Alternative performance measures - APMs
Alternative performance measures
Alternative performance measure or APM defined by ESMA (European Securities and Markets Authority) as «a financial measure of historical or future financial performance, financial position, or cash flows, other than financial measure defined or specified in the applicable financial reporting framework».
Alternative performance measures are either adjusted key figures or key figures not defined under IFRS. APMs are not intended to substitute accounting figures prepared in accordance with IFRS and are not to be assigned greater importance than these accounting figures, however, they have been included in the financial reporting in order to provide a more complete description of the company’s performance. Furthermore, APMs constitute important targets as to how the management governs the company.
The APMs of Møre Boligkreditt AS are used in the report of the Board of Directors, as well as in presentations of the financial statements. All APMs are specified with corresponding comparative figures for previous periods.
Møre Boligkreditt AS has the following APMs, which are not reflected in the financial statements with disclosures:
Definition: The sum of all assets.
Justification: Total assets is an industry-specific designation for the sum of all assets.
Definition: The average sum of total assets for the year, calculated as a daily average.
Justification: This key figure is used in the calculation of percentage ratios for the performance items.
LTV (Loan to value)
Definition: Average loan amount of loans to customers divided by average market value of collateral.
Justification: This key figure provides information about the asset ratio in the lending portfolio and is relevant for evaluating the risk of loss.
Definition: Over-collateralisation, calculated as the value of the cover pool relative to the value of outstanding covered bond loan debt.
Justification: This key figure provides information about the ratio between outstanding bond loans and the underlying collateralised assets.