SpareBank 1 SR-Bank has received permission to use the advanced IRB approach for the corporate market

On February 24th2015 the Financial Supervisory Authority of Norway informed SpareBank 1 SR-Bank that the bank was given permission to use the advanced IRB approach for calculating regulatory capital requirements for credit risk within the corporate market.

              
With this permission SpareBank 1 SR-Bank can use internal models for calculating capital requirements which is influenced by each client`s underlying credit risk. This means that the regulatory capital requirements will become more attuned to the actual credit risk in the bank's total loan portfolio. Furthermore this will add about 0.7 percentage points on CET 1 based on the bank's balance as of December 31th 2014. The net increase also takes into account the effect of higher risk weights on mortgages that will be applied as of first quarter of 2015.

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:

Inge Reinertsen, Chief Financial Officer, phone +47 909 95 033.
Stian Helgøy, VP IR, phone +47 906 52 173.
Frode Bø, Executive VP risk management and compliance, phone +47 977 16480.
Thor-Christian Haugland, Executive VP Communications, phone +47 480 31633.