Komplett Bank annual report 2019

Credit quality 31.12.2019 Credit quality 31.12.2018 NOK million Low Medium High Low Medium High Assets Loans and deposits with credit institutions - - 614.7 - - 1,232.4 Other receivables - - 18.8 - - 10.4 Loans to customers 791.3 7,704.5 - 575.8 7,268.6 - Certificates and bonds - - 1,329.8 - - 436.4 Total financial assets 791.3 7,704.5 1,963.3 575.8 7,268.6 1,679.1 Liabilities Deposits from and debt to customers - - 8,519.5 - - 7,365.6 Other debt - - 149.5 - - 100.0 Subordinated loans - - 64.9 - - 64.7 Senior unsecured bond - - - - - 399.8 Total financial liabilities - - 8,733.9 - - 7,930.1 Credit quality is defined as the financial instrument’s ability to deliver agreed cash flows. A deterioration in the quality of credit means that one or more events are taking place that have an undesired effect on the expected future cash flows for the financial instrument. The credit quality is grouped in the following intervals of credit risk: · Low credit quality: 100% risk of default · Medium credit quality: 4.5-100% risk of default · High credit quality: 0-4.5% risk of default Note 20 Financial instruments assessed at fair value Financial instruments at fair value are placed in the different levels below based on the quality of market data for the individual type of instrument. Level 1: Valuation based on listed prices in an active market Financial instruments valued using listed prices in active markets for identical assets or liabilities are placed in level 1. This category includes government bonds and investments in bonds with pre-emption rights traded in active markets. Level 2 Valuation based on observable market data Financial instruments valued using information where prices are directly or indirectly observable for the assets or liabilities are placed in level 2. Level 3 Valuation based on non-observable market data If a valuation cannot be established in levels 1 or 2, valuation methods are used that are based on non-observable market data. 31.12.2019 31.12.2018 NOK million Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets Certificates and bonds 489.0 840.8 - 436.4 - - Total financial instruments measured at fair value 489.0 840.8 - 436.4 - - Komplett Bank Annual Report 2019 101