A record result in 2006 - SpareBank 1 Nord-Norge's profit totals NOK 941 million
2006 was a very good year for Sparebank 1 Nord-Norge. Preliminary accounts show a pre-tax operating result of NOK 941 million. This is NOK 212 million or 29 per cent better than the good result achieved by the Bank in 2005.
Good economic framework conditions in Nord-Norge, coupled with increased income, good cost control, low credit losses and hard work from committed and competent employees have enabled the Bank to achieve its best ever annual result in 2006. The excellent result was also boosted by a significant profit contribution from the Bank's equity stake in SpareBank 1 Gruppen AS.
"Our good result is closely related to Nord-Norge's prolonged period of strong economic expansion which begun during the autumn of 2003. Most industrial and commercial sectors within our region are enjoying high and to some extent full capacity utilisation, and the level of unemployment has been at a historically low level. This is reflected in SpareBank 1 Nord-Norge's overall performance, through businesses' increased propensity to invest, lower credit losses and fewer bad and doubtful commitments, " says Hans Olav Karde, Chief Executive Officer of SpareBank 1 Nord-Norge.
The profit for 2006 produces a 23.7 per cent return on equity capital, as against 20.5 per cent the year before. At as 31.12.2006, assets totalled NOK 54,895 million, after a 12.9 per cent expansion compared with the end of 2005. A cash dividend of NOK 10 per PCC (Primary Capital Certificate) is proposed. In addition, the main Board of Directors proposes a dividend issue, where PCC-holders will have the option of receiving a cash dividend or new PCCs.
In 2006, the Group reached all the most important strategic goals set by the main Board of Directors relating to core capital coverage, return on equity capital and overall effectiveness. The main Board of Directors is very pleased with the result for 2006.
The Bank wishes to continue its commitment to the local community (Corporate Social Responsibility) by providing donations for many different and worthwhile projects relating to knowledge and culture within its region; in this connection, a transfer of NOK 104 million to the Bank's Donations Fund has been proposed.
More details relating to the Group's operations can be found in the attached financial information.
Any questions in this connection should be directed to Hans Olav Karde, Chief Executive Officer, telephone number: 77 62 24 01, or Oddmund Aasen, Deputy Chief Executive Officer, telephone number: 77 62 20 94.
We would also refer to the Bank's home page: www.snn.no
Tromso, 7 February 2007
For and on behalf of Sparebanken Nord-Norge
Director, Information and Public Relations
The full report including tables, as well as the presentation, can be downloaded from the following links:
SpareBank 1 Nord-Norge is a leading provider of financial products and services in North-Norway.
In addition to loans, deposits and payment transmission services, this also comprises most other savings products, as well as life- and non-life insurance products.
Services and products are made available either by the bank and its subsidiaries, or through SpareBank 1 Gruppen AS's product companies.