Note 3 - Account by business line

The Bank was reorganised as from 1 January 2013. It was therefore natural to revise the segment structure.

As from 1 January 2013 the corporate market segment is split up and reports as two separate segments: Group Customers and Small and Mid-size Enterprises. Historical data have not been reworked since these are difficult to reconstruct at a sufficiently precise level. Thus, for comparison purposes, Group Customers and SMEs must be viewed collectively in relation to 2012. This will apply to each quarter of 2013. In organisation terms, SMEs are a part of Offices which also handles Retail Customers.

Since Allegro accounts for a  very limited part of the Group’s profits, it is no longer reported on as a separate segment that is added in the column for “others”. As from second quarter 2013 the joint ventures SpareBank 1 Gruppen and BN Bank are being treated as separate segments. The rationale is that each of these entities accounts for a substantial portion of the consolidated profit while at the same time being of significance in the capital requirement context. Consequently the companies receive much focus in the Group's internal corporate governance. As from the third quarter of 2013 companies held for sale are reported under the Corporate Customer segment. 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 31 Dec 2013
Profit and loss account (NOK million) RM SME Group Corporates Markets EM 1 SB1 Finans MN SB1 Regnskapshuset SMN SB1 Gruppen BN Bank Uncollated Total
Net interest    630   284   695 5 7   118   -0  -   -  -122 1,616
Interest from allocated capital 11 3 34   -1   -   - -  -   -    -47   -
Total interest income   641   286   729 4 7   118   -0  -   -  -170 1,616
Commission income and other income   704 79 91 29   368   -3 133  -   -  62 1,463
Net return on financial investments **) 1 1 49 40   - 0   -0 210 91   141   531
Total income *) 1,346 366 869 73 375 116 132 210 91 33 3,610
Total operating expenses 641 156 257 85 314 45 118 - - 103 1,722
Ordinary operating profit 705 210 612 -13 61 70 14 210 91 -71 1,888
 Loss on loans, guarantees etc.  6 5 71 -   - 20 - - - -1 101
Result before tax including held for sale 699 205 541 -13 61 51 14 210 91 -70 1,788
Post-tax return on equity 38.7 % 29.4 % 12.8 %               13.3 %
                         
Balance (NOK million)                      
Loans and advances to customers 63,518 9,055 31,920   -   - 3,291 -  -   -  4,255   112,038
Adv. of this to SB1 Boligkreditt and SB1 Næringskreditt   -30,204 -421   -1,110   -   -   - -  -   -    - -31,735
Individual allowance for impairment on loan   -28   -15 -122   -   -   -23 -  -   -  15 -173
Group allowance for impairment on loan   -73   -30 -175   -   -   -16 -  -   -    -0 -295
Other assets   501 35   306   -   291 12 105 1,113 1,188 31,975   35,525
Total assets  33,713 8,623 30,818   -   291 3,264 105 1,113 1,188 36,245   115,360
                         
Deposits to customers 24,185 8,734 21,544   -   -   - - - - 1,611   56,074
Other liabilities and equity 9,528 -111 9,274   -   291 3,264 105 1,113 1,188 34,634   59,286
Total liabilites 33,713 8,623 30,818   -   291 3,264 105 1,113 1,188 36,245   115,360

 

Group 31 Dec 2012
Profit and loss account (NOK million) RM CM Markets EM 1 SB1 Finans MN SB1 Regnskapshuset SMN SB1 Gruppen BN Bank Uncollated Total
Net interest    540   905   -21 5   108 3  -  -   -62 1,477
Interest from allocated capital 11 98 4   -   -  -   -  - -113   -
Total interest income   552 1,003   -18 5   108 3 - - -175 1,477
Commission income and other income   484   137 24   380   -3 105  -  - 13 1,139
Net return on financial investments **) 1 68 87   -   -1 - 94 72   145   467
Total income *) 1,037 1,207 93 385 104 107 94 72 -17 3,084
Total operating expenses 653 399 94 309 40 93 - - 66 1,654
Ordinary operating profit 384 809 -1 76 65 14 94 72 -82 1,430
 Loss on loans, guarantees etc.  1 45   -   - 9 - - - 4 58
Result before tax including held for sale 383 764 -1 76 56 14 94 72 -86 1,371
Post-tax return on equity 22.6 % 14.4 % -0.4 %             11.7 %
                       
Balance (NOK million)                    
Loans and advances to customers 58,892 40,671   -   - 3,146  -   -  - 2,200   104,909
Adv. of this to SpareBank 1 Boligkreditt   -28,029 -976   -   -   -  -   -  - -960 -29,966
Individual allowance for impairment on loan   -28 -101   -   -   -15  -   -  -   -0 -144
Group allowance for impairment on loan  -   -    -   -   -16  -   -  - -278 -295
Other assets   391 1,061   -   299 19 68 1,064 1,095 29,474   33,471
Total assets  31,225 40,655   -   299 3,133 68 1,064 1,095 30,436   107,975
                       
Deposits to customers 22,440 27,064   -   -   - - - - 2,747   52,252
Other liabilities and equity 8,784 13,591   -   299 3,133 68 1,064 1,095 27,688   55,723
Total liabilites 31,225 40,655   -   299 3,133 68 1,064 1,095 30,436   107,975
*) A portion of capital market income (Markets) is distributed on RM and CM

 

 

**) Specification of net return on financial investments (NOKm) 31 Dec 2013 31 Dec 2012
Capital gains/dividends, shares   114 24
Bonds and derivatives   -40 57
SpareBank 1 SMN Markets 73 126
Net return on financial investments   147   207
SpareBank 1 Gruppen   210 94
SpareBank 1 Boligkreditt  40 44
SpareBank 1 Næringskreditt 8 8
BN Bank 91 72
Other jointly controlled companies 36 42
Income from investment in related companies   384   260
Total   531   467
© SpareBank 1 SMN