--- title: Financial statements --- ## Income Statement | NOK 1 000 | Note | 2. quarter 2019 | 2. quarter 2018 | 01.01.2019 - 30.06.2019 | 01.01.2018 - 30.06.2018 | 2018 | | --- | --- | --- | --- | --- | --- | --- | |   | | | | | | | | Total interest income | 2 | 1,042,088 | 913,860 | 1,984,491 | 1,718,795 | 3,577,766 | | Total interest expenses | 2 | -917,711 | -821,721 | -1,758,100 | -1,542,478 | -3,244,627 | | Net interest income |   | 124,376 | 92,139 | 226,391 | 176,317 | 333,139 | |   | | | | | | | | Net gains/losses from financial instruments | 3 | -49,926 | -125,375 | -34,536 | -166,560 | -293,531 | | Net other operating income |   | -49,926 | -125,375 | -34,536 | -166,560 | -293,531 | |   | | | | | | | | Total operating income |   | 74,450 | -33,236 | 191,855 | 9,757 | 39,608 | |   | | | | | | | | Salaries and other ordinary personnel expenses | 4 | -2,506 | -2,860 | -5,340 | -6,140 | -11,766 | | Other operating expenses | 5 | -5,820 | -4,901 | -11,163 | -9,938 | -20,490 | | Total operating expenses |   | -8,325 | -7,761 | -16,504 | -16,077 | -32,256 | |   | | | | | | | | Operating result before losses |   | 66,125 | -40,997 | 175,352 | -6,321 | 7,352 | |   | | | | | | | | Write-downs on loans and guarantees |   | 136 | -665 | -2,098 | -601 | -849 | | Pre-tax operating result |   | 66,261 | -41,662 | 173,253 | -6,922 | 6,503 | |   | | | | | | | | Taxes |   | -16,565 | 10,416 | -43,313 | 1,730 | -1,627 | | Profit/loss for the year |   | 49,695 | -31,247 | 129,940 | -5,191 | 4,876 | |   | | | | | | | | Portion attrubutable to shareholders |   | 38,817 | -41,908 | 108,610 | -25,727 | -36,928 | | Portion attributable to additional Tier 1 capital holders |   | 10,878 | 10,661 | 21,330 | 20,536 | 41,804 | | Profit/loss for the period |   | 49,695 | -31,247 | 129,940 | -5,191 | 4,876 | --- ## Overview of Comprehensive Income |   | NOK 1 000 | 2. quarter 2019 | 2. quarter 2018 | 01.01.2019 - 30.06.2019 | 01.01.2018 - 30.06.2018 | 2018 | | --- | --- | --- | --- | --- | --- | --- | |   | | | | | | | | Profit/loss for the year |   | 49,695 | -31,247 | 129,940 | -5,191 | 26,055 | | Items which will not impact the income statement in future periods: |   |   |   |   |   |   | | Change due to basis swap spread adjustment |   | 117,184 | -108,600 | -37,389 | -94,928 | -280,245 | | Tax effect of basis swap spread adjustment |   | -29,296 | 27,150 | 9,347 | 23,732 | 70,061 | | Change in pensions for a previous period |   |   |   |   |   |   | | Estimate deviation for pensions |   | - | 0 | - | - | 5,468 | | Tax effect of the estimate deviation |   | - | 0 | - | - | -1,367 | | Total profit/loss accounted for in equity |   | 87,888 | -81,450 | -28,042 | -71,196 | -206,083 | | Total profit/loss |   | 137,583 | -112,696 | 101,898 | -76,387 | -180,028 | --- ## Balance Sheet | NOK 1 000 |   |   | Note | 30.06.2019 | 30.06.2018 | 2018 | | --- | --- | --- | --- | --- | --- | --- | |   | | | | | | | | Assets |   |   |   |   |   |   | | Lending to and deposits with credit institutions |   |   | 12 | 4,519,102 | 9,270,163 | 12,990,004 | | Certificates and bonds |   |   | 12,13 | 29,554,116 | 43,651,308 | 25,271,910 | | Residential mortage loans |   |   | 7,12 | 190,606,858 | 182,852,976 | 184,073,918 | | Financial derivatives |   |   | 11,12,13 | 17,829,896 | 17,220,292 | 23,183,793 | | Defered tax asset |   |   | 12 | 7,110 | 6,573 | - | | Other assets |   |   | 6,12 | 1,040 | 1,897 | 1,750 | | Total assets |   |   |   | 242,518,121 | 253,003,210 | 245,521,375 | |   | | | | | | | | Liabilities and equity |   |   |   |   |   |   | | Liabilities |   |   |   |   |   |   | | Debt incurred by issuing securities |   |   | 9,12,13 | 214,370,809 | 225,077,253 | 212,351,045 | | Collateral received under derivatives contracts |   |   | 12,18 | 12,625,416 | 13,203,305 | 18,733,053 | | Repurchase agreement |   |   | 12 | 553,863 | - | - | | Financial derivatives |   |   | 11,12,13 | 1,030,359 | 1,225,000 | 1,042,108 | | Deferred tax |   |   | 12 | 30,029 | 112,902 | 39,377 | | Tax payable |   |   | 12 | - | - | 15,503 | | Subordinated debt |   |   | 10,12 | 1,432,458 | 1,603,084 | 1,606,160 | | Other Liabilities |   |   | 12,14 | 181,253 | 130,959 | 150,763 | | Total Liabilities |   |   |   | 230,224,187 | 241,352,503 | 233,938,010 | |   | | | | | | | | Equity |   |   |   |   |   |   | | Paid-in equity |   |   | 12 | 11,418,470 | 10,398,470 | 10,788,470 | | Other paid-in equity (not yet registered) |   |   | 12 | - | 240,000 | - | | Hybrid capital |   |   | 8,12 | 1,180,000 | 1,180,000 | 1,180,000 | | Accrued equity |   |   | 12 | -434,476 | -234,848 | -389,980 | | Net profit |   |   | 12 | 129,940 | -5,191 | 4,876 | | Declared dividends |   |   | 12 | - | 72,276 | - | | Total equity |   |   |   | 12,293,934 | 11,650,707 | 11,583,366 | |   | | | | | | | | Total liabilities and equity |   |   |   | 242,518,121 | 253,003,210 | 245,521,375 | --- ## Changes in Equity | NOK 1 000 | Share capital | Additional paid in equity | Dividend | Other paid-in equity (not yet registered) | Other Equity | Interest on hybrid capital | Hybrid capital | Total Equity | | --- | --- | --- | --- | --- | --- | --- | --- | --- | |   | | | | | | | | | | Balance as of 31 December 2017 | 6,570,548 | 3,287,922 | 72,276 | 300,000 | -101,894 | -37,127 | 1,180,000 | 11,271,724 | | Change in losses due to new IFRS 9 measurment | - | - | - | - | -3,071 | - | - | -3,071 | | Registration of share increase (from 27 December 2017) | 200,000 | 100,000 | - | -300,000 | - | - | - | - | | Share increase 28 February 2018 | 160,000 | 80,000 | - | - | - | - | - | 240,000 | | Share increase 11 May 2018 | 160,000 | 80,000 | - | - | - | - | - | 240,000 | | Dividend 2017 | - | - | -72,276 | - | - | - | - | -72,276 | | Share increase September 27 | 100,000 | 50,000 | - | - | - | - | - | 150,000 | | Net income for the period | - | - | - | - | 4,876 | - | - | 4,876 | | Paid interest on hybrid capital - directly against equity | - | - | - | - | - | -41,804 | - | -41,804 | | OCI -basisswapspread | - | - | - | - | -210,184 | - | - | -210,184 | | Proposed dividend for 2018 | - | - | - | - | - | - | - | - | | OCI - pension - annual estimate deviation | - | - | - | - | 4,101 | - | - | 4,101 | | Balance as of 31 December 2018 | 7,190,548 | 3,597,922 | - | - | -306,173 | -78,932 | 1,180,000 | 11,583,366 | | Share increase 27 February 2019 | 280,000 | 140,000 | - | - | - | - | - | 420,000 | | Share increase 22 May 2019 | 140,000 | 70,000 |   |   |   |   |   | 210,000 | | Net income for the period | - | - | - | - | 129,940 | - | - | 129,940 | | Paid interest on hybrid capital - directly against equity | - | - | - | - | - | -21,330 | - | -21,330 | | OCI -basisswapspread | - | - | - | - | -28,042 | - | - | -28,042 | | Balance as of 30 June 2019 | 7,610,548 | 3,807,922 | - | - | -204,275 | -100,262 | 1,180,000 | 12,293,934 |   *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.*   --- ## Cash Flow Statement | NOK 1 000 | 30.06.2019 | 30.06.2018 | 2018 | | --- | --- | --- | --- | |   | | | | | Cash flows from operations |   |   |   | | Interest received | 2,348,453 | 2,219,481 | 3,787,762 | | Paid expenses. operations | -28,477 | -18,509 | -59,111 | | Paid tax | -15,503 | 0 | 0 | | Net cash flow relating to operations | 2,304,472 | 2,200,972 | 3,728,652 | |   | | | | | Cash flows from investments |   |   |   | | Net purchase of loan portfolio | -6,514,251 | -5,188,946 | -6,392,387 | | Net payments on the acquisition of government bills | 299,574 | 987,566 | 1,163,310 | | Net payments on the acquisition of /sale of bonds | -5,141,911 | 8,576,280 | 27,522,971 | | Net investments in intangible assets | 153 | -839 | -897 | | Net cash flows relating to investments | -11,356,435 | 4,374,062 | 22,292,996 | |   | | | | | Cash flows from funding activities |   |   |   | | Net receipt/payment from the issuance of certificates | 0 | -120,999 | -120,999 | | Net receipt/payment from the issuance of bonds | 7,436,101 | 11,039,537 | -8,347,785 | | Net receipt/payment from the issuance of subordinated debt | 175,000 | 0 | 0 | | Net receipt/payment of loans to credit institutions | -5,547,447 | -9,897,394 | -4,901,801 | | Equity capital subscription | 630,000 | 480,000 | 630,000 | | Paid dividend | 0 | 0 | -72,276 | | Net interest payments on funding activity | -2,106,277 | -1,862,718 | -3,267,854 | | Net cash flow relating to funding activities | 587,378 | -361,573 | -16,080,715 | |   | | | | | Net cash flow in the period | -8,464,585 | 6,213,460 | 9,940,933 | |   | | | | | Balance of cash and cash equivalents at beginning of period | 12,990,004 | 3,044,644 | 3,044,644 | | Net receipt/payments on cash | -8,464,585 | 6,213,460 | 9,940,933 | | Exchange rate difference | -6,317 | 12,059 | 4,427 | | Balance of cash and cash equivalents at end of period | 4,519,102 | 9,270,163 | 12,990,004 | ---