1. Nordea Hypotek reported operating profit of SEK 1,005m for January-June 2010, down 23% from the same period in 2009, mainly due to increased funding costs and lower net gains on items at fair value.
2. Lending volumes increased 11% to SEK 395.5bn, with household lending up 13% and lending to legal entities up 6%.
3. Capital adequacy ratios were 7.4% for tier 1 capital and 9.5% for total capital, exceeding regulatory requirements.
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This Tutorial contains 2 Different Course Project
ACCT 551 Course Project (Notes to Financial Statement)
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Question 1. 1. (TCO C) Which characteristic is not possessed by intangible assets? (Points : 5)
Physical existence
Short-lived
Result in future benefits
Expensed over current and/or future years
Question 2. 2. (TCO C) One factor that is not considered in determining the useful life of an intangible asset is (Points : 5)
salvage value.
provisions for renewal or extension.
legal life.
For more course tutorials visit
www.newtonhelp.com
This Tutorial contains 2 Different Course Project
ACCT 551 Course Project (Notes to Financial Statement)
For more course tutorials visit
Uophelp is now newtonhelp.com
www.newtonhelp.com
Question 1. 1. (TCO C) Which characteristic is not possessed by intangible assets? (Points : 5)
Physical existence
Short-lived
Result in future benefits
Expensed over current and/or future years
Question 2. 2. (TCO C) One factor that is not considered in determining the useful life of an intangible asset is (Points : 5)
salvage value.
provisions for renewal or extension.
legal life.
The Evolution of Non-Banking Financial Companies (NBFCs) in India: Challenges...beulahfernandes8
Role in Financial System
NBFCs are critical in bridging the financial inclusion gap.
They provide specialized financial services that cater to segments often neglected by traditional banks.
Economic Impact
NBFCs contribute significantly to India's GDP.
They support sectors like micro, small, and medium enterprises (MSMEs), housing finance, and personal loans.
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
How to get verified on Coinbase Account?_.docxBuy bitget
t's important to note that buying verified Coinbase accounts is not recommended and may violate Coinbase's terms of service. Instead of searching to "buy verified Coinbase accounts," follow the proper steps to verify your own account to ensure compliance and security.
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
The new type of smart, sustainable entrepreneurship and the next day | Europe...
Interim report 1 2010, Nordea Hypotek AB
1. 1 (13)
Interim report January-June 2010 for Nordea Hypotek AB
(publ)
Result
Operating profit amounted to SEK 1,005m (1,305), a
decline of 23 per cent on the same period of the
previous year. Covered bonds are debt instruments, regulated in a
separate Swedish Act, for which the investor is given a
Results compared to the previous period were mainly priority of claim in respect of a pool of high quality
affected by the following factors: assets in the event of the issuer’s bankruptcy. Covered
• Net interest income decreased by SEK 209m due bonds may only be issued subject to special permission
to increased funding costs for long-term by the Financial Supervisory Authority and on the
borrowing and reclassification of interest basis of assets of high quality. The covered bond
compensation. issuance and assigned ratings will allow Nordea
• Net gains/losses on items at fair value fell by SEK Hypotek to expand its funding into a broader base of
116m, the item pertains to hedge accounting and funding sources, not least in the international financial
interest compensation on fixed interest rate loans. market.
• Net loan losses went from negative to positive by
SEK 31m compared to the previous period. In addition to the aforementioned long-term borrowing
the company has successively during the period
Income secured its funding through short-term borrowing with
Net interest income amounted to SEK 1,242m (1,451). the parent company.
Net commission income for the period has been
charged with an estimated stability fee of SEK 28m International rating
and amounted to SEK -6m (1). The company has since June 2006 been rated Aaa/
AAA by Moody’s Investor Service and respectively
Expenses Standard & Poor’s for the covered bonds that account
Operating expenses were unchanged. They totalled for the company’s main long-term borrowing.
SEK 277m (278). Standard & Poor’s in December 2009 changed its
criteria for the rating of covered bonds.
Lending Nordea Hypotek’s covered bonds have been identified
At the end of the report period lending to the public as “CreditWatch negative”.
amounted to SEK 395,469m (355,983), exceeding last
year’s volume by 11 per cent (7). Capital adequacy
Nordea received approval to use the foundation IRB
Lending to household customers increased by 13 per approach (internal risk classification) from the second
cent or SEK 32,342m. Lending volumes in respect of quarter of 2007 for assessment of credit risk in the
legal entities increased by SEK 7,143m or 6 per cent. exposure classes corporate and institutions. In
December 2008 IRB approval was acquired for the
Impaired loans and loan losses exposure class retail. Sovereign and other exposure
Impaired loans, net, amounted to SEK 20m (6). classes are until further notice reported according to
Net loan losses from recoveries and new loan losses the standardised approach.
and also changes in collective provisions amounted to
SEK 1m (-30). The new capital adequacy regulations under the Basel
II agreement will be implemented progressively,
Funding whereby potentially reduced capital requirements
The company’s borrowing is conducted in both during a transition period will be affected by the so-
Swedish and international markets. Long-term called floor rules determined in Basel I. In 2009, the
financing occurs mainly by way of issuance of bonds lowest accepted amount for risk-weighted assets
with maturities from two to ten years. During the (RWA) was 80 per cent of the amount calculated in
period, bonds equalling an amount of SEK 53,171m accordance with the Basel I regulations, and will be
(55,287) were issued in Swedish currency. Issues in unchanged for 2010 and 2011.
other currencies amounted to SEK 17,132m (8,735).
The remaining bond volume as at 30 June 2010 At the end of June, Nordea Hypotek’s RWA
amounted to SEK 297,480m (266,727), of which SEK amounted to SEK 177,510m after transition rules. Tier
85,261m (75,740) was in currencies other than SEK. 1 capital ratio was 7.4 per cent and the total capital
ratio was 9.5 per cent. Risk-weighted assets excluding
transition rules amounted to SEK 53,111m with a tier
Nordea Hypotek AB (publ) 556091-5448 . January-June 2010
2. 2 (13)
1 capital ratio of 24.9 per cent and a total capital ratio
of 31.8 per cent.
Change in the Board of Directors
At the Annual General Meeting 18 March 2010,
Nils Lindberg was elected as new board member.
Material events after the balance sheet date
No major events have occurred after 30 June 2010.
The Board of Directors assurance
The half-year interim report provides a fair overview
of the company’s activities, the financial position and
result, and describes material risks and uncertainties
assumed by the company.
Stockholm, 27 August 2010
Torsten Allqvie Kurt Gustafsson
Chairman
Ulla Hermann Björn Hökby
Nils Lindberg
Karin Markstedt
President
Nordea Hypotek AB (publ) 556091-5448 . January-June 2010
Nordea Hypotek AB (publ), corporate registration number 556091-5448, is part of the Nordea Group, and is a wholly owned subsidiary of
Nordea Bank AB (publ). This Interim report has not been subject to review by the Auditors.
3. 3 (13)
Income statement
Jan-Jun Jan-Jun Jan-Dec
SEK (000s) Note 2010 2009 2009
Operating income
Interest income 4,472,119 5,888,468 10,747,157
Interest expenses -3,230,490 -4,437,402 -7,704,646
Net interest income 1,241,629 1,451,066 3,042,511
Fee and commission income 30,411 31,592 63,869
Fee and commission expense -36,322 -30,537 -66,824
Net fee and commission income -5,911 1,055 -2,955
Net gains/losses on items at fair value 3 45,298 161,236 282,024
Total operating income 1,281,016 1,613,357 3,321,580
Operating expenses
General administrative expenses:
Staff costs -2,649 -2,807 -5,554
Other expenses -274,322 -274,915 -548,934
Depreciation, amortisation and impairment changes of tangible assets -1 -5 -11
Total operating expenses -276,972 -277,727 -554,499
Net loan losses 4 1,092 -30,138 -60,726
Operating profit 1,005,136 1,305,491 2,706,355
Income tax expense -264,353 -343,344 -711,803
Net profit for the period 740,783 962,147 1,994,552
Nordea Hypotek AB (publ) 556091-5448 . January-June 2010
4. 4 (13)
Balance sheet
30 Jun 31 Dec 30 Jun
SEK (000s) Note 2010 2009 2009
Assets
Loans to credit institutions 5 898,329 208,438 25,530
Loans to the public 5 395,468,858 374,242,749 355,983,377
Derivatives 7 9,692,199 13,951,494 15,761,485
Fair value changes of the hedged items in
portfolio hedge of interest rate risk 2,725,203 2,404,303 2,379,839
Tangible assets - 1 6
Current tax assets 902 498 769
Other assets 1,424,791 1,910,681 2,782,402
Prepaid expenses and accrued income 543,491 562,316 620,609
Total assets 410,753,773 393,280,480 377,554,017
Liabilities
Deposits by credit institutions 79,020,686 86,592,000 83,752,535
Debt securities in issue 299,378,180 272,870,036 267,024,179
Derivatives 7 3,945,921 2,320,169 2,552,831
Fair value changes of the hedged items in
portfolio hedge of interest rate risk 8,027,626 5,804,077 5,899,299
Current tax liabilities 264,353 - 321,376
Other liabilities 291 2,572,816 334
Accrued expenses and prepaid income 2,013,627 5,786,676 1,741,771
Deferred tax liabilities 45,745 45,745 32,317
Provisions 77,300 49,700 22,519
Subordinated liabilities 3,800,000 3,800,000 3,800,000
Total liabilities 396,573,729 379,841,219 365,147,161
Equity
Share capital 110,000 110,000 110,000
Retained earnings 14,070,044 13,329,261 12,296,856
Total equity 14,180,044 13,439,261 12,406,856
Total liabilities and equity 410,753,773 393,280,480 377,554,017
Assets pledged as security for own liabilities 371,765,260 354,279,946 335,958,520
Contingent liabilities None None None
Commitments 356,812,334 297,242,960 259,695,131
Other notes
Accounting policies 1
Segment reporting 2
Classification of financial instruments 6
Capital adequacy 8
Risks and uncertainties 9
Nordea Hypotek AB (publ) 556091-5448 . January-June 2010
5. 5 (13)
Statement of changes in equity
Retained
SEK (000s) Share capital1) earnings Total equity
Opening balance at 1 Jan 2010 110,000 13,329,261 13,439,261
Net profit for the period - 740,783 740,783
Closing balance at 30 Jun 2010 110,000 14,070,044 14,180,044
Retained
SEK (000s) Share capital1) earnings Total equity
Opening balance at 1 Jan 2009 110,000 11,334,709 11,444,709
Net profit for the year - 1,994,552 1,994,552
Shareholders´ contribution - 1,895,482 1,895,482
Group contribution paid - -2,571,889 -2,571,889
Tax effect of group contribution - 676,407 676,407
Closing balance at 31 Dec 2009 110,000 13,329,261 13,439,261
Retained
SEK (000s) Share capital1) earnings Total equity
Opening balance at 1 Jan 2009 110,000 11,334,709 11,444,709
Net profit for the period - 962,147 962,147
Closing balance at 30 Jun 2009 110,000 12,296,856 12,406,856
1) 100,000 shares
Nordea Hypotek AB (publ) 556091-5448 . January-June 2010
6. 6 (13)
Cash flow statement
Jan-Jun Jan-Jun Full year
SEK (000s) 2010 2009 2009
Operating activities
Operating profit 1,005,136 1,305,491 2,706,355
Adjustments for items not included in cash flow -4,012,644 -2,876,812 920,448
Income tax paid -404 -206 -676,341
Cash flow from operating activities before changes in
operating assets and liabilities -3,007,912 -1,571,527 2,950,462
Changes in operating assets
Changes in lending to the public -21,230,196 -15,528,274 -33,823,727
Changes in derivatives, net 8,077,804 2,344,727 4,171,574
Changes in other assets 485,891 -1,972,681 -1,100,962
Changes in operating liabilities
Change in deposits by credit institutions -7,571,314 23,259,535 26,099,000
Change in debt securities in issue 26,508,144 -5,362,144 483,713
Change in other liabilities -2,572,526 -1,752,877 819,606
Cash flow from operating activities 689,891 -583,241 -400,334
Financing activities
Shareholders´ contribution - - 1,895,482
Change in subordinated liabilities - - 0
Group contributions paid - - -1,895,482
Cash flow from financing activities - - 0
Cash flow for the period 689,891 -583,241 -400,334
Cash and cash equivalents at beginning of period 208,438 608,771 608,771
Cash and cash equivalents at end of period 898,329 25,530 208,438
Change 689,891 -583,241 -400,334
Cash and cash equivalents
30 Jun 30 Jun 31 Dec
SEK (000s) 2010 2009 2009
Lending to credit institutions, payable on demand 898,329 25,530 208,438
Nordea Hypotek AB (publ) 556091-5448 . January-June 2010
7. 7 (13)
Note 1 Accounting policies
Nordea Hypotek’s interim report is prepared in accordance with the Swedish Annual Accounts Act for Credit
Institutions and Securities Companies (1995:1559) (ÅRKL) and the regulations and general directions of the Swedish
Financial Supervisory Authority in respect of annual reports of credit institutions and securities companies (FFFS
2008:25, with addition of FFFS 2009:11) and the recommendations RFR2.3 “Accounting for Legal Entities” issued by
the Swedish Financial Reporting Board. Nordea Hypotek applies so-called limited IFRS and this refers to the standards
approved for application in the EU with the limitations that follow from RFR 2.3 and FFFS 2008:25, (with addition of
FFFS 2009:11). This means that all of the EU-approved IFRS and declarations are applicable as far as possible within
the framework of ÅRKL and with consideration to the connection between financial reporting and taxation. The
accounting policies, basis for calculations and presentations are, in all material aspects, unchanged compared with the
2009 Annual Report, except for the classification of pension expenses, lending commissions and interest compensation.
All components within pension expenses are, as from 2010, classified as “Staff costs”. Previous classified as
“Appropriations”.
Nordea Hypotek has also reclassified lending commissions from “Net fee and commission income” to “Net interest
income”. Lending commissions that are considered an integral part of the effective interest rate of a loan are included in
the calculation of effective interest and now classified as “Net interest income” in the income statement. Lending
commissions considered compensation for services performed are still classified as “Net fee and commission income”.
The impact on “Net interest income” as of June 2010 is SEK 2m and June 2009 is SEK 2m.
As from 2010 Nordea Hypotek AB recognises received interest compensation on fixed interest rate loans as "Net result
on items at fair value", because this is common practice in the market and as the compensation equals the fair value
adjustment arising from changes in applicable interest rates. The impact on Nordea Hypotek AB as of June 2010 is
SEK 76m and June 2009 SEK 84m.
The comparable figures have been restated accordingly.
Nordea Hypotek AB (publ) 556091-5448 . January-June 2010
8. 8 (13)
Note 2 Segment reporting
Operating segments
Nordic Banking Group Corporate Centre Other Operating
segments
Jan-Jun Jan-Jun Jan-Jun Jan-Jun Jan-Jun Jan-Jun
SEKm 2010 2009 2010 2009 2010 2009
Total operating income 1,624 1,445 -453 3 0 0
Operating profit 1,625 1,415 -453 3 0 0
Total assets 395,443 355,961 - - 26 22
Total Operating segments Reconciliation Total
Jan-Jun Jan-Jun Jan-Jun Jan-Jun Jan-Jun Jan-Jun
SEKm 2010 2009 2010 2009 2010 2009
Total operating income 1,171 1,448 110 165 1,281 1,613
Operating profit 1,172 1,418 -167 -113 1,005 1,305
Total assets 395,469 355,983 - - 395,469 355,983
Reconciliation between total operating segments and financial statements
Jan-Jun 2010 Jan-Jun 2009
Operating Loans to Operating Loans to
SEKm profit the public profit the public
Total operating segments 1,172 395,469 1,418 355,983
Group functions and unallocated items -167 - -113 -
Total 1,005 395,469 1,305 355,983
Reportable Operating segments
Nordic Banking provides full-service banking operations for private individuals and corporate customers and
comprises Nordea Hypotek’s biggest customer area. Group Corporate Centre above refers to Group Treasury. Other
business segments relate to Institutional and International Banking.
Nordea Hypotek AB (publ) 556091-5448 . January-June 2010
9. 9 (13)
Note 3 Net gains/losses on items at fair value
Jan-Jun Jan-Jun Full year
SEK (000s) 2010 2009 2009
Interest-bearing securities and other interest-related instruments 45,298 161,236 282,024
Total 45,298 161,236 282,024
Note 4 Net loan losses
Jan-Jun Jan-Jun Full year
SEK (000s) 2010 2009 2009
Loan losses divided by class
Loans and receivables to the public 1,092 -30,138 -60,726
- of which provisions -5,000 -34,681 -63,629
- of which write-offs -8,965 -2,244 -9,414
- of which allowances used for covering write-offs 2,353 600 628
- of which reversals 7,524 890 898
- of which recoveries 5,180 5,297 10,791
Total 1,092 -30,138 -60,726
Specification of loan losses
Changes of allowance accounts in the balance sheet 2,524 -33,791 -62,731
- of which Loans and receivables, individually assessed -2,476 890 -2,050
- of which Loans and receivables, collectively assessed 5,000 -34,681 -60,681
Changes directly recognised in the income statement -1,432 3,653 2,005
- of which realised loan losses, individually assessed -128 - -702
- of which realised loan losses, collectively assessed -6,484 -1,644 -8,084
- of which realised recoveries, collectively assessed 5,180 5,297 10,791
Total 1,092 -30,138 -60,726
Nordea Hypotek AB (publ) 556091-5448 . January-June 2010
10. 10 (13)
Note 5 Loans and receivables and their impairment
Credit institutions The public
30 Jun 31 Dec 30 Jun 30 Jun 31 Dec 30 Jun
SEKm 2010 2009 2009 2010 2009 2009
Loans and receivables, not impaired 898 208 26 395,523 374,305 356,030
Impaired loans and receivables: - - - 28 25 11
- Performing - - - 28 17 7
- Non-performing - - - 0 8 4
Loans and receivables before allowances 898 208 26 395,551 374,330 356,041
Allowances for individually assessed impaired loans - - - -8 -8 -5
- Performing - - - -8 -5 -3
- Non-performing - - - 0 -3 -2
Allowances for collectively assessed impaired loans - - - -74 -79 -53
Allowances - - - -82 -87 -58
Loans and receivables, carrying amount 898 208 26 395,469 374,243 355,983
Total
30 Jun 31 Dec 30 Jun
SEKm 2010 2009 2009
Loans and receivables, not impaired 396,421 374,513 356,056
Impaired loans and receivables: 28 25 11
- Performing 28 17 7
- Non-performing 0 8 4
Loans and receivables before allowances 396,449 374,538 356,067
Allowances for individually assessed impaired loans -8 -8 -5
- Performing -8 -5 -3
- Non-performing 0 -3 -2
Allowances for collectively assessed impaired loans -74 -79 -53
Allowances -82 -87 -58
Loans and receivables, carrying amount 396,367 374,451 356,009
Nordea Hypotek AB (publ) 556091-5448 . January-June 2010
11. 11 (13)
Reconciliation of allowance accounts for impaired loans
The public
Individually Collectively
Loans and receivables, SEK (000s) assessed assessed Total
Opening balance at 1 Jan 2010 -7,875 -79,000 -86,875
Provisions -5,000 - -5,000
Reversals 2,525 5,000 7,525
Changes through the income statement -2,475 5,000 2,525
Allowances used to cover write-offs 2,352 - 2,352
Closing balance at 30 Jun 2010 -7,998 -74,000 -81,998
Opening balance at 1 Jan 2009 -6,453 -18,319 -24,772
Provisions -2,948 -60,681 -63,629
Reversals 898 - 898
Changes through the income statement -2,050 -60,681 -62,731
Allowances used to cover write-offs 628 - 628
Closing balance at 31 Dec 2009 -7,875 -79,000 -86,875
Opening balance at 1 Jan 2009 -6,453 -18,319 -24,772
Provisions - -34,681 -34,681
Reversals 890 - 890
Changes through the income statement 890 -34,681 -33,791
Allowances used to cover write-offs 600 - 600
Closing balance at 30 Jun 2009 -4,963 -53,000 -57,963
Key ratios
30 Jun 31 Dec 30 Jun
2010 2009 2009
Impairment rate, gross1, basis points 0.7 0.7 0.3
Impairment rate, net2, basis points 0.5 0.5 0.2
Total allowance rate3, basis points 2.1 2.3 1.6
Allowances in relation to impaired loans4, % 28.8 31.6 45.1
Total allowances in relation to impaired loans5, % 295.0 348.5 526.8
1 Individually assessed impaired loans and receivables before allowances divided by total loans and receivables before allowances.
2 Individually assessed impaired loans and receivables after allowances divided by total loans and receivables before allowances.
3 Total allowances divided by total loans and receivables before allowances.
4 Allowances for individually assessed impaired loans and receivables divided by individually assessed impaired loans and receivables before
allowances.
5 Total allowance divided by total impaired loans and receivables before allowances.
Nordea Hypotek AB (publ) 556091-5448 . January-June 2010
12. 12 (13)
Note 6 Classification of financial instruments
Derivatives Non
Loans and used for financial
SEKm receivables hedging assets Total
Financial assets
Loans and receivables to credit institutions 898 - - 898
Loans and receivables to the public 395,469 - - 395,469
Derivatives - 9,692 - 9,692
Fair value changes of the hedged items in
portfolio hedge of interest rate risk 2,725 - - 2,725
Other assets 1,425 - 1 1,426
Prepaid expenses and accrued income 544 - - 544
Total 30 Jun 2009 401,061 9,692 1 410,754
Total 31 Dec 2009 379,328 13,952 0 393,280
Total 30 Jun 2009 361,792 15,761 1 377,554
Derivatives Other Non
used for financial financial
SEKm hedging liabilities liabilities Total
Financial liabilities
Deposits by credit institutions - 79,021 - 79,021
Debt securities in issue - 299,378 - 299,378
Derivatives 3,946 - - 3,946
Fair value changes of the hedged items in
portfolio hedge of interest rate risk - 8,028 - 8,028
Other liabilities - 0 310 310
Accrued expenses and prepaid income - 2,009 5 2,014
Provisions - - 77 77
Subordinated liabilities - 3,800 - 3,800
Total 30 Jun 2009 3,946 392,236 392 396,574
Total 31 Dec 2009 2,320 377,419 102 379,841
Total 30 Jun 2009 2,553 362,214 381 365,147
Nordea Hypotek AB (publ) 556091-5448 . January-June 2010
13. 13 (13)
Note 7 Derivatives and hedge accounting, SEKm
30 Jun 2010 31 Dec 2009 30 Jun 2009
Fair value Assets Liabilities Assets Liabilities Assets Liabilities
Derivatives used for hedging
Interest rate derivatives 6,686 1,673 6,385 1,779 4,405 2,153
Foreign exchange derivatives 3,006 2,273 7,567 542 11,356 400
Total 9,692 3,946 13,952 2,320 15,761 2,553
Of which
- Fair value hedges 9,692 3,946 13,952 2,320 15,761 2,553
30 Jun 31 Dec 30 Jun
Nominal amount 2009 2008 2008
Derivatives used for hedging
Interest rate derivatives 261,161 221,413 177,962
Foreign exchange derivatives 90,718 73,601 69,251
Total 351,879 295,013 247,213
Of which
- Fair value hedges 351,879 295,013 247,213
Note 8 Capital adequacy
30 Jun 31 Dec 30 Jun
SEKm 2010 2009 2009
Tier 1 capital 13,202 13,206 11,285
Capital base 16,892 16,900 14,954
Risk-weighted amount excluding transition rules 53,111 49,707 49,312
Tier 1 capital ratio, per cent 24.9 26.6 22.9
Total capital ratio, per cent 31.8 34.0 30.3
Risk-weighted amount including transition rules 177,510 166,050 155,868
Tier 1 capital ratio, per cent 7.4 8.0 7.2
Total capital ratio, per cent 9.5 10.2 9.6
Note 9 Risks and uncertainties
The company’s main risk exposure is credit risk. The company also assumes liquidity risk and operational risk.
None of the above exposures and risks is expected to have any significant adverse effect on the company or its financial
position in the next six months.
There are no disputes or legal proceedings in which material claims have been lodged against the company.
Nordea Hypotek AB (publ) 556091-5448 . January-June 2010