Increase in profit driven by solid growth and low impairment provisions

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SpareBank 1 SR-Bank (SRBNK) posted a pre-tax profit of NOK 1,044 million for the third quarter of 2022. The return on equity after tax for the quarter was 12.5%.

SpareBank 1 SR-Bank’s mission is to create profitable growth by becoming a financial services group for Southern Norway and working closely with people and companies. In the third quarter of 2022, the results were driven by growth and low losses. This helped to ensure that the return on equity was stronger than the long-term target of at least 12%.

The total growth in lending in the past 12 months was 9.4% at the end of the quarter, where gross loans increased to NOK 248 billion, up from NOK 227 billion at the same time last year. The corporate market division (14.8%), SME & Agriculture (11.4%), and Retail Market (6.9%) are seeing high activity and demand for financing from customers.

“We are growing in a sound and healthy manner, with corporate and retail customers who are taking account of the higher costs that are coming. Good banking practice, where our advisers talk to our customers and make long-term plans, are helping to keep impairments low. We will continue to work closely with customers in order to help ensure the best possible development,” says CEO Benedicte Schilbred Fasmer.

Net interest income was NOK 1,115 million in the third quarter, an increase of NOK 123 million compared with the same quarter in 2021. The higher lending volume and return on equity compensated for a lower interest margin.

SpareBank 1 SR-Bank saw low losses again in the third quarter. Impairment provisions on loans and financial liabilities amounted to NOK 6 million, compared with NOK 37 million in the same period in 2021. So far this year, the group has recognised NOK 31 million in receipts on losses.

“In the last 15 years, both companies and households have demonstrated a strong ability to adapt in challenging times, and we have seen good growth in the business sector and low unemployment in the last year. Even though expectations regarding the coming months are somewhat lower, it is clear to us that many companies, especially in the energy sector, are well-positioned. We are seeing few worrying signs among our customers, although we continue to monitor developments closely,” says Benedicte Schilbred Fasmer.

Market turbulence and weaker results in SpareBank 1 Gruppen resulted in the net income from financial investments falling from NOK 231 million in the third quarter of 2021 to NOK 190 million in the same quarter in 2022.

SpareBank 1 SR-Bank’s cost/income ratio target is less than 40%. It was 39.2% for the third quarter, compared with 40.9% for the same period in 2021. So far in 2022, the cost/income ratio is at 41.2%.

Q3 2022

  • Pre-tax profit: NOK 1,044 million (NOK 926 million) 
  • Net profit for the quarter: NOK 829 million (NOK 733 million) 
  • Return on equity after tax: 12.5% (11.7%) 
  • Earnings per share: NOK 3.16 (NOK 2.80) 
  • Net interest income: NOK 1,115 million (NOK 992 million) 
  • Net commissions and other operating income: NOK 421 million (NOK 406 million) 
  • Net income from financial investments: NOK 190 million (NOK 231 million) 
  • Operating costs: NOK 676 million (NOK 666 million) 
  • Impairment provisions on loans and financial liabilities: NOK 6 million (NOK 37 million) 
    (Q3 2021 in brackets)

The full interim report is available for download from

Stavanger, 27 October 2022

Contact people:

Benedicte Schilbred Fasmer, Group CEO, Tel. +47 950 60 034
Inge Reinertsen, Chief Financial Officer, Tel. +47 909 95 033
Morten Forgaard, Director of Economy, Tel. +47 916 21 425
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.