Group profit in 2003: NOK 569 million (NOK 18 million) before tax.

Return on equity capital after tax: 15.2% (-1.3%).

Profit from underlying operations: NOK 698 million (NOK 672 million) before losses.

Interest margin: 2.12% (2.13%).

Net profit on exchange: NOK 163 million (-NOK 115 million).

Loss attributable to SpareBank 1 Gruppen AS: -NOK 7 million (-NOK 167 million).

Net losses: NOK 250 million (NOK 341 million), 0.5% of gross lending.

Growth in lending last 12 months: 8% (4%).

Growth in deposits last 12 months: 2% (15%).

Deposit-to-loan ratio: 57.8% (60.8%).

Profit per primary capital certificate after tax: NOK 32.7 (-NOK 2.8).

The board proposes a dividend of NOK 20 per primary capital certificate

The board proposes allocating NOK 32 million to an endowment fund

 

 

The SpareBank 1 SR-Bank group achieved a pre-tax profit of NOK 569 million in 2003, compared with NOK 18 million in 2002.  Ordinary banking operations in 2003 improved by NOK 26 million.  The group's return on equity capital after tax is 15.2%.

 

The group's interest margin was 2.12% in 2003, at about the same level as in 2003 (2.13%). In the fourth quarter changes in the interest rate from earlier this autumn had their full effect which resulted in a reduced interest margin. Seen by itself the margin in the fourth quarter of 2003 was 2.03%.

 

Other net operating income increased from NOK 137 million in 2002 to NOK 601 million in 2003. The main reasons for the substantial improvement are that the loss attributable to SpareBank 1 Gruppen AS has been reduced from minus NOK 167 million to minus NOK 7 million, net profit on exchange has improved from minus NOK 115 million to NOK 163 million, and net commission income increased by NOK 24 million from NOK 289 million in 2002 to NOK 313 million in 2003.

 

Cost-effectiveness improved and shows a cost percentage of 56.1 in 2003 (61%) in the group. The parent bank's cost percentage improved from 58.0 in 2002 to 53.5 in 2003.

 

Default was NOK 426 million at the end of December, a reduction of NOK 13 million in the fourth quarter.

 

Net losses show a reduction of NOK 91 million from NOK 341 million in 2002 to NOK 250 million in 2003, which amounts to 0.5% of gross lending in the group in 2003.

 

2000 new private customers chose SpareBank1 SR-Bank as their main bank in 2003, and 40,000 of the bank's 181,000 private customers have savings in mutual fund/unit trust products. The sale of insurance products has also been a success and 71,000 customers have taken out non-life insurance and 29,000 have taken out personal insurance coverage with the bank.  At the end of 2003 SpareBank1 SR-Bank had 78,000 Internet bank customers. This is an increase of 15% since December 2002.  54% of our salary account customers over the age of 18 use the Internet bank.

 

Managing Director Terje Vareberg states that he is very satisfied with the results and the progress made from 2002. He also emphasizes the importance that the employees' commitment and ability to adjust to new circumstances have had for the results in 2003.

 

The board expects satisfactory profit performance for the group in 2004. The low interest rate level will be a challenge for the banks' interest margins.

At the same time a business upturn will provide increased market opportunities.