Improved result from underlying operations
The result of the underlying operations in SpareBank 1 SR-Bank group improved by 30 per cent in the first half of 2008 compared to the same period last year.
"The operation reports good result yet again. We have managed to increase interest income despite heavy pressure over a long period of time. The retail market and the corporate market have recorded significant increases in lending and in deposits. I am also very satisfied with the results of SR-Finans and Eiendomsmegler 1", says Terje Vareberg, Chief Executive of SpareBank 1 SR-Bank.
The leading financial group in the south and west of Norway returned a profit of NOK 521 million in the first half of 2008, a decline of NOK 123 million compared to 2007. The decline can in its entirety be attributed to lower returns on investment securities.
"The good result again confirms that the group's business model, giving it several legs to stand on, provides a sturdiness that can withstand the unrest in the international financial markets. We are not solely and simply dependent on a few business areas in order to return good results", says Terje Vareberg.
Key figures for the first half of 2008:
§ Group profit before tax: NOK 521 million (NOK 644 million).
§ Return on equity after tax: 13.2 % (21.7 %).
§ Result of underlying operations before tax: NOK 545 million (NOK 419 million).
§ Net interest income: NOK 771 million (NOK 605 million).
§ Net commission and other income: NOK 421 million (NOK 408 million).
§ Net return on investment securities: NOK 74 million (NOK 250 million).
§ Growth in loans: 20.0 % (29.5 %) last 12 months, which breaks down into RM 13.6 % and CM 30.2 %.
§ Growth in deposits: 17.9 % (16.8 %) last 12 months, which breaks down into RM 11.9 % and BM 22.7 %
§ Earnings per primary capital certificate: NOK 2.99 (NOK 4.26).
Seen in isolation the result for the 2nd quarter was extremely good with profit before tax of NOK 335 million (NOK 357 million). The profit after tax was NOK 253 million (NOK 288 million) and the return on equity was 17.4%.
The full report can be downloaded from the following link: www.sr-bank.no.
Contacts:
Terje Vareberg, Chief Executive Officer
Telephone: + 4751 50 95 53/+ 47 911 00448
Lisbet K. Nærø, Chief Financial Officer
Telephone: + 47 51 50 95 61/+ 47 952 65 960
Thor-Christian Haugland, Executive Vice President, Communications and Public Relations
Telephone: + 47 51 50 92 81/+ 47 480 31 633