Dividends and representation

On this page, you will find information about the dividend policy of SpareBank 1 Østlandet as well as the representation of the owners in the bank’s governing bodies.

On the corporate governance web pages, you will find a detailed report on the bank’s principles for corporate governance. The report provides the framework for how the bank should secure the interests of owners, customers and other stakeholder groups. In addition, the bank has adopted an IR-policy, which is designed to develop trust towards actual and potential investors.

Dividend policy

SpareBank 1 Østlandet puts emphasis on paying its owners a competitive and stable cash dividend, based on good profitability and high dividend capacity. The bank targets payments of 50 per cent of annual profits after taxes and minority interests in dividends to the owners of equity certificates and as customer dividends from the ownerless, primary capital. The decision to pay dividends is assessed in light of possible extraordinary income and costs, as well as taking into account expected profit developments and regulatory changes with expected consequences for capital adequacy. 

The bank's long-term target for profitability is a return on equity of at least 12 per cent. SpareBank 1 Østlandet operates in a cyclically stable region and has a high share of well collateralized mortgage loans to retail customers, contributing to a loan book with low risk. The bank’s target for solidity is captured by a long-term target for the CET 1-ratio of 100 basis points of management buffer above regulatory requirements. 

The combination of high profitability and solidity as well as operations in a stable market region with a robust loan portfolio, provides the bank with a strong basis for maintaining the targeted dividend share, also during times of economic downturns. 

Following a proposal from the Board of Directors, the Supervisory Board decides each year on the share of profits after taxes which will be distributed as dividends to ECC owners and the ownerless, primary capital, proportionally in accordance with their relative share of the bank's equity. The share of profits belonging to the ownerless capital is normally paid to the bank's customers as customer dividends. The customer dividend prevents a dilution of the ECC holders' ownership stake in the bank and contributes positively to customer satisfaction and the bank’s profitability.

Representation

The bank’s highest governing body is the Supervisory Board comprising ECC holders, depositors, employees and representatives of the public authorities. The ECC holders have 12 members in the Supervisory Board, while depositors, employees and public sector representatives have 14, 10 and 4 members.

Annually, an election meeting for ECC holders is held where representatives to the Supervisory Board are elected and information is provided about the company’s financial situation. ECC holders are invited to the election meeting at least 14 days prior to the meeting. The invitation includes the election committee’s nomination for members to the Supervisory Board as well as other relevant material.

Those registered as owners of ECCs in the VPS register is entitled to vote. Each ECC gives the right to one vote. Whoever has a right to vote can be elected. All ECC holders can participated in the meeting and voting by proxy is possible.

The election meeting is chaired by the chair of the Supervisory Board. Voting happens in writing unless all participants agree that voting can be conducted differently.