SpareBank 1 SR-Bank - 2nd. Quarter Results

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Group profit of NOK 195 million (NOK 244 million) before tax
Return on the portfolio of shares and primary capital certificates is -4.2 % (+2.6 %)
Profit from underlying bank operations is NOK 320 million (NOK 301 million) before losses
Stabile interest margin of 2.07 % (2.08 %)
Good cost-effectiveness, cost percentage of 1.68 (1.67)
Moderate growth in lending, 12-month growth of 6 % (16 %)
Good growth in deposits, 12-month growth of 18 % (13 %)
Deposit coverage strengthened by 6.9 percentage points so far this year
Relatively low losses and stabile defaults
Profit per primary capital certificate after tax of NOK 11.2 (NOK 14.7)
Return on equity capital after tax of 10.0 % (13.3 %)  
Good development in underlying operations - result characterized by the development in the share markets The SpareBank 1 SR-Bank group achieved a profit before tax of NOK 195 million after the first six months of 2002.  The result is characterized by the decline in the securities markets, and is NOK 49 million lower than for the corresponding period last year.  However, the underlying bank operations before losses show an improved profit of NOK 19 million to NOK 320 million so far this year.  The group's return on equity capital after tax is 10.0 %.
So far this year, the bank's portfolio of shares and primary capital certificates has suffered a capital loss of NOK 19 million, compared with a capital gain of NOK 7 million at the same time last year.  In addition, a negative contribution of NOK 22.6 million has been entered from SpareBank 1 Gruppen.  The primary cause is linked to the development in the securities market.
The result shows a stabile interest margin and good growth in other operating income, particularly insurance and funds.  Net losses so far this year amount to NOK 93 million.  Defaults are at a stabile level in relation to the lending volume.
The 12-month growth in lending volume has been reduced from 11 % at the beginning of the year to 6 % at the end of the first six months.  The deposit volume shows a 12-month growth rate of 18 %, compared with 9% at the beginning of the year.  The deposit coverage has been strengthened from 54.9% at the beginning of the year to 61.8% at the end of the first six months.
Other operating income
At the end of the first six months, the group's net commision income amounted to NOK 145 million, NOK 26 million higher than for the same period last year.  The growth is divided among income from sales of unit trusts / guaranteed products, insurance, payment services, guarantees and reduced intermediary commission costs.  We would particularly emphasize the commission income from insurance which shows an increase of 32%.  The income from unit trusts is NOK 35 million so far this year, an increase of NOK 7 million compared with the first half of 2001.  This is primarily due to good sales of guaranteed products.
Operating costs
The group's operating costs amounted to NOK 413 million so far this year.  Compared with total assets, this amounts to 1.68 % compared with 1.67 % for the corresponding period last year.
The average number of man-years has increased over the past 12 months from 790 to 841 as of 30 June 2002.  The activity in EiendomsMegler 1 has been expanded through the opening of several new divisions.  The bank has also opened four new offices during the course of 2001 and 2002.
Market development
SpareBank 1 SR-Bank is the market leader within both the private and business markets.  New surveys show that the bank has strengthened its market shares in Rogaland within the private market.  The strong position of the business market is confirmed by the addition of several new companies, as well as the fact that major existing customers such as Lyse Energi AS and Rogaland Fylkeskommune (County Municipality) have renewed their agreements.
Responsibility for the region
SpareBank 1 SR-Bank takes responsibility for the region by donating portions of the profit generated for the benefit of the community.  More than NOK 10 million has been donated for such purposes so far this year.  Among these gifts are the donation of NOK 3.5 million to a new sea rescue team for the construction of a boat to serve the Ryfylke fjords and NOK 3.5 million to the millennium site in Rogaland (Nordvegen Historical Center at Avaldsnes) for development of the center.
Outlook for the future
The negative development in the securities market as well as higher interest rates will probably affect the activity in the region.  In spite of this, the Board expects positive economic development in the region for the second half of the year, although this will vary according to business sector.
Stavanger, 8 August 2002
The Board of Directors of Sparebanken Rogaland
For full report with tables see attachment:

The following persons may be contacted for additional comments: <!-- hugin-supplied --><br> <!-- hugin-supplied --><br> Financial Director Tor Dahle, tel. +47 51 50 95 56 / +47 915 47503 <!-- hugin-supplied --><br> <!-- hugin-supplied --><br> Managing Director Terje Vareberg, tel. +47 51 50 95 53 / +47 911 00448 <!-- hugin-supplied --><br>


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