Financial statements

Income Statement

NOK 1 000	Note	01.01.2017 - 31.03.2017	01.01.2016 - 31.03.2016	2016

Total interest income	2	937,419	958,801	3,797,962
Total interest expenses	2	-847,140	-846,342	-3,386,965
Net interest income		90,278	112,459	410,997

Net gains/losses from financial instruments	3	-250,917	34,927	-521,993
Net other operating income		-250,917	34,927	-521,993

Total operating income		-160,639	147,386	-110,996

Salaries and other ordinary personnel expenses	4	-3,389	-3,100	-11,409
Administration expenses	5	-2,555	-2,722	-10,247
Other operating expenses	6	-2,335	-1,635	-12,315
Depreciation on fixed assets and other intangible assets		-246	-400	-1,367
Total operating expenses		-8,525	-7,857	-35,338

Operating result before losses		-169,164	139,529	-146,334
Write-downs on loans and guarantees			0	0
Pre-tax operating result		-169,164	139,529	-146,334

Taxes		42,291	-34,882	36,583
Profit/loss for the year		-126,873	104,647	-109,751

Overview of Comprehensive Income

NOK 1 000	01.01.2017 - 31.03.2017	01.01.2016 - 31.03.2016	2016

Profit/loss for the year	-126,873	104,647	-
Items which will not impact the income statement in future periods:
Change in pensions for a previous period
Estimate deviation for pensions	-	-	-1,054
Tax effect of the estimate deviation	-	-	264
Total profit/loss accounted for in equity	-	-	-791
Total profit/loss	-126,873	104,647	-791

Balance Sheet

NOK 1 000	Note	31.03.2017	31.03.2016	2016

Assets
Lending to and deposits with credit institutions	13	8,251,587	11,442,842	8,129,096
Norwegian Government Treasury Bills	13	395,059	2,833,598	1,948,409
Bonds	13	39,834,119	45,244,165	40,558,209
Lending to customers	8	175,654,209	172,626,527	174,463,203
Financial derivatives	12	25,160,358	36,047,126	27,150,388
Defered tax asset		3,005	0	0
Other assets	7	1,703	2,571	1,543
Total assets		249,300,040	268,196,829	252,250,848

Liabilities and equity
Liabilities
Debt incurred by issuing securities	10	212,822,181	220,439,708	213,056,583
Collateral received under derivatives contracts	20	22,005,476	34,494,554	24,304,397
Financial derivatives	12	1,514,308	428,169	1,781,221
Deferred tax		208,816	370,561	208,816
Tax payable		124,898	34,882	124,898
Subordinated debt	11	1,603,633	2,434,192	1,603,778
Other Liabilities	16	104,359	152,245	117,865
Total Liabilities		238,383,671	258,354,310	241,197,558

Equity
Paid-in equity		9,708,470	9,258,470	9,498,470
Other paid-in equity (not yet registered)		0	0	210,000
Hybrid capital		1,070,986	0	1,081,034
Accrued equity		149,836	374,328	149,836
Net profit		-126,873	104,647	0
Declared dividends		113,950	105,074	113,950
Total equity		10,916,369	9,842,519	11,053,290

Total liabilities and equity		249,300,040	268,196,829	252,250,848

Changes in Equity

NOK 1 000	Share capital	Additional paid in equity	Dividend	Other paid-in equity (not yet registered)	Other Equity	Hybrid capital	Total Equity

Balance as of 31 December 2015	5,710,548	2,857,922	105,074	690,000	374,328	-	9,737,872
Registration of share increase (from 22 December 2015)	460,000	230,000	-	-690,000	-	-	-
Dividend 2015	-	-	-105,074	-	-	-	-105,074
Share increase 29 June 2016	160,000	80,000	-	-	-	-	240,000
Share increase 28 December 2016 (not yet registered)	-	-	-	210,000	-	-	210,000
Net income for the period *	-	-	-	-	-109,751	-	-109,751
Proposed dividend for 2016	-	-	113,950	-	-113,950	-	-
OCI - pension - annual estimate deviation	-	-	-	-	-791	-	-791
Reclassification of hybrid capital as of 31 December 2016	-	-	-	-	-	1,081,034	1,081,034
Balance as of 31 December 2016	6,330,548	3,167,922	113,950	210,000	149,836	1,081,034	11,053,290
Registration of share increase (from 28 December 2016)	140,000	70,000	-	-210,000	-	-	-
Net income for the period	-	-	-	-	-126,873	-	-126,873
Paid interest on hybrid capital	-	-	-	-	-	-13,053	-13,053
Tax on hybrid capital. directly against equity	-	-	-	-	-	3,005	3,005
Balance as of 31 March 2017	6,470,548	3,237,922	113,950	-	22,963	1,070,986	10,916,369

Equity is paid in by the Company's parent banks when a requirement arises. The requirement arises regularly when the Company acquires larger portfolios of mortgage loans, and otherwise according to changes in capitalization rules because SpareBank 1 Boligkreditt is subject to the same capital adequacy rules under Pillar 1 as banks in general. Each parent bank has also signed a Shareholders agreement with the Company, which amongst other things stipulates when additional capital must be contributed.

All hybrid instruments have been reclassified to equity from 31.12.2016. This is according to the definition of a financial liability under IAS 32.

Cash Flow Statement

NOK 1 000	31.03.2017	31.03.2016	2016

Cash flows from operations
Interest received	1,553,571	1,374,833	3,858,846
Paid expenses. operations	-37,902	-9,506	-36,469
Paid tax	0	0	0
Net cash flow relating to operations	1,515,669	1,365,327	3,822,377

Cash flows from investments
Net purchase of loan portfolio	-1,184,074	-3,287,075	-5,128,140
Net payments on the acquisition of government bills	1,614,848	5,868,257	6,685,763
Net payments on the acquisition of bonds	875,577	-4,567,902	-495,538
Net investments in intangible assets	-35	-1,054	-732
Net cash flows relating to investments	1,306,316	-1,987,774	1,061,353

Cash flows from funding activities
Net receipt/payment from the issuance of certificates	277,976	0	949,966
Net receipt/payment from the issuance of bonds	897,863	6,292,347	8,296,329
Net receipt/payment from the issuance of subordinated debt	0	0	250,000
Net receipt/payment of loans to credit institutions	-2,426,861	-945,706	-11,329,904
Equity capital subscription	0	0	450,000
Paid dividend	0	0	-105,074
Net interest payments on funding activity	-1,460,205	-1,331,798	-3,396,582
Net cash flow relating to funding activities	-2,711,227	4,014,844	-4,885,266

Net cash flow in the period	110,759	3,392,397	-1,535

Balance of cash and cash equivalents at beginning of period	8,129,096	8,083,543	8,083,543

Net receipt/payments on cash	110,759	3,392,397	-1,535
Exchange rate difference	11,731	-33,098	47,089
Balance of cash and cash equivalents at end of period	8,251,587	11,442,842	8,129,096