SpareBank 1 Nord-Norge, financial statements for the third quarter and first nine months of 2010: Once again very good results and a strong financial position
SpareBank 1 Nord-Norge reported an operating profit for the first nine months of 2010 of NOK 760 million after losses but before tax. This is represents an improvement of NOK 89 million compared to the same period last year. The good performance reflects an improvement in underlying banking operations, in spite of a highly competitive market. Reduced loan losses made a significant contribution to the increase in operating profit. There were also positive contributions from the Bank's subsidiaries and the joint venture companies in the SpareBank 1 alliance, and not least from financial investments.
"The financial accounts of companies in northern Norway reveal that 2009 was a good and positive year, which is also reflected in the retail banking market. Low default rates both in the retail and corporate markets confirm the impression," says CEO Hans Olav Karde. This sense of optimism is also resulting in strong lending growth in both markets.
Increasing numbers of customers are using electronic services in their dealings with the Bank. In 2010 there was particularly strong growth in the use of mobile phones. Staff at the Bank have made a considerable effort to encourage customers to start using their mobile phones in their dealings with the Bank. In the month of September alone, the Bank sent 116,000 SMS (text messages) to its customers. The Bank's online loan business is also growing.
The financial figures demonstrate that SpareBank 1 Nord-Norge is a very well-run bank, with good liquidity (deposit-to-loan ratio of 73.9 per cent), a solid financial position (core capital adequacy ratio of 9.8 per cent) and highly efficient operations (cost-to-income ratio of 45.9 per cent).
The return on equity after tax remains high, and as of Q3 it was 15.5 per cent, compared to 15.8 per cent at the same time in 2009.
The Main Board of Directors consider the quarterly results to be very good.
For further details of our financial performance, please refer to the interim report for Q3 2010.
Reference is also made to the Bank's website at www.snn.no.
Please direct any questions to CEO Hans Olav Karde, tel. +47 90 15 19 81 or Deputy CEO Oddmund Åsen, tel. +47 90 67 27 57.
Tromsø, 27 October 2010
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 throughout the region. The bank has a total customer base of some 244,000 retail banking customers, approximately 36,500 corporate customers including the public sector, organisations and associations, as well as around 101,000 insurance customers. The Bank has 74 branches in Finnmark, Troms, Nordland and on 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, whilst the remaining 25 per cent of the shares are 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 in Murmansk.
This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act).