Komplett Bank annual report 2019

The calculation basis are allocated in the following: CREDIT RISK AND OPERATIONAL RISK NOK million 31.12.2019 31.12.2018 Credit risk Loans and deposits with credit institutions 122.9 246.5 Loans to customers/IFRS 9 phase-in effects 6,745.2 6,302.4 Certificates and bonds 9.1 30.2 Other assets 36.2 12.1 Operational risk 1,822.6 1,331.8 Total calculation basis including phase-in impact of IFRS 9 8,735.9 7,922.8 Total calculation basis excluding phase-in impact of IFRS 9 8,560.6 7,595.7 Common equity tier 1 including phase-in impact of IFRS 9 21.2% 20.0% Core capital including phase-in impact of IFRS 9 21.7% 20.6% Total capital including phase-in impact of IFRS 9 22.5% 21.4% Common equity tier 1 excluding phase-in impact of IFRS 9 19.4% 18.9% Core capital excluding phase-in impact of IFRS 9 19.9% 19.5% Total capital excluding phase-in impact of IFRS 9 20.7% 20.4% The Bank had a liquidity capital ratio (LCR) of 716% as at 31 December 2019 (219% as at 31 December 2018) and a net stable fund- ing ratio (NSFR) of 177% as at 31 December 2019 (170% as at 31 December 2018). The Bank’s leverage ratio was 17.3% as at 31 December 2019 (11.7% as at 31 December 2018). The Bank’s internal objective is to have an LCR and NSFR of respectively minimum 125% and 115%. The Bank’s regulatory Pillar 1 minimum for capital adequacy is 18.3% for common equity tier 1, 19.8% for core capital and 21.8% for total capital. Included in these capital requirements is a Pillar 2 requirement of 6.5% and a counter cyclic requirement of 1.8%. The Bank’s regulatory minimum for leverage ratio equals 5.0%. Komplett Bank has a capital adequacy objective of 22.8%, including a common equity tier 1 adequacy of 19.3% to provide leverage for the Bank’s growth strategy. In 2019, the Bank received a report by the FSA in conjunction with their review of the Bank’s risks and capital needs (SREP), determining the Pillar 2 requirement to 6.5%. Komplett Bank Annual Report 2019 85