DOCSLIB.ORG

As a Member of ABB's Pension Scheme, We Would Like to Welcome You As a Customer With

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
As a Member of ABB's Pension Scheme, We Would Like to Welcome You As a Customer With Ola Nordmann Eksempelveien 1 N-1396 Billingstad Welcome! As a member of ABB’s pension scheme, we would like to welcome you as a customer with SpareBank 1. We hope you will enjoy being with us! Ola Nordmann Eksempelveien 1 N-1396 Billingstad Oslo, 23 December 2016 Information about unit-linked defined contribution pensions We would like to welcome you as a pension customer of SpareBank 1. As an employee of ABB AS you are covered by the occupational pension contract established with SpareBank 1 Forsikring AS. In addition to reading the information below, we recommend you visit www.sparebank1.no/abb, where you will find all the relevant information about the pension contract. In addition to saving for your retirement pension, the contract includes additional cover. An overview of, and information about, this can be found in the certificate of insurance which you will find later in this information. Defined contribution allows you to choose between investment options with various interests in fixed income and equity funds. Following the recommendation of Sparebank 1 has chosen to invest initial payments in the 'Alderstilpasset' ('Age Adjusted') investment portfolio. Aldertilpasset 'Alderstilpasset' (Age Adjusted) aims to provide the best possible balance between returns and risk viewed over an entire savings and payments cycle. The proportion of shares will be adjusted gradually and automatically downwards from 100% at age 40 to 20% at age 67. You are responsible for choosing the most appropriate investment option for your pension fund based on the alternatives provided. You can freely change between these alternatives at any time. If you do not wish to have the “Age adjusted” option, you may choose from the following alternatives: 100% shares Suitable for those looking for high returns and who are willing to accept large swings in returns. Large swings in value will occur. The likelihood of a negative or low return will however be significantly reduced over time. In the years leading up to pensionable age, the proportion of unit trusts will gradually be reduced to 40%. Aggressive – 75% shares Suitable for those who wish to participate in the additional returns one expects in the stock market over time and who are aware of the risk a high proportion of shares entails. Swings in value will occur. The likelihood of a negative or low return will however be significantly reduced over time. In the years leading up to pensionable age, the proportion of unit trusts will gradually be reduced to 30%. Moderate – 50% shares Suitable for those who wish to participate in the additional returns one expects in the stock market over time. Swings in value will occur. In the years leading up to pensionable age, the proportion of unit trusts will gradually be reduced to 20%. Conservative – 25% shares Suitable for those who wish to avoid large swings in value. A low percentage of shares limits opportunities to participate in the additional returns one expects in the stock market. In the years leading up to pensionable age, the proportion of unit trusts will gradually be reduced to 10%. Would you rather save in a bank account? You can also move your pension capital into a bank account. Saving in a bank account provides a stable return, but also the lowest expected return over time. In this case your pension capital will be placed in a bank account and invested in short-term bonds and certificates issued and/or guaranteed by the state, county authorities, municipalities, mortgage companies, banks and insurance companies. Investments will be made either directly or via securities funds. The investment portfolios cater to various needs in relation to desired return and risk. The portfolios you can choose between can be seen on the Life and Pensions Service, www.livogpensjon.no. We protect your portfolio We will work to ensure your pension capital develops well over the long term and continuously assess the composition of funds and fund managers in each investment portfolio. Monitor your portfolios You will find up-to-date information about the returns in your investment portfolios and what they contain on www.sparebank1.no/avkastning. Disability pension A full annual disability pension at 100% occupational disability will amount to 2 % of pay up to 12G*, with an addition of 64 % of pay between 6G and 12G. It will be paid a supplement to the disability pension of 4% of pensionable income up to 6 G for each child under 18 years. The child supplement can not exceed 12% of pensionable income up to 6 G. The child supplement ends from and including the month the child turns 18. G = National Insurance, as per 01.05.2016 amounts to 92,576 Nkr. A disability pension will be paid out if you are at least 20% occupationally disabled for a period of twelve consecutive months. The disability pension can, fully or partly, be transferred to the contribution fund when the employee is in receipt of an work assessment allowance from the National Insurance Scheme. The disability pension will, under all circumstances, end at the latest at age 67. Enrolment in the disability pension plan is contingent on you being 100% fit for work upon enrolment. Monitor your pension online At www.livogpensjon.no you can - change how your pension is invested, based on the available portfolios. - find an overview of your fund and your returns. - find information about any additional cover such as a disability pension, additional child cover, a spouse's pension, a cohabitant's pension, and a child's pension. How do you log in? - Select 'Logg inn'. - Enter your national identity number and log in with BankID. - Select 'Pensjon' from the menu at the top of the page. Certificate of insurance and terms and conditions You will find your certificate of insurance and terms and conditions of insurance later in this information. These show your current cover and benefits. In order for the insurance to be valid, the payments agreed at any given time must have been paid by the company. Statement showing the company's payments into your pension You will receive a statement once a year. The statement shows what your employer has paid into your pension, the costs, your balance, and a calculation of your potential future pension. Have you accrued pensions in previous jobs? In that case you probably have pension capital certificates in various insurance companies. Gathering your pension capital certificates in once place means you will avoid unnecessary fees and gain an overview of your pension rights on a single statement. As an employee of ABB you get lower costs than ordinary customers. You can do this easily on www.sparebank1.no/pkb. We will contact the company with which your pension capital certificate is registered and transfer it. You will receive a new certificate from us once the transfer is complete. Your faithfully, SpareBank 1 Forsikring AS National identity number 010160 12345 Insured Ola Nordmann Policyholder ABB AS Organisation number 982085160 Contract number xxxxxxx Ola Nordmann Eksempelveien 1 N-1396 Billingstad Oslo, 23 December 2016 Certificate of insurance A contract concerning unit-linked defined contribution pensions has been entered into between ABB AS and SpareBank 1 Forsikring AS. The terms and conditions of insurance and the special terms and conditions agreed between your employer and SpareBank 1 Forsikring AS apply to unit-linked defined contribution pensions. The following also apply: the Insurance Activity Act (FVL) of 10 June 2005, the Act on Financial Enterprises and Financial Groups of 10 April 2015 (FFL), the Insurance Contracts Act (FAL) of 16 June 1989, the Defined Contribution Pensions Act (LOI) of 24 November 2000, the Pensions Act (LOF) of 24 March 2000 (applies to survivors' pensions), the Occupational Pensions Act (LTP) of 13 December 2013 (applies to disability pensions), the Mandatory Occupational Pensions Act (OTP) of 21 December 2005, and Norwegian legislation in general. The terms and conditions take precedence where they depart from statutory rules that may be waived. This certificate of insurance replaces any previous certificate of insurance. In order for the insurance to be valid, the premiums agreed at any given time must have been paid. You must be fully fit for work corresponding to a full-time position (100%) upon enrolment in the insurance, upon increases in insurance payments, and upon subscribing to new additional cover. Contribution plan 5% of pay between 0G and 7.1G 20% of pay between 7.1G and 12G G = The National Insurance Scheme's basic amount. Pensionable income Annual contributions (amount saved) : NOK X Waiver of premium : NOK X Adjustment of waiver of premium : 2% Pensionable income (pay) : NOK X Hours worked : X% Management of the pension capital The pension capital you have accrued is calculated as the sum of what your employer has paid in and the return you receive on your funds. You are responsible for investing the funds in the investment portfolios you want and you bear the risk of any negative return. The contract includes the following additional cover Annual pension (NOK) Disability pension with waiver of premiums xx,xxx.xx Additional child cover included in disability pension with waiver of premiums xx,xxx.xx Your period of service must be at least 30 years in order to receive the full benefits from the additional cover. The additional cover is calculated on the basis of the number of possible qualifying years for the period of service up to 30 years, divided by the period of service requirement. This does not apply in the case of a disability pension. The additional cover applies for one year at a time, and no qualification for a paid-up policy accrues (i.e.
Load more

Recommended publications
  • Sustainability in Sparebank 1 SR-Bank
    Sustainability in SpareBank 1 SR-Bank Sustainability in SpareBank 1 SR-Bank 1 1. SpareBank 1 SR-Bank’s approach to sustainability 1.1 SpareBank 1 SR-Bank is a responsible corporate citizen and a driving force behind the green shift ................................................................................................................................................................................................. 3 1.2 SpareBank 1 SR-Bank’s global responsibilities – organisations and international principles supported by the group ........................................................................................................................................................ 3 1.2.1 Global initiatives .................................................................................................................................................................................................. 3 1.3 Frameworks SpareBank 1 SR-Bank complies with: ............................................................................................................... 4 1.3.1 OECD Guidelines for Multinational Enterprises .......................................................................................................... 4 1.3.2 Global Reporting Initiative (GRI) ..................................................................................................................................................... 4 1.3.3 CDP reporting ......................................................................................................................................................................................................
    [Show full text]
  • Sparebank 1 Nord-Norge Annual Report 2019 006
    SPAREBANK 1 NORD-NORGE ANNUAL REPORT 2019 006 010 012 014 016 017 018 022 048 049 050 052 053 142 146 154 158 160 162 177 182 190 196 198 202 204 213 225 226 Table of contents NORD-NORGE 1 SPAREBANK 006 From the CEO SpareBank 1 Nord-Norge 010 Strategic compasss 012 Our history 014 Important events 016 Branches 017 Organization and company structure 018 Annual report 022 Annual report from the board ANNUAL ACCOUNTS ANNUAL Annual accounts 2019 048 Annual Report – Income statement 049 Annual Report – Balance Sheet 050 Annual Report – Changes in equity 052 Annual Report – Cash Flow Statement 053 Annual accounts – Notes 142 Statement from the Board of Directors and Chief Executive Officer 146 Auditor’s report Operations 154 Group Management 158 Board of Directors 160 Governing bodies OPERATIONS 162 Corporate governance 177 Risk management and internal control 182 Ownership 190 Operations 196 Markets 198 The SpareBank 1- alliansen CORPORATE SOCIAL RESPONSIBILITY SOCIAL CORPORATE 202 The foundations 204 Organisation and HR Corporate social responsibility 213 Sustainability 225 Samfunnsløftet 226 Index Global Reporting Intiative Continued Added Value Uncertainty dominated 2019. Trade wars, Brexit, esc- The financial results for SpareBank 1 Nord-Norge alating levels of conflict in the Middle East as well are affected by the economic temperature of the as climate change resulting in floods and wildfires. region. In addition, SpareBank 1 Nord-Norge have Paradoxically, Northern Norway, and SpareBank 1 gained a good effect by merging insurance compa- Nord-Norge profits from this uncertainty due to nies of SpareBank 1 and DNB. being an export driven region.
    [Show full text]
  • Supplementary Information Q2 2017
    Chief Executive, CEO Arne Austreid For further information, please contact Inge Reinertsen, Chief Financial Officer [email protected] +47 909 95 033 Stian Helgøy, VP Investor Relations [email protected] +47 906 52 173 Address SpareBank 1 SR-Bank, Postboks 250, 4066 Stavanger Visiting address: Bjergsted Terrasse 1, 4001 Stavanger SpareBank 1 SR-Bank Switchboard: +47 915 02002 Information on the Internet SpareBank 1 SR-Bank’s homepage www.sr-bank.no Financial Calendar Second quarter 2017 9 August Third quarter 2017 27 October Table of Contents 1. SpareBank 1 SR-Bank ASA .............................................................................. 1 1.1 Financial highlights ....................................................................................... 1 1.2 Business description: leading financial institution in Rogaland, Hordaland and Agder ........................................................................................................................ 3 Retail Market ................................................................................................................................................. 3 Corporate Market .......................................................................................................................................... 3 Capital Market ............................................................................................................................................... 3 Vision and strategy .......................................................................................................................................
    [Show full text]
  • Annual Report 2020 2 SPAREBANK 1NORD-NORGE Table of Contents
    Annual Report 2020 2 SPAREBANK 1 NORD-NORGE 1 SPAREBANK Table of contents SPAREBANK 1 NORD-NORGE 04 From the CEO 08 Strategic compass 10 Our history 12 Timeline 14 Important events 16 Branches 20 Organisation chart 22 Company structure 23 Annual report 24 Group profit analysis 27 Annual report of the Board 28 ANNUAL ACCOUNTS 2020 60 Income statement 62 Balance sheet 63 Changes in equity 64 Cash flow statement 66 Notes 67 Statement by the Bord og Directors and the Group CEO 160 Alternative performance measures 161 Auditor’s report 164 3 Table of contents NORD-NORGE 1 SPAREBANK OPERATIONS 170 Group Management 172 Board of Directors 174 Governing bodies 176 Corporate governance 180 Risk management and internal control 198 Ownership 204 Operations 210 SpareBank1 Nord-Norge Capital markets 218 The SpareBank 1-alliansen 221 The foundations 224 Organisation and HR 226 CORPORATE SOCIAL RESPONSIBILITIY 234 Sustainability in SpareBank 1 Nord-Norge 236 Climate risk (TCFD) 241 Annex 1: Global reporting initiative (GRI) index 256 Annex 2: Carbon exposure in the credit portfolio 262 Annex 3: Stakeholder analysis 2020 264 Annex 4: ‘Samfunnsløftet’s’ contribution to the UN sustainability goals 266 Samfunnsløftet across all Northern Norway 268 4 SPAREBANK 1 NORD-NORGE 1 SPAREBANK Sparebank 1 Nord-Norge SpareBank 1 Nord-Norge is the leading finance house in Northern Norway. The group is part of SpareBank 1-alliansen, an alliance of 14 independent savings banks across the entire country. 5 SPAREBANK 1 NORD-NORGE 1 SPAREBANK Photo: Marius Fiskum DIGITALISATION 2020 was the year that video meetings – up to then meeting between people remains at centre-stage.
    [Show full text]
  • Sparebank 1 SR-Bank Annual Report 2019
    Annual Report 2019 Milestones in the past year • SpareBank 1 SR-Bank’s • SpareBank 1 SR-Bank Business Barometer shows that a enters into a strategic 1 surprisingly high number of 3 partnership with a start-up company called companies in Southern Justify regarding the provision of digital Norway expect higher legal services to retail customers. profitability in 2019. • Bergen-based Shrimp Vision wins this • Subsidiaries and startup factory, year’s Gründerhub Prize and NOK 250,000. FinStart Nordic, open in new premises in The company is developing a system for Oslo. The Minister of Finance, Siv Jensen, producing fresh, locally-produced, tropical holds the opening speech and praises the shrimp. financial services industry for its focus on innovation and restructuring. • SR-Boligkreditt issues its first green home mortgage bond. • SpareBank 1 SR-Bank chooses three UN The EUR 500 million quickly Sustainable Development Goals that the becomes fully subscribed to. group will make an extra contribution to achieving. The UN Sustainable Development Goals are the world’s first joint plan to eradicate poverty, combat inequality and • SpareBank 1 SR-Bank moves into a new stop climate change by 2030. climate-neutral head office GENDER EQUALITY DECENT WORK CLIMATE CHANGE AND ECONOMIC 4 in Stavanger named GROWTH Finansparken. Northern Europe’s largest wooden office building. • On 29 November, • SpareBank 1 Regnskapshuset SR acquires SpareBank 1 SR- Agder Økonomi thus strengthening the Bank marks its 180th 2 group’s overall focus on Southern Norway. anniversary. The bank’s oldest roots stretch back to the establishment of Egersund • SpareBank 1 SR-Bank Sparebank in 1839.
    [Show full text]
  • Sustainability
    Sustainability SPAREBANK 1 SR-BANK’S APPROACH TO SUSTAINABILITY SpareBank 1 SR-Bank is a responsible corporate citizen SpareBank 1 SR-Bank has practised a philosophy of long-term sustainability ever since the establishment of Egersund Sparebank in 1839. Sustainability remains a key part of the group’s overarching strategy and is well-integrated into all parts of the group’s operations. SpareBank 1 SR-Bank takes a proactive approach to sustainability and has chosen to particularly prioritise responsibility for the climate and OUR CHOSEN UN SUSTAINABLE environmental challenges society is facing. DEVELOPMENT GOALS To ensure that the group continues to develop sustainably, we Our targets and work on these: systematically focus on three different areas of sustainability: the climate and environment, the economy, and social Gender equality conditions. Account is taken of these areas in our products 1. Ensure women full and genuine and services, advice on investment and credit decisions, participation, and equal opportunities marketing, purchases, corporate governance model, and to gain senior positions at all levels. group executive management team. Our internal work on 2. Equal pay HSE, ethics and environmental efficiency is also influenced 3. Strengthen the role of women in personal by the same areas of sustainability. Extensive communication finances work was done during the year, via websites and external news hubs, to clarify the group’s work on sustainability to customers, Measures: owners and other stakeholders. Internal communication In 2019, the group’s diversity and equal opportunities committee measures were also implemented as part of the training in implemented a number of measures in line with Sustainable relevant sustainability themes.
    [Show full text]
  • From Grain to Group
    ANNUAL REPORT 2020 From grain to group A bank for people and businesses in towns and villages for 175 years Content Page How to read our report 3 SpareBank 1 Østlandet in brief 4 Financial targets and achievement 6 A word from the CEO 8 The macro picture 10 1. About SpareBank 1 Østlandet 12 1.1 Key figures from the Group 14 1.2 The equity capital certificate 18 1 1.3 Our strategic focus 22 1.4 A look back at 2020 28 1.5 Our proud history - from grain to group 30 2. Group Management 38 Organisation chart and stakes 40 Group Management 41 Financial Advisers Elisabeth Færevaag and Joachim Vorkinn. Oslo. 2 Business areas and support functions 42 2.1 Corporate governance 44 2.2 Business description 56 How to read our report 2.3 The Bank's social role 68 2.4 Our employees 76 This annual report is an integrated includes the Board of Directors’ Report, report based on the IIRC’s principles for Income Statement, Balance Sheet, 3. Our material sustainability topics 80 integrated reporting. It describes how Changes in Equity, Cash Flow Statement, Framework for our sustainability initiative 82 SpareBank 1 Østlandet contributes to Notes, Statement from the Board of 3.1 Responsible lending 84 sustainable growth and the development Directors and CEO, Auditor’s Report 3 3.2 Combating economic crime 92 of our customers, owners, employees and and Subsidiaries. society as a whole. 3.3 Ethics and anti-corruption 94 The main part is followed by a number of 3.4 Requirements for providers of financial services 96 The Chapter ‘About SpareBank 1 appendices, including ‘Further facts about 3.5 Ethical marketing of products and services 98 Østlandet’ presents key figures from the SpareBank 1 Østlandet’s sustainability Group and an overview of the develop- work’.
    [Show full text]
  • Enter Title Here
    Banks EMEA Norway The Major Sparebanken of the SpareBank 1 Alliance The Sparebanken Benefit from a Supportive Operating Environment Special Report │ 13 January 2020 fitchratings.com 1 Banks EMEA Norway The Major Sparebanken of the SpareBank 1 Alliance The Sparebanken Benefit from a Supportive Operating Environment SpareBank 1 Alliance Regional Market Shares Strong Franchises, Regional Concentrations The ratings for SpareBank 1 SR-Bank (SR-Bank; A-/Stable), SpareBank 1 SMN (SMN; A-/Stable) and SpareBank 1 Nord-Norge 37% (SNN; A/Stable), which are members of the Sparebank 1 Alliance 35% (collectively: the Sparebanken), reflect their stable and low-risk business models, healthy profitability, resilient asset quality and sound capital ratios. The ratings also factor in risks arising from volatility in oil prices, high property prices, geographically 22% concentrated lending and liquidity management in the context of the banks’ wholesale funding reliance. SNN’s ratings are one notch higher than its Sparebanken peers’, 30% reflecting better asset-quality metrics, limited oil exposure and a more retail-oriented business model. 23% 39% 27% 3% Supportive Operating Environment 18% 8% Oslo: The Sparebanken’s performances are closely linked to that of the 9% 12% 24% 12% 31% 16% Norwegian economy and their respective regions, given their 9% regional focus. Fitch Ratings expects the Norwegian banking sector to continue to benefit from the country’s favourable economic Shading reflects strength of market share in the region. environment. However, the Sparebanken remain dependent on oil- Source: Fitch Ratings, SpareBank 1 Group Research related industries, although to varying degrees. A major part of impaired loans at end-September 2019 was related to this industry.
    [Show full text]
  • Sparebank 1 Create a Flexible Data Center
    Helping you Optimize. Store. Secure. CASE STUDY technology equipment ... How the “Lego Approach” Helped Norway Giant SpareBank 1 Create a Flexible Data Center Oslo, the most populated city in Norway, is the hub of the country’s governmental, economic, manufacturing and shipping industries. At its center is an alliance of banking, insurance and holding companies under the brand “SpareBank 1.” With 15 independent banks and 6,300 employees, SpareBank 1 is Norway's second largest bank alliance. Amongst others, the banks collaborate within SpareBank 1's state-of-the-art data center gives them the flexibility to cool the equipment and maintain the continuity of operations. IT, which is handled through SpareBank 1 Gruppen AS (SpareBank 1 Group). At the SpareBank 1 Gruppens office building in Oslo, they plan, develop and approach to business that SpareBank 1 began the mission to upgrade their support the deployment of their own IT operations systems and software data center operations into state-of-the-art facilities that were tailored processes for the entire organization. A few years ago, with business specifically to their organizational needs. growing and the demand for data security and preservation on the rise, IT experts and executives at SpareBank 1 began the mission to improve the Planning for a Safe and Cool Data Center infrastructure of their data centers. It was in the spirit of their self-reliant Creating the best design to support the alliance, SpareBank 1’s executives and IT experts planned for a two-year process that would include the design, development and implementation of their very own highly-tailored They used what they called the data center.
    [Show full text]
  • Sparebank 1 Alliance the Sparebank 1 Alliance Consists of 14 Independent Savings Banks, Who Cooperate on Branding and Providing a Joint Platform
    SpareBank 1 Alliance The SpareBank 1 alliance consists of 14 independent savings banks, who cooperate on branding and providing a joint platform. SpareBank 1 is Norway’s second largest finance group in terms of assets. The alliance was created in 1996 to strengthen each local bank’s competitiveness, profitability and solvency, as well as to ensure each bank’s future independence and regional ties. These banks are in the SpareBank 1 alliance • SpareBank 1 BV • SpareBank 1 Gudbrandsdal • SpareBank 1 Hallingdal Valdres • SpareBank 1 Lom og Skjåk • SpareBank 1 Modum • SpareBank 1 Nord-Norge • SpareBank 1 Nordvest • SpareBank 1 Ringerike Hadeland • SpareBank 1 SMN • SpareBank 1 SR-Bank • SpareBank 1 Søre Sunnmøre • SpareBank 1 Telemark • SpareBank 1 Østfold Akershus • SpareBank 1 Østlandet These companies are also affiliated with the alliance and owned by several of SpareBank 1 banks: SpareBank 1 Betaling AS, SpareBank 1 Boligkreditt AS, SpareBank 1 Kredittkort AS, SpareBank 1 Markets AS, SpareBank 1 Næringskreditt AS, BN Bank ASA Additionally, the Norwegian Confederation of Trade Unions (LO) is a strategic partner of the SpareBank 1 alliance and a co-owner of SpareBank 1 Gruppen AS. How the alliance is organized The alliance is organized through the jointly owned companies SpareBank 1 Gruppen AS and SpareBank 1 Banksamarbeidet DA with their subsidiaries. In addition, a number of other companies are directly owned by SpareBank 1 banks. SpareBank 1 Gruppen AS SpareBank 1 Gruppen AS is the parent company of 8 subsidiary companies, which all develop and supply products to banks in the alliance, which in turns offer these to customers in their local markets.
    [Show full text]
  • Regnskap 4. Kvartal 2019 4
    Regnskap 4. kvartal 2019 4. kvartal 2019 Innholdsfortegnelse Hovedtall ............................................................................................................. 3 Styrets beretning ................................................................................................. 5 Resultatregnskap .............................................................................................. 24 Balanse ............................................................................................................. 26 Kontantstrømoppstilling ..................................................................................... 27 Endring i egenkapital ......................................................................................... 28 Noter ................................................................................................................. 31 Resultater fra kvartalregnskapene .................................................................... 56 Nøkkeltall fra kvartalregnskapene ..................................................................... 57 Egenkapitalbevis ............................................................................................... 58 Side 2 av 59 4. kvartal 2019 Hovedtall Januar - Desember 2019 2018 Resultatsammendrag mill. kr % 1) mill. kr % 1) Netto renteinntekter 2.687 1,63 2.403 1,53 Netto provisjons- og andre inntekter 2.290 1,39 2.177 1,39 Netto avk. på finansielle investeringer 1.201 0,73 757 0,48 Sum inntekter 6.178 3,74 5.337 3,40 Sum driftskostnader 2.797 1,69 2.624
    [Show full text]
  • DNB, SB1 SR-Bank, SB1 SMN, SB1 Nord- Norge, Sparebanken Vest & Sparebanken More
    FINANCIAL INSTITUTIONS ISSUER IN-DEPTH DNB, SB1 SR-Bank, SB1 SMN, SB1 Nord- 19 October 2020 Norge, Sparebanken Vest & Sparebanken More Norway’s oil-exposed lenders are insulated against weak oil prices Contacts We expect the six Moody’s-rated Norwegian banks with exposure to the oil sector to Nondas Nicolaides +357.2569.3006 preserve their current strong capitalisation and creditworthiness, despite an increase in their VP-Sr Credit Officer [email protected] problem loans due to a steep coronavirus-induced drop in oil prices. The lenders' oil exposure remains relatively limited, and their core profitability is solid, helped by continued good Niclas Boheman +46.8.5179.6561 VP-Senior Analyst income generation from their dominant mortgage lending operations. While downside risks [email protected] remain, their strong capital buffers are also supportive of their solvency and ratings. Katarzyna +44.20.7772.1047 Oil price slump pushes up problem loans. The price of Brent crude oil fell by 78% Szymanska Associate Analyst between February and April 2020 as the coronavirus-related economic downturn led to a [email protected] sharp fall in global energy demand, although it later partly recovered. The decline triggered Simon James Robin +44 207 772 5347 loan repayment difficulties among some Norwegian oil sector borrowers, including owners of Ainsworth offshore service vessels. This was a key factor behind an increase in the six banks’ weighted Associate Managing Director average non-performing loan (NPL) ratio to around 1.9% in Q2 2020 from 1.4% a year [email protected] earlier. DNB Bank, one of the largest banks and the most exposed to the oil sector, suffered Sean Marion +44.20.7772.1056 the most significant asset quality deterioration.
    [Show full text]