SpareBank 1 Nord-Norge: Good annual result for 2011
SpareBank 1 Nord-Norge delivered a good annual result for 2011 with an operating profit before tax of NOK 774 million.
"Underlying banking operations are good and our solvency is very good," says CEO Hans Olav Karde of SpareBank 1 Nord-Norge.
"SpareBank 1 Nord-Norge's sails are full as 2012 starts and it has experienced loans growth of 7.4 percent in the past 12 months. This highlights the optimism of the region and the higher level of activity in both the corporate market and the retail market. Many people are also choosing to save more and the bank has seen good growth in deposits of 6 percent and has a deposit coverage ratio of 80.9 percent," says Karde.
Operating profit before tax for 2011 totalled NOK 774 million, compared with NOK 1,002 million in 2010. In Q4 the Group carried out a writedown of unrealised capital gains on shares in the company FrontX of NOK 128 million. The Group's core operations remain good and show a profit before losses of NOK 600 million. This is NOK 25 million lower than for 2010 after corrections for income recognition of the transition to the new contractual pension (AFP) scheme. The return on equity capital was 9.9 percent, compared with 15.3 percent in 2010.
"The bank's solvency is very good and the Group's core capital adequacy was 11.8 percent and its total capital adequacy was 12.7 percent. SpareBank 1 Nord-Norge also satisfies, as per 31 December 2011, the new, stricter core capital adequacy requirements set by the Norwegian authorities that will come into effect on 30 June 2012," says Karde.
"We are very pleased and the bank's staff has reason to be proud of the result for 2011. The activity in the market has been high and we are starting 2012 with a lot of activity in both the corporate and retail markets. In 2011, our advisers completed demanding training to improve their skills, which will improve the customer's perception of SpareBank 1 Nord-Norge as a good bank for advice," says Karde.
The bank's Main Board of Directors proposes to the Supervisory Board that a dividend amounting to NOK 1.40 per equity certificate be paid. It also proposes that NOK 111.5 million be allocated to the bank's equalisation fund and NOK 146.6 million to dividends for the bank's community-owned capital.
SpareBank 1 Nord-Norge's vision is "For Northern Norway". The bank contributes to social development in many areas in the region and around 90 percent of the bank's result remains in Northern Norway. The bank has 74 offices in Northern Norway and on Svalbard.
Key figures from the accounts (see attached note page 1). 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. Please also see the Bank's website at www.snn.no.
Tromsø, 8 February 2012
for SpareBank 1 for 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 75percent ownership interest in the bank, whilst the remaining 25percent of the shares are owned by SpareBank 1 Nord-Norge's Russian partner Bank Tavrichesky in St. Petersburg. The new bank's head office will be in St. Petersburg and it will have a branch in Murmansk.
This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)