SpareBank 1 Nord-Norge today presents its interim accounts for the first 6 months of the year. The Group's operating result, after credit losses, but before tax, totalled NOK 128 million for the first half of the year. The corresponding figure 12 months ago was NOK 242 million.  The result is affected by the economic downturn both within the Bank's region and in the rest of the country. The change in the result is primarily ascribable to a NOK 107 million reduction in income from securities, coupled with a NOK 33 million increase in net loan losses.

 

Net income derived from the sale of other products and services continues to develop in a very satisfactory manner.  Revenue generation from the Bank's payment transmission services accounts for the largest part of other commissions, whereas earnings from the sale of insurance products are still increasing.

 

In the second quarter, NOK 10 million was set aside for restructuring measures to be implemented during the second half of this year.  The Bank aims to reduce overall manning levels be 100 man-years by 31.12.2003.

 

Deposits and loans within the retail banking area posted satisfactory growth.  In view of developments within certain industrial and commercial sectors, a number of measures have been implemented in order to reduce/limit the Bank's overall risk exposure within the corporate market.

 

Against the background of the Bank's overall performance during the first 6 months, the main Board of Directors expects results to develop in a stable manner for the remainder of the year.

 

 

 

Any questions in this connection should be directed to Hans Olav Karde, Managing Director, telephone number: 77 62 24 01, or Oddmund Aasen, Deputy Managing Director, telephone number: 77 62 20 94.

 

Tromso, 8 August 2003

 

 

Kjell Kolbeinsen  

Head of Information and Public Relations Department