SpareBank 1 Nord-Norge: Completed sales of ownership in North West 1 Alliance Bank

SpareBank 1 Nord-Norge has completed sales of its ownership in North-West 1 Alliance Bank (NW1AB) to a Russian buyer group. Furthermore, SpareBank 1 Nord-Norge's total financing of NW1AB has been taken over by the same buyer group.

As a result of the crisis in the Russian economy, and the subsequent challenges this caused for the Russian banking sector, SpareBank 1 Nord-Norge made a loss provision on its exposure in Russia of 300 MNOK in the 2014 accounts. Total exposure previous to the loss provisioning was 615 MNOK. Following the above, SpareBank 1 Nord-Norge’s goal has been to wind up its commitments in Russia.

SpareBank 1 Nord-Norge has now received final payment for the ownership in NW1AB, and for the financing of NW1AB. The remaining exposure consists of funding of Tavrichesky Bank. Collection of this amount is in process. Net Group exposure after remaining provisions for losses amounts to approximately NOK 50 million. So far, no changes of total Group provisioning related to the Group's exposure in Russia has been found necessary.

Under new management, and as a part of a new strategy, SpareBank 1 Nord-Norge decided as early as 2013 to downscale activities in Russia. Following the sale of NW1AB, SpareBank 1 Nord-Norge have no own banking business in Russia.

Contact persons:
CFO Rolf Eigil Bygdnes, mobile + 47 905 19 774
Senior Group General Manager Petter Høiseth, mobile +47 415 05 035