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Note 18 – Acquired loan portfolios

 GroupParent Company
SEK m31 Dec 202131 Dec 202031 Dec 202131 Dec 2020
Gross carrying amount21,81321,188 6,2636,670 
Loss allowance-476-113 9785 
Net carrying amount21,33721,075 6,3606,755 

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

Acquired credit-impaired loan portfolios, 31 Dec 2021

 GroupParent Company
SEK mGross carrying amountLoss allowanceNet carrying amountGross carrying amountLoss allowanceNet carrying amount
Opening balance 1 Jan 202120,430-10820,3226,389886,477
Acquisitions3,558-3,558933-933
Interest income2,956-2,956931-931
Gross collections-6,557--6,557-2,392--2,392
Impairment losses and gains--337-337-1111
of which, realised collections against active forecast-298298-242242
of which, portfolio revaluations
--635-635--231-231
Disposal-2--2-2--2
Translation differences726-257011301131
Closing balance 31 Dec 202121,111-47020,6415,9891006,089
       

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 
of which, realised collections against active forecast - 350350346346
of which, portfolio revaluations   - -805-805-386-386
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 
       

Undiscounted acquired loss allowances

As at 31 December 2021, the undiscounted acquired loss allowances at initial recognition totalled SEK 25,841m (12,231) for credit-impaired loan portfolios acquired by the Group during January to December, of which SEK 3,198m (5,455) is attributable to Parent Company acquisitions. 

Acquired performing loan portfolios, 31 Dec 2021

 Group
SEK mGross carrying amountStage 1 - 12M ECLStage 2 - LECLStage 3 - LECLLoss allowanceNet carrying amount
Opening balance 1 Jan 2021758-10-4-5753
Interest income51----51
Amortisations and interest payments-134-----134
Changes in risk parameters-0-10-1-1
Derecognitions-1-----1
Translation differences28000028
Closing balance 31 Dec 2021702-1-1-4-6696

Acquired performing loan portfolios

 Parent Company
SEK mGross carrying amountStage 1 - 12M ECLStage 2 - LECLStage 3 - LECLLoss allowanceNet carrying amount
Opening balance 1 Jan 202128100-3-3278
Interest income17----17
Amortisations and interest payments-49-----49
Changes in risk parameters-00000
Derecognitions-1-----1
Translation differences26000026
Closing balance 31 Dec 202127400-3-3271

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 2020912-10-4-5907
Interest income6262
Amortisations and interest payments-143-143
Changes in risk parameters00000
Derecognitions-1-1
Translation differences-720000-72
Closing balance 31 Dec 2020758-10-4-5753
       

Acquired performing loan portfolios

 Parent Company
SEK mGross carrying amountStage 1 - 12M ECLStage 2 - LECLStage 3 - LECLLoss allowanceNet carrying amount
Opening balance 1 Jan 202034500-3-3342
Interest income2020
Amortisations and interest payments-53-53
Changes in risk parameters0000
Derecognitions-1-1
Translation differences-300000-30
Closing balance 31 Dec 202028100-3-3278
       

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 as the time of initial valuation and potential subsequent revaluations, ensuring the most up-to-date portfolio composition is reflected. 

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 and based on the principals set forth by the Effective Interest Rate method. 

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, ecpecially if operational efforts have not had, or are not expected to have, the intended effect or in times of economics downturn e.g Covid-19. 

Forecast revisions are managed by the internal Revaluation Committee, which reports to the Board’s Investment Committee. Decisions are duly taken by the Revaluation Committee pursuant to instructions issued by the Board 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 2021 -
- Årsredovisning 2021 -