EIENDOMSMEGLER VEST FRENDE FORSIKRING NORNE SECURITIES BRAGE FINANS KYTE NÆRINGSMEGLING Sparebanken Vest Boligkreditt AS Interim Report Q3 2011
Profit and loss account Notes 30/9-11 30/9-10 31/12-10 Interest income etc. 803 612 415 372 613 319 Interest expenses etc 679 325 327 987 490 846 Net interest income and credit commissions 2 124 288 87 385 122 473 Commissions receivable and income from banking services 94 49 71 Commissions payable and cost of banking services 138 112 227 Profit/Loss financial instruments -3 294-1 003-374 Other operating income 422 422 563 Net other operating income -2 916-644 32 Net operating income 121 372 86 741 122 505 Salaries and general administration expenses 3 3 211 2 969 4 449 Depreciation 3 491 810 1 080 Other operating expenses 3 31 418 18 598 26 782 Total operating expenses 35 120 22 377 32 311 Profit before write-downs and tax 86 251 64 365 90 194 Write-downs and losses on loans and guarantees 4 0 0 0 Profit before tax 86 251 64 365 90 194 Taxes 24 150 18 022 25 282 Profit after tax 62 101 46 342 64 912 Profit per share 52,91 67,82 87,90 Diluted profit per share 52,91 67,82 87,90 Comprehensive income statement according to IAS 30/9-11 30/9-10 31/12-10 Profit for the period 62 101 46 342 64 912 Other income and expenses 0 0 0 Comprehensive income for the period 62 101 46 342 64 912 2 Sparebanken Vest Boligkreditt AS Interim Report Q3 2011
Balance Sheet Assets Noters 30/9-11 30/9-10 31/12-10 Loans to and receivables from credit institutions 6 825 715 802 971 2 427 037 Net lendings 5 30 537 608 19 065 425 21 726 551 Government securities 270 525 149 325 150 028 Other intangible assets 78 839 569 Financial derivatives 353 030 13 347 0 Accrued income 1 019 141 141 Total assets 31 987 975 20 032 048 24 304 325 Liabilities and equity Loans to and deposits with credit institutions 7 4 138 350 2 614 266 4 665 722 Securitised debt 8 26 178 245 16 413 299 18 478 221 Financial derivatives 92 281 31 662 151 170 Accrued expenses and prepaid income 253 63 241 Deferred tax 1 461 0 25 261 Tax provision 24 051 17 892 23 Other liabilities 86 589 7 593 17 843 Total liabilities 30 521 230 19 084 774 23 338 482 Equity 1 400 000 900 000 900 000 Total paid-up equity 1 400 000 900 000 900 000 Other equity 66 744 47 274 65 843 Total equity 1 466 744 947 274 965 843 Total liabilities and equity 31 987 975 20 032 048 24 304 325 Bergen, 30 September/24 October 2011 Board of directors for Sparebanken Vest Boligkreditt AS Knut Ravnå, Chairman pål Pedersen, Deputy chairman Inga Lise Moldestad Vibeke Knudsen Egil Mokleiv, CEO 3 Sparebanken Vest Boligkreditt AS Interim Report Q3 2011
Statement of cash flows 30/9-11 30/9-10 31/12-10 Cash flow from operations Interest, commission and fee income 762 315 396 468 584 328 Interest, commissions and fees paid 136-768 224 Payments for goods and services 23 607 15 284 24 468 Payments to employees, pension schemes, national insurance, tax deductions etc. 2 603 2 413 3 202 Payment of taxes and public dues 123 254 121 Payments on interest to credit institutions and securitised debt 470 335 334 153 390 794 Net cash flow from operations 241 710 45 133 165 518 Cash flow from investment activities Net growth in lendings -8 802 604-7 160 948-9 817 974 Payments related to other assets 54 039 0 601 Payments related to purchase of financial instruments 174 162-149 084-149 561 Payments related to purchase of fixed assets 0 91 91 Net cash flow from investment activities -8 922 727-7 310 087-9 967 026 Cash flow from financing activities Net revenues/payments on receivables from and loans to financial institutions -527 372 1 342 142 3 381 730 Income related to bond debt 8 172 832 5 913 299 8 034 329 Payments related to bond debt 1 004 565 0 0 Payments related to issue of equity 500 000 450 000 450 000 Payment of group contributions 61 200 70 000 70 000 Net cash flow from financing activities 7 079 695 7 635 441 11 796 059 Net cash flow in period -1 601 322 370 487 1 994 552 Net change in cash and cash equivalents -1 601 322 370 487 1 994 552 Cash and cash equivalents at beginning of period 2 427 037 432 485 432 485 Cash and cash equivalents at end of period 825 715 802 971 2 427 037 Equity movements Equity Other equity Total Equity at 31 December 2009 450 000 51 332 501 332 Capital Increase 9 April 2010 250 000 250 000 Capital Increase 21 June 2010 200 000 200 000 Profit for the period 46 342 46 342 Group contribution -50 400-50 400 Equity at 30 September 2010 900 000 47 274 947 274 Equity at 31 December 2010 900 000 65 843 965 843 Capital increase 5 January 2011 250 000 250 000 Capital increase 31 August 2011 250 000 250 000 Profit for the period 62 101 62 101 Group contribution -61 200-61 200 Equity at 30 September 2011 1 400 000 66 744 1 466 744 Equity constitutes 1 400 000 shares with face value NOK 1 000, wholly owned by SPV. 4 Sparebanken Vest Boligkreditt AS Interim Report Q3 2011
Notes Note 1 Accounting principles The accounts are prepared in accordance with the Norwegian Securities Trading Act, Finanstilsynet s (The Financial Supervisory Authorithy of Norway) regulations governing annual accounts and IAS 34. The accounts are prepared applying the same principles and methods of estimation as used in the annual report for 2010. The principles are described in the annual report for 2010. There has not been any changes in standards having an effect on Sparebanken Vest Boligkreditt AS accounts from 1 January 2011. The interim accounts have not been audited. All amounts are stated in NOK thousand unless stated otherwise. Note 2 Net interest income and credit commissions 01/01-11 - 30/09-11 01/01-10 - 30/09-10 3. Q 2011 3. Q 2010 31/12-10 30/09-11 vs 30/09-10 changes 3Q11-3Q10 Interest etc. on loans to and deposits with credit institutions 28 566 11 869 17 711 5 599 16 813 16 697 12 112 12 154 Interest etc. on loans to and receivables from customers 770 715 403 225 279 087 169 265 595 434 367 490 109 822 26 801 Interest etc. on securities 4 331 278 1 858 278 1 072 4 053 1 581 432 Total 803 612 415 372 298 657 175 142 613 319 388 240 504 956 240 230 3Q11-2Q11 Interest etc. on loans from credit institutions 94 702 55 170 31 199 23 705 76 112 39 532 7 494 8 913 Interest etc. on securities issued 584 623 272 816 222 108 122 104 414 734 311 808 100 005 150 712 Other interest costs and commissions 0 1 0 0 1-1 0 1 Interest costs 679 325 327 987 253 306 145 809 490 846 351 339 426 019 182 178 Net interest income and credit commissions 124 288 87 385 45 350 29 333 122 473 36 902 78 936 58 052 5 Sparebanken Vest Boligkreditt AS Interim Report Q3 2011
Note 3 Operating expenses 01/01-11 - 30/09-11 01/01-10 - 30/09-10 3. Q 2011 3. Q 2010 31/12-10 30/09-11 vs 30/09-10 changes 3Q11-3Q10 3Q11-2Q11 Salaries 2 436 2 078 838 819 2 905 358 19-69 Pensions 46 41 16 14 55 6 1 0 Social security contributions 156 88 56 39 175 68 17-10 IT costs 159 476 0 158 635-317 -158 0 Administration expenses 414 285 77 70 679 129 8-194 Total 3 211 2 969 986 1 101 4 449 242-115 -273 Ordinary depreciation of intangible assets 491 810 30 271 1 080-319 -241-161 Depreciation 491 810 30 271 1 080-319 -241-161 Administration fee 27 599 15 986 9 471 6 324 22 903 11 613 3 147 320 Other operating expenses 3 819 2 612 1 143 744 3 879 1 207 399-548 Total other operating expenses 31 418 18 598 10 614 7 068 26 782 12 820 3 546-228 Total 35 120 22 377 11 630 8 440 32 311 12 743 3 190-662 Note 4 Write-downs and losses on loans Loan write-downs posted in the balance sheet 01/01-11 - 30/09-11 01/01-10 - 30/09-10 3. Q 2011 3. Q 2010 31/12-10 30/09-11 vs 30/09-10 changes 3Q11-3Q10 3Q11-2Q11 Individual write-downs Loan write-downs at 1 January (nominal values) 0 0 0 0 0 0 0 0 Realised losses on loans covered by previous write-downs 0 0 0 0 0 0 0 0 Increase in write-down of loans written down previously 0 0 0 0 0 0 0 0 Write-down of loans not written down previously 0 0 0 0 0 0 0 0 Reduction in previous years' write-downs of individually assessed loans 0 0 0 0 0 0 0 0 Individual write-downs 0 0 0 0 0 0 0 0 Group write-downs Write-down of loan groups at 1 January (nominal values) 680 680 680 680 0 0 0 0 Increase in write-down of loan groups 0 0 0 0 0 0 0 0 Reduction in write-down of loan groups 0 0 0 0 0 0 0 0 Write-down of loan groups 680 680 680 680 0 0 0 0 Total write-downs of commitments 680 680 680 680 0 0 0 0 Realised losses on loans covered by previous write-downs 0 0 0 0 0 0 0 0 Realised losses on loans not covered by previous write-downs 0 0 0 0 0 0 0 0 Realised losses 0 0 0 0 0 0 0 0 6 Sparebanken Vest Boligkreditt AS Interim Report Q3 2011
Note 5 Loans 30/9-11 30/9-10 31/12-10 Distribution of loans by sector - nominal amount of loan principal Overdraft facilities 12 478 936 8 062 607 8 943 767 Instalment loans 18 059 352 11 003 498 12 783 464 Gross loans to customers 30 538 288 19 066 105 21 727 231 Individual loan write-downs 0 0 0 Loans to customers after individual write-downs 30 538 288 19 066 105 21 727 231 Write-down of loan groups -680-680 -680 Loans to and receivables from customers at amortised cost 30 537 608 19 065 425 21 726 551 Market distribution of loans Wage earners 30 052 526 18 780 616 21 402 504 Sole proprietorship mortgages 485 762 285 489 324 727 Gross loans and receivables 30 538 288 19 066 105 21 727 231 Write-down of loan groups -680-680 -680 Loans to and receivables from customers 30 537 608 19 065 425 21 726 551 Net loans distributed by main industries and retail market Retail customers 30 040 108 18 774 813 21 392 635 Foreign (retail clients) 12 418 5 803 9 869 Total - retail clients 30 052 526 18 780 616 21 402 504 Primary industries 42 555 19 428 20 155 Manufacturing and mining 10 028 6 626 6 391 Building and construction, power and water supply 117 156 78 129 85 510 Commerce, hotels and restaurant operations 55 812 25 460 30 347 Transportation, post and telecommunications 117 749 64 196 76 523 Real estate operations 19 124 6 101 10 759 Other 123 338 85 549 95 042 Total - commercial sector 485 762 285 489 324 727 Total 30 538 288 19 066 105 21 727 231 Distribution of loans by geographical area Hordaland 27 189 492 17 369 614 19 715 874 Sogn & Fjordane 2 268 181 1 297 164 1 468 713 Rogaland 1 031 432 393 523 505 948 Other 36 765 0 26 826 Total - Norway 30 525 870 19 060 302 21 717 362 Abroad 12 418 5 803 9 869 Total - geographical areas 30 538 288 19 066 105 21 727 231 Defaulted commitments - Individually assessed Defaulted commitments 31-60 days 14 000 2 100 3 100 61-90 days 0 0 200 Over 90 days 2 500 200 700 Total 16 500 2 300 4 000 The table shows defaults older than 30 days. 7 Sparebanken Vest Boligkreditt AS Interim Report Q3 2011
Note 6 Loans to and receivables from credit institutions 30/9-11 30/9-10 31/12-10 Deposits with credit institutions with no agreed term or period of notice 825 715 802 971 2 427 037 Net loans to and deposits with credit institutions 825 715 802 971 2 427 037 Geographical areas Hordaland 825 715 802 971 2 427 037 Total 825 715 802 971 2 427 037 Note 7 Debt to credit institutions Debt to credit institutions is classified at amortised cost. 30/9-11 30/9-10 31/12-10 No agreed term or period of notice 4 138 350 2 614 266 4 665 722 Debt to credit institutions 4 138 350 2 614 266 4 665 722 Note 8 Securitised debt Securitised debt is classified as being valued at amortised cost or recognised at fair value through profit or loss. Covered bonds ISIN code Currency Nominal value Interest Issue Matured 30/9-11 30/9-10 31/12-10 NO0010474547 NOK 3 500 000 Floating 3M Nibor + 0,45 % 2008 2012 3 500 000 4 500 000 4 500 000 NO0010497290 NOK 2 500 000 Floating 3M Nibor + 0,55 % 2009 2014 2 500 000 1 500 000 1 500 000 NO0010524358 NOK 3 000 000 Floating 3M Nibor + 0,55 % 2009 2015 3 000 000 3 000 000 3 000 000 NO0010552342 NOK 1 500 000 Floating 3M Nibor + 0,30 % 2009 2014 1 500 000 1 500 000 1 500 000 XS0515762093 1) EUR 500 000 Fast 2,50 % 2010 2015 4 000 000 4 000 000 4 000 000 NO0010583966 NOK 1 800 000 Floating 3M Nibor + 0,55 % 2010 2017 1 800 000 997 175 1 000 000 NO0010585128 1) NOK 600 000 Fast 4,05 % 2010 2017 600 000 600 000 600 000 NO0010585383 NOK 1 000 000 Floating 3M Nibor + 0,30% 2010 2013 1 000 000 299 640 1 000 000 NO0010589690 NOK 1 500 000 Floating 3M Nibor + 0,48% 2010 2016 1 500 000 1 500 000 XS0589450211 1) EUR 500 000 Fast 3,125 % 2011 2016 3 942 000 NO0010607237 1) NOK 1 000 000 Fast 5,200 % 2011 2021 1 000 000 NO0010609993 NOK 1 000 000 Floating 3M Nibor+0,50 % 2011 2017 1 000 000 NO0010622012 1) NOK 500 000 Fast 4,960 % 2011 2022 500 000 Adjustments 336 245 16 484-121 779 Total securities issued 26 178 245 16 413 299 18 478 221 Financial derivatives ranking pari passu with covered bond holders -260 749 18 315 151 170 Sum liabilities with preference on cover pool 25 917 496 16 431 614 18 629 391 Covered pool Mortgages 2)3) 30 330 322 18 950 351 21 577 269 Commercial Papers and bonds 269 367 149 048 149 561 Supplementary assets 825 715 802 971 2 427 037 Total collateralised assets 31 425 404 19 902 370 24 153 867 Over-collateralisation 121 % 121 % 130 % 1) Sparebanken Vest Boligkreditt AS has established hedge accounting related to the bonds in mention. 2) The pool of eligible loans consist of NOK 12,4 m in lending to Norwegian citizens living abroad with security situated in Norway. 3) NOK 208 m is not eligible for the cover pool due to LTV over 75%. This amounts to 0,681% of the cover pool. 8 Sparebanken Vest Boligkreditt AS Interim Report Q3 2011
Note 9 Capital adequacy With effect from and including the second quarter of 2009, Sparebanken Vest Boligkreditt AS has been given permission to calculate the minimum capital base requirement for the credit risk associated with the mass property market under the IRB method. Under the terms of the permission given, the company will be required to apply the transitional rules in the capital requirement regulations. The transitional rules are based on previous Basel I rules, with a gradual de-escalation of the capital requirement. Net Capital base 30/9-11 30/9-10 31/12-10 Equity 1 400 000 900 000 900 000 Other equity 4 643 932 65 843 Sum equity 1 404 643 900 932 965 843 Intangible capital -78-839 -569 Group contribution 0 0-61 200 Expected loss -19 927-12 342-13 910 Deductions -20 005-13 181-75 678 Core capital 1 384 638 887 750 890 165 Net Supplementary capital - - - Net subordinated capital 1 384 638 887 750 890 165 Minimum capital requirements Basel II 30/9-11 30/9-10 31/12-10 Credit risk 196 299 123 778 166 519 Market risk - - - Operational risk 13 165 13 815 12 262 Minimum requirements IRB 209 464 137 592 178 781 Additional requirements according to transitional rules 844 260 519 808 589 031 Minimum requirement subordinated capital 1 053 724 657 400 767 812 Capital adequacy, Basel II Basis of calculation, Basel II 2 618 300 1 719 905 2 234 759 Net core capital (%) 52,9 % 51,6 % 39,8 % Net capital base (%) 52,9 % 51,6 % 39,8 % Calculated regulatory surplus, Basel II 1 175 174 750 159 711 384 Capital adequacy, transitional scheme IRB-reporting of floor 16 464 439 10 271 877 11 997 057 Basis of calculation, transitional scheme 80 % 13 171 551 8 217 502 9 597 646 Net core capital (%) 10,5 % 10,8 % 9,3 % Net capital base (%) 10,5 % 10,8 % 9,3 % Calculated regulatory surplus 330 914 230 350 122 353 9 Sparebanken Vest Boligkreditt AS Interim Report Q3 2011
Note 10 Transactions with associated companies This information is provided in accordance with the provisions of IAS 24 concerning «Information about associated companies». Sparebanken Vest Boligkreditt AS is a wholly owned subsidiary of Sparebanken Vest and are defined as associated company. All intra-group transactions and transactions with associated companies are conducted in conformity with normal commercial terms and principles. Total intra-group transactions (NOK 1000) 30/9-11 30/9-10 31/12-10 Profit and Loss Interest received from SPV on deposit 28 565 11 869 16 813 Interest paid on debt to SPV -253 938-227 673-309 325 CEO hire from SPV -1 418-1 350-1 800 Administration fee -27 599-15 969-22 903 Balance Sheet Deposits in SPV 825 715 802 971 2 427 037 Debt to SPV -4 138 350-2 614 266-4 665 722 Securitised debt -5 786 574-7 691 488-7 778 026 10 Sparebanken Vest Boligkreditt AS Interim Report Q3 2011
Kaigaten 4 N-5016 Bergen Tel. +47 915 05555 www.spv.no Foto: Knut Egil Wang