The capital situation is being strengthened by issues and solid earnings. The group is well positioned for growth.

SpareBank 1 SR-Bank posted a pre-tax profit of NOK 995 million at 30 September 2009. The profit is NOK 362 million higher than the same time last year. Return on equity after tax year-to-date is 16.9 per cent.
 
Pre-tax profit for the third quarter in isolation was NOK 503 million. The return on equity after tax was 25.2 per cent compared with 3.8 per cent the same time last year.
 
"These are solid results backed by sound operations throughout the bank and in our subsidiaries, a positive turn in the securities markets and relatively low losses. It is gratifying to note that the economic performance in Norway and the region is considerably better than we had reason to fear at the start of the year. We are seeing a somewhat brighter outlook for business and optimism in the housing market. The bank's earnings reflect this positive change," says Terje Vareberg, CEO of SpareBank 1 SR-Bank.
 
Key figures at 30 September 2009 (at 30 September 2008 in parentheses):
  • Group profit before tax: NOK 995 million (NOK 633 million). Group profit after tax: NOK 781 million (NOK 447 million)
  • Return on equity after tax: 16.9% (10.0%)
  • Net loan loss provisions: NOK 294 million (NOK 68 million)
  • Net interest income: NOK 1,221 million (NOK 1,213 million)
  • Net commission and other income: NOK 713 million (NOK 620 million)
  • Net return on investment securities: NOK 496 million (NOK -66 million)
  • Growth in lending year-to-date: 4.0%. Growth in lending last 12 months: 8.8% (19.5%)
  • Growth in deposits year-to-date: 1.3%. Growth in deposits last 12 months: -0.3% (10.1%)  
  • Earnings per equity certificate: NOK 4.88 (NOK 2.83)
  • Core capital ratio: 6.9% (7.2%)
 
On 20 October 2009, SpareBank 1 SR-Bank's Supervisory Committee adopted to increase the equity by approximately NOK 1.25 billion in the fourth quarter of 2009. One of the ways this will be accomplished is by private placings of approximately NOK 870 million with Gjensidige Forsikring BA. Gjensidige's ownership stake will then be about 17.3 per cent.
 
 "It is very positive to bring Gjensidige Forsikring BA in as a significant owner of the bank's equity certificates. Gjensidige is a long-term, financially strong owner. This will help to put the group in a good position for growth," says Vareberg, who points out that the bank's core capital adequacy ratio will be about 9.5-10.0 per cent at the end of 2010.
  
 
The entire quarterly report can be downloaded from www.sr-bank.no
 
Stavanger, 22 October 2009
 
Contact persons:
Terje Vareberg, Chief Executive Officer, telephone +47 911 00 448
Erling Øverland, Chief Financial Officer, telephone +47 915 56 542
Thor-Christian Haugland, Executive Vice President Communications, telephone +47 480 316 33.
 

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.