Return on equity capital after tax: 17.4% (15.1%).

Group profit: NOK 352 million (NOK 277 million) before tax.

Profit from underlying operations: NOK 369 million (NOK 325 million) before losses.

Interest margin: 2.04% (2.12%).

Net other operating income: NOK 348 million (NOK 289 million).

Net losses: NOK 62 million (NOK 105 million), 0.2 % of gross lending on an annual basis.

Gross default: Reduced by 33% over past 12 months.

Growth in lending last 12 months: 8% (6%).

Growth in deposits last 12 months: 11% (3%).

Deposit-to-loan ratio: 61.4% (60.2%).

Earnings per primary capital certificate after tax: NOK 16.5 (NOK 13.5).

 

Result

SpareBank 1 SR-Bank achieved a return on equity capital of 17.4 % after tax in the first half of 2004, compared with 15.1% for the first half of last year. The group's pre-tax profit was NOK 352 million in the first half of 2004, which is an increase from NOK 277 million in the first half of 2003. Profit from the underlying operations before losses showed an improvement of NOK 44 million, and net losses have been reduced by NOK 43 million in the first half of 2004, compared with the corresponding period last year.

 

Net losses of NOK 62 million year to date have been reduced from NOK 105 million for the corresponding period last year.

 

Ordinary operating costs increased from NOK 447 million in the first half of 2003 to NOK 475 million in the first half of 2004. The cost percentages for the parent bank and group in the first half of 2004 were 52.3% (53.9%) and 56.7% (57.1%), respectively.

 

Growth in lending was 8% (6%) on a 12-month basis, and the deposit volume increased by 11% (3%) over the past 12 months. The deposit-to-loan ratio was 61.4% (60.2%) as of 30 June 2004.

 

Other operating income

The net commission income was NOK 161 million in the first half of 2004, which was an increase of NOK 24 million (16%) compared with the first half of 2003. Most of the improvement is attributed to the sale of mutual fund/unit trust products which showed an increase of NOK 21 million (96%).

 

The ownership interest in SpareBank 1 Gruppen AS ("Income from ownership interests") has yielded a positive contribution of NOK 8 million (minus NOK 1 million) year to date, NOK 3 million of which is due to incorporation of the final results for 2003.

 

Operating costs

Operating costs in the first half of 2004 totalled NOK 490 million, up from NOK 447 million for the corresponding period last year. The year-to-date costs include an extraordinary provision of NOK 15 million in the first quarter.

 

Subsidiaries

Pre-tax profit for EiendomsMegler 1 Rogaland AS was NOK 14 million for the first half of 2004, up from NOK 9 million for the corresponding period last year. Westbroker Finans AS (leasing and project financing) reported a pre-tax profit of NOK 11 million for the first half of 2004, while it reported a loss of NOK 9 million, after losses of NOK 19 million, for the first half of last year.

 

The bank's primary capital certificates

At the end of June the price of the bank's primary capital certificate was NOK 273.5, compared with NOK 269.2 at the beginning of the year (adjusted for the bonus issue of 26 March 2004). There were 7,840 primary capital certificate owners as of 30 June 2004, and the percentage of certificates owned by foreigners was 14.8%, while 47.2% of the owners were linked to Rogaland.

 

Outlook for the future

The board expects a good financial result for the group in 2004.

 

More detailed information on the bank's various areas and the group's operations may be found in the enclosed quarterly report and figures.