SpareBank 1 Nord-Norge: 2nd Quarter 2013 - The region's own bank is poised for further growth in North Norway
SpareBank 1 Nord-Norge posts a good result for the second quarter. In order to keep up with the positive developments in the region, the Bank is obtaining new capital through an issue.
SpareBank 1 Nord-Norge posts a good result for the second quarter of 2013. Operating profits before tax were NOK 497 million, compared to NOK 392 million for Q2 of 2012.
"The Q2 result contributes to strengthen the equity of SpareBank 1 Nord-Norge. As a result of the authorities' strengthened capital adequacy requirements, this work must continue in the coming years. A sound financial principle is to build reserves when times are good. This is exactly what we are doing now," says CEO of SpareBank 1 Nord-Norge, Jan-Frode Janson.
Northern Norway is enjoying a period of continued good economic growth. This can be seen in all sectors of society. An important reason for the positive developments is the region's access to and exploitation of valuable natural resources. Substantial oil and gas discoveries in the Norwegian Sea and Barents Sea have resulted in rapid growth in the oil industry, both directly and indirectly through many related industries.
"The region is emerging as exciting and attractive, with a broad range of opportunities," the CEO says.
Earlier this year SpareBank 1 Nord-Norge implemented several different measures to meet the new capital adequacy requirements. Among other things, reduced dividends for owners have been announced, in addition to cost-cutting measures. The pricing of the Bank's products have also been adapted to the new framework conditions.
"We can see that the measures we have implemented have been effective. In addition, it is particularly gratifying that we are increasing our market share in the retail market."
In order to ensure that the bank is poised to play a part in the region's growth, the Main Board of Directors has proposed to the Supervisory Board to conduct a pre-emptive rights issue of equity capital certificates of up to NOK 750 million. In addition, utilisation of up to NOK 200 million of the existing authorisation from the Supervisory Board for a private placement is being considered.
"As the region's own bank we want to be a part of the boom. Our vision is 'For Northern Norway,' and this is a commitment. We are therefore inviting to an issue," says Jan-Frode Janson.
Further comments to the accounts may be found in the attached note. Any questions may be directed to CEO Jan-Frode Janson, tel. +47 909 75 183, or CFO Rolf Eigil Bygdnes, tel. +47 905 19 774. Also see the Bank's website at www.snn.no.
Tromsø, Norway, 13 August 2013
for SpareBank 1 Nord-Norge
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.