SpareBank 1 SR-Bank : Healthy profit from SpareBank 1 SR-Bank ASA

SpareBank 1 SR-Bank achieved a pre-tax profit of NOK 1,303 million as at 30 September 2012, compared with NOK 1,005 million for the same period last year. Return on equity after tax was 12.8 % (10.4 %) Pre-tax profit for the quarter in isolation amounted to NOK 505 million (NOK 253 million). This corresponds to a return on equity after tax of 13.6 % (7.2 %).

"The region is performing well and the group is delivering solid results. The profit is backed by good customer growth, growth in total revenues, a moderate increase in costs and low losses. As a whole 2012 should be a good year for SpareBank 1 SR-Bank," says Arne Austreid, CEO.

The activity and profitability for companies in the south west is high, despite persistent instability in large sections of the international economy. This, in conjunction with closely following up our customers and good preventative work in the bank, means that the bank's losses are low.

The Group's net interest income, including income from commissions and contributions to profit from SpareBank 1 Boligkreditt and SpareBank 1 Næringskreditt, has increased by NOK 168 million compared with the same period last year. Income from EiendomsMegler 1 SR-Eiendom and from the group's financial investments also increased. In total, income grew by NOK 395 million compared with the same period last year. This is important for further strengthening the group's position.

"We are a solid bank and are highly focused on long-term profitability through bolstering the group's underlying operations. This is critically important at a time when our industry is facing increased requirements in relation to equity and long-term financing," says Austreid.

Key figures as at 30 September 2012

§  Pre-tax profit: NOK 1,303 million (NOK 1,005 million)
§  Net profit for the period: NOK 1,017 million (NOK 744 million)
§  Return on equity after tax: 12.8 % (10.4 %)
§  Earnings per share: NOK 3.98 (NOK 3.69)
§  Net interest income: NOK 1,262 million (NOK 1,308 million)
§  Net commission and other income: NOK 1,055 million (NOK 887 million)
§  Net income from financial investments: NOK 481 million (NOK 208 million)
§  Operating costs: NOK 1,384 million (NOK 1,304 million)
§  Impairment losses on loans: NOK 111 million (NOK 94 million)
§  Change in total loans over the last 12 months: 8.5 % (15.3 %)
§  Change in deposits over past 12 months: 7.6 % (15.5 %)
§  Tier 1 capital coverage: 11.5 % (9.6 %)
§  Core Tier 1 capital coverage: 9.4 % (8.2 %)

(As at 30 September 2011 in parentheses)

SpareBank 1 SR-Bank is implementing significant measures to further streamline operations and improve services for its customers. The most recent being a new mobile banking service for the corporate market.

No other bank customers use mobile banking more often than SpareBank 1 SR-Bank's customers. The growth in mobile banking services is expected to continue and the number of logins using mobile banking will likely pass traditional online banking at the end of the year.

"Our customers are very interested in using new technological solutions. Good products, simple services, solid relationships and efficient operations are important elements in securing good profitability for the years ahead," says Austreid.

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

Stavanger, 1 November 2012

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