SpareBank 1 SR-Bank ASA: A good result, significantly affected by non-recurring effects
Greater efficiency, higher earnings and low losses ensure a solid profit for the quarter. Capital gain on the bank's stake in Nets Holding AS improves the result by NOK 202 million compared with the same period last year.
Supplementary information 1Q 2014Supplementary information 1Q 2014pareBank 1 SR-Bank achieved a pre-tax profit of NOK 787 million in the first quarter of 2014, compared with NOK 501 million for the same period last year. The return on equity after tax increased from 12.3% in the first quarter of 2013 to 18.4% this year.
"I am very pleased with the result, which is necessary in order to adapt to the new regulatory requirements. We are working systematically and well throughout the group. Efficiency has been further improved, both through cost reducing measures and higher earnings. Compared with the same period last year, our ordinary operating income has risen by 20%. A greater focus on the digitalisation of a number of processes is expected to result in further efficiency improvements," says the chief executive of SpareBank 1 SR-Bank, Arne Austreid.
The group's net interest income, including income from commissions and its share of the profits from SpareBank 1 Boligkreditt and SpareBank 1 Næringskreditt, amounted to NOK 741 million compared with NOK 607 million in the first quarter of 2013. At the end of the first quarter, the growth in costs in the last 12 months was 3.1%. The cost/income ratio, measured as costs as a percentage of income, had improved from 48.2% to 44.1%. The latter figure has been adjusted for the non-recurring effects associated with the capital gain on the shares in Nets Holding AS.
"We have just announced changes to our prices for retail customers, both for loans and deposits. This will help ensure our overall market offer remains competitive. We thus have a good basis for robust growth in Rogaland, Hordaland and the Agder counties. Our corporate customers are generally enjoying good profitability and financial strength. This is resulting in continued moderate, low losses," says Arne Austreid.
Key figures for Q1 2014
- Pre-tax profit: NOK 787 million (NOK 501 million)
- Net profit for the period: NOK 659 million (NOK 394 million)
- Return on equity after tax: 18.4% (12.3%)
- Earnings per share: NOK 2.58 (NOK 1.54)
- Net interest income: NOK 547 million (NOK 451 million)
- Net commissions and other operating income: NOK 480 million (NOK 404 million)
- Net income from financial investments: NOK 319 million (NOK 161 million)
- Operating costs: NOK 505 million (NOK 490 million)
- Impairment losses on loans: NOK 54 million (NOK 25 million)
- Total lending growth over the last 12 months: 3.8% (7.4%)
- Growth in deposits over the last 12 months: 8.5% (2.2%)
- Common equity tier 1 capital ratio: 11.2% (10.1%)
- Tier 1 capital ratio: 13% (12.2%)
(Q1 2013 figures in brackets)
The entire interim report may be downloaded from www.sr-bank.no
Stavanger, 29 April 2014
Arne Austreid, CEO, Tel. (+47) 900 77 334
Inge Reinertsen, CFO, Tel. (+47) 909 95 033.
Thor-Christian Haugland, Executive Vice President Communications, Tel. (+47) 480 31 633.
Vidar Torsøe, Vice President Investor Relations, Tel. (+47) 970 80 656.