--- title: Financial statements --- ## Income Statement | NOK 1 000 | Note | 3. quarter 2018 | 3. quarter 2017 | 01.01.2018 - 30.09.2018 | 01.01.2017 - 30.09.2017 | 2017 | | --- | --- | --- | --- | --- | --- | --- | |   | | | | | | | | Total interest income | 2 | 925,159 | 822,416 | 2,643,954 | 2,660,722 | 3,470,270 | | Total interest and commission expense | 2 | -845,254 | -718,215 | -2,387,732 | -2,343,004 | -3,044,417 | | Net interest income |   | 79,905 | 104,201 | 256,222 | 317,718 | 425,852 | |   | | | | | | | | Net gains/losses from financial instruments | 3 | -13,427 | -20,781 | -179,988 | -476,950 | -630,361 | | Net other operating income |   | -13,427 | -20,781 | -179,988 | -476,950 | -630,361 | |   | | | | | | | | Total operating income |   | 66,478 | 83,420 | 76,235 | -159,232 | -204,508 | |   | | | | | | | | Salaries and other ordinary personnel expenses | 4 | -3,100 | -3,117 | -9,240 | -8,935 | -12,017 | | Other operating expenses | 5 | -4,406 | -4,257 | -14,344 | -15,710 | -22,389 | | Total operating expenses |   | -7,507 | -7,374 | -23,584 | -24,646 | -34,406 | |   | | | | | | | | Operating result before losses |   | 58,971 | 76,046 | 52,651 | -183,878 | -238,914 | | Write-downs on loans and guarantees | 7 | 272 | - | -329 | - | - | | Pre-tax operating result |   | 59,243 | 76,046 | 52,322 | -183,878 | -238,914 | |   | | | | | | | | Taxes |   | -14,811 | -19,011 | -13,080 | 45,969 | 59,720 | | Profit/loss for the period |   | 44,433 | 57,034 | 39,241 | -137,908 | -179,194 | |   | | | | | | | | Portion attrubutable to shareholders |   | 33,987 |   | 8,259 |   | -216,321 | | Portion attributable to additional Tier 1 capital holders |   | 10,446 |   | 30,982 |   | 37,127 | | Profit/loss for the period |   | 44,433 |   | 39,241 |   | -179,194 | --- ## Overview of Comprehensive Income | NOK 1 000 |   | 3. quarter 2018 | 3. quarter 2017 | 01.01.2018 - 30.09.2018 | 01.01.2017 - 30.09.2017 | 2017 | | --- | --- | --- | --- | --- | --- | --- | |   | | | | | | | | Profit/loss for the year |   | 44,433 | 57,034 | 39,241 | -137,908 | -179,194 | | Items which will not impact the income statement in future periods: |   |   |   |   |   |   | | Change due to basis swap spread adjustment |   | -40,907 | - | -135,834 | - | - | | Tax effect of basis swap spread adjustment |   | 10,227 | - | 33,959 | - | - | | Change in pensions for a previous period: |   |   |   |   |   |   | | Estimate deviation for pensions |   | - | - | - | - | -347 | | Tax effect of the estimate deviation |   | - | - | - | - | 87 | | Total profit/loss accounted for in equity |   | -30,680 | - | -101,876 | - | -260 | | Total profit/loss |   | 13,752 | 57,034 | -62,635 | -137,908 | -179,454 | --- ## Balance Sheet | NOK 1 000 |   |   | Note | 30.09.2018 | 30.09.2017 | 2017 | | --- | --- | --- | --- | --- | --- | --- | |   | | | | | | | | Assets |   |   |   |   |   |   | | Lending to and deposits with credit institutions |   |   | 14 | 11,411,753 | 4,200,397 | 3,044,644 | | Certificates and bonds |   |   | 14, 15 | 35,032,317 | 41,638,986 | 54,318,384 | | Residential mortgage loans |   |   | 7, 14, 19 | 183,811,362 | 176,093,142 | 177,675,130 | | Financial derivatives |   |   | 13,14,15 | 15,982,953 | 21,637,545 | 27,144,125 | | Defered tax asset |   |   |   | 10,055 | 9,299 | - | | Other assets |   |   | 6 | 1,507 | 992 | 1,188 | | Total assets |   |   |   | 246,249,947 | 243,580,361 | 262,183,472 | |   | | | | | | | | Liabilities and equity |   |   |   |   |   |   | | Liabilities |   |   |   |   |   |   | | Debt incurred by issuing securities |   |   | 10,14 | 217,814,578 | 211,526,141 | 224,462,981 | | Collateral received under derivatives contracts |   |   | 14,15, 20 | 13,370,235 | 17,848,036 | 23,628,253 | | Financial derivatives |   |   | 13,14,15 | 1,479,191 | 1,231,492 | 898,292 | | Deferred tax |   |   | 14 | 102,675 | 208,816 | 136,634 | | Tax payable |   |   | 14 | - | - | - | | Subordinated debt |   |   | 11,14 | 1,603,108 | 1,603,253 | 1,603,356 | | Other Liabilities |   |   | 14,16 | 148,423 | 126,172 | 182,231 | | Total Liabilities |   |   |   | 234,518,210 | 232,543,911 | 250,911,747 | |   | | | | | | | | Equity |   |   |   |   |   |   | | Paid-in equity |   |   | 9 | 10,638,470 | 9,708,470 | 9,858,470 | | Other paid-in equity (not yet registered) |   |   |   | 150,000 | 150,000 | 300,000 | | Hybrid capital |   |   | 9 | 1,180,000 | 1,080,000 | 1,180,000 | | Accrued equity |   |   |   | -275,974 | 121,938 | -139,022 | | Net profit |   |   |   | 39,241 | -137,908 | - | | Declared dividends |   |   |   | - | 113,950 | 72,276 | | Total equity |   |   |   | 11,731,737 | 11,036,450 | 11,271,724 | |   | | | | | | | | Total liabilities and equity |   |   |   | 246,249,947 | 243,580,361 | 262,183,472 | |   | | | | | | | --- ## 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 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 | - | - | - | - | | Share increase 28 September 2017 | 100,000 | 50,000 | - | - | - | - | - | 150,000 | | Dividend 2016 | - | - | -113,950 | - | - | - | - | -113.950 | | Net income for the period | - | - | - | - | -179,194 | - | - | -179.194 | | New hybrid capital | - | - | - | - | - | - | 100,000 | 100,000 | | Paid interest on hybrid capital - directly against equity | - | - | - | - | - | -37,127 | -1,034 | -38,161 | | Share increase December 27 (not yet registered) | - | - | - | 300,000 | - | - | - | 300,000 | | Proposed dividend for 2017 | - | - | 72,276 | - | -72,276 | - | - | - | | OCI - pension - annual estimate deviation | - | - | - | - | -260 | - | - | -260 | | 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 | - | - | - | - | -4,095 | - | - | -4,095 | | 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 (not yet registered) | - | - | - | 150,000 | - | - | - | 150,000 | | Net income for the period | - | - | - | - | 39,241 | - | - | 39,241 | | Paid interest on hybrid capital - directly against equity | - | - | - | - | - | -30,982 | - | -30,982 | | OCI -basisswapspread | - | - | - | - | -101,876 | - | - | -101,876 | | Balance as of 30 September 2018 | 7,090,548 | 3,547,922 | 0 | 150,000 | -168,624 | -68,109 | 1,180,000 | 11,731,737 |   *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 | 30.09.2018 | 30.09.2017 | 2017 | | --- | --- | --- | --- | |   | | | | | Cash flows from operations |   |   |   | | Interest received | 3,380,717 | 3,157,089 | 3,552,215 | | Paid expenses. operations | -70,378 | -28,338 | -34,718 | | Paid tax | - | -124,898 | -124,898 | | Net cash flow relating to operations | 3,310,339 | 3,003,853 | 3,392,598 | |   | | | | | Cash flows from investments |   |   |   | | Net purchase of loan portfolio | -6,142,759 | -1,617,503 | -3,187,555 | | Net payments on the acquisition of government bills | 1,177,693 | 509,274 | 552,662 | | Net payments on the acquisition of bonds | 16,829,399 | 811,903 | -11,142,971 | | Net investments in intangible assets | -897 | -214 | -214 | | Net cash flows relating to investments | 11,863,436 | -296,539 | -13,778,078 | |   | | | | | Cash flows from funding activities |   |   |   | | Net receipt/payment from the issuance of certificates | -120,999 | -377,075 | -828,967 | | Net receipt/payment from the issuance of bonds | 5,296,092 | 3,183,173 | 10,266,970 | | Net receipt/payment from the issuance of subordinated debt | - | - | 100,000 | | Net receipt/payment of loans to credit institutions | -9,657,823 | -6,395,388 | -1,413,538 | | Equity capital subscription | 630,000 | -150,000 | 450,000 | | Paid dividend | -72,276 | - | -113,950 | | Net interest payments on funding activity | -2,907,219 | -2,911,283 | -3,234,635 | | Net cash flow relating to funding activities | -6,832,224 | -6,650,574 | 5,225,880 | |   | | | | | Net cash flow in the period | 8,341,551 | -3,943,260 | -5,159,599 | |   | | | | | Balance of cash and cash equivalents at beginning of period | 3,044,644 | 8,129,096 | 8,129,097 | | Net receipt/payments on cash | 8,341,551 | -3,943,260 | -5,159,599 | | Exchange rate difference | 25,558 | 14,560 | 75,147 | | Balance of cash and cash equivalents at end of period | 11,411,753 | 4,200,397 | 3,044,644 | ---