SpareBank 1 SR-Bank ASA: Good result characterised by growth, low losses and efficient operations
The Group achieved a pre-tax profit of NOK 1,012 million in the first half of 2013, compared with NOK 798 million for the same period last year. The result was characterised by greater efficiency, increased income and continued low losses. Return on equity after tax was 12.1%, compared with 12.3% for the same period in 2012. The pre-tax profit for the quarter alone was NOK 511 million (NOK 405 million), equivalent to a return on equity after tax of 11.8% (11.8%).
"I am very satisfied with the result overall. In 2012, we set ourselves a target of improving efficiency in the Group through a combination of growth and utilising our resources more efficiently. We have been very successful. Going forward we will continue this work and by the end of 2014, 100 fewer full-time equivalents will probably be handling more customers than at the start of 2012," says Arne Austreid, CEO of SpareBank 1 SR-Bank.
The Group's net interest income, including income from commissions and its share of the profits from SpareBank 1 Boligkreditt and SpareBank 1 Næringskreditt, amounted to NOK 1,286 million compared with NOK 1,017 million in the first half of 2012. The share of the profit from SpareBank 1 Gruppen also improved, despite the value of SpareBank 1 Markets being written down during the quarter.
Key figures for first half of 2013
- Pre-tax profit: NOK 1,012 million (NOK 798 million)
- Net profit for the period: NOK 777 million (NOK 619 million)
- Return on equity after tax: 12.1% (12.3%)
- Earnings per share: NOK 3.04 (NOK 2.42)
- Net interest income: NOK 977 million (NOK 814 million)
- Net commissions and other operating income: NOK 869 million (NOK 681 million)
- Net income from financial investments: NOK 223 million (NOK 289 million)
- Operating costs: NOK 1,007 million (NOK 918 million)
- Impairment losses on loans: NOK 50 million (NOK 68 million)
- Total lending growth over the last 12 months: 6.1 % (9.3 %)
- Growth in deposits over the last 12 months: 2.8 % (9.7 %)
- Tier 1 capital ratio: 12.0 % (11.4 %)
- Core equity capital ratio: 10.3 % (9.2 %)
(Figures for H1 2012 are shown in parentheses)
The level of activity in the region continues to be affected by optimism. Expectations concerning major investments on the Norwegian continental shelf in the years ahead, combined with major investments in new, important infrastructure in the region, are contributing to this optimism. Loan losses continue to be very low and are expected to remain at a comparable level in the coming quarters.
"We are building this organisation brick by brick. We have, over a number of years, ensured we have strengthened our tier 1 capital, both to satisfy new regulatory requirements and so we can provide an expanding market with the capital it requires for robust business development and enough house building. The bank's solvency has never been better, which enables us to continue being a driving force behind growth in this region," concludes Arne Austreid.
The entire interim report may be downloaded from www.sr-bank.no.
Stavanger, 14 August 2013
Arne Austreid, CEO, Tel. (+47) 900 77 334.
Inge Reinertsen, CFO, Tel. (+47) 909 95 033.
Thor-Christian Haugland, Executive Vice President Communications, Tel. (+47) 480 31 633.
Vidar Torsøe, Vice President Investor Relations, Tel. (+47) 970 80 656.