Robust operations and good customer growth in 2011

SpareBank 1 SR-Bank achieved a pre-tax profit of NOK 1,495 million for 2011, compared with NOK 1,614 million for 2010. The results are marked by robust operations and significant growth, but also by international financial unrest.

Return on equity after tax was 11.2% (15.5%). The pre-tax profit for Q4 2011 in isolation was NOK 490 million (NOK 414 million), which represents a return on equity of 13.9% (16.9%). The Board of Directors proposes a dividend of NOK 1,50 per share.

- 2011 was a good year for SpareBank 1 SR-Bank despite the substantial unrest in the international markets. Bank operations are robust. Losses are low, the market is continuing to grow, and we have increased net interest income in NOK," says Arne Austreid, the CEO of SpareBank 1 SR-Bank ASA.

The growth in loans in 2011 was 11.2%, while the growth in deposits was 5.4%. Losses and write-downs amounted to NOK 139 million, compared with NOK 234 million in 2010.

A high level of activity in the property market, higher product coverage per customer and good growth in the capital market division meant that other operating income increased substantially last year. The increase in the Group's costs were connected with investments in new markets and business areas.

Key figures for 2011 (comparable figures for 2010 in brackets)

-          Profit before/after tax:                                           NOK 1,495 million (NOK 1,614) million /
-                                                                                     NOK 1,081 million (NOK 1,317 million)
-          Return on equity after tax:                                      11.2% (15.5%)
-          Net interest income:                                               NOK 1,756 million (NOK 1,742 million)
-          Operating expenses:                                               NOK 1,633 million (NOK 1,566 million)
-          Growth in loans over the past 12 months:                11.2% (11.6%)
-          Growth in deposits over past 12 months:                 5.4% (11.8%)
-          Earnings per share:                                   NOK 5.42 (NOK 6.84)
-          Proposed dividend per share                                  NOK 1.50 (NOK 2.75)
-          Core capital ratio:                                                  10.6% (10.2%)

- The Group is in a solid financial position. The capital raising exercise planned for the first half of 2012 will further strengthen our ability to continue meeting the customer's financial needs in a proactive manner. We are a market leader in the region in Norway enjoying the strongest growth and expect positive development in our business areas this year as well," says Arne Austreid.

The entire interim report may be downloaded from www.sr-bank.no

Stavanger, 8 February 2012

Contact persons:

Arne Austreid, Chief Executive Officer, phone +47 900 77 334
Inge Reinertsen, Chief Financial Officer, phone +47 909 95 033
Thor-Christian Haugland, Executive Vice President Communications, phone +47 480 31 633
Vidar Torsøe, Vice President, Investor Relations, phone +47 970 80 656