SpareBank 1 Nord-Norge has received permission to use the advanced IRB approach for the corporate market

On the 24th of February 2015, The Norwegian FSA, informed SpareBank 1 Nord-Norge that it has given the bank permission to use the advanced IRB approach for calculating regulatory capital requirements for credit risk for the corporate market.

With this permission SpareBank 1 Nord-Norge can use internal models to calculate capital requirements. This means that the regulatory capital requirements will be more attuned to the Bank's actual credit risk for its total loan portfolio. The permission will add approximately 0.7 percentage points to the SpareBank 1 Nord-Norge Group's CET 1 ratio based on the Group balance sheet as of 31 December 2014.

The effect of increased risk weights on mortgages taking effect from first quarter 2015 will have approximately the same negative effect on the CET 1 ratio, causing the expected total effect on the Group CET 1 ratio to be more or less neutral.

A permission to use the advanced IRB approach confirms that both the Bank's internal processes and skills for risk management are of good and high quality.

For further information, please contact:

Rolf-Eigil Bygdnes, Chief Financial Officer, phone +47 905 19 774
Geir Andreassen, Chief Risk Officer, phone +47 908 21 394
Geir Håvard Hansen, Head of Communications, phone +47 950 52 001