Note 7 - Losses

 

Parent Bank (NOKm) 1 January 2020 Change in provision Net write-offs/
recoveries 		 30 June 2020
Loans as amortised cost- CM 916 371 -114 1,173
Loans as amortised cost- RM 34 11 -7 39
Loans at fair value over OCI- RM 109 30 - 139
Loans at fair value over OCI- CM 1 -1 - 1
Provision for expected credit losses on loans and guarantees  1,060 412 -121 1,352
Presented as        
Provision for loan losses  937 387 -121 1,203
Other debt- provisons 100 20 - 120
Other comprehensive income - fair value adjustment  23 6 - 29

 

Parent Bank (NOKm) 1 January
2019		 Change in provision Net write-offs/
recoveries 		 30 June 2019
Loans as amortised cost- CM 742 80 5 827
Loans as amortised cost- RM 45 15 4 63
Loans at fair value over OCI- RM 75 -12 - 63
Provision for expected credit losses on loans and guarantees  862 83 8 953
Presented as        
Provision for loan losses  697 110 8 815
Other debt- provisons 148 -27 - 121
Other comprehensive income - fair value adjustment  17 -0 - 16

 

Parent Bank (NOKm) 1 January
2019		 Change in
provision		 Net write-
offs/
recoveries		 31 Dec
2019
Loans as amortised cost- CM 742 201 -27 916
Loans as amortised cost- RM 45 -6 -5 34
Loans at fair value over OCI- RM 75 34 - 109
Loans at fair value over OCI- CM - 1 - 1
Provision for expected credit losses on loans and guarantees  862 230 -32 1,060
Presented as        
Provision for loan losses  697 272 -32 937
Other debt- provisons 148 -48 - 100
Other comprehensive income - fair value adjustment  17 6 - 23

 

Group (NOKm) 1 January 2020 Change in provision Net write-offs/
recoveries 		 30 June 2020
Loans as amortised cost- CM 948 381 -117 1,211
Loans as amortised cost- RM 63 8 -7 64
Loans at fair value over OCI- RM 109 30 - 139
Loans at fair value over OCI- CM 1 -0 - 1
Provision for expected credit losses on loans and guarantees  1,121 418 -124 1,415
Presented as        
Provision for loan losses  998 393 -124 1.267
Other debt- provisons 100 20 - 119
Other comprehensive income - fair value adjustment  23 6 - 29

 

 

Group (NOKm) 1 January 2019 Change in provision Net write-
offs/
recoveries 		 30 June 2019
Loans as amortised cost- CM 766 86 4 857
Loans as amortised cost- RM 68 17 4 88
Loans at fair value over OCI- RM 75 -12 - 63
         
Provision for expected credit losses on loans and guarantees  909 91 8 1,008
Presented as        
Provision for loan losses  744 118 8 870
Other debt- provisons 148 -27 - 121
Other comprehensive income - fair value adjustment  17 -0 - 16

 

Group (NOKm) 1 January 
2019		 Change in
provision		 Net write-
offs/
recoveries		 31 Dec
2019
Loans as amortised cost- CM 766 212 -31 948
Loans as amortised cost- RM 68 0 -5 63
Loans at fair value over OCI- RM 75 34 - 109
Loans at fair value over OCI- CM - 1 - 1
Provision for expected credit losses on loans and guarantees  909 248 -36 1,121
Presented as        
Provision for loan losses  744 290 -36 998
Other debt- provisons 148 -48 - 100
Other comprehensive income - fair value adjustment  17 6 - 23


 

Accrual for losses on loans First half   First half    
2020   2019   2019
Retail market Stage1 Stage2 Stage3 Total   Stage1 Stage2 Stage3 Total   Stage1 Stage2 Stage3 Total
Opening balance 25 73 45 143   28 63 29 120   27 62 31 120
      Transfer to (from) stage 1 14 -14 -0 -   13 -13 -0 -   10 -10 -  - 
      Transfer to (from) stage 2 -2 2 -0 -   -1 2 -0 -   -2 2 -  - 
      Transfer to (from) stage 3 -0 -3 3 -   -0 -2 2 -   - -3 3  - 
Net remeasurement of loss allowances -16 8 6 -3   -14 18 -0 4   -11 24 18 30
Originations or purchases 9 5 0 14   8 6 0 14   13 17 1 31
Derecognitions -5 -13 -1 -19   -5 -11 -1 -17   -11 -20 -1 -33
Changes due to changed input assumptions 7 39 -0 46   - - - -   - - - -
Actual loan losses - - -7 -7   - - 4 4    -   -  -5 -5
Closing balance  33 96 46 175   29 62 34 125   25 73 45 143
Corporate Market                            
Opening balance 66 210 540 816   64 148 383 594   64 148 382 594
      Transfer to (from) stage 1 9 -9 -0 -   11 -10 -0 -   19 -19 0  - 
      Transfer to (from) stage 2 -4 4 -0 -   -2 2 - -   -8 8  -   - 
      Transfer to (from) stage 3 -0 -2 2 -   -0 -0 1 -   - - 1  - 
Net remeasurement of loss allowances -11 36 317 342   -16 31 111 127   -17 98 185 266
Originations or purchases 22 10 1 33   16 7 0 23   27 20 1 48
Derecognitions -17 -43 -0 -60   -12 -29 -0 -41   -20 -43 0 -63
Changes due to changed input assumptions 7 34 - 41   - - - -    -   -  - -
Actual loan losses - - -114 -114   - - 5 5    -   -  -27 -27
Closing balance  71 240 745 1,057   61 148 499 707   66 210 541 817
Total accrual for loan losses 104 336 792 1,232   90 210 533 833   91 283 586 960

 

  First half   First half          
Group 2020   2019   2019
Retail market Stage1 Stage2 Stage3 Total   Stage1 Stage2 Stage3 Total   Stage1 Stage2 Stage3 Total
Opening balance 32 85 56 173   34 72 37 143   33 71 39 143
      Transfer to (from) stage 1 16 - 15 - 0 - 0   14 - 14 - 0 -   12 - 11 -  - 
      Transfer to (from) stage 2 - 2 3 - 1 -   - 2 3 - 1 -   - 2 4 - 1  - 
      Transfer to (from) stage 3 - 0 - 5 5 - 0   - 0 - 3 3 -   - - 3 4  - 
Net remeasurement of loss allowances - 17 10 10 3   - 15 19 4 8   - 14 24 22 32
Originations or purchases 11 5 0 16   10 7 1 18   17 23 3 44
Derecognitions - 5 - 14 - 8 - 28   - 6 - 13 - 3 - 22   - 13 - 23 - 5 - 41
Changes due to changed input assumptions 6 37 - 1 43   - - - -   - - - -
Actual loan losses - - - 7 - 7   - - 4 4    -   -  - 5 - 5
Closing balance  40 107 54 200   35 72 43 151   32 84 56 172
Corporate Market                            
Opening balance 71 217 560 849   68 152 397 618   70 152 397 619
     Transfer to (from) stage 1 10 - 10 - 0 -   11 - 11 - 0 -   20 - 20 -  - 
     Transfer to (from) stage 2 - 4 4 - 0 -   - 2 2 - 0 -   - 9 9  -   - 
     Transfer to (from) stage 3 - 0 - 2 2 -   - 0 - 0 1 -   - - 1 1  - 
Net remeasurement of loss allowances - 9 39 321 350   - 16 32 116 132   - 19 100 188 268
Originations or purchases 24 10 1 35   17 7 1 26   30 21 7 59
Derecognitions - 18 - 43 - 1 - 62   - 12 - 29 - 1 - 43   - 20 - 44 - 2 - 66
Changes due to changed input assumptions 7 34 - 0 41   - - - -   - - - -
Actual loan losses - - - 117 - 117   - - 5 5    -   -  - 31 - 31
Closing balance  81 249 765 1,095   66 153 518 737   71 218 560 849
Total accrual for loan losses 120 356 819 1,295   101 225 562 888   104 302 616 1,021

 

Accrual for losses on guarantees and unused credit lines First half   First half          
  2020   2019   2019
Parent Bank and Group (NOKm) Stage1 Stage2 Stage3 Total   Stage1 Stage2 Stage3 Total   Stage1 Stage2 Stage3 Total
Opening balance 14 29 57 100   11 47 90 148   11 47 90 148
Provision for credit losses                             
     Transfer to (from) stage 1 2 -2 -0 -   2 -2 -0 -   3 -3 -0 -
     Transfer to (from) stage 2 -0 0 - -   -0 0 - -   -1 1 - -
     Transfer to (from) stage 3 -0 -0 0 -   -0 -0 0 -   -0 -0 0 -
Net remeasurement of loss allowances -1 17 -0 16   0 8 -14 -7   -2 3 -33 -33
Originations or purchases 4 0 0 4   - - - -   7 1 0 8
Derecognitions -2 -3 -0 -5   -1 -19 -0 -20   -3 -20 -0 -24
Changes due to changed input assumptions 2 3 -0 5   - - - -   - - - -
Actual loan losses - - - -   - - - -   - - - -
Closing balance  18 45 57 120   10 35 76 121   14 29 57 100
Hereof RM       3         2         2
Hereof CM       117         119         98

 

 

Allowance for losses on loans distributed by sector              
  January - June   January - June          
Parent bank (NOKm)  2020    2019   2019   
  Stage1  Stage2 Stage3 Total   Stage1  Stage2 Stage3 Total   Stage1 Stage2 Stage3 Total
Agriculture, forestry, fisheries, hunting 6 25 9 40   9 14 7 30    4  22  7  34
Sea farming industries 1 1   1   1 0   1    1  0    1
Manufacturing 5 16 3 24   5 30 0 35    5  9  5  20
Construction, power and water supply 10 9 16 35   8 9 10 27    10  5  11  26
Varehandel, hotell- og restaurantvirksomhet 10 12 5 27   11 7 5 22   10 8 11  28
Maritime sector 11 125 564 701   10 28 421 459    9  87  471  568
Property management 17 38 37 92   16 32 21 69    16  45  23  83
Business services 9 19 133 161   5 30 43 77    7  50  22  79
Transport and other services  7 7 1 16   8 6 3 17    7  4  3  14
Public administration - - - -   - - - -    0  0  0  0
Wage earners - 83 23 106   - 54 24 77    0  52  33  86
Total provision for losses on loans 75 336 792 1,203   72 209 534 815   68 283 586 937
loan loss allowance on loans at FVOCI 29     29   17     17   23     24
Total loan loss allowance  104 336 792 1,232   90 210 533 833    91  283  586  961

 

  January - June   January - June          
Group (NOKm)  2020    2019   2 019   
  Stage1 Stage2 Stage3 Total   Stage1 Stage2 Stage3 Total   Stage1 Stage2 Stage3 Total
Agriculture, forestry, fisheries, hunting 7 27 10 43   10 15 8 33   5 23 8 36
Sea farming industries 1 1 - 2   1 0 - 1   1 0 - 1
Manufacturing 6 19 7 32   6 30 4 40   6 11 9 27
Construction, power and water supply 12 13 17 42   9 13 17 39   12 8 16 35
Varehandel, hotell- og restaurantvirksomhet 11 13 10 34   12 7 6 25   11 8 11 30
Maritime sector 11 125 564 701   10 28 421 459   9 87 473 570
Property management 17 38 38 93   16 32 21 70   16 45 23 84
Business services 10 20 134 164   5 30 44 80   8 51 24 82
Transport and other services 9 8 5 23   9 8 8 24   8 5 8 21
Public administration - - - -   - - - -   - - - -
Wage earners 6 92 31 129   5 61 34 100   6 63 44 112
Total provision for losses on loans 91 356 817 1,264   84 225 561 871   81 302 616 998
loan loss allowance on loans at FVOCI 29 - - 29   17 - - 17   23 - - 24
Total loan loss allowance 120 356 817 1,293   101 225 562 888   104 302 616 1,021
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