A good result characterised by growth, increased income and reversed impairment provisions

SpareBank 1 SR-Bank ASA (SRBNK) achieved a pre-tax profit of NOK 1,021 million in the second quarter of 2022, compared with NOK 959 million for the same period last year. The return on equity after tax for the quarter was 12.0%.

High lending growth, increased net interest income and reversed impairment provisions lead to the good result. The group had a total lending growth of 7.6% in the past 12 months. There was significant growth in the retail market (6.1%), in the corporate market (10.7%) and SME & agriculture (8.5%), where positive development in the business sector contributed to the result.

Growth was greatest in Oslo and Viken, and Vestland, Rogaland and Agder also saw growth.

“Our customers appreciate the follow-up they receive from our advisers, good digital solutions and competitive terms and conditions. This has yielded results, with growth in all of our market areas. I am particularly pleased with our success in the Oslo region, which is strategically important for our diversification within both industries and geography,” says Benedicte Schilbred Fasmer, CEO of SpareBank 1 SR-Bank.

Net interest income was NOK 1,101 million in the quarter, an increase of NOK 100 million from the second quarter of 2021. The increase was mainly due to increased lending volumes, improved interest margins and better returns on equity due to higher interest rates.

The Norwegian economy continued to perform well in the second quarter, even though high inflation led to higher costs for consumers and enterprises. As a result, the group was able to reverse impairment provisions on loans and financial liabilities by a net NOK 52 million in the second quarter. In the same period in 2021, impairment provisions amounted to NOK 58 million.

Net income from financial investments amounted to NOK 104 million, down from NOK 243 million in the second quarter last year. The high inflation rate and pressures on economies and value chains created turmoil in the financial markets. A weaker result from SpareBank 1 Gruppen AS also contributed to the reduction.

Increased activity contributed to operating costs of NOK 702 million in the second quarter, up from NOK 681 million last year. In the first half of 2022, the group’s cost/income ratio was 42.3% (39.1%).

“At the end of the quarter we entered into a new and exciting partnership with Swedbank. We are also strengthening our focus on capital markets through SpareBank 1 Markets. Assuming that we receive the necessary approvals from the authorities, these two initiatives will contribute to an even stronger offer for customers and a solid platform for further growth,” says Benedicte Schilbred Fasmer.

Q2 2022

• Pre-tax profit: NOK 1,021 million (NOK 959 million)
• Net profit for the quarter: NOK 796 million (NOK 816 million)
• Return on equity after tax: 12.0% (13.2%)
• Earnings per share: NOK 3.03 (NOK 3.13)
• Net interest income: NOK 1,101 million (NOK 1,001 million)
• Net commissions and other operating income: NOK 466 million (NOK 454 million)
• Net income from financial investments: NOK 104 million (NOK 243 million)
• Operating costs: NOK 702 million (NOK 681 million)
• Impairment provisions on loans and financial liabilities: NOK -52 million (NOK 58 million)
  (Q2 2021 in brackets)

The full interim report is available for download from www.sr-bank.no.

Stavanger, 11 August 2022

Contact people:
Benedicte Schilbred Fasmer, CEO, Tel. +47 950 60 034 
Inge Reinertsen, CFO, Tel. +47 909 95 033
Stian Helgøy, Director of Investor Relations – Tel.: +47 906 52 173
Øyvind Knoph Askeland, Director of Communications, Tel. +47 922 32 639

This information is disclosed in compliance with section 5-1 of the Securities Trading Act.