SpareBank 1 Nord-Norge - Financial results for 2010
Very good results with a profit of NOK 1 billion
The accounts that are presented today show a profit before tax of NOK 1,002 million.
SpareBank 1 Nord-Norge strengthened its market position in Northern Norway and its market share for retail market lending throughout 2009 and 2010. There has been significant growth in deposits of 12.9 per cent over the last 12 months. Despite a very large customer base of 280,500 customers, the bank had a net increase of 4,766 customers during 2010.
The bank's focus on the public sector has also shown good results. Several large new customers have contributed to extremely high growth in deposits in the public sector of 22.3 per cent. The Brønnøysund Register Centre, Norwegian National Collection Agency, University of Nordland and Norwegian Defence Estates Agency are some of the government agencies the bank has won through competitive tendering.
- Competence, good solutions and good terms have been decisive for the bank's ability to strengthen its position in the market, says CEO Hans Olav Karde.
The group's core operations remain strong and show a profit before losses of NOK 685 million, which is an improvement of NOK 22 million over 2009. The losses are at a low level, with net losses of NOK 87 million, which is NOK 98 million lower than the previous year.
The bank is financially sound with a core capital adequacy ratio of 10.9 per cent.
The combined profit attributable to the group's subsidiaries was NOK 82 million before tax, which is a significant improvement compared with 2009.
- We are very satisfied and our employees have reason to be proud of the results we are presenting today. Our advisers have been more active in the market and met with more retail and corporate customers than ever before. In addition, our advisers are in the final phase of a demanding competence boost that will further improve the customers' perception of SpareBank1 Nord-Norge as an adviser bank, says Karde.
In September 2010 SpareBank 1 Nord-Norge started banking operations in Russia through the North-West 1 Alliance Bank with branch offices in Murmansk and St. Petersburg.
The bank's Main Board of Directors proposes the payment of a dividend of NOK 5.75 per equity certificate to the Supervisory Board. In addition, the transfer of NOK 300 million from the bank's equalisation reserve to the equity certificate capital is proposed. This entails the issuance of 5,970,691 new equity certificates with a nominal value of NOK 50, with 3 old equity certificates giving entitlement to one new equity certificate. A split of the bank's equity certificates is also proposed after the bonus issue so that the new nominal value will be NOK 25.
SpareBank 1 Nord-Norge can point out with its vision of "For Northern Norway" that around 90 per cent of its profits remain in the region. The bank has 74 branch offices in Northern Norway and Svalbard.
Key accounting figures (see page 1 of the enclosed memorandum). Any questions may be directed to CEO Hans Olav Karde, tel. +47 901 51 981 or Deputy CEO Oddmund Åsen, tel. +47 906 72 757. See also the bank's website at www.snn.no.
Tromsø, 9 February 2011
for SpareBank 1 Nord-Norge
Stig-Arne Engen
Director of Communications
About SpareBank 1 Nord-Norge:
SpareBank 1 Nord-Norge is a leading provider of financial products and services within the retail banking and corporate banking markets and public sector throughout the region. The Bank has a total customer base of around 244,000 retail banking customers, around 36,500 corporate customers, including public sector agencies, clubs and associations, and around 101,000 insurance customers. The Bank has 74 branch offices in Finnmark, Troms, Nordland and Svalbard.
In September 2010, SpareBank 1 Nord-Norge established banking operations in Russia through North-West 1 Alliance Bank. SpareBank 1 Nord-Norge holds a 75 per cent ownership interest in the bank, while the remaining 25 per cent of the shares is owned by SpareBank 1 Nord-Norge's Russian partner Bank Tavrichesky in St. Petersburg. The new bank is headquartered in St. Petersburg and has a branch office in Murmansk.
This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)