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      Updated analytical report on SpareBank 1 Nordmore
      TUESDAY, 28/03/2023 - Scope Ratings UK Ltd
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      Updated analytical report on SpareBank 1 Nordmore

      Scope Ratings has updated its analytical report on SpareBank 1 Nordmore, rated A- with Stable Outlook.

      SpareBank 1 Nordmore’s A- issuer rating reflects its sound credit fundamentals and well-established local savings bank franchise in central Norway. The business model is characterized by a focus on retail customers and mortgage lending as well as close ties to the local community. Due to its membership in the SpareBank 1 Alliance, the bank can meet the broader financial needs of clients and benefits from important economies of scale, particularly in digital capabilities.

      In May 2021, the bank successfully completed the merger with Surnadal Sparebank which entailed about NOK 120m in integration costs. An enlarged market presence is providing growth opportunities and the bank generated its best annual result in 2022. The bank’s solid profitability is underpinned by good cost efficiency and low credit losses.

      SB1 Nordmore maintains a reassuring solvency profile, with a policy to manage growth to preserve sound prudential metrics and meet regulatory requirements. Minimum solvency requirements for Norwegian banks are comparatively high and are set to rise following announced increases in the countercyclical buffer rate and the systemic risk buffer for banks using standardised models such as SB1 Nordmore.

      While the primary source of funding remains customer deposits, SB1 Nordmore relies to some extent on market funding, including covered bonds.

      This monitoring note does not constitute a rating action, nor does it indicate the likelihood of a credit rating action in the short term. The latest information on the credit ratings in this monitoring note along with the associated rating history can be found on www.scoperatings.com

      Click here to access the full report.

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