SpareBank 1 SR-Bank

Transcription

SpareBank 1 SR-Bank

Contents.
2. SpareBank 1 SR-Bank
3. Main and key figures
4. A bank for everyone
6. A bank for all generations
10. A bank for business and industry
14. Directors Report for 1999
20. Annual Accounts for 1999
22. Accounting Principles
25. Notes
46. Cash flow analysis
47. Auditors’ and The Audit Committee’s Report
48. Deposits, Loans and Profits
49. Five-year Overviews in key figures
50. Five-year Overviews in Graphs
51. Primary Capital Certificates
53. Representatives
54. Organisational Chart
55. Map of branch offices
56. Addresses overview
1.
SpareBank 1 SR-Bank.
«SpareBank 1 SR-Bank is
the region's leading bank
with 54 offices in 26 municipalities ranging from Ølen in
Hordaland to Flekkefjord in
Vest-Agder.The bank consists
of 39 former local savings
banks and has a history
dating back to 1839.»
SpareBank 1 SR-Bank is organized into five districts:
Haugaland, Ryfylke, Jæren, Egersund and Stavanger.
The main office is in Stavanger. We have a total of 665
employees and manage a total of NOK 35 billion as
of 31 December 1999. SpareBank 1 SR-Bank is the
dominant bank in the region and the market leader
within the markets for private customers, corporate
customers and public administration. We have a total
of 173,800 customers, divided among 165,000 private
customers and 8,800 corporate customers.
The bank: SpareBank 1 SR-Bank shall be a
profitable and independent bank with local ties, and
shall be a regional alternative to the competing financial
conglomerates through the SpareBank 1 alliance.
SpareBank 1 was established on 1 November 1996 in
order to ensure a nation-wide and regional alternative
to the large financial conglomerates with headquarters
in Oslo. SpareBank 1 is a binding cooperation between
SpareBank 1 Nord-Norge, SpareBank 1 Midt-Norge,
SpareBank 1 Vest, SpareBank 1 SR-Bank and
The SpareBank 1 SR-Bank group consists of SpareBank
Samarbeidende Sparebanken A/S (16 local savings
1 SR-Bank and the bank's two subsidiaries – the real estate banks in the eastern part of Norway – Samspar).
agency EiendomsMegler 1 Rogaland A/S and the finance
company Westbroker Finans A/S with a total of 82 employees. SpareBank 1's Vision: SpareBank 1 shall
EiendomsMegler 1 Rogaland A/S has offices in Stavanger, satisfy the customers' individual expectations regarding
Sandnes, Sola, Bryne, Egersund and Haugesund. In addition, proximity, local ties and cooperation.
the brokerage firm Garde ASA is an affilicated company.
SpareBank 1 Gruppen A/S is the holding company in the
Our job is to offer all financial services needed by
alliance and owns the product companies SpareBank 1
our customers, finance homes and businesses, offer
Livsforsikring AS, SpareBank 1 Skadeforsikring A/S,
insurance and payment services, sell real estate, securities SpareBank 1 Fondsforsikring A/S, SpareBank 1 Kredittkort
and be financial advisers.
A/S, Odin Forvaltning AS (51%), First Securities AS (54%).
EiendomsMegler 1 is also a part of this collaboration.
We play an active role on the local level, for example by
financing businesses that create new jobs, as well as
In August 1998, SpareBank 1 and Sweden's second
through supporting local associations and organizations.
largest bank, FöreningsSparbanken AB, decided to
enter into a strategic alliance in order to strengthen
Our vision: SpareBank 1 SR-Bank shall be regarded
the regional/local competitiveness in both countries.
by the customer as the recommended and leading bank
As of 31 December 1999, FöreningsSparbanken AB
within its market.
manage assets totaling SEK 834 billion.
Customers: SpareBank 1 SR-Bank shall be viewed by
the customer as the recommended and preferred partner.
In November 1999, Vår Gruppen ASA and SpareBank 1
entered into a proposal for a framework agreement
regarding cooperation and integration. This entails that
Products: SpareBank 1 SR-Bank shall offer competitive the trade unions, represented by the Norwegian
financial products and services that cover customer needs. Federation of Trade Unions, become a 10 % owner in
SpareBank 1 Gruppen A/S. The ownership distribution in
Distribution: SpareBank 1 SR-Bank shall offer its
SpareBank 1 Gruppen A/S after the transaction will be
products through modern, easily accessible and local
that the SpareBank 1 banks own 65%, the Norwegian
distribution channels, which ensure that the customer
Federation of Trade Unions owns 10% and
receives good quality and service.
FöreningsSparbanken AB owns 25%.
Employees: SpareBank 1 SR-Bank shall secure the
bank's position as the recommended and leading bank
through ensuring that its employees are customeroriented and qualified.
Community: SpareBank 1 SR-Bank shall actively
participate in the effort to strengthen growth and
development within its market.
2.
After the merger with VÅR Bank og Forsikring, which is
currently Norway's fourth largest insurance company and
the country's seventh largest commercial bank, the new
SpareBank 1-alliance will be the fourth largest banking
and financing group in Norway with solid geographical
coverage and nearly NOK 180 billion in total assets.
The agreement is contingent upon approval by the
authorities on satisfactory terms.
Main figures.
1999
NOK mill
1999
%
1998
NOK mill
1998
%
1997
NOK mill
1997
%
Net interest income
895
2.63
797
2.73
667
2.65
Net other operating income
381
1.12
179
0.62
259
1.03
SpareBank 1 SR-Bank group
Total operating income
1 276
3.76
976
3.35
926
3.67
Total operating costs
622
1.83
527
1.81
493
1.96
Profit before losses and write-downs
654
1.93
449
1.54
433
1.72
56
0.17
72
0.25
-5
-0.02
Losses and write-downs
Result of ordinary activities
598
1.76
377
1.30
438
1.74
Taxes
147
0.43
102
0.35
120
0.48
Profit for the year
451
1.33
275
0.94
318
1.26
Key figures.
Key figures SpareBank 1 SR-Bank group
Average total assets
Capital adequacy ratio
Core capital ratio
1999
1998
1997
33 965
29 125
25 205
12.12
11.49
15.08
8.63
8.37
9.55
Total assets December 31
36 397
31 232
26 946
Net loans to customers
32 378
28 181
23 790
Deposits from customers
19 211
17 481
15 199
3 037
2 548
2 647
Return on equity *
21.8
14.9
19.1
Income per cost krone **
1.86
1.92
1.76
Cost per income krone
0.54
0.52
0.57
Number of man-years
677
669
667
Net equity and subordinated loan capital
57
57
56
Market price at the close of the year
Number of offices
253
192
240
Profit per primary capital certificate (Parent bank) ***
40.4
26.5
30.0
Dividends per primary capital certificate
19.0
17.0
16.0
Allocated to the dividend equalization reserve per primary capital certificate 21.4
9.5
14.0
Primary capital certificate ratio ****
64.8
66.6
68.6
Book equity per primary capital certificate (Parent bank) *****
193
172
163
*
**
***
****
*****
Profit for the year as a percentage of average equity.
Total operating income excluding net exchange and capital gains divided by total operating costs.
Profit for the year multiplied by the primary capital certificate percentage and divided by the number of primary capital certificates
Primary-capital-certificate capital plus the dividend equalization reserve divided by the bank’s equity ex. savings banks reserve.
Primary-capital-certificate capital multiplied by the primary capital certificate percentage divided by the number of primary capital certificates.
The figures for 1997 and 1998 have been converted to reflect the new accounting act.
3.
A bank for everyone.
«We will do our utmost to
ensure that the customers
in our region always have
a competitive financial
partner with local ties.»
SpareBank 1 SR-Bank consolidated its position in
1999 as the bank for everyone in our region. We are
happy to see the good results and progress made in
the quality of the services provided to the customers.
We have set an ambitious goal; we want to be the
recommended bank for our customers. Thus, we aim
high. A motivated and competent organization works
hard every day to meet the customers' needs. The
markets are undergoing major changes. New products
are added and the customers' needs change – also
depending on what phase of life they are going
through. Our challenge as a bank is to be able to
offer our customers competitive products and good
counseling in a world where framework conditions
and the competition change with an enormous speed.
Closeness of a local bank
The technological development entails major changes
in how we meet our customers. The Internet bank is
in the process of taking over many of the simple and
traditional banking operations. The number of transactions via the Internet bank is currently increasing by
20 percent per month and will in a short time exceed
the number of transactions on bank premises. This
will of course change the workday for many of our
employees. However, we are not of the opinion that the
position of the local bank is threatened by technological changes, but the contents of the tasks will be
changed. We believe that future customers will need
more counseling. Good advice is based on trust and this
is where the human factor is essential. Our ambition
is clearly stated; through the closeness of the local
bank and its knowledge of the market, we wish to be
the leading financial partner for private and corporate customers. Through good advice and good financial solutions, we will contribute to improved private
finances and improved profitability for our customers.
Strength of a large-scale bank
Development of technology, good products and a strong
brand name is expensive and these are important forces
that explain concentration and mergers within the
financial industry. Through the SpareBank 1-alliance
and collaboration with FöreningsSparbanken in
Sweden, we have established Scandinavia's leading
banking alliance. This is not goal in itself, but a
means of reaching our local goals. We want to take
advantage of the economies of scale without the disadvantages associated with large mergers.
Through the SpareBank 1 Alliance we are offered
competitive products and cost-effective technological
4.
solutions adapted to the future requirements
regarding good banking operations.
Financial partner with local ties
Our region enjoys the benefits of a very competitive
financial services industry with both local, national and
international players. This is good for the customers.
Through the SpareBank 1-alliance, SpareBank 1
SR-Bank is now a competitive financial partner with
local ties. We want to combine the closeness of a
local bank with the strength of a large-scale bank.
It is essential for us that all decisions concerning the
customers are based on local ties.
We are of the opinion that a financial alternative
based on our model warrants a role within this
competitive picture. We will do our utmost to ensure
that the customers in our region always have
a competitive financial partner with local ties.
The bank for everyone
SpareBank 1 SR-Bank is currently the leading bank
in the region. We want to strengthen this position,
both in relation to private customers and industry and
commerce. Industry and commerce are facing major
challenges in the years ahead, and many new jobs
must be created through innovations and offsprings.
We want to be a good financial partner for business
development and setting up house in our region.
Through the SpareBank 1 group's acquisition of Vår
Bank og Forsikring, we have a good foundation for
strengthening the position in our region even further.
We are significantly stronger in the insurance market
and make contact with large, new customer groups
with a need for good financial products.
We want to become an even better bank and to consolidate our position as the bank for everyone and we
are making good progress. You, the customer, decide.
We will always do our best to meet your expectations
in order that you safely can recommend us to your
best friends and connections.
Stavanger, February 2000
Terje Vareberg
Managing Director
Ryfylke is a growing region. We want
to be a bank committed to the local
community. We have offices in all
municipalities in Ryfylke. General
Manager Njål Skår in Årdal is head
of an active local bank.
«The airport is hub of action!» The
branch bank at Stavanger Airport at
Sola is the «latest addition to the
family» and has customer-friendly
business hours. Foreign currency and
credit-cards can be collected here
prior to travelling abroad.
SpareBank 1 SR-Bank’s group management and staff have offices in Bjergsted
Terrasse in Stavanger.The head office is also
a meeting place for business and industry.
Head picture: The bank’s top management listens to customers. Managing
Director Terje Vareberg talking with a
customer at the local office at Randaberg.
A bank for all generations.
«We value good customers
that have shown us their
trust by using SpareBank 1
SR-Bank as their main
bank. As more and more
people elect to use electronic bank services,
the bank’s operations
will be less costly.»
SpareBank 1 SR-Bank was founded as a result of
22 local savings banks joining forces in 1976, and
even more banks have joined over time. Thirty years
later, in 1996, the bank joined the SpareBank 1alliance together with other long-established savings
banks. The oldest bank is Egersund Sparebank which
celebrated its 160-year anniversary last year.
For generations this bank and the other savings
banks have safeguarded our customers' money.
SpareBank 1 SR-Bank's vision encompasses the core
values from the local savings banks: «SpareBank 1
SR-Bank shall be regarded by the customer as the
recommended and leading bank within its market».
problems and opportunities. Elements include being
young, going to school, getting a job, buying a house,
having children, becoming grandparents and retiring.
Our private finances are affected in many ways as we
pass through these phases. As a bank we are required
to adapt our products to the phases our customers
are going through and their everyday finances.
The bank for children
and young people
Small children need to learn good habits regarding
saving money early on. For many years Sparius was
their trusted companion. Today their new savings
companions are called Labb and Line, and currently
the new savings club has more than 26,000 savings
friends. We have introduced Labb and Line
Preferred customers programs
Market share in the private customer
Barneforsikring (Children's Insurance) and
(number of customers)
market in Rogaland and adjacent muniwe will introduce Labb and Line mutual
cipalities in Hordaland and Vest-Agder
fund savings in the future. Mutual
50 000
SpareBank 1
fund savings for children is a new
SR-Bank
40 000
12,0%
but very exciting product for
Others
30 000
8,0%
many. It is all about getting
Haugesund
20 000
6,0%
42,0%
a good start in life. Last year,
3,0%
10 000
Sandnes
children between eleven
3,0%
and fifteen were offered
0
Fokus Bank
26,0%
Age 0-10 11-15 16-34
1818membership in – you
Postbanken
guessed it, ElleveFemtenLabb
Elleve På Egne Privat Privat
& Line Femten
Ben
Pluss Ekstra
Source: Norsk Gallup
Klubben (the ElevenDnB
Klubben
FifteenClub). Currently,
this club has almost
This vision focuses on the customers and their needs. 9,000 members, and it keeps on growing. The prodThe bank is founded on trust, quality, close customer uct is adapted to the customers' young age and the
relations and local ties. Even though the bank has
process of becoming more financially independent.
local ties, it is also facing the world at large. But the
main focus is our customers from Rogaland and we
Students and other young people just starting out
have now taken care of them for 160 years.
have been very receptive of our «På Egne Ben»
Currently, our customers include almost half the
(On Your Own) program, which is a unique preferred
population of Rogaland. SpareBank 1 SR-Bank has
customer program for young adults. More than
a strong local presence with 54 offices in 26 munici- 12,000 customers above 16 years of age signed up
palities ranging from Ølen to Flekkefjord. We wish to for the product in the past year. They have been
maintain a close physical presence and accessibility
assigned their own advisor and receive an offer
in the years to come, while we simultaneously
regarding favorable home-ownership savings contracts.
develop a new electronic bank channel. We wish to
When they need their own home, SpareBank 1 SR-Bank
make it possible for our customers to chose how they offers the market's best financing (up to 90 percent
want to use the bank at any given time – both
of the value of the home) as one of the benefits of
regarding automated self-service and personal
På Egne Ben. For many years, the bank has supported
problem-solving and counseling.
various youth activities related to sports, culture and
education. This has benefited young people and we
We have many different customers and SpareBank 1
will strengthen our efforts on behalf of young people
SR-Bank wants to be «a bank for everyone». Life has many and competence training in the near future through
phases – characterized by different circumstances,
a dedicated endowment fund.
6.
Good savings habits last a lifetime.
Children now have Labb and Line
piggy banks. When the piggy banks
are emtied the children receive
prices. Labb and Line will release a
CD in the year 2000 with fairy tales
and music. Saving is fun!
When I am 13 I can have my
own membership card in the
ElleveFemten Klubben (ElevenFifteen
Club). When I am 16 I can join the
«På Egne Ben» (On Your Own)
program.
SR-Nettbank now has more than
20,000 users. It is practical to sit at
home and have an overview of your
own accounts. The bank’s job is to be
an adviser, not a giro handler.
Head picture: The bank council in
Haugesund handed out reflector badges
to six-year olds when school started.
Children now have a Labb and Line
train. SpareBank 1 SR-Bank made an
agreement with the local bus service.
Children all over the county have
something to look forward to.
«På Egne Ben» (On Your Own) is tailored
to young people starting out. Young
people from the age of 16 can become
members. After having been a member
and saved under the BSU scheme, SpareBank 1 SR-Bank can offer the banks´s
most favorable housing loan.Your own
personal advisor is part of the bargain.
Head picture: Our oldest customers
need a good bank. A bank that also
offers social events and activities.
«Den Gyldne Spaserstokk» (Golden
Walking Stick) is a popular initiative
for senior citizens.
Good customers shall benefit
We value good customers that have shown us
their trust by using SpareBank 1 SR-Bank
as their main bank. As more and more
people elect to use the electronic
banking services, the bank's
operations will be less costly.
This means that we can offer
our established customers
even better products and
services in the preferred
customer programs called
Privat Pluss (Private
Plus) and Privat
Ekstra (Private Extra).
Deposits from private customers in
SpareBank 1 SR-Bank group (NOK million)
Deposits from private customers
per region in SpareBank 1 SR-Bank
11000
Stavanger
10000
15,4%
Haugalandet
9000
34,5%
10,2%
8000
7000
Ryfylke
Sør
13,1%
6000
Jæren
26,5%
5000
1996
1997
1998
1999
Gross lending from private customers in
At the end of the year,
37,000 and 6,500
30000
customers respectively
25000
has chosen to become
20000
customers in the
15000
preferred customer
programs. The main
10000
element in this concept
5000
is a dedicated advisor
0
who is very familiar
1996
1997
1998
1999
with the customer's
personal finances.
The customer will
receive personal
counseling related to beneficial investments, loans,
Forvaltning in November. We have well-managed
insurance, payment services, etc. Many of our oldest
products for customers that wish to place their savcustomers would like to receive offers regarding
ings for short or long terms. New mutual funds and
social events and activities outside of the ordinary
stock-indexed bank deposits, together with Unit Link
banking activities. Every year SpareBank 1 SR-Bank and Livrente (Life Annuity), are only a few of the
organizes trips to Norwegian and foreign destinations. products our customers can chose among.
Locally, many senior citizens collect points in order
to qualify for «Den Gyldne Spaserstokk» (the Golden
New technology creates new opportunities for
Walking Stick).
both the bank and the bank's customers. Internet
and Nettbank (the Net Bank) are examples worth
It’s up to the customer
mentioning. In 1999 as many as 17,000 customers
SpareBank 1 SR-Bank has a broad range of products performed the most common banking services from
adapted to customers in all phases of life. We emphasize their own PC. We welcome this development and are
the importance of being the bank for everyone. Every preparing for developing the Internet services even
local office can offer all financial services to the customer more in cooperation with FöreningsSparbanken.
where he or she lives, whether this concerns savings, There is a great potential and we have seen just
loans, life and non-life insurance, payment services or the beginning of a totally new way of distributing
real estate services. The bank received almost 8,000
banking services. However, it is the customer who
new non-life insurance customers in 1999, and we
decides how he or she wants the menu prepared
introduced 10 new mutual funds from Odin
– electronic or personal – or both.
«We emphasize the
importance of being the
bank for everyone. Every
local office can offer all
financial services to the
customer where he or she
lives, whether this concerns
savings, loans, life an nonlife insurance, payment
services or real estate
services.»
9.
A bank for
business and industry.
«In 1999 SpareBank 1
SR-Bank group had a
growth in lending to
business and industry of
7.6%. Growth in deposits
for the same year was
7.7%. Loans to business
and industry account for
about 36.3% of the bank’s
total loans.»
When local industry and commerce do well,
SpareBank 1 SR-Bank does well. That is the way it
is when we do business in the same market and are
mutually dependent on each other. We have a strong
involvement in local industry and commerce and are
very interested in making a contribution to the future
development. As part of the local industry and commerce, we have a close relationship with the businesses. We know the companies and their line of
business from the inside and are able to make quick
decisions when needed. Our corporate customers
have taught us that accessibility is the most important product a bank can supply. This is something
we intend to maintain and strengthen in the future.
Building networks
Our position within local industry and commerce is
the basis for a unique network. As a large and local
business bank, we probably represent the largest
business network in the district. It gives us the
opportunity to create a forum for companies that will
benefit from talking together. We regularly initiate
contact between customers and organize various
gatherings and professional seminars. Our hope is to
contribute to general competency training and to
establish relations that will hopefully create new
business opportunities.
In this connection, we would mention our breakfast
meetings which are held about 6-8 times a year.
Several well-known local and national speakers
have participated at the meetings. Several
Gross lending corporate market in
Deposits corporate market in
seminars have been held as part of
the business sector alliance in
15000
10000
SpareBank 1.
12500
9000
10000
8000
7500
In addition to building networks among companies
and increasing expertise,
6000
the events also profile
5000
SpareBank 1 SR-Bank
4000
as a business bank and
1998
1999
1996
1997
1998
1999
strengthen the relationship between the bank
and its customers. In
our industry it does not take long before a successful
product has been copied by several competitors.
In 1999 we performed a market position survey in
Lasting success is dependent upon continuous
cooperation with Norsk Gallup in order to acquire
knowledge about the bank's position in relation to its development of people and human relationships.
competitors with a focus on market share, preference
share and product potential in the corporate market. Loans and financing
We have a wide range of products and services to
As many as 1200 interviews were conducted with
ensure correct financing for companies. Combined
randomly selected companies within our market
with our extensive expertise within various industries,
area. The following main conclusions emerged:
this makes us a strong partner. By customizing our
products, we can solve the financing challenges
Knowledge about SpareBank 1 SR-Bank as a
facing industry and commerce, and we are happy
corporate bank has increased significantly and
to contribute input on how a company can reduce
the development has been especially positive
costs by efficient use of financing products.
among large businesses.
The bank has strengthened its position in relation
Investment and asset management
to its competitors. The profile is increasing and it
The interest in alternatives to the traditional placeshould be possible to convert it into an increased
ment of money in the bank has shown a strong
market share.
increase in recent years. The range of management
The bank's market share is 39% measured in
products has expanded significantly with many new
relation to the number of businesses within the
securities products and capital instruments.
market area.
7000
5000
2500
0
1996
1997
•
•
•
10.
The IT company Lan-x AS in Sandnes
started operations in September 1998. Its
objects are to conduct sales of goods and
services within information technology.The
company currently has 17 employees and
sales of nearly NOK 43 million. Lan-x aims
at being the preferred professional body
within structured data processing. Its customers consist of more than 200 companies.
Brødrene Risa A/S is one of the largest
contractors in Rogaland and acquired
AS Betong in 1999. The Brødrene Risa
group is involved in large and small
developments, cultivation, road construction, concrete production, piling
and construction of buildings. The
group’s headquarters are in Nærbø.
Our coast still provides fertile conditions
for rich and diverse business and industry.
The entire value chain from raw material
to finished product is an interesting
commitment area for the bank.
Head picture: Our foreign exchange department is the only one in Rogaland that
trades directly in the international market.
In 1999 SpareBank 1 SR-Bank introduced a new concept for measuring
and managing strategy and operations: Balanced Scorecard. The process
and system are among the leading
and most efficient in Norway today.
SpareBank 1 SR-Bank is committed
to investment and active management. Christoffer Hovda is a good
representative of our expertise in
this area.
BedriftsNett simplifies banking services
for our corporate customers. It is a very
practical solution for efficient payment
transmission services.
Head picture: Hydro Seafood
Rogaland AS is the largest player in
fish farming in Rogaland and among
the 10 largest in Norway.
At the same time it is possible to choose among
more types of bank deposits
than ever before.
SpareBank 1 SR-Bank has faced
up to the challenge and has
made a considerable effort
within this area, including
hiring several new staff
members. We have a full
range of products and we
expanded the product
line with an Active
Management concept
in 1999.
We emphasize the importance of analyzing and
evaluating the situation for each individual company.
Working together with the customer, we prepare
the right combination of products – a combination
that meets the company's requirements regarding
liquidity, return and risk.
Payment services
All businesses have a need for secure and efficient
management of cash flows. Up-to-date information
on payments through active liquidity management
increases the demand for efficient banking products.
SpareBank 1 SR-Bank offers a broad and flexible
range of money transfer services. The services will
be combined and adapted to the needs of the
individual company.
Foreign exchange
and interest instruments
SpareBank 1 SR-Bank deals directly with the international currency and interest market. Our Foreign
Exchange Department has highly qualified personnel
with many years' experience in this field and we
Gross lending in SpareBank 1 SR-bank group per. 31.12.99
1,0%
5,7%
Wage-earners
4,4%
Service industries
8,7%
Industry
16,4%
63,7%
Primary industries
Commerce and hotels
The business market sector includes:
• Primary industries of agriculture
/forestry + fisheries/fish farming
• Industry: mining/recovery + industry
• Service industries: foreign shipping,
pipeline transportation, other
transportation
+ property management
+ service industries
Public sector
follow the market around the clock. We have a full
range of products that meet the demand in the field.
In line with increased internationalization, the
requirements regarding interest and foreign exchange
management is higher than ever for companies. Our
job is in this context is to actively eliminate as much
as possible of the risk through active counseling and
use of hedging instruments.
SpareBank 1-alliance – Close ties with
industry and commerce in all of Norway!
Close collaboration on the local level and a national
and international network – these are some of
the benefits SpareBank 1 offers businesses. The
SpareBank 1-alliance is a strong alliance. By
virtue of these elements, we can offer a full and
effective range of products for all financial services.
Our alliance with FöreningsSparbanken improves our
services within the capital market and overseas
services, while at the same time contributing with
special expertise within various lines of business
and industry.
«The bank emphasizes
that the credit authorizations shall be as closely
connected with the
customer as possible.
It is positive for both the
customer and the bank
that decisions are made
by employees with local
knowledge and close
familiarization of companies in their community.
This competitive edge has
led us to strengthen our
market position in the corporate marked in 1999.»
13.
Directors Report for 1999.
«1999 turned into a
good year for SpareBank 1
SR-Bank.The profit from
the ordinary banking operation indicates an efficient
bank as regards sales and
operations. Combined with
stock market gains and
good management of
the bank's securities, this
produced an unprecedented
profit for SpareBank 1
SR-Bank.»
Well run banking operation produce unprecedented earnings
Operating profit of NOK 598 million before tax
SpareBank 1 SR-Bank is the district's savings bank
12% and NOK 1,100 million in increased private deposits
NOK 410 million in sales of securities products
15% increase in lending
NOK 120 million in capital gains
Cost percentage of 1.83
21.8% return on equity capital after tax
NOK 40.40 in profit on primary capital certificates
The Board proposes to pay NOK 19 in dividends
•
•
•
•
•
•
•
•
•
•
Strong alliance strengthens distribution and product development
Acquisition of 51% of First Securities
Acquisition of Vår Bank og Forsikring
EiendomsMegler 1 becomes nationwide chain
•
•
•
Earnings and growth
The SpareBank 1 SR-Bank group's profit before loss
and write-downs was NOK 654 million, which is NOK
205 million more than last year's profit of NOK 449
million. Net losses of NOK 62 million and unspecified
loss allocations in the amount of NOK 40 million,
together with gains from capital assets worth NOK 46
million, resulted in a group profit before tax of NOK
598 million. Tax costs are estimated at NOK 147
million, which gives a profit for the year of NOK 451
million. Total assets increased in 1999 by 17% to NOK
700
Operating profit in the
800
36.4 billion. At the end of the year, the group's equity
and subordinated loan capital was NOK 3,037 million
and the capital adequacy ratio 12.12%.
1999 turned into a good year for SpareBank 1 SRBank. The profit from the ordinary banking operation
indicates an efficient bank as regards sales and operations. Combined with stock market gains and good
management of the bank's securities, this produced an
unprecedented profit for SpareBank 1 SR-Bank. The
result also reflects an organization with products, services
and customer relations adapted to the market for private
Man-years in SpareBank 1 SR-Bank
and subsidiaries for the last five years
3500
600
750
3000
500
700
2500
400
650
2000
300
600
1500
200
550
1000
100
500
500
0
450
1995
1996
1997
1998
1999
Operating profit before losses and write-downs
Operating profit after losses and write-downs
14.
Equity and subordinated loans
in the SpareBank 1 SR-Bank group
0
1995
1996
1997
SpareBank 1 SR-Bank
Subsidiaries
1998
1999
1995
1996
1997
1998
Equity
Subordinated Loan Capital
1999
and corporate customers. A 15% growth in lending
resulted in increased market shares in a region with a
continued high level of activity and the 10% growth in
deposits and new growth in alternative forms of savings
indicate customers that have solid finances. Total
operating income (excluding gains from securities) increased by 20% and cost-effectiveness was maintained
at the same level. Gross default remains stable. Due
to the improved balance, the group has increased the
unspecified loss allocations by NOK 40 million. Market
surveys confirm the bank's strong position as the
leading bank in the region.
Norwegian economy
and framework conditions
The Norwegian economy experienced slower growth
in 1999 as expected. The growth for the gross
domestic product was reduced to less than 1% in
1999 as compared with the long-lasting average
annual growth for the Norwegian mainland of more
than 3%. However, the temperature in parts of the
economy was still high and the likelihood of a significant downturn has been reduced. The growth in public and private consumption will ensure that labor
market demand in respect of the service industry and
the public sector will remain high. A turnaround in
the Norwegian economy will probably be limited to
industry due to lower profitability and weakened
competitiveness, but will also be due to permanently
reduced investments in the petroleum sector. This
will entail a significant restructuring of the shipbuilding industry and parts of the engineering industry.
The consequences for the affected companies will
depend on their ability to restructure their activities.
The development in Rogaland
At the beginning of 1999, the businesses in Rogaland
were characterized by a high level of activity, but clearly
expecting a change in climate. This was related to an
expected unfavorable development within the engineering
and agriculture industry and for production of ships and oil
platforms, all of which are very important for the county.
Even though employment was satisfactory in 1999, the
activity level at the beginning of 2000 is significantly lower.
Few new orders are being placed, the oil companies
are adapting to new framework conditions
and industry is being restructured by
mergers of national and international companies. The effects
«Alliance within the Norare first seen as lower
wegian and Scandinavian
employment levels and
alliance results in increased
power and expertise, which
a reorganization of the
can be offered to current
labor market. The
and new groups of custooil industry has
mers.»
announced start-up
of new development
projects, but the
effects of these will
not be noticeable
in the short term. The investment level will nevertheless be considerable lower than the peak years in
1998 and 1999.
With a leveling off of the petroleum investments in
2001, positive effects on household consumption due
to lower interest rates, somewhat stronger export and a
continued moderate growth in public consumption and
employment, the growth in the Norwegian economy
can again reach normal levels in 2001. Even though
Rogaland probably at first will not benefit as much
from the more positive outlook as the rest of the
country, the fall in employment can be softened and
the increase in unemployment reduced.
Continuous positive development in the nineties
has provided businesses and private households with
solid finances that can handle a short-term downturn.
«In 1999 the group
initiated an extensive
project which will reassess
and adjust the most important work procedures.
This is done in order to
increase the efficiency and
strengthen the level of
expertise and thus the
group's competitiveness.»
Group development
The SpareBank 1 SR-Bank group's performance has
been characterized by a very high level of activity in
1999. The group continued its emphasis on the need to
adapt to the market's demand for products and services
delivered quickly and effectively in close cooperation
with the customers. Advantageous programs for fullservice customers, new savings plans and, not least, the
focus on young people and customers starting out have
been well received. Our home financing plans have
improved and closeness through personal customer
follow-up has been prioritized. The challenge in the
corporate market has been to strengthen the relationship with the traditional customer in the market for
small and medium-sized businesses, while simultaneously offering a wider range of counseling services
and products to the larger businesses. Alliance within
the Norwegian and Scandinavian alliance results in
increased power and expertise, which can be offered to
current and new groups of customers. This entails participation in projects requiring high levels of expertise
and substantial capital supply, as well as products in line
with the broad range of Norwegian industry and commerce. Through the Norwegian and Scandinavian
alliance, the SpareBank 1 group has the capacity to
participate in the restructuring taking place in industries
such as the power industry and the aquaculture industry.
In 1999 the group initiated an extensive project
which will reassess and adjust the most important business processes. This is done in order to increase the efficiency and strengthen the level of expertise and thus the
group's competitiveness. This work is supported by new
technology developed in cooperation with the alliance.
Over the next two years, the alliance will focus on business processes that make use of common technology.
Market surveys in 1999 confirm that SpareBank 1
SR-Bank is on the right track and is increasing its market
shares. The same surveys also show that the group must
develop even further in order to satisfy increasingly
higher expectations from the customers regarding active
cooperation in order to support private households and
the region's industrial and commercial development.
15.
«On 22 December 1999,
an agreement was signed
whereby SpareBank 1
Gruppen AS purchased
the shares in VÅR Gruppen
ASA for NOK 3.3 billion.
In connection with the
purchase, a long-term,
comprehensive strategic
and business-related
alliance will be established
between SpareBank 1
Gruppen AS and LO/NKL
(Norwegian Federation of
Trade Unions/ Norwegian
Co-Operative Union and
Wholesale Society).»
SpareBank 1 Alliance
The SpareBank 1-alliance is a Scandinavian bank
and product alliance where the SpareBank 1 banks in
Norway and FöreningsSparbanken AB in Sweden cooperate
through the jointly owned holding company SpareBank 1
Gruppen AS. The primary objective of the SpareBank 1alliance is to ensure that the individual banks, by being
highly competitive, profitable and solid, remain independent
with regional ties. At the same time, the SpareBank 1alliance represents a competitive alternative on a national
and Scandinavian level. The alliance is now a strong,
Scandinavian alliance – with solid finances, a very broad
customer base and a competitive range of products.
Building a Scandinavian alliance
An agreement was signed between the Norwegian
SpareBank 1 banks and the Swedish commercial bank
FöreningsSparbanken AB in August of 1998. As of 24
February 1999, FöreningsSparbanken AB became an owner
in SpareBank 1 Gruppen AS through a private placing
of NOK 720 million where FöreningsSparbanken
bought a 24% interest in SpareBank 1 Gruppen AS.
This resulted in a reported gain for SpareBank 1 SRBank of NOK 52 million. The transaction does not trigger any tax-related costs. The other owners kept 15.2%
each. The agreement with FöreningsSparbanken was a
result of the desire to strengthen the regional/local
competitiveness within the banking industry for both
countries. The alliance was initiated because of the fast
pace of changes within the financial services industry.
The alliance includes joint development of products
and expertise. Due to the establishment of a wholesale
bank in Oslo, FöreningsSparbanken will provide
additional strength for the SpareBank 1-banks within
the money and capital markets as well as for overseas
services. Within the framework of the activities of the
branch, the alliance will establish a joint process for
handling major Norwegian businesses.
ment regarding cooperation and integration between
the two groups. On 22 December 1999, an agreement
was signed whereby SpareBank 1 Gruppen AS purchased the shares in VÅR Gruppen ASA for NOK 3.3
billion. In connection with the purchase, a long-term,
comprehensive strategic and business-related alliance
will be established between SpareBank 1 Gruppen AS
and LO/NKL (Norwegian Federation of Trade Unions/
Norwegian Co-Operative Union and Wholesale Society).
If the authorities approve the acquisition on satisfactory
terms, SpareBank 1 Gruppen AS will be owned by
Sparebanken Nord-Norge, Sparebanken Midt-Norge,
Sparebanken Vest, Sparebanken Rogaland and
Samarbeidende Sparebanker AS with 13% each, while
the Norwegian Federation of Trade Unions owns 10%
and FöreningsSparbanken owns 25% (after exercising
the option of increasing its interest by 1%).
Profit performance
The SpareBank 1 SR-Bank group's profit performance
was very positive for all of 1999. The development within
both the private and the corporate market was better than
expected. This has to do with the fact that there was
considerably less of a decline in business activity than
first expected as well as better framework conditions
through lower interest rates. The positive development
also confirms that the group's strategy with a marketoriented organization with products and services adapted
to the customer is the right one. The group's profit of NOK
654 million before losses and write-downs has been achieved
as a result of good growth in interest income and other
income, a high level of cost-effectiveness and few losses.
Net interest income for the group rose by NOK 100
million to NOK 895 million, an increase of 12%.
Compared with the average total assets, net interest
income in 1999 constituted 2.63% as compared with
2.73% in 1998. The fall in the interest margin reflects
most of all the competition in the market. The interest
margin is also affected by the growth in credit to major
Acquisition and integration
customer commitments.
of VÅR Gruppen ASA
The group's commission income increased in
At the end of November 1999, the boards of SpareBank 1 1999 to NOK 231 million. The underlying growth
Gruppen AS and VÅR Gruppen ASA approved an agree- within payment services is in the order of 25%.
Gross loans to
customers in the
1,0%
Wage earners
Service industries
Other industries
5,7%
Public sector
16.
Deposits from
customers in the
1,7%
4,4%
6,9%
10,8%
8,7%
5,0%
3,9%
8,5%
18,5%
8,6%
Primary industry
Commerce and hotels
Guarantees
in the
16,4%
63,7%
1,8%
57,0%
60,3%
17,0%
Geir Worum
Tor Haver
CHAIRMAN
VICE-CHAIRMAN
However, price reductions through the programs for
preferred customers, which includes giving full-service
customers free use of electronic payment services within
certain limits, reduced the growth for commission income
to 14%. The good economy and the development on
the stock exchange increased savings in securities and
insurance over the last half year. The group's total sales
of alternative savings products were NOK 800 million.
Sales of non-life insurance increased and provided
commission income in the amount of NOK 10 million
last year.
At the end of the year the bank's holding of shares,
primary capital certificates and securities were posted at
NOK 269 million. The return of 50.8% including primary
capital certificates is 5.3 percent better than the total gain
on the Oslo Stock Exchange and resulted in NOK 96 million in capital gains last year. The holding of certificates
and bonds valued at NOK 1,902 million, which covers
the liquidity requirement, provided capital gains in the
amount of NOK 1.4 million. Currency trading, for customers and the bank, gave a gain of NOK 25 million in
1999. Total other income accounted for 30% of the group's
income compared with 18% in 1998.
Operating costs for the group in 1999 amounted
to NOK 622 million, an increase of NOK 95 million
compared with 1998. Measured in relation to the
bank's total assets, this constituted 1.83%, the same
ratio as for last year. Measured in relation to total
operating income, the costs amounted to 49%. The
nominal increase in costs is mainly a result of wage
settlements and expertise, technology and process
costs. Costs associated with profit-oriented bonuses,
including social security costs, have increased by NOK
18 million to NOK 34 million for the group. IT costs
have increased by NOK 14 million due to increased transaction volumes. Costs associated with business process engineering is estimated to be NOK 10
million. Investments in new
processes and technology
«At the end of the year
are necessary in order to
the bank's holding of
shares, primary capital
maintain the quality of
certificates and securities
the group's services
were posted at NOK
and will provide ad269 million.»
ditional capacity.
The current level of
cost-effectiveness
will be maintained.
Dominikus N. Bjordal
Default trends are still satisfactory. Net losses of NOK
102 million include an increase in unspecified loss allocations of NOK 40 million. During the year, default over
90 days increased by NOK 45 million to NOK 284 million.
«The real estate agents in
the SpareBank 1-alliance
have established a nationwide chain from 1999
under the name
EiendomsMegler 1.»
Balance sheet
The group's total assets increased by 16.5% to NOK
36.4 billion in 1999, while the increase for the bank
was 18.9% to NOK 34.8 billion. Over the course of the
year, lending to the private market increased by NOK
3,412 million (19.5%) and to corporate and the public
sector by NOK 844 million (7.6%). This means an annual
growth of 14.9% in the group's lending. Deposits from
customers in 1999 have increased by NOK 1,730 million
divided between NOK 1,136 million for private customers
(11.6%) and NOK 594 million for businesses (7.7%).
This is equal to an overall annual growth of 10%.
Risk Management
Credit risk is managed through the Board's guidelines for
credit policy, risk profile and authorizations. The guidelines are managed through established procedures for credit
ratings, credit committees and reporting of risk classes.
The group's foreign exchange activities are conducted according to a policy with limited positions on
its own books. The holding of bonds is adjusted to the
authorities' requirements regarding liquid reserves.
The interest risk for the bank's bond portfolio is
reported to the Board on a monthly basis. This risk has
been moderate throughout the past year. Investments
in equity capital securities are at a moderate level in
relation to the bank's balance sheet figures.
Subsidiaries
The real estate agents in the SpareBank 1-alliance have
established a nationwide chain from 1999 under the
name EiendomsMegler 1. SR-Eiendom A/S has
changed its name to EiendomsMegler 1 Rogaland A/S
in order to strengthen development of the brand name.
EiendomsMegler 1 Rogaland A/S is Rogaland's largest
real estate agency in both the residential and corporate
market and had a good year with more than 2000
transactions at a total value of more than NOK 2 billion.
Operating income increased to NOK 54 million, resulting in a profit before tax of NOK 9.8 million.
Westbroker Finans AS is the leading finance company in Rogaland and had total assets of NOK 2,450
million at the end of the year. The company increased
17.
Kristian Eidesvik
«SpareBank 1 SR-Bank
is characterized by
employees who are
willing to adapt and have
a good service and sales
attitude.»
Ole Gladhaug
its total assets by NOK 77 million, an increase of 3,3%.
The main products are leasing, special financing, loans
with mortgage in real property and vehicles, and loan
brokering. The company offers products to the corporate, public and private sectors. The company achieved
a profit before tax of NOK 37 million, which gives
a return on equity capital of 20.4%.
New accounting act
The new Accounting Act was implemented on 1 January
1999. The new accounting principles increased the equity capital for the group by NOK 55 million because of
capitalization of deferred tax assets. The corresponding
result for the bank is NOK 153 million due to capitalization, as mentioned above, and valuation of subsidiaries
and affiliates at NOK 98 million based on the equity method.
On 1 January 2000 Terje Vareberg assumed the
position of Managing Director.
Capital adequacy
and capital market funding
At year-end, the group's capital adequacy ratio was 12.12%,
of which 8.63% was core capital. The corresponding
key figures for the bank at the end of the year were
12.92% and 8.64% respectively. In the third quarter,
the bank redeemed a perpetual loan in the amount of
USD 60 million. At the same time, the bank raised a
10-year subordinated loan in the USA in the amount of
USD 100 million. The loan matures in 10 years and is
stepped up after 5 years. This is the first loan the bank
has raised in the USA. During the year, the bank
increased long-term Norwegian bond funding (maturity
more than 12 months) by about NOK 1 billion. In addition, the bank raised a five-year loan in the amount of
USD 100 million in the international market.
Employees and working environment
At the end of 1999 the group had 745 employees,
corresponding to 677 man-years. The bank's staff has
been increased by four man-years to 604 man-years
during the course of the year.
Since 1993 the bank has performed annual
organization and working environment surveys, which
show that the employees have a good relationship to
the bank and good faith in the bank's competitiveness.
SpareBank 1 SR-Bank is characterized by employees
who are willing to adapt and have a good service and
sales attitude. They are very satisfied as regards job
18.
Åse Holmane
content and the working environment. Absence due to
sickness is at 3.29%, which is low compared with other
financial institutions. Cooperation with the employees
and their organization has been very good. During the
course of 1999, a great number of employees have
received extensive training, and the formal and professional expertise has been strengthened even further.
Currently, about 70% of the bank's employees have
further education at the university level.
We are actively working on Health, Safety and
Environment measures. In 1999 the bank experienced
three robberies and the focus has mostly been on robberies and the threath of robberies. The employees have
made a great effort vis-à-vis the bank's customers
throughout the year and this has resulted in increased
confidence in the bank and strengthened the bank's
position as the leading bank in the region. The Board
would like to thank the employees for their solid commitment throughout the year. This has contributed to
improved service for the customer and a good financial
result for the group. The Board extends its gratitude to
Arne Norheim for doing an outstanding job for
SpareBank 1 SR-Bank since 1991. Geir Worum was
elected as the new Chairman on 23 September 1999.
In the opinion of the Board, the bank's activities do not
pollute the external environment.
Bank advisory councils
The cooperation with the local bank councils ensures a
close relationship with the local community and the
concerns of the bank's customers. The councils also
function as an important means of communication in
the ongoing change process and contribute to ensure
that all opportunities in the local market are recognized.
Primary capital
Primary capital certificates equivalent to 39% of the
outstanding number were sold in 1999. This is a decline
of 48% compared with the previous year. The number of
primary capital certificate holders increased from 5,698 at
the beginning of the year to 5,901 at the end of the year.
The percentage of primary capital certificates owned by
foreigners was 10.1%, while 44.2 % resided in Rogaland.
The 20 largest owners owned 30.9% of the primary capital.
SpareBank 1 SR-Bank emphasizes the importance
of competitive dividends. In the proportional distribution
between cash dividend and the dividend equalization
reserve, the bank's equity capital development will be
Magne Vathne
Karl A. Naley
Terje Vareberg
ADM. DIREKTØR
given priority. In keeping with the bank's dividend policy,
the results of the year and the core capital, the Board
proposes to pay NOK 19 in dividends, as well as to allocate
NOK 21.40 to the equalization reserve per primary capital
certificate for the 1999 accounting year. After this
appropriation, the equalization reserve will amount to NOK
83.33 per certificate. The RISK amount as of 1 January
1999 was stipulated at NOK 27.74 per primary capital
certificate. The corresponding RISK amount as of 1
January 2000 is provisionally estimated to be NOK 28.
Application of profit/dividends
The Board proposes the following application of
Sparebanken Rogaland's profit for the year of NOK 451 mill.:
NOK million
Profit for the year
451
Dividend, NOK 19 per certificate
141
Equalization reserve
159
Endowment fund
10
The Savings Bank's reserve
137
Dividend equalization reserve
4
Total
451
Continued operations
The annual report and accounts have been issued
based on the assumption of continued operations.
This assumption is based on profit projections for
2000 and the group's long-term strategic projections
for the years ahead. The group has good solidity and
core capital and the capital adequacy ratio is good
seen in relation to the authorities' requirements.
«In keeping with the
bank's dividend policy, the
results of the year and the
core capital, the Board
proposes to pay NOK 19
in dividends, as well as to
allocate NOK 21.40 to
the equalization reserve
per primary capital certificate for the 1999
accounting year.»
Outlook for the future
The Board expects a somewhat weaker economic
development in the region in 2000. However, the
activity level at the beginning of the year provides
a good foundation for good operations. In spite of
possibly reduced employment as well as a reduced
level of activity for the petroleum sector, the Board
is of the opinion that the financial basis for the
customers is satisfactory. The foundation for good
operations in 2000 is good. The Board expects a
satisfactory result for the SpareBank 1 SR-Bank
group in 2000.
Stavanger, 24 February 2000
The Board of Directors Sparebanken Rogaland
Geir Worum
Chairman
Tor Haver
Vice-chairman
Kristian Eidesvik
Ole Gladhaug
Åse Holmane
Magne Vathne
Karl A. Naley
Terje Vareberg
Managing director
19.
Profit and loss account.
SpareBank 1 SR-Bank
1997
1998
1999
1 376
1 873
2 440
761
1 135
1 607
615
738
833
49
45
64
192
210
-55
(Amounts in NOK million)
NOTE
1999
1998
1997
Interest income
1
2 625
2 036
1 493
Interest costs
1
1 730
1 239
826
895
797
667
Net interest income
Dividends
2
27
17
20
229
Commission income
2
231
213
195
-53
-63
Commission costs
2
-66
-57
-59
59
-38
120
Net exchange and capital gains
2
120
-38
59
13
10
18
Other operating income
2
69
44
44
258
174
368
381
179
259
873
912
1 201
1 276
976
926
356
376
438
3
491
416
392
36
35
41
Depreciation and write-downs
16
42
37
39
57
67
83
Other operating costs
4
89
74
62
449
478
562
622
527
493
424
434
639
654
449
433
1
75
100
Loss on loans and guarantees
5,13
102
76
-3
-2
-5
-44
Loss/gain financial fixed assets
6
-46
-4
-2
425
364
583
598
377
438
107
89
132
Taxes
147
102
120
318
275
451
Profit for the year
451
275
318
-119
-126
-141
-141
-126
-119
-3
-5
0
0
0
0
-2
12
-4
-4
12
-2
-107
-74
-159
Transferred to the savings bank’s reserve
-159
-74
-107
-87
-77
-137
Net transferred to endowment reserve
-137
-77
-87
-3
-10
-10
-10
-10
-3
-321
-280
-451
Total allocation of profit for the year
-451
-275
-318
30.0
26.5
40.4
Profit per primary capital certificate
40.4
26.5
30.0
Wages and general administration costs
7
Dividends
Paid group contribution
Transferred to dividend equalization reserve
Transferred to other equity
Geir Worum
Chairman
Tor Haver
Vice-chairman
Åse Holmane
20.
Magne Vathne
Karl A. Naley
Kristian Eidesvik
Terje Vareberg
Managing director
Ole Gladhaug
Balance sheet.
SpareBank 1 SR-Bank
1997
1998
1999
NOTE
1999
1998
1997
684
318
380
8
161
92
388
9, 11, 12, 29
32 873
28 617
24 213
ASSETS
380
318
684
Cash and claims on central banks
512
217
739
Claims on credit institutions
22 024
26 299
30 450
-258
-239
-256
Specified loss provisions
10
-262
-243
-262
-152
-182
-222
Unspecified loss provisions
10
-233
-193
-161
21 614
25 878
29 972
32 378
28 181
23 790
18
2
2
1 322
1 517
1 902
623
630
35
Gross loans to customers
Acquired assets
16
5
3
20
Certificates and bonds
14
1 902
1 517
1 322
778
Shares and ownership stakes
15
578
431
413
55
34
IMMATERIELLE EIENDELER
38
63
55
358
360
331
Fixed assets
16
335
363
360
116
80
119
Other assets
17
116
68
96
118
190
200
Advance payments and accrued income
18
200
196
122
25 096
29 247
34 761
36 397
31 232
26 946
Total assets
LIABILITIES AND EQUITY
3 274
4 021
3 922
Debt to credit institutions
19
3 921
4 443
4 089
14 468
16 547
18 045
20, 29
19 211
17 481
15 199
17 742
20 568
21 967
Sum innskudd
23 132
21 924
19 288
935
2 090
4 330
Certificates and other short-term borrowings
4 330
2 140
935
3 010
3 358
4 421
Bond debt and other long-term loans
4 684
3 658
3 160
3 945
5 448
8 751
Debt established on issue of securities
9 014
5 798
4 095
306
334
366
Other debt
430
468
354
261
194
285
Accrued costs and income paid in advance
354
264
302
124
85
95
22, 23
98
88
127
950
702
1 081
24
1 153
774
1 012
744
744
744
Primary-capital-certificate capital
744
744
744
118
106
111
111
106
118
513
590
727
Savings bank’s reserve
727
590
513
6
15
14
14
15
6
387
461
620
620
461
387
1 768
1 916
2 216
2 216
1 916
1 768
25 096
29 247
34 761
36 397
31 232
26 946
Allocation to commitments and costs
Subordinated loan capital
21
Endowment reserve
Total equity
Total liabilities and equity
25
See Notes 26 and 27 for off-balance sheet items.
The figures for 1997 and 1998 have been converted to reflect the new Accounting Act.
21.
Accounting Principles.
General
The annual accounts for 1999 have been prepared in
accordance with Accounting Act, regulations and
generally accepted accounting principles. All figures
are stated in NOK million unless otherwise indicated.
The same accounting principles are applied to the
parent bank's and the group's accounts.
The annual accounts for 1999 comply with the new
Accounting Act, which entered into force on 1 January
1999. The two preceding annual accounts have been
revised correspondingly for comparison purposes.
Consolidation
Subsidiaries
The group accounts include SpareBank 1 SR-Bank and
companies in which SpareBank 1 SR-Bank directly
and indirectly owns more than 50% of the shares or
has controlling influence on the company's operations.
The investments in subsidiaries have been consolidated
according to the acquisition method in the group accounts
and the equity method in the company's accounts.
Affiliated Companies
Affiliated companies are defined as companies in
which the bank has a long-term investment with an
ownership interest of 20 to 50 percent and in which
the bank has significant influence. Such investments
are appraised according to the equity method both in
the company's accounts and the group accounts.
In the accounts for SpareBank 1 SR-Bank the shares
in SpareBank 1 Gruppen have been appraised
according to the equity method, both in the company's
accounts and the group accounts, as the operations of
SpareBank 1 Gruppen are considerably different than
the bank's other operations where the use of the
gross method of depreciation would provide
accounting information that is not easily accessible.
Entering Income and Costs
Interest and fees are entered in the profit and loss
account as they are earned as income or accrue as
costs. Fees that are a direct payment for services
rendered are taken to income when they are paid.
Arrangement fees are taken to income in accordance
with the costs that accrue for arranging loans.
The accruals principle is applied to prepaid income
and accrued non-paid costs at the end of the year,
which are entered as debt in the balance sheet.
Accrued income is taken to income and entered as
receivables in the balance sheet.
Dividends are taken to income in the year they are
received. Dividends and group contributions from
subsidiaries, affiliated companies and jointly controlled businesses are entered directly against book
ownership interest in the associated business.
Securities and Shares
Shares, primary capital certificates and shares in unit
trusts that are traded on the stock exchange or in a
Jointly Controlled Operations
regulated market and have good ownership diversifiJointly controlled operations are financial operations cation and liquidity, are included in the portfolio and
governed by an agreement between the bank and one are appraised at market value on the balance sheet date.
or more participants, so that the bank and the partic- Securities that are not listed on the stock exchange are
ipants have joint control of the operations. No partic- appraised at the lower of original cost or market value.
ipants have controlling influence alone.
Long-term shareholdings are appraised at original cost.
The bank has established SpareBank 1 Gruppen AS
If the real value is considerably lower the original
in collaboration with SpareBank 1 Nord Norge,
cost, and the decline in value is not deemed to be of
SpareBank 1 Midt Norge, SpareBank 1 Vest and
a temporary nature, the share is written down to the
Samarbeidende Sparebanker AS.
real value. The write-down is reversed when there no
longer is a basis for the write-down.
In 1999 FöreningsSparbanken purchased 24% of
SpareBank 1 Gruppen, leaving the other banks with
Certificates and Bonds
an ownership interest of 15.2% each. The manageCertificates and bonds classified as current assets are
ment structure of Sparebank 1 Gruppen is governed
appraised at market value on the balance sheet date.
by a framework agreement between the owner banks. Long-dated bonds that have been purchased to be
The ownership interest is regarded as jointly
held until maturity have been entered at cost adjusted
controlled operations.
for amortised premiums or discounts. Premiums
22.
and/or discounts are accrued linearly over the
remaining life of the bond as a correction to the
nominal interest rate.
Losses on Loans
Loans are appraised at nominal value with the exception
of problem, non-performing and renegotiated loans.
Foreign Currency
The bank's assets and liabilities in foreign currency
are converted to middle rates as of 31 December.
Income and costs in foreign currency are converted
to NOK at the rates at the time of the transaction.
Non-performing/Problem Loans
A customer's aggregate loans are regarded as nonperforming and included in the bank's overviews of
non-performing loans when the installment or interest
due has not been paid within 90 days after the due
date or when the line of credit has been overdrawn
for 90 or more days.
Loans and other commitments that are not non-performing, but where the customer's financial situation
makes it likely that the bank will incur a loss, are
classified as problem loans.
The currency items are mainly hedged against corresponding items on the opposite side of the balance
sheet or by off-balance sheet hedging transactions.
Financial Instruments
Financial instruments include negotiable financial
asset and liability items plus financial derivatives.
Financial instruments in the balance sheet include
shares, primary capital certificates, bonds and certificates. Financial derivatives are agreements that are
entered into with financial institutions or customers
to set financial values in the form of interest terms,
foreign exchange rates and the value of equity instruments for definite periods of time. These agreements
include forward exchange contracts, interest rate swaps
(currency swaps), currency and interest rate options,
and agreements to set future interest terms (FRAs).
A distinction is made between agreements that are a
stage in own-account transactions in order to achieve
earnings through price differences and price changes
(the trading portfolio) and agreements that are entered
into in the ordinary business. Interest rate and monetary agreements are classified at the time they are
entered into as part of the trading portfolio or banking
business depending on the individual agreement. The
trading portfolio consists of certificates and bonds,
shares and primary capital certificates in the bank's
balance sheet, plus currency, interest and equity
instruments not included in the balance sheet.
The off-balance sheet portfolios of transactions are
appraised according to the market value method, and
changes in market values are entered in the profit
and loss account under the item of net profit and loss
on exchange. Agreements that are entered into to
reduce the bank's exposure to fluctuations in interest
and/or exchange rates for items in the balance sheet,
are defined as hedging transactions.
In order for monetary or interest rate agreements to
de defined as hedging transactions, the expected
trend in the value of the hedging transactions must
be closely associated with the balance sheet item that
is hedged. Income and expenses related to the hedging agreements and their respective balance sheet
items are entered in the accounts as accruals and
classified in the same way.
When loans have been have been non-performing for
more than 60 days or are classified as problem loans,
credited interest is reversed and further crediting is
halted unless the loan is covered by underlying
collateral. The difference between the loan's nominal
value and the value of the securities plus the
customer's assumed earning capacity is charged as
an expense under losses on loans and guarantees.
There is generally a great deal of uncertainty associated
with the appraisal of loans that are presumed to
be problem loans, the value of securities and the
customer's financial earning capacity.
Unspecified loss provisions are to cover losses that,
on the basis of conditions that prevail on the balance
sheet date, are expected to come in addition to losses
that have been identified and estimated for individual
customers. Such provisions are estimated on the basis
of appraisals of portfolios, experience and general
development trends. Changes in the size of the
lending portfolio are taken into consideration.
Actual loan losses
When it is highly likely that the losses are final, the
losses are classified as actual loan losses. Actual loan
losses that are covered by specified loan provisions
that have previously been made are charged against
these provisions. Actual loan losses without coverage
by loan loss provisions are charged to the results.
Acquired assets
As part of the handling of non-performing loans and
guarantees, the bank in some cases acquires assets
that have been furnished as security for these commitments. At the time of acquisition, the assets are
appraised at the assumed realisation value. Acquired
assets that are to be realised are classified as current
assets. Any losses and/or gains at the time of disposal
or reappraisal of the value of these assets are entered
as a loss or reduction in the loss on the loan.
23.
Leasing
The leasing portfolio is classified for accounting
purposes as leasing agreements under the main
category of loans to and claims on customers. Leasing
income is entered as leasing income under interest
income and the expenditures as interest costs.
Tangible fixed assets
Tangible fixed assets are entered in the accounts at
cost with the addition of previous revaluation, and
the deduction of write-downs and ordinary accumulated depreciation. Ordinary depreciation is based
on the cost price and the depreciation is distributed
linearly over the useful life of the assets.
Deferred taxes are calculated on the basis of temporary differences between accounting and tax values at
the close of the accounting year. The nominal tax
rate is employed in the calculation. Positive and negative differences are appraised against each other and
are shown as net in the balance sheet. Deferred tax
benefits arise if there are temporary differences that
give rise to tax deductions in the future.
Liabilities
Liabilities are entered at original cost. Interest is continuously carried to expense in the profit and loss account.
Business Areas
Sparebank 1 SR-Bank appraises business in the bank
as an aggregate business area.
If the actual value of a tangible fixed asset is considerably
less than the book value, and the decrease in value
cannot be expected to be temporary, the asset is written Individual Transactions
down to the actual value. The write-down is reversed SpareBank 1 SR-Bank has reduced its shareholding
when there no longer is a basis for the write-down.
in Sparebank 1 Gruppen from 20% to 15% in the
course of the year. This reduction resulted in an
Issued Bonds and Other Loans
accounting gain of NOK 52.6 million.
Issued bonds are entered in the balance sheet at
nominal value with premiums added and discounts
Changes in Accounting Principles
deducted. Premiums are taken to income and discounts As a result of the new Accounting Act, the bank made
are charged against income according to a schedule
some changes in the accounting principles with effect
as an adjustment of the current interest costs until
from 1 January 1999. The following changes have been made:
the bond matures or until the first time the interest
Listed shares and bonds that are part of the trading
rate is adjusted. Direct costs related to issuance of
portfolio shall be appraised at their real value.
bonds and other loans are charged against income
Investments in subsidiaries, affiliated companies and
according to a schedule as an adjustment to the
jointly controlled businesses shall be appraised
current interest cost until the bond or loan matures.
according to the equity method in the parent bank.
The difference between the investment's value
Pension Liabilities
entered in the balance sheet according to the equity
In the balance sheet net pension funds in the collec- method and the original cost is transferred to
tive plan are treated as fixed assets, whereas net
reserves for appraisal differences.
unfunded pension liabilities are classified as longterm debt. The employer's National Insurance contri- Deferred tax benefits shall be appraised according to
butions that will accrue at the current rates are also
the general appraisal rules. This means that deferred
included in the amount for unfunded pension liabili- tax entered in the balance sheet is no longer an
ties. Net pension costs are classified under wage costs upper limit for balance sheet entry.
in the profit and loss account, and include the earned
pension for the period and interest costs on the
The comparison figures in the profit and loss
liabilities minus the estimated return on the pension account have been revised in accordance with the
funds. The economic effects of changes in pension
new principles for the years 1998 and 1997.
plans are amortised over the average remaining
earning time. Other changes and differences are
The effect of the new principles on profit and equity
evaluated in total against the highest value of the
in NOK million amounted to:
total pension liabilities and total pension funds. If
SpareBank 1
SpareBank 1
total changes and estimated differences represent
SR-Bank
SR-Bank group
more than 10 percent of this basis at the end of the
1997
1998
1997
1998
fiscal year, the remaining amount will be amortised
Profit for the year
305
314
312
309
over the remaining earning time.
Securities at actual value
19
-43
19
-43
Taxes
The annual tax expenditures in the profit and loss
account consist of taxes payable on the income for
the year adjusted for surplus or deficit allocated from
previous years plus changes in deferred taxes.
24.
Dividend
-1
Tax
-5
Revised profit for the year 318
Equity – ref. Note 25
-17
21
275
0
-13
318
0
9
275
Notes.
SpareBank 1 SR-Bank
1997
1998
1999
28
31
58
NOTE 1 Interest income and interst costs
1 284
1 774
2 280
64
68
102
1 376
1 873
2 440
96
196
270
Interest on debt to credit institutions
388
615
839
208
253
429
51
62
58
18
9
11
761
1 135
1 607
1997
1998
1999
15
14
13
Income on shares
1999
1998
1997
38
19
17
2 485
1 949
1 412
102
68
64
2 625
2 036
1 493
285
226
123
Interest on deposits from customers
920
668
418
Interest on issued securities
450
270
213
Interest on subordinated loan capital
64
66
54
Other interest costs
11
9
18
1 730
1 239
826
1999
1998
1997
13
14
15
Interest on claims on credit institutions
Interest on loans to customers
Interest on certificates and bonds
Interest income
Interest costs
NOTE 2 Net other operating income
2
3
14
Income on ownership stakes in affiliated companies
14
3
5
32
28
37
Income on ownership stakes in Group companies
0
0
0
49
45
64
Dividends
27
17
20
20
21
23
Interbank commissions
23
21
20
10
11
12
Underwriting commission
12
11
10
112
127
144
Payment facilities/payment terminals
144
127
112
28
29
26
Securities trading and management
26
29
28
7
6
10
Insurance products
10
6
7
15
16
14
Other commissions and fees
16
19
18
192
210
229
Commission income
231
213
195
15
16
16
Interbank commissions
16
16
15
18
17
19
Payment facilities
19
17
18
22
20
28
Other commissions
31
24
26
55
53
63
Commission costs
66
57
59
-3
-7
9
43
-61
86
Net profit/loss on shares and primary capital certificates
Net profit/loss on exchange and financial derivates
19
30
25
59
-38
120
7
7
6
6
3
12
0
0
0
13
10
18
258
174
368
Net profit/loss on certificates and bonds
Operating income, real estate
9
-7
-3
86
-61
43
25
30
19
120
-38
59
6
6
6
14
3
6
Real estate sales
49
35
32
69
44
44
381
179
259
In the item Other operating income, NOK 12 million is included in profit on the sale of buildings.
The corresponding figure for 1998 and 1997 was NOK 2 million and NOK 3 million.
25.
Notes.
SpareBank 1 SR-Bank
1997
1998
1999
180
193
227
Note 3 Wages and general administrative costs
Wages
1999
1998
1997
261
218
204
16
18
22
Pensions
24
19
16
24
25
27
Social costs
31
29
27
12
11
15
232
247
291
60
58
71
Other personnel costs
Personnel costs
IT-costs
17
13
14
333
279
261
73
59
61
24
23
24
Marketing
28
26
26
18
21
22
Postage/Telephone
23
22
19
17
20
23
Travel/meetings/accessories
25
22
19
5
7
7
Other administrative costs
9
8
6
124
129
147
General administrative costs
158
137
131
356
376
438
Wages and general administrative costs
491
416
392
1997
1998
1999
1999
1998
1997
597
600
604
Number of man-years as of 31 Dec.
677
669
667
658
659
664
Average number of employees
741
733
730
Staff
Remuneration of the Board of Directors
NOK 647,000
Remuneration of the Audit Committee
NOK 220,000
Remuneration of Board of Trustees
NOK 482,000
Managing Director Terje Vareberg's compensation has been fixed at NOK 1.5 million.
Upon reaching the age of 62 the managing director may retire with a pension corresponding to 70% of his salary at the time of retirement.
There is no contractual bonus scheme, option scheme or compensation upon termination of the employment relationship for the managing
director, the chairman of the board, the individual directors or employees in management positions.
Loans and security furnished to employees in management positions
Loan balance in NOK 1,000
Managing Director
Chairman of the Board
Chairman of the Board of Trustees
1 850
0
982
Board members with loans in the bank
Tor Haver
Åse Holmane
Karl Naley
1 697
45
357
Employees in management positions
Deputy Managing Dir.
1 977
Financial Manager
1 340
Operational Manager
3 362
General Manager, Corporate Market, Stavanger
2 267
Regional General Manager, Jæren
Regional General Manager, Stavanger
Regional General Manager, Ryfylke
Regional General Manager, Haugalandet
Regional General Manager, Sør
379
1 660
460
1 175
259
Audit Committee
553
Board of Trustees
34 584
No security has been furnished. Loan conditions do not differ from the general conditions for employees.
26.
Notes.
SpareBank 1 SR-Bank
Note 4 Other operating costs
1997
1998
1999
1999
1998
1997
18
21
17
Operating costs, real estate
18
22
18
8
9
19
External remunerations
20
10
8
31
37
47
51
42
36
57
67
83
89
74
62
The bank’s remuneration to Arthur Andersen & Co. for auditing and other attest services totalled NOK 642 000 (NOK 852 000 for the Group).
In addition, NOK 2 333 000 has been paid for independent confirmation statements and other assistance (NOK 2 353 000 for the Group).
1997
1998
1999
-13
56
65
27
30
40
1999
1998
1997
The period’s change in specified loss provisions
NOTE 5 Loss on loans and guarantees
68
57
-14
The period’s change in unspecified loss provisions
40
32
27
+ Actual loan losses on commitments
5
3
4
5
3
5
-18
-14
-9
- Recoveries on previous actual loan losses
for which no provision has been made
-11
-16
-21
1
75
100
Loss on issued loans and guarantees
102
76
-3
61
81
48
50
81
62
5
3
4
5
3
5
66
84
52
55
84
67
1997
1998
1999
1999
1998
1997
Actual loan losses on commitments for which specified
loss provisions have been made previous years
+ Actual loan losses on commitments for which
rovisions have not been made previous years
Actual loan losses
NOTE 6 Loss/gain financial fixed assets
3
-2
9
8
-2
3
-5
-3
-53
Value regulation, securities
Net price gains on securities
-54
-2
-5
-2
-5
-44
-46
-4
-2
Major single transactions
FöreningsSparbanken's entry into SpareBank 1 Gruppen AS
At the beginning of 1999 the Swedish bank FöreningsSparbanken received a license to acquire an ownership interest in Sparebank 1 Gruppen AS.This was
implemented as a private placement towards FöreningsSparbanken in that the other owners of SpareBank 1 Gruppen (SpareBank 1 SR-Bank, SpareBank 1
Vest, SpareBank 1 Midt-Norge, SpareBank 1 Nord-Norge and Samspar) reduced their ownership interests from 20% to 15.2%.This generated a gain for
SpareBank 1 SR-Bank of NOK 52.6 million.The gain does not trigger tax liability, the reason being that the owner banks' investments in SpareBank 1
Gruppen as a jointly controlled business are of a long-term and strategic character. On this basis disposal of the investment and realization of the gain is not
relevant within a foreseeable time horizon.
27.
Notes.
SpareBank 1 SR-Bank
1997
1998
1999
NOTE 7 Taxes
1999
1998
1997
Profit before taxes
598
377
438
Permanent differences
-82
-20
-35
Taxable profit SpareBank 1 SR-Bank
425
364
583
-62
-54
-121
-20
74
-70
Change in temporary differences
-86
35
-42
343
384
392
Taxable profit for the year
430
392
361
96
108
110
Income tax for the year
120
110
101
1997
1998
1999
1999
1998
1997
96
108
110
Income tax
120
110
101
4
3
3
Wealth tax
3
3
4
24
-10
13
0
-1
2
147
102
120
1999
1998
1997
-63
-88
-143
Taxes
5
-21
20
Change in deferred tax
2
-1
-1
Insufficient/excess tax allocated in previous year
107
89
132
1997
1998
1999
-76
-63
-53
39
38
35
Revaluation of fixed assets
35
38
39
4
3
20
Pension funds
21
5
5
37
-37
22
Securities
21
-39
37
-83
-86
-95
Pension liabilities
-98
-89
-85
-14
-22
-26
Other negative differences
-26
-23
-14
-93
-167
-97
Net temporary differences
-110
-196
-161
-26
-47
-27
Deferred tax/(benefit)
-31
-55
-45
Taxes
Temporary differences
Accelerated depreciation of fixed assets
Explanation as to why taxes for the year do
1997
1998
1999
119
102
163
-18
-15
-33
2
-1
-1
4
3
3
107
89
132
not amount to 28% of the profit before tax
1999
1998
1997
28% tax on profit before tax
167
106
123
28% on permanent differences*
-23
-6
-9
Too much/little tax allocated in previous years
0
-1
2
Wealth tax
3
3
4
147
102
120
Estimated taxes
* includes dividends, non-deductible costs, risk on securities sold and deduction for share of profit related to affiliated companies (the share of profit is
taken out as it has already been taxed in the individual companies). Furthermore, the sale of ownership interests in SpareBank 1 Gruppen is treated as
a permanent difference as the net present value of the associated deferred tax is estimated at 0. Book gain is NOK 52.6 million.
RISK regulation
The RISK regulation amount as of 1 January 1999 for the bank's primary capital certificates has been stipulated at NOK 27.74. It is expected that the
RISK regulation amount will be stipulated at about plus NOK 28 per primary capital certificate as of 1 January 2000.
1997
28.
1998
1999
NOTE 8 Claims on credit institutions
1999
1998
1997
370
73
78
Claims without stipulated loan period or notice of withdrawal
78
73
370
142
144
661
Claims with stipulated loan period and notice of withdrawal
83
19
18
512
217
739
161
92
388
Notes.
SpareBank 1 SR-Bank
1997
1998
1999
1 580
1 830
2 007
596
726
698
19 848
23 743
27 745
0
0
0
22 024
26 299
30 450
NOTE 9 Gross loans to customers
Overdrafts
Building loans
Amortised loans
Leasing agreements
1999
1998
1997
2 007
1 830
1 581
698
726
596
29 192
25 084
21 150
976
977
886
32 873
28 617
24 213
Hereby subordinated loan capital
8
8
8
20
20
17
4
0
0
32
28
25
1997
1998
1999
275
325
365
2
7
11
Subordinated loan capital in credit institutions
Subordinated loan capital in other financial institutions
Other subordinated loan capital
Subordinated loan capital posted under loans
Loans to employees
Loans to employees
Interest
0
0
0
17
20
20
1
0
4
18
20
24
1999
1998
1997
401
361
304
12
8
3
1999
1998
1997
244
262
338
-50
-81
-62
68
62
-14
262
243
262
193
161
134
40
32
27
233
193
161
There are no special terms for these loans beyond ordinary terms for employees.
1997
1998
1999
NOTE 10 Loss provisions
Specified loss provisions:
332
258
239
Specified loss provisions, January 1
- Actual loan losses during the period for which
-61
-81
-48
-13
62
65
258
239
256
specified loss provisions have been made previously
+/- The period’s specified loss provisions
Specified loss provisions, December 31
Unspecified loss provisions:
125
152
182
27
30
40
152
182
222
Unspecified loss provisions, January 1
+/- The period’s changes in
unspecified loss provisions
Unspecified loss provisions, December 31
29.
Notes.
SpareBank 1 SR-Bank
NOTE 11 Non-performing,
1996
1997
1998
1999
problem and non-accrual loans
1999
1998
1997
1996
NON-PERFORMING LOANS FOR WHICH LOSS PROVISIONS HAVE BEEN MADE
Private market:
189
144
131
118
136
155
167
191
97
77
70
60
Gross non-performing loans
61
71
79
101
92
67
61
58
Net non-performing private market loans
75
84
88
90
51%
53%
53%
51%
Loan loss provisions ratio, private market
45%
46%
47%
53%
148
84
110
212
60
46
40
80
Corporate:
208
103
79
134
79
39
45
57
Net non-performing loans, corporate
129
64
34
77
38%
38%
57%
43%
397
247
210
252
Loan loss provision ratio, corporate
88
38
70
132
41%
55%
36%
38%
284
239
277
403
Total:
176
116
115
117
121
117
119
181
221
131
95
135
Net non-performing loans
163
122
158
222
44%
47%
55%
46%
Loan loss provision ratio
43%
49%
43%
45%
89
92
107
140
Of which gross non-accrual loans:
138
106
89
78
Private customers
Corporate customers
147
69
46
61
285
175
135
139
Total
70
47
72
151
159
139
179
291
PERFORMING LOANS FOR WHICH LOSS PROVISIONS HAVE BEEN MADE
Private market:
74
68
69
69
Performing loans for which loss provisions have been made 69
70
69
74
40
35
43
35
35
44
36
40
34
33
26
34
34
26
33
34
54%
51%
62%
51%
Loan loss provision ratio, private market 51%
63%
52%
54%
385
347
301
82
107
117
Net private-market loans for which
loss provisions have been made
Corporate:
297
346
375
300
116
107
81
104
106
Net corporate loans for which
181
239
294
196
loss provisions have been made
200
303
240
184
39%
31%
22%
35%
Loan loss provision ratio, corporate
35%
21%
31%
39%
371
414
444
369
455
416
375
156
142
124
139
126
143
157
Total:
141
Net loans for which loss
215
272
320
230
provisions have been made
234
329
273
218
42%
34%
28%
38%
Loan loss provision ratio
38%
28%
34%
42%
The total loans for a customer are regarded as non-performing and included in the bank’s overviews of non-performing loans when due instalments or interest
payments have not been paid within 90 days after the due date or a line of credit is overdrawn for 90 days or more. Loss assessments are made of loans
that are non-performing for more than 60 days.
Changes in interest on loans not recorded in income in the course of the year:
Accured interest on loans not recorded in income and entered in the balance sheet as of 1 January 1999
- the period´s recording in income of previous period´s interest on loans
1999
42
-14
- accured interest on loans not recorded in income and that have gone out of the balance sheet
-4
+ the period´s accured interest on problem loans not recorded in income
16
Accured interest on loans not recorded in income and entered in the balance sheet as of 31 December 1999
40
30.
Notes.
Note 12 Risk classification of loans
Corporate sector
The bank's risk classification system for corporate customers has been developed to control the bank's portfolio of commitments to the corporate sector
in line with the strategy chosen by the bank and in accordance with the paramount guidelines laid down in the license regulations and credit policy.The risk
classification system stipulates clear requirements for processes and assessments to be applied to the work with corporate commitments.The bank has
resolved to divide corporate customers into the following groups: Low risk (green) – Normal risk (yellow) – High risk (red).
The risk classification systems differentiates the customers based on cash flow and financial strength in accordance with the latest audited accounts (A to E)
and security (1 to 5). A commitment may contain the balance of the loan, the credit ceiling, the guarantee ceiling, accrued interest and credit exposure for
foreign currency and interest rate futures. On the basis of the above-mentioned regulations, all corporate customers are placed in the following matrix:
A
B
C
D
E
1
2
3
4
5
Extract of the bank's risk classification system for corporate sector commitments of more than NOK 250,000 in 1998 and 1999.
Figures in NOK million 1998
Category
Volume
1999
Volume
1998
%
1999
%
High risk
1 048
1 770
7.77%
11.81%
Normal risk
3 783
4 819
28.06%
32.15%
Low risk
Total
8 653
8 402
64.17%
56.05%
13 484
14 991
100.00%
100.00%
The risk matrix has had a growth in volume of a little over 11 percent in the last year.This growth has had a negative effect on the matrix in that a larger
part of the bank's commitments are in the high and normal risk categories.The main reason for this displacement
is the implementation of more stringent routines and assessment requirements for calculation of security assets.
The bank endeavors to price its commitments on the basis of adopted risk classification. High-risk commitments have the highest pricing and a tighter
follow-up routine that requires a total review of the commitments every quarter as a minimum.
Risk group specifications
High
Medium
Low
Total
1998
Loan
627
2 213
4 727
7 567
1999
Loan
1 163
3 069
4 628
8 860
1998
Credit
262
1 241
2 941
4 444
1999
Credit
405
1 615
2 604
4 624
1998
Guarantees
159
329
985
1 473
1999
Guarantees
202
135
1 170
1 507
1998
Loan loss
provisions
123
3
0
126
1999
Loan loss
provisions
151
10
0
161
Unspecified loan loss provisions have not been assigned to the individual risk groups.
The bank's risk classification system places all corporate commitments in separate business areas.There are separate committees for most business areas
that follow up the market and structural development of the business area concerned.The business area committees are also a body for exchange of business area experience, both internally and within the SpareBank 1 alliance.
The bank's credit policy is derived from the bank's strategy and contains long-term objectives, annual guidelines and credit ceilings.The following business
area categories are in the bank's risk classification system:
Distributed by business areas
Fish farming
Fishing
Fish processing
Meat production
Printing/publishing
Industry
Oil-related businesses
Building and construction
Commerce
Hotels and restaurants
Shipping
Real estate
Commercial service industry
Transportation and storage
Social/private service industry
Agriculture
Public sector
Other
Total
1999
Loan
281
196
77
37
75
637
388
431
623
224
1 009
2 238
848
175
334
966
70
251
8 860
1999
Credit
200
115
74
22
72
490
123
380
640
16
44
527
399
28
172
351
581
390
4 624
1999
Guarantee
13
17
29
0
5
395
15
427
152
9
36
50
43
33
25
11
0
247
1 507
1999
Total
494
328
180
59
152
1 522
526
1 238
1 415
249
1 089
2 815
1 290
236
531
1 328
651
888
14 991
1998
Total
310
323
199
57
106
1 702
580
1 082
1 338
239
1 052
2 284
974
443
343
1 191
592
669
13 484
1999
1999
Default Loan loss prov.
0
0
1
8
0
0
0
0
0
0
8
8
0
0
17
11
25
26
11
4
45
16
21
53
0
0
1
3
3
7
2
5
0
0
0
20
134
161
31.
Notes.
Average annual expected loss level for corporate sector
The bank has made calculations of the expected loss level for corporate customers.These calculations are based on empirical figures from Norwegian
banks through a trade cycle of 12 years in addition to the regional correlation between the customer's business area and the quality and diversification
in the bank's portfolio.The calculations show that the bank does not expect a higher loss level for the corporate sector commitments over a trade cycle.
Private market
The credit policy is to contribute towards strengthening the portfolio of private customer commitments in line with
the strategy chosen by the bank and the guidelines stipulated.This entails that clearly set out requirements be stipulated
for the processes and assessments to be used in work with private customer commitments. Granting of loans and
credit shall be based on the customer's financial ability and determination to service their loans. Security is the
bank's guarantee if the ability to service a loan should nevertheless fail.
The bank has resolved to divide private customer commitments into the following groups:
Low risk (green) – Normal risk (yellow) – High risk (red).
Income, assets and determination are synthesized into financial ability expressed in A-D.The bank's security is expressed in 1-5.
A commitment may contain the balance of the loan, the credit ceiling, the guarantee ceiling and accrued interest. On the basis
of the above-mentioned regulations, all private customer commitments are placed in the following matrix:
A
B
C
D
1
2
3
4
5
Extract of the bank's risk classification system for private customer commitments in 1998 and 1999.
Figures in NOK million 1998
Category
Volume
High risk
1999
Volume
1998
%
1999
%
834
1 371
7.99%
8.45%
Normal risk
1 748
2 878
16.74%
17.74%
Low risk
7 857
11 976
75.27%
73.81%
10 439
16 225
100.00%
100.00%
Total
The risk classification system for the private market is in a development phase and contains 64% and 83% respectively of the loans to the private
market for the years 1998 and 1999.
The percentage distribution of the loans within the bank's defined risk areas has been almost stable despite substantial growth in classified lending.
NOTE 13 Loss on loans and guarantees in 1999 broken down into business areas
Loans and
SpareBank 1 SR-Bank Group
guarantees
Agriculture/forestry
Fishing/fish farming
Mining/extraction
Gross
losses
Recoveries
Net
losses
Loss
percentage
1 216
2
0
2
0.2%
692
0
5
-5
-0.7%
373
0
0
0
0.0%
Industry
1 778
2
4
-2
-0.1%
Power and water supply/building and construction
1 415
4
1
3
0.2%
Commodity trade, hotel and restaurant business
1 663
24
7
17
1.0%
Foreign trade shipping, pipeline transport and other transport activities
1 487
26
0
26
1.8%
Real estate business
3 377
18
4
14
0.4%
Service industry
652
7
2
5
0.8%
Public sector and financial services
419
0
0
0
0.0%
0
40
0
40
Total corporate sector
13 072
123
23
100
0.8%
Private customers
20 950
28
26
3
0.0%
Total
34 022
151
49
102
0.3%
32.
Notes.
SpareBank 1 SR-Bank
1997
1998
1999
1 314
1 507
1 379
8
10
523
1 322
1 517
1 902
1 222
1 417
1 902
100
100
0
1 322
1 524
1 902
NOTE 14 Certificates and bonds
Certificates and bonds issued by the government
Certificates and bonds issued by others
1999
1998
1997
1 379
1 507
1 314
523
10
8
1 902
1 517
1 322
Trade portfolio
1 902
1 417
1 222
0
100
100
1 902
1 524
1 322
Long-term
Original cost
99%
97%
71%
1 322
1 517
1 902
Portion listed on stock exchange
71%
97%
99%
1 902
1517
1 322
4.7%
4.8%
5.8%
798
442
978
Public sector
5.8%
4.8%
4.7%
978
442
798
524
1 075
889
Financial businesses
0
0
35
889
1 075
524
35
0
0
1 322
1 517
1 902
1 902
1 517
1 322
1997
1998
1999
1999
1998
1997
259
265
358
154
165
217
Shares, units and primary capital certificates
361
266
259
Ownership interests in associated companies
217
165
154
189
179
181
21
21
22
Ownership interests in credit institutions
0
0
0
Ownership interests in other Group companies
0
0
0
623
630
778
578
431
413
Number
of share
Original Book value/
cost market value
47
42
75
78
38
67
62
124
135
25
94
89
30
53
10
6
12
24
85
64
87
235
20
13
36
11
8
28
78
93
5
93
72
9
1
2
7
2
1
5
8
3
1
7
10
2
7
2
1
1
3
7
20
4
13
2
2
9
4
2
5
8
14
NOK
Average effective interest rate
Non-financial businesses
NOTE 15 Shares and ownership stakes
Shares and ownership stakes
Short-term placements in shares, units and
The company’s
Ownership
primary capital certificates (Amounts in NOK thousand)
share capital stake in percent
Listed companies
Nordlandsbanken
314 895
0.7
Christiania Bank og Kreditkasse
3 859 510
0.0
Hydralift B
2 213
0.7
Kongsberg Gruppen
150 000
0.3
Storebrand
1 387 152
0.0
Roxar
4 587
0.3
Prosafe
257 979
0.2
TGS Nopec Geophysical Company
24 009
0.5
Solstad Offshore
71 588
0.4
Eltek
14 042
0.2
Smedvig B
41 614
0.7
Orkla A
1 370 290
0.0
SAS Norge B
235 000
0.1
Elkem
985 600
0.1
Norske Skogindustrier B
251 724
0.1
Norske Skogindustrier A
575 911
0.0
Petroleum Geo Services
508 048
0.0
Kverneland
97 153
0.2
Merkantildata
126 002
0.1
Norsk Hydro
5 331 933
0.0
Proxima
83 122
0.2
Nycomed Amersham GBP
10 290
0.1
Assidoman SEK
2 367
0.0
Elanders SEK
74 300
0.2
Odin Norden
Odin Norge
Skagen Vekst
Skagen Global
Templeton Global
SpareBank 1 Nord-Norge
649 249
1.4
Sandnes Sparebank
260 000
0.2
Sparebanken NOR
4 688 935
0.2
SpareBank 1 Midt-Norge
600 000
1.2
Other listed companies
Total listed companies
Unlisted companies
Total short-term placements in shares, units and primary capital certificates
100
000
000
000
000
870
500
000
612
000
500
200
000
000
000
000
000
250
000
900
000
000
000
000
135
080
400
183
746
050
000
850
450
409
245
550
804
136
313
891
587
323
484
477
623
360
609
784
729
685
612
197
518
882
091
745
220
000
000
000
000
134
986
699
17 337
14 468
17 977
225 875
6 725
232 600
10
1
2
9
2
1
5
10
3
1
8
12
2
9
3
2
1
4
8
22
4
11
2
2
17
8
3
8
10
16
056
659
400
867
337
934
188
354
526
775
316
399
595
858
410
526
728
050
500
066
785
727
615
312
220
092
590
568
359
005
755
17 362
16 519
18 086
262 539
6 054
268 593
Cont. next page...
33.
Notes.
Short-term placements in shares, units and
primary capital certificates (Amounts in NOK thousand)
The company’s
Ownership
Total short-term placements in shares, units and primary capital certificates
Listed companies
Stavanger Aftenblad
7 500
SpareBank 1 Nord-Norge
649 249
SpareBank 1 Vest
250 000
Sandnes Sparebank
260 000
600 000
FöreningsSparbanken SEK
10 556 177
Total listed companies
Unlisted companies
BBS/Bank-Axept
165 000
Fellesdata
60 000
Steinsvik Maskin
20 000
Norsk Oppgjørssentral
15 653
Data Design System
3 401
Sola Havn
15 000
Other
Total unlisted companies
Total long-term placements in shares, units and primary capital certificates
Number
of share
1.1
1.1
0.1
1.3
1.2
0.1
83
70
2
33
70
345
410
000
650
200
000
000
1 549
8 400
440
5 373
8 400
40 696
64 858
4.3
7.4
8.6
1.4
7.2
13.5
283
110
17
223
245
830
651
140
950
000
202
4 940
5 790
3 000
616
2 450
2 425
5 763
24 984
89 842
Total SpareBank 1 SR-Bank shares, units and primary capital certificates
Rogalandsdata Holding
Prosjektsalg AS
Total subsidiaries
cost market value
358 435
14500
300
3.0
3.5
4 350
105
1 940
400
2 340
Total SpareBank 1 SR-Bank Group shares, units and primary capital certificates
360 775
Ownership stakes in affiliated and
og felleskontrollerte selskaper
Byggekompaniet
Admi-senteret
Garde
SpareBank 1 Gruppen
SpareBank 1 SR-Bank
Book
value
2 843
0
13 562
200 017
216 422
Shares in subsidiaries
SpareBank 1 SR-Bank
Westbroker Finans
Total ownership stakes in credit institutions
Eiendomsmegler 1
Bjergsted Boliger
A/S Bankbygg
Jernbaneveien
Total ownership stakes in other Group companies
A/S Bankbygg
Total SpareBank 1 SR-Bank Group
The company’s
Ownership
67 000
100
1 500
50
600
50
100
100
62.5
100
150
50
375
10
600
62.5
375
Voting interest and ownership stake are the same for all companies.
Change in holding of fixed assets
SpareBank 1 SR-Bank
Book value 1 Jan. 1999
Additions/disposals
Reclassification
Writ-down/reversal
Book value 31 Dec. 1999
34.
Number
of share
134 000
630
157
0
-9
778
cost market value
67 000
181 228
67 000
181 228
1 500
12 736
50
9 170
375
375
50
0
1 975
22 281
375
375
375
375
Notes.
Year of
acquisition
Registered
office
Ownership
interst in %
Westbroker Finans 1
1987
Stavanger
100,00%
EiendomsMegler 1 Rogaland
1990
Stavanger
100,00%
Bjergsted Boliger
1990
Stavanger
100,00%
Company
SpareBank 1 Gruppen
1996
Oslo
15,20%
Garde
1988
Stavanger
25,00%
Byggekompaniet
1992
Stavanger
33,33%
Admi-Senteret
1984
Jørpeland
50,00%
Westbroker
Finans
EiendomsMegler 1
Bjergsted
Boliger
Equity entered in balance sheet at time of purchase
53 400
8 000
50
Goodwill
40 000
Original cost
93 400
8 000
50
181 170
9 741
10 772
26 558
6 995
734
Investments in all companies are assessed according to the equity method.
Investments in subsidiaries
Excess value analysis
Calculation of value entered in balance sheet as of 31 Dec. 1999
Opening balance as of 1 Jan. 1999
Profit for the year
Transferred to/from companies (dividends/group contribution)
Closing balance as of 31 Dec. 1999
Investments in affiliated and jointly controlled businesses
Excess value analysis
Equity entered in balance sheet at time of purchase
-26 500
-4 000
-2 336
181 228
12 736
9 170
SpareBank 1
Gruppen
Garde
Byggekompaniet
AdmiSenteret
145 900
8 279
2 000
1 000
Goodwill
Original cost
2 265
145 900
10 544
2 000
1 000
146 387
16 086
3 036
0
8 238
3 312
2 936
0
-8 800
-3 434
Beregning av balanseført verdi pr. 31.12.99
Opening balance as of 1 Jan. 1999
Share of profit for the year
Depreciation of goodwill
Transferred from the company (dividends)
Changes in capital in the course of the year *
Closing balance as of 31 Dec. 1999
-453
54 192
-1 949
200 017
13 562
-3 129
2 843
0
Non-depreciated goodwill in Garde is NOK 113 000 as of 31 Dec. 1999.
* An option loss arose upon FöreningsSparbankens entry into SpareBank 1 Gruppen.This option loss was entered in the owner bank’s accounts as
a deduction against gross profit this entry generated and not as a share of profit.This causes a difference between the group profit of SpareBank 1
Gruppens and the owner banks’ entered share of profit from SpareBank 1 Gruppen equal to the said option loss.
Jointly controlled businesses
SpareBank 1 SR-Bank owns SpareBank 1 Gruppen AS together with SpareBank 1 Nord-Norge, SpareBank 1 Midt-Norge, SpareBank 1 Vest and
Samarbeidende Sparebanker As. Each of the parties owns 15.2 percent of the shares in the company. In addition, the Swedish bank FöreningsSparbanken
owns 24% of the shares in the company.The management structure for the SpareBank 1-alliance is governed by en agreement between the owners.The
ownership interest is regarded as participation in a jointly controlled business.
In the accounts for SpareBank 1 SR-Bank the shares in SpareBank 1 Gruppen As have been appraised according to the equity method, both in the company´s accounts and the group accounts, as the operations of SpareBank 1 Gruppen are considerably different than the bank´s other operations where the
use of the straight line method of depreciation would provide accounting information that is not easily accessible.
35.
Notes.
Company name
SpareBank 1 Gruppen AS
Company’s
sharecapital
Ownership
Number
of votes
630.9 mill.
15.2%
15.2%
SpareBank 1 SR-Bank has granted Sparebank 1 Gruppen AS a subordinated loan in the amount of NOK 16.6 million.The term of the loan is up to the year
2006 and interest is three months' NIBOR + 110 basis points.
The jointly controlled businesses consist of the parent company SpareBank 1 Gruppen AS, SpareBank 1 Livsforsikring AS, SpareBank 1 Skadeforsikring AS,
SpareBank 1 Fondsforsikring AS, SpareBank 1 Kredittkort AS, Sparebankutvikling AS, ODIN Forvaltning AS (51%) and First Securities ASA (51%).
The operations of the subsidiaries are in the fields of insurance, brokerage and investment management. All transactions between the bank and the subsidiaries of SpareBank 1 Gruppen are conducted on commercial terms. Inter-company compensation between the bank and Sparebank 1 Gruppen AS that is
not related to sales and portfolio counseling are based on the full-cost principle.
The table below provides a summary of the results of SpareBank 1 Gruppen.The figures are based on a preliminary prognosis.
Profit/loss (Amounts in NOK million)
100%
15.2%
Profit/loss ODIN Forvaltning AS
19.4
2.9
Profit/loss SpareBank 1 Livsforsikring AS
46.7
7.1
Profit/loss SpareBank 1 Gruppen AS
-108.4
-16.5
Profit/loss SpareBnak 1 Skadeforsikring AS
-24.9
-3.8
-6.9
-1.0
Profit/loss SpareBank 1 Fondsforsikring AS
-7
-1.1
Profit/loss SpareBank 1 Kredittkort AS
Profit/loss First Securities ASA
21.6
3.3
Elimination of share of results, subsidiaries
-11.6
-1.8
Minority share
-20.1
-3.1
Goodwill depreciation
-17.2
-2.6
Group profit/loss
-108.4
-16.5
NOTE 16 Fixed assets
SpareBank 1 SR-Bank
Acquisition cost January 1, 1999
Additions 1999
Disposals 1999
Machines,
Bank
fixtures buildings and
and transport
other real
vehicles estate property
Goodwill
Revaluation of
bank buildings
and other real
Total estate property
240
368
9
617
44
53
0
0
53
0
0
42
0
42
0
200
88
2
290
9
Book value December 31, 1999
93
238
7
338
35
Ordinary depreciation/write-downs for the year
32
8
1
41
1
20/33.3
2
10
Total depreciation and write-downs Dec. 31, 1999
Depreciation rate
2
Revaluation of bank buildings and other real property are part of the item bank buildings and other real property. Goodwill is related to the acquisition
of the customer portfolio. Continued good earnings from the acquired portfolio indicates that retaining the original 10-year depreciation plan is prudent.
Of the total book value of bank buildings, NOK 233 million is for use in the banking business.
Net gain from the sale of buildings in 1999 amounts to NOK 9.4 million and is mainly related to the sale of bank buildings.
Acquisition cost January 1, 1999
Machines, fixtures
and transport
vehicles
Bank buildings
and other real
estate property
Goodwill
Total
255
366
9
630
Additions 1999
55
0
0
55
Disposals 1999
2
40
0
42
Total depreciation and write-downs Dec. 31, 1999
Book value December 31, 1999
Ordinary depreciation/write-downs for the year
Depreciation rate
211
89
2
302
97
238
7
342
42
33
8
1
20/33.3
2
10
Real property of importance for the bank:
Geographical location
Stavanger center
Type Total sq. meters Rental portion
Bank building
3 085
930
Stavanger Bjergsted
Bank building
9 200
250
Sola center
Bank building
3 783
2 029
Randaberg center
Bank building
1 903
1 002
Haugesund center
Bank building
3 536
1 259
Aksdalsenteret Tysvær
Bank building
2 288
1 157
Assets acquired
Assets acquired by the Group amount to NOK 5 million, of which NOK 3 million is buildings and NOK 2 million is shares.
36.
Notes.
1997
SpareBank 1 SR-Bank
1998
1999
NOTE 17 Other assets
10
10
10
Equity, SpareBank 1 SR-Bank pension fund
29
40
33
Dividends receivable from subsidiaries
1999
1998
1997
10
10
10
0
0
0
Other assets
106
58
86
Other assets
116
68
96
1999
1998
1997
178
192
118
22
4
4
200
196
122
1999
1998
1997
195
215
354
77
30
76
116
80
119
1997
1998
1999
114
187
180
4
3
20
118
190
200
1997
1998
1999
363
246
200
2 911
3 775
3 722
Debt with agreed loan period or notice of withdrawal
3 726
4 228
3 735
3 274
4 021
3 922
3 921
4 443
4 089
5.1%
5.5%
4.7%
4.9%
5.5%
5.1%
NOTE 18
Accrued, unpaid income and
non-accrued costs paid in advance
Net pension funds
NOTE 19 Debt to credit institutions
Debt without agreed loan period or notice of withdrawal
Average interest rate
Debt broken down into the most essential currencies
2951
USD 368
The average interest rate is calculated on the basis of the actual interest cost per year in percent of average debt to credit institutions.
1997
1998
1999
9 272
10 005
10 525
5 196
6 542
7 520
14 468
16 547
18 045
2.8%
3.9%
4.9%
NOTE 20 Deposits from customers
Deposits from customers without agreed term
Deposits from customers with agreed term
1999
1998
1997
10 441
9 860
9 212
8 770
7 621
5 987
19 211
17 481
15 199
5.0%
4.0%
2.9%
Deposits from customers are mainly in NOK.
Average interest rate is calculated on the basis of the actual interest cost per year in percent of average deposits from customers.
NOTE 21
1997
1998
1999
300
0
0
1998
1999
1998
1997
0
0
300
Maturity dates
1 185
940
0
1999
0
940
1 185
1 000
1 000
1 000
2000
1 213
1 250
1 150
0
0
550
2001
600
50
0
275
625
1 025
2002
1 025
625
275
150
700
1 750
2003
1 750
700
150
100
100
100
2004
100
100
100
1
1
2
2
1
1
-1
-8
-6
3 010
3 358
4 421
4.9%
5.8%
6.6%
Premium
Capitalized costs in connection with bond loans
-6
-8
-1
4 684
3 658
3 160
6.6%
5.8%
4.9%
All bond debt is in NOK.
Premium on borrowing is taken to income over the term of the loan. All loans mature without installments. As of 31 December 1999 the bank had no
holdings of its own bonds. Average interest rate is calculated on the basis of the actual interest cost per year in percent of average bond holding.
1997
1998
1999
83
85
95
NOTE 22 Allocations to commitments and costs
Uncovered pension liabilities
1999
1998
1997
98
88
86
41
0
0
Other allocations to commitments and costs
0
0
41
124
85
95
Allocations to commitments and costs
98
88
127
37.
Notes.
NOTE 23 Pension schemes
The SpareBank 1 SR-Bank Group has group occupational pension schemes for its employees.The pension schemes for SpareBank 1 SR-Bank and for
SR-Eiendom AS are covered by the bank’s pension fund, while Westbroker Finans AS has its scheme covered in Storebrand. SpareBank 1 SR-Bank and
SR-Eiendom AS have uniform schemes whereby the main terms are 30 years’ accrual, 70% pension with respect to the pensionable income as of January 1
of the year of reaching 67 years of age as well as disablement, spouse’s and children’s pension. All pension benefits are co-ordinated with expected benefits
from social security. If social security amendments are made entailing reduced benefits, said reductions will not be compensated from the pension schemes.
As of December 31, 1998, the pension schemes had 754 active members (SR-Bank 716) and 141 pensioners (SR-Bank 139).The pension scheme at
Westbroker Finans AS has the same accrual time, but a somewhat lower coverage than the schemes covered by the pension fund. In all, the scheme at
Westbroker Finans AS includes 23 active members and 6 pensioneers.
In addition to the pension liabilities covered through the insurance schemes, the Group has unfunded pension liabilities that cannot be covered by the funds
in the group schemes.The liabilities concern persons not enrolled in the insurance schemes, additional pensions beyond 12G (base), ordinary early-retirement pensions and early-retirement pensions according to the AFP arrangement (Contractual early-retirement pension). Estimated values are used for valuating the pension funds and measuring accrued liabilities. Said estimates are corrected each year according to the actual value of the pension money in the
pension fund, statements of the pension funds’ transfer value from the insurance company, and actuary calculation of the size of the liabilities.
In calculating future pensions, the following assumptions are applied:
Dec. 31, 99
Dec. 31, 98
Dec. 31, 97
Discount rate
7.00%
7.00%
7.00%
Expected yield on the funds
7.75%
7.75%
7.75%
Wage adjustment
3.30%
3.30%
3.30%
G (base) adjustment/inflation
2.50%
2.50%
2.50%
Pension adjustments
2.50%
2.50%
2.50%
The calculations are based on standardised requisites regarding trends in fatality and disablement rates and other demographic factors calculated by the
Association of Norwegian Insurance Companies. Also stipulated is a resignation/retirement rate on 2 percent until 45 years and 0 for age group 45 years
and older. For calculating the AFP (contractual early-retirement pension) liability, it is stipulated that 30 percent of those entitled to the scheme will use it
upon reaching 62 years of age, and the remaining 70 percent will use it upon reaching 64 years of age.
SpareBank 1 SR-Bank
The annual pension costs are derived as follows:
1997
1998
1999
11
12
13
(Amounts in NOK thousand)
Current value of the year’s pension earnings
20
21
24
-15
-15
-15
Interest costs of accrued pension liabilities
0
0
0
0
0
0
actual and expected yield taken to profits
Employer’s National Insurance contributions charged to profits
Expected yield on the pension fund
Effects of pension plan changes taken to profits
1999
1998
1997
13
13
11
24
21
20
-16
-16
-15
0
0
0
1
0
0
Estimate changes and deviations between
0
0
1
16
18
23
1
1
0
23
19
16
1999
1998
1997
Estimated accrued liabilities including employer’s National Insurance contribution -254
Pension costs
Pension funds and pension liabilities in group schemes:
1997
1998
1999
-206
-226
-242
199
213
234
-7
-13
-8
Estimated value of pension funds
Estimated net pension funds
-237
-215
247
225
209
-7
-12
-6
26
16
10
Effect, not taken to profits, of estimate changes and
10
15
25
differences between expected and actual yield
1
1
1
Effect, not taken to profits, of change in scheme
1
1
0
0
0
2
Employer's social security contribution
2
0
0
4
3
20
22
5
4
Net pension funds posted on the balance sheet
Pension liabilities in unfunded schemes:
1997
1998
1999
1999
1998
1997
-91
-94
-114
Estimated accrued liabilities including employer’s National Insurance contribution -118
-97
-92
2
3
14
15
3
1
6
5
5
6
7
6
including employer’s National Insurance contribution -97
-87
-85
Effect, not taken to profits, of estimate changes and
differences between expected and actual yield
Effect, not taken to profits, of change in schemes
Net pension liabilities posted on the balance sheet,
-83
-86
-95
The pension funds are managed according to guidelines laid down by the board of directors of the pension fund. The funds consist of bearer bonds and
loans secured up to 60 percent of appraised value.
38.
Notes.
SpareBank 1 SR-Bank
1997
1998
1999
NOTE 24 Subordinated loan capital
1999
1998
1997
Time of maturity/interest rate
266
0
0
2003 - 10.65%
0
0
0
2006 - 3 months Nibor + margin
0
0
0
0
0
802
2009 - USD 100 mill. 3 months Nibor + margin
250
250
250
Perpetual 3 months Nibor + margin
440
457
0
-6
-5
-1
Capitalized costs in connection with subordinated loans
30
Premium
950
702
1 081
2007 - 3 months Nibor + margin
USD 3 months Nibor + margin
0
0
266
32
32
32
40
40
30
802
0
0
250
250
250
0
457
440
-1
-5
-6
774
1 012
30
1 153
Subordinated loan capital in foreign currency (USD 100 million as of December 31, 1999) is included in the bank’s total forex position, so that there is no
currency risk linked to the loan. See note 27. A subordinated loan in the Group of NOK 32 million maturing in 2006 may be redeemed in 2001, while a
subordinated loan of NOK 40 million may be redeemed in 2002.
Of the total subordinated loan capital in the bank of NOK 1 081 million, NOK 1 030 million counts as additional capital as of December 31, 1999.
Corresponding figures for the Group are NOK 1 102 million. Premium when raising a loan is taken to income over the term of the loan.
Note 25 Movement in equity capital
SpareBank 1 SR-Bank
Equity capital as of 31 Jan. 1998 under old Act
Primary capital
certificate
capital
Dividend
equalization
reserve
Savings
bank’s
reserve
Endowment
reserve
744
430
574
15
Deferred tax to equalization reserve
31
16
16
Reserve for assessment differences
744
461
590
Transfers
Profit for the year
159
Dividends
Balance sheet as at December 31, 1999
Equity capital as of 31 Dec. 1998 under old Act
278
106
106
15
106
1 916
-11
1
-10
10
4
-141
620
727
14
111
2 216
Primary capital
certificate
capital
Dividend
equalization
reserve
Savings
bank’s
reserve
Endowment
reserve
Other
equity
Total
equity
744
430
574
15
98
1 861
31
Deferred tax to savings bank's reserve
31
16
16
Reserve for assessment differences
744
461
590
159
278
Transfers
Profit for the year
Dividends
Balance sheet as at December 31, 1999
451
-141
744
Deferred tax to equalization reserve
Equity capital as of 31 Dec. 1998 under new Act
Total
equity
1 763
31
Deferred tax to savings bank's reserve
Equity capital as of 31 Dec. 1998 under new Act
Other
equity
15
8
8
106
1 916
-11
1
-10
10
4
451
14
111
2 216
-141
744
620
727
-141
39.
Notes.
The 20 largest primary capital certificate
owners as at December 31, 1999 are:
Owner
Number of primary
capital certificates
Share
percentage
Swedbank Markets
653 750
8.8%
Folketrygdfondet
366 600
4.9%
Tveteraas Finans AS
194 001
2.6%
Clipper Shipping AS
125 000
1.7%
Den norske Bank ASA
103 250
1.4%
90 129
1.2%
Norgeskreditt AS
85 000
1.1%
Arne B. Corneliussen Invest AS
80 000
1.1%
Pareto Fonds ASA
66 150
0.9%
Otto B. Morcken
65 000
0.9%
Solvang Shipping ASA
60 000
0.8%
Institusjonen Fritt Ord
59 400
0.8%
Oslo Kommunale Pensjonskasse
56 600
0.8%
SpareBank 1 Ringerike
50 700
0.7%
Bergen Kommunale Pensjonskasse
45 000
0.6%
Forsand Kommune
42 200
0.6%
Røwde & Co AS
41 000
0.6%
Helland AS
40 000
0.5%
Verdipapirfondet Avanse Finans
38 900
0.5%
Stavanger Aftenblad ASA
38 300
0.5%
2 300 980
30.9%
5 139 020
69.1%
7 440 000
100.0%
20 largest owners
Other owners
Issued primary capital certificates
The bank has issued 7 440 000 primary capital certificates at a face value of NOK 100 per certificate.The total number of primary capital certificate owners
as at December 31, 1999, was 5 901.The share of primary capital certificates in Rogaland county is 44%, and the foreign share is 10%. Reference is also
made to an overview of primary capital certificate owners on the board of directors and board of trustees.
SpareBank 1 SR-Bank
1997
1998
1999
379
608
671
313
391
412
19
2
28
NOTE 26 Guarantee liabilities/Secured debt
1999
1998
1997
Payment guarantees
671
608
380
Contract guarantees
412
391
313
28
2
19
Loan guarantees
4
4
16
Guarantee for taxes
16
4
4
23
13
22
Other guarantees
22
13
23
24
0
0
762
1 018
1 149
Guarantee fund
Total
The bank does not have secured debt of significant value.
40.
0
0
24
1 149
1 018
763
Notes.
SpareBank 1 SR-Bank
1997
1998
1999
NOTE 27 Forex position and exchange and interest agreements 1999
1998
1997
Net position in foreign currency:
868
1 493
2 066
Assets in foreign currency
2 066
1 493
868
3 040
3 690
3 319
Forward purchases in foreign currency
3 319
3 690
3 040
3 494
4 218
4 633
Debt in foreign currency
4 633
4 218
3 494
402
976
677
677
976
402
Forward sales in foreign currency
Currency risk
Currency risk may be defined as the risk which the bank has for incurring losses due to changes in exchange rates.
The bank has a policy of limited currency risk on its own books.The bank's board of directors has set limits on the size of the currency position
the bank may have, both for individual currencies and in total.
Furthermore, the bank may only take a currency risk in those currencies for which the bank of Norway has a daily exchange rate determination.
Seen in relation to the bank's size, the currency risk has been low throughout 1999. At the end of the year the total currency position was NOK 83 million.
The largest positions were in US dollars at NOK 43 million, Swedish kroner at NOK 42 million, and Swiss francs at NOK 10 million.There were only minor
positions in other currencies. All currency items are converted according to market rates as of 31 December 1999.
Interest and currency instruments off-balance-sheet (Financial derivatives)
Nominal amount Nominal amount
Book value
Dec. 31, 1998 average for 1999
Dec. 31, 99
Trading portfolio:
Interest
1 539
4 670
0
Currency
3 996
4 331
19
5 255
3 479
(14)
0
0
0
Hedging portfolio:
Interest
Currency
The nominal amount equals the principal sum of the contract.
Off-balance sheet interest, currency and equity capital related instruments (Financial derivatives)
Trade with financial derivatives is mainly conducted to reduce the interest and currency risk in the balance sheet. For trade with customers the board
has stipulated clearly set out limits on the size of the risk permitted in the trade portfolio for both currency and interest derivatives. Seen in relation to
the size of the bank, the limits for trade with derivatives are regarded as being conservative, and the market risk associated with trade with these products
is thus small. Equity capital related instruments such as share options are not used to any great extent, and no equity capital related derivatives were
outstanding at the end of the year. Derivatives are mainly transacted with solid Norwegian and international banks as the opposite party.The credit risk
is therefore regarded as being small.Transactions with customers are part of the bank's continuous credit assessment of individual commitments.
All instruments used through the year are subject to daily sales in liquid markets.
These are described below:
Interest instruments mainly include:
Interest rate swaps, which are contracts for swapping interest terms on nominal amounts with customers or banks. FRA contracts, which are contracts that
set an interest rate at a nominal amount for a future period. Interest rate options, which are contracts that entitle the buyer to claim the difference between
the interest rate in the money market and the agreed interest paid by the seller.The difference is calculated on the basis of the principal amount.
Currency instruments mainly include:
Forward exchange contracts, which are contracts for the purchase or sale of a specific currency amount at a future date at an agreed rate of exchange
against another currency. Currency swaps, which are agreements with customers or banks on swapping currency amounts at a pre-agreed rate of exchange
and to pay interest on these for an agreed period.
NOTE 28 Contingent liabilities
The Group is party to several lawsuits with a total financial scope that is not assessed as being significant, taking into account the fact that the bank has
made loss provisions in those cases where it is thought to be a preponderant probability that the bank will suffer losses as a result of the lawsuits.
41.
Notes.
NOTE 29 Distribution of loans, guarantees and deposits in business areas
SpareBank 1 SR-Bank Group (Amounts in NOK million)
Utlån
Garantier
Innskudd
Agriculture/forestry
1 212
4
686
Fishing/fish farming
675
17
57
Mining/extraction
370
3
115
Industry
1 500
278
758
Construction and water supply/building and construction
1 003
412
779
Commodity trade, hotel and restaurant business
1 450
213
969
Foreign-trade shipping, pipeline transport and other transport activities
1 450
37
439
Real estate business
3 313
64
1 324
Service industry
629
23
1 501
Public sector and financial services
340
79
1 632
Total corporate sector
11 942
1 130
8 260
Private customers
20 931
19
10 951
Total
32 873
1 149
19 211
Loans
Guarantees
Deposits
Greater Oslo area
1 984
155
553
Distribution of loans, guarantees and deposits in geographical areas
Vest-Agder
584
6
485
Rogaland
28 499
937
17 366
Hordaland
1 097
41
415
487
10
183
Other domestic
Foreign countries
222
0
209
32 873
1 149
19 211
1999
1998
1997
20
13
11
Interest costs to subsidiaries
2
1
1
Commission income from subsidiaries
1
1
1
Other income from subsidiaries
1
1
1
Other costs to subsidiaries
1
0
1
2
0
5
Other loans
576
125
119
Other claims
37
40
33
615
165
157
92
178
71
0
0
3
92
178
74
Total
NOTE 30 Transactions with subsidiaries
Income and expenses:
Interest income from subsidiaries
Claims on subsidiaries:
Overdraft
Total claims
Debt to subsidiaries:
Deposits from subsidiaries
Other debts
Total liabilities
Claims on and debt to affiliated companies:
Loans
Deposits
Guarantees
Byggekompaniet
0
9
1
Admi-Senteret AS
9
0
0
Garde ASA
0
27
51
17
102
3
SpareBank 1 Gruppen A/S
42.
Notes.
SpareBank 1 SR-Bank
1997
1998
1999
490
574
727
Note 31 Capital adequacy ratio
1999
1998
1997
838
672
589
-3
-2
-15
- Pension fund
-15
-3
-4
744
744
744
744
744
744
6
15
14
14
15
6
341
430
620
Endowment reserve
620
430
341
-19
-24
-34
Goodwill and other intangible assets
-38
-43
-19
1 559
1 737
2 056
2 163
1 815
1 657
690
707
250
250
707
690
-18
-36
-22
capital due to exchange rate fluctuations
-22
-36
-18
266
0
802
Time-limited subordinated loan capital
874
72
328
0
0
Additional capital
1 102
743
1 000
Gross equity and subordinated loan capital
3 265
2 558
2 657
-218
0
0
Core capital
Perpetual subordinated loan capital
Reductions in perpetual subordinated loan
Reductions in time-limited subordinated
0
0
0
938
671
1 030
loan capital the past 5 years
2 497
2 408
3 086
0
0
0
-10
-10
-10
Equity and subordinated loan capital in other finance inst. acc. to § 7f
-10
-10
-10
-10
-10
-10
Deduction in equity and subordinated loan capital
-228
-10
-10
2 487
2 398
3 076
Net equity and subordinated loan capital
3 037
2 548
2 647
15 990
20 161
23153
Total assets (weighted)
403
499
597
446
368
-10
-10
-411
-421
-478
Capital adequacy reserve acc. to §2a-9
24 525
21 766
17 141
Total off-balance-sheet items (weighted)
597
499
403
652
Currency risk and items in the trade balance
653
365
442
-10
Deductions made according to § 7e-f
-10
-10
-10
Loss provisions not included in equity and subordinated loan capital
-495
-436
-423
Capital adequacy reserve
-218
-111
Reserve for assessement differences
16 418
20 597
23 803
Total basis for calculation
25 052
22 184
17 553
15.15%
11.64%
12.92%
Capital adequacy ratio
12.12%
11.49%
15.08%
The table shows SpareBank 1 SR-Bank’s and the SpareBank 1 SR-Bank group’s capital adequacy ratio. Capital adequacy ratio should be at least 8 percent.
Time limited subordinated loan capital reduces the equity value by 20 percent each year for the past 5 years before it is due. Insofar as the bank has equity
and subordinated loan capital in other financial institutions, it goes directly to deduction in the bank’s own equity and subordinated loan capital for the portion
exceeding 2 percent of the recipient financial institution’s equity and subordinated loan capital. If the bank has equity and subordinated loan capital in other
financial institution’s constituting less than 2 percent of said financial institution’s equity and subordinated loan capital, the total of said capital is deducted from
the bank’s equity and subordinated loan capital for the portion exceeding 10 percent of the bank’s equity and subordinated loan capital.
The basis for calculation is weighted according to risk.There are 5 classes of risk: 0 percent, 10 percent, 20 percent,
50 percent and 100 percent, where the percentage indicates how large a portion of a balance sheet item to include in the basis for calculation.
Note 32 Interest lock-in period and residual term SpareBank 1 SR-Bank
Residual term SpareBank 1 SR-Bank
Up to 1 month
1-3 months
3-12 months
1-5 years
More than
5 years
Without
term
Total
NOK:
Loans to customers
672
672
578
1 953
9
587
377
359
3 164
22 345
28 198
528
794
556
24
Assets without residual term
1 902
1 331
1 331
Foreign currency:
12
12
152
Loans to customers
242
2
7
123
1 400
152
3 609
907
1 160
3 843
23 778
Assets without residual term
Total assets
1 774
133
133
1 464
34 761
Cont. next page...
43.
Notes.
Cont. Note 32 Interest lock-in period and residual term SpareBank 1 SR-Bank
Residual term SpareBank 1 SR-Bank
Up to 1 month
1-3 months
3-12 months
1-5 years
5 years
6
More than
term
Without
Total
NOK:
355
15 871
811
688
512
1 085
2 070
2 175
3 421
355
17 888
8 751
Debt without residual term
746
249
Total equity
746
249
2 216
2 216
Foreign currency:
705
157
1 539
161
1 162
3 567
157
0
Net total all items
832
832
18 173
4 420
3 024
5 095
1 087
2 962
-14 564
-3 513
-1 864
-1 252
22 691
-1 498
34 761
INTEREST LOCK-IN PERIOD SPAREBANK 1 SR-BANK
NOK:
514
586
Loans to customers
24 508
158
672
1
587
28 198
291
59
2 624
716
528
794
556
24
Non-interest-bearing assets
1 902
714
714
12
12
Foreign currency:
152
Loans to customers
482
815
477
152
26 242
1 634
1 330
1 774
Non-interest-bearing assets
Total assets
3 180
741
750
750
1 634
34 761
NOK:
355
15 876
811
688
70
1 881
4 845
625
1 400
355
443
8 751
Non-interest-bearing debt
17 888
746
746
2 216
2 216
249
249
Total equity
Foreign currency:
1 106
157
Net interest exposure on the balance sheet
2 300
– In percent of total assets
3 567
157
832
832
19 375
9 037
1 474
1 470
0
3 405
6 867
-7 403
-144
1 710
741
-1 771
Financial derivatives affecting the accounts which are not posted on the balance sheet
Net int. exp. incl. off balance
161
0
-1 548
-391
6 867
-7 403
-144
162
350
-1 771
20%
-21%
0%
0%
1%
-5%
34 761
0%
Bank overdraft has been included under the inverval 0-1 months.The statement shows the remaining term of various balance sheet items.
The Statement of interest lock-in periods shows how long the bank is bound to the applicable interest of various balance sheet items. The bank’s interest
risk has been low throughout the year compared with the bank’s balance sheet. At the end of the year total interest sensitivity was such that a change in
the interest rate of 1% would hav eyielded a littleover NOK 8 million in the profit and loss account. All items in the balance sheet, and off-balance sheet
items such as interest swaps, etc., are included in this calculation. The trade portfolio, which mainly consists of bonds and certificates, has had a low duration
throughout the year. At the end of the year this portfolio had a duration of 0.7 and a change in the interest rate of 1% would have yielded nearly
NOK 14 million in the profit and loss account.
44.
Notes.
NOTE 33 Profit summary for subsidiaries
Profit and loss account – subsidiaries
(Amounts in NOK thousand)
Westbroker
Finans
Eiendoms
Megler 1
Bjergsted
Boliger
Total
subsidiaries
Interest income
204 965
1 457
244
206 666
Interest costs
144 443
67
0
144 510
Net interest income
60 522
1 390
244
62 156
40
0
0
40
384
2 543
0
2 927
-3 095
0
0
-3 095
Dividends
Commission income
Commission costs
-2
0
0
-2
0
49 797
231
50 028
-2 673
52 340
231
49 898
57 849
53 730
475
112 054
Wages and general administration costs
16 440
37 644
0
54 084
Depreciation and write-downs
627
1 846
-1 429
1 044
2 862
4 481
43
7 386
19 929
43 971
-1 386
62 514
37 920
9 759
1 861
49 540
-1 300
0
0
-1 300
Loss on loans and guarantees
2 261
0
0
2 261
36 959
9 759
1 861
48 579
6
2
0
8
Balance sheet – subsidiaries
Assets:
Acquired assets
5 879
80 784
5 410
92 073
2 423 151
0
0
2 423 151
-5 914
0
0
-5 914
-11 000
0
0
-11 000
2 406 237
0
0
2 406 237
0
0
0
0
Securities
1 940
0
400
2 340
Fixed assets
1 240
4 049
5 708
10 997
34 751
105
0
34 856
2 450 053
84 940
11 518
2 546 511
575 336
0
0
575 336
1 251 820
0
0
1 251 820
Total assets
Liabilities and equity:
Accrued costs and income paid in advance
Allocation to commitments and costs
Total equity
262 936
0
0
262 936
97 507
70 234
2 348
170 089
1 226
1 970
0
3 196
80 000
0
0
80 000
181 228
12 736
9 170
203 134
2 450 053
84 940
11 518
2 546 511
45.
Cash flow analysis.
SpareBank 1 SR-Bank
1997
1998
1999
318
275
451
-3
-5
0
-2
12
-4
-119
-126
-141
35
33
37
-5
-3
-53
3
-2
9
36
35
41
1
75
100
264
294
440
-3 293
-4 349
-4 251
20
16
0
79
-41
-474
1 401
2 078
1 498
2 062
522
-74
-84
-195
-385
-150
-46
28
53
-50
120
352
-1 771
-3 098
-33
-36
-11
Profit for the year
Group contribution from/to subsidiaries
Retained profit in subsidiaries and jointly controlled businesses
Dividend to owners of primary capital certificates
Dividends from subsidiaries
Write-downs financial fixed assets
Deprecation and write-downs
Loss on loans
Transferred from the year’s activity
Change in gross loans to customers
Change in acquired assets
1999
1998
1997
451
275
318
0
0
0
0
0
0
-141
-126
-119
0
0
0
-54
-2
-5
8
-2
3
42
37
39
102
76
-3
408
258
233
-4 358
-4 481
-3 608
-2
16
20
-21
-39
14
Change in deposits from customers
1 730
2 282
1 169
Change in debt to credit institutions
-498
130
2 677
Change in certificates and bonds
Change in claims on credit institutions
-385
-195
-84
Change in other claims
26
-57
-138
Change in other short-term liabilities
54
69
62
-3 046
-2 017
345
-14
-39
-34
A Net change in liquidity from the activity
Change in fixed assets
-67
-2
-104
Change in shares and ownership stakes
-101
-2
-70
-100
-38
-115
B Net change in liquidity, investments
-115
-41
-104
0
225
-25
-306
1 503
3 303
539
-316
349
233
1 412
3 627
485
-397
414
260
745
348
745
348
762
485
-397
414
Change in deposits from Norges Bank
Change in debt established on issue of securities
Change in other long-term liabilities
-25
225
0
3 216
1 703
-361
384
-267
605
3 575
1 661
244
A+B+C Net change in liquidity during the year
414
-397
485
Liquidity supply January 1st
348
745
260
Liquidity supply December 31st
762
348
745
Net change in liquidity during the year
414
-397
485
C Net change in liquidity, financing
The liquidity supply includes cash and claims on central banks, plus the share of the total of claims on credit istitutions that pertains to placements solely in credit
institutions. The cash flow analysis shows how SpareBank 1 SR-Bank and SpareBank 1 SR-Bank Group respectively have acquired liquid funds and how these
have been spent.
In all, the liquidity supply of the SpareBank 1 SR-Bank Group decreased by NOK 414 million. Operations in 1999 have been characterized by a substantial
lending growth of NOK 4 358 million.This growth has been partially financed by the increase in customer deposits of NOK 1 730 million and partially by
the increase in debt established on issue of securities of NOK 3 216 million.
46.
Auditors report for 1999.
To the Supervisory Board of
Sparebanken Rogaland
We have audited the annual financial statements of
Sparebanken Rogaland as of 31 December 1999,
showing a profit of NOK 451 millions for the parent
company and a profit of NOK 451 millions for the
group. We have also audited the information in the
Board of Directors' report concerning the financial
statements, the going concern assumption, and the
proposal for the appropriation of the profit. The
financial statements comprise the balance sheet, the
statements of income and cash flows, the accompanying
notes and the group accounts. These financial statements are the responsibility of the Company’s Board
of Directors and Managing Director. Our responsibility
is to express an opinion on these financial statements
and on other information according to the requirements of the Norwegian Act on Auditing and Auditors.
in the financial statements. An audit also includes
assessing the accounting principles used and significant
estimates made by management, as well as evaluating
the overall financial statement presentation. To the
extent required by law and good auditing practice an
audit also comprises a review of the management of
the Company's financial affairs and its accounting
and internal control systems. We believe that our
audit provides a reasonable basis for our opinion.
In our opinion
the financial statements have been prepared in
accordance with law and regulations and present the
financial position of the Company and of the Group
as of 31 December 1999, and the results of its
operations and its cash flows for the year then
ended, in accordance with good accounting practice
the Company's management has fulfilled its obligation in respect of registration and documentation of
We conducted our audit in accordance with the Norwegian
accounting information as required by law and
Act on Auditing and Auditors and good auditing practice.
good accounting practice
Good auditing practice requires that we plan and perthe information in the Board of Directors' report
form the audit to obtain reasonable assurance about
concerning the financial statements, the going conwhether the financial statements are free of material
cern assumption, and the proposal for the appromisstatement. An audit includes examining, on a test
priation of the profit is consistent with the financial
basis, evidence supporting the amounts and disclosures
statements and comply with law and regulations.
•
•
•
ARTHUR ANDERSEN & CO.
Finn Kinserdal
STATE AUTHORISED PUBLIC ACCOUNTANT (NORWAY)
The audit committee’s report for 1999.
The audit committee has carried out its assignment
in accordance with the Savings Banks Act and the
committee’s instructions.
The bank’s activities in 1999 have complied with the
Savings Banks Act, the bank’s articles of association and
other rules that the bank is required to comply with.
Harald Ribland, formann
The annual report and accounts have been submitted in
accordance with the provisions of the Savings Banks Act
and the Banking Insurance and Securities Commission. The
supervisory Board can approve the profit and loss account
and the balance sheet as the bank’s accounts for 1998.
Odd Rune Torstrup
Odd W. Bøe
Egil Bue
Arnhild Skrunes
47.
Deposits, loans & Profits in
SpareBank 1 SR-Bank.
Profit
Office (Amount in NOK million)
Deposits Growth in %
Loans Growth in %
Haugesund
823
9.5
1 822
17.4
Næringsliv
97
-30.3
996
-19.9
Bokn
65
10.2
75
2.1
Karmøy
903
4.9
1 577
10.1
Tysvær
380
14.2
672
10.4
Vindafjord
102
-15.5
160
15.8
Ølen
345
15.2
470
11.0
Total Haugalandet Region
2 715
5.9
5 772
5.5
Strand
561
11.0
853
21.1
Finnøy
209
20.5
252
9.2
Forsand
114
-4.0
108
9.1
Hjelmeland
147
15.7
434
20.8
32
16.5
56
37.4
Rennesøy
253
23.8
411
11.6
Suldal
506
1.2
608
14.6
Total Ryfylke Region
1 822
10.0
2 722
16.7
Sentrum
2 008
8.0
2 516
18.6
Næringsliv
2 146
21.2
4 203
16.5
Hundvåg
419
13.5
920
15.1
Mariero
548
7.0
765
31.2
Hillevåg
325
9.5
421
37.3
Forus
233
10.6
611
43.5
Tasta
297
17.6
667
23.3
Madla
503
6.2
841
22.1
Total Stavanger Region
6 479
12.8
10 944
20.6
Sandnes
1 498
20.7
3 488
23.1
Bryne
178
-16.1
589
8.8
Gjesdal
332
5.6
624
12.9
Nærbø
361
18.1
484
16.1
Kvitsøy
Randaberg
Sola
Flyplassen
417
17.8
583
19.8
1 071
11.8
1 661
17.9
10
60.1
13
201.1
599
2.2
910
8.3
4 466
12.3
8 352
17.9
941
2.9
1 223
13.9
Bjerkreim
218
13.3
211
9.6
Flekkefjord
222
19.3
382
-0.8
Lund
122
8.9
171
26.4
Sirdal
252
-10.7
201
17.5
Sokndal
305
5.1
334
12.1
Varhaug
Total Jæren Region
Egersund
Total Sør Region
Total Regions
Total Bjergsted/Mariero
Total SpareBank 1 SR-Bank
48.
Before loss
After loss
128
77
56
53
202
208
163
152
2 060
4.2
2 522
11.8
60
60
17 542
10.2
30 312
15.6
609
550
503
-19.7
138
70.3
30
33
18 045
9.1
30 450
15.8
639
583
Key figures last 5 years.
1999
1998
1997
1996
1995
PROFIT AND LOSS ACCOUNT (NOK million)
Net interest income
Taxes
Profit for the year
895
120
261
1 276
622
654
56
598
147
451
797
-38
217
976
527
449
72
377
102
275
667
59
200
926
493
433
-5
438
120
318
647
40
180
867
524
343
-27
370
86
284
658
21
178
857
510
347
22
325
50
275
PROFIT AND LOSS ACCOUNT (% of average total assets)
Net interest income
Taxes
Profit for the year
2.63%
0.35%
0.77%
3.76%
1.83%
1.93%
0.17%
1.76%
0.43%
1.33%
2.73%
-0.13%
0.75%
3.35%
1.81%
1.54%
0.25%
1.30%
0.35%
0.94%
2.65%
0.23%
0.80%
3.67%
1.96%
1.72%
-0.02%
1.74%
0.48%
1.26%
3.03%
0.19%
0.84%
4.06%
2.45%
1.60%
-0.13%
1.73%
0.40%
1.33%
3.33%
0.11%
0.90%
4.34%
2.58%
1.76%
0.11%
1.65%
0.25%
1.39%
31
17
11
9
7
26
15
9
8
6
22
12
7
8
5
Key figures in SpareBank 1 SR-Bank group
VOLUMES (NOK million)
Total assets
Loans to private customers
Loans to corporate sector
Deposits from private customers
Deposits from corporate sector
Growth in loans to private customers %
Growth in loans to corporate sector %
Growth in deposits from private customers %
Growth in deposits from corporate sector %
36
20
11
10
8
EQUITY (NOK million)
Other equity
Total equity
KEY-FIGURES
Return on equity %
Income per cost krone
Costs as a percentage of income
Number of man-years
Gross non-performing loans as a percentage of loans
Net non-performing loans as a percentage of loans
Unspecified loss provisions as a percentage of loans
Capital adequacy ratio %
Core capital ratio %
397
931
942
951
260
19.5
7.6
11.6
7.7
232
519
098
815
666
15.3
23.0
12.6
18.3
946
193
020
719
480
18.4
16.1
5.3
12.6
531
831
770
277
753
11.7
12.2
1.6
0.3
20
11
6
8
5
098
491
927
150
733
7.2
7.9
3.9
-5.7
744
727
620
125
2 216
744
590
461
121
1 916
744
513
387
124
1 768
744
407
244
91
1 486
744
335
153
83
1 315
21.8
1.86
49
677
0.9
0.5
0.7%
12.12%
8.63%
14.9
1.92
54
669
0.8
0.4
0.7%
11.49%
8.37%
19.1
1.76
53
667
1.1
0.7
0.7%
15.08%
9.55%
20.3
1.55
60
666
2.0
0.9
0.7%
12.21%
10.06%
22.1
1.61
60
711
4.3
2.4
0.7%
12.55%
9.91%
253
64.8%
19.0
21.4
40.4
47%
27.74
192
66.6%
17.0
9.5
26.5
64%
28.01
240
68.6%
16.0
14.0
30.0
53%
26.18
174
70.7%
15.0
12.4
27.4
55%
29.05
147
72.6%
14.0
2.7
16.7
84%
5.63
KEY-FIGURES FOR PRIMARY CAPITAL CERTIFICATES
Primary capital certificate ratio
Dividends per primary capital certificate
Allocated to the dividend equalization reserve per primary capital certificate
Profit per primary capital certificate (Parent bank)
Payout ratio, net
RISK-amount as at Jan 1 following year
49.
Graphic overlook last 5 years.
Profit and loss (NOK million)
Total operating costs (% of aver. total assets)
Deposits and loans (NOK billion)
600
3,5
500
3,0
400
2,5
300
2,0
200
1,5
100
1,0
0
0,5
33
32
31
30
29
28
27
26
25
24
23
22
21
20
19
18
17
16
15
14
13
0
-100
1995
1996
1997
1998
1995
1999
1996
1997
1998
1999
1995
1996
1997
1998
1999
Equity (NOK million)
Return on equity %
Profit per primary capital certificate (parent bank)
2400
35
40
2200
30
36
2000
25
32
1800
20
28
1600
15
24
1400
10
20
1200
5
16
1000
0
12
1995
800
1996
1997
Return on equity
600
400
1998
1999
8
4
0
1995
200
1996
1997
1998
1999
Dividend per primary capital certificate
0
1995
1996
1997
1998
1999
The bank’s
Primary capital certificate capital
reserves
Dividend equaSavnings bank’s reserve
lization reserve
Subordinated loancapital
The diagrams refer to SpareBank 1 SR-Bank if not differently stated
50.
Allocated to dividend equalization reserve
per primary capital certificate
Primary
capital certificates
Primary capital
At the end of 1999, SpareBank 1 SR-Bank's
primary capital was NOK 744 million divided among
7,440,000 primary capital certificates with a nominal
value of NOK 100 each. The number of primary
capital certificate owners was 5,901 as of 31
December 1999, an increase of 203 compared
with the same date last year.
Investor policy
The financial objective of SpareBank 1 SR-Bank's
operations is to achieve profits that yield a good and
stabile return on the bank's total equity capital.
SpareBank 1 SR-Bank's aim is to divide the profit
between the primary capital certificate owners and
the savings banks' reserve in proportion to their
respective shares of the bank's equity capital.
SpareBank 1 SR-Bank will emphasis the importance
of a competitive cash dividend. In the proportional
distribution between cash dividend and the dividend
equalization reserve, variations may arise when consideration of the bank's equity capital development
must be given priority.
The primary capital certificate owners will be awarded
NOK 40.40 per primary capital certificate in the
year-end appropriations. Of this amount, NOK 19 is
cash dividend and NOK 21.40 is an allocation to the
equalization fund. For the primary capital certificate
owners this amounts to 66.6% of the bank's annual
profits of NOK 451 million. For the 2000 year-end
appropriations the share will be 64.8%.
Ownership
SpareBank 1 SR-Bank aims to achieve good liquidity
in its primary capital certificates in addition to a
diversification of the primary capital certificates
among owners who represent the customer base,
regional investors, as well as Norwegian and foreign
institutions. The number of owners has increased by
203 to 5,901 in 1999. The percentage of primary
capital certificates owned by investors in Rogaland
now amounts to 44% compared with 46% in 1998.
Other Norwegian investors amount to 46% compared
with 52% in 1998 and the percentage of foreign
owners increased from 2% to 10% as of 31
December 1999.
Financial calendar for 2000
1 quarter
28 April 2000
2 quarter
20 August 2000
3 quarter
28 October 2000
The liquidity of the primary capital certificates
has been lower in 1999 than the year before, given
that 39% of the outstanding certificates were sold
on the Oslo Stock Exchange as compared with 48%
last year.
he market price of the primary capital certificates
was NOK 253 at the end of the year compared with
NOK 192 at the beginning of the year. The market
value of SpareBank 1 SR-Bank was NOK 1,9 billion
as of 31 December 1999, and it is thus the fifth
largest bank on the Oslo Stock Exchange.
In order to avoid double taxation of the bank and the
owners, the tax-related original value for Norwegian
owners is adjusted every year. This is done in accordance with the RISK rules (adjustment of original
value with taxed capital). The RISK amount for 1999
has been calculated at NOK 28 compared with NOK
27.74 for 1998.
The bank places substantial emphasis on its
information activities vis-à-vis the investor market.
Presentations are held each quarter in Stavanger and
Oslo, as well as in the regions in Rogaland. Regular
presentations are held for foreign owners, mainly in
London.
SpareBank 1 SR-Bank also makes information
available via the Internet, covering investors, the
broker business and the press.
Internet addresses
www.sr-bank.no
SpareBank 1 SR-Bank's web site
www.huginonline.no
Hugin Online, financial information
51.
Turnover of the bank’s
primary capital certificates
Market price trend in 1999
260
1500
250
1250
240
1000
230
750
220
500
210
250
200
0
190
1. Q
2. Q
3. Q
4. Q
1998
1999
KEY FIGURES
Dividend per primary capital certificate
Direct return (1)
Effective return (2)
180
170
Jan
31.12.98
Feb
Mar
Apr
May
1999
1998
253
192
19
17
7.5 %
8.9 %
41%
-13%
Book equity per certificate – Group (3)
193
172
Earnings per certificate – Group (4)
40,4
26,5
Profit ratio per certificate – Parent bank (5)
60,6
37
Utdelingsforhold, netto (6)
47%
64%
Payout ratio, gross (7)
Primary certificate percentage (8)
31%
46%
64.8%
66.6%
(1) Dividend as a percentage of the market price at the close of the year
(2) Market price rise for the whole year plus the paid out dividend as a percentage of the market price at the
begining of the year
(3) The primary capital certificates’ percentage of the groups equity capital per certificate
(4) The cash dividend + allocated to the equalization fund per certificate
(5) The parents bank’s result after tax divided by number of certificate
(6) The dividend per certificate as a percentage of the earnings per certificate
(7) The dividend per certificate as a percentage of the profit ratio per certificate
(8) The primary capital and the dividend equalization fund as a percentage of the parent bank’s equity
capital at the close of the year
52.
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Representatives.
THE SUPERVISORY BOARD
Chairman: Manager Ivar Kolnes, Stavanger ............................... (17 100)
Vice-chairman: Mayor Randulf Skretting, Sokndal .................... (1 760)
ELECTED BYTHE PRIMARY CAPITAL CERTIFICATE OWNERS
Bjarne Anderson, Oslo, ................................................................. (366 600)
Printer Jan S. Aske, Stavanger .......................................................... (2 000)
Marit Borgen, Stavanger ......................................................................... (600)
Eivinn A. Enoksen, Stavanger ............................................................ (3 070)
Manager Thor Arne Eng, Skudeneshavn .................................... (4 500)
Alf Erevik, Hønefoss, (vararepr.) .................................................. (50 770)
Ole Gabrielsen, Sandnes ........................................................................ (500)
Marta Gudmestad, Stavanger .......................................................... (4 350)
Manager Gunnar Hagen, Stavanger .............................................. (9 000)
Managing Director Harald V. Hanssen, Stavanger ...................... (1 400)
Managing Director Finn Haugan, Trondheim ............................ (91 729)
Managing Director Per Hedberg, Stavanger .............................. (15 133)
Anne Elise Hystad ................................................................................. (3 700)
Erik Sture Larre, Oslo ....................................................................... (16 500)
Birte Næsheim, Stavanger ................................................................. (3 600)
Director Kåre Johan Osen, Bergen, ............................................. (13 600)
Dep. Man. Dir. Harald Sig. Pedersen, Stavanger ................... (38 300)
Bjarne Risa, Nærbø ............................................................................... (2 750)
Einar Risa, Stavanger .......................................................................... (10 000)
Managing Director Bjørn M. Stangeland, Sandnes .................... (2 450)
Trygve Stangeland, Sola ................................................................... (36 700)
Managing Director Jan Olav Steensland, Oslo ...................... (219 300)
Arnstein Sunde, Jørpeland
Ove Tveteraas, Stavanger ............................................................. (194 000)
Martin Ølberg, Stavanger .................................................................. (1 400)
ELECTED BY THE DEPOSITORS:
Engineer Sjur Bjørgo, Sandnes
Office Manager Odd Broshaug, Karmøy
Controller Egil Bue, Sola
Farmer Berge Bustad, Tysvær
Managing Director Rolf Ersdal, Strand ................................................ (600)
Electrician Trygve Haraldseid, Vats
Office Clerck Lindy Haram, Bokn
Controller Dagfinn E. Helland, Suldal
Insurer Odd Hovland, Egersund ...................................................... (4 750)
Managing Director Helge Larsen, Haugesund
Svein G. Larsen, Flekkefjord
Farmer Sigmund Lindeland, Sirdal ...................................................... (900)
Manager Johan Livastøl, Hjelmeland
Finn Nesvold, Sokndal
Arne Otto, Bryne
Platform Manager Bjarne Pedersen, Kvitsøy ............................... (1 000)
Marketing Consultant Jørgen Risdal, Hå
Social Security Officer Oddlaug Rødne, Ølen
Farmer Sigmund Skjæveland, Bjerkreim
Gunvald Surdal, Lund ............................................................................... (880)
Educational officer Ingeborg Søyland, Forsand
Arild Sørheim, Rennesøy
Kari Thu, Stavanger .................................................................................... (150)
Gardener Helge Todnem, Randaberg ................................................ (100)
Torgeir Undheim, Gjesdal
Accountant Karin Vik, Finnøy .................................................................. (200)
APPOINTED BY THE MUNICIPALITIES
Headmaster Arne Borgemyr, Ølen
Chief Dentist Asbjørn Dalsmo, Sirdal
Peder Eikeland, Bjerkreim
Co-ordinator Kjell H. Fredriksen, Egersund
Gardener Karl Johan Eie, Strand .......................................................... (392)
Controller Magne Grøtteland, Flekkefjord
Eli Hellestø, Sola
Manager Svein Hodnefjell, Rennesøy
Farmer Kjell Hognestad, Bryne
Pensioner Øystein Hognestad, Lund
Arne Hosaas, Bokn
Erling Haaland, Kvitsøy
Elisabeth Sjo Jespersen, Stavanger
Magnhild Harbo Kleppe, Hjelmeland
Dagny Matland, Avaldsnes ..................................................................... (900)
Mayor Fridtjov Thorsen Norland, Forsand
Ottar Sandanger, Finnøy ............................................................................ (20)
Team-leader Einar Simonsen, Randaberg
Dentist Audun Skage, Haugesund
Farmer Svein Skare, Vats ..................................................................... (1 000)
Tormod Skeie, Suldal ........................................................................... (3 929)
Berit Skjæveland, Sandnes
Farmer Arnhild Skrunes, Tysvær ...................................................... (2 000)
Machinist Kåre Todnem, Gjesdal
Odd Øverby, Hå
ELECTED BY THE EMPLOYEES
Marit Ask, Karmøy ..................................................................................... (100)
Bertha Auestad, Bjerkreim .................................................................... (200)
Rigmor Bø Austrått, Varhaug
Gyrid Bakka, Suldal ....................................................................................... (50)
Bjørn Berland, Stavanger
Leif Bø, Sandnes
Børge Espeland, Sola ................................................................................ (209)
Grete Frøyland, Nærbø
Geir Gundersen, Stavanger
Hugo Hansen, Stavanger ........................................................................... (50)
Margot O. Kristoffersen, Stavanger ................................................... (400)
John Lervik, Haugesund
Kristin Gundersen Lund, Stavanger
Geir Olav Måland, Stavanger
Jan M. Nilsen, Stavanger
Kjell Rek, Sokndal
Mette Skaugerud, Stavanger
Berly Sleire, Stavanger ................................................................................ (36)
Arne Steinbru, Suldal ............................................................................... (117)
Margareth Helle Storesund, Karmøy ............................................... (100)
Eirik Thorsen, Stavanger
Erling Trædal, Ølen
Torodd Varhaug, Varhaug
Helga Vinje, Egersund ............................................................................... (200)
Eli Lunde Wells, Stavanger
Birte Wereide, Stavanger .......................................................................... (30)
THE BOARD OF DIRECTORS
Manager Geir Worum, chairman
Advokat Tor Haver, vice-chairman
Farmer Dominikus N. Bjordal ............................................................... (200)
Shipowner Kristian Eidesvik ............................................................... (1 000)
Managing Director Magne Vathne
Business Manager Åse Holmane ...................................................... (1 000)
Chief Financial Officer Ole Gladhaug ................................................... (200)
Managing Director Terje Vareberg .................................................. (3 088)
Main Employee Representative Karl A. Naley
Dept. Employee Representative Torstein Plener
(regularly attending deputy board member for the employees)
AUDIT COMITTÉE
Local Tax Officer Harald Ribland, chairman
Controller Egil Bue
Local Tax Officer Odd W. Bøe
Attorney at Law Odd R. Torstrup
Farmer Arnhild Skrunes
AUDITOR
Arthur Andersen & Co. by Finn Kinserdal, State Authorised Public Accountant
(The numbers indicate how many
primary capital certificates the
person in question owned in
Sparebanken Rogaland as per 31
December 1999. Also included are
primary capital certificates belonging to the nearest kin and wellknown companies in which the
person in question has decisive
influence, cf. the Companies Act’s
§ 1-2. Primary capital certificates
belonging to the institution that
the employee representative in
question was chosen on behalf
of are also included.)
53.
Organisational chart.
AUDITOR
BOARD OF DIRECTORS
AUDIT COMMITTEE
BOARD OF DIRECTORS
EiendomsMegler 1 Rogaland AS
(100%)
Westbroker Finans AS
(100%)
MANAGING DIRECTOR
Terje Vareberg
Garde ASA
(25%)
DEPUTY MANAGING DIRECTOR
Gunnar Dolven
SpareBank 1 Group AS
(15%)
PROJECTS
Aud Inger Haugland
DEVELOPMENT
Håkon Sivertsen
FINANCE
Sveinung Hestnes
CORPORATE Group/Stavanger
Tor Dahle
COMPANY SECRETARY
Rolf Simonsen
SERVICE CENTRE
IT DIVISION
Petter Linaae
ANALYSIS
CORPORATE Group
Tore Medhus
PERSONELL DIVISION
Rolf Simonsen
PROCESSES
FD 2001
Christina Lund
ACTIVE MANAGEMENT
Dag Sønsterud
CORPORATE Stavanger
Rasmus Kvassheim/Kåre Idsøe
CONTROLLER
Torbjørn Vasstveit
BACK OFFICE
Hugo Hansen
CORPORATE Special service
Kurt Helland
PRIVATE MARKET/INFORMATION
Bjørnar Jacobsen/Frode Midttun
COMMITMENTS
Henry Bjørkelund
PAYMENT SERVICES
Jan Friestad
ACCOUNTING
Kari H.Tollefsen
VÅR B&F
Hans Petter Dyrseth
FOREIGN EXCHANGE
Per Skibeli
REGION SØR
Knut Sirevåg
54.
REGION JÆREN
Lars Enevoldsen
REGION STAVANGER PM
Rolf Aarsheim
REGION RYFYLKE
Gunnar Fatland
REGION HAUGALAND
Bjarne Askevold
EGERSUND
Dag Sørensen
SANDNES
Lars Enevoldsen
SENTRUM
Lars Magne Markhus
STRAND
Olav Strand
HAUGALAND CORPORATE
Øyvind Rønnevik
SOKNDAL
Henning Stålesen
GJESDAL
Øyvind Sjøtrø
FORUS
Grete Eide
FORSAND
Bendik Voll
HAUGESUND PM
Halvor Urrang
BJERKREIM
Arne Geir Larsen
VARHAUG
Mindor Jelsa
MARIERO
Stig Bjørheim
KVITSØY
Astrid Throndsen
KARMØY
Anders Rundhaug
LUND
Wenche Netland
BRYNE
Torvald Søiland
MADLA
Rune Bertelsen
RENNESØY
Brit Jane Tolaas
TYSVÆR
Svein Hauge
FLEKKEFJORD
Terje Johnsen
SOLA
Bjørg Haarr
TASTA
Haakon Færaas
FINNØY
Reimund Flesjå
BOKN
Olav Lande Rossebø
SIRDAL
Roger Abusland
NÆRBØ
Elin Garborg
HUNDVÅG
Geir Gundersen
HJELMELAND
Njål Skår
VINDAFJORD
Arne Gjerde
RANDABERG
Arild L. Johannessen
HILLEVÅG
Kjetil Øygarden
SULDAL
Torfrid Baustad
ØLEN
Magne Kr. Haugland
Branch offices.
Ølen
Bergen
E134
Røvær
Haugesund
Sand
Vats
Suldal
Aksdal
E39
Utsira
Nedstrand
13
Avaldsnes
Kopervik
47
Jelsa
Åkrahamn
Karmøy
Kårstø
Bokn
511
Sjernarøyane
Erfjord
Ombo
Hjelmeland
Arsvågen
Finnøy
Mortevika
Skudeneshavn
Kvitsøy
Rennesøy
Tau
Årdal
Fister
Fogn
Talgje
Randaberg
Jørpeland
Tananger
England
Stavanger
509
Lysefjorden
Sola
13
Forsand
Lauvvik
510
Bore
Sandnes
44
Klepp
Oltedal
Figgjo
Bryne
50
Ålgård
50
Undheim
Nærbø
44
E39
Byrkjedal
Bue
50
Varhaug
Vigrestad
Sirdal
45 FJELLVEGEN
505
503
Vikeså
Bjerkreim
Brusand
Tonstad
42
Sirevåg
42
Helleland
Egersund
Ualand
E39
Heskestad
50
Moi
Lund
Fv 1
Hanstholm,
Danmark
Sokndal
Jøssingfjord
Knaben
Hauge
ÅnaSira
466
Flekkefjord
44
E39
Feda
Hidra
55.
Addresses.
MAIN SWITHCBOARD
+47 51 50 90 00
BOKN
5561 Bokn
Branch Manager Olav Lande Rossebø
HUNDVÅG
P.O. box 26, 4085 Hundvåg
General Manager Geir Gundersen
RANDABERG
P.O. box 90, 4070 Randaberg
General Manager Arild L. Johannesen
MAIN OFFICE:
Bjergsted Terrasse 1
P.O. box 218, 4001 Stavanger
Telefax +47 51 53 18 64
Telex 33 016 SRBK N
E-mail: [email protected]
Internet address: www.sr-bank.no
KARMØY
P.O. box 68, 4291 Kopervik
General Manager Anders Rundhaug
Brancher: Avaldsnes - Skudeneshavn
MADLA
P.O. box 525, 4040 Hafrsfjord
General Manager Rune Bertelsen
BRYNE
P.O. box 413, 4341 Bryne
General Manager Torvald Søiland
TASTA
General Manager Håkon Færaas
GJESDAL
P.O. box 55, 4330 Ålgård
General Manager Øyvind Sjøtrø
Branch: Gilja
Management:
Managing Director Terje Vareberg
Dept. Managing Dir. Gunnar Dolven
Company Secretary Rolf Simonsen
Projects:
Director Aud Inger Haugland
Service Centre:
Langflåtveien 5, 4017 Stavanger
Development:
Chief Information Officer:
Håkon Sivertsen
IT-DIVISION: Petter Linaae
FD-2001: General Manager Christina Lund
Finance:
Financial Director Sveinung Hestnes
Analysis:
Active Management:
General Manager Dag Sønsterud
Back Office: Hugo Hansen
Commitments: Henry Bjørkelund
Foreign exchange department:
Chief Dealer: Per Skibeli
Accounting: Kari Tollefsen
Controller:
General Manager Torbjørn Vasstveit
Corporate Group/Stavanger:
Regional General Manager Tor Dahle
Corporate Group
General Manager Tore Medhus
Corporate Stavanger:
Kåre Idsøe/Rasmus Kvassheim
Corporate Special Service:
General Manager Kurt Helland
Personell:
General Manager Rolf Simonsen
Market PM:
Marketing Manager Bjørnar Jacobsen
Information:
Public Relations Mngr. Frode Midttun
REGION HAUGALANDET
Regional Gen. Mngr. Bjarne Askevold
HAUGESUND
Telefax +47 52 71 24 91
Sørhauggata 150, P.O. box 473
5501 Haugesund
General Manager Halvor Urrang
Corporate market: General Manager
Øyvind Rønnevik
Branch: Norheim/Oasen
56.
TYSVÆR
P.O. box 44,
5570 Grindafjord
General Manager Svein Hauge
Branch: Nedstrand
VINDAFJORD
5576 Øvre Vats
General Manager Arne Gjerde
ØLEN
P.O. box 33, 5580 Ølen
General Manager Magne Kr. Haugland
REGION SØR
Regional Gen. Mngr. Knut Sirevåg
EGERSUND
Telefax +47 51 49 29 97
P.O. box 190, 4371 Egersund
General Manager Dag Sørensen
Corporate market:
General Manager Per Ingve Leidland
Branches: Helleland - Heskestad Ualand
BJERKREIM
P.O. box 10, 4389 Vikeså
General Manager Arne Geir Larsen
FLEKKEFJORD
P.O. box 98, 4401 Flekkefjord
General Manager Terje Johnsen
LUND
P.O. box 94, 4460 Moi
General Manager Wenche Netland
Branch: Hovsherad
SIRDAL
P.O. box 25, 4440 Tonstad
General Manager Roger Abusland
SOKNDAL
P.O. box 10, 4380 Hauge i Dalane
General Manager Henning Stålesen
REGION STAVANGER
Private market:
Regional Gen. Mngr. Rolf Aarsheim
SENTRUM
Telefax +47 51 89 50 60
Domkirkeplassen 1, P.O. box 218
4001 Stavanger
General Manager Lars Magne Markhus
Branches: Stokka - Østre bydel
FORUS
Petroleumsvn. 6, 4033 Forus
General Manager Grete Eide
MARIERO
Breidablikkvn. 3a, 4017 Stavanger
General Manager Stig Bjørheim
Branch: Hinna
HILLEVÅG
Kilden, Gartnerveien 16
4016 Stavanger
General Manager Kjetil Øygarden
REGION RYFYLKE
Regional Gen. Mngr. Gunnar Fatland
STRAND
Telefax +47 51 74 91 60
P.O. box 8, 4100 Jørpeland
General Manager Olav Strand
Corporate market: General manager
Børge Oanes
Branch:Tau
FINNØY
P.O. box 25, 4160 Judaberg
General Manager Reimund Flesjå
Branch: Sjernarøy
FORSAND
4110 Forsand
General Manager Bendik Voll
HJELMELAND
P.O. box 55, 4137 Årdal i Ryfylke
General Manager Njål Skår
Branch: Fister
SULDAL
4230 SAND
General Manager Torfrid Baustad
RENNESØY
P.O. Box 10, 4150 Rennesøy
General Manager Brit Jane Tolaas
KVITSØY
4090 Kvitsøy
General Manager Astrid H.Throndsen
REGION JÆREN
Regional Gen. Mngr. Lars Enevoldsen
SANDNES
Telefax +47 51 62 52 25
P.O. box 33, 4301 Sandnes
Regional Gen. Mngr: Lars Enevoldsen
Corporate market:
General Manager Carina Mossin Sanne
Branches: Ganddal - Kvadrat - Langgata
NÆRBØ
P.O. box 205, 4350 Nærbø
General Manager Elin Garborg
SOLA
P.O. box 39, 4051 Sola
General Manager Bjørg Haarr
Corporate market:
Ass. General Manager Heinz Goldhahn
Branch:Tananger
VARHAUG
P.O. box 94, 4460 Varhaug
General Manager Mindor Jelsa
Corporate market: Lars Varhaug
Brancher: Brusand - Sirevåg - Vigrestad
SUBSIDIARIES
EiendomsMegler 1 Rogaland AS
Telephone +47 51 50 90 00
Telefax +47 51 89 50 44
Domkirkeplassen 2
Managing Director Johannes Vold
Branches:
Madla - Mariero - Sandnes - Kvadrat
- Sola - Jæren - Egersund - Hau-gesund
WESTBROKER FINANS A/S
Telephone +47 51 50 92 00
Telefax +47 51 50 92 01
Bjergsted Terrasse 1, P.O. box 598,
4001 Stavanger
Managing Director Arne Gravdal
PARTIALLY-OWNED COMPANIES
GARDE A/S
Telephone +47 51 83 63 00
Telefax +47 51 83 63 51
Haakon VII'sgt. 8, P.O. box 163,
N-4001 Stavanger
Managing Director Tor Egil Aanestad
Annual Report 1999.
Vision.
S
« pareBank 1 SR-Bank shall be regarded
by the customer as the recommended
and leading bank within it’s market.»
Idea and layout: Printers • Photo: Tom Haga • Print: Bryne Offset

SpareBank 1 SR-Bank

Transcription

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