SpareBank 1 SR-Bank ASA: Good growth in income in the first half of the year

SpareBank 1 SR-Bank achieved a profit before tax of NOK 798 million in the first half of 2012, compared with NOK 752 million for the same period last year. Return on equity after tax was 12.3 % (11.9 %) for the first half of 2012. Profit before tax for the quarter was NOK 405 million (NOK 416 million). This corresponds to a return on equity after tax of 11.8 % (12.6 %) for the quarter.

'Profits are good and are characterised by good growth in customers and income, and a moderate increase in operating costs. Despite the ongoing and significant unrest in the financial markets and the declining economic situation in large parts of Europe, the activity and profitability of companies in our part of the country remain high. This has a positive effect for us in the form of low losses', says Arne Austreid, CEO of SpareBank 1 SR-Bank.

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 90 million compared to the same period last year. Income from EiendomsMegler 1 SR-Eiendom and from financial investments also increased. In total, income grew by NOK 126 million compared to the first half of 2011. 

"I am pleased that we have increased net interest income. This is the result of an increased volume and improved lending margins. At the same time, more customers are choosing us. We notice this through increased turnover in our real estate brokering and through growth in the number of new customers in the bank. We are strengthening our position as the market leader in this area of the country', says Austreid,

First half 2012

• Profit before tax: NOK 798 million (NOK 752 million)
• Profit after tax: NOK 619 million (NOK 570 million)
• Return on equity after tax: 12.3 % (11.9 %)
• Profit per share: NOK 2.42 (NOK 2.83)
• Net interest income: NOK 814 million (NOK 851 million)
• Net commission and other income: NOK 681 million (NOK 606 million)
• Net income from financial investments: NOK 289 million (NOK 201 million)
• Operating expenses: NOK 918 million (NOK 842 million)
• Impairment losses on loans: NOK 68 million (NOK 64 million)
• Overall lending growth over the last 12 months: 9.3 % (14.5 %)
• Growth in deposits over past 12 months: 9.7 % (15.8 %)
• Core capital ratio: 11.4 % (10.0 %)
• Pure core capital cover: 9.2 % (8.6 %)

(Figures for first half 2011 are shown in parentheses)

'The issue we completed in the first half of the year strengthens our ability to keep meeting our customers' financing needs offensively', says Austreid.He also emphasises that the Group has a solid financial position.

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

Stavanger, 09 August 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.