Notes to accounts

Note 1 Accounting Principles

1.1 Basis of preparation

SpareBank 1 Boligkreditt AS is the SpareBank 1 Alliance's separate legal vehicle established according to the specialist banking principle within the Norwegian legislation for covered bonds. The Company's purpose is to acquire residential mortgages from its ownership banks organised in the SpareBank 1 Alliance and finance these by issuing covered bonds.  

SpareBank1 Boligkreditt main office is located in Stavanger, visiting address Bjergsted Terrasse 1.

These quarterly accounts for SpareBank 1 Boligkreditt refers to the period 01.01.2014 - 31.03.2014.  The accounts have been produced in accordance with IAS 34 reporting for a partial year. The accounts are prepared in accordance with IFRS and IFRIC interpretations thereof.  The Company's accounting principles and calculation methods have not materially changed since the annual accounts for 2012.  The principles adressed below should be seen in connection with the accounting principles as they were presented in the annual accounts for 2012. 
These financial accounts for the third quarter of 2013 have been approved by the Board of Directors of SpareBank 1 Boligkreditt on 30.04.2014

1.2 Segment
Business segments are the Company's primary reporting segment.  The Company has only one segment, which is the retail customer segment.  The segment consists of lending to private individuals and all loans have been acquired from the member banks of the SpareBank 1 alliance.  The Company's total results for the third quarter of 2013 is therefore equal to the retail segment total results. 

1.3 Presentational Currency
The presentation currency is Norwegian Kroner (NOK), which is also the Company's functional currency. All amounts are given in NOK thousand unless otherwise stated. 

1.4 Risk Management
SpareBank 1 Boligkreditt AS' financial assets and liabilities fluctuates in value as a result of the variability of prices of such assets and liabilities in the financial markets.  In the annual accounts for 2013 Note 3 this risk and management thereof is more closely discussed.

1.5 Estimates 
The preparation of the financial information is in accordance with IFRS and involves management's estimates which affect the implementation of accounting principles and thereby accounting values for assets, liabilities, revenue and costs. These estimates have been described in the notes to the annual accounts for 2013.


Note 2 Net interest income

NOK 1 000 31.03.14 31.03.13 2013
 
Interest income
Interest income and similar income from loans to and balances with credit institutions 31,041 69,463 264,755
Interest income and similar income from loans to and balances with customers 1,759,866 1,548,670 6,661,490
Interest income treasury bills 3,601 1,170 55,606
Commission expense (payable to shareholder banks) * -671,056 -456,036 -2,299,029
Total interest income 1,123,453 1,163,267 4,682,822
 
Interest expense
Interest expense and similar expenses to credit institutions 14,809 3,635 22,910
Interest expense and similar expenses on issued bonds 996,684 1,057,919 4,259,716
Interest expense and similar expenses on issued certificates 16,855 27,717 104,327
Interest expense and similar expenses on Tier 2 capital 4,400 - -
Other interest expenses 5 3 682
Total interest expense 1,032,753 1,089,274 4,387,634
Net interest income 90,699 73,993 295,188
 

* Commissions to our parent banks are calculated daily for each mortgage loan transferred. whereby the commission equals the customer loan rate less a rate which incorporates the Company's average cost of funding and operational costs. The operational add-on element is expressed through an average rate which is from time to time decided by the Company's Board of Directors.


Note 3 Net Gains on Financial Instruments

NOK 1 000 31.03.14 31.03.13 2013
 
Net gains (losses) from financial liabilities -1,030,251 520,182 1,770,926
Net gains (losses) from financial assets -22,814 72,554 -176,973
Net gains (losses) from financial derivatives. hedging. at fair value 1,024,778 -566,967 -1,557,047
Netto gains (losses) -28,287 25,768 36,906
 

Note 4 Salaries and Remuneration

NOK 1 000 31.03.14 31.03.13 2013
 
Salary 2,212 2,182 11,112
Salaries reinvoiced to SpareBank1 N -1,331 -853 -4,187
Pension expenses 610 556 1,330
Social insurance fees 760 544 1,445
Other personnel expenses 212 184 334
Total salary expenses 2,463 2,613 10,033
 
Average number of full time equivalents (FTEs) 8 8 8

* The company_s employees have shared employment between SpareBank 1 Næringskreditt AS


Note 5 Administration Expenses

NOK 1 000 31.03.14 31.03.13 2013
 
IT operation and maintenance 2,060 1,102 8,588
Travel 279 235 1,562
Telephone and postage 19 20 125
Misc other adm expenses 1 18 43
Total 2,359 1,375 10,318
 

Note 6 Other Operating Expenses

NOK 1 000 31.03.14 31.03.13 2013
 
Auditing. hired personnel from SpareBank 1 Group. other services 3,487 3,483 9,369
Operating expenses rented offices 142 142 570
Operating expenses reinvoiced to SpareBank 1 Næringskreditt AS -202 -248 -885
Misc other operating expenses 23 39 320
Total 3,450 3,416 9,374
 

Note 7 Other Assets

NOK 1 000 31.03.14 31.03.13 2013
 
Intangible Assets 2,612 2,179 3,002
Account Reveivables from SpareBank 1 Næringskreditt AS 6,233 1,336 1,162
Sum 8,845 3,515 4,164
 

Note 8 Lending to Customers

Lending to customers are residential mortgages only. The mortgages generally have a loan lon-to-value and losses have been very low. The total amout of lending to customers at the end of 2013 were NOK 175.3 billion. All mortgages carry a variable interest rate.

NOK 1 000 31.03.14 31.03.13 2013
 
Revolving loans - retail market 66,292,417 65,037,277 66,797,306
Amortising loans - retail market 108,808,528 99,613,799 107,776,344
Accrued interest 221,959 223,600 215,280
Total loans before specified and unspecified loss provisions 175,322,904 164,874,676 174,788,930
 
Specified loan loss provisions - - -
Unspecified loan loss provisions 7,708 7,708 7,708
Total net loans and claims with customers 175,315,196 164,866,968 174,781,222
 
Liability
Unused balances under revolving credit lines 21,634,804 20,255,240 21,528,276
Total 21,634,804 20,255,240 21,528,276
 
Defaulted loans
Defaults* 0,0 % 0,0 % 0,0 %
Specified loan loss provisions 0,0 % 0,0 % 0,0 %
Net defaulted loans 0,0 % 0,0 % 0,0 %
 
Loans at risk of loss
Loans not defaulted but at risk of loss 0,0 % 0,0 % 0,0 %
- Write downs on loans at risk of loss 0,0 % 0,0 % 0,0 %
Net other loans at risk of loss 0,0 % 0,0 % 0,0 %
 
*The entire customer loan balance is considered to be in default and will be included in overviews of defaulted loans when overdue instalments and
interest payments are not received within 90 days or if credit limits on revolving loans are exceeded for 90 days or more
Changes to loan loss provisions
NOK 1 000 41,729 41,364 2,013
Loan loss provisions starting balance 7,708 7,708 7,708
Change in group loan loss provisions 0 0 0
Loan loss provisions ending balance 7,708 7,708 7,708
 

Note 9 Liabilities incurred by issuing securities

Nominal value* Nominal value*
 
NOK 1 000 31 31 2,013
Short term notes. unsecured 3,225,000 4,950,000 3,400,000
Repurchased short term notes. unsecured - -465,000 -
Senior unsecured bonds 5,291,000 5,172,000 3,676,000
Repurchased senior unsecured bonds - -1,077,000 -
Covered bonds 163,711,657 169,398,575 166,495,725
Withdrawn from the Norwegian Central Bank Swap Facility 6,569,843 14,864,778 6,569,843
Bonds deposited in the Norwegian Central Bank Swap Facility -7,552,000 -18,100,000 -7,552,000
Repurchased Covered bonds -1,525,600 -4,749,374 -1,764,681
Total debt securities in issue 169,719,900 169,993,979 170,824,887
 

* Nominal value is incurred debt at exchange rates (EUR/NOK and USD/NOK) at the time of issuance

Book value Book value
 
NOK 1 000 31.03.14 31.03.13 2013
Short term notes. unsecured 3,224,668 4,948,867 3,399,501
Repurchased short term notes. unsecured - -464,941 -
Senior unsecured bonds 5,289,937 5,171,638 3,675,628
Repurchased senior unsecured bonds - -1,077,738
Covered bonds 174,221,199 173,111,403 177,379,674
Withdrawn from the Norwegian Central Bank Swap Facility 6,573,961 14,864,778 6,572,905
Bonds deposited in the Norwegian Central Bank Swap Facility -7,552,000 -18,100,000 -7,552,000
Repurchased covered bonds -1,642,203 -4,933,022 -1,856,072
Activated costs incurred by issuing debt -178,717 -161,844 -188,315
Accrued interest 1,425,992 1,468,479 1,715,090
Total liabilities incurred by issuing securities 181,362,838 174,827,620 183,146,411

Liabilities categorized by debt instrument and year of maturity (nominal value*) NOK 1.000:

Senior Unsecured

Maturity 31.03.14 31.03.13 2013
 
2012 - 3,935,000 -
2013 - 3,541,000 -
2014 3,075,000 1,104,000 4,651,000
2015 3,241,000 - 2,425,000
2016 2,200,000 - -
Sum 8,516,000 8,580,000 7,076,000
 
Covered Bonds in Central Bank Swap Facility
Maturity 31 31 2,013
2013 0 8,294,936 0
2014 6,569,843 6,569,843 6,569,843
Sum 6,569,843 14,864,778 6,569,843
 

Covered bonds

Maturity 31.03.14 31.03.13 2013
 
2013 0 12,952,973 0
2014 3,573,500 9,050,000 6,309,000
2015 17,127,000 18,376,000 17,127,000
2016 25,995,625 25,807,195 25,756,158
2017 21,013,000 21,013,000 21,013,000
2018 21,535,000 14,327,000 21,485,000
2019 25,262,122 23,021,317 25,194,564
2020 17,161,148 600,000 17,293,500
2021 15,652,768 15,382,237 15,670,710
2022 3,233,750 3,233,750 3,233,750
2023 - - -
2024 1,257,344 1,135,729 1,273,562
2025 1,010,000 - 1,010,000
2026 1,650,000 1,650,000 1,650,000
2027 - - -
2028 162,800 - 162,800
Sum 154,634,057 146,549,201 157,179,044
 
Totalt 169,719,900 169,993,979 170,824,887
 

* Nominal value is incurred debt at exchange rates (EUR/NOK and USD/NOK) at the time of issuance

Liabilities incurred by currency (book values at the end of the period)

NOK 1 000 31.03.14 31.03.13 2013
 
NOK 63,605,912 76,233,017 64,499,347
EUR 89,171,021 68,821,797 89,786,425
USD 28,347,761 29,539,629 28,624,959
SEK 238,144 233,176 235,680
Sum 181,362,838 174,827,620 183,146,411
 

Note 10 Tier 2 capital notes

NOK 1000 Year of issue Nominal value Interest rate Call option 31.03.14 31.03.13 2013
 
Tier 2 capital notes 2014 NOK 1 600 000 3 months NIBOR + 2.25 call option 2019 1,600,000 - -
Accured interest 4,400 - -
Book value 1,604,400 - -
 

Note 11 Financial Derivatives

NOK 1 000 31.03.14 31.03.13 2013
 
Interest rate derivative contracts
Interest rate swaps
Nominal amount 61,503,228,000 94,647,562 77,804,369
Asset 4,483,703 5,173,459 4,111,612
Liability -713,078 -620,956 -745,077
 
Currency derivative contracts
Currency swaps
Nominal amount 108,909,000,000 91,839,940 112,350,126
Asset 7,502,340 1,478,271 8,648,739
Liability -48,395 -1,893,306 -52,340
 
Total financial derivative contracts
Nominal amount 170,412,000,000 186,487,503 190,154,495
Asset 11,986,042 6,651,730 12,760,351
Liability -761,473 -2,514,262 -797,417
 

All derivative contracts exist for the purpose of hedging changes in interest rates and currency exchange rates.


Note 12 Classification of Financial Instruments

NOK 1 000 Financial instruments accounted for at fair value * Financial assets and debt accounted for at amortised cost Financial assets held to maturity Non-financial assets and liabilities 31.03.14
 
Assets
Deposits at and receivables from financial institutions - 10,545,177 - - 10,545,177
Norwegian government short term debt certificates 967,828 - - - 967,828
Bonds 3,750,679 - 1,140,804 - 4,891,483
Lending to customers - 175,315,196 - - 175,315,196
Financial derivatives 11,986,042 - - - 11,986,042
Other assets - - - 8,845 8,845
Total Assets 16,704,549 185,860,373 1,140,804 8,845 203,714,573
 
Liabilities
Debt incurred by issuing securities 137,922,259 43,440,578 - - 181,362,838
Collateral received in relation to financial derivatives - 8,977,523 - - 8,977,523
Financial derivatives 761,473 - - - 761,473
Deferred taxes - - - 80,017 80,017
Taxes payable - - - 20,537 20,537
Tier 2 capital - 1,604,400 - - 1,604,400
Other liabilities - - - 2,274,821 2,274,821
Total Liabilities 138,683,732 54,022,501 - 2,375,375 195,081,609
 
Total Equity - - - 8,632,964 8,632,964
 
Total Liabilities and Equity 138,683,732 54,022,501 - 11,008,339 203,714,573
 

*Fair value calculation according to changes in market interest rates and currencies exchange rates

NOK 1 000 Financial instruments accounted for at fair value * Financial assets and debt accounted for at amortised cost Financial assets held to maturity Non-financial assets and liabilities 31.03.13
 
Assets
Deposits at and receivables from financial institutions - 4,677,406 - - 4,677,406
Norwegian government short term debt certificates 1,612,305 - - - 1,612,305
Bonds 11,005,002 - 1,607,041 - 12,612,044
Lending to customers - 164,866,968 - - 164,866,968
Financial derivatives - - - - -
Other assets 6,651,730 - - 3,515 6,655,245
Total Assets 19,269,037 169,544,374 1,607,041 3,515 190,423,968
 
Liabilities
Debt incurred by issuing securities 127,500,755 47,326,865 - - 174,827,620
Collateral received in relation to financial derivatives - 3,361,575 - - 3,361,575
Financial derivatives 2,514,262 - - - 2,514,262
Deferred taxes - - - 100,712 100,712
Taxes payable - - - - -
Tier 2 capital - - - - -
Other liabilities - - - 1,761,209 1,761,209
Total Liabilities 130,015,017 50,688,440 - 1,861,922 182,565,379
 
Total Equity - - - 7,858,588 7,858,588
 
Total Liabilities and Equity 130,015,017 50,688,440 - 9,720,510 190,423,968
 

*Fair value calculation according to changes in market interest rates and currencies exchange rates


Note 13 Financial Instruments at Fair Value

Methods in order to determine fair value

General
The interest rate curve that is used as input for fair value valuations of hedging instruments and hedging objects consists of the NIBOR-curve for maturities less than one year. The swap-curve is used for maturities exceeding one year. 
Interest rate and currency swaps
Valuation of interest rate swaps at fair value is done through discounting future cash flows to their present values.  Valuation of currency swaps will also include the element of foreign exchange rates
Bonds
Valuation of bonds at fair value is done through discounting future cash flows to present value. 
With effect from 2009 SpareBank 1 Boligkreditt AS has implemented the changes in IFRS 7 in relation to the valuation of financial instruments as of the date of the financial accounts. The changes require a presentation of the fair value measurement for each Level.  We have the following three Levels for the fair value measurement: 

  • Quoted price in an active market for an identical asset or liability (level 1)
  • Valuation based on observable factors either direct (prices) or indirected (deduced from prices used in level 1) other than quoted price for the asset or liability (Level 2)
  • The valuation is based on factors that are not found in observable markets (non-observable assumptions) (level 3)

The following numbers present the company_s assets and liabilities at fair value as of 31.03.2014

NOK 1 000 Level 1 Level 2 Level 3 Total
 
Bonds and bills 3,963,868 754,639 - 4,718,507
Financial Derivatives - 11,986,042 - 11,986,042
Total Assets 3,963,868 12,740,681 - 16,704,549
 
Bonds - 137,922,259 - 137,922,259
Financial Derivatives - 761,473 - 761,473
Total Liabilities - 138,683,732 - 138,683,732
 
The following numbers present the company_s assets and liabilities at fair value as of 31.03.2013
NOK 1 000 - - - -
Bonds and bills 9,776,488 2,840,820 - 12,617,308
Financial Derivatives - 6,651,730 - 6,651,730
Total Assets - 9,492,550 - 19,269,038
 
Bonds - 127,500,755 - 127,500,755
Financial Derivatives - 3,531,313 - 3,531,313
Total Liabilities - 131,032,068 - 131,032,068
 

Note 14 Bonds classified as Hold to Maturity

As of 31.03.14

Bonds classified as Book value 01.01.14 Investments Matured Amortising Exchange rate effects Amortised cost 31.03.14
 
Hold to maturity 1,213,050 0 0 -72,246 0 1,140,804
Total certificates and bonds 1,213,050 0 0 -72,246 0 1,140,804
 
Market value of bonds in hold to maturity portfolio
Bonds classified as 0 0 0
Hold to maturity 1,140,804 1,143,837 3,033
Total certificates and bonds 1,140,804 1,143,837 3,033
 

Note 15 Other Liabilities

NOK 1 000 31.03.14 31.03.13 2013
 
Employees tax deductions and other deductions 617 292 600
Employers national insurance contribution 369 255 369
Accrued holiday allowance 1,222 1,142 901
Commission payable to shareholder banks 2,155,567 1,700,220 3,115,000
Deposits* 7,020 8,608 8,541
Pension liabilities 12,621 11,046 12,111
Other accrued costs 97,405 39,646 5,834
Total 2,274,821 1,761,209 3,143,356
 

The Company does not have an overdraft facility or a revolving credit facility as of 31.12.2013 * Deposits represents temporary balances paid in by customers in excess of the original loan amount


Note 16 Asset Coverage Requirement

The asset coverage is calculated according to the Financial Services Act § 2-31 (Covered Bond Legislation). There is a discrepancy between the asset coverage test and the amounts in the balance sheet because for the purposes of the test mortgage loans which may have migrated above the 75% loan to value level are reduced to reflect the decrease in the value of the underlying collateral so that only a maximum loan corresponding to a value of 75% of the collateral is considered. Furthermore, the fact that market values are recorded for all bonds and certificates in the cover pool could have an impact. In addition any defaulted loans, i.e. loans in arrears at or beyond 90 days, are excluded from the test (there have been no occurances of any defaults starting with the commencement of operations through 31.12.2012). The company separates Cover Pool 1 and Cover Pool 2. Cover Pool 1 is utilised for market issuances of covered bonds whilst Cover Pool 2 is a separate mortgage portfolio established solely for use in the swap facility with Norway's Central Bank in 2009.

Pool 1

NOK 1 000 31.03.14 31.03.13 2013
 
Covered Bonds 168,029,035 156,399,327 171,499,524
Repurchased Bonds -1,658,763 -5,023,904 -1,859,098
Derivatives -11,312,327 -4,440,161 -12,005,425
Total Covered Bonds 155,057,946 146,935,262 157,635,002
Lending to customers 169,087,880 149,909,470 167,354,070
Treasury Bills 296,780 0 498,480
Substitute collateral 5,024,587 12,730,842 6,901,444
Total Cover Pool 174,409,247 162,640,312 174,753,993
Asset-coverage 112,5 % 110,7 % 110,9 %
 
Pool 2
 
NOK 1 000 31.03.14 31.03.13 2013
Covered Bonds 8,592,678 18,202,534 8,556,515
Repurchased Bonds -998,923 -1,013,932 -998,894
Derivatives -40,063 -104,909 -3,043
Total Covered Bonds 7,553,692 17,083,693 7,554,578
Lending to customers 6,110,149 14,913,063 7,273,742
Treasury Bills 671,048 1,612,305 246,487
Substitute collateral 1,097,150 645,817 320,762
Total Cover Pool 7,878,347 17,171,184 7,840,991
Asset-coverage 104,3 % 100,5 % 103,8 %
 

Note 17 Capital Adequacy

The primary goal for the Company's management of capital reserves is to ensure compliance with laws and regulatory requirements and maintain solid financial ratios and a high quality credit assessment in order to best support its business.  The Board of Directors have approved a target for the Company's risk weighted equity coverage of assets of 10%.

A new capital requirements directive was introduced in Norway as of January 1, 2007 (Basel II). SpareBank1 Boligkreditt AS obtained permission from the Financial Services Authority in Norway (Finanstilsynet) for the implementation of its own Internal Ratings Based (IRB) model for credit risks from the seond quarter of 2009. 

Transitional rules have been implemented by the FSA whereby regulated financial institutions with approved IRB models will not be able to fully benefit from the results of such models until the year 2018. Regulated entities are allowed to reduce by 20% the total sum of risk weighted assets which would otherwise have been in place under the previous Basel I framework.  In the following years until the end of 2017, the transitional rules will lead to significantly higher capital requirements than what would otherwise have been applicable under Basel II.

The European Union has approved new regulatory requirements, CRD IV.  The new regulations places more robust requirements on capital adequacy, capital structure, liquidity buffers and funding.  CRD IV is gradually introduced in Norway up until the end of 2016. The requirement of 12.5% total capital includes a 9% Core Tier 1 capital and 3.5% other capital.  The SpareBank 1 Boligkreditt AS Board of Directors is evaluating the capitalisation of the Company on a continous basis in accordance with the international development.

Capital. NOK 1 000 31.03.14 31.03.13 2013
 
Share capital 5,310,548 5,030,548 5,310,548
Premium share fund 2,657,922 2,517,922 2,657,922
Other equity capital 625,255 243,936 320,555
Total equity capital entered into the balance sheet 8,593,725 7,792,406 8,289,025
Intangible assets -2,612 -2,179 -3,002
Declared share dividend -319,630 -140,855 -302,105
50% deduction of expected losses exceeding loss provisions IRB -160,661 -160,514 -182,832
Core capital (Tier 1) 8,110,823 7,488,858 7,801,086
Tier 2 capital 1,600,000 - -
50% deduction of expected losses exceeding loss provisions IRB -160,661 - -
Total capital 9,550,162 7,488,858 7,801,086
 
Minimum requirements for capital according to Basel II i NOK 1 000 31.03.14 31.03.13 2013
Credit risk 2,932,525 1,783,718 1,846,418
Market risk 0 - -
Operational risk 35,713 27,797 27,797
Depreciation on groups of loans 0 - -
Difference in capital requirement due to the Basel I transitional floor 3,206,211 4,071,986 4,299,650
Minimum requirement for capital 6,174,449 5,883,501 6,173,865
 
Capital adequacy *
 
31.03.14 31.03.13 2013
Capital adequacy (%) 12,37 % 10,18 % 10,11 %
Tier 1 Capital Adequacy (%) 10,51 % 10,18 % 10,11 %
Core Tier 1 Capital Adequacy (%) 10,51 % 10,18 % 10,11 %
 

* The risk weighted total capital coverage was 12.37% and the requirement in effect since July 1. 2014 is 12.50% (including the additional buffer capital requirement) as of 31.03.2014. The capital coverage has increased since year-end 2013 in order to meet the requirements for higher capital buffers which were introduced from July 1. 2013. According to a previously existing plan some parent banks have repurchased a smaller part of their mortgage portfolio and as a consequence the total capital coverage was 12.50% from April 2. 2014. Dividends will be paid out after April 2. 2014.


Note 18 Related parties

Transactions with related parties
The Company has 175 315 MNOK loans to customers. These are acquired from shareholder banks at market value (i.e. nominal value).

SpareBank 1 SR-Bank ASA
The Company purchases a substantial amount of their support functions from SpareBank 1 SR-Bank ASA.
A complete SLA are established between the Company and SpareBank 1 SR-Bank ASA.

SpareBank 1 Alliance
In addition the Company has a Transfer and Servicing agreement in place with each individual shareholder bank regulating amongst other things the servicing of mortgage loans.

SpareBank 1 Næringskreditt AS
All employees within SpareBank 1 Boligkreditt AS are also to various degrees working for SpareBank 1 Næringskreditt AS.  In accordance with a Board decision in SpareBank 1 Næringskreditt dated 17.09.09 one third of the administrative expenses in SpareBank 1 Boligkreditt AS are to be charged to SpareBank 1 Næringskreditt AS. This division of administrative expenses between the two companies reflect the actual resources utilisation in SpareBank 1 Boligkredit AS.


Note 19 Contingencies

SpareBank 1 Boligkreditt AS is not a party to any ongoing legal proceedings.


Note 20 Collateral received

SpareBank 1 Boligkreditt has signed ISDA-agreements including CSAs (Credit Support Annexes) with a number of financial institutions that are counterparties in interest rate and currency swaps. These institutions post collateral in the form of cash deposits to SpareBank 1 Boligkreditt. At the year-end 31.03.2014 this collateral amounted to NOK 8 978 million. This amount is included in the balance sheet as a deposit, but represents restricted cash. 


Note 21 Events after Balance Sheet Date

According to a previously existing plan some parent banks have repurchased a smaller part of their mortgage portfolio and as a consequence the total capital coverage was 12.50% from April 2, 2014.