Nordic Credit Rating (NCR) has affirmed its 'BBB+' long-term issuer rating on Norway-based savings bank Bien Sparebank ASA. The outlook is stable. The 'N2' short-term issuer rating, 'BBB+' senior unsecured issue ratings, 'BBB' Tier 2 issue rating, and 'BB+' Additional Tier 1 issue rating have also been affirmed, in accordance with NCR's revised financial institutions rating methodology. The ratings are no longer under criteria review.
Rating rationale
NCR has reviewed its long-term and short-term issuer ratings, issue ratings, and outlook on Bien Sparebank following the revision of its methodology for assigning ratings to financial institutions (see Related publications). We consider that there have been no material changes in the bank's risk profile and have affirmed our ratings and maintained the stable outlook on the ratings on Bien Sparebank.
Under the updated methodology for financial institutions, we have revised our assessment of Bien Sparebank's competitive position due to its low market share in core markets. Operating in the Oslo region, the bank faces significant competition from most major banks. Following the change, we no longer adjust for a negative borderline assessment.
Stable outlook
The stable outlook reflects the bank's low risk appetite and strong cost efficiency, which we believe will enable resilience during a modest economic slowdown. We forecast that Bien Sparebank's loan growth will outpace its earnings capacity in 2025-2027. However, we anticipate a boost in capital ratios from 2025 following the implementation of the EU's Capital Requirements Regulations III (CRR3).
We could raise our rating on Bien Sparebank to reflect increased scale with maintained risk appetite and profitability; and improved capital and earnings, with a Tier 1 capital ratio sustainably above 25%. We could also raise the rating to reflect strengthened earnings at the bank, with pre-provision earnings above 3% and a cost-to-income ratio above 25% over a protracted period.
We could lower our rating to reflect a material deterioration in the bank's local operating environment that negatively affects its asset quality; a sustained reduction in the Tier 1 capital ratio to below 18%; or to reflect risk-adjusted earnings metrics sustainably below 1.5% of the risk exposure amount.
Related publications
i) Bien Sparebank ASA 'BBB+' long-term issuer rating affirmed; Outlook stable, 17 Mar. 2025.
ii) Nordic Credit Rating publishes amended Financial Institutions Rating Methodology, 12 May 2025.
| Rating list | To | From |
|---|---|---|
| Long-term issuer credit rating: | BBB+ | BBB+ |
| Outlook: | Stable | Stable |
| Short-term issuer credit rating: | N2 | N2 |
| Senior unsecured issue rating: | BBB+ | BBB+ |
| Tier 2 issue rating: | BBB | BBB |
| Additional Tier 1 issue rating: | BB+ | BB+ |
Contacts:
Geir Kristiansen, analyst, +4790784593, geir.kristiansen@nordiccreditrating.com
Christian Yssen, analyst, +4740019900, christian.yssen@nordiccreditrating.com
Sean Cotten, chief rating officer, +46735600337, sean.cotten@nordiccreditrating.com
The methodology documents used for this rating are NCR's Financial Institutions Rating Methodology published on 12 May 2025, NCR's Rating Principles published on 14 Feb. 2024 and NCR's Group and Government Support Rating Methodology published on 14 Feb. 2024. For the full regulatory disclaimer please see the rating report.