Financial statements

Income Statement

NOK 1 000             Note 2. quarter 2020 2. quarter 2019 30.06.2020 01.01.19- 30.06.2019 2019
                         
Total interest income             2 1,249,912 1,042,088 2,881,310 2,654,088 5,834,356
Total interest expense             2 -878,527 -917,711 -2,030,278 -1,758,100 -3,958,307
Net interest income               371,385 124,376 851,032 895,988 1,876,049
                         
Commission and fee expense               -244,043 -354,035 -602,060 -669,597 -1,444,292
Net commission income               -244,043 -354,035 -602,060 -669,597 1,444,292
                         
Net gains/losses from financial instruments             3 171,895 -49,926 -111,893 -34,536 -171,295
Net other operating income               171,895 -49,926 -111,893 -34,536 -171,295
                         
Total operating income               299,237 74,450 137,079 191,855 260,462
                         
Salaries and other ordinary personnel expense             4 -1,935 -2,506 -5,089 -5,340 -11,780
Other operating expense             5 -7,945 -5,820 -14,739 -11,163 -24,359
Total operating expenses               -9,880 -8,325 -19,828 -16,504 -36,139
                         
Operating result before losses               289,358 66,125 117,250 175,352 224,323
Impairment losses on loans               -10,905 136 -20,141 -2,098 856
Pre-tax operating result               278,452 66,261 97,109 173,253 225,179
                         
Taxes               -65,753 -16,565 -16,267 -43,313 -56,298
Profit/loss for the year               212,699 49,695 80,843 129,940 168,880
                         
                         
Portion attrubutable to shareholders               197,259 38,817 48,800 108,610 123,796
Portion attributable to additional Tier 1 capital holders               15,441 10,878 32,043 21,330 45,084
Profit/loss for the period               212,699 49,695 80,843 129,940 168,880

Overview of Comprehensive Income

NOK 1 000               2. quarter 2020 2. quarter 2019 01.01.2020 - 30.06.2020 01.01.19- 30.06.2019 2019
Profit/loss for the year               212,699 49,695 80,843 129,940 168,880
Items which will not impact the income statement in future periods:               -        
Change due to basis swap spread adjustment               45,803 117,184 149,571 -37,389 -74,707
Tax effect of basis swap spread adjustment               -11,451 -29,296 -37,393 9,347 18,677
Change in pensions for a previous period               -        
Estimate deviation for pensions               - - - - -353
Tax effect of the estimate deviation               - - - - 88
Total profit/loss accounted for in equity               34,353 87,888 112,178 -28,042 -56,294
Total profit/loss               247,052 137,583 193,021 101,898 112,586

Balance Sheet 2020

NOK 1 000                   30.06.2020 30.06.2019 2019
                         
Assets                        
Lending to and deposits with credit institutions                 12 8,926,842 4,519,102 9,801,250
Certificates and bonds                 12,13 28,950,758 29,554,116 28,067,101
Residential mortage loans                 7,12 202,356,280 190,606,858 191,309,342
Financial derivatives                 11,12,13 28,051,937 17,829,896 16,254,454
Defered tax asset                 12 164,031 7,110 188,308
Other assets                 6,12 4,479,081 1,040 890
Total assets                   272,928,929 242,518,121 245,621,345
                         
Liabilities and equity                        
Liabilities                        
Debt incurred by issuing securities                 9,12,13 233,899,764 214,370,809 217,670,078
Collateral received under derivatives contracts                 12,18 20,469,422 12,625,416 12,418,140
Repurchase agreement                 12 2,507,625 553,863 -
Financial derivatives                 11,12,13 734,333 1,030,359 1,420,374
Deferred tax                 12 37,393 30,029 -
Tax payable                 12 226,673 - 250,190
Subordinated debt                 10,12 1,430,788 1,432,458 1,433,439
Other Liabilities                 12,14 1,271,651 181,253 148,256
Total Liabilities                   260,577,649 230,224,187 233,340,477
                         
Equity                        
Paid-in equity                 12 11,418,470 11,418,470 11,418,470
Other paid-in equity (not yet registered)                 12 - - -
Hybrid capital                 8,12 1,180,000 1,180,000 1,180,000
Accrued equity                 12 -328,033 -434,476 -408,167
Net profit                 12 80,843 129,940  
Declared dividends                 12 - - 90,566
Total equity                   12,351,280 12,293,934 12,280,868
                         
Total liabilities and equity                   272,928,929 242,518,121 245,621,345

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 2018         7,190,548 3,597,922 - - -306,173 -78,932 1,180,000 11,583,366
Change in presentation of interest on hybrid capital         - - - - -78,932 78,932   -
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         - - - - 33,231 45,084 - 78,315
Paid interest on hybrid capital - directly against equity         - - - - - -45,084 - -45,084
OCI -basisswapspread         - - - - -56,030 - - -56,030
Proposed dividend for 2019         - - - - 90,566 - - 90,566
OCI - pension - annual estimate deviation         - - -   -264 - - -264
Balance as of 31 December 2019         7,610,548 3,807,922 - - -317,603 - 1,180,000 12,280,868
Net income for the period         - - - - 80,843 -32,043 - 48,800
Paid interest on hybrid capital - directly against equity         - - - - -32,043 32,043 - -
OCI -basisswapspread         - - - - 112,178     112,178
Dividend 2019         - - - - -90,566     -90,566
Balance as of 31 June, 2020         7,610,548 3,807,922 - - -247,190 - 1,180,000 12,351,280

 

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           30.06.2020 30.06.2019 2019
                 
Cash flows from operations                
Interest received           2,202,869 2,348,453 4,790,476
Paid expenses, operations           -87,171 -28,477 -39,009
Paid tax           -250,190 -15,503 -15,503
Net cash flow relating to operations           1,865,507 2,304,472 4,735,964
                 
Cash flows from investments                
Net purchase of loan portfolio           -11,046,938 -6,514,251 -7,189,127
Net payments on the acquisition of government bills           30,218 299,574 -575,312
Net payments on the acquisition of bonds           -913,876 -5,141,911 -3,042,017
Net investments in intangible assets             153 153
Net investments in fixed assets           -385    
Net cash flows relating to investments           -11,930,980 -11,356,435 -10,806,303
                 
Cash flows from funding activities                
Net receipt/payment from the issuance of securities           3,747,632 7,436,101 12,608,151
Net receipt/payment from the issuance of subordinated debt           0 175,000 -175,000
Net receipt/payment of collateral received under derivatives contracts           7,709,219 -5,547,447 -5,938,817
Equity capital subscription           0 630,000 630,000
Paid dividend           -90,566 0 0
Net interest payments on funding activity           -2,189,379 -2,106,277 -4,241,013
Net cash flow relating to funding activities           9,176,906 587,378 2,883,320
                 
Net cash flow in the period           -888,567 -8,464,585 -3,187,019
                 
Balance of cash and cash equivalents at beginning of period           9,801,250 12,990,004 12,990,004
                 
Net receipt/payments on cash           -888,567 -8,464,585 -3,187,019
Exchange rate difference           14,159 -6,317 -1,735
                 
Balance of cash and cash equivalents at end of period           8,926,842 4,519,102 9,801,250

* To compare with the balanse sheet see Note 18 Reconciliation of liabilities arising from financing activities.