Question 1

What is Odal Sparebank?

Accepted Answer

Odal Sparebank is a local Norwegian savings bank headquartered in Sagstua, Norway. Established in 1877, it is a credit institution focused on retail banking and insurance products for private individuals, small and medium-sized enterprises (SMEs), and companies in the Odal, Kongsvinger, and Northern Romerike regions.

As of 2023, Odal Sparebank ranks as the 52nd largest bank in Norway with total assets of approximately NOK 7.1 billion and a market share of 0.13%. The bank is a member of the Eika Alliance, an association of over 50 small and medium-sized Norwegian savings banks that provides shared services, technology infrastructure, and access to capital markets.

Question 2

When was Odal Sparebank founded?

Accepted Answer

Odal Sparebank was founded in 1877 in Norway's Nord-Odal municipality. The bank was created to serve the local community and contribute to economic development and financial security in the region.

Over its nearly 150-year history, the bank has expanded its core market southward and eastward to include Sør-Odal, Kongsvinger, and the Northern Romerike regions. The bank operates as a self-owned institution, meaning it does not have traditional shareholders but is instead owned by its depositors, with profits reinvested in local community activities.

Question 3

Where is Odal Sparebank headquartered?

Accepted Answer

Odal Sparebank is headquartered in Sagstua, Hedmark County, Norway. The main office is located at Sentrumsvegen 22, 2120 Sagstua.

Question 4

Where does Odal Sparebank operate?

Accepted Answer

Odal Sparebank operates primarily in southern Innlandet County and northern Akershus County in Norway. The bank's core market includes the municipalities of Nord-Odal, Sør-Odal, Kongsvinger, and Eidsvoll in the Øvre Romerike region.

The bank maintains five branch offices across its service area:
• Sagstua (headquarters) - Nord-Odal
• Skarnes - Sør-Odal
• Kongsvinger - Kongsvinger municipality
• Råholt - Eidsvoll County (opened recently to serve the growing Romerike market)

Odal Sparebank has a particularly strong market position in its traditional core markets of Nord-Odal (approximately 70% market share) and Sør-Odal (approximately 40% market share).

Question 5

What services does Odal Sparebank offer?

Accepted Answer

Odal Sparebank offers a comprehensive range of banking and financial services, including:

Retail Banking Services:
• Current accounts and payment services
• Savings accounts and time deposits
• Payment cards (debit and credit cards)
• Consumer loans and car loans
• Residential mortgage loans
• eInvoice management

Commercial Banking:
• Business accounts and payment solutions
• Lending to small and medium-sized enterprises
• Commercial real estate financing

Investment and Insurance Services:
• Mutual funds and investment products through Eika Kapitalforvaltning
• Insurance products through Eika Forsikring
• Real estate agency services (the bank owns Aktiv Eiendomsmegling)

Digital Banking Services:
• Mobile banking app with full account access, payments, transfers, and fund management
• Online banking platform (available in English)
• Currency exchange and calculator tools
• Mortgage application services through digital channels
• Extended customer service hours (weekdays 7:00-21:00, weekends 9:00-21:00)

The bank transferred approximately NOK 3.7 billion in residential mortgages to Eika Boligkreditt, Norway's fifth-largest covered bond issuer, which provides competitive funding for residential mortgages. In 2023, the bank also acquired 80% ownership of an accounting firm to expand its service offerings.

Question 6

What makes Odal Sparebank unique?

Accepted Answer

Strong Local Market Position: Odal Sparebank maintains exceptional market dominance in its traditional core markets, with approximately 70% market share in Nord-Odal and 40% in Sør-Odal. This deep local presence reflects nearly 150 years of community engagement.

Self-Owned Mutual Structure: Unlike banks with traditional shareholders, Odal Sparebank is owned by its depositors. Profits are reinvested in local community activities, culture, sports, and voluntary organizations, demonstrating a strong commitment to regional development.

Eika Alliance Membership: As a member of the Eika Alliance, Odal Sparebank provides customers with access to sophisticated products typically available only at larger banks, including covered bonds through Eika Boligkreditt, comprehensive insurance, asset management, and advanced digital banking infrastructure—all while maintaining local decision-making and personal service.

High Customer Satisfaction: The bank benefits from the Eika Alliance's reputation for having among the highest levels of customer satisfaction and loyalty in Norway in both private and company markets.

Strategic Growth Focus: While maintaining its strong position in traditional markets, Odal Sparebank has strategically expanded into growing markets closer to Oslo, including Kongsvinger and Romerike, positioning the bank for future growth.

Strong Capitalization: The bank maintains a robust capital position with strong earnings, and is expected to benefit from the new CRR3 capital requirements framework coming into force in 2025, which will likely reduce capital requirements for small to medium savings banks.

Question 7

What type of financial institution is Odal Sparebank?

Accepted Answer

Odal Sparebank is a Norwegian savings bank (sparebank), specifically classified as a credit institution (CRDCREINS) regulated by the European Banking Authority.

In the Norwegian banking system, savings banks are mutual financial institutions that were historically established to promote savings and provide credit to local communities. Unlike commercial banks, savings banks do not have traditional shareholders with equity stakes. Instead, they operate as self-owned institutions where depositors are considered the collective owners.

This structure allows Odal Sparebank to focus on long-term relationships with customers and sustainable community development rather than maximizing short-term shareholder returns. The bank is supervised by the Financial Supervisory Authority of Norway (Finanstilsynet) under the national reference code 937887043 and participates in the Norwegian Banks' Guarantee Fund (NBGF), which protects deposits up to NOK 2,000,000 per depositor.

Question 8

How many employees does Odal Sparebank have?

Accepted Answer

As of March 2024, Odal Sparebank employs approximately 61 people across its five branch offices. The bank's employee base supports its local community focus with advisers providing integrated financial expertise and personalized service to private customers and businesses throughout its service area.

Question 9

What is Odal Sparebank's credit rating?

Accepted Answer

Odal Sparebank holds a BBB+ long-term issuer rating with a Stable outlook from Nordic Credit Rating, as of June 2024. This rating reflects the bank's low risk appetite, strong earnings and capital position, and proven access to capital market financing despite its relatively small size of NOK 7 billion in total assets.

The bank also has an N2 short-term rating from Nordic Credit Rating. The ratings are supported by the bank's strong market position in its core markets, diverse funding profile with a stable retail deposit base, and membership in the Eika Alliance, which provides enhanced operational efficiency and product diversity.

Odal Sparebank

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About Odal Sparebank in Norway