SPAREBANKEN VEST BOLIGKREDITT

Transcription

1 SPAREBANKEN VEST BOLIGKREDITT INTERIM REPORT Q1 2018

2 Income statement Notes 01/ / / / Interest income and similar income Interest expenses and similar expenses Net interest and credit commission income Commission expenses and expenses relating to banking services Net gain/(loss) on financial instruments Other operating income Net other operating income Net operating income Payroll and general administration expenses Other operating expenses Total operating expenses Profit before write-downs and tax Write-downs and losses on loans and guarantees Pre-tax profit/loss Tax expenses Profit for the period Profit/diluted profit per share 14,2 1,4 36,1 Statement of comprehensive income 01/ / / / Profit for the period Changes in fair value of financial instruments classified at fair value through OCI Taxes on items in other comprehensive income Total profit for the period

3 Balance Sheet Notes 31/ / /12-17 Assets Loans to and receivables from credit institutions Loans to customers 5,6, Commercial papers and bonds Deferred tax asset Financial derivatives Total assets Liabilities and equity Liabilities to credit institutions Securitised debt Financial derivatives Tax liabilities Subordinated loan capital Other liabilities Total liabilities Share capital Total paid-in capital Reserve for unrealised gains Other equity Hybrid capital Total equity Total liabilities and equity Bergen, / Board of directors for Sparebanken Vest Boligkreditt AS Frank Johannesen, chairman Åsmund Bjørndal Heen Inga Lise Moldestad Egil Mokleiv, CEO 3

4 Statement of cash flows 01/ / / / Cash flow from operations Interest, commission and customers fees received Interest, commission and customers fees paid Interests received on other investments Interests paid relating to bond debt Payments to other suppliers for goods and services Salaries and fees Payment of taxes Net cash flow from operations Cash flow from investment activities Net growth in lending Payments made/received on loans to customers Net cash flow from investment activities Cash flow from financing activities Payments made/received on deposits from financial institutions Payments received related to issuing bond debt Payments made relating to redemption of bond debt Payments received related to issuing of new shares Payments of dividends/ group contributions Net cash flow from financing activities Net cash flow for the period Net change in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period

5 Equity movements Share capital Other equity Reserve for unrealised gains Hybridcapital Equity at 31/ Profit/loss for the period Distributed dividend Interest paid on hybrid capital Tax on interest on hybrid capital, directly against equity Equity at 31/ Sum Equity at 31/ Profit Issuance of share capital 25 June Issuance of share capital 04 October Distributed dividend Interest paid on hybrid capital Tax on interest on hybrid capital, directly against equity 7 7 Equity at 31/ Profit/loss for the period Other comprehensive income Implementation of IFRS Distributed dividend 0 Interest paid on hybrid capital Tax on interest on hybrid capital, directly against equity Equity at 31/ Equity as of 31/3-18 makes up NOK millions distributed on shares with nominal value NOK All shares are owned by Sparebanken Vest. Notes Note 1 Accounting principles The accounts for the first quarter 2018 were prepared in accordance with IAS 34. The accounting principles are described in the annual report for IFRS 9 was implemented from 1 January Refer to specific notes in the annual accounts for 2017: The interim accounts have not been audited. All amounts are stated in NOK million unless stated otherwise. Note 27 Description of IFRS 9 Note 28 Description of the impairment model under IFRS 9 Note 29 Transition from IAS 39 to IFRS 9 5

6 Note 2 Net interest and credit commission income 01/ / / / Interest and similar income from loans to and receivables from credit institutions valued at amortised cost Interest and similar income from loans to and receivables from customers valued at amortised cost Interest and similar income from loans to and receivables from customers valued at fair value Interest and similar income from commercial papers, bonds and other interest-bearing securities Interest income and similar income Interest and similar expenses on debt to credit institutions Interest and similar expenses on issued securities Interest and similar expenses on subordinated loan capital Interest expenses and similar expenses Net interest and credit commission income Note 3 Net gains on financial instruments 01/ / / / Net gains (losses) on fixed interest rate mortgages Net gains (losses) related to interest swaps for fixed interest rate mortgages Net gains/(losses) on commercial papers and bonds Net gain/(loss) on financial instruments designated for hedge accounting Of which gain/loss related to basisswaps Other gains (losses) Net gains (losses) Note 4 Operating expenses 01/ / / / Fees Administration expenses Total Rating expenses Other operating expenses Total other operating expenses Total

7 Note 5 Classification of financial assets and liabilities The following table shows the classification of financial assets and liabilities under IFRS 9 on the balance sheet date. Financial assets Fair value through profit or loss Hedge accounting Amortised cost Total book value Loans to and receivables from credit institutions Loans to and receivables from customers Certificates and bonds Financial derivatives Total financial assets Financial commitments Deposits from and debt to credit institutions Securitised debt Financial derivatives Subordinated loan capital Total financial liabilities

8 Note 6 Write-down on loans, guarantees, unused credit facilities and loan approvals Changes in write-downs under IFRS 9 on loans, guarantees, unused credit facilities and loan approvals Calculated by model Total calculated by model losses Individually assessed Stage 1 Stage 2 Stage 3 Stage 3 Total Loss provision under IAS 39 at 31 Dec Implementation effect, IFRS 9 11 Loss provision in opening balance, IFRS 9, at 1 January Transferred to 12-month ECL (Stage 1) Transferred to lifetime ECL no objective evidence of loss (Stage 2) Transferred to lifetime ECL objective evidence of loss (Stage 3) Calculated by model Transferred to lifetime ECL objective evidence of loss (Stage 3) Individually assessed Net new measurement of losses Newly issued or acquired financial assets Financial assets derecognised Reversal of write-downs as a result of confirmed losses Currency effects and other changes Loss provision at 31 March Loan loss provision Provision for guarantees, unused credit facilities and loan approvals Total loss provision Gross lending recognised at amortised cost, allocated to different stages at 1 Jan Gross lending recognised at amortised cost, allocated to different stages at 31 March Loss cost for the period: Changes in individual write-downs for the period Currency gain and other changes 0 Confirmed loss in the period with previous individual write-down 0 Confirmed loss in the period with no previous individual write-down 0 Recoveries in previously confirmed write-downs 0 Net effect on profit/loss from individual write-downs 0 Changes in losses for the period, calculated by model (Stage 1 3) 0 Loss cost for the period 0 Gross lending recognised at amortised cost at 31 March Loss write-down -27 Net lending recognised at amortised cost in the balance sheet Loans valued at fair value Capitalised lending at 31 March In line with IFRS 9, Sparebanken Vest Boligkreditt AS groups its loans into three stages based on the probability of default (PD) at the time of recognition compared with the balance sheet date, and checking the watch list, forbearance and instalments paid more than 30 days after the due date. In other words, each individual loan (or commitment) is classified as Stage 1, 2 or 3. All commitments recognised at amortised cost are included in the model. Stage 1 is the starting point for financial assets covered by the general loss model, for which a provision will be made corresponding to 12-month expected losses. Stage 2 includes assets for which the credit risk has increased significantly since initial recognition, but where there is no objective evidence of a loss. Commitments at Stage 1 and 2 are assessed at portfolio level (calculated by model). Stage 3 of the model includes assets for which the credit risk has increased significantly since initial recognition, and where there has been objective evidence of a loss event on the balance sheet date. They are divided into loans that have been individually assessed and loans assessed at portfolio level (calculated by model). Transfer between the stages shows how much of expected credit losses in the opening balance have migrated from the other stages. The effect of the new measurement method and new calculation in the quarter is presented on the line Net new measurement of losses. Confirmation of the loss write-down (booked against the customer s commitment) takes place when all security has been realised and it is certain that the company will receive no further payments on the loan. The claim on the customer remains and will be followed up, unless it has been agreed with the customer that the loan is to be written off. Write-downs of guarantees, unused credit facilities and loan approvals include off-balance sheet items and are recognised as debt obligations in the accounts. Reference is made to the description of IFRS 9 in Notes 27 and 28 to the 2017 annual accounts for more information about the impairment model. 8

9 Note 7 Loans to customers Distribution of loans by type of receivables 31/ / Overdraft facilities Instalment loans Gross loans to customers Individual write-downs on loans Write-downs calculated by model Net loans to customers Net loans distributed by main industries and retail market Retail customers Foreign (retail clients) Total - commercial sector Total gross loans Age distribution of loans in default 31/ / Up to 30 days days days More than 90 days Total Note 8 Loans to and receivables from credit institutions Loans to and receivables from credit institutions are classified at amortised cost and the counterpart is Sparebanken Vest (see note 13). There is no agreed maturity date or period of notice. Liquidity Coverage Ratio (LCR) amounted to 503% per 31/ Note 9 Liabilities to credit institutions Liabilities to credit institutions is classified at amortised cost, and is mainly liability to Sparebanken Vest (see note 13). Liability to Sparebanken Vest has a maturity of 13 months. 9

10 Note 10 Securitised debt Covered bonds ISIN CODE Currency Nominal value Interest Issue Maturity year 31/ / /12-17 NO NOK 0 Floating 3M Nibor + 0,55 % NO NOK 0 Fixed 4,05 % NO NOK Fixed 5,20 % NO NOK Fixed 4,96 % NO NOK Fixed 4,50 % XS EUR 0 Fixed 2,125 % NO NOK Floating 3M Nibor+0,67 % XS EUR 0 Floating 3M Euribor+0,51% XS EUR Fixed 1,50 % XS EUR Floating 3M Euribor+0,15% NO NOK Floating 3M Nibor+0,42% XS EUR Fixed 1,25 % XS EUR Fixed 2,25 % XS EUR Floating 3M Euribor+0,28% NO NOK Floating 3M Nibor+2,95% XS EUR Fixed 0,25% XS EUR Fixed 0,38% XS EUR Fixed 0,125% NO NOK Floating 3M Nibor+ 0,60% NO NOK Floating 3M Nibor + 0,53% XS GBP Floating 3M GBP Libor + 0,38% XS EUR Fixed 0,375 % NO NOK Floating 3M Nibor + 0,40% NO NOK Floating 3M Nibor + 0, XS EUR Fixed 0,750 % Adjustments Total securities issued Financial derivatives to hedge securities debt (liabilities) Financial derivatives to hedge securities debt (assets) Sum liabilities with preference on cover pool Covered pool 30/ / /12-17 Mortgages 1) Commercial Papers and bonds Supplementary assets Total collateralised assets Overcollateralisation in the cover pool. 126 % 115 % 129 % 1) NOK 248 million is not eligible for the cover pool. This amounts to 0,32 % of the cover pool. 10

11 Note 11 Capital adequacy In 2009 Sparebanken Vest Boligkreditt AS was given permission by the Financial Supervisory Authority of Norway to use internal methods to calculate credit risk (Internal Rating Based-method). The transitional scheme between the Basel I and the CRD IV regulations still apply. It stipulates that the risk-weighted volume cannot be reduced to less than 80 percent of the corresponding figure calculated pursuant to the Basel I regulations. As such, the Basel I regulations still represent a floor for minimum requirements for own funds. Risk-weighted volume 31/ / /12-17 Credit risk IRB Operational risk Commitments under the standard method Risk of impaired creditworthiness of the counterparty (CVA) Total risk-weighted volume before transitional rules Correction to the transitional arrangement Total risk-weighted volume Own funds Shareowner equity Provision for unrealised gains/losses Other equity Total booked equity excluding hybrid capital Deduction for expected losses IRB Fair value adjustments Year-to-date profit not included in core capital Deductions for year-to-date profit not included in core capital Common Equity Tier 1 capital Additional Tier 1 capital Total Tier 1 capital Tier 2 instruments Own funds Common Equity Tier 1 capital 12,9 % 12,1 % 12,9 % Additional Tier 1 capital 1,8 % 2,2 % 1,8 % Supplementary capital 1,6 % 1,9 % 1,6 % Capital adequacy, transitional scheme 16,3 % 16,3 % 16,3 % Common Equity Tier 1 capital 21,8 % 20,5 % 23,5 % Additional Tier 1 capital 3,1 % 3,8 % 3,3 % Supplementary capital 2,7 % 3,3 % 2,9 % Capital adequacy, Basel II fully implemented 27,6 % 27,6 % 29,7 % Minimum requirements Minimum requirement own funds, 8% Surplus own funds of which surplus Core Tier 1 capital to meet buffer requirement Buffer requirement Conservation buffer, 2.5% Systemic risk buffer, 3% Countercyclical buffer, 2,0% Surplus Core Tier 1 capital

12 Note 12 Leverage ratio 31/ / /12-17 Balance sheet items Off-balance sheet items Regulatory adjustments Other adjustments to the calculation (leverage ratio) Calculation basis for leverage ratio Core Capital Leverage ratio 5,3 % 5,0 % 5,3 % Note 13 Transactions with related parties Sparebanken Vest Boligkreditt AS is a wholly owned subsidiary of Sparebanken Vest. The parent company is defined as a related party in relation to the accounting standard regarding related party disclosures. All intra-group transactions are conducted in conformity with normal commercial terms and principles. Total intra-group transactions (NOK 1000) 31/ / /12-17 Profit and Loss Interest and credit commission received from related parties Interest paid on related parties' deposits Interest on subordinated debt Interest on covered bonds Wages/fees Management fee Balance Sheet Loans to related parties Debt to related parties Subordinated debt Hybrid instruments classified as equity

13 Jonsvollsgaten 2 N-5011 Bergen Tel FOTO: PAAL AUDESTAD