Alternative Performance Measures - APMs

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Sparebanken Møre has prepared Alternative Performance Measures (APMs) in accordance with ESMA's guidelines for APMs. We use APMs in our reports to provide additional information to the accounts and also as important financial performance figures for the management. The APM's are not intended to substitute accounting figures prepared in accordance with IFRS nor should they be given more emphasize. The key figures are not defined under IFRS or any other legislation and are not necessarily directly comparable with similar key figures in other banks or companies. All figures are stated in NOK million unless stated otherwise.

Total assets	Definition	Total assets.
	Justification	Total assets is an industry-specific designation for the sum of all assets.
	Calculation	The total of all assets.
Average 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.
	Calculation	This figures comes from daily calculations in the accounting system and cannot be directly reconciled with the balance sheet.
Return on equity	Definition	Profit/loss for the financial year as a percentage of the average equity for the year(the proposed dividend in line with the Group's dividend policy is deducted). Additional Tier 1 capital classified as equity is excluded from this calculation, both in profit/loss and in equity.
	Justification	Return on equity is one of Sparebanken Møre’s most important financial performance figures. It provides relevant information about the profitability of the Group by measuring the profitability of the operation in relation to the invested capital. The profit/loss is adjusted for interest on Additional Tier 1 capital, which pursuant to IFRS, is classified as equity, but in this context more naturally is classified as liability since the Additional Tier 1 capital bears interest and does not entitle to dividends.
	Calculation	Profit after tax-interests on AT1 capital ((OB Equity-AT1 capital-allocated dividends and gifts)+(CB Equity-AT1 capital+interests on AT1 capital-proposed dividends and gifts))/2
	Calculation
	Figures	31.12.2022: (777-31)/(((7.571-599-158-160)+(8,102-650+31-198-200))/2)=10.9 %

		31.12.2021: (642-23)/(((7,208-599-44-45-89-90)+(7,570-599-158-160))/2)=9.5 %
Cost income ratio	Definition	Total operating costs in percentage of total income.
	Justification	This key figure provides information about the relation between income and costs and is a useful performance indicator for evaluating the cost-efficiency of the Group.
	Calculation	Total operating costs Total income
	Calculation
	Figures	31.12.2022: 747/1,756=42.5 %

		31.12.2021: 645/1,527=42.2 %
Losses as a percentage of loans and guarantees	Definition	«Impairment on loans, guarantees etc.» in percentage of «Gross loans to and receivables from customers» and guarantees at the beginning of the accounting period (annualized).
	Justification	This key figure specifies recognised impairments in relation to gross lending and guarantees and gives relevant information about the bank’s losses compared to lending and guarantee volumes. This key figure is considered to be more suitable as a comparison figure to other banks than the impairments itself since this figure is viewed in context of the lending and guarantee volume.
	Calculation	Losses on loans and guarantees Gross loans to and receivables from customers and guarantees per 1.1.
	Calculation
	Figures	31.12.2022: -4/71,986=-0.01 %

		31.12.2021: 49/68,655=0.07 %
Deposit-to-loan ratio	Definition	«Deposit from customers» as a percentage of «Gross loans to and receivables from customers».
	Justification	The deposit-to-loan ratio provides important information about how the Group finances its operations. Receivables from customers represent an important share of the financing of the Group’s lending, and this key figure provides important information about the Group’s dependence on market funding.
	Calculation	Deposits from customers Gross loans to and receivables from customers
	Calculation
	Figures	31.12.2022: 43,881/76,392=57.4 %

		31.12.2021: 41,853/70,254=59.6 %
Lending growth as a percentage	Definition	The period’s change in «Lending to and receivables from customers» as a percentage of «Lending to and receivables from customers» over the last 12 months.
	Justification	This key figure provides information about the activity and growth in the bank’s lending.
	Calculation	CB Net loans to and recievables from customers - OB Net loans to and recievables from customers OB Net loans to and recievables from customers
	Calculation
	Figures	31.12.2022: (76,078-69,925)/69,925=8.8 %

		31.12.2021: (69,925-66,850)/66,850=4.6 %
Deposit growth as a percentage	Definition	The period’s change in «Receivables from customers» as a percentage of «Receivables from customers» over the last 12 months.
	Justification	This key figure provides information about the activity and growth in deposits, which is an important part of the financing of the Group’s lending.
	Calculation	CB Deposit from customers - OB Deposits from customers OB Deposits from customers
	Calculation
	Figures	31.12.2022: (43,881-41,853)/41,853=4.8 %

		31.12.2021: (41,853-39,023)/39,023=7.3 %
Book value per equity certificate	Defintion	The total equity that belongs to the owners of the bank’s equity certificates (equity certificate capital, share premium, dividend equalisation fund and equity certificate holders’ share of other equity, including proposed dividends) divided by the number of issued equity certificates.
	Justification	This key figure provides information about the value of the book equity per equity certificate. This gives the reader the opportunity to assess the market price of the equity certificate. The key figure is calculated as equity certificate holders’ share of the equity at the end of the period, divided by the number of equity certificates.
	Calculation	(Total Equity+share premium+dividend equal.fund+EC holders’ share of other equity, incl.proposed dividends) Number of ECs issued
	Calculation
	Figures	31.12.2022: (986+358+2,066+290)/49.434770=74.8

		31.12.2021: (987+357+1,831+287)/9.886954=350
Price/book value (P/B)	Definition	Market price on the bank’s equity certificates (MORG) divided by the book value per equity certificate for the Group.
	Justification	This key figure provides information about the book value per equity certificate compared to the market price at a certain time. This gives the reader the opportunity to assess the market price of the equity certificate.
	Calculation	Market price per equity certificate Book value per equity certificate
	Calculation
	Figures	31.12.2022: 84.41/74.8=1.13

		31.12.2021: 444/350=1.27