OPERATIONS
STATEMENT AND RESULTS
Proposed allocation of profit (figures in NOK millions): Profit for the year
642
Share allocated to AT1 instrument holders
23
Dividend funds (51.5 %) To cash dividends
158
To dividend funds for local communities
160
318
RESPONSIBILITY AND SUSTAINIBILITY
Dividends consist of cash dividends for equity certificate holders and dividend funds for local communities. The proportion of profits allocated to dividends is in line with the bank’s capital strength. Unless the bank’s capital strength dictates otherwise, it is expected that about 50 per cent of this year’s surplus can be distributed as dividends. Sparebanken Møre’s allocation of earnings should ensure that all equity certificate holders are guaranteed equal treatment.
Strengthening equity (48.5 %) To the dividend equalisation fund
148
To the primary capital fund
150
To other funds
Total allocated
3
Business areas 301
642
Equity certificates and dividends At year end 2021, there were 5,617 holders of Sparebanken Møre’s equity certificates. The proportion of equity certificates owned by foreign nationals amounted to 5.28 per cent at the end of the year. 9,886,954 equity certificates have been issued. Equity certificate capital accounts for 49.6 per cent of the bank’s total equity. The 20 largest equity certificate holders represented 53.6 per cent of the bank’s equity certificate capital at year end. Of these equity certificate holders, nine were residents of Møre og Romsdal, with a relative ownership interest among the 20 largest of 54.2 per cent (57.3 per cent). Note 34 includes a list of the 20 largest holders of the bank’s equity certificates. Sparebanken Møre encourages all employees to own equity certificates in Sparebanken Møre and contributes to this via reward schemes. At the end of the year, employees held 240,061 equity certificates, which makes employees the tenth largest MORG owner overall. As at 31 December 2021, the bank owned 22,111 of its own equity certificates. These were purchased on the Oslo Børs at market prices. The equity certificates are freely negotiable in the market. Sparebanken Møre’s dividend policy states that the bank’s aim is to achieve financial results which provide a good and stable return on the bank’s equity. The results should ensure that the owners of the equity receive a competitive long-term return in the form of cash dividends and capital appreciation on their equity.
42
Sparebanken Møre Annual report 2021
Retail Banking Division Sparebanken Møre is a market leader in Nordvestlandet and has a strong presence with 135 authorised financial advisers in the retail market. Availability and expertise in a financially strong bank have been important to customers in what has been another extraordinary year. The bank saw record growth in new retail customers in 2021, which is good confirmation of the bank’s business model. The growth was particularly strong in the bank’s priority market areas. Lending in the retail market increased by NOK 1.97 billion (4.3 per cent) and ended the year at NOK 47.6 billion. Deposit growth was strong throughout the year and increased by NOK 1.3 billion (5.6 per cent). The deposit balance showed NOK 24.7 billion for the retail market at the end of the year. The growth in other business areas such as insurance and credit cards were also strong in 2021. Both the non-life insurance and personal insurance portfolios have seen record growth in the past year. Insurance has become an integral part of the bank’s advice provision and the advisers’ expertise in the area has increased substantially in recent years. All advisers are also certified within non-life insurance and personal insurance. Sparebanken Møre places great importance on availability, good customer service and skills. During periods when the opportunities to meet customers in person were limited, rapid response times via customer service, the telephone, digital meetings and email conversations were a high priority. Use of the bank’s digital solutions is increasing and in 2021 customers were given the option of applying for increases in their residential mortgages online. They can also now make changes to their loans themselves. This allows the bank to spend more time and resourc-
Board of Directors’ Report Statement and results