SpareBank 1 Nord-Norge - Financial results for 2009
All-time record with profit of NOK 1 billion
SpareBank 1 Nord-Norge today presents its preliminary accounts, showing a pre-tax operating result of NOK 1,002 million. Compared with last year, the profit has been doubled.
This is the first time in the bank's history that the accounts show an operating result in excess of NOK 1 billion.
"We are very satisfied and our employees have every reason to be proud of the result that we are presenting today", says Hans Olav Karde, the bank's chief executive.
"For many years, SpareBank 1 Nord-Norge has purposely built up reserves in order to be a solid bank. When the financial crisis struck the country in 2008, the bank had sufficient financial strength not being forced to sell off a major part of its securities portfolio", says Karde.
"In 2009, we were able to write up the value of these securities, contributing to the positive result we now see", he states.
SpareBank 1 Nord Norge's chief executive adds that: "Another positive factor is that the region has been less affected by the financial crisis than many feared".
The figures show that the result of the core banking activities, in other words the customer-related business, was somewhat lower in 2009 than in 2008. In 2009, losses on loans were at the same level as in the preceding year.
SpareBank 1 Nord-Norge, with its vision "For North Norge", can show, through its accounts for 2009, that 90 per cent of the profit remains in the region.
The main Board of Directors considers the result to be very good and sums up 2009 as a year that proved to be less turbulent than expected. The measures that were implemented had the desired effects. In addition, the industrial structure in the North of Norway is such that declining international demand has no major impact in the short term.
The economic outlook for 2010 appears to be satisfactory. For the SpareBank 1 Nord-Norge Group it is realistic to anticipate significant growth in the retail market, whilst growth in the corporate market is expected to be moderate. The number of customers experiencing difficulties in servicing their financial obligations is not expected to rise. For the bank, 2010 as a whole is expected to develop in a satisfactory manner
Key figures for the accounts: (see enclosed quarterly report 1). Any questions may be directed to Hans Olav Karde, CEO, telephone 901 51 981, or to Deputy CEO Oddmund Aasen, telephone 906 72 757. Reference is also made to the bank's home page: www.snn.no
Tromsø, 11 February 2010
SpareBank 1 Nord-Norge
Kjell Kolbeinsen
Director, Information and Public Relations
SpareBank 1 Nord-Norge in brief
SpareBank 1 Nord-Norge is a leading provider of financial products and services to the retail and corporate markets and to the public sector in the region. The bank has an aggregate customer base of some 244,000 retail banking customers, about 36,500 corporate customers, including public sector entities, clubs and associations, and approximately 101,000 insurance customers. The bank has 76 branches in Finnmark, Troms, Nordland and on Svalbard (Spitzbergen). SpareBank 1 Nord-Norge has its own representative office in Murmansk and is a shareholder in the Russian bank, Tavrichesky OJSC, headquartered in St. Petersburg.