Note 1

Accounting principles

Møre Boligkreditt AS’ interim accounts have been prepared in accordance with the International Financial Reporting Standards (IFRS) adopted by the EU as of 31 March 2025. The interim report has been prepared in accordance with IAS 34 Interim Financial Reporting. The accounts are prepared using the same principles and with the same methodology as the annual accounts for 2024.

All amounts are stated in NOK million unless stated otherwise.

The interim financial statements are not audited.

 

Note 2

Equity and related capital

Tier 1 capital and supplementary capital31.03.202531.03.202431.12.2024
Share capital and share premium2 1501 6501 650
Liability credit reserve-43-13-43
Other equity5037169
Total equity2 1571 6741 776
Value adjustments of financial instruments at fair value-4-3-4
Expected IRB-losses exceeding ECL-56-46-53
Dividends00-169
Deductions for total comprehensive income for the period-50-370
Common Equity Tier 1 capital2 0471 5881 550
Supplementary capital000
Net equity and subordinated loan capital2 0471 5881 550
    
Risk-Weighted Assets (RWA) by exposure classes   
Credit risk - standardised approach31.03.202531.03.202431.12.2024
Regional governments or local authorities000
Institutions (banks etc)195421319
Covered bonds1688
Other items450
Total credit risk - standardised approach215434327
    
Credit risk - IRB Foundation   
Retail - Secured by real estate7 3606 6957 483
Retail - Other1030
Corporate lending737
Total credit risk - IRB-Foundation7 3776 7017 490
    
Credit valuation adjustment risk (CVA) - market risk9314194
Operational risk (Basic indicator Approach)455509455
Risk weighted assets (RWA)8 1407 7858 367
    
Minimum requirement Common Equity Tier 1 capital (4.5 %)366350377
    
Buffer Requirement31.03.202531.03.202431.12.2024
Countercyclical buffer (2,5 %)204195209
Capital conservation buffer (2.5 %)204195209
Systemic risk buffer (4,5 %)366350377
Total buffer requirements773740795
Available Common Equity Tier 1 capital after buffer requirements907498379
    
Capital adequacy as a percentage of the weighted asset calculation basis31.03.202531.03.202431.12.2024
Capital adequacy ratio25.1 %20.4 %18.5 %
Tier 1 capital ratio25.1 %20.4 %18.5 %
Common Equity Tier 1 capital ratio25.1 %20.4 %18.5 %
    
Leverage ratio31.03.202531.03.202431.12.2024
Leverage ratio5.5 %4.6 %4.0 %
    
Møre Boligkreditt AS' capital requirements at 31 March 2025 are based on IRB-Foundation.
 

Note 3

Operating segments

Møre Boligkreditt AS’ business mainly comprises operations within the retail banking market. Møre Boligkreditt AS has only one operating segment.

Loans to and receivables from customers    
31.03.2025Gross loans measured at amortised costECL Stage 1ECL Stage 2ECL Stage 3Loans measured at fair valueNet loans to and receivables from customers
Loans to and receivables from customers32 674-1-4-12 42435 092
       
       
31.03.2024Gross loans measured at amortised costECL Stage 1ECL Stage 2ECL Stage 3Loans measured at fair valueNet loans to and receivables from customers
Loans to and receivables from customers29 815-2-7-12 15531 960
       
       
31.12.2024Gross loans measured at amortised costECL Stage 1ECL Stage 2ECL Stage 3Loans measured at fair valueNet loans to and receivables from customers
Loans to and receivables from customers33 126-1-3-12 62535 746
Net interest income   
(NOK million)31.03.202531.03.202431.12.2024
Interest income from:   
Loans to and receivables from credit institutions71757
Loans to and receivables from customers4904691 903
Certificates, bonds and other interest-bearing securities12727
Interest income5094931 987
Interest expenses in respect of:   
Loans from credit institutions5653167
Debt securities issued3793681 530
Other interest expenses227
Interest expenses4374231 704
Net interest income7270283
 

Note 4

Impairment, losses and non-performance

Møre Boligkreditt AS applies a three-stage approach when assessing ECL on loans to customers in accordance with IFRS 9.

  • Stage 1: At initial recognition and if there’s no significant increase in credit risk, the commitment is classified in stage 1 with 12-months ECL.
  • Stage 2: If a significant increase in credit risk since initial recognition is identified, but without evidence of loss, the commitment is transferred to stage 2 with lifetime ECL measurement.
  • Stage 3: If the credit risk increases further and there’s evidence of loss, the commitment is transferred to stage 3.

 Staging is performed at account level and implies that two or more accounts held by the same customer can be placed in different stages.

 

 

Specification of credit loss expense (NOK millon)Q1 2025Q1 20242024
Changes in Expected Credit Loss (ECL) in stage 100-1
Changes in Expected Credit Loss (ECL) in stage 21-2-6
Changes in Expected Credit Loss (ECL) in stage 3001
Total impairments on loans in the period1-2-6
Changes in ECL in the period (NOK million) - 31.03.2025Stage 1Stage 2Stage 3Total
ECL 31.12.20241315
New loans0000
Disposal of loans0000
Changes in ECL in the period for loans which have not migrated0101
Migration to stage 10000
Migration to stage 20000
Migration to stage 30000
Other changes0000
ECL 31.03.20251416
     
     
Changes in ECL in the period (NOK million) - 31.03.2024Stage 1Stage 2Stage 3Total
ECL 31.12.202329011
New loans0000
Disposal of loans0-10-1
Changes in ECL in the period for loans which have not migrated0-10-1
Migration to stage 10-10-1
Migration to stage 20101
Migration to stage 30011
Other changes0000
ECL 31.03.202427110
     
     
Changes in ECL in the period (NOK million) - 31.12.2024Stage 1Stage 2Stage 3Total
ECL 31.12.202329011
New loans1102
Disposal of loans-1-20-3
Changes in ECL in the period for loans which have not migrated-1-20-3
Migration to stage 10-30-3
Migration to stage 20000
Migration to stage 30011
Other changes0000
ECL 31.12.20241315
Commitments (exposure) divided into risk groups based on probability of default (NOK million)
31.03.2025Stage 1Stage 2Stage 3Total
Low risk (0 % - < 0.5 %)31 84554031 899
Medium risk (0.5 % - < 3 %)8931 22002 113
High risk (3 % - <100 %)355140549
PD = 100 %--1111
Total commitments before ECL32 7731 7881134 572
- ECL-1-4-1-6
Loans to and receivables from customers 31.03.2025 *)32 7721 7841034 566
     
     
31.03.2024Stage 1Stage 2Stage 3Total
Low risk (0 % - < 0.5 %)28 440596029 036
Medium risk (0.5 % - < 3 %)2091 86202 071
High risk (3 % - <100 %)54880493
PD = 100 %--22
Total commitments before ECL28 6542 946231 602
- ECL-2-7-1-10
Loans to and receivables from customers 31.03.2024 *)28 6522 939131 592
     
     
31.12.2024Stage 1Stage 2Stage 3Total
Low risk (0 % - < 0.5 %)32 202112032 314
Medium risk (0.5 % - < 3 %)8191 36102 180
High risk (3 % - <100 %)304762508
PD = 100 %--33
Total commitments before ECL33 0511 949535 005
- ECL-1-3-1-5
Loans to and receivables from customers 31.12.2024 *)33 0501 946435 000
     
*) The tables above show exposures (incl. undrawn credit facilities) and are not including fixed rate loans assessed at fair value. The figures are thus not reconcilable against balances in the statement of financial position.
 

Note 5

Financial instruments

CLASSIFICATION AND MEASUREMENT
The company’s portfolio of financial instruments is at initial recognition classified in accordance with IFRS 9. Financial assets are classified in one of the following categories:

• Amortised cost
• Fair value with any changes in value through the income statement

The classification of the financial assets depends on two factors:

• The purpose of the acquisition of the financial instrument
• The contractual cash flows from the financial assets

Financial assets measured at amortised cost
The classification of the financial assets assumes that the following requirements are met:

• The asset is acquired to receive contractual cash flows
• The contractual cash flows consist solely of principal and interest

With the exception of fixed rate loans, all lending and receivables are recorded in the accounts at amortised cost, based on expected cash flows. The difference between the issue cost and the settlement amount at maturity, is amortised over the lifetime of the loan.

Financial liabilities measured at amortised cost
Debt securities, including debt securities included in fair value hedging and loans and deposits from credit institutions, are measured at amortised cost based on expected cash flows.

Financial instruments measured at fair value, any changes in value recognised through the income statement
The company's portfolio of bonds in the liquidity portfolio is classified at fair value with any value changes through the income statement, based on the business model of the company.

The portfolio of fixed interest rate loans is measured at fair value to avoid accounting mismatch in relation to the underlying interest rate swaps. 

Financial derivatives are instruments used to mitigate any interest- or currency risk incurred by the company. Financial derivatives are recorded at fair value, with any changes in value through the income statement, and recognised gross per contract, as either asset or debt.

Changes in basis swaps effects for swaps included in fair value hedging are recognised in OCI.

Losses and gains as a result of value changes on assets and liabilities measured at fair value with any value changes being recognised in the income statement, are included in the accounts during the period in which they occur.

LEVELS IN THE VALUATION HIERARCHY
Financial instruments at fair value are classified into different levels based on the quality of market data for each type of instrument.

Level 1 – Valuation based on prices in an active market
Level 1 comprises financial instruments valued by using quoted prices in active markets for identical assets or liabilities. This category includes bonds and certificates in LCR-level 1, traded in active markets.

Level 2 – Valuation based on observable market data
Level 2 comprises financial instruments valued by using information which is not quoted prices, but where prices are directly or indirectly observable for assets or liabilities, including quoted prices in inactive markets for identical assets or liabilities. This category mainly includes derivatives and bonds which are not included in level 1.

Level 3 – Valuation based on other than observable market data
Level 3 comprises financial instruments which cannot be valued based on directly or indirectly observable prices. Loans to customers are included in this category.

A change of 10 basis points in the discount rate will have an effect of approximately NOK 5 million on the valuation of the fixed rate loans as at 31.03.2025. 

Classification of financial instrumentsFinancial instruments at fair value through profit or lossFinancial instruments carried at amortised cost
 31.03.202531.03.202431.12.202431.03.202531.03.202431.12.2024
Loans to and receivables from credit institutions   9832 2431 911
Loans to and receivables from customers2 4242 1552 62532 66829 80533 121
Certificates and bonds261157208   
Financial derivatives7941 123913   
Total financial assets3 4793 4353 74633 65132 04835 032
Loans from credit institutions   5 3024 2265 199
Debt securities issued   29 36529 37531 503
Financial derivatives13785144   
Total financial liabilities1378514434 66733 60136 702
Fair value of financial instruments at amortised cost31.03.202531.03.202431.12.2024
 Fair valueBook valueFair valueBook valueFair valueBook value
Loans to and receivables from credit institutions9839832 2432 2431 9111 911
Loans to and receivables from customers32 66832 66829 80529 80533 12133 121
Total financial assets33 65133 65132 04832 04835 03235 032
Loans from credit institutions5 3025 3024 2264 2265 1995 199
Debt securities issued29 42229 36529 43529 37531 55331 503
Total financial liabilities34 72434 66733 66133 60136 75236 702
Financial instruments at fair value - 31.03.2025Based on prices in an active marketObservable market informationOther than observable market information 
 Level 1Level 2Level 3Total
Loans to and receivables from customers  2 4242 424
Certificates and bonds261  261
Financial derivatives 794 794
Total financial assets2617942 4243 479
Financial derivatives 137 137
Total financial liabilities-137-137
     
     
Financial instruments at fair value - 31.03.2024Based on prices in an active marketObservable market informationOther than observable market information 
 Level 1Level 2Level 3Total
Loans to and receivables from customers  2 1552 155
Certificates and bonds157  157
Financial derivatives 1 123 1 123
Total financial assets1571 1232 1553 435
Financial derivatives 85 85
Total financial liabilities-85-85
     
     
Financial instruments at fair value - 31.12.2024Based on prices in an active marketObservable market informationOther than observable market information 
 Level 1Level 2Level 3Total
Loans to and receivables from customers  2 6252 625
Certificates and bonds208  208
Financial derivatives 913 913
Total financial assets2089132 6253 746
Financial derivatives 144 144
Total financial liabilities-144-144
Reconciliation of movements in Level 3 during the periodLoans to and receivables from customers
Book value as at 31.12.20242 625
Purchase/increase9
Sales/reduction-215
Transferred to Level 30
Transferred out of Level 30
Gains/losses during the period5
Book value as at 31.03.20252 424
  
  
Reconciliation of movements in Level 3 during the periodLoans to and receivables from customers
Book value as at 31.12.20232 207
Purchase/increase34
Sales/reduction-77
Transferred to Level 30
Transferred out of Level 30
Gains/losses during the period-9
Book value as at 31.03.20242 155
  
  
Reconciliation of movements in Level 3 during the periodLoans to and receivables from customers
Book value as at 31.12.20232 207
Purchase/increase858
Sales/reduction-431
Transferred to Level 30
Transferred out of Level 30
Gains/losses during the period-9
Book value as at 31.12.20242 625
 

Note 6

Issued covered bonds


Securities issued at floating interest rates are measured at amortised cost. Fair value hedge accounting is used for the company's securities issued at fixed rate terms, and changes in fair value (due to the hedged risk) are recognized in profit and loss.

Covered bonds (NOK million)   
ISIN codeCurr.Nominal value 31.03.2025InterestIssuedMaturity31.03.202531.03.202431.12.2024
NO0010588072NOK1 050fixed NOK 4.75 %201020251 0721 0711 060
XS0968459361EUR25fixed EUR 2.81 %20132028296298299
NO0010836489NOK1 000fixed NOK 2.75 %20182028949946940
NO0010853096NOK-3M Nibor + 0.37 %20192025-3 0142010
XS2063496546EUR-fixed EUR 0.01 %20192024-2 859-
NO0010884950NOK3 0003M Nibor + 0.42 %202020253 0063 0063 006
XS2233150890EUR303M Euribor +0.75 %20202027348358359
NO0010951544NOK6 0003M Nibor + 0.75 %202120266 0566 0796 063
XS2389402905EUR250fixed EUR 0.01 %202120262 7672 7142 826
XS2556223233EUR250fixed EUR 3.125 %202220272 9592 9872 965
NO0012908617NOK6 0003M Nibor + 0.54 %202320286 0406 0436 043
XS2907263284EUR500fixed EUR 2,63 %202420295 872-5 932
Total borrowings raised through the issue of securities (incl. accrued interest)  29 36529 37531 503
Cover pool (NOK million)31.03.202531.03.202431.12.2024
Eligible mortgages (nominal)34 86231 76835 428
Substitute assets5341 4271 147
Total collateralised assets35 39633 19536 575
 
    
Covered bonds issued (NOK million)31.03.202531.03.202431.12.2024
Covered bonds (nominal) 1)28 60328 20730 603
-of which own holding (covered bonds)000
1) Swap exchange rates are applied for outstanding debt in currencies other than NOK
    
Over-collateralisation (in %) (Nominal calculation)31.03.202531.03.202431.12.2024
(Eligible mortgages + Substitute assets-Covered bonds) / Covered bonds23.717.719.5
    
Liquidity Coverage Ratio (LCR)31.03.202531.03.202431.12.2024
Liquid Assets242150200
Net liquidity outflow next 30 days253124
LCR ratio -Total982%482%820%
LCR ratio - NOK982%482%820%
LCR ratio - EURN/AN/AN/A
    
Net Stable Funding Ratio (NSFR)31.03.202531.03.202431.12.2024
Available amount of stable funding32 16331 40633 613
Required amount of stable funding29 90328 01930 639
NSFR ratio108%112%110%
 

Note 7

Transactions with related parties

Møre Boligkreditt AS purchases services from Sparebanken Møre. There are also transactions between the parties related to acquisition of loan portfolios and Sparebanken Møre providing loans and credits to the mortgage company.

Loans from Sparebanken Møre are transferred at market value. If the purchased mortgage loans have fixed interest rates, the purchase price is adjusted according to the value above/below par. Sparebanken Møre is responsible for ensuring that the loans transferred to Møre Boligkreditt AS are properly established and in accordance with the requirements specified in the agreement between the mortgage company and the parent bank. In case of a violation of these requirements, the parent bank will be liable for any losses that the mortgage company may experience as a result of the error. Sparebanken Møre and Møre Boligkreditt AS have formalised the settlement of interest for transaction days from the date of the transfer of the loan portfolio to the date of settlement of the consideration.

Mortgages with fixed interest rates constitute 7 per cent of the total mortgage volume and are hedged by interest rate swap agreements with the parent bank. The company can also hedge fixed rate, and/or borrowing in other currency than NOK, against the parent bank, using ISDA/CSA swap agreements. By end of Q1-2025, a covered bond loan volume of EUR 500 million was hedged against the parent bank.

The pricing of the services provided by Sparebanken Møre to Møre Boligkreditt AS distinguishes between fixed and variable expenses for the mortgage company. Fixed expenses are defined as expenses the mortgage company must bear regardless of the activity related to the issuance of covered bonds, the acquisition of portfolio, etc. Variable expenses are defined as expenses related to the size of the portfolio acquired from Sparebanken Møre and the work that must be exercised by the bank's employees to deliver satisfactory services given the number of customers in the portfolio.

Møre Boligkreditt AS is billed for expenses related to the lease of premises at Sparebanken Møre. It is assumed that regardless of operations, a certain area of the bank attributable to the mortgage company is utilised during the year. Regardless of the extent of the activity and the loan portfolio acquired by Møre Boligkreditt AS, charges related to accounting, financial reporting, risk management, cash management, financing, governance and general legal services will incur.

Sparebanken Møre bills the mortgage company based on actual salary expenses, including social security contribution, pension expense and other social expenses. Parts of the mortgage company's expenses related to services provided by Sparebanken Møre relates to the size of the portfolio acquired from Sparebanken Møre. Management fee is calculated and billed monthly, in which the month's average portfolio size forms the basis of billing.

The interest rate of the mortgage company's deposit and credit limit in Sparebanken Møre is based on 3 months NIBOR + a premium. 

The most important transactions are as follows:   
(NOK million)31.03.202531.03.202431.12.2024
Statement of income:   
Interest and credit commission income from Sparebanken Møre related to deposits71757
Interest and credit commission paid to Sparebanken Møre related to loan/credit facility5653167
Interest paid to Sparebanken Møre related to bonded debt1116
Management fee paid to Sparebanken Møre131250
    
Balance sheet:   
Deposits in Sparebanken Møre 1)9832 2431 911
Covered bonds held by Sparebanken Møre as assets00281
Loan/credit facility in Sparebanken Møre4 8293 3784 410
Intragroup hedging422483465
Accumulated transferred loan portfolio from Sparebanken Møre35 09831 97035 751
1) NOK 473 million of a total of NOK 983 million of deposits in Sparebanken Møre is the margin call balance on financial derivatives paid in by counterparties according to CSA as at 31.03.2025
 

Note 8

Events after the reporting date

No events of material significance for the financial statements for Q1-2025 have occurred after the reporting date. The company is not involved in any legal proceedings.