SpareBank 1 Østlandet : SPOL - Classification of distributions of gifts and customer dividends from the ownerless capital under IFRS

SPOL - Classification of distributions of gifts and customer dividends from the ownerless capital under IFRS

In connection with preparations of the audit of the annual accounts for the financial year 2019, the bank's auditor has expressed an assessment that the current practice for classification of distributions from the ownerless capital (gifts and customer dividends) for savings banks as an 'equity transaction' must be amended to ensure compliance with the requirements under IFRS. The Bank is of the opinion that the financial institutions act's regulation of distributions implies that a change in classification shall not affect the bank's dividend capacity, distribution of profits between ownerless capital and the equity certificate capital or the bank's capital adequacy. The Bank has initiated a process to clarify the question related to classification of distributions from the ownerless capital under IFRS and will update the market with further information once clarified. Enquiries: Geir-Egil Bolstad, CFO, tel: [phone], e-mail: [e-mail]