BN Boligkreditt AS INTERIM REPORT

Transcription

1 BN Boligkredi AS INTERIM REPORT 3RD QUARTER 2012

2 Conen Highlighs firs half-year o 30 June Financial Raios...4 Repor of he Direcors...5 Income Saemen...7 Balance Shee...8 Saemen of Changes in Equiy...9 Saemen of Cash Flows...10 Noes...11 Noe 1. Accouning policies Noe 2. Change in value of financial insrumens carried a fair value, gains and losses Noe 3. Changes in equiy Noe 4. Impairmen losses and wrie-downs on loans carried a amorised cos Noe 5. Borrowing (funding) Noe 6. Capial adequacy Noe 7. Coningen oucomes, evens afer he reporing period Noe 8. Transfer o SpareBank 1 Boligkredi Noe 9. Income saemens for he las five quarers Repor on Review of Inerim Financial Informaion...18 Saemen in accordance wih he Norwegian Securiies Trading Ac, secion

3 Highlighs of year o end of Q (Figures compared wih year o end of Q3 2011) Profi afer ax of NOK 6 million (NOK 19 million) Reurn on equiy afer ax of 2.7 per cen (8.9 per cen) Impairmen losses on loans recognised in income oalling NOK 4 million (NOK 1 million recognised in income) Tier 1 capial raio of per cen (28.7 per cen) The balance shee has been considerably reduced during he hree quarers o 30 Sepember 2012 as a resul of he company s larges borrowings mauring and a change in debor 3

4 Financial Raios NOK MILLION NOTE FULL-YEAR 2011 Summary of resuls Ne income from ineres and credi commissions Toal oher operaing income Toal income Toal oher operaing expense Operaing profi/(loss) before impairmen losses Impairmen losses on loans and advances Profi/(loss) before ax Compued ax charge Profi/(loss) for he period Profiabiliy Reurn on equiy % 8.9 % 35.7 % Ne ineres margin % 1.41 % 5.90 % Cos-income raio % 16.7 % 14.3 % Balance shee figures Gross lending Increase/decrease in lending (gross) las 12 monhs % % % Average oal asses (ATA) Toal asses Losses on loans and non-performing loans Loss raio lending % 0.00 % 0.00 % Non-performing loans as a percenage of gross lending 0,00 % 0,37 % 0,75 % Oher doubful commimens as a percenage of gross lending 0.00 % 0.00 % 0.00 % Solvency Capial adequacy raio % 36.4 % 39.4 % Tier 1 capial raio % 28.7 % 31.5 % Tier 1 capial Capial base Shares Earnings per share for he period (whole NOK) Noes 1) Profi afer ax as a percenage of average equiy 2) Toal ne ineres margin o dae his year in relaion o average oal asses (ATA) 3) Toal operaing expense as a percenage of oal operaing income 4) Average oal asses (ATA) are calculaed as an average of quarerly oal asses and as a 1 January and 31 December 5) Ne loss as a percenage of average gross lending o dae his year 4

5 Repor of he Direcors Summary of resuls for he hree quarers o 30 Sepember 2012 BN Boligkredi AS (BN Boligkredi) posed a profi afer ax of NOK 6 million for he hree quarers o 30 Sepember 2012, compared wih NOK 19 million for he same period of The Company s balance shee was considerably reduced during he firs hree quarers of 2012 as a resul of is larges borrowings mauring and a change in debor. BN Boligkredi s funding siuaion is good, and he Company remains well capialised. Operaions, objecives and sraegy BN Boligkredi is licensed by he Financial Supervisory Auhoriy of Norway o operae as a morgage credi insiuion. BN Boligkredi is BN Bank s credi insiuion for he issuance of covered bonds. The Company s sraegy is o issue covered bonds on he basis of BN Bank s well-secured residenial morgage loans and o provide he BN Bank Group wih access o his financing insrumen. The objecive is o faciliae effecive and more diversified funding of he Group s businesses. BN Boligkredi does no provide loans iself, bu procures residenial morgage loans from BN Bank. The Company procures loans ha qualify for issuing covered bonds. The maximum loan disbursed a he dae of acquisiion is 75 per cen loan-o-value raio. The loan porfolio consiss of variable-rae residenial morgage loans and credi lines secured on dwellings. BN Boligkredi was esablished in 2007 and acquired is firs loan porfolio in January BN Boligkredi s head office is in Trondheim. The Company s borrowers are geographically spread, bu concenraed in he larges Norwegian owns and ciies. Economic developmens BN Boligkredi presens is financial saemens in compliance wih Inernaional Financial Reporing Sandards (IFRS). Profi performance for he year o he end of Q BN Boligkredi posed a profi afer ax of NOK 6 million for he hree quarers o 30 Sepember 2012, compared wih a pos-ax profi of NOK 19 million for he same period of The decrease in profi is aribuable o a fall in he volume of lending and a decrease in changes in he value of financial insrumens. Ne ineres income for he hree quarers o 30 Sepember 2012 was NOK 17 million, compared wih NOK 34 million for he period o 30 Sepember Operaing expense oalled NOK 5 million for he hree quarers o 30 Sepember 2012, which is on a par wih he same period of The Company purchases all is operaion managemen services from BN Bank. The Company had no non-performing loans as a 30 Sepember 2012, while non-performing loans accouned for 0.75 per cen of gross lending as a 31 December Impairmen losses on loans were recognised in income in he sum of NOK 4 million for he hree quarers o 30 Sepember This is owing o a lower volume of lending and a reversal of collecive wrie-downs following he Company s adopion of he Sparebank 1 Consorium s calculaion model for reail lending. Collecive wrie-downs amouned o NOK 2 million as a 30 Sepember Given he low risk aached o he Company s morgage loan operaions, he curren loan loss provisions are considered adequae. 5

6 Profi performance for Q BN Boligkredi posed a pos-ax resul of NOK 0 million for he hird quarer of 2012, compared wih a pos-ax loss of NOK 1 million for he second quarer of The fall in profi is aribuable o a decrease in he volume of lending and a decrease in changes in he value of financial insrumens. Ne ineres income for he hird quarer of 2012 oalled NOK 2 million, down from NOK 6 million for he second quarer. Third-quarer operaing expense was NOK 1 million, down NOK 1 million from he previous quarer. Balance Shee Gross lending as a 30 Sepember 2012 oalled NOK 235 million, which is a decrease of NOK 1.9 billion on he pas 12 monhs. Deb securiies in issue as a 30 Sepember 2012 oalled NOK 248 million, which is NOK 1.9 billion down on he pas 12 monhs. Solvency BN Boligkredi s capial adequacy raio as a 30 Sepember 2012 was per cen, while he ier 1 capial raio was per cen. Oulook BN Boligkredi has previously announced ha i wishes o ransfer is borrowings o SpareBank 1 Boligkredi. In June 2012, BN Boligkredi received permission from he bondholders in one of he Company s remaining bond issues o change debor in favour of SpareBank 1 Boligkredi. In he case of he Company s wo remaining bond issues, aendance a he bondholders meeing was insufficien o secure suppor for a similar change of debor. The Company will seek o hold new bondholders meeings for hese wo bond issues during he fourh quarer of Trondheim, 22 Ocober 2012 The Board of Direcors Svend Lund (Chair) Kjell Fordal Arve Ausesad Kjersi Hovdal Hege Krisine Kvisand (Depuy Chair) Trond Søraas (Managing Direcor) 6

7 Income Saemen Balance Shee Change in Equiy Cash Flow Saemen Noes Income Saemen NOK MILLION NOTE Q Q FULL-YEAR 2011 Ineres and similar income Ineres expense and similar charges Ne income from ineres and credi commissions Change in value financial insrumens a fair value, gains & losses Toal oher operaing income Salaries and general adminisraive expenses Toal oher operaing expense Operaing profi/(loss) before impairmen losses Impairmen losses on loans and advances Profi/(loss) before ax Compued ax charge Profi/(loss) for he period

8 Income Saemen Balance Shee Change in Equiy Cash Flow Saemen Noes Balance Shee NOK MILLION NOTE FULL-YEAR 2011 Deferred ax asses Loans and advances 4, Financial derivaives Cash and balances due from credi insiuions Toal asses Share capial Share premium Oher reserves Toal equiy Deferred ax Subordinaed loan capial Liabiliies o credi insiuions Deb securiies in issue Cusomer deposis & accouns payable o cusomers Tax payable Toal liabiliies Toal equiy and liabiliies Trondheim, 22 Ocober 2012 The Board of Direcors 8

9 Income Saemen Balance Shee Change in Equiy Cash Flow Saemen Noes Saemen of Changes in Equiy SHARE SHARE PREMIUM OTHER TOTAL NOK MILLION CAPITAL RESERVE RESERVES EQUITY Balance Shee as a 1 January Group conribuion paid o Paren Bank Resul for he period Balance Shee as a 30 Sepember Resul for he period Balance Shee as a 31 December Group conribuion paid o Paren Bank Resul for he period Balance Shee as a 30 Sepember Trondheim, 22 Ocober 2012 The Board of Direcors 9

10 Income Saemen Balance Shee Change in Equiy Cash Flow Saemen Noes Saemen of Cash Flows NOK MILLION FULL-YEAR 2011 Cash flows from operaing aciviies Ineres/commission received and fees received from cusomers Ineres received on oher invesmens Ineres paid on oher loans Receips/disbursemens (-) on loans and advances o cusomers Receips/paymens (-) on liabiliies o credi insiuions Receips/paymens (-) on securiies in issue Oher receips/paymens Paymens o suppliers for goods and services Tax paid Ne cash flow from operaing aciviies Cash flows from invesing aciviies Ne cash flow from invesing aciviies Cash flow from financing aciviies Dividend/group conribuion paid Ne cash flow from financing aciviies Ne cash flow for he period Cash and balances due from cenral banks as a 1 January Cash and balances due from cenral banks a he end of he period

11 Income Saemen Balance Shee Change in Equiy Cash Flow Saemen Noes Noes Noe 1. Accouning policies Noe 2. Change in value of financial insrumens carried a fair value, gains and losses Noe 3. Changes in equiy Noe 4. Impairmen losses and wrie-downs on loans carried a amorised cos Noe 5. Borrowing (funding) Noe 6. Capial adequacy Noe 7. Coningen oucomes, evens afer he reporing period Noe 8. Transfer o SpareBank 1 Boligkredi Noe 9. Income saemens for he las five quarers

12 Income Saemen Balance Shee Change in Equiy Cash Flow Saemen Noes NOTE 1. ACCOUNTING POLICIES The firs-half inerim financial saemens for he period 1 January o 30 June 2012 have been prepared in compliance wih IFRS, including IAS 34 Inerim Financial Reporing. A descripion of he accouning policies on which he inerim financial saemens are based is provided in he Annual Repor for NOTE 2. CHANGE IN VALUE OF FINANCIAL INSTRUMENTS CARRIED AT FAIR VALUE, GAINS AND LOSSES NOK MILLION Q Q FULL-YEAR 2011 Change in value in. rae deriv. oblig. carried a fair value hro profi/loss Change in value borrowings seleced for fair value carrying hro profi/loss Toal change in value of financial insrumens carried a fair value Realised exch. gains/losses (-) bonds & cerificaes a amorised cos Toal change in value of financial insrumens, gains and losses NOTE 3. CHANGES IN EQUITY The Annual General Meeing has resolved o render group conribuion o he Paren Bank of NOK 37 million before ax. 12

13 Income Saemen Balance Shee Change in Equiy Cash Flow Saemen Noes NOTE 4. IMPAIRMENT LOSSES AND WRITE-DOWNS ON LOANS CARRIED AT AMORTISED COST The various elemens included in impairmen losses and wrie-downs on loans are se ou in Noe 1 o he Annual Repor for Loans pas due more han 3 monhs are defined as loans no serviced under he loan agreemen for 3 monhs or more. As a firs morgage lender, he Company can however gain access o revenue. NOK MILLION Q Q FULL-YEAR 2011 Wrie-offs in excess of prior-year wrie-downs Wrie-offs on loans wihou prior wrie-downs Wrie-downs for he period: Change in collecive wrie-downs Toal change in collecive wrie-downs Increase in loans wih prior-year wrie-downs Provisions agains loans wihou prior wrie-downs Decrease in loans wih prior-year wrie-downs Toal change in individual wrie-downs Gross impairmen losses Recoveries on previous wrie-offs Impairmen losses on loans and advances Revenue recogniion of ineres on wrien-down loans NOK MILLION Q Q FULL-YEAR 2011 Individual wrie-downs o cover impairmen losses a sar of he period Wrie-offs covered by prior-year individual wrie-downs Wrie-downs for he period: Increase in loans wih prior-year individual wrie-downs Wrie-downs on loans wihou prior individual wrie-downs Decrease in loans wih prior-year individual wrie-downs Individual wrie-downs o cover impairmen losses a end of he period Collecive wrie-downs o cover impairmen losses a sar of he period Collecive wrie-downs for he period o cover impairmen losses Collecive wrie-downs o cover impairmen losses a end of he period

14 Income Saemen Balance Shee Change in Equiy Cash Flow Saemen Noes Loans pas due more han 3 monhs NOK MILLION FULL-YEAR 2011 Gross principal Individual wrie-downs Ne principal Oher loans wih individual wrie-downs NOK MILLION FULL-YEAR 2011 Gross principal Individual wrie-downs Ne principal Loans pas due more han 3 monhs by secor and as a percenage of loans GROSS GROSS GROSS OUTSTANDING OUTSTANDING OUTSTANDING NOK MILLION % % 2011 % Reail marke

15 Income Saemen Balance Shee Change in Equiy Cash Flow Saemen Noes NOTE 5. BORROWING (FUNDING) Deb securiies in issue The Company had issued no bonds or cerificaes as a 30 Sepember Fixed-rae borrowings are carried in he balance shee a fair value, while floaing-rae borrowings are carried a amorised cos. NOK MILLION CERTIFICATES BONDS TOTAL Ne deb (face value) as a 1 January New issues Increase in exising issues Purchase and mauriy of exising issues Ne deb (face value) as a 31 March New issues Increase in exising issues Purchase and mauriy of exising issues Ne deb (face value) as a 30 June New issues Increase in exising issues Purchase and mauriy of exising issues Ne deb (face value) as a 30 Sepember Recognised values NOK MILLION FULL-YEAR 2011 Bonds carried a amorised cos Bonds seleced for fair value carrying Toal recognised value of bonds Toal recognised value of deb securiies in issue

16 Income Saemen Balance Shee Change in Equiy Cash Flow Saemen Noes NOTE 6. CAPITAL ADEQUACY Process for assessing he capial adequacy requiremen The capial adequacy requiremens for BN Boligkredi are par of he overall assessmens made by BN Bank s Board of Direcors for he enire Group. NOK MILLION FULL-YEAR 2011 Share capial Oher reserves Less: Deferred ax asses Tier 1 capial Fixed-erm subordinaed loan capial Less: Fixed-erm subordinaed loan capial ha canno be included Ne ier 2 capial Toal capial base Risk-weighed asses Tier 1 capial raio (%) Capial adequacy raio (%) Specificaion of risk-weighed asses NOK MILLION FULL-YEAR 2011 RECOGNISED WEIGHTED RECOGNISED WEIGHTED RECOGNISED WEIGHTED RISK-WEIGHTING AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT 0 % % % % % % % Invesmens included in he rading porfolio Negoiable deb insrumens inc. in rading porfolio Toal risk-weighed asses Capial adequacy raio (%)

17 Income Saemen Balance Shee Change in Equiy Cash Flow Saemen Noes NOTE 7. CONTINGENT OUTCOMES, EVENTS AFTER THE REPORTING PERIOD There are no asses or liabiliies o which coningen oucomes are aached and where hose oucomes could have a significan impac on he Company s financial posiion and resuls. There were no significan evens afer he reporing period. NOTE 8. TRANSFER TO SPAREBANK 1 BOLIGKREDITT SpareBank 1 Boligkredi is owned by he savings banks ha form he SpareBank 1 consorium and is co-locaed wih SpareBank 1 Næringskredi AS in Savanger. The purpose of he company is o secure for he banks wihin he consorium a source of sable, long-erm financing of residenial morgage loans a compeiive raes. The company s bonds have a raing of Aaa and AAA from Moody s and Fich respecively. SpareBank 1 Boligkredi procures loans wih morgages on residenial properies and issues covered bonds wihin he regulaions governing such bonds esablished in As par of he consorium, BN Bank may ransfer loans o SpareBank 1 Boligkredi and, as par of he Bank s funding sraegy, loans have been ransferred o he company. A 30 Sepember 2012, he book value of ransferred loans was NOK 6.4 billion. BN Bank is responsible for managing he ransferred loans and receives a commission based on he ne reurn on he loans ransferred by he Bank and he coss o he company. NOTE 9. INCOME STATEMENTS FOR THE LAST FIVE QUARTERS NOK MILLION Q Q Q Q Q Ineres and similar income Ineres expense and similar charges Ne income from ineres and credi commissions Change in value of financial insrumens a fair value, gains and losses Toal oher operaing income Salaries and general adminisraive expenses Toal oher operaing expense Operaing profi/(loss) before impairmen losses Impairmen losses on loans and advances Profi/(loss) before ax Compued ax charge Profi/(loss) for he period

18 Repor on Review of Inerim Financial Informaion To he Board of Direcors of BN Boligkredi AS Repor on Review of Inerim Financial Informaion Inroducion We have reviewed he accompanying balance shee of BN Boligkredi AS as of 30 Sepember 2012 and he relaed saemens of income, changes in equiy and cash flows for he nine-monh period hen ended. Managemen is responsible for he preparaion and presenaion of his inerim financial informaion in accordance wih Inernaional Accouning Sandard 34 "Inerim Financial Reporing".. Our responsibiliy is o express a conclusion on his inerim financial informaion based on our review. Scope of Review We conduced our review in accordance wih Inernaional Sandard on Review Engagemens 2410, "Review of Inerim Financial Informaion Performed by he Independen Audior of he Eniy". A review of inerim financial informaion consiss of making inquiries, primarily of persons responsible for financial and accouning maers, and applying analyical and oher review procedures. A review is subsanially less in scope han an audi conduced in accordance wih sandards on audiing adoped by Den Norske Revisorforening, and consequenly does no enable us o obain assurance ha we would become aware of all significan maers ha migh be idenified in an audi. Accordingly, we do no express an audi opinion. Conclusion Based on our review, nohing has come o our aenion ha causes us o believe ha he accompanying inerim financial informaion is no prepared, in all maerial respecs, in accordance wih Inernaional Accouning Sandard 34 "Inerim Financial Reporing". Trondheim, 22 Ocober 2012 PricewaerhouseCoopers AS Rune Kenneh S. Lædre Sae Auhorised Public Accounan Noe: This ranslaion from Norwegian has been prepared for informaion purposes only. PricewaerhouseCoopers AS, Braørkaia 17 B, NO-7492 Trondheim T: 02316, Org.no.: MVA, Medlem av Den norske Revisorforening 18

19 Saemen in accordance wih he Norwegian Securiies Trading Ac, secion 5-6 We cerify ha, o he bes of our knowledge and belief, he Company s hird-quarer inerim financial saemens for he period 1 January o 30 Sepember 2012 have been prepared in compliance wih IAS 34 Inerim Financial Reporing and ha he disclosures in he financial saemens give a rue and fair view of he Company s asses, liabiliies, financial posiion and performance as a whole. To he bes of our knowledge and belief, he hird-quarer financial saemens give a rue and fair view of imporan evens during he accouning period and heir effec on he inerim accouns, and a descripion of he mos significan risks and uncerainy facors facing he Company in he nex accouning period. Trondheim, 22 Ocober 2012 The Board of Direcors Svend Lund (Chair) Kjell Fordal Arve Ausesad Kjersi Hovdal Hege Krisine Kvisand (Depuy Chair) Trond Søraas (Managing Direcor) 19

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