"The trend from earlier this year is confirmed by the results at the end of the third quarter.  As a Bank, our results are linked to the general economic situation in our region.  When the region does well, so does the Bank.  We have the largest network of distribution in Nord-Norge and have a presence wherever things happen.  This is currently reflected in the Bank's good results.  In addition, we are continuing to focus on overall costs, and these efforts too are having a beneficial impact on our overall results, " says Hans Olav Karde, Chief Executive Officer of SpareBank 1 Nord-Norge.

 

Good general economic conditions also mean a lower level of credit losses.  Reduced write-downs have produced a net income of NOK 11 million so far this year, as opposed to a total net loss of NOK 44 million for the corresponding interim period last year.

 

During the last 12 months, loans expanded by 10.6 per cent, retail banking and corporate banking up by 13.4 and 5.6 per cent respectively.  During the same period, deposits grew by 7.2 per cent.  The overall interest margin narrowed by 0.28 percentage point compared with the same time last year.  The shrinkage in the average interest margin is attributable to continued, strong competition within the Bank's market area, coupled with an improvement in the overall credit risk in the market. However, the negative impact of the shrinkage in the average interest margin has been compensated for by higher lending volumes.

 

The after-tax return on equity capital amounted to 19.53 per cent. 

Earnings per PCC totalled NOK 13.40.

 

The main Board of Directors is very pleased with the Group's result for the first 9 months of 2006. Growth in Group revenue generation and more cost-effective operations will continue to be two prioritised areas. 

 

More details relating to the Group's operations can be found in the attached financial information.

 

Any questions in this connection should be directed to Hans Olav Karde, Chief Executive Officer, telephone number: 77 62 24 01, or Oddmund Aasen, Deputy Chief Executive Officer, telephone number: 77 62 20 94.

 

We would also refer to the Bank's home page:  www.snn.com 

 

 

Tromso, 31 October 2006

For and on behalf of Sparebanken Nord-Norge

 

Leif-Arne Kristiansen

Manager, Information and Public Relations

 

 

The full report including tables, as well as the presentation, can be downloaded from the following links: