Komplett Bank Annual Report 2020

RECONCILIATION OF IMPAIRMENTS OF LOANS TO CUSTOMERS NOK million stage 1 stage 2 stage 3 Total Impairment 01.01.2019 102.1 100.8 268.8 471.6 Q1 2019: Transfer from stage 1 to stage 2 -5.2 5.2 - - Transfer from stage 1 to stage 3 -0.6 - 0.6 - Transfer from stage 2 to stage 3 - -23.8 23.8 - Transfer from stage 3 to stage 2 - 0.2 -0.2 - Transfer from stage 2 to stage 1 18.3 -18.3 - - Transfer from stage 3 to stage 1 0.0 - -0.0 - New financial assets originated or change in provisions 16.1 52.0 41.0 109.1 Assets derecognized or change in provisions -18.8 -14.0 -49.7 -82.4 Other changes 1.1 0.8 0.0 1.9 Impairment 31.03.2019 113.0 102.8 284.4 500.2 Q2 2019: Transfer from stage 1 to stage 2 -5.3 5.3 - - Transfer from stage 1 to stage 3 -0.7 - 0.7 - Transfer from stage 2 to stage 3 - -23.4 23.4 - Transfer from stage 3 to stage 2 - 0.2 -0.2 - Transfer from stage 2 to stage 1 16.1 -16.1 - - Transfer from stage 3 to stage 1 0.6 - -0.6 - New financial assets originated or change in provisions 13.3 50.1 43.9 107.3 Assets derecognized or change in provisions -17.1 -15.9 -32.6 -65.6 Other changes -10.9 18.2 -1.2 6.1 Impairment 30.06.2019 109.1 121.3 317.6 548.0 Q3 2019: Transfer from stage 1 to stage 2 -7.1 7.1 - - Transfer from stage 1 to stage 3 -0.9 - 0.9 - Transfer from stage 2 to stage 3 - -29.3 29.3 - Transfer from stage 3 to stage 2 - 0.6 -0.6 - Transfer from stage 2 to stage 1 23.1 -23.1 - - Transfer from stage 3 to stage 1 1.2 - -1.2 - New financial assets originated or change in provisions 17.9 69.0 42.0 128.8 Assets derecognized or change in provisions -28.1 -14.9 -34.6 -77.6 Other changes 4.7 1.6 2.9 9.1 Impairment 30.09.2019 119.8 132.4 356.2 608.3 Q4 2019: Transfer from stage 1 to stage 2 -8.6 8.6 - - Transfer from stage 1 to stage 3 -1.3 - 1.3 - Transfer from stage 2 to stage 3 - -40.9 40.9 - Transfer from stage 3 to stage 2 - 0.7 -0.7 - Transfer from stage 2 to stage 1 16.3 -16.3 - - Transfer from stage 3 to stage 1 0.6 - -0.6 - New financial assets originated or change in provisions 18.7 73.9 78.1 170.7 Assets derecognized or change in provisions -22.1 -14.4 -36.9 -73.4 Other changes 20.3 28.8 55.5 104.5 Impairment 31.12.2019 143.7 172.8 493.6 810.1 Estimate changes for the first quarter of 2019 relates in all materiality to changes in the Bank’s estimate of probability of default. Estimate changes for the second quarter of 2019 relates amongst other to changes in the Bank’s estimate of loss given default, which resulted in higher impairment equal to NOK 29 million. In the same quarter, the Bank also changed its estimate on exposure at default resulting in NOK 25 million in lower impairments. Other estimate changes in this quarter mainly relates to changes in the estimate of probability of default. The effects of estimate changes in the third quarter of 2019 mainly refers to estimate change on the probability of default. In the fourth quarter of 2019 the Bank changed its method on how to estimate loss given default. The Bank went from using a method based on expected sale prices from third parties to a method using expected cash flows based on incoming payments from defaulted customers. The change in loss given default increased the impairments with NOK 96 million. The Bank also updated its estimates of discount factor, resulting in an increase of NOK 7 million. Other estimate changes in the quarter relates to updating the probability of default and macro adjustments, resulting in a respectively increase in impairments of NOK 2 million and a decrease in impairments of NOK 1 million . Komplett Bank Annual Report 2020 71