1st Quarterly Report 2023

Notes

 

Note 1 Accounting principles

1.1 Basis for preparation
SpareBank1 Boligkreditt AS quarterly accounts have been prepared in accordance with the International Financial Standards (IFRS). The accounts have been produced in accordance with IAS 34 reporting for a partial year. 

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.

The interim financial statements are not audited.

1.2 Segments
The Company has only one segment, which is the mortage lending to reail customers. The segment consists of lending to private individuals and all loans have been acquired from the member banks of the SpareBank 1 alliance.

1.3 Estimates and assessments regarding the use of accounting principles
The preparation of the financial information 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.

Note 2 Net Interest Income

NOK 1 000 31.03.2023 31.03.2022 2022
Interest income      
Interest income from certificates, bonds and deposits 255,674 64,397 538,839
Interest income from residential mortgage loans 2,737,556 1,244,057 6,664,550
Total interest income 2,993,230 1,308,454 7,203,389
       
Interest expense      
Interest expense and similar expenses to credit institutions 11,625 1,283 22,154
Interest expense and similar expenses on issued bonds 2,526,714 783,492 5,430,349
Interest expense and similar expenses on subordinated debt 17,821 9,588 50,230
Recovery and Resolution Fund * 12,896 12,048 52,246
Other interest expenses 176 1,414 4,413
Total interest expense 2,569,231 807,825 5,559,392
       
Net interest income 423,998 500,628 1,643,996

* From 2019, SB1 Boligkreditt has been incorporated into the Norwegian Bank Recovery and Resolution Fund.

Note 3 Commissions to SpareBank 1 banks

NOK 1 000 31.03.2023 31.03.2022 2022
Commission expense      
Commission expense to SpareBank 1 banks 282,904 415,628 1,249,440
Total commission expense 282,904 415,628 1,249,440

These amounts represent Boligkreditt’s expenses in form of commissions to its owner banks, which originate the mortgage loans transferred to the Company. The amounts are calculated by subtracting all of the Company’s funding costs and estimated operational costs, including costs for additional Tier 1 bonds outstanding, from each mortgage interest income.

Note 4 Net Gains from Financial Instruments

NOK 1 000 31.03.2023 31.03.2022 2022
Net gains (losses) from financial liabilities -3,085,423 10,303,525 15,955,802
Net gains (losses) from financial derivatives at fair value, hedging liabilities (hedging instrument) -8,037,019 -10,287,429 -16,331,646
Net gains (losses) from financial assets 11,091,721 -240,644 -206,058
Net gains (losses) from financial derivatives at fair value, hedging assets (hedging instrument) 111,069 130,674 293,956
Net gains (losses) 80,348 -93,874 -287,945

The Company utilizes hedge accounting as defined in IFRS for issued fixed rate bonds (covered bonds) with derivatives (swaps) which hedges fixed rates to floating and foreign currencies to Norwegian kroner. The hedges are individually tailored to each issued bond and exactly matches the cash flows and duration of the issued bonds.Some liabilities in foreign currency are hedged with natural hedges (corresponding assets in the same currency) and this may cause the valuation differences between assets and liabilities. There may also be valuation differences between liabilities and hedges due to the the amortization of issuance costs and bonds issued at or below par value.

SpareBank 1 Boligkreditt AS manages its liquidity risk by refinancing its outstanding bonds ahead of expected maturities and keeping proceeds as a liquidity portfolio. Fixed rate bonds and bonds in other currencies than Norwegian kroner are hedged using swaps, unless forming part of a natural hedge. These positions are valued at fair value though differences may occur because the valuation of the bonds include a credit risk/spread element which the swaps do not contain.Included in assets in the table are also investments in short term, highly rated bonds from funds received from swap counterparties for collateral purposes, with a corresponding collateral liability. Such investments do not have swap hegdes.

All derivatives are valued at fair value according to changes in market interest rates and foreign exchange rates. Changes in valuations from the previous period is accounted for in profit and loss.

Note 5 Salaries and Remuneration

NOK 1 000 31.03.2023 31.03.2022 2022
Salaries 3,051 2,934 11,060
Salaries reinvoiced to SpareBank1 Næringskreditt* -1,417 -934 -3,344
Pension expenses 3,285 1,189 2,643
Social insurance fees 706 640 2,779
Other personnel expenses 207 58 684
Total salary expenses 5,831 3,887 13,822
       
Average number of full time equivalents (FTEs) 7 7 7

* The company’s employees have shared employment between SpareBank 1 Næringskreditt and SpareBank 1 Boligkreditt. All remuneration is effectuated through SpareBank 1 Boligkreditt and a portion is reinvoiced to SpareBank 1 Næringskreditt. The company also buys administrative services from SpareBank 1 SMN and SpareBank 1 Utvikling, Oslo.

Note 6 Other Operating Expenses

NOK 1 000 31.03.2023 31.03.2022 2022
IT and IT operations 3,384 3,001 12,107
Purchased services other than IT 3,031 3,022 15,549
Other Operating Expenses 702 455 2,741
Depreciation on fixed assets and other intangible assets 30 20 78
Total 7,147 6,498 30,475

Note 7 Other Assets

NOK 1 000     31.03.2023 31.03.2022 2022
Leases     1,774 2,712 2,010
Fixed assets     144 222 163
Intangible assets     372 180 382
Accounts receivables from SpareBank 1 Næringskreditt AS     409 549 350
Accounts receivable, securities     716,630 1,971,900 66,970
Other     40,633 1,065 626
Total     759,962 1,976,628 70,500

Note 8 Residential mortage loans

Lending to customers are residential mortgages only. The mortgages generally have a low loan-to-value. The total amount of lending to customers at the end of 31.03.2023 were NOK 264 billion. All mortgages carry a variable interest rate.

NOK 1 000         31.03.2023 31.03.2022 2022
Revolving loans - retail market         41,131,250 38,105,364 41,935,854
Amortising loans - retail market         221,999,772 192,398,046 210,603,683
Accrued interest         443,286 202,530 396,931
Total loans before specified and unspecified loss provisions         263,574,309 230,705,941 252,936,468
               
Stage 1         253,300,307 222,724,696 243,051,062
Stage 2         10,274,001 7,981,245 9,885,406
Stage 3         - - -
Gross loans         263,574,309 230,705,941 252,936,468
               
Impairments on groups of loans              
Expected credit loss, stage 1         -9,901 -4,394 -10,584
Expected credit loss, stage 2, no objective proof of loss         -19,311 -12,146 -20,941
Expected credit loss, stage 3, objective proof of loss         - - -
Total net loans and claims with customers         263,545,096 230,689,401 252,904,944
               
Liability              
Unused balances under customer revolving credit lines (flexible loans)         13,556,595 12,829,529 14,090,508
Total         13,556,595 12,829,529 14,090,508
               
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.

Note 9 Share Capital and Shareholder Information

          List of shareholders as of 2023
          No of Shares in per cent Share og votes
SpareBank 1 SMN         17,635,629 22.62 % 22.62 %
SpareBank 1 Østlandet         17,484,191 22.42 % 22.42 %
SpareBank 1 Nord-Norge         12,145,623 15.58 % 15.58 %
SpareBank 1 Sørøst-Norge         9,496,225 12.18 % 12.18 %
BN Bank ASA         5,457,882 7.00 % 7.00 %
SpareBank 1 Østfold Akershus         3,778,299 4.85 % 4.85 %
SpareBank 1 Ringerike Hadeland         3,597,797 4.61 % 4.61 %
SpareBank 1 Nordmøre         2,309,810 2.96 % 2.96 %
SpareBank 1 Helgeland         1,957,985 2.51 % 2.51 %
SpareBank 1 Gudbrandsdal         1,216,092 1.56 % 1.56 %
SpareBank 1 Søre Sunnmøre         1,148,786 1.47 % 1.47 %
SpareBank 1 Hallingdal Valdres         1,040,179 1.33 % 1.33 %
SpareBank 1 Lom og Skjåk         703,651 0.90 % 0.90 %
Total         77,972,149 100 % 100 %

The share capital consists of 77.972.149 shares with a nominal value of NOK 100
The per cent share allocation and share of vote are identical.


Hybrid capital

NOK 1000 ISIN Interest rate Issued year Call option 31.03.2023 31.03.2022 2022
Perpetual              
Hybrid (Tier 1) NO0010811318 3M Nibor + 310 bp 2017 01.12.2022   100,000  
Hybrid (Tier 1) NO0010850621 3M Nibor + 340 bp 2019 30.04.2024 350,000 350,000 350,000
Hybrid (Tier 1) NO0010890825 3M Nibor + 300 bp 2020 26.08.2025 200,000 200,000 200,000
Hybrid (Tier 1) NO0010993009 3M Nibor + 250 bp 2021 06.05.2026 250,000 250,000 250,000
Hybrid (Tier 1) NO0012753591 3M Nibor + 390 bp 2022 16.11.2027 100,000   100,000
Book value         900,000 900,000 900,000

The issued bonds listed in the table abowe have status as Tier 1 capital instruments in the Company's capital coverage ratio.

Note 10 Liabilities incurred by issuing Securities

NOK 1 000       Nominal value* 31.03.2023 Nominal value* 31.03.2022 Nominal value* 2022
Senior unsecured bonds       500,000 - -
Repurchased senior unsecured bonds       - - -
Covered bonds       270,049,079 247,285,919 267,908,851
Repurchased Covered bonds       - -80,000 -
Total debt incurred by issuing securities       270,549,079 247,205,919 267,908,851

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

NOK 1 000       Book value 31.03.2023 Book value 31.03.2022 Book value 2022
Senior unsecured bonds       499,975 - -
Repurchased senior unsecured bonds       - - -
Covered bonds       274,092,023 243,202,219 259,999,992
Repurchased covered bonds       - -80,012 -
Activated costs incurred by issuing debt       -211,580 -211,639 -222,883
Accrued interest       1,217,315 717,096 1,071,448
Total debt incurred by issuing securities       275,597,731 243,627,664 260,848,557

Covered bonds

Due in 31.03.2023 31.03.2022 2022
2022 - 23,394,750 -
2023 15,746,804 30,487,050 26,120,200
2024 28,038,016 28,025,109 28,162,216
2025 36,257,494 37,713,750 37,713,750
2026 61,714,850 42,510,000 50,176,000
2027 54,103,105 22,683,910 39,843,585
2028 25,829,510 25,638,300 38,997,300
2029 25,676,300 25,257,550 25,462,800
2031 11,003,000 11,003,000 11,003,000
2032 9,937,500 - 9,937,500
2033 1,250,000 - -
2034 250,000 250,000 250,000
2038 242,500 242,500 242,500
Total 270,049,079 247,205,919 267,908,851

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

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

NOK 1 000       31.03.2023 31.03.2022 2022
NOK       116,040,775 93,619,889 104,077,916
EUR       145,475,746 131,234,646 143,669,469
GBP       3,164,364 8,547,256 2,873,911
SEK       8,637,988 8,245,784 8,087,303
CHF       2,278,858 1,980,090 2,139,958
Total       275,597,731 243,627,664 260,848,557

Note 11 Subordinated Debt

NOK 1000 ISIN Interest rate Issued year Call option from Maturity Nominal amount 31.03.2023 31.03.2022 2022
With maturity                  
                   
Subordinated debt (Tier 2) NO0010826696 3M Nibor + 153 bp 2018 22.06.2023 22.06.2028 250,000 250,000 250,000 250,000
Subordinated debt (Tier 2) NO0010833908 3M Nibor + 180 bp 2018 08.10.2025 08.10.2030 400,000 400,000 400,000 400,000
Subordinated debt (Tier 2) NO0010835408 3M Nibor + 167 bp 2018 02.11.2023 02.11.2028 475,000 475,000 475,000 475,000
Subordinated debt (Tier 2) NO0010842222 3M Nibor + 192 bp 2019 24.01.2024 24.01.2029 300,000 300,000 300,000 300,000
Accrued interest             11,639 6,504 11,805
Book value             1,436,639 1,431,504 1,436,805

The issued bonds listed in the table above have status as Tier 2 capital instruments in the Company's capital coverage ratio.


Note 12 Financial Derivatives

NOK 1 000 31.03.2023 31.03.2022 2022
Interest rate derivative contracts      
Interest rate swaps      
Nominal amount 25,759,615 38,024,919 31,562,031
Asset 475,360 449,117 348,546
Liability -1,660,820 -731,067 -1,788,128
       
Currency derivative contracts      
Currency swaps      
Nominal amount 129,315,850 147,419,225 136,856,600
Asset 8,970,276 1,837,966 3,358,118
Liability -3,524,585 -7,560,685 -10,034,376
       
Total financial derivative contracts      
Nominal amount 155,075,465 185,444,144 168,418,631
Asset 9,445,637 2,287,083 3,706,664
Liability -5,185,405 -8,291,753 -11,822,504

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

* Change due to basis swap spread adjustment 31.03.2023 31.03.2022 2022
Total asset(+)/liability(-) derivates 9,445,637 2,287,083 3,706,664
Net gain (loss) on valuation adjustment of basisswap spreads 186,433 110,818 283,423
Net asset(+)/liability(-) derivates 9,632,070 2,397,900 3,990,087

Basis swaps are currency swaps and are entered into at a certain cost (basis swap spread) between SpareBank 1 Boligkreditt and banks which offer such swaps and which have signed an ISDA agreement with the Company. Changes in the cost are valued each quarter across all of the Company's swaps in accordance with the IFRS rules. The effect may be material from quarter to quarter because the Company's portfolio of swaps is extensive. All basisswap value changes will reverse over time towards the point of termination of the swaps. Changes in basis swap valuations are not included in net income, but is included in other comprehensive income and in equity.


Note 13 Classification of Financial Instruments

NOK 1 000     Financial instruments accounted for at fair value Financial assets and debt accounted for at amortised cost 31.03.2023
           
Assets          
Lending to and deposits with credit institutions     - 2,377,752 2,377,752
Certificates and bonds     25,761,598 - 25,761,598
Residential mortgage loans     - 263,545,096 263,545,096
Financial derivatives     9,632,070 - 9,632,070
Other assets     - - -
Total Assets     35,393,668 265,922,848 301,316,516
           
Liabilities          
Debt incurred by issuing securities*     - 275,597,731 275,597,731
Collateral received in relation to financial derivatives     - 4,828,201 4,828,201
Financial derivatives     5,185,405 - 5,185,405
Deferred taxes     - - -
Taxes payable     - - -
Subordinated debt     - 1,436,639 1,436,639
Other liabilities     - - -
Total Liabilities     5,185,405 281,862,571 287,047,976
           
Total Equity     - 900,000 900,000
           
Total Liabilities and Equity     5,185,405 282,762,571 287,947,976

* For issued securities,178 billion are hedged with swaps. This means that foreign currency and fixed rate exposure is effectively converted to a 3 month NIBOR exposure in Norwegian kroner.

NOK 1 000     Financial instruments accounted for at fair value Financial assets and debt accounted for at amortised cost 31.03.2022
           
Assets          
Lending to and deposits with credit institutions     - 4,026,358 4,026,358
Certificates and bonds     27,784,216 - 27,784,216
Residential mortgage loans     - 230,689,401 230,689,401
Financial derivatives     2,397,900 - 2,397,900
Defered tax asset     - - -
Other assets     - - -
Total Assets     30,182,116 234,715,759 264,897,875
           
Liabilities          
Debt incurred by issuing securities*       243,627,664 243,627,664
Collateral received in relation to financial derivatives     - 340,877 340,877
Repurchase agreement     - - -
Financial derivatives     8,291,753 - 8,291,753
Taxes payable     - - -
Subordinated dept     - 1,431,504 1,431,504
Other liabilities     - - -
Total Liabilities     8,291,753 245,400,046 253,691,799
           
Total Equity     - 900,000 900,000
           
Total Liabilities and Equity     8,291,753 246,300,046 254,591,799

* For issued securities, 173 billion are hedged with swaps. This means that foreign currency and fixed rate exposure is effectively converted to a 3 month NIBOR exposure in Norwegian kroner.



Note 14 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:

Level 1: Quoted price in an active market.  Fair value of financial instruments which are traded in active markets are based on the market price at the balance sheet date. A market is considered to be active if the market prices are easily and readily available from an exchange, dealer, broker, industry group, pricing service or regulating authority and that these prices represent actual and regular market transactions on an arm's length basis.

Level 2: Valuation based on observable factors.  Level 2 consist of instruments which are not valued based on listed prices, but where prices are indirectly observable for assets or liabilities, but also includes listed prices in not active markets.

Level 3: The valuation is based on factors that are not found in observable markets (non-observable assumptions).  If valuations according to Level 1 or Level 2 are not available, valuations are based on not-observable information.  The Company has a matter of principle neither assets nor liabilities which are valued at this level.

The following table presents the company’s assets and liabilities at fair value as of 31.03.2023

NOK 1 000       Level 1 Level 2 Level 3 Total
Certificates and bonds       25,761,598 - - 25,761,598
Financial Derivatives       - 9,632,070 - 9,632,070
Total Assets       25,761,598 9,632,070 - 35,393,668
               
Financial Derivatives       - 5,185,405 - 5,185,405
Total Liabilities       - 5,185,405 - 5,185,405

Issued debt is formally accounted for at amortized cost, and is therefore not listed in the table above.  However, when issued debt is hedged with derivatives it is in effect accounted for using hedge accounting and fair value option.  This means that approximately NOK 178 billion of issued debt are also accounted for according to Level 2 above, while the remaining debt are accounted for at amortized cost.  

The following table presents the company’s assets and liabilities at fair value as of 31.03.2022

NOK 1 000       Level 1 Level 2 Level 3 Total
Certificates and bonds       27,784,216 - - 27,784,216
Financial Derivatives       - 2,397,900 - 2,397,900
Total Assets       27,784,216 2,397,900 - 30,182,116
               
Financial Derivatives       - 8,291,753 - 8,291,753
Total Liabilities       - 8,291,753 - 8,291,753

Issued debt is formally accounted for at amortized cost, and is therefore not listed in the table above.  However, when issued debt is hedged with derivatives it is in effect accounted for using hedge accounting and fair value option.  This means that approximately NOK 173 billion of issued debt are also accounted for according to Level 2 above, while the remaining debt are accounted for at amortized cost. 

              


Note 15 Other Liabilities

NOK 1 000 31.03.2023 31.03.2022 2022
Employees tax deductions and other deductions 475 415 653
Employers national insurance contribution 826 652 1,071
Accrued holiday allowance 1,561 1,444 1,223
Commission payable to shareholder banks 120,969 131,886 39,576
Deposits* 1,636 142 4,646
Pension liabilities 2,784 4,181 2,784
Expected credit loss unused credit lines (flexible loans) 233 85 231
Accounts payable, secutities 786,892 361,128 73,863
Other accrued costs 6,609 91,782 5,731
Total 921,986 591,714 129,777

The Company does not have an overdraft facility or a revolving credit facility as of 31.03.2023
* Deposits represents temporary balances paid in by customers in excess of the original loan amount.
Accounts payable, securities, are such amounts that have been transacted, but not yet settled.


Note 16 Asset Coverage Test

The asset coverage is calculated according to the Financial Services Act § 2-31 (Covered Bond Legislation). The asset coverage test excludes as a cover pool asset any shares of mortgages representing loan to value above the legal maximum of 75 percent.

In addition any defaulted loans, i.e. loans in arrears at or beyond 90 days, are excluded from the asset coverage. Substitute (liquid) assets are included at market values.

NOK 1 000         31.03.2023 31.03.2022 2022
Covered Bonds         270,636,939 249,526,870 268,270,136
Total Covered Bonds         270,636,939 249,526,870 268,270,136
Residential mortgage loans         262,859,502 230,069,464 252,333,523
Public sector, SSA bond exposure         2,842,179 5,253,757 6,726,165
Reverse repo/ depo less than 100 days         163,133 3,845,055 620,438
Exposure to credit institutions (covered bonds)         19,232,415 21,986,974 22,776,142
Derivatives         - 2,231,735 -
Total Cover Pool         285,097,229 257,015,500 282,456,268
Asset-coverage         105.34 % 103.00 % 105.29 %
Liquidity Coverage Ratio (LCR)         31.03.2023 31.03.2022 2022
Liquid assets         3,666,279 6,519,795 4,866,972
Cash outflow next 30 days         3,507,950 1,102,523 4,854,322
LCR ratio         104.51 % 591.35 % 100.26 %
Net Stable Funding Ratio (NSFR)         31.03.2023 31.03.2022 2022
Available amount of stable funding         273,104,692 229,165,637 247,275,503
Required amount of stable funding         226,365,654 236,001,463 217,645,930
NSFR ratio         120.65 % 97.10 % 113.61 %

Note 17 Capital Adequacy

The primary goal for the Company's management of capital reserves is to ensure compliance with laws and regulatory requirements. The company's owner banks pay in additional core capital on an as-needed basis (related to the amount of mortgages transferred), according to the covered bond funding function that Boligkreditt delivers to its banks.

As of December 31, 2020 the Norwegian national implementation of the EU's CRR/CRD IV was amended, which means that the average risk weight on lending secured by residential property in Norway cannot be lower than 20 per cent.

The European Union has approved new regulatory requirements, CRD IV, which is implemented in Norway. The requirements for capital for SpareBank 1 Boligkreditt are:

  • Minimum core equity Pillar 1: 4.5 per cent. 
  • Additional Tier 1 equity capital 1.5 per cent and additiponal Tier 2 capital 2.0 per cent (can be held as Tier 1 and Tier 2, alternatively as core equity capital).
  • Conservation buffer: 2.5 per cent core capital.
  • Systemic risk buffer: 4.3 per cent core.
  • Countercyclical buffer: 2.5 per cent core equity.

The Issuer has an additional Pillar 2 requirement which is 0.9 per cent core equity capital. The total requirement for the Issuer is therefore to have capital of minimum 18.2 percent of risk weighted assets. With a management buffer added, the target for capital coverage is 18.6 per cent as of March 31, 2023.

The Company's parent banks have committed themselves to keep the Company's Equity Tier 1 capital at the minimum regulatory level (in the Shareholders Agreement). Primarily this commitment is pro rata according to the ownership stakes in the Company, but it is a joint undertaking if one or more ownership banks are unable to comply up to the maximum of twice the initial pro rata amount. 
 

Capital. NOK 1 000 31.03.2023 31.03.2022 2022
Share capital 7,797,215 7,797,215 7,797,215
Premium share fund 3,901,255 3,901,255 3,901,255
Other equity capital 132,385 63,014 219,917
Common equity 11,830,855 11,761,484 11,918,387
Intangible assets -192 - -
Declared share dividend - - -
100% deduction of expected losses exceeding loss provisions IRB (CRD IV) -483,226 -433,955 -466,460
Prudent valuation adjustment (AVA) -25,762 -27,784 -29,426
Deferred taxes - -33,970 -
Core equity capital 11,321,676 11,265,775 11,422,501
Hybrid bond 900,000 900,000 900,000
Tier 1 equity capital 12,221,676 12,165,775 12,322,501
Supplementary capital (Tier 2) 1,425,000 1,425,000 1,425,000
Total capital 13,646,676 13,590,775 13,747,501
Risk-weighted assets. NOK 1 000 31.03.2023 31.03.2022 2022
Credit risk IRB      
First lien residential mortgages 55,511,707 48,914,072 53,524,365
Total credit risk IRB 55,511,707 48,914,072 53,524,365
       
Credit risk standardised approach      
Derivatives and exposures to credit institutions 3,855,569 1,948,080 2,296,985
Covered bonds 1,960,135 2,377,067 2,268,951
Regional governments or local authorities 394,796   334,177
Other items 226,096 105,993 201,996
Total credit risk standardised approach 6,436,596 4,431,141 5,102,109
       
Market risk - - -
Operational risk 174,178 310,416 174,178
CVA Risk 5,013,334 1,857,744 3,200,335
Total risk-weighted assets 67,135,814 55,513,372 62,000,988
Capital coverage 31.03.2023 31.03.2022 2022
Capital coverage (requirement w/all buffers, 18.2%) 20.33 % 24.48 % 22.17 %
Tier 1 capital coverage (requirement w/all buffers, 16.2%) 18.20 % 21.92 % 19.87 %
Core capital coverage (requirement w/all buffers, 14.7%) 16.86 % 20.29 % 18.42 %
Leverage ratio (requirement 3.0%) 4.01 % 4.52 % 4.20 %

Note 18 Related parties

The Company has 263.545 MNOK loans to customers. These are loans acquired from shareholder banks at market values (i.e. nominal value).

SpareBank 1 SMN
The Company acquires significant support services, including accounting services, back-office and other banking services from SpareBank 1 SMN.  These services were previously purchased from SpareBank SR Bank. A complete SLA is established between the Company and SpareBank 1 SMN.

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.  Twenty percent of the administrative expenses in SpareBank 1 Boligkreditt AS 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 Boligkreditt AS


Note 19 Collateral received

NOK 1 000 31.03.2023 31.03.2022 2022
       
Collateral 4,828,201 340,877 714,730
Total 4,828,201 340,877 714,730

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. The amount is included in the balance sheet, but represents restricted cash.