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Healthy profit, moderate losses and dampened lending growth for SpareBank 1 SR-Bank

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SpareBank 1 SR-Bank achieved a profit before tax of NOK 395 million in the first quarter of 2010. This is NOK 281 million more than in the first quarter of last year. Return on equity after tax was 14.8 per cent.  


"This is a healthy result that reflects the good development in banking operations. Net interest income is developing in a stable manner and losses are moderate", says Terje Vareberg, SpareBank 1 SR-Bank's Chief Executive Officer.  


"We are continuing to experience low credit demand from the business community. The growth in lending to the retail market is good, due to our continuing to glean market shares in a part of the country that is enjoying good household economy.  The rise in costs in the parent bank is moderate. This is due to measures that were introduced in 2009", says Vareberg.  


Key figures for the first quarter of 2010 (Q1 2009 in parentheses):


  • Profit before tax: NOK 395 million (NOK 114 million) 

  • Profit after tax: NOK 298 million (NOK 81 million) 

  • Return on equity after tax: 14.8% (5.3%)  

  • Net provisions for losses: NOK 69 million (NOK 132 million) 

  • Net interest income: NOK 437 million (NOK 349 million) 

  • Net commission and other income: NOK 260 million (NOK 208 million) 

  • Net return on financial investments: NOK 79 million (NOK 58 million) 

  • Earnings per primary capital certificate: NOK 1.55 (0.50) 

  • Growth in lending (including loans transferred to SpareBank 1 Boligkreditt) last 12 months: 5.8% (15.8%) 

  • Growth in deposits last 12 months: -0.9% (2.5%)   

  • Core capital ratio: 9.4% (6.6%) 


"Norway has been spared the major impacts of the financial crisis.  We are again experiencing a feeling of optimism and we can see clear signs of modest growth in the economy. The Group issued NOK 1.2 billion in equity certificate capital in the autumn of 2009 and is well positioned for further growth and development", concludes CEO Terje Vareberg.


The report in its entirety may be downloaded from www.sr-bank.no


Stavanger, 29 April 2010


For further details, please contact:

Terje Vareberg, Chief Executive Officer, telephone +47 911 00 448

Inger Reinertsen, Chief Financial Officer, telephone +47 909 95 033

Thor-Christian Haugland, Executive Vice President Communications, telephone + 47 480 31 633



This information is disclosed in compliance with section 5-12 of the Securities Trading Act.


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