SpareBank 1 Nord-Norge today presents its interim report and accounts for the first half of 2005.  The Group's operating result, after credit losses, but before tax, totalled NOK 316 million, up by NOK 35 million or more than 12 per cent up on the corresponding interim period last year. 

 

Credit losses for the first half of the year totalled NOK 25 million, down from NOK 100 million 12 months ago.  Lower credit losses represent a significant contribution to the improved result compared with the first half of 2004.

 

During the second quarter, the Bank has had particular focus on lending growth.  So far, this has produced good results, with a 4.1 per cent growth rate for this quarter (equivalent to an annual rate of growth of 16.4 per cent).

 

The main Board of Directors is very pleased with the result for the first half of 2005.  It is particularly encouraging that the efforts aimed at achieving increased, but justifiable and reasonable lending growth have been producing good results.  The Bank will continue its work to reduce credit risk within certain commercial and industrial sectors.  In the immediate future, continued, strong efforts will also be made in order to boost revenue generation for the Group as a whole, and to bring about more cost-effective operations overall.  The Bank will try to achieve this improvement by increasing the level of risk-free income through the sale of other products and services, coupled with increased growth within the lending area and reduced costs.

 

More details relating to the Group's various operational areas can be found in the attached financial information.