Earnings impact on SpareBank 1 SR-Bank
Purchase of Glitnir Bank ASA
In connection with the takeover of Glitnir Bank ASA, now BNbank ASA, SpareBank 1 SR-Bank will recognise a badwill charge of about NOK 400 million in its consolidated accounts for 2008. SpareBank 1 SR-Bank owns 20 per cent of the shares of BNbank ASA.
In connection with the takeover of Glitnir Bank ASA, now BNbank ASA, SpareBank 1 SR-Bank will recognise a badwill charge of about NOK 400 million in its consolidated accounts for 2008. SpareBank 1 SR-Bank owns 20 per cent of the shares of BNbank ASA.
A consortium of SpareBank 1 banks paid NOK 300 million for BNbank ASA in December 2008.
Badwill appears as the result of the assessed value of BNBank ASA as at 31 December 2008 less purchase price.
SpareBank 1 Gruppen to post loss
SpareBank 1 Gruppen, of which SpareBank 1 SR-Bank owns 19.5 per cent, expects to post a loss after taxes in 2008 of between NOK 600 and 800 million. The entire loss relates to the SpareBank 1 Livsforsikring subsidiary. All other subsidiaries in the Group will post profits for 2008.
See the separate report from SpareBank 1 Gruppen.
Higher provisions for losses
The total loss provisions in 2008 will be about NOK 375 million after the assessment for the need for higher specified loss and group provisions.
The Group's pretax profit is expected to be between NOK 600 and 700 million.
SpareBank 1 SR-Bank will publish preliminary accounts for 2008 on Friday 13 February 2009.
Stavanger, 16 January 2009
Contact person in SpareBank 1 SR-Bank:
Managing Director Terje Vareberg, phone +47 911 00448