| Adjusted C/I ratio (%) | Adjusted total operating expenses in relation to adjusted total operating income. Total operating expenses are adjusted for items affecting comparability, amortisation of surplus values from acquisitions, impairment, including net loss from scrapping of intangible assets, and restructuring costs. Total operating income is adjusted for items affecting comparability. | Used by management to assess the operational efficiency, after amortisations of surplus values from acquisitions (incl. goodwill) and after adjustments for items affecting comparability between periods. |
| Adjusted operating profit | Operating profit adjusted for items affecting comparability, amortisation of surplus values from acquisitions, impairment, including net loss from scrapping of intangible assets, and restructuring costs. | Used by management to assess the financial performance, after amortisations of surplus values from acquisitions (incl. goodwill) and after adjusting for items affecting comparability between periods. |
| Adjusted operating profit less tax | Operating profit adjusted for items affecting comparability, amortisation of surplus values from acquisitions, impairment, including net loss from scrapping of intangible assets, and restructuring costs less tax (tax rate 20.6 per cent). | Used by management to assess the financial performance, after amortisations of surplus values from acquisitions (incl. goodwill) and after adjusting for items affecting comparability between periods adjusted for tax. |
| Adjusted profit before credit losses | Profit before credit losses adjusted for items affecting comparability, amortisation of surplus values from acquisitions, impairment, including net loss from scrapping of intangible assets, and restructuring costs. | Used by management to assess the financial performance, after amortisations of surplus values from acquisitions (incl. goodwill) and after adjusting for items affecting comparability between periods. |
| Adjusted RoRC (%) | Adjusted net profit (tax rate 20.6 per cent) in relation to average required capital. For quarters, the adjusted net profit is annualised by multiplying the amount for the quarter by four. Average required capital is calculated as average risk weighted exposure amount times a given capital level of 16 per cent. Average risk weighted exposure amount is calculated as the average of the opening and closing balance each respective year/period end. 2023 average has been adjusted for the acquisition of Bank2 in Norway on 31 October 2023. | Used by management to assess the profit generation in relation to the average required capital consumed by the actual average risk weighted exposures. |
| Adjusted RoTE (%) | Adjusted operating profit less tax (tax rate 20.6 per cent) attributable to shareholders in relation to average tangible equity excluding additional tier 1 instruments (AT1 instruments). For quarters, the adjusted operating profit is annualised by multiplying the amount for the quarter by four. Tangible equity excluding AT1 instruments is calculated as total equity less goodwill and intangible assets relating to acquisitions and AT1 instruments. Average tangible equity is calculated as the average of the opening and closing balance each respective year/period end. 2023 average has been adjusted for the acquisition of Bank2 in Norway on 31 October 2023. | Used by management to assess the return generated in relation to the net assets excluding acquisition related surplus values such as goodwill and intangible assets relating to acquisitions. |
| Adjusted total operating expenses | Total operating expenses adjusted for items affecting comparability, amortisation of surplus values from acquisitions and impairment, including net loss from scrapping of intangible assets, and restructuring costs. | Used by management to assess the total operating expenses between periods adjusted for items affecting comparability. |
| C/I ratio (%) | Total operating expenses in relation to total operating income. | Used by management to follow the Cost to Income ratio in order to assess operational efficiency. |
| CET1 | Common Equity Tier 1 capital comprises share capital, paid-in capital, retained earnings and other reserves of the companies included in the consolidated situation. | Regulatory required and used by management to measure capital availability and financial strength. |
| CET1 ratio (%) | CET1 in relation to total risk-weighted amount. | Regulatory required and used by management to measure the financial strength by comparing capital availability with risk-weighted amounts. |
| Cost of funding (%) | Interest expenses in relation to average funding base. For quarters, the interest expenses are annualised by multiplying the amount for the quarter by four. Funding base consists of deposits from the public and issued bonds and the average is calculated as the average of the opening and closing balances for the year/period end. 2023 average has been adjusted for the acquisition of Bank2 in Norway on 31 October 2023. | Used by management to measure the effectiveness of the funding operations and the development in cost of funding. |
| Credit loss ratio (%) | Net credit losses last twelve months (“LTM”) in relation to average lending to the public at amortised cost LTM. Average lending to the public at amortised cost LTM is calculated as the average of the opening and closing balance each respective year/twelve month period end. 2023 average has been adjusted for the acquisition of Bank2 in Norway on 31 October 2023. | Used by management to measure the effectiveness of the credit assessment process and the credit risk development. |
| Items affecting comparability | Items that are reported separately due to their nature and amount. | Items affecting comparability are used by management to explain variations in historical profitability. Separate reporting and specification of items affecting comparability enables the users of the financial information to understand and evaluate the adjustments made by management. |
| Lending to the public | Loans to individuals. | Used by management to compare the performance of the lending operations in comparison with comparative periods. |
| Lending to the public at amortised cost | Lending to the public excluding lending to the public held at fair value. | Used by management to compare the performance of the lending operations in comparison with comparative periods. |
| Lending to the public at amortised cost, gross | Lending to the public before provisions excluding lending to the public held at fair value. | Used by management to compare the performance of the lending operations before provisions in comparison with comparative periods. |
| Leverage ratio | Tier 1 capital divided by exposure amount (as calculated according to the Capital Requirements Regulation (EU) 575/2013 (CRR)). | Regulatory measure used by management to ensure the company’s compliance to requirements. |
| Loans-to-deposits ratio (%) | Lending to the public in relation to deposits from the public. | Used by management to measure the share of deposits to fund the lending operations. |
| Net credit losses | Credit impairments (net) and write-off losses, change in provisions and recoveries. Presented as Credit losses net in the consolidated income statement. | Used by management to measure the effectiveness of the credit assessment process and the credit risk development. |
| Net interest margin (%) | Net interest income in relation to average lending to the public. For quarters, the net interest income is annualised by multiplying the amount for the quarter by four. Average lending to the public is calculated as the average of the opening and closing balance each respective year/period end. 2023 average has been adjusted for the acquisition of Bank2 in Norway on 31 October 2023. | Used by management as a performance measure to analyse the margin in the lending to the public. |
| Organic lending growth (%) | Growth in Lending to the public excluding acquisitions and divestments during the last twelve months, compared to Lending to the public the same period last year. | Used by management to measure the organic growth in the loan portfolio, excluding effects from acquisitions and divestments. |
| Realised losses/average lending to the public at amortised cost (%) | Actual credit losses less recoveries of previous losses in relation to average lending to the public at amortised cost. For quarters, the actual credit losses less recoveries are annualised by multiplying the amount for the quarter by four. Average lending to the public at amortised cost is calculated as the average of the opening and closing balance each respective year/period end. 2023 average has been adjusted for the acquisition of Bank2 in Norway on 31 October 2023. | Used by management to measure the effectiveness of the credit assessment process and the credit risk development. |
| Risk adjusted C/I ratio (%) | Adjusted total operating expenses plus net credit losses in relation to adjusted operating income. | Used by management to follow the Cost to Income ratio between periods adjusted for items affecting comparability in order to assess operational and credit underwriting efficiency. |
| RoTE (%) | Operating profit less tax attributable to shareholders in relation to average tangible equity excluding additional tier 1 instruments (AT1 instruments). For quarters, the operating profit less tax is annualised by multiplying the amount for the quarter by four. Tangible equity excluding AT1 instruments is calculated as total equity less goodwill and intangible assets relating to acquisitions and AT1 instruments. Average tangible equity is calculated as the average of the opening and closing balance each respective year/period end. 2023 average has been adjusted for the acquisition of Bank2 in Norway on 31 October 2023. | Used by management to assess the return generated in relation to the net assets excluding acquisition related surplus values such as goodwill and intangible assets relating to acquisitions. |
| Stage 3 ratio (%) | Loans classified as stage 3 in relation to lending to the public before provisions, less equity release loans. | Used by management to assess the credit risk development and to assess the adequacy of the credit assessment process. |
| Total capital ratio | Total eligible own funds divided by risk exposure amount (as calculated according to the to the Capital Requirements Regulation (EU) 575/2013 (CRR)). | Regulatory required and used by management to measure capital availability and financial stability. |
| Total operating income | The net income generated by the operations. Includes net interest income, net commission income, net gains and losses from financial transactions, the result from shares in associated companies and joint ventures and other operating income. | Used by management to assess the financial performance before operating expense, credit losses and tax. |