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SpareBank 1 SR-Bank ASA: Good results help to strengthen tier 1 capital

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SpareBank 1 SR-Bank achieved a pre-tax profit of NOK 1,673 million as of 30 September 2013, compared with NOK 1,303 million for the same period last year. The result was characterised by more efficient operations, increased income and continued low losses. Return on equity after tax was 13.2%, compared with 12.8% for the same period in 2012. The pre-tax profit for the quarter in isolation was NOK 661 million (NOK 505 million), equivalent to a return on equity after tax of 15.6% (13.6%).

"I am very pleased with the results, which are characterised by increased income, greater efficiency and continued robust and balanced growth. This, in combination with good access to long-term funding, is vital with regard to satisfying stricter regulatory requirements and being able to continue providing the region with the capital it needs for further growth," says Arne Austreid, CEO of SpareBank 1 SR-Bank.

Net interest income, including income from commissions and its share of the profits from SpareBank 1 Boligkreditt and SpareBank 1 Næringskreditt, amounted to NOK 2,055 million compared with NOK 1,587 million as of 30 September 2012. In the same period the underlying growth in costs was reduced to 2.1%, while the cost/income ratio, measured as operating costs in relation to income, was improved from 49.5% to 45.8%.

Key figures as of 30 September

  • Pre-tax profit: NOK 1,673 million (NOK 1,303 million)
  • Net profit for the period: NOK 1,293 million (NOK 1,017 million)
  • Return on equity after tax: 13.2% (12.8%)
  • Earnings per share: NOK 5.06 (NOK 3.98)
  • Net interest income: NOK 1,545 million (NOK 1,262 million)
  • Net commissions and other operating income: NOK 1,335 million (NOK 1,055 million)
  • Net income from financial investments: NOK 360 million (NOK 481 million)
  • Operating costs: NOK 1,485 million (NOK 1,384 million)
  • Impairment losses on loans: NOK 82 million (NOK 111 million)
  • Overall lending growth over the last 12 months: 5.5% (8.5%)
  • Growth in deposits over past 12 months: 2.2% (7.6%)
  • Tier 1 capital ratio 12.2% (11.5%)
  • Core equity Tier 1 capital ratio: 10.5% (9.4%)

(As of 30 September 2012 in brackets)

Loan losses remain very low. This is due to our close monitoring of customers, good portfolio composition and, not least, our operations in a region enjoying a good, high level of economic activity.

"So far this year we have provided the region's business sector with around NOK 35 billion in the form of new loans. A large proportion of this capital was for small and medium-sized companies in the region. This clearly illustrates that we are succeeding well in a market that is still characterised by strong competition. Overall we expect 2013 to be a good year for SpareBank 1 SR-Bank in which the bulk of earnings will help to make us more robust for the future," concludes Arne Austreid.

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

Stavanger, 31 October 2013

Contact people:
Arne Austreid, CEO, Tel. (+47) 900 77 334.
Inge Reinertsen, CFO, Tel. (+47) 909 95 033.
Thor-Christian Haugland, EVP Communications, Tel. (+47) 480 31 633.
Vidar Torsøe, VP Investor Relations, Tel. (+47) 970 80 656.

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