SpareBank 1 Nord-Norge earns NOK 256 million in the first half of 2004 - Strong improvement in pre-tax operating result
SpareBank 1 Nord-Norge today presents its interim accounts for the first 6 months of the year. The Group's operating result, before tax, but after credit losses, totalled NOK 256 million, double that of the corresponding interim period last year.
The good result is attributable to the following factors:
- increased net interest income
- enhanced revenue generation from the sale of alternative savings-/placement- and insurance products
- reduced operating costs
- lower net losses on loans
- good increase in deposits from customers
- good growth in loans within the retail banking sector
The operating result for the first half of 2004 produced a 15.51 per cent after-tax return on equity capital and NOK 23.08 earnings per Primary Capital Certificate (PCC), recalculated on an annual basis.
Deposits from customers amounted to NOK 23,695 million , after a NOK 2,531 million or 12.0 per cent increase in the last 12 months. Retail banking deposits improved by 8.9 per cent, the corporate and public sectors by 16.5 per cent.
Group loans (gross) totalled NOK 37,941 million at the end of the quarter currently under review, up by NOK 2,852 million or 8.1 per cent on the corresponding interim period last year. Retail banking loans expanded by 16.1 per cent, whereas the corporate and public sectors shrank by 2.1 per cent. Loans made to retail banking customers accounted for 60 per cent of aggregate lending at the end of the quarter.
As at 30.6.2004, Group assets stood at NOK 43,180 million.
The main Board of Directors is very pleased with the result for the first half of 2004. The improvement in the result and the increase in deposits from customers, coupled with the lending growth within the retail banking market, show that the various measures which have been implemented have had the desired impact. Against the background of the Bank's overall performance during the first 6 months of 2004, the main Board of Directors expects results to develop in a satisfactory manner for the remainder of the year.
More details relating to the Group's various operational areas can be found in the attached quarterly report and enclosures.
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, 13 August 2004
For and on behalf of Sparebanken Nord-Norge
Kjell Kolbeinsen
Head of Information and Public Relations Department