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SpareBank 1 SR-Bank ASA (SRBANK): A good result marked by good operations, increased market activity and growth

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SpareBank 1 SR-Bank posted a pre-tax profit of NOK 3,191 million as at 30 September 2019, compared with NOK 2,216 million for the same period last year. The result was characterised by good operations, increased activity in Southern and Western Norway, and marked customer growth compared with the same period last year.

The return on equity after tax was 16.0%, compared with 11.7% at the end of the third quarter of 2018. With the effects of the Fremtind Forsikring AS merger taken into account, the return on equity after tax was 13.4%.

Impairments on loans and guarantees totalled NOK 96 million, compared with NOK 232 million in the same period last year.

The group’s operating costs amounted to NOK 1,800 million, up from NOK 1,653 million for the same period last year. This corresponds to a cost/income ratio of 35.4%, down from 40.3% at the end of the third quarter last year.

“The group’s results were good. They present a clear picture of increased activity and, not least, show that customer demand for our products and services is increasing throughout Southern Norway,” says Arne Austreid, the chief executive of SpareBank 1 SR-Bank.

The pre-tax profit for the quarter seen in isolation was NOK 759 million, compared with NOK 794 million last year, which is equivalent to a return on equity after tax of 10.5%, compared with 12.6% for the third quarter of 2018.

Q3 2019

  • Pre-tax profit: NOK 759 million (NOK 794 million)
  • Net profit for the quarter: NOK 593 million (NOK 634 million)
  • Return on equity after tax: 10.5% (12.6%)
  • Net interest income: NOK 1,019 million (NOK 871 million)
  • Net commissions and other operating income: NOK 332 million (NOK 349 million)
  • Operating costs: NOK 615 million (NOK 542 million)
  • Impairments on loans and financial liabilities: NOK 66 million (NOK 59 million)

(Q3 2018 in brackets)

Year-to-date as at 30 September 2019

  • Pre-tax profit: NOK 3,191 million (NOK 2,216 million)
  • Net profit for the period: NOK 2,639 million (NOK 1,769 million)
  • Return on equity after tax: 16.0% (11.7%)
  • Return on equity after tax, excl. Fremtind Forsikring AS merger effects: 13.4%
  • Earnings per share: NOK 10.32 (NOK 6.92)
  • Net interest income: NOK 2,925 million (NOK 2,513 million)
  • Net commissions and other operating income: NOK 1,057 million (NOK 1,087 million)
  • Operating costs: NOK 1,800 million (NOK 1,653 million)
  • Impairments on loans and financial liabilities: NOK 96 million (NOK 232 million)
  • Total lending growth over last 12 months: 6.8% (6.1%)
  • Growth in deposits over last 12 months: 1.9% (1.7%)
  • Common equity tier 1 capital ratio: 14.4% (14.7%)

(As at 30 September 2018 in brackets)

“Sustainability is high on the agenda. In September, we launched a special programme for issuing green bonds backed by green loans within both the retail and the corporate market. The first issue, with a face value of EUR 500 million, has recently been completed and consists of green mortgages. The bond was well received,” says Arne Austreid.

The full interim report is available for download from www.sr-bank.no.

Stavanger, 31 October 2019

Contact persons:
Arne Austreid, CEO, Tel. +47 900 77 334
Inge Reinertsen, CFO, Tel. +47 909 95 033
Stian Helgøy, Vice President Investor Relations, Tel. +47 906 52 173
Thor-Christian Haugland, Executive Vice President Communications, Tel. +47 480 31 633

This information is disclosed in compliance with section 5-12 of the Securities Trading Act.

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