SpareBank 1 Nord-Norge continues to produce good results. The Bank today presents itsresult for the first 6months of 2006, a NOK 377 million profit after credit losses, but before tax. This is an improvement of NOK 70 million or 23 per cent compared with the same interim period last year. Aggregate assets expanded by NOK 6,840 million (15.3 per cent) to NOK 51,496 million, exceeding NOK 50 billion for the first time.

 

The good result is due to increased sales of pension- and savings products, low credit losses, good overall cost control, coupled with a strong improvement in the subsidiaries' results. The Bank's share of the good half-year result from SpareBank 1 Gruppen AS represented another positive contribution.

 

Committed staff throughout the SpareBank 1 Nord-Norge Group are making a big and important overall effort. Lower levels of credit risk in the market are ascribable to private households' strong financial position and to the fact that commerce and industry within the Bank's region are doing well.

 

During the last 12 months, lending growth totalled 10.3 per cent (the retail banking- and corporate sectors increasing by 14.8 and 2.6 per cent respectively). Deposits grew by 11.2 per cent during the same period (5.4 per cent in the retail banking area and 18.6 per cent for the corporate- and public sectors).

 

The after-tax return on equity capital amounted to 18.14 per cent. Earnings per PCC totalled NOK 10.93.

The main Board of Directors is very pleased with the Group's result for the first 6 months of 2006.

 

More details relating to the Group's various operational areas 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.no

 

 

Tromso, 9 August 2006

For and on behalf of Sparebanken Nord-Norge

 

Kjell Kolbeinsen

Director, Information and Public Relations