Following the affirmation of ratings on 16 November 2020, Scope has updated its issuer report on BN Bank ASA, rated A- with Stable Outlook.

The ratings reflect BN Bank’s solid credit fundamentals and its ownership by SpareBank 1 Alliance member banks. BN Bank is a digital bank serving both retail and corporate customers in Norway, with a target 70% retail / 30% corporate lending mix. In the retail market, the bank has a nationwide presence and focuses primarily on mortgage lending. The bank is also specialised commercial real estate lender operating mainly in the Oslo region.

BN Bank operates in a prudent manner, generating sustainable earnings and dividends for its owners. For the nine months ending 30 September 2020, the bank reported a return on equity of 7.8%. While commercial real estate exposures tend be more vulnerable in economic downturns, the bank’s loan portfolio has seen a limited increase in credit risk. Credit impairments remain at levels which can be comfortably absorbed by earnings. Further, the bank’s prudential metrics continue to be at reassuring levels.

Click here to access the full rating report.