SR-Bank consolidates it position as the district`s leading bank

Sparebanken Rogaland

SR-Bank consolidates it position as the district's leading bank

* Launching of new savings and insurance products
* Increased focus on savings gives results
- 400 million in sales of securities products
- 140 million in new savings product
- 1000 million in increased customer deposits
* 3.1 billion growth in lending
* Increased degree of automation and commission income
* Strong improvement in cost-effectiveness
* Low non-performance and no net loss
* 18.2% return on equity

The SR-Bank Group 30 September 1997 30 September 1996

Net interest income 501 2.71 493 3.12
Other income 166 0.90 166 1.05
Total income 667 3.61 659 4.17
Operating costs 381 2.06 412 2.61
Result before loss 286 1.55 258 1.57
Loss -9 - 0.05 -25 - 0.16
Profit/loss on ordinary activities 295 1.60 273 1.73

Gross lending 23,721 19,884
Deposits 15,029 13,696
Total assets 26,146 21,962

Good Improvement in Profits in the 3rd Quarter

The group§s result before losses increased in the 3rd quarter by NOK 108 million to NOK 286 million at the end of the 3rd quarter. This is NOK 38 million more than for the same period last year. The profit before tax was NOK 295 million, an increase of NOK 22 million compared with the same period last year. The good result has been achieved as a consequence of good growth, a stabilized margin, increased commission income and a high level of cost-effectiveness. In addition, the group has a net inflow on losses and very low non-performance.

So far this year, the group§s lending has increased by 15.1% to NOK 23.7 billion, which gives an annual growth of 19.3%. The interest margin at the end of September made up 2.71% of the total assets, the same as at the end of the 2nd quarter. For the same period last year, the margin was 3.12%. The growth in new commission income continued also in the 3rd quarter and increased by NOK 44 million to NOK 129 million. So far this year, the net inflow on losses is NOK 11 million, and non-performance has been reduced further.

The operating costs for the group in the first half of the year amounted to NOK 381 million, which constitutes 2.06% measured in relation to the total assets. This is a significant improvement in the bank§s cost-effectiveness, which is the result of good growth in volume, a stable cost level and high utilization of capacity. Nominally, the costs have been reduced by NOK 31 million compared with the same period last year.

The group§s profits give a return on equity after taxes of 18.2%.

The Board of Directors expects a continued positive development for the rest of the year.

ROGG Hugin

About Us

SpareBank 1 SR-Bank is Norway’s second largest savings bank and operates in the Rogaland, Agder and Hordaland markets. We provide financial products and services, including loans and deposits, mutual funds and asset management, insurance and pension savings, payment and financing services, real estate brokerage and services related to the money and capital market. The head office is in Stavanger.