Equity certificates

Here you will find information about SpareBank 1 SMN's equity certificates. (MING).

Equity certificate capital

At the end of 2015 SpareBank 1 SMN’s equity certificate (EC) capital totalled NOK 2,597m distributed on 129,836,443 ECs with a nominal value of NOK 20 each. At the turn of the year the bank had a treasury holding of ECs totalling NOK 128,620 distributed on 6,431 ECs.

Go here for key figures for equity certificates for the last ten years (Annual report 2015).

Dividend policy

A new act and regulations on equity certificates, which came into force on 1 July 2009, bring savings banks’ ECs more into line with shares. They entail greater equality of treatment of savings banks’ various owner groupings and minimises previous concerns related to dilution of EC holders upon payment of cash dividends.

In light of the new body of rules, the following dividend policy was established in December 2009: 

  • SpareBank 1 SMN aims to manage the Group’s resources in such a way as to provide EC holders with a good, stable and competitive return in the form of dividend and a rising value of the EC.
  • The net profit for the year will be distributed between the EC capital (the EC holders) and the ownerless capital in accordance with their respective shares of the bank’s total equity capital.
  • SpareBank 1 SMN assumes and expects about one half of the EC capital’s share of the net profit to be paid out in dividends and the same proportion ownerless capital’s share of the net profit to be paid out as gifts or transferred to a foundation.

Investor policy

The Bank attaches considerable importance to correct, relevant and timely information on the Bank’s progress and performance as a means of instilling investor market confidence. Information is communicated to the market via quarterly investor presentations and press releases. Presentations for international partners, lenders and investors are also arranged on a regular basis.

Ownership structure

SpareBank 1 SMN aims for good EC liquidity and to achieve a good spread across EC holders representing customers, regional investors and Norwegian and foreign institutions.

The number of EC holders was reduced by 339 to 8,059 in the course of 2015. The Bank’s 20 largest ECholders controlled 38 per cent of the bank’s ECs at end-2015, and 38.8 million ECs were traded under the MING ticker symbol on the Oslo Stock Exchange in 2015.

ECs owned by investors in the counties of South and North Trøndelag, Møre and Romsdal and Sogn and Fjordane account for 18.4 (18.5) per cent of the total, other Norwegian investors account for 60.3 (61.0) per cent and foreign owners for 21.3 (20.5) per cent. Foreign owners make up 4.0 (3.0) per cent of the total number of owners as of 31 December 2015.

See the largest EC holders here

Tax credit

In order to prevent double taxation of the bank and its EC holders, rules on tax credits have been introduced (section 10–12 of the Tax Act, replacing previous ‘RISK’ rules). The tax credit, computed for each share/EC, equals the share’s/EC’s tax-credit base multiplied by a tax-free interest rate. The tax-credit base equals the share’s/EC’s opening value. The tax-free interest rate is determined by the Ministry of Finance in regulations. The tax credit is assigned to the holder of the share/EC on 31 December of the income year.

Analyst coverage

See a list of our analyst coverage here