Note 7 - Losses

 

Parent Bank (NOKm) 1 Jan 21 Change in provision Net write-offs /recoveries  31 Dec 21
Loans as amortised cost- CM 1,377 38 -117 1,298
Loans as amortised cost- RM 35 8 -12 31
Loans at fair value over OCI- RM 147 -19 - 128
Loans at fair value over OCI- CM 0 1 - 1
Provision for expected credit losses on loans and guarantees  1,559 27 -129 1,458
Presented as        
Provision for loan losses  1,446 30 -129 1,348
Other debt- provisons 81 -2 - 79
Other comprehensive income - fair value adjustment  32 -1 - 31

 

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

 

Group (NOKm) 1 Jan 21 Change in provision Net write-offs /recoveries  31 Dec 21
Loans as amortised cost- CM 1,421 50 -128 1,343
Loans as amortised cost- RM 62 -1 -12 49
Loans at fair value over OCI- RM 147 -19 - 128
Loans at fair value over OCI- CM 0 1 - 1
Provision for expected credit losses on loans and guarantees  1,630 30 -140 1,520
Presented as        
Provision for loan losses  1,517 33 -140 1,410
Other debt- provisons 81 -2 - 79
Other comprehensive income - fair value adjustment  32 -1 - 31

 

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

 

 

Accrual for losses on loans    
  31 Dec 2021 31 Dec 2020
Parent Bank (NOKm) Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total
Retail market                
Opening balance 35 97 47 180 25 73 45 143
Transfer to (from) stage 1 20 -20 -0 - 14 -13 -0 -
Transfer to (from) stage 2 -2 2 -0 - -1 2 -0 -
Transfer to (from) stage 3 -1 -6 7 - -0 -3 3 -
Net remeasurement of loss allowances -22 24 -3 -1 -17 12 9 5
Originations or purchases 19 17 1 37 13 13 0 26
Derecognitions -12 -32 -4 -48 -8 -23 -2 -33
Changes due to changed input assumptions 1 -0 - 1 10 38 2 50
Actual loan losses 0 0 -12 -12 - - -11 -11
Closing balance  39 82 36 156 35 97 47 180
Corporate Market                
Opening balance 88 387 823 1,299 66 210 540 816
Transfer to (from) stage 1 15 -15 - - 14 -14 -0 -
Transfer to (from) stage 2 -5 5 - - -4 4 -0 -
Transfer to (from) stage 3 -2 -26 28 - -0 -1 1 -
Net remeasurement of loss allowances -26 26 38 39 -2 72 486 556
Originations or purchases 32 21 100 153 45 99 1 144
Derecognitions -20 -145 -1 -166 -30 -96 -1 -127
Changes due to changed input assumptions 1 14 - 15 -0 113 2 115
Actual loan losses - - -117 -117 - - -206 -206
Closing balance  84 268 871 1,223 88 387 823 1,299
Total accrual for loan losses 123 350 907 1,379 123 484 870 1,478

 

     
  31 Dec 2021 31 Dec 2020
Group (NOKm) Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total
Retail market                
Opening balance 42 107 58 207 32 84 56 172
Transfer to (from) stage 1 22 - 22 - 0 - 14 - 13 - 0 -
Transfer to (from) stage 2 - 2 3 - 0 - 0 - 0 - 0 -
Transfer to (from) stage 3 - 1 - 7 8 - - 1 - 2 3 -
Net remeasurement of loss allowances - 23 26 - 1 2 - 17 11 11 5
Originations or purchases 22 20 1 43 12 15 5 31
Derecognitions - 14 - 37 - 9 - 60 - 6 - 20 1 - 25
Changes due to changed input assumptions - 0 - 2 - 4 - 5 7 33 - 6 35
Actual loan losses - - - 12 - 12 - - - 11 - 11
Closing balance  45 89 40 174 42 107 58 207
Corporate Market                
Opening balance 98 399 845 1,342 71 218 560 849
Transfer to (from) stage 1 20 - 20 - 0 - 14 - 14 - 0 -
Transfer to (from) stage 2 - 7 7 - 0 - - 2 2 - 0 -
Transfer to (from) stage 3 - 2 - 27 29 - - 1 0 1 -
Net remeasurement of loss allowances - 29 31 42 44 - 2 72 484 555
Originations or purchases 35 23 112 169 46 103 3 151
Derecognitions - 21 - 146 - 2 - 169 - 26 - 93 10 - 109
Changes due to changed input assumptions - 2 12 - 2 9 - 2 111 - 4 106
Actual loan losses - - - 128 - 128 - - - 209 - 209
Closing balance  94 278 896 1,268 98 399 845 1,342
Total accrual for loan losses 138 367 936 1,442 140 507 902 1,549

 

  

 

Accrual for losses on guarantees and unused credit lines
                 
  31 Dec 2021 31 Dec 2020
Parent Bank and Group (NOKm) Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total
Opening balance 27 50 4 81 14 29 57 100
Transfer to (from) stage 1 6 -6 -0 - 2 -2 -0 -
Transfer to (from) stage 2 -7 7 - - -0 0 -0 -
Transfer to (from) stage 3 -0 -1 1 - -0 -0 0 -
Net remeasurement of loss allowances -9 4 0 -4 2 16 -54 -36
Originations or purchases 7 4 0 11 11 8 0 19
Derecognitions -6 -5 -0 -11 -5 -13 -0 -19
Changes due to changed input assumptions 0 2 - 2 3 12 0 16
Actual loan losses - - - - - - - -
Closing balance  19 55 5 79 27 50 4 81
Of which                
Retail market       2       2
Corporate Market       76       79

 

Provision for credit losses specified by industry
  31 Dec 2021 31 Dec 2020
Parent Bank (NOKm) Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total
Agriculture and forestry 2 31 6 39 2 34 5 41
Fisheries and hunting 6 7 0 13 6 2 - 8
Sea farming industries 1 0 0 2 2 0 3 5
Manufacturing 5 36 15 56 8 25 2 35
Construction, power and water supply 13 16 14 43 11 27 17 55
Retail trade, hotels and restaurants 8 28 11 46 10 30 17 58
Maritime sector 14 118 555 687 10 180 614 804
Property management 20 50 36 105 20 56 38 114
Business services 13 12 222 247 12 56 142 210
Transport and other services 7 6 17 30 8 10 2 19
Public administration 0 - - 0 0 - - 0
Other sectors 0 0 - 0 0 0 - 0
Wage earners 2 47 30 79 2 65 31 97
Total provision for losses on loans 91 350 907 1,348 91 484 870 1,446
Loan loss allowance on loans at FVOCI 31     31 32     32
Total loan loss allowance 123 350 907 1,379 123 484 870 1,478

 

 

 

     
  31 Dec 2021 31 Dec 2020
Group (NOKm) Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total
Agriculture and forestry 3 33 7 42 3 36 5 44
Fisheries and hunting 6 7 0 13 6 2 - 8
Sea farming industries 1 1 1 3 3 1 3 6
Manufacturing 7 38 21 66 10 27 7 44
Construction, power and water supply 16 19 18 53 13 31 20 64
Retail trade, hotels and restaurants 9 28 16 53 12 31 19 62
Maritime sector 14 118 555 687 10 180 614 804
Property management 20 50 36 106 20 56 39 115
Business services 14 14 227 255 13 57 143 213
Transport and other services 8 7 22 37 10 12 10 32
Public administration 0 - 0 0 0 - - 0
Other sectors 0 0 - 0 0 0 2 2
Wage earners 7 53 34 95 7 73 41 122
Total provision for losses on loans 107 367 936 1,410 108 507 902 1,517
Loan loss allowance on loans at FVOCI 31     31 32     32
Total loan loss allowance 138 367 936 1,442 140 507 902 1,549
© SpareBank 1 SMN