SpareBank 1 SMN sees reduced capital requirements from 2025

Finanstilsynet has set a new Pillar 2 Requirement (P2R) for SpareBank 1 SMN at 1.6% of the group's basis for calculation, a 0.1 percentage point reduction. At least 56.25% of this must be Common Equity Tier 1 capital, and 75% Tier 1 capital. A temporary Pillar 2 capital add-on for model risk of 0.7% remains until new models are approved.

The regulator also reduced the Pillar 2 Guidance (P2G) expectation from at least 1.25% to at least 1.00%. These new capital requirements apply from December 31, 2025.

Additionally, Finanstilsynet mandated that SpareBank 1 SMN maintain an LCR in foreign currency of at least 100% at all times, both at consolidated and unconsolidated levels, as long as the currency is significant. If at least one foreign currency is significant, a minimum LCR in NOK of at least 50% applies.