interim report Q (unaudited)

Transcription

1 interim report Q (unaudited)

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3 Key figures FIGURES IN NOK 000s 30/06/17 30/06/16 31/12/16 INCOME STATEMENT Profit/loss after taxation Net interest margin 1,17 % 1,15 % 1,06 % Profit/loss after tax as a % of average total assets 0,80 % 0,81 % 0,74 % KEY BALANCE SHEET FIGURES Gross loans to customers Impairment provisions Equity Total assets Average total assets OTHER KEY FIGURES Cost-to-income ratio 5,21 % 6,17 % 6,40 % Impairment charge as a % of gross loans 0,03 % 0,01 % 0,01 % Impairment provisions as a % of gross loans 0,09 % 0,08 % 0,08 % Return on equity after tax 11,02 % 9,10 % 8,49 % Capital adequacy ratio 22,99 % 20,90 % 20,00 % Liquidity Coverage Ratio (LCR) 357 % 416 % 152 % YEAR-ON-YEAR BALANCE SHEET GROWTH Growth in total assets 28,34 % 15,02 % 4,05 % Growth in customer lending 29,77 % 16,13 % 7,11 % Information about the loan portfolio Surplus value of cover pool (NOK millions) Surplus value of cover pool (%) 17,4 % 28,7 % 20,7 % Loan-to-value ratio, indexed 53,2 % 50,4 % 53,3 % Loan-to-value ratio, not indexed 57,6 % 57,1 % 58,2 % Face value of covered bonds issued (NOK millions) Substitute assets other than loans (NOK millions) 294,8 413,9 263,5 Weighted average time since issue of loans (years) 3,3 3,4 3,4 Weighted average remaining term of loans (years) 17,0 16,4 16,3 Proportion of variable-rate loans 100 % 100 % 100 % Proportion of flexible mortgages 21,6 % 25,4 % 24,5 % Average loan value (NOK millions) 1,30 1,19 1,25 Number of loans Proportion of loans secured by an overseas property 0 % 0 % 0 % Bustadkreditt Sogn og Fjordane AS INTERIM REPORT Q (unaudited) 3

4 Interim report 30/06/2017 HIGHLIGHTS Bustadkreditt Sogn og Fjordane AS is a wholly-owned subsidiary of Sparebanken Sogn og Fjordane, with its head office in Førde. Bustadkreditt Sogn og Fjordane AS has given the Sparebanken Sogn og Fjordane group access to long-term funding on competitive terms. It finances itself by issuing covered bonds. Services such as customer care, loan servicing, management and administrative services are supplied by Sparebanken Sogn og Fjordane. At the end of June 2017, the Company had 11,585 mortgages with a total face value of NOK 15.1 billion. The loans in the cover pool were issued by Sparebanken Sogn og Fjordane, and subsequently bought by Bustadkreditt Sogn og Fjordane. All of the Company s loans were subject to a variable interest rate. 21.6% of the loan book was made up of flexible mortgages. The weighted average loan-to-value ratio was 53.2 percent, the weighted average loan term was 17.0 years and the weighted average time since the loans were granted was 3.2 years. The average loan per customer was NOK 1.30 million. The Company s total loan portfolio grew by NOK 3.5 billion over the past year. The volume of covered bonds issued by the Company was NOK 13.0 billion. RATING OF COVERED BONDS In the third quarter of 2011, Bustadkreditt Sogn og Fjordane AS s covered bond programme was given a long-term rating of Aaa by the ratings agency Moody s, and the TPI Leeway was set at 2. At the end of the second quarter of 2017 the long-term rating was still Aaa, while the TPI Leeway had risen from 2 to 4. This implies that the rating of the covered bond programme is less at risk of a downgrade now than it was in CALCULATION OF LOAN-TO-VALUE RATIO The loan-to-value ratio is calculated as the loan amount divided by the value of the collateral. The value of the collateral is based on Eiendomsverdi AS s estimation model. This model is used by all Norwegian credit institutions. KEY FIGURES (Figures in brackets are for the year-earlier period) Profit after taxation of NOK 60.3 million (50.2 million) Net interest income of NOK 87.5 million (70.8 million) Operating expenses of NOK 4.6 million (4.5 million) Net change in the value of financial instruments of NOK -0.5 million (0.5 million) Impairment charge of NOK 4.0 million (0.8 million) Annualised return on equity of 11.0% (9.1%) after tax. Core capital adequacy ratio of 22.99% (20.90%) FINANCIAL RESULTS In the first six months of 2017, the Company made a pre-tax profit of NOK 79.4 million. Profit after tax was NOK 60.3 million, giving an annualised return on equity of 11.0%. The equivalent figures for the previous year were NOK 66.9 million in pre-tax profit, NOK 50.2 million in profit after tax and return on equity of 9.1%. Profit after tax was equivalent to 0.80% of average total assets, compared with 0.81% the previous year. NET INTEREST INCOME Net interest income totalled NOK 87.5 million. The net interest margin for the six months to 30 June 2017 was 1.17%. The equivalent figures for the yearearlier period were NOK 70.8 million and 1.15%. OPERATING EXPENSES Operating expenses were NOK 4.6 million, compared with NOK 4.5 million for the same period last year. The Company s biggest expense was the purchase of services from Sparebanken Sogn og Fjordane, followed by credit rating agency fees, the cost of issuing bonds and the purchase of services from Eiendomsverdi. The Company reduced its cost-to-income ratio from 6.2% in the first six months of 2016 to 5.2% in the same period this year. LOAN IMPAIRMENT CHARGE The Company follows Sparebanken Sogn og Fjordane s guidelines for assessing loan impairment. At 30 June 2017, five loans were more than 90 days in arrears, but no losses had been realised. Credit risk is low, and no individually assessed impairment provisions have been made. Collectively assessed provisions are estimated using a model that takes into account the quality, size and composition of the loan portfolio. The model used is the same one as is used by Sparebanken Sogn og Fjordane. In the first six months of 2017, the Company had a NOK 4.0 million charge for collectively assessed impairment provisions. The main reason for this was an increase in the loan portfolio of over NOK 2.2 billion since the start of the year. In addition, a review of our credit scoring models led to some customers being migrated to a higher risk category, which in turn increases the collectively assessed provisions. BALANCE SHEET The Group had total assets of NOK 15.5 billion at 4 Bustadkreditt Sogn og Fjordane AS INTERIM REPORT Q (unaudited)

5 30 June This represented an increase of NOK 3,425 million over the past 12 months (+28.3%). CUSTOMER LOANS AND OTHER SUBSTITUTE ASSETS In addition to the NOK 15,070 million of mortgage loans, NOK 295 million of other substitute assets have been established. The total value of the cover pool is NOK 15,278 million, which is 17.5% higher than the volume of covered bonds issued. No new bonds were issued in the second quarter of % of Bustadkreditt Sogn og Fjordane s loan portfolio has a loan-to-value ratio of less than 60%. The Company considers its loan portfolio to be low-risk. The figure below shows the weighted loan-to-value ratio for the loans held by the Company. Weighted loan-to-value ratio 40% 35% 30% 25% 20% 15% 10% 5% 0% 23% Under 40% 14% 40-50% 20% 50-60% 37% 60-75% The geographic distribution of the residential mortgage portfolio was as follows: 6% over 75% Region Share Western Norway 80,2 % Eastern Norway 18,1 % Central Norway 0,8 % Southern Norway 0,4 % Northern Norway 0,5 % Total 100,0 % 5 biggest counties measured by loan volume County Share Sogn og Fjordane 51,3 % Hordaland 25,9 % Oslo 9,1 % Akershus 5,7 % Rogaland 1,8 % Rest of Norway 6,2 % Total 100,0 % 5 biggest municipalities measured by loan volume Municipality Share Bergen 21,9 % Førde 12,2 % Flora 10,7 % Oslo 9,1 % Sogndal 3,4 % Rest of Norway 42,7 % Total 100,0 % Other information about the loan portfolio Distribution by loan value Loan value Volume (NOK millions) 0 1 million million million over 3 million Total The combined value of the five biggest loans was NOK 60.6 million. SHAREHOLDERS EQUITY AND CAPITAL ADEQUACY At 30 June 2017, Bustadkreditt Sogn og Fjordane AS had NOK 1,412 million of equity. The capital adequacy ratio was 22.99%. The equivalent figures for the previous year were NOK 1,051 million of equity and a capital adequacy ratio of 20.90%. The increase in the capital adequacy ratio was due to a NOK 350 million injection of share capital by the parent company in the second quarter of In the first quarter of 2017, the Company paid NOK 93 million in dividends to the parent company. LIQUIDITY At the close of the second quarter, Bustadkreditt Sogn og Fjordane had NOK 295 million of substitute assets consisting of deposits held at Sparebanken Sogn og Fjordane. The Company also had bonds with a market value of NOK 150 million that were not included as substitute assets. Bustadkreditt Sogn og Fjordane AS has excellent credit facilities with Sparebanken Sogn og Fjordane. These will allow the Company to make interest and principal payments to the owners of covered bonds, enable it to make advances to customers with flexible mortgages, provide bridge financing when loans are being transferred to it from the parent bank, and fund the necessary surplus in the cover pool. RISK MANAGEMENT Under its licence as a credit provider, Bustadkreditt Sogn og Fjordane is subject to laws, regulations and rules that limit the level of risk to which it can be exposed. The Board of Directors and CEO are responsible for establishing risk management procedures, and for ensuring that they are adequate and in compliance with laws and regulations. Bustadkreditt Sogn og Fjordane is exposed to credit risk, operational risk, liquidity risk and interest rate risk. The Board considers it a priority for the Company to maintain a low risk exposure. Limits have been set on exposure to the various classes of Bustadkreditt Sogn og Fjordane AS INTERIM REPORT Q (unaudited) 5

6 risk, and a system has been established for measuring, managing and monitoring each of them. Credit risk Credit risk is the danger of losing money as a result of customers or counterparties being unable or unwilling to meet their obligations to Bustadkreditt Sogn og Fjordane. The Company has its own rules on which loans it can buy from its parent company. The rules are strict, which means that in principle the credit risk is low. The rules specify requirements relating to the type of loan, loan-to-value ratio, risk class and type of collateral. At the end of the second quarter of 2017, the Company s average loan-to-value ratio was 53.2%, measured using the approved valuation of the collateral by Eiendomsverdi AS. The Board of Directors considers the loan portfolio to be of high quality, and to be associated with a low credit risk. Market risk Market risk is the risk arising from the Company s open positions relating to loans and financial instruments whose values fluctuate over time in response to changes in market prices. Bustadkreditt Sogn og Fjordane AS does not have any investments in shares or foreign currencies, so all of its market risk is related to interest rate risk. The Company s risk management framework sets limits on the Company s exposure to market risk. The Board of Directors considers it important for Bustadkreditt Sogn og Fjordane AS to maintain a low exposure to market risk. Liquidity risk Liquidity risk is the risk that the Company will be unable to fulfil its obligations and/or finance an increase in assets without significant additional cost, either because it has to realise losses on the sale of assets or because it has to make use of unusually expensive financing. The Board has decided that the Company should maintain a low exposure to liquidity risk. This is, amongst other things, reflected in the size of the required liquidity buffer. The Company s credit facilities with its parent also play an important role in reducing its liquidity risk. Operational risk Operational risk is defined as the risk of losses due to human error, external actions or failures and defects in the Company s systems, procedures and processes. Bustadkreditt Sogn og Fjordane AS has signed an agreement with Sparebanken Sogn og Fjordane on the provision of services in areas such as customer service, administration, IT, finance and risk management. In these areas, the parent company is responsible for resolving any mistakes and for handling the operational risk. The Board believes that it handles this well. OUTLOOK In recent years, none of the amendments to accounting regulations have had a big impact on the financial statements of Norwegian credit institutions. Of future changes, the introduction of IFRS 9 from 2018 may affect the recognition of loan impairments by the Company. The loan impairment charge is likely to fluctuate more than it does under current regulations, which means that at times the reported charge may be higher than it currently is. Another regulatory change is the bail-in rules that will be introduced as part of the crisis management directive. When this is incorporated into Norwegian law, the owners of covered bonds will face an even lower risk of losses than is currently the case. Viewed in isolation, this should lower the Company s borrowing costs. In the first six months of 2017, our net interest margin was higher than in the first quarter. The margin between lending rates and funding costs has risen in recent months, which has helped to boost our profit. With costs and loan losses at current levels, the Board believes that the Company can make a healthy profit in the future. Funding from the market for covered bonds will play a vital role in helping the Sparebanken Sogn og Fjordane banking group to remain competitive. We are therefore working to ensure that Bustadkreditt Sogn og Fjordane can take over a larger proportion of Sparebanken Sogn og Fjordane s mortgage portfolio in the coming years. Førde 10 August 2017 The Board of Directors of Bustadkreditt Sogn og Fjordane AS Frode Vasseth Chair Hallvard Klakegg Peter Midthun Ingeborg Aase Fransson Harald Slettvoll CEO 6 Bustadkreditt Sogn og Fjordane AS INTERIM REPORT Q (unaudited)

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8 Income statement Note 30/06/17 30/06/16 31/12/16 Interest income Interest expenses Net interest income Commission income Net commission income Net gains/losses on financial instruments Total other operating income Net other operating income Total operating income Wages, salaries, etc Administration expenses Other operating expenses Total operating expenses Operating profit/ loss before loan impairment charge Impairment provisions 3, 4, Operating profit/loss Tax expense Profit/loss for the reporting period COMPREHENSIVE INCOME Profit/loss for the reporting period Other comprehensive income Comprehensive income Bustadkreditt Sogn og Fjordane AS INTERIM REPORT Q (unaudited)

9 Balance sheet ASSETS Note 30/06/17 30/06/16 31/12/16 Loans and advances to credit institutions Loans to customers 3, 4, Commercial paper and bonds Deferred tax assets Other current assets Total assets SHAREHOLDERS EQUITY AND LIABILITIES Paid-up equity Share capital Total paid-up equity Retained earnings Other equity Allocated for dividends Total retained earnings Total equity Liabilities Debt to credit institutions Debt securities in issue Tax payable Deferred tax Other liabilities Total liabilities Total liabilities and equity Førde, 10 August 2017 The Board of Directors of Bustadkreditt Sogn og Fjordane AS Frode Vasseth Chair Hallvard Klakegg Peter Midthun Ingeborg Aase Fransson Harald Slettvoll CEO Bustadkreditt Sogn og Fjordane AS INTERIM REPORT Q (unaudited) 9

10 Cash flow statement 30/06/17 30/06/16 31/12/16 Profit/loss before taxation Loan impairment charge Tax paid Reduction/increase (-) in loans and advances to customers Other non-cash transactions A) Net cash flow from operating activities Reduction/increase (-) in investments in commercial paper and bonds B) Net cash flow from investment activities Increase/reduction (-) in loans from credit institutions Increase/reduction (-) in debt securities Increase/reduction (-) in other assets Increase/reduction (-) in paid-up share capital Dividends C) Net cash flow from financing activities D) Net cash flow during the year (A+B+C) Opening balance of cash and cash equivalents Closing balance of cash and cash equivalents Breakdown of cash and cash equivalents Deposits at other financial institutions Total Bustadkreditt Sogn og Fjordane AS INTERIM REPORT Q (unaudited)

11 Equity statement PAID-UP EQUITY RETAINED EARNINGS Share capital Other equity Total equity Opening balance 01/01/ Dividends paid Profit/loss for the reporting period Closing balance 31/12/ Opening balance 01/01/ Dividends paid Profit/loss for the reporting period Equity transactions New paid-up equity Closing balance 30/06/ Bustadkreditt Sogn og Fjordane AS INTERIM REPORT Q (unaudited) 11

12 Notes to the financial statements NOTE 1 ACCOUNTING PRINCIPLES AND CRITICAL ACCOUNTING ESTIMATES Bustadkreditt Sogn og Fjordane AS s financial statements are prepared in accordance with the simplified application of IFRS and the relevant regulations issued by the Norwegian Ministry of Finance on 3 March These interim financial statements have been presented in accordance with IAS 34 Interim Financial Reporting. No changes have been made to the accounting principles in Also see Bustadkreditt Sogn og Fjordane s annual report for See: All figures are stated in thousands of NOK, unless otherwise specified. NOTE 2 SEGMENTS The Company has one segment. This segment consists of loans to retail customers and a small volume of loans to private businesses. All of the loans have been bought from Sparebanken Sogn og Fjordane. The Company does not have any operations outside Norway. Customers with overseas addresses are classified as part of the Norwegian operations. NOTE 3 LOAN IMPAIRMENT CHARGE 30/06/17 30/06/16 31/12/16 Increase/reduction in individually assessed impairment provisions Increase/reduction in collectively assessed impairment provisions Losses realised during the period for which impairment provisions had previously Losses realised during the period for which impairment provisions had not previously been made Recoveries against previous years realised losses = Loan impairment charge for the period NOTE 4 IMPAIRMENT PROVISIONS 30/06/17 30/06/16 31/12/16 Individually assessed impairment provisions at the start of the period New ind. ass. provisions against previously impaired loans Release of individually assessed provisions from past periods Loan loss provisions against previously unimpaired loans Losses realised for which individually assessed provisions had been made Individually assessed impairment provisions at end of period Collectively assessed impairment provisions at start of period Change in collectively assessed provisions for the period Collectively assessed impairment provisions at end of period Total impairment provisions at end of period Bustadkreditt Sogn og Fjordane AS INTERIM REPORT Q (unaudited)

13 NOTE 5 LOANS IN DEFAULT AND AT RISK OF DEFAULT Loans in default 30/06/17 30/06/16 31/12/16 Gross loans more than 90 days in arrears individually assessed impairment provisions Net loans in default Coverage ratio 0 % 0 % 0 % Other loans at risk of default Loans at risk of default (not in default) Individually assessed impairment provisions Net other loans at risk of default Coverage ratio 0 % 0 % 0 % NOTE 6 DEBT SECURITIES IN ISSUE 30/06/17 30/06/16 31/12/16 Face value: Commercial paper and other short-term borrowings Bonds in issue Own commercial paper/bonds, not amortised Total debt securities in issue Term to maturity Remaining term to maturity (face value) Total New borrowings in Repaid during the reporting period MATURITY BOOK VALUE ISIN NUMBER FACE VALUE INTEREST RATE SPREAD DATE *) 30/06/17 NO MTH NIBOR 0,55 18/04/ NO MTH NIBOR 0,48 20/09/ NO MTH NIBOR 0,58 13/08/ NO MTH NIBOR 0,36 15/06/ NO MTH NIBOR 0,43 16/06/ NO MTH NIBOR 0,67 15/06/ NO MTH NIBOR 0,60 15/06/ Amortisation Total debt securities in issue The table shows the agreed maturity date. *) The terms of the loan allow for the maturity date to be extended by one year. All loans are denominated in NOK. All loan agreements are subject to standard loan terms. BBustadkreditt Sogn og Fjordane AS INTERIM REPORT Q (unaudited) 13

14 NOTE 7 CAPITAL ADEQUACY 30/06/17 30/06/16 31/12/16 Equity and subordinated debt Share capital and share premium account Other equity Share of interim profit/loss Equity Other core capital Deductions: Deferred tax assets Net core capital Core Tier 1 capital Net supplementary capital Net equity and subordinated debt BASIS FOR CALCULATION Credit risk Institutions Retail loans Residential mortgage loans Overdue advances Covered bonds Other advances Total calculation basis for credit risk Operational risk Total calculation basis Excess equity and subordinated debt CAPITAL ADEQUACY RATIO Capital adequacy ratio 22,99 % 20,90 % 20,00 % Core capital adequacy ratio 22,99 % 20,90 % 20,00 % Core Tier 1 capital adequacy ratio 22,99 % 20,90 % 20,00 % Unweighted core capital ratio 8,64 % 7,88 % 7,52 % The capital adequacy ratio has been calculated using the new capital adequacy regulations (Basel II). The standardised approach has been used for credit risk and market risk, whilst the basic indicator approach has been used for operational risk. There are three pillars to the Basel II regulations. Pillar 1 relates to minimum capital adequacy requirements, and builds on the previous regulations in Basel I. Pillar 2 relates to the institution s internal assessment of total capital requirements (ICAAP), whilst Pillar 3 covers disclosure requirements for financial information. 14 Bustadkreditt Sogn og Fjordane AS INTERIM REPORT Q (unaudited)

15 NOTE 8 TRANSACTIONS WITH RELATED PARTIES Intra-group transactions 30/06/17 30/06/16 31/12/16 Interest received from Sparebanken Sogn og Fjordane Interest paid to Sparebanken Sogn og Fjordane Interest paid to Sparebanken Sogn og Fjordane on covered bonds Services bought from Sparebanken Sogn og Fjordane Deposits at Sparebanken Sogn og Fjordane Liabilities to Sparebanken Sogn og Fjordane Covered bonds held by Sparebanken Sogn og Fjordane Bustadkreditt Sogn og Fjordane AS has no employees. An agreement has been signed with Sparebanken Sogn og Fjordane on the supply of loan servicing and administrative services. All of the Company s loans have been acquired from Sparebanken Sogn og Fjordane, and an agreement has been signed with the bank on the servicing of the portfolio. Bustadkreditt Sogn og Fjordane AS takes on all of the risk associated with the loans that it acquires from its parent. Bustadkreditt Sogn og Fjordane AS has been given access to good credit facilities with Sparebanken Sogn og Fjordane. These will allow it to make interest and principal payments to the owners of covered bonds, enable it to make advances to customers with flexible mortgages, provide bridge financing when loans are being transferred, and fund the necessary surplus in the cover pool. Further details of the credit facilities: Bustadkreditt Sogn og Fjordane AS has four credit facilities with Sparebanken Sogn og Fjordane (SSF): a) A 3-year credit that matures in December The credit facility is to be used for buying mortgage loans from SSF. It has a limit of NOK 750 million, but can only be used for the bulk transfer of loans. b) A credit agreement to ensure that owners of covered bonds will be paid even if the mortgage credit subsidiary is unable to meet its obligations. The limit on the facility at 30 June 2017 was NOK 182 million. Under the agreement, the obligations of the Bank relate to all payments due to the owners of the covered bonds over the coming year. c) A credit facility that can be used to finance advances to customers with available credit within their flexible mortgages. At 30 June 2017 the limit on the facility was NOK 1,389 million. d) A credit facility related to overcollateralisation. The facility shall only be used to buy loans for inclusion in the cover pool, and to buy instruments that qualify as part of a liquidity buffer. At 30 June 2017 the limit on the facility was NOK 1,952 million, but this limit depends on the volume of covered bonds issued at any given time. All agreements and transactions adhere to arm s length principles. NOTE 9 SUBSTITUTE ASSETS 30/06/17 30/06/16 31/12/16 Deposits at the parent company Government-guaranteed commercial paper Other commercial paper and bonds Total substitute assets BBustadkreditt Sogn og Fjordane AS INTERIM REPORT Q (unaudited) 15

16 NOTE 10 FAIR VALUE OF FINANCIAL INSTRUMENTS Fair value of financial instruments measured at amortised cost Carrying amount 30/06/17 30/06/16 31/12/16 Fair value Carrying amount Fair value Carrying amount Fair value Financial assets Loans and advances to credit institutions Loans to customers Total financial assets measured at amortised cost Financial liabilities Debt to credit institutions Securities in issue (covered bonds) Total financial liabilities measured at amortised cost Financial assets measured at fair value Level 1 Level 2 Level 3 30/06/17 TOTAL Financial assets at fair value through profit or loss Commercial paper and bonds designated at fair value Total financial assets measured at fair value Fair value hierarchy Financial instruments measured at fair value are split into three levels: Level 1: Prices quoted in active markets Level 2: Valuation is directly or indirectly based on observable prices for similar assets Level 3: Valuation is not based on observable prices, and instead relies on e.g. our own valuation models 16 Bustadkreditt Sogn og Fjordane AS INTERIM REPORT Q (unaudited)

17 DECLARATION BY THE BOARD OF DIRECTORS AND CEO We declare that, to the best of our knowledge, the interim financial statements for the first half of 2017 have been prepared in accordance with current accounting standards, and that the information contained therein provides a true picture of the assets, liabilities, financial position and results of the Company. The Board believes that the interim report gives a true picture of the performance, results and financial position of the Company, and assesses the most important areas of uncertainty and potential risks it faces. Førde, 10 August 2017 The Board of Directors of Bustadkreditt Sogn og Fjordane AS Frode Vasseth Chair Peter Midthun Hallvard Klakegg Ingeborg Aase Fransson Harald Slettvoll CEO Bustadkreditt Sogn og Fjordane AS INTERIM REPORT Q (unaudited) 17

18 INFORMATION ABOUT THE COMPANY Adress: Bustadkreditt Sogn og Fjordane AS Langebruvegen Førde Tel. no.: Organisation number: Management: Harald Slettvoll Board of Directors: Frode Vasseth Hallvard Klakegg Ingeborg Aase Fransson Peter Midthun CEO Chair Board member Board member Board member Contact person: Harald Slettvoll, CEO Tel. no.: GRAPHIC DESIGN: Sparebanken Sogn og Fjordane / E. Natvik Prenteverk AS ENGLISH TRANSLATION: Språkverkstaden AS 18 Bustadkreditt Sogn og Fjordane AS INTERIM REPORT Q (unaudited) 18