Note 7 - Losses

 

Parent Bank (NOKm) 1 Jan 20 Change in provision Net
write-offs/
recoveries 		 31 Dec 20
Loans as amortised cost- CM 916 667 -206 1,377
Loans as amortised cost- RM 34 12 -11 35
Loans at fair value over OCI- RM 109 38 - 147
Loans at fair value over OCI- CM 1 -1 - 0
Provision for expected credit losses on loans and guarantees  1,060 715 -217 1,559
Presented as        
Provision for loan losses  937 725 -217 1,446
Other debt- provisons 100 -19 - 81
Other comprehensive income - fair value adjustment  23 9 - 32

 

Parent Bank (NOKm) 1 Jan 19 Change in provision Net write-offs/
recoveries

31 Dec 19
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 Jan 20 Change in provision Net write-offs /
recoveries 		 31 Dec 20
Loans as amortised cost- CM 948 682 -209 1,421
Loans as amortised cost- RM 63 10 -11 62
Loans at fair value over OCI- RM 109 38 - 147
Loans at fair value over OCI- CM 1 -1 - 0
Provision for expected credit losses on loans and guarantees  1,121 729 -220 1,630
Presented as        
Provision for loan losses  998 739 -220 1,517
Other debt- provisons 100 -19 - 81
Other comprehensive income - fair value adjustment  23 9 - 32

 

Group (NOKm) 1 Jan 19 Change in provision Net write-offs/
recoveries

31 Dec 19
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 Jan-Dec Jan-Dec
2020 2019
Parent Bank Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total
Retail market                
Opening balance 25 73 45 143 27 62 31 120
Transfer to (from) stage 1 14 -13 -0 - 10 -10 -  - 
Transfer to (from) stage 2 -1 2 -0 - -2 2 -  - 
Transfer to (from) stage 3 -0 -3 3 - - -3 3  - 
Net remeasurement of loss allowances -17 12 9 5 -11 24 18 30
Originations or purchases 13 13 0 26 13 17 1 31
Derecognitions -8 -23 -2 -33 -11 -20 -1 -33
Changes due to changed input assumptions 10 38 2 50 - - - -
Actual loan losses 0 0 -11 -11  -   -  -5 -5
Closing balance  35 97 47 180 25 73 45 143
Corporate Market                
Opening balance 66 210 540 816 64 148 382 594
Transfer to (from) stage 1 14 -14 -0 - 19 -19 -  - 
Transfer to (from) stage 2 -4 4 -0 - -8 8  -   - 
Transfer to (from) stage 3 -0 -1 1 - - - 1  - 
Net remeasurement of loss allowances -2 72 486 556 -17 98 185 266
Originations or purchases 45 99 1 144 27 20 1 48
Derecognitions -30 -96 -1 -127 -20 -43 - -63
Changes due to changed input assumptions -0 113 2 -  -   -  - -
Actual loan losses - - -206 -206  -   -  -27 -27
Closing balance  88 387 823 1,299 66 210 541 817
Total accrual for loan losses 123 484 870 1,478 91 283 586 960

 

  Jan-Dec Jan-Dec
Accrual for losses on loans 2020 2019
Group Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total
Retail Market                
Opening balance 32 84 56 172 33 71 39 143
        Transfer to (from) stage 1 14 - 13 - 0 - 12 - 11 -  - 
Transfer to (from) stage 2 0 - 0 - 0 - - 2 4 - 1  - 
Transfer to (from) stage 3 - 1 - 2 3 - - - 3 4  - 
Net remeasurement of loss allowances - 17 11 11 5 - 14 24 22 32
Originations or purchases 12 15 5 31 17 23 3 44
Derecognitions - 6 - 20 1 - 25 - 13 - 23 - 5 - 41
Changes due to changed input assumptions 7 33 - 6 35 - - - -
Actual loan losses - - - 11 - 11  -   -  - 5 - 5
Closing balance  42 107 58 207 32 84 56 172
Corporate Market                
Opening balance 71 218 560 849 70 152 397 619
       Transfer to (from) stage 1 14 - 14 - 0 - 20 - 20 -  - 
Transfer to (from) stage 2 - 2 2 - 0 - - 9 9  -   - 
Transfer to (from) stage 3 - 1 0 1 - - - 1 1  - 
Net remeasurement of loss allowances - 2 72 484 555 - 19 100 188 268
Originations or purchases 46 103 3 151 30 21 7 59
Derecognitions - 26 - 93 10 - 109 - 20 - 44 - 2 - 66
Changes due to changed input assumptions - 2 111 - 4 106 - - - -
Actual loan losses - - - 209 - 209  -   -  - 31 - 31
Closing balance  98 399 845 1,342 71 218 560 849
Total accrual for loan losses 140 507 902 1,549 104 302 616 1,021

  

Accrual for losses on guarantees and unused credit lines  
  2020 2019
Parent Bank and Group (NOKm)  Stage1 Stage2 Stage3 Total Stage1 Stage2 Stage3 Total
Opening balance 14 29 57 100 11 47 90 148
Transfer to (from) stage 1 2 -2 -0 - 3 -3 -0 -
Transfer to (from) stage 2 -0 0 -0 - -1 1 - -
Transfer to (from) stage 3 -0 -0 0 - -0 -0 0 -
Net remeasurement of loss allowances 2 16 -54 -36 -2 3 -33 -33
Originations or purchases 11 8 0 19 7 1 0 8
Derecognitions -5 -13 -0 -19 -3 -20 -0 -24
Changes due to changed input assumptions 3 12 0 16 - - - -
Actual loan losses - - - - - - - -
Closing balance  27 50 4 81 14 29 57 100
Of which                
Retail market       2       2
Corporate Market       79       98

 

Allowance for losses on loans distributed by sector 
  31 Dec 2020 31 Dec 2019
Parent Bank (NOK million) Stage1 Stage2 Stage3 Total Stage1 Stage2 Stage3 Total
Agriculture and forestry 2 34 5 41 2 21 7 30
fisheries and hunting 6 2 - 8 2 1 0 3
Sea farming industries 2 0 3 5 1 0 - 1
Manufacturing 8 25 2 35 5 9 5 20
Construction, power and water supply 11 27 17 55 10 5 11 26
Retail trade, hotels and restaurants 10 30 17 58 10 8 11 28
Maritime sector 10 180 614 804 9 87 471 568
Property management 20 56 38 114 16 45 23 83
Business services 12 56 142 210 7 50 22 79
Transport and other services 8 10 2 19 7 4 3 14
Public administration 0 - - 0 - - - -
Other sectors 0 0 - 0 - - - -
Wage earners 2 65 31 97 - 52 33 86
Total provision for losses on loans 91 484 870 1,446 68 283 586 937
loan loss allowance on loans at FVOCI 32 - - 32 23 - - 24
Total loan loss allowance 123 484 870 1,478 91 283 586 961

 

  31 Dec 2020 31 Dec 2019
Group (NOK million) Stage1 Stage2 Stage3 Total Stage1 Stage2 Stage3 Total
Agriculture and forestry 3 36 5 44 2 22 8 32
fisheries and hunting 6 2 - 8 2 1 0 3
Sea farming industries 3 1 3 6 1 0 - 1
Manufacturing 10 27 7 44 6 11 9 27
Construction, power and water supply 13 31 20 64 11 8 16 35
Retail trade, hotels and restaurants 12 31 19 62 11 8 11 30
Maritime sector 10 180 614 804 9 87 471 568
Property management 20 56 39 115 16 45 23 84
Business services 13 57 143 213 8 51 24 82
Transport and other services 10 12 10 32 8 5 8 21
Public administration 0 - - 0 - - - -
Other sectors 0 0 2 2 2 0 0 2
Wage earners 7 73 41 122 6 63 44 112
Total provision for losses on loans 108 507 902 1,517 82 302 614 998
loan loss allowance on loans at FVOCI 32 - - 32 23 - - 24
Total loan loss allowance 140 507 902 1,549 105 302 614 1,022
© SpareBank 1 SMN