3.Quarter - 2001
The SpareBank 1 SR-Bank group achieved a profit before tax of NOK 308 million in the third quarter. The result is marked by the drop in prices of securities, and is NOK 248 million lower than for the corresponding period last year. The profit for 2000 also included the gain from the sale of shares in Fellesdata ASA (NOK 177 million), issue gains (NOK 26 million) and cost allocations (NOK 35 million). The profit from the underlying operations has increased by NOK 41 million compared with last year. The group's return on equity capital after tax is at 10.8 %.
* Complete pressrelease with report and figures follows as attachment:
The bank's portfolio of shares and primary capital certificates has so far suffered a loss of NOK 25 million, compared with a capital gain of NOK 42 million last year. In addition, we have posted a negative contribution to the result of NOK 41.6 million NOK from the SpareBank 1 group, mainly due to the development in the stock markets.
The group's ordinary operations show stabilized interest margins and good growth in other operating income, especially from securities, insurance and real estate services. Net losses so far amount to NOK 90 million, approximately the same as for last year. Defaulted liabilities are more or less stable in relation to the total loans.
The 12-month growth in lending has been reduced from 20 % at the beginning of the year to 13 % in accordance with the adopted plans. Deposits remain relatively stable, with a 12-month growth as of the third quarter of 8 %.
Other operating income
The group's net commission income amounted to NOK 189 million at the end of the third quarter, an increase of NOK 56 million compared with the same period last year. Commission income from securities and insurance has increased by 46 % and 238 % respectively, to NOK 38 million and NOK 35 million.
The increase in the income from securities is a result of the bank's increased emphasis on investments. The focus on insurance has resulted in gradually higher insurance income for this year. Increased income from EiendomsMegler 1 Rogaland AS as well as gains on sale of buildings in the amount of NOK 3 million, has contributed to an increase in other operating income of NOK 22 million compared with last year.
As of the third quarter of 2001, the bank has posted a share of the deficit in SpareBank 1 Gruppen AS amounting to NOK 41.6 million. The corresponding figure for the same period in 2000 was a deficit of NOK 1.5 million. The main reason for the poor result in SpareBank 1 Gruppen is the development in the stock markets, which has been particularly negative for the life insurance activities. SpareBank 1 Gruppen has also amortized a considerable amount of goodwill associated with the acquisition of VÅR Gruppen in the profit and loss account.
Operating costs
The operating costs for the group amounted to NOK 573 million so far this year. Compared with the total assets, this constituted 1.69 % compared with 1.76 % for the corresponding period last year.
The average figure for man-years has increased from 692 as of 30 September 2000 to 791 as of 30 September 2001. The increase is mainly due to the integration of Vår/Varde employees as of 1 January 2001, as well as expansion in EiendomsMegler 1 Rogaland AS.
The group emphasizes continued high cost-effectiveness. This is reflected in programs that have been implemented to cut costs and develop the organization. Reorganization measures in the bank will result in 35 people leaving during 2001 and 2002.
Market development
SpareBank 1 SR-Bank is the market leader both within the private market and the business market in Rogaland. In the Agder counties we now have bank branches in Kristiansand, Mandal, Flekkefjord and Sirdal. We will also open branches in Lyngdal and Arendal.
The growth in Internet Bank customers continues, and we now have more than 50,000 customers that use the Internet Bank. We are in the process of introducing the e-invoice. E-invoices will make it easier to receive and pay bills. The customer will be able to receive bills directly through the Internet Bank rather than through the mail.
Outlook for the future
The market outlook for industry and commerce is more uncertain than in a long time, mainly as a consequence of the international downturn and the international threat of terror. However, the underlying banking operations give the Board reason to expect satisfactory profit performance for the rest of the year.
* For complete pressrelease with report and figures, please follow the link:
Stavanger, 29 October 2001 <br> <br> <br>The Board of Sparebanken Rogaland