Komplett Bank Annual Report 2020

CALCULATION BASIS NOK million 31.12.2020 31.12.2019 Loans and deposits with credit institutions 240.8 122.9 Loans to customers and IFRS 9 phase-in effects 6,721.4 6,745.2 Certificates and bonds 92.8 9.1 Other assets 18.7 36.2 Calculation basis credit risk 7,073.7 6,913.4 Calculation basis operational risk 1,653.7 1,822.6 Total calculation basis including phase-in impact of IFRS 9 8,727.3 8,735.9 Total calculation basis excluding phase-in impact of IFRS 9 8,578.9 8,560.2 Capital ratios including phase-in impact of IFRS 9 Common equity tier 1 (%) 22.7% 21.2% Core capital (%) 25.5% 21.7% Total capital (%) 26.3% 22.5% Capital ratios excluding phase-in impact of IFRS 9 Common equity tier 1 (%) 21.3% 19.4% Core capital (%) 24.0% 19.9% Total capital (%) 24.9% 20.7% The Bank had a liquidity capital ratio (LCR) of 774 per cent as at 31 December 2020 (716 per cent as at 31 December 2019) and a net stable funding ratio (NSFR) of 197 per cent as at 31 December 2020 (177 per cent as at 31 December 2019). The Bank’s leverage ratio was 16.6 per cent as at 31 December 2019 (17.3 per cent as at 31 December 2019). The Bank’s internal objective is to have an LCR and NSFR of respectively minimum 125 per cent and 115 per cent. The Bank’s regulatory Pillar 1 minimum for capital adequacy is 17.0 per cent for common equity tier 1, 18.5 per cent for core capital and 20.5 per cent for total capital. Included in these capital requirements is a Pillar 2 requirement of 6.5 per cent and a counter cyclic requirement of 0.49 per cent. The Bank’s regulatory minimum for leverage ratio equals 5.0 per cent. Komplett Bank has made the decision to change the approach used for measuring operational risk when calculating capital adequacy. Starting from December 2020 Komplett Bank will utilise the Standardised Approach, which will replace the Basic Indicator Approach used previously. Komplett Bank has a capital adequacy objective of 21.5 per cent, including a common equity tier 1 adequacy of 18.0 per cent 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 per cent. . 90 Notes to the financial statements