Good profit performance by SpareBank 1 SMN
SpareBank 1 SMN posted a profit of NOK 510m in the first half of 2012, an
increase of NOK 5m over the same period last year. The Bank reinforced its
position in both the retail and corporate market.
The half-year accounts reflect a sound trend in the Bank's ordinary operations,
a positive earnings trend, a low level of defaults and loan losses, a good
return on financial assets, a strong financial position and high growth in
deposits and lending alike.
"We are pleased with the trend at SpareBank 1 SMN in the first half of 2012.
Solid operations combined with sound and profitable growth and very low losses
enable the bank to continue to deliver a good performance. With its solid tier
1 capital adequacy and robust funding, the Bank is well positioned for continued
progress," says SpareBank 1 SMN's Group CEO, Finn Haugan.
"SpareBank 1 SMN has raised its market share among households and businesses
alike in Trøndelag and Møre and Romsdal. In order to further strengthen its
position, the Bank has launched an improvement programme designed to improve
customer experience, raise productivity and reduce relative operating costs",
says Mr Haugan.
First half accounts 2012 - highlights:
* Profit before tax: NOK 659m (640m in first half 2011)
* Profit after tax: NOK 510m (505m)
* Return on equity: 11.7% (13.0%)
* Growth in lending: 10.6% (8.6%)
* Growth in deposits: 12.0% (11.4%)
* Loan losses: NOK 25m (-7m)
* Tier 1 capital adequacy: 11.0% (10.7%)
* Earnings per equity certificate: NOK 2.63 (2.99)
Very low losses
The Bank shows very low losses and low defaults, reflecting both the region's
economic position and the Bank's portfolio quality. Net losses account for a
mere 0.05 per cent of total lending. No basis has been found to revise
collectively assessed impairment write-downs.
High activity levels at the Bank and its subsidiaries Eiendomsmegler 1 Midt-
Norge and SpareBank 1 SMN Regnskap, and increased outlays on developing the
SpareBank 1 collaboration, have produced higher costs compared with the first
half of last year. The growth in costs is in keeping with the Group's plans.
SpareBank 1 SMN is well capitalised and has a robust funding situation. The Bank
has liquidity reserves of NOK 21bn and can take a possible further tightening of
banking sector access to money market funding in its stride.
SpareBank 1 SMN has negligible international exposure in its ordinary business
and limited direct exposure to securities markets.
Outstanding loans top NOK 100bn
Just before the half-year mark SpareBank 1 SMN's overall lending rose above NOK
100bn. Overall 12-month growth in lending to the retail market was 10.8%
compared with general household credit growth of 7.1% as of end-May 2102,
according to Statistics Norway. SpareBank 1 SMN shows strong growth throughout
its market area. A total of 6,200 new retail customers joined the Bank in the
first half of 2012.
SpareBank 1 SMN retains its solid position in the corporate market with 10.3%
growth in lending compared with general credit growth of 6.0%, according to
Statistics Norway. Lending growth to the corporate market is expected to abate
somewhat ahead. The Bank has strengthened its market position among good, solid
companies in its market area and has a very low rate of defaults and little in
the way of losses.
Commission income and other operating revenues rose by 15% to NOK 524m in the
first half of 2012. The Bank's subsidiaries continue to make solid headway. The
largest of them - EiendomsMegler 1 Midt-Norge, SpareBank 1 SMN Finans and
SpareBank 1 SMN Regnskap - are strengthening their market position and
SpareBank 1 SMN's total assets came to NOK 134bn as of end-June 2012, including
loans transferred to the part-owned SpareBank 1 Boligkreditt.
Sound finances regionally and nationally
"Prospects for the European economy remain demanding. Regionally there are still
few indications that this will significantly weaken the position of business and
industry. The Bank's Board of Directors bases its assessments on the expectation
that 2012 will be another good year for SpareBank 1 SMN," says Finn Haugan.
Trondheim, 9 August 2012.
Contact persons at SpareBank 1 SMN:
Group CEO Finn Haugan on +47 900 41 002
Executive Vice President, Finance, Kjell Fordal on +47 905 41 672
About SpareBank 1 SMN
SpareBank 1 SMN is the region's leading financial services group. It leads the
retail and corporate market, and is positioned in 43 localities across the
region's municipalities with a total of 54 offices.
We aim to be the recommended bank for customers in Trøndelag and in Møre and
Romsdal. Being a local, independent savings bank we feel a special
responsibility for stimulating growth and prosperity in the region. We base our
business on closeness to our customers, good accessibility, a full product range
and comprehensive financial advisory services.
Our head office is in Trondheim. The Group employs about 1,100 staff and
includes the following subsidiaries: SpareBank 1 SMN Finans, EiendomsMegler 1
Midt-Norge, Allegro Finans and SpareBank 1 SMN Regnskap. It is the largest
shareholder in BN Bank with a 33% stake.
SpareBank 1 SMN is one of six owners of SpareBank 1 Gruppen. For further
information, visit our website at www.smn.no.
2 nd quarter 2012: http://quarterlyreport.smn.no/2012/