 | 0 | 0 | −18 | −18 |
| Closing balance | 90,744 | 4,749 | 988 | 96,481 | 90,901 | 4,553 | 725 | 96,178 |
| Corporate Market | ||||||||
| Opening balance | 47,327 | 6,988 | 1,165 | 55,480 | 43,127 | 5,883 | 1,346 | 50,356 |
| Transfer to stage 1 | 1,259 | −1,258 | −1 | 0 | 1,026 | −1,021 | −5 | 0 |
| Transfer to stage 2 | −2,487 | 2,631 | −144 | 0 | −2,669 | 2,670 | −1 | 0 |
| Transfer to stage 3 | −44 | −342 | 386 | 0 | −72 | −44 | 116 | 0 |
| Net increase/decrease amount existing loans | −1,780 | −253 | 0 | −2,033 | −1,099 | −485 | −10 | −1,594 |
| New loans | 19,037 | 971 | 272 | 20,281 | 17,922 | 816 | 351 | 19,089 |
| Derecognitions | −10,827 | −2,202 | −627 | −13,655 | −10,901 | −828 | −335 | −12,064 |
| Financial assets with actual loan losses | 0 | 0 | −46 | −46 | −7 | −2 | −298 | −307 |
| Closing balance | 52,484 | 6,536 | 1,006 | 60,026 | 47,327 | 6,988 | 1,165 | 55,480 |
| Fixed interest loans at FV | 10,570 | 10,570 | 5,582 | 5,582 | ||||
| Total gross loans at the end of the period | 153,797 | 11,286 | 1,994 | 167,077 | 143,809 | 11,541 | 1,890 | 157,240 |
| 31 Dec 2024 | 31 Dec 2023 | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Group (NOKm) | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | |
| Retail Market | |||||||||
| Opening balance | 96,963 | 5,474 | 825 | 103,263 | 86,972 | 4,901 | 635 | 92,508 | |
| Transfer to stage 1 | 1,229 | −1,193 | −36 | 0 | 1,138 | −1,108 | −30 | 0 | |
| Transfer to stage 2 | −2,267 | 2,322 | −55 | 0 | −1,955 | 1,978 | −23 | 0 | |
| Transfer to stage 3 | −152 | −267 | 419 | 0 | −59 | −219 | 277 | 0 | |
| Net increase/decrease amount existing loans | −2,191 | −170 | −52 | −2,414 | −2,272 | −165 | −20 | −2,457 | |
| New loans | 47,975 | 1,825 | 371 | 50,171 | 45,658 | 1,781 | 231 | 47,670 | |
| Derecognitions | −44,637 | −2,293 | −364 | −47,294 | −32,519 | −1,694 | −227 | −34,440 | |
| Financial assets with actual loan losses | 0 | 0 | −1 | −1 | 0 | 0 | −18 | −18 | |
| Closing balance | 96,920 | 5,698 | 1,107 | 103,725 | 96,963 | 5,474 | 825 | 103,263 | |
| Corporate Market | |||||||||
| Opening balance | 51,327 | 8,533 | 1,259 | 61,119 | 47,621 | 6,460 | 1,410 | 55,491 | |
| Transfer to stage 1 | 1,419 | −1,412 | −6 | 0 | 1,207 | −1,199 | −8 | 0 | |
| Transfer to stage 2 | −2,835 | 2,995 | −161 | 0 | −3,639 | 3,655 | −17 | 0 | |
| Transfer to stage 3 | −79 | −378 | 458 | 0 | −101 | −80 | 180 | 0 | |
| Net increase/decrease amount existing loans | −1,867 | −286 | −14 | −2,167 | −1,103 | −692 | −23 | −1,818 | |
| New loans | 20,250 | 1,664 | 304 | 22,218 | 19,159 | 1,339 | 368 | 20,866 | |
| Derecognitions | −11,953 | −2,591 | −670 | −15,214 | −11,811 | −949 | −354 | −13,114 | |
| Financial assets with actual loan losses | 0 | 0 | −46 | −46 | −7 | −2 | −297 | −306 | |
| Balance at 31 December | 56,263 | 8,524 | 1,123 | 65,910 | 51,327 | 8,533 | 1,259 | 61,119 | |
| Fixed interest loans at FV | 10,467 | 10,467 | 5,480 | 5,480 | |||||
| Total gross loans at the end of the period | 163,649 | 14,222 | 2,231 | 180,102 | 153,770 | 14,007 | 2,085 | 169,862 |
Note 9 - Distribution of customer deposits by sector /industry
| Parent Bank | Group | |||
|---|---|---|---|---|
| 31 Dec 2023 |
31 Dec 2024 |
(NOKm) | 31 Dec 2024 |
31 Dec 2023 |
| 2,460 | 2,638 | Agriculture and forestry | 2,638 | 2,460 |
| 1,588 | 1,658 | Fisheries and hunting | 1,658 | 1,588 |
| 1,157 | 1,538 | Sea farming industries | 1,538 | 1,157 |
| 2,671 | 3,041 | Manufacturing | 3,041 | 2,671 |
| 5,251 | 3,833 | Construction, power and water supply | 3,833 | 5,251 |
| 5,996 | 5,707 | Retail trade, hotels and restaurants | 5,707 | 5,996 |
| 1,132 | 1,373 | Maritime sector | 1,373 | 1,132 |
| 5,867 | 7,503 | Property management | 7,413 | 5,787 |
| 13,413 | 13,004 | Business services | 13,004 | 13,413 |
| 11,164 | 14,119 | Transport and other services provision | 13,641 | 10,698 |
| 19,437 | 16,535 | Public administration | 16,535 | 19,437 |
| 5,452 | 7,954 | Other sectors | 7,933 | 5,425 |
| 75,588 | 78,904 | Total | 78,316 | 75,015 |
| 57,874 | 62,581 | Wage earners | 62,581 | 57,874 |
| 133,462 | 141,485 | Total deposits | 140,897 | 132,888 |
Note 10 - Net interest income
| Parent Bank | Group | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Fourth quarter | January - December | January - December | Fourth quarter | |||||||
| 2023 | 2024 | 2023 | 2024 | (NOKm) | 2024 | 2023 | 2024 | 2023 | ||
| Interest income | ||||||||||
| 248 | 264 | 887 | 1,045 | Interest income from loans to and claims on central banks and credit institutions (amortised cost) |
443 | 380 | 112 | 98 | ||
| 1,397 | 1,453 | 4,716 | 5,621 | Interest income from loans to and claims on customers (amortised cost) | 6,763 | 5,701 | 1,745 | 1,659 | ||
| 1,084 | 1,110 | 3,616 | 4,456 | Interest income from loans to and claims on customers (FVOCI) | 4,456 | 3,616 | 1,110 | 1,084 | ||
| 46 | 105 | 165 | 269 | Interest income from loans to and claims on customers (FVPL) | 269 | 165 | 105 | 46 | ||
| 405 | 405 | 1,482 | 1,614 | Interest income from money market instruments, bonds and other fixed income securities |
1,606 | 1,477 | 405 | 403 | ||
| 0 | 0 | 0 | 0 | Other interest income | 24 | 24 | 6 | 6 | ||
| 3,180 | 3,338 | 10,866 | 13,005 | Total interest income | 13,560 | 11,362 | 3,483 | 3,297 | ||
| 159 | 142 | 559 | 628 | Interest expenses on liabilities to credit institutions | 628 | 559 | 142 | 159 | ||
| 1,134 | 1,293 | 3,780 | 4,949 | Interest expenses relating to deposits from and liabilities to customers | 4,900 | 3,748 | 1,280 | 1,123 | ||
| 591 | 605 | 2,056 | 2,324 | Interest expenses related to the issuance of securities | 2,324 | 2,057 | 605 | 592 | ||
| 38 | 45 | 129 | 175 | Interest expenses on subordinated debt | 180 | 132 | 45 | 39 | ||
| 2 | 3 | 9 | 12 | Other interest expenses | 62 | 45 | 15 | 14 | ||
| 23 | 23 | 90 | 93 | Guarantee fund levy | 93 | 90 | 23 | 23 | ||
| 1,948 | 2,112 | 6,622 | 8,180 | Total interest expense | 8,187 | 6,631 | 2,110 | 1,951 | ||
| 1,232 | 1,226 | 4,244 | 4,824 | Net interest income | 5,373 | 4,732 | 1,372 | 1,345 |
Note 11 - Net commision income and other income
| Parent Bank | Group | |||||||
|---|---|---|---|---|---|---|---|---|
| Fourth quarter | January - December | January - December | Fourth quarter | |||||
| 2023 | 2024 | 2023 | 2024 | (NOKm) | 2024 | 2023 | 2024 | 2023 |
| Commission income | ||||||||
| 18 | 19 | 68 | 73 | Guarantee commission | 73 | 68 | 19 | 18 |
| 0 | 0 | 0 | 0 | Broker commission | 304 | 265 | 68 | 58 |
| 12 | 17 | 47 | 62 | Portfolio commission, savings products | 62 | 47 | 17 | 12 |
| 19 | 65 | 155 | 272 | Commission from SpareBank 1 Boligkreditt | 272 | 155 | 65 | 19 |
| 4 | 3 | 15 | 14 | Commission from SpareBank 1 Næringskreditt | 14 | 15 | 3 | 4 |
| 139 | 155 | 496 | 550 | Payment transmission services | 546 | 493 | 154 | 138 |
| 61 | 69 | 253 | 263 | Commission from insurance services | 263 | 253 | 69 | 61 |
| 20 | 17 | 87 | 80 | Other commission income | 76 | 78 | 16 | 17 |
| 272 | 345 | 1,121 | 1,315 | Total commission income | 1,611 | 1,374 | 411 | 326 |
| Commission expenses | ||||||||
| 22 | 28 | 102 | 120 | Payment transmission services | 121 | 102 | 28 | 22 |
| 3 | 4 | 12 | 15 | Other commission expenses | 103 | 96 | 25 | 18 |
| 25 | 32 | 114 | 135 | Total commission expenses | 224 | 199 | 53 | 40 |
| Other operating income | ||||||||
| 11 | 11 | 11 | 11 | Operating income real property | 13 | 12 | 13 | 12 |
| - | - | - | - | Property administration and sale of property | 241 | 207 | 57 | 52 |
| - | - | - | - | Accountant's fees | 733 | 661 | 160 | 152 |
| 7 | 4 | 59 | 55 | Other operating income | 19 | 30 | −7 | −3 |
| 17 | 15 | 69 | 65 | Total other operating income | 1,006 | 910 | 223 | 213 |
| 264 | 328 | 1,076 | 1,245 | Total net commission income and other operating income | 2,392 | 2,085 | 580 | 499 |
Note 12 - Operating expenses
| Parent Bank | Group | |||||||
|---|---|---|---|---|---|---|---|---|
| Fourth quarter January - December |
January - December | Fourth quarter | ||||||
| 2023 | 2024 | 2023 | 2024 | (NOKm) | 2024 | 2023 | 2024 | 2023 |
| 131 | 66 | 404 | 338 | IT costs | 410 | 461 | 83 | 146 |
| 3 | 2 | 12 | 11 | Postage and transport of valuables | 13 | 15 | 3 | 3 |
| 15 | 26 | 71 | 84 | Marketing | 104 | 93 | 30 | 21 |
| 32 | 35 | 111 | 138 | Ordinary depreciation | 183 | 154 | 48 | 47 |
| 13 | 13 | 50 | 51 | Operating expenses, real properties | 48 | 57 | 10 | 11 |
| 68 | 88 | 222 | 252 | Purchased services | 298 | 254 | 98 | 75 |
| 75 | 94 | 251 | 211 | Other operating expense | 262 | 294 | 113 | 87 |
| 337 | 324 | 1,121 | 1,084 | Total other operating expenses | 1,319 | 1,327 | 384 | 390 |
SPAREBANK 1 SMN
Note 13 - Net return on financial investments
| Parent Bank | Group | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Fourth quarter | January - December | January - December | Fourth quarter | ||||||
| 2023 | 2024 | 2023 | 2024 | (NOKm) | 2024 | 2023 | 2024 | 2023 | |
| Valued at fair value through profit/loss |
|||||||||
| 195 | −187 | −83 | −291 | Value change in interest rate instruments | −293 | −83 | −188 | 195 | |
| Value change in derivatives/hedging | |||||||||
| −4 | 2 | 2 | 8 | Net value change in hedged bonds and derivatives *) | 8 | 2 | 2 | −4 | |
| −9 | 15 | 5 | 27 | Net value change in hedged fixed rate loans and derivatives | 27 | 5 | 15 | −9 | |
| −223 | 128 | −118 | 142 | Other derivatives | 142 | −118 | 128 | −223 | |
| Income from equity instruments | |||||||||
| 0 | 0 | 0 | 0 | Income from owner interests | 1,254 | 297 | 227 | 90 | |
| 78 | −2 | 693 | 318 | Dividend from owner instruments | 0 | 0 | 0 | 0 | |
| 407 | 0 | 412 | 1 | Value change and gain/loss on owner instruments | 1 | 409 | 0 | 408 | |
| 4 | 18 | 18 | 43 | Dividend from equity instruments | 33 | 26 | 15 | −10 | |
| 20 | 30 | 41 | 60 | Value change and gain/loss on equity instruments | 87 | 55 | 42 | 63 | |
| 468 | 5 | 969 | 308 | Total net income from financial assets and liabilities at fair value through profit/(loss) |
1,259 | 593 | 242 | 511 | |
| Valued at amortised cost | |||||||||
| 0 | −2 | −2 | −2 | Value change in interest rate instruments held to maturity | −2 | −2 | −2 | 0 | |
| 0 | −2 | −2 | −2 | Total net income from financial assets and liabilities at amortised cost |
−2 | −2 | −2 | 0 | |
| 27 | 42 | 108 | 99 | Total net gain from currency trading | 100 | 108 | 42 | 27 | |
| 496 | 44 | 1,076 | 406 | Total net return on financial investments |
1,357 | 699 | 282 | 538 | |
| *) Fair value hedging | |||||||||
| 940 | −31 | 896 | 513 | Changes in fair value on hedging instrument | 513 | 896 | −31 | 940 | |
| −944 | 34 | −894 | −505 | Changes in fair value on hedging item | −505 | −894 | 34 | −944 | |
| −4 | 2 | 2 | 8 | Net Gain or Loss from hedge accounting | 8 | 2 | 2 | −4 |
Note 14 - Other assets
| Parent Bank | Group | ||||
|---|---|---|---|---|---|
| 31 Dec 2023 | 31 Dec 2024 | (NOKm) | 31 Dec 2024 | 31 Dec 2023 | |
| 0 | 0 | Deferred tax asset | 1 | 6 | |
| 167 | 188 | Fixed assets | 290 | 276 | |
| 251 | 297 | Right to use assets | 447 | 390 | |
| 136 | 187 | Earned income not yet received | 211 | 153 | |
| 66 | 221 | Accounts receivable, securities | 221 | 66 | |
| 221 | 296 | Pension assets | 296 | 221 | |
| 479 | 408 | Other assets | 722 | 737 | |
| 1,321 | 1,599 | Total other assets | 2,189 | 1,849 |
Note 15 - Other liabilities
| Parent Bank | Group | |||
|---|---|---|---|---|
| 31 Dec 2023 | 31 Dec 2024 | (NOKm) | 31 Dec 2024 | 31 Dec 2023 |
| 158 | 202 | Deferred tax | 290 | 216 |
| 813 | 958 | Payable tax | 1,042 | 900 |
| 22 | 30 | Capital tax | 30 | 22 |
| 137 | 178 | Accrued expenses and received, non-accrued income | 541 | 439 |
| 459 | 378 | Provision for accrued expenses and commitments | 378 | 459 |
| 52 | 101 | Losses on guarantees and unutilised credits | 101 | 52 |
| 9 | 8 | Pension liabilities | 8 | 9 |
| 260 | 307 | Lease liabilities | 460 | 403 |
| 9 | 1 | Drawing debt | 1 | 9 |
| 132 | 76 | Creditors | 149 | 191 |
| −15 | 251 | Debt from securities | 251 | −15 |
| 222 | 183 | Other liabilities | 276 | 317 |
| 2,258 | 2,673 | Total other liabilites | 3,527 | 3,002 |
Note 16 - Debt created by issue of securities and subordinated debt
Group
| Change in securities debt (NOKm) | 01 Jan 2024 | Issued | Fallen due/ Redeemed |
Other changes |
31 Dec 2024 |
|---|---|---|---|---|---|
| Bond debt, nominal value | 34,767 | 5,880 | 4,425 | 982 | 37,204 |
| Value adjustments | −1,522 | 645 | −878 | ||
| Accrued interest | 173 | 71 | 244 | ||
| Total | 33,417 | 5,880 | 4,425 | 1,697 | 36,570 |
| Change in Senior Non-preferred debt | 01 Jan 2024 | Issued | Fallen due/ Redeemed |
Other changes |
31 Dec 2024 |
|---|---|---|---|---|---|
| Senior non preferred, nominal value | 12,344 | 1,709 | 686 | 18 | 13,386 |
| Value adjustments | −65 | −102 | −167 | ||
| Accrued interest | 136 | −3 | 134 | ||
| Total | 12,415 | 1,709 | 686 | −86 | 13,352 |
| Change in subordinated debt (NOKm) | 01 Jan 2024 | Issued | Fallen due/ Redeemed |
Other changes |
31 Dec 2024 |
|---|---|---|---|---|---|
| Ordinary subordinated loan capital, nominal value |
2,226 | 900 | 400 | 2 | 2,728 |
| Accrued interest | 21 | −14 | 7 | ||
| Total | 2,247 | 900 | 400 | −12 | 2,735 |
Note 17 - Measurement of fair value of financial instruments
Financial instruments at fair value are classified at various levels.
Level 1: Valuation based on quoted prices in an active market
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: Valuation based on observable market data
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.
Level 3: Valuation based on other than observable data
If valuation data are not available for level 1 and 2, valuation methods are applied that are based on non-observable information.
The following table presents the Group's assets and liabilities measured at fair value at 31 December 2024:
| Assets (NOKm) | Level 1 | Level 2 | Level 3 | Total | |||
|---|---|---|---|---|---|---|---|
| Financial assets at fair value through profit/loss | |||||||
| - Derivatives | - | 7,231 | - | 7,231 | |||
| - Bonds and money market certificates |
2,680 | 33,971 | - | 36,650 | |||
| - Equity instruments | 280 | 107 | 663 | 1,050 | |||
| - Fixed interest loans | - | - | 10,468 | 10,468 | |||
| Financial assets through other comprehensive income | |||||||
| - Loans at fair value through other comprehensive income |
- | - | 92,738 | 92,738 | |||
| Total assets | 2,959 | 41,309 | 103,870 | 148,137 | |||
| Liabilities | |||||||
| Financial liabilities through profit/loss - Derivatives |
- | 6,152 | - | 6,152 |
|---|---|---|---|---|
| Total liabilities | - | 6,152 | - | 6,152 |
The following table presents the Group's assets and liabilities measured at fair value at 31 December 2023:
| Assets (NOKm) | Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|
| Financial assets at fair value through profit/loss | ||||
| - Derivatives | - | 6,659 | - | 6,659 |
| - Bonds and money market certificates |
2,879 | 31,284 | - | 34,163 |
| - Equity instruments | 363 | 152 | 622 | 1,137 |
| - Fixed interest loans | - | 102 | 5,480 | 5,582 |
| Financial assets through other comprehensive income | ||||
| - Loans at fair value through other comprehensive income |
- | - | 92,263 | 92,263 |
| Total assets | 3,242 | 38,197 | 98,365 | 139,804 |
| Liabilities | ||||
| Financial liabilities through profit/loss | ||||
| - Derivatives | - | 6,989 | - | 6,989 |
| Total liabilities | - | 6,989 | - | 6,989 |
Changes in the instruments classified in level 3 as at 31 December 2024:
| (NOKm) | Equity instruments through profit/ loss |
Fixed interest loans |
Loans at fair value through OCI |
Total |
|---|---|---|---|---|
| Opening balance 1 January | 622 | 5,480 | 92,263 | 98,365 |
| Investment in the period | 38 | 5,995 | 40,293 | 46,327 |
| Disposals in the period | −4 | −814 | −39,808 | −40,626 |
| Expected credit loss | - | - | −6 | −6 |
| Gain or loss on financial instruments | 7 | −194 | −4 | −192 |
| Closing balance 31 December 2024 | 662 | 10,468 | 92,738 | 103,870 |
Changes in the instruments classified in level 3 as at 31 December 2023:
| (NOKm) | Equity instruments through profit/ loss |
Fixed interest loans |
Loans at fair value through OCI |
Total |
|---|---|---|---|---|
| Opening balance 1 January | 570 | 4,630 | 81,901 | 87,101 |
| Investment in the period | 38 | 1,814 | 40,578 | 42,430 |
| Disposals in the period | −25 | −977 | −30,210 | −31,212 |
| Expected credit loss | - | - | 2 | 2 |
| Gain or loss on financial instruments | 38 | 14 | −7 | 45 |
| Closing balance 31 December 2023 | 622 | 5,480 | 92,263 | 98,366 |
Valuation method
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:
Fixed interest loans to customers (level 3)
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.
Loans at fair value through other comprehensive income (level 3)
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 3 million.
Short-term paper and bonds (level 2 and 3)
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.
Equity instruments (level 3)
Shares that are classified to level 3 include essentially investments in unquoted shares. Among other a total of NOK 589 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 (level 2)
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.
Sensitivity analyses, level 3 as at 31. desember 2024:
| (NOKm) | Book value | Effect from change in reasonable possible alternative as sumtions |
|---|---|---|
| Fixed interest loans | 10,468 | −25 |
| Equity instruments through profit/loss* | 662 | |
| Loans at fair value through other comprehensive income |
92,738 | −3 |
* As described above, the information to perform alternative calculations are not available
Note 18 - Liquidity risk
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 fourth quarter 2024 was 2.9 years. The overall LCR at the same point was 183 per cent and the average overall LCR in the third quarter was 173 per cent. The LCR in Norwegian kroner and euro at quarter-end was 158 and 1,086 per cent respectively.
Note 19 - Earnings per EC
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.
| January - December | ||
|---|---|---|
| (NOKm) | 2024 | 2023 |
| Adjusted Net Profit to allocate between ECC owners and Savings Bank Reserve1) |
4,339 | 3,489 |
| Allocated to ECC Owners2) | 2,899 | 2,329 |
| Issues Equity Captial Certificates adjusted for own certificates | 144,187,578 | 138,106,331 |
| Earnings per Equity Captial Certificate |
20.10 | 16.87 |
| January - December | |||
|---|---|---|---|
| 1) Adjusted Net Profit |
2024 | 2023 | |
| Net Profit for the group | 4,591 | 3,688 | |
| adjusted for non-controlling interests share of net profit | −106 | −74 | |
| Adjusted for Tier 1 capital holders share of net profit | −146 | −125 | |
| Adjusted Net Profit |
4,339 | 3,489 |
| 2) Equity capital certificate ratio (parent bank) |
January - December | ||
|---|---|---|---|
| (NOKm) | 31/12/2024 | 31/12/2023 | |
| ECC capital | 2,884 | 2,884 | |
| Dividend equalisation reserve | 8,721 | 8,482 | |
| Premium reserve | 2,422 | 2,422 | |
| Unrealised gains reserve | 164 | 71 | |
| Other equity capital | 2,478 | 0 | |
| A. The equity capital certificate owners' capital |
16,669 | 13,859 | |
| Ownerless capital | 6,984 | 6,865 | |
| Unrealised gains reserve | 81 | 35 | |
| Other equity capital | 1,231 | 0 | |
| B. The saving bank reserve |
8,297 | 6,900 | |
| To be disbursed from gift fund | 896 | 860 | |
| Dividend declared | 1,803 | 1,730 | |
| Equity ex. profit |
27,664 | 23,350 | |
| Equity capital certificate ratio A/(A+B) |
66.8 % | 66.8 % |
Results from quarterly accounts
| 4Q | 3Q | 2Q | 1Q | 4Q | 3Q | 2Q | 1Q | 4Q | |
|---|---|---|---|---|---|---|---|---|---|
| Group (NOKm) | 2024 | 2024 | 2024 | 2024 | 2023 | 2023 | 2023 | 2023 | 2022 |
| Interest income effective interest method | 3,483 | 3,469 | 3,326 | 3,283 | 3,297 | 3,029 | 2,654 | 2,382 | 2,141 |
| Interest expenses | 2,110 | 2,114 | 2,016 | 1,947 | 1,951 | 1,803 | 1,544 | 1,332 | 1,175 |
| Net interest | 1,372 | 1,355 | 1,310 | 1,336 | 1,345 | 1,226 | 1,110 | 1,050 | 966 |
| Commission income | 411 | 407 | 426 | 367 | 325 | 336 | 367 | 341 | 340 |
| Commission expenses | 53 | 68 | 51 | 51 | 40 | 58 | 51 | 50 | 45 |
| Other operating income | 223 | 214 | 305 | 264 | 213 | 206 | 245 | 249 | 178 |
| Commission income and other income | 580 | 553 | 680 | 579 | 498 | 484 | 561 | 541 | 473 |
| Dividends | 16 | 8 | 6 | 3 | −10 | 16 | 18 | 2 | 19 |
| Income from investment in related companies | 227 | 685 | 148 | 194 | 90 | −2 | 85 | 125 | 195 |
| Net return on financial investments | 40 | −22 | −1 | 54 | 458 | 48 | −16 | −114 | −57 |
| Net return on financial investments | 283 | 670 | 153 | 251 | 538 | 62 | 86 | 13 | 158 |
| Total income | 2,235 | 2,578 | 2,143 | 2,166 | 2,382 | 1,772 | 1,757 | 1,604 | 1,597 |
| Staff costs | 516 | 498 | 484 | 482 | 476 | 435 | 383 | 398 | 333 |
| Other operating expenses | 384 | 312 | 316 | 306 | 390 | 306 | 300 | 330 | 314 |
| Total operating expenses | 901 | 810 | 801 | 789 | 866 | 741 | 683 | 728 | 646 |
| Result before losses | 1,335 | 1,769 | 1,343 | 1,377 | 1,517 | 1,032 | 1,074 | 875 | 951 |
| Loss on loans, guarantees etc. | 30 | 75 | 47 | 24 | 20 | 35 | 29 | −71 | 19 |
| Result before tax | 1,305 | 1,693 | 1,296 | 1,353 | 1,496 | 996 | 1,045 | 946 | 932 |
| Tax charge | 253 | 252 | 276 | 273 | 262 | 278 | 159 | 206 | 210 |
| Result investment held for sale, after tax | −1 | 0 | −5 | 3 | 12 | 22 | 37 | 38 | 46 |
| Net profit | 1,052 | 1,441 | 1,015 | 1,084 | 1,247 | 740 | 923 | 778 | 768 |
Key figures from quarterly accounts
| 4Q | 3Q | 2Q | 1Q | 4Q | 3Q | 2Q | 1Q | 4Q | |
|---|---|---|---|---|---|---|---|---|---|
| Group (NOKm) | 2024 | 2024 | 2024 | 2024 | 2023 | 2023 | 2023 | 2023 | 2022 |
| Profitability | |||||||||
| Return on equity per quarter 1) | 14.4 % |
21.0 % |
15.4 % |
16.0 % |
18.3 % |
11.1 % |
15.1 % |
13.0 % |
13.1 % |
| Cost-income ratio 1) | 46.1 % |
42.4 % |
40.8 % |
41.0 % |
47.0 % |
43.3 % |
40.9 % |
45.8 % |
44.9 % |
| Balance sheet figures | |||||||||
| Gross loans to customers | 180,102 | 179,590 | 173,440 | 169,326 | 169,862 | 168,940 | 166,819 | 153,181 | 152,629 |
| Gross loans incl. SB1 Boligkreditt and SB1 Næringskreditt | 249,350 | 247,148 | 241,832 | 238,270 | 236,329 | 234,316 | 232,100 | 213,967 | 211,244 |
| Deposit from customers | 140,897 | 138,042 | 139,661 | 134,395 | 132,888 | 138,230 | 140,164 | 123,529 | 122,010 |
| Total assets | 247,699 | 245,951 | 243,363 | 235,721 | 232,717 | 243,472 | 248,806 | 228,207 | 223,312 |
| Quarterly average total assets | 246,825 | 244,657 | 239,542 | 234,219 | 238,095 | 246,139 | 238,507 | 225,759 | 221,115 |
| Growth in loans incl. SB1 Boligkreditt and SB1 Næringskredtt last 12 months 1) |
0.9 % |
2.2 % |
1.5 % |
0.8 % |
0.9 % |
1.0 % |
8.5 % |
1.3 % |
1.1 % |
| Growth in deposits last 12 months | 2.1 % |
−1.2 % | 3.9 % |
1.1 % |
−3.9 % | −1.4 % | 13.5 % |
1.2 % |
1.2 % |
| Losses in % of gross loans incl. SB1 Boligkreditt and SB1 Næringskreditt |
|||||||||
| Impairment losses ratio 1) | 0.0 % |
0.1 % |
0.1 % |
0.0 % |
0.0 % |
0.1 % |
0.1 % |
−0.1 % | 0.0 % |
| Stage 3 as a percentage of gross loans 1) | 0.9 % |
0.9 % |
0.8 % |
0.8 % |
0.9 % |
1.0 % |
1.0 % |
1.0 % |
1.0 % |
| Solidity | |||||||||
| Common equity Tier 1 capital ratio | 18.3 % |
18.2 % |
18.5 % |
18.5 % |
18.8 % |
19.7 % |
19.1 % |
18.2 % |
18.9 % |
| Tier 1 capital ratio | 20.2 % |
20.2 % |
20.4 % |
20.4 % |
20.8 % |
21.3 % |
21.0 % |
20.1 % |
20.9 % |
| Capital ratio | 22.8 % |
23.1 % |
23.1 % |
23.1 % |
23.0 % |
23.7 % |
23.5 % |
22.2 % |
23.1 % |
| Tier 1 capital | 24,769 | 24,097 | 24,216 | 24,073 | 23,793 | 24,283 | 24,192 | 21,985 | 21,835 |
| Total eligible capital | 28,004 | 27,557 | 27,474 | 27,250 | 26,399 | 26,950 | 27,106 | 24,298 | 24,147 |
| Liquidity Coverage Ratio (LCR) | 183% | 172% | 188% | 160% | 175% | 173% | 188% | 194% | 239% |
| Leverage Ratio | 7.0 % |
6.9 % |
7.1 % |
7.1 % |
7.2 % |
7.3 % |
7.2 % |
6.9 % |
7.1 % |
| 4Q | 3Q | 2Q | 1Q | 4Q | 3Q | 2Q | 1Q | 4Q | |
|---|---|---|---|---|---|---|---|---|---|
| Group (NOKm) | 2024 | 2024 | 2024 | 2024 | 2023 | 2023 | 2023 | 2023 | 2022 |
| Key figures ECC | |||||||||
| ECC share price at end of period (NOK) | 171.32 | 153.46 | 151.12 | 137.80 | 141.80 | 137.20 | 141.00 | 123.60 | 127.40 |
| Number of certificates issued, millions 1) |
144.19 | 144.21 | 144.19 | 144.13 | 144.20 | 143.82 | 143.80 | 129.43 | 129.29 |
| Booked equity capital per ECC (NOK) 1) | 128.09 | 124.05 | 117.31 | 113.24 | 120.48 | 116.39 | 112.81 | 105.63 | 109.86 |
| Profit per ECC, majority (NOK) 1) |
4.67 | 6.42 | 4.43 | 4.68 | 5.62 | 3.28 | 4.21 | 3.51 | 3.53 |
| Price-Earnings Ratio (annualised) 1) | 9.17 | 5.97 | 8.53 | 7.36 | 6.31 | 10.47 | 8.38 | 8.79 | 9.02 |
| Price-Book Value Ratio 1) | 1.34 | 1.24 | 1.29 | 1.22 | 1.18 | 1.18 | 1.25 | 1.17 | 1.16 |
1) Defined as alternative performance measures, see attachment to the quarterly report
Equity capital certificates 110 110 100 100
Stock price compared with OSEBX and OSEEX Apr. 2024 Feb. 2024 Des. 2023 Okt. 2023 Aug. 2023 Jun. 2023 Apr. 2023 Feb. 2023
1 January 2023 to 31 December 2024 SpareBank 1 SMN, utbyttejustert OSEEX, Total avkastning OSEBX, Total avkastning SpareBank 1 SMN
190 200
160 160 170 170
150 150 140 140 130 130 120 120
180 180
OSEBX = Oslo Stock Exchange Benchmark Index (rebased) , OSEEX = Oslo Stock Exchange ECC Index (rebased) 0 0 500 500
Jun. 2024
Jul. 2024 Aug. 2024
Sep. 2024
Nov. 2024
Okt. 2024 Des. 2024
Aug. 2024
Jun. 2024
Des. 2024
190 200
Okt. 2024
Trading statistics Jan. 2024 Des. 2023 Feb. 2024
1 January 2023 to 31 December 2024
Mar. 2024
Apr. 2024
Mai. 2024
| 20 largest ECC holders | No. Of ECCs | Holding |
|---|---|---|
| Sparebankstiftinga Søre Sunnmøre | 10,471,224 | 7.26% |
| Sparebankstiftelsen SMN | 6,470,110 | 4.49% |
| KLP | 4,742,748 | 3.29% |
| Pareto Aksje Norge VPF | 3,439,508 | 2.38% |
| State Street Bank and Trust Comp | 3,279,004 | 2.27% |
| VPF Eika Egenkapitalbevis | 3,214,737 | 2.23% |
| J. P. Morgan SE | 3,031,665 | 2.10% |
| VPF Alfred Berg Gamba | 3,015,315 | 2.09% |
| Skandinaviska Enskilda Banken AB | 2,988,362 | 2.07% |
| J. P. Morgan Chase Bank, N.A., London | 2,798,670 | 1.94% |
| J. P. Morgan SE | 2,320,446 | 1.61% |
| The Northern Trust Comp | 2,308,400 | 1.60% |
| State Street Bank and Trust Comp | 2,178,766 | 1.51% |
| VPF Holberg Norge | 2,110,000 | 1.46% |
| Forsvarets personellservice | 2,018,446 | 1.40% |
| VPF Odin Norge | 1,997,177 | 1.38% |
| Spesialfondet Borea Utbytte | 1,832,102 | 1.27% |
| RBC Investor Services Trust | 1,808,265 | 1.25% |
| MP Pensjon PK | 1,412,140 | 0.98% |
| VPF DNB AM Norske Askjer | 1,357,169 | 0.94% |
| The 20 largest ECC holders in total | 62,794,254 | 43.54% |
| Others | 81,421,336 | 56.46% |
| Total issued ECCs | 144,215,590 | 100.00% |
SPAREBANK 1 SMN
Dividend policy
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.
SpareBank 1 SMN Søndre gate 4 7011 Trondheim Company number: NO 937901003 Switchboard: 915 03900 E-mail: [email protected]
