Komplett Bank Annual Report 2020

Note 17 Related parties and other information Komplett Bank is financially and operationally independent of Komplett AS and its affiliated companies (the “Komplett Group”). Komplett AS and the Bank have entered into a cooperation agreement in relation to IP rights, marketing cooperation and other services. The agreement aims to give the Bank the right to use “Komplett Bank” as its name, and the profile and graphic design of www.komplett.no. The agreement gives the Bank the right to use all the intellectual property rights of Komplett AS that are necessary to achieving this purpose. As an extension to the cooperation agreement, Komplett AS and the Bank have entered into an agreement on product cooperation in relation to the credit card of the Bank and the credit card’s ancillary customer loyalty bonus programme. The agreement aims to promote sales and the use of the credit card, as well as contributing to promote sales for Komplett AS. Pursuant to this agreement, the parties shall arrange for customer loyalty bonus in relation to the use of the Bank’s credit card on, among other, purchases from Komplett AS. The product cooperation agreement for credit cards was prolonged Q2 2018 for another 5 years. Komplett Bank recognised a cost of NOK 12.1 million (NOK 11.9 million in 2019) relating to this agreement in 2020. Balances (receivables (+)/liabilities (-)) as at 31 December 2020 with Komplett AS totalled NOK -7.6 million (NOK -7.5 million in 2019). Furthermore, the Bank is engaged in a cooperation with the Komplett Group, in particular in connection with its credit card product as well as its payment solutions and distribution of Point-of-sales finance products, which enables the Bank to distribute its products towards customers on Komplett’s web shop platforms. With reference to the stock exchange notice 23 November 2020 Kistefos AS was granted a permission by the Financial Supervisory Authority of Norway to acquire Canica Invest AS`s shares in Komplett Bank ASA. Kistefos AS is the Bank`s largest shareholder with an ownership of 24 per cent. There have been no transactions between Komplett Bank ASA and Kistefos AS. Note 18 Risk management General The Board has established various policies for management and control of key risks. The policies, which are updated regularly, describe both quantitative risk limits and relevant qualitative guidelines. The Board receives compliance and risk control reports relating to the established policies, from the administration regularly and as required. The Bank is exposed to different types of business risk. Operational risk and credit risk are two key risks discussed in greater detail below. Operational risk The Bank’s strategy for operational risk is defined in the Bank’s policy for operational risk. According to the Bank’s general principles, there shall be procedures for identifying and reporting operational risk. Operational risk shall be measured and managed based on systematic assessments of operational risk factors and operational risk assessments. This shall be included as an integral part of the decision-making process in the Bank. The measurement methods applied shall fulfil the measurement methods for main categories of risk. Credit risk The Bank’s general strategy for credit risk is defined in the Bank’s credit policy. The general principles stipulate, among other things, the following Ǵ The Bank’s loans shall only be to private individuals. Ǵ The Bank’s loans shall be well diversified. Ǵ All customers shall be subject to a credit assessment. Ǵ In addition to credit score rules, the customer must also be accepted in accordance with the Bank’s policy rules and the Bank’s requirements for ability and willingness to pay 106 Notes to the financial statements

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