International financial instability affecting the result
Good underlying operations with unrealised losses in the bond portfolio.
SpareBank 1 SR-Bank achieved a profit before tax of NOK 186 million in the year's first three months.
The result for Southern and Western Norway's leading financial group fell by NOK 101 million compared with the first quarter of 2007. The low return on financial investments contributed to this in particular.
"We are delivering a good operating result. The result for the underlying banking operations is NOK 52 million better than in the same period last year. The primary reason for this improvement is the growth in loans combined with the increased interest rate margin in relation to the same period last year," says Terje Vareberg, CEO of SpareBank 1 SR-Bank.
"The last eight months have been quite turbulent in the international financial and money markets. In the case of SpareBank 1 SR-Bank this has resulted in unrealised losses in the bank's bond portfolio, which constitutes the bank's liquidity reserve."
"We are especially pleased that the number of savings agreements in the equity fund - around 55,000 - has been sustained throughout the period," concludes Terje Vareberg.
The key figures for the first quarter 2008:
- Group profit before tax: NOK 186 million (NOK 287 million).
- Return on equity after tax: 9.0% (20.2%).
- Underlying operations before losses: NOK 247 million (NOK 195 million).
- Net interest income: NOK 378 million (NOK 288 million).
- Net commission and other income: NOK 194 million (NOK 190 million).
- Net return on financial investments: NOK -34 million (NOK 104 million) of which unrealised losses in the bond portfolio amount to NOK -60 million.
- Growth in loans: 23.2% (24.3%) last 12 months, of which retail: 14.1% and corporate: 38.9%.
- Growth in deposits: 15.9% (13.3%) last 12 months, of which retail: 11.3% and corporate: 19.4%.
- Profit per primary capital certificate: NOK 1.0 (NOK 2.1).
(Results year to date. Figures in brackets are for the corresponding period 2007)
The entire report can be downloaded from: www.sr-bank.no.
Contact people:
Terje Vareberg, CEO
Tel: (+47) 51 50 95 53 / (+47) 911 00 448
Lisbet K. Nærø, CFO
Tel: (+47) 51 50 95 61 / (+47) 952 65 960
Thor-Christian Haugland, Executive Vice President Communications & Public Relations
Tel: (+47) 51 50 92 81 / (+47) 480 31 633