SpareBank 1 Nord-Norge - Accounts as at 3rd quarter 2011

Very good results at the end of the 3rd quarter of 2011

SpareBank 1 Nord-Norge is posting a very good result at the end of the 3rd quarter of 2011.

"There is optimism among business and industry in the region, which has resulted in a greater demand for loans.  With the exception of the export industry in North Norway, the region is essentially impacted only to a limited extent by the uncertain international situation. This is reflected in the bank's profits for the third quarter," says CEO Hans Olav Karde. 

The bank's operating profit before tax at the end of the 3rd quarter of 2011 amounted to NOK 767 million, compared to NOK 760 million the same period last year. The deposit-to-loan ratio was 80.0 %, as against 73.9 % in 2010. SpareBank 1 Nord-Norge continues to have satisfactory liquidity. Return on equity after tax is slightly weaker than at the same period last year, ending at 13.8 % (compared to 15.5 % in 2010). Earnings per equity certificate (Group) were NOK 3.70.

Deposits were good in the third quarter. The Group's deposits from customers totalled NOK 41,952 million as at 30 September 2011. The increase over the last 12 months was NOK 4,649 million or 12.5 %. Deposits increased 6.3 % in the retail market, 35.6 % in the public sector market and 7.9 % in the corporate market.

The Group's gross lending to customers, including loans transferred to SpareBank 1 Boligkreditt, increased by 6.4 % compared with 30 September 2010.

"After a period of relatively low demand for loans, particularly within the corporate market, we are now seeing greater optimism in the region's business community. This has resulted in greater lending growth within the corporate market. The Executive Board sustains its ambitions for lending growth and increased market shares," says Karde.

Underlying banking operations are good with a profit from core operations, after losses, of NOK 469 million. Combined profit before tax for the Group's subsidiaries totalled NOK 236 million. The Group's net losses on loans at the end of the 3rd quarter of 2011 are still low and totalled NOK 48 million. The net losses are divided between NOK 39 million from the corporate market and NOK 9 million from the retail market. Net losses for the 3rd quarter in isolation totalled NOK 23 million. The Main Board of Directors believes that the loss level will remain low in the near future.

"Although the result for the 3rd quarter is very good, continuing economic uncertainty may, however, lead to lower consumer spending and the postponement of investments in North Norway as well. We expect strong competition to keep the Bank's interest margin under pressure. It is therefore important to stay focused on the bank's costs both within distribution and staffing," says Karde.

Key figures from the accounts appear on page one of the memorandum attached. Any questions may be directed to CEO Hans Olav Karde, tel. 0047 901 51 981 or Deputy CEO Oddmund Åsen, tel. 0047 906 72 757. Also see the bank's website www.snn.no

Tromsø, 26 October 2011
for SpareBank 1 for Nord-Norge

Stig-Arne Engen
Communications Director

About SpareBank 1 Nord-Norge: SpareBank 1 Nord-Norge is a leading provider of financial services and products to the personal and business market and the public sector in the region. The bank has a total customer base of about 244,000 personal customers, about 36,500 business customers including the public sector, groups and associations and about 101,000 insurance customers. The bank is represented through 74 offices in Finnmark, Troms, Nordland and Svalbard.
In September 2010, SpareBank 1 Nord-Norge commenced banking operations in Russia through the North-West 1 Alliance Bank.  The bank is 75 per cent owned by SpareBank 1 Nord-Norge, while the other 25 per cent of the shares are owned by SpareBank 1 Nord-Norge's Russian partner Bank Tavrichesky in St. Petersburg.  The head office of the new bank is located in St. Petersburg with a branch office in Murmansk. 

This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.