SpareBank 1 SR-Bank ASA: Good results, solid growth in customers and stronger equity
Pre-tax profit for 2012 of NOK 1,761 million was characterised by increased income from all business areas, solid growth in customers, low losses and moderate cost development. SpareBank 1 SR-Bank strengthened its equity by NOK 2.8 billion in 2012 through share issues and retained earnings.
SpareBank 1 SR-Bank achieved a pre-tax profit of NOK 1,761 million for 2012 compared with NOK 1,495 million for 2011. The return on equity after tax increased from 11.2% in 2011 to 12.4% in 2012 from a substantially higher equity base. Pre-tax profit for the fourth quarter in isolation was NOK 458 million (NOK 490 million). This corresponds to a return on equity after tax of 11.2% (13.9%).
"We are pleased with the improved result and the fact that more than 10,000 retail clients chose to become new customers of ours last year. Our operations have been further improved and strengthened, which is important given the stricter requirements our industry faces with respect to equity," says Arne Austreid, CEO of SpareBank 1 SR-Bank.
"Customers are choosing us because of our good products, the advice we give, solid relationships and competitive prices. We are both proud and humble about the position of EiendomsMegler 1 SR-Eiendom, which sold 7,500 homes last year. This is equivalent to almost one home every hour throughout the year," says Arne Austreid.
SpareBank 1 SR-Bank's equity was substantially strengthened in 2012. This is crucial for maintaining our position as the leading financial group in Southern and Western Norway. Net interest income, including income from commissions and profit share from SpareBank 1 Boligkreditt and SpareBank 1 Næringskreditt, is up by NOK 325 million compared with 2011. In total, income increased by NOK 519 million.
Key figures for 2012
§ Pre-tax profit: NOK 1,761 million (NOK 1,495 million)
§ Net profit for the year: NOK 1,361 million (NOK 1,081 million)
§ Return on equity after tax: 12.4% (11.2%)
§ Earnings per share: NOK 5.32 (NOK 5.42)
§ The Board proposes a dividend of NOK 1.50 (NOK 1.50) per share.
§ Net interest income: NOK 1,742 million (NOK 1,756 million)
§ Net commission and other operating income: NOK 1,466 million (NOK 1,192 million)
§ Net income from financial investments: NOK 578 million (NOK 319 million)
§ Operating expenses: NOK 1,888 million (NOK 1,633 million)
§ Impairment losses on loans: NOK 137 million (NOK 139 million)
§ Total lending growth over past 12 months: 7.8% (11.2%)
§ Growth in deposits over past 12 months: 5.5% (5.4%)
§ Core capital ratio: 12.1% (10.6%)
§ Core Tier 1 capital: 10.0% (8.3%)
(2011 in brackets)
The level of activity in Rogaland, Hordaland and Agder is high, and the profitability of companies here is good. This indicates a bright outlook for businesses, the people who live and work here, and for SpareBank 1 SR-Bank.
"All the conditions are right for us to take our share of future market growth. We will meet tomorrow's demands and expectations with optimism, a good, broad range of products, efficient operations, and motivated colleagues," says Arne Austreid.
The entire interim report may be downloaded from www.sr-bank.no
Stavanger, 7 February 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.
This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)