Sparebanken Møre : Financial Reporting Document

Annual report 2021

Editorial team:

Sparebanken Møre

Layout:

Havnevik AS

Photo:

Annual report 2021 Sparebanken Møre

Haakon Lundkvist (front page Slogen), Tony Hall, Tone Molnes, Kristin Støylen, Unni Lise Dahl.

Illustrations: Havnevik AS

Content

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Words from the CEO

Operations

• 10 Highlights

• 12 Key figures

• 14 Organisation and management

• 18 Board of Directors

• 20 Executive Management

• 22 Subsidiaries

• 24 Implementation and reporting on corporate governance

Statement and results

• 35 Board of Directors' Report

• 54 Statement of income

• 56 Statement of financial position

• 58 Statement of changes in equity

• 62 Statement of cash flow

• 64 Notes to the financial statements

• 171 Statement pursuant to section 5-5 of the Securities Trading Act

• 172 Independant Auditor's report

• 178 Alternative Performance Measures

Corporate social responsibility and sustainibility

• 185 A driving force for sustainable development

• 188 Stakeholder engagement and materiality analysis

• 194 Our commitments

• 197 Strategic targets

• 198 Material topics

• 226 Climate risk (TCFD)

• 236 GRI-index og PRB-index

• 245 TCFD index

• 246 Carbon Accounting Report 2021

• 252 Independant Auditor's report

OPERATIONS

STATEMENT AND RESULTS

RESPONSIBILITY AND SUSTAINIBILITY

Words from the CEO

Standing strong as a savings bank

As another year enters the history books, Sparebanken Møre can look back at some eventful chapters in 2021.

It was no surprise that the year was again defined by the Covid-19 pandemic. This global virus outbreak has had lasting ripple effects for private individuals, busi-nesses, nations and the world community.

Meanwhile, another 12 months of the virus have provid-ed us with new knowledge and more experience that makes me very optimistic about the future of both the region and our business model. From a banking per-

spective, I can confidently state that the role savings banks play in society is stronger than ever.

One direct phone number away

The bank experienced good growth and positive de-velopment throughout 2021. We gained a record num-ber of new customers, seeing growth of 4.3 per cent

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in the retail market and 5.4 per cent in the corporate market. This indicates a good level of activity in our re-gion, at the same time as it confirms that many people are choosing Sparebanken Møre as their bank.

It is something of a paradox that in a time of greater physical distancing, we have in many areas become closer to each other. As a bank we have witnessed a regional unity and spirit of community that has grown bigger and stronger during the period, and which has manifested itself as a genuine wish to protect local communities. More than ever before, customers have told us that they appreciate their regular adviser in the bank being only one direct phone number away. In a period of uncertainty, a strong presence, accessibility and good relationships have contributed to stability and security, both for customers and for us.

Nevertheless, there is no doubt that it has been a chal-lenging period and at the end of 2021 many are still feeling uncertainty due to the Covid-19 pandemic. At the same time, few bankruptcies and low credit-im-paired commitment figures bear witness to the solid brands, strong corporate cultures, adaptable employ-ees and future-oriented business leaders in our region. I also feel sure that the bank has been a good support-er and sparring partner for the stakeholders around us - just like a regional savings bank should be.

It is something of a paradox that in a time of greater physical distancing, we have in many areas become closer to each other.

A stronger total offering

Because just being there is not enough. The compe-tition for bank customers is fierce and we must really deliver the goods and add value to be the preferred choice. In 2021, we recruited a lot of new employees, and I am pleased that we continue to attract sharp minds who can contribute to our continuous work of creating good customer experiences. Throughout the year, we have taken several steps to contribute to reach this goal and already we are seeing the results.

We started the year by expanding our service provision within asset management and can now offer bespoke teams to customers who want saving and investment advice. We have also established the Næringsbasen

customer centre for businesses and strengthened our focus on real estate brokerage.

Additionally, we launched a series of new digital func-tions in the online bank and mobile bank that simplify the everyday lives of our customers. Less physical con-tact due to infection control measures has made the smart use of technology more relevant than ever.

Valuable customer insights

Our development work is closely linked to the custom-ers' needs and, here too, we are seeing the advantage of a close relationship with customers and good knowl-edge of the region. Developing new functions and ser-vices doesn't help much if our customers really need something totally different. Over the course of a year, we receive a lot of constructive feedback that provides useful input on what is important to both private indi-viduals and companies in our region, and how we can further enhance, adjust or reject ideas and solutions.

In addition to an ongoing dialogue, external surveys are also important sources of insight for us. In April, Spare-banken Møre's customer centre was named Norway's best in the banking category, for the third year in a row. A few months later, EPSI found that Sparebanken Møre has the most satisfied corporate customers in its an-nual survey of customer satisfaction among Norwe-gian bank customers. We also ended up in the top tier among retail market customers and achieved the high-est scores of anyone on questions related to sustaina-bility and corporate social responsibility.

We are both pleased and proud of these results, which confirm that we are a relevant and attractive banking partner for our customers. Similarly, we are grateful for all of the constructive input that may help us improve even further. We never press the pause button on our development work.

Green transition

This attitude is also important for us when it comes to our efforts to contribute to a more sustainable society. Norway's goal is to reduce greenhouse gas emissions by 50-55 per cent by 2030 compared with the level in 1990, and the financial services industry has a key role to play in this work. There is little doubt that this will re-quire considerable effort on the part of all of us and last year we took several steps that may help to accelerate the pace of transition.

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