SpareBank 1 Nord-Norge reported an operating result for Q1 2010 of NOK 260 million before tax and after losses. When compared with the same period last year, the company has achieved an improvement of NOK 71 million (27 per cent).

"The result for the first quarter reflects good general operations with efficient services and good cost control. The bank has gained solid earnings in the quarter. As a result of the expected weak rate of growth in the economy, SpareBank 1 Nord-Norge will continue to focus on initiatives to cut costs." CEO Hans Olav Karde further advises that these initiatives may include possible rationalisation measures within the areas of distribution and overall staffing levels. However, the bank also aims to increase its marketing activities.

SpareBank 1 Nord-Norge is recognised as one of the most solid banks in the Nordic countries, with good liquidity and a good deposit-to-loan ration of 73.3 per cent (from 67.0 per cent in the same period last year).  Return on equity is 15.9 per cent (13.5 per cent).

The bank attaches importance to balance sheet growth in terms of deposits and loans alike and on ensuring that the growth in loans does not impair quality. As at 31 March 2010, deposits from customers totalled NOK 35,497 million. Over the last 12 months, deposits increased by NOK 1,419 million or 4.2 per cent. Gross lending to customers totalled NOK 59,872 million (including Boligkreditt - covered bonds company), an increase of 5.2 per cent compared with the same period last year. The bank had a low degree of loss on lending in Q1, at NOK 21 million compared with NOK 53 million in the same period last year.

The good result achieved in the first quarter represents positive contributions from financial investments, commission income, shareholdings in companies associated with the SpareBank 1 alliance in addition to the low degree of loss during the quarter.  Moreover, the level of costs has been impacted by the reversal of pension provisions.

The main Board of Directors describes the quarterly result as excellent, particularly during a period of financial unrest.

For more detailed information on the accounts, ref. the enclosed interim report for Q1 2010.

Any questions in this connection should be directed to Hans Olav Karde, CEO, telephone number: + 47 90 15 19 81, or Oddmund Aasen, Deputy CEO, telephone number:  + 47 90 67 27 57.  Reference is also made to the bank's home page on the Internet:  www.snn.no..

Tromsø, 28 April 2010

SpareBank 1 Nord-Norge

Kjell Kolbeinsen

Director, Information and Public Relations

Some brief background information on SpareBank 1 Nord-Norge

SpareBank 1 Nord-Norge is a leading provider of financial products and services to the retail banking- 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 association, and approximately 101,000 insurance product customers.  The Bank has 75 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, whose head office is located in St. Petersburg.