--- title: Financial statements --- ## Income Statement | NOK 1 000 | Note | 3. quarter 2016 | 3.quarter 2015 | 01.01.2016 - 30.09.2016 | 01.01.2015 - 30.09.2015 | 2015 | | --- | --- | --- | --- | --- | --- | --- | |   | | | | | | | | Total interest income | 2 | 942,275 | 953,317 | 2,825,648 | 2,946,021 | 3,879,909 | | Total interest expenses | 2 | -839,655 | -840,875 | -2,503,250 | -2,634,592 | -3,473,052 | | Net interest income |   | 102,620 | 112,442 | 322,398 | 311,429 | 406,857 | |   | | | | | | | | Net gains/losses from financial instruments | 3 | -181,345 | 8,027 | -259,043 | 215,366 | 233,848 | | Net other operating income |   | -181,345 | 8,027 | -259,043 | 215,366 | 233,848 | |   | | | | | | | | Total operating income |   | -78,725 | 120,469 | 63,355 | 526,795 | 640,704 | |   | | | | | | | | Salaries and other ordinary personnel expenses | 4 | -3,160 | -2,409 | -8,303 | -7,077 | -10,700 | | Administration expenses | 5 | -2,577 | -2,419 | -7,598 | -7,664 | -10,625 | | Other operating expenses | 6 | -3,557 | -2,429 | -8,268 | -6,756 | -9,760 | | Depreciation/Amortization |   | -293 | -488 | -1,013 | -1,547 | -1,985 | | Total operating expenses |   | -9,587 | -7,745 | -25,182 | -23,045 | -33,070 | |   | | | | | | | | Net profit before impairment losses |   | -88,312 | 112,725 | 38,173 | 503,751 | 607,635 | | Write-downs on loans and guarantees | 8 |   | 0 | 0 | 0 | 0 | | Pre-tax operating result |   | -88,312 | 112,725 | 38,173 | 503,751 | 607,635 | |   | | | | | | | | Tax expense |   | 22,078 | -30,435 | -9,543 | -136,013 | -134,535 | | Net profit for the period |   | -66,234 | 82,289 | 28,630 | 367,738 | 473,100 | --- ## Statement of Comprehensive Income | NOK 1 000 |   | 3. quarter 2016 | 3.quarter 2015 | 01.01.2016 - 30.09.2016 | 01.01.2015 - 30.09.2015 | 2015 | | --- | --- | --- | --- | --- | --- | --- | |   | | | | | | | | Profit/loss for the year |   | -66,234 | 82,289 | 28,630 | 367,738 | 473,100 | | Items which will not impact the income statement in future periods: |   |   | - |   |   |   | | Change in pension expense for an earlier period |   |   | - | - | - |   | | Estimate change for pension expense |   |   | - | - | - | 5,685 | | Tax effect of the estimate change |   |   | - | - | - | -1,421 | | Total profit/loss accounted for in equity |   |   | - | - | - | 4,264 | | Total profit/loss |   | -66,234 | 82,289 | 28,630 | 367,738 | 477,363 | --- ## Balance Sheet | NOK 1 000 |   |   | Note | 30.09.2016 | 30.09.2015 | 2015 | | --- | --- | --- | --- | --- | --- | --- | |   | | | | | | | | Assets |   |   |   |   |   |   | | Lending to and deposits with credit institutions |   |   | 13 | 10,261,328 | 16,896,170 | 8,083,543 | | Norwegian Government Treasury Bills |   |   | 13 | 2,596,035 | - | 8,705,692 | | Bonds |   |   | 13 | 46,446,864 | 28,522,929 | 42,113,662 | | Lending to customers |   |   | 8 | 173,328,663 | 166,201,206 | 169,338,988 | | Financial derivatives |   |   | 12 | 27,278,826 | 37,885,017 | 40,947,743 | | Other assets |   |   | 7 | 2,262 | 4,692 | 3,671 | | Total assets |   |   |   | 259,913,978 | 249,510,013 | 269,193,299 | |   | | | | | | | | Liabilities and equity |   |   |   |   |   |   | | Liabilities |   |   |   |   |   |   | | Debt incurred by issuing securities |   |   | 10 | 220,083,440 | 201,403,517 | 218,853,602 | | Collateral received under derivatives contracts |   |   | 20 | 25,331,451 | 35,800,968 | 36,950,453 | | Financial derivatives |   |   | 12 | 1,415,786 | 392,999 | 690,315 | | Deferred tax |   |   |   | 380,104 | 234,604 | 370,561 | | Tax payable |   |   |   | - | - | - | | Subordinated debt |   |   | 11 | 2,684,461 | 2,434,246 | 2,434,380 | | Other Liabilities |   |   | 16 | 117,308 | 305,434 | 156,116 | | Total liabilities |   |   |   | 250,012,550 | 240,571,767 | 259,455,427 | |   | | | | | | | | Equity |   |   |   |   |   |   | | Paid in equity capital |   |   |   | 9,498,470 | 8,268,470 | 8,568,470 | | Other paid in equity (not yet registered) |   |   |   | - | 300,000 | 690,000 | | Accrued equity |   |   |   | 374,328 | 2,039 | 374,328 | | Net profit |   |   |   | 28,630 | 367,738 |   | | Declared dividend |   |   |   |   | - | 105,074 | | Total equity |   |   |   | 9,901,428 | 8,938,246 | 9,737,872 | |   | | | | | | | | Total liabilites and equity |   |   |   | 259,913,978 | 249,510,013 | 269,193,299 | --- ## Statement of Changes in Equity | NOK 1 000 | Share capital | Premium | Dividend | Fund for unrealized profits | Other equity | Total equity | | --- | --- | --- | --- | --- | --- | --- | |   | | | | | | | | Balance as of December 31. 2013 | 5,310,548 | 2,657,922 | 319,630 | - | 925 | 8,289,025 | | Share increase February 26 | 200,000 | 100,000 | - | - | - | 300,000 | | Dividend 2013 | - | - | -319,630 | - | - | -319,630 | | Result for the period | - | - | 203,890 | - | 1,149 | 205,039 | | Change in pension expense for an earlier period | - | - | - | - | 4,700 | 4,700 | | OCI - pension - estimate change | - | - | - | - | -4,736 | -4,736 | | Balance as of December 31. 2014 | 5,510,548 | 2,757,922 | 203,890 | - | 2,038 | 8,474,399 | | Dividend 2014 | 0 | 0 | -203,890 | - | - | -203,890 | | Share increase September 29 | 200,000 | 100,000 | - | - | - | 300,000 | | Share increase December 22 (not yet registered) | - | - | - |   | 690,000 | 690,000 | | Result for the period | - | - | 105,074 | 368,026 |   | 473,100 | | OCI - pension - estimate change | - | - | - | - | 4,263 | 4,263 | | Balance as of December 31. 2015 | 5,710,548 | 2,857,922 | 105,074 | 368,026 | 696,302 | 9,737,872 | | Regsitration of share increase (from Dec. 22. 2015) | 460,000 | 230,000 | - |   | -690,000 | - | | Dividend 2015 |   |   | -105,074 |   |   | -105,074 | | Share increase June 29 (registered sept. 19 2016) | 160,000 | 80,000 |   |   |   | 240,000 | | Result for the period | - | - | - | - | 28,630 | 28,630 | | Balance as of Sept 30. 2016 | 6,330,548 | 3,167,922 | 0 | 368,026 | 34,931 | 9,901,428 | --- ## Cash Flow Statement | NOK 1 000 | 30.09.2016 | 30.09.2015 | 2015 | | --- | --- | --- | --- | |   | | | | | Cash flows from operations |   |   |   | | Interest received | 2,887,496 | 2,862,982 | 3,784,335 | | Paid expences. operations | -29,627 | -21,453 | -27,767 | | Paid tax | - | - | - | | Net cash flow relating to operations | 2,857,870 | 2,841,528 | 3,756,568 | |   | | | | | Cash flows from investments |   |   |   | | Net purchase of loan portfolio | -4,004,428 | -5,029,527 | -8,168,134 | | Net payments on the acquisition of government bills | 6,025,532 | 486,578 | -8,214,730 | | Net payments on the acquisition of bonds | -6,772,210 | -7,987,891 | -21,073,393 | | Net investments in intangible assets | -642 | -1,029 | -1,054 | | Net cash flows relating to investments | -4,751,750 | -12,531,869 | -37,457,311 | |   | | | | | Cash flows from funding activities |   |   |   | | Net receipt/payment from the issuance of certificates | 949,959 | -749,970 | -749,970 | | Net receipt/payment from the issuance of bonds | 14,874,673 | 5,189,522 | 19,811,929 | | Net receipt/payment from the issuance subordinated debt | 250,000 | 480,000 | 480,000 | | Net receipt/payment from the issuance of loans to credit institutions | -9,468,515 | 7,810,832 | 8,412,189 | | Equity capital subscription | 240,000 | 300,000 | 990,000 | | Paid dividend | -105,074 | -203,890 | -203,890 | | Net interest payments on funding activity | -2,596,483 | -2,644,233 | -3,433,837 | | Net cash flow relating to funding activities | 4,144,559 | 10,182,261 | 25,306,422 | |   | | | | | Net cash flow in the period | 2,250,679 | 491,921 | -8,394,321 | | Balance of cash and cash equivalents beginning of period | 8,083,543 | 16,268,940 | 16,268,940 | | Net receipt/payments on cash | 2,250,679 | 491,921 | -8,394,321 | | Exchange rate difference | -72,895 | 135,309 | 208,925 | | Balance of cash and cash equivalents end of period | 10,261,328 | 16,896,170 | 8,083,543 | ---