A result with good underlying operations, growth and positive development for business

SpareBank 1 SR-Bank ASA achieved a pre-tax profit of NOK 921 million for the first quarter of 2022, compared with NOK 880 million for the same quarter in 2021. Good underlying operations, growth and positive development for the business sector contributed to the results.

“We have had a good start to the year with overall lending growth of 5.6% and 7% growth in other operating income. We are also seeing our ventures in market areas outside Rogaland produce results, with 51% growth in Oslo and Viken in the last 2 years. Our stronger focus on SpareBank 1 SR-Bank ForretningsPartner gives the Group greater breadth in our expertise and in our presence in southern Norway,” says Benedicte Schilbred Fasmer, CEO of SpareBank 1 SR-Bank.

The Group’s net interest income for the first quarter of 2022 amounted to NOK 1,009 million, compared with NOK 995 million in the first quarter of 2021. Net interest income was affected by lower lending margins due to rising market interest rates in the past year. The negative effect was offset to some extent by the increased lending volume and improved deposit margins.

The return on equity after tax for the first quarter of 2022 was 11.4%, compared with 11.6% for the same period last year.

Net impairment provisions on loans and financial liabilities amounted to NOK 15 million in the first quarter of 2022, a reduction of NOK 106 million from the first quarter of 2021, which was affected by the pandemic.

Operating costs for the first quarter were NOK 695 million, up from NOK 612 million for the same quarter in 2021. Much of the increase was tied to SpareBank 1 SR-Bank ForretningsPartner’s acquisition of Tveit Regnskap in April 2021.

The war in Ukraine has affected some parts of the business sector in the form of higher commodity prices and transport costs, shortages of some raw materials and reduced revenue. Very few of SpareBank 1 SR-Bank’s customers are directly exposed, and the business sector is well equipped to deal with the challenges.

“Despite the deeply tragic backdrop, seeing corporate customers deliver good results is a welcome sight. Unemployment is low and the sectors that have faced challenges are seeing activity pick up again. The Norwegian economy is at a higher level than before the pandemic, which now appears to be behind us. The uncertainty has increased internationally, and we are monitoring corporate customers in order maintain the loan portfolio’s good risk profile,” says Benedicte Schilbred Fasmer.

Q1 2022

• Pre-tax profit: NOK 921 million (NOK 880 million)
• Net profit for the quarter: NOK 753 million (NOK 718 million)
• Return on equity after tax: 11.4% (11.6%)
• Earnings per share: NOK 2.87 (NOK 2.74)
• Net interest income: NOK 1,009 million (NOK 995 million)
• Net commissions and other operating income: NOK 430 million (NOK 402 million)
• Net income from financial investments: NOK 192 million (NOK 216 million)
• Operating costs: NOK 695 million (NOK 612 million)
• Impairment provisions on loans and financial liabilities: NOK 15 million (NOK 121 million)
• Total lending growth over past 12 months: 5.6% (2.3%)
• Growth in deposits over past 12 months: 10.8% (21.4%)
• Common Equity Tier 1 capital ratio: 17.6% (18.1%)
• Capital ratio: 20.7% (21.5%)
  (Q1 2021 in brackets)
   

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

Stavanger, 5 May 2022

Contact people:

Benedicte Schilbred Fasmer, Group CEO, Tel. +47 950 60 034

Inge Reinertsen, Chief Financial Officer, Tel. +47 909 95 033

Stian Helgøy, Vice President 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.