Main features for the Group (amounts and percentages in brackets refer to 2006):

Pre-tax operating result: NOK 900 million (NOK 972 million)

After-tax return on equity capital:  18.6 per cent (24.5%)

Earnings per PCC (Primary Capital Certificate) (Parent Bank):  NOK 10.00 (NOK  14.03)

A very good result for SpareBank 1 Gruppen AS.  The Bank's share of the company's result amounts to NOK 229 million (NOK 189 million).

Losses on loans:  NOK 17 million (in 2006, NOK 43 million was credited to the profit and loss account)

Overall cost ratio:  51.0 per cent (49.5%)

Lending growth, including Boligkreditt):  13.6 per cent (11.0%)

               o  Retail banking market:  12.3 % (including Boligkreditt)

               o  Corporate market:  16.3 per cent

Deposit growth:  15.3 per cent (9.6%)

Deposit coverage ratio:  63.8 per cent (60.1%)

Proposed cash dividend:  NOK 9.50 per PCC

NOK 83 million has been set aside for the Donations Fund

 

 

"We believe that people in our region consider it important that there is a local bank which concentrates on Nord-Norge and the challenges here," says Hans Olav Karde, Chief Executive Officer of SpareBank 1 Nord-Norge, in connection with the presentation of the Bank's preliminary result for 2007.

 

Karde points out that good banking operations, coupled with a strong economic situation in the region in 2007, are the two most important reasons for the Bank's good result.

 

SpareBank 1 Nord-Norge's core operations before credit losses showed significant improvement in 2007, overall results having increased by NOK 88 million. The SpareBank 1 Gruppen AS's result for 2007 also contributed to the Bank's good overall result.

 

"Although we have 81 branches throughout Nord-Norge, we are managing to conduct our banking operations effectively.  This is necessary in order for us to be able to provide good products and services for our customers and in order to produce good results.  The Bank and the region are always linked to each other in many different ways and this is also reflected in our result," Karde explains.

 

SpareBank 1 Nord-Norge enjoyed very good deposit- and lending growth in 2007.  Lending growth during the last 12 months (including loans transferred to SpareBank 1 Boligkreditt) amounted to 13.6 per cent, up from 11 per cent the year before.  The retail banking- and corporate sectors grew by 12.3 and 16.3 per cent respectively.  Deposits were up by 15.3, as against 9.6 per cent in 2006.

 

Although the figures now presented are good, the overall result for 2007 is influenced by the turbulence in the financial and credit markets during the autumn of 2007.  This has triggered a charge to the profit and loss account in respect of unrealised losses on the Bank's bond portfolio and on the Bank's strategic equity stakes in Hurtigruten ASA and Helgeland Sparebank.  This is the direct reason why the pre-tax operating result for 2007 ended up NOK 72 million lower than in 2006.

 

In 2007, the SpareBank 1 Nord-Norge Group achieved the most important strategic goals

fixed by its main Board of Directors in relation to core capital coverage, return on equity capital and overall effectiveness.  The main Board of Directors is very pleased with the result for 2007. 

 

The Board of Directors wishes to continue the Bank's corporate responsibility in the form of financial support for various projects and causes within the knowledge-related and cultural sectors in the region.  In this connection, it has been proposed to set aside NOK 83 million to the Donations Fund.

 

More detailed information relating to the Group's operations can be found in the attached reports.

 

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.co

 

 

SpareBank 1 Nord-Norge is a leading provider of financial products and services to the retail banking- and corporate markets and to the public sector in the region.  The Bank has an aggregate customer base of some 245,000 retail banking customers, about 40,500 corporate customers, including public sector entities, clubs and associations, and approximately 98,000 insurance product customers.  The Bank has 81 branches in Finnmark, Troms, Nordland and on Svalbard (Spitzbergen), and a representative office in Murmansk, Russia.

 

 

Tromso, 6 February 2008

For and on behalf of SpareBank 1 Nord-Norge

 

Kjell Kolbeinsen

Director, Information and Public Relations