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Note 18 – Acquired loan portfolios

 GroupParent Company
SEK m31 Dec 202031 Dec 201931 Dec 202031 Dec 2019
Gross carrying amount21,188 23,9216,670 7,267
Loss allowance-113 38285 127
Net carrying amount21,075 24,3036,755 7,394

For additional information see Accounting principles section 15 ”Income and expenses” and Note 33 ”Risk management”.

Acquired credit-impaired loan portfolios, 31 Dec 2020

 GroupParent Company
SEK mGross carrying amountLoss allowanceNet carrying amountGross carrying amountLoss allowanceNet carrying amount
Opening balance 1 Jan 202023,009 387 23,396 6,922 130 7,052 
Acquisitions1,761 1,761 916 916 
Interest income3,240 3,240 1,020 1,020 
Gross collections-6,324 -6,324 -2,221 -2,221 
Impairment losses and gains-455 -455 -40 -40 
Disposal40 -40 
Translation differences-1,296 -1,296 -248 -2 -250 
Closing balance 31 Dec 202020,430 -108 20,322 6,389 88 -6,477 
       

Acquired credit-impaired loan portfolios, 31 Dec 2019

 GroupParent Company
SEK mGross carrying amountLoss allowanceNet carrying amountGross carrying amountLoss allowanceNet carrying amount
Opening balance 1 Jan 201919,33426219,5965,133635,196
Acquisitions5,952-5,9522,647-2,647
Interest income3,271-3,271936-936
Gross collections-6,179--6,179-1,877--1,877
Impairment losses and gains-122122-6767
Disposal0-0---
Translation differences631363483083
Closing balance 31 Dec 201923,00938723,3966,9221307,052

Undiscounted acquired loss allowances

As at 31 December 2020, the undiscounted acquired loss allowances at initial recognition totalled SEK 12,231m (27,896) for credit-impaired loan portfolios acquired by the Group during January to December, of which SEK 5,455m (7,498) is attributable to Parent Company acquisitions.

Acquired performing loan portfolios, 31 Dec 2020

 Group
SEK mGross carrying amountStage 1 - 12M ECLStage 2 - LECLStage 3 - LECLLoss allowanceNet carrying amount
Opening balance 1 Jan 2020912 -1 -4 -5 907 
Interest income62 62 
Amortisations and interest payments-143 -143 
Changes in risk parameters
Derecognitions-1-1 
Translation differences-72 -72 
Closing balance 31 Dec 2020758 -1 -4 -5 753 
       

Acquired performing loan portfolios

 Parent Company
SEK mGross carrying amountStage 1 - 12M ECLStage 2 - LECLStage 3 - LECLLoss allowanceNet carrying amount
Opening balance 1 Jan 2020345 -3 -3 342 
Interest income20 20 
Amortisations and interest payments-53 -53 
Changes in risk parameters
Derecognitions-1 -1 
Translation differences-30 -10 
Closing balance 31 Dec 2020281 -3 -3 278 
       

Acquired performing loan portfolios, 31 Dec 2019

 Group
SEK mGross carrying amountStage 1 - 12M ECLStage 2 - LECLStage 3 - LECLLoss allowanceNet carrying amount
Opening balance 1 Jan 20191,012-20-1-31,009
Interest income88----88
Amortisations and interest payments-220-----220
Changes in risk parameters-10-3-2-2
Derecognitions-9-----9
Translation differences41000041
Closing balance 31 Dec 2019912-10-4-5907
       

Acquired performing loan portfolios

 Parent Company
SEK mGross carrying amountStage 1 - 12M ECLStage 2 - LECLStage 3 - LECLLoss allowanceNet carrying amount
Opening balance 1 Jan 2019399-10-1-2397
Interest income34----34
Amortisations and interest payments-107-----107
Changes in risk parameters-10-2-1-1
Derecognitions-8-----8
Translation differences27000027
Closing balance 31 Dec 201934500-3-3342

Portfolio overview

The portfolios comprise a large number of loans. The debtors have varying characteristics, such as payers, partial payers and non-payers. There is some degree of mobility between debtor categories, with non-payers becoming payers and vice versa. The Group divides its portfolios into different categories, such as countries, age, asset class and acquisition type.

Collection forecast

The Group evaluates portfolios by estimating future cash flows for the next 15 years. Cash flow forecasts are regularly monitored during the year and updated based on factors such as achieved collection results and instalment plan agreements with debtors. A new carrying amount is calculated for the loan portfolios based on the updated forecasts.

Revaluations

The Group evaluates actual collections in relation to the forecast that served as the basis for portfolio valuation during the same period. Deviations may in some cases result in an adjustment to future forecasts, specifically if operational efforts have not had, or are not expected to have, the intended effect.

Forecast revisions are managed by the internal Revaluation Committee, which reports to the Board’s Investment Committee. Decisions are duly taken by either the Revaluation Committee or Investment Committee pursuant to instructions issued by the Investment Committee within the scope of the Revaluation Policy issued by the Board of Directors. Forecast adjustments and their impact on earnings are disclosed internally and externally. The portfolio valuation is independently audited by the Risk Control function.

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- Annual Report 2020 -
- Årsredovisning 2020 -