SpareBank 1 SR-Bank posts all-time high profit

SpareBank 1 SR-Bank presented a strong profit and welcomed 26,000 new customers in 2010. At the same time EiendomsMegler 1 sold 1,200 more homes last year compared with 2009. The profit was created by a motivated and efficient organisation.  Throughout 2010 the group bolstered its market position through ordinary customer growth and the acquisition of Kvinnherad Sparebank.

SpareBank 1 SR-Bank achieved a pre-tax profit of NOK 1,614 million in 2010, compared with NOK 1,432 million in 2009. After taxes of NOK 297 million, this provides a profit of NOK 1,317 million (NOK 1,111 million in 2009) and a return on equity after tax of 15.5 per cent (17.5 per cent in 2009). The reduced return on equity must be viewed in connection with the significant strengthening of equity through right issue of Equity Certificates toward the end of 2009.

"I am impressed by the results created by the group's employees in 2010. It's particularly satisfying to see that we welcomed 26,000 more customers last year. This shows that we are an attractive partner and a future-oriented organisation improving customer satisfaction" says Arne Austreid, CEO of SpareBank 1 SR-Bank.

Key figures for 2010

• Profit before tax: NOK 1,614 million (NOK 1,432 million)
• Profit after tax: NOK 1,317 million (NOK 1,111 million)
• Return on equity after tax: 15.5 % (17.5 %)
• Impairment loss on loans: NOK 234 million (NOK 368 million)
• Net interest income: NOK 1,742 million (NOK 1,676 million)
• Net commission and other income: NOK 1,101 million (NOK 998 million)
• Net return on investment securities: NOK 571 million (NOK 705 million)
• Growth in lending (including loans transferred to SpareBank 1 Boligkreditt AS and SpareBank 1 Næringskreditt AS) last 12 months: 11.6 % (5.3 %)
• Growth in deposits last 12 months: 11.8 % (2.4 %)
• Earnings per equity certificate: NOK 6.84 (NOK 6.88)
• The Board proposes a dividend of NOK 2.75 (NOK 1.75) per equity certificate.
• The Board proposes that NOK 197 million (NOK 158 million) be allocated to the Endowment Fund.
• Core capital ratio (taking into account the Board's dividend proposal):10,2 % (9.6 %)

(2009 in parentheses)

In isolation, the pre-tax profit for Q4 2010 was NOK 414 million (NOK 437 million in Q4 2009). Return on equity after tax was 16.9 per cent (18.2 per cent). Provisions for loan losses were moderate.

The group is well positioned for growth and pursuing new business opportunities, says Austreid.

"We are seeing a brighter outlook for local and regional industry in large. Petroleum investments, which are important for activities in the group's market area, are expected to continue at high levels. We are well positioned to support such a positive trend going forward," says Austreid.

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

Stavanger, 3 February 2011

For further details, please contact:
Arne Austreid, Chief Executive Officer, phone +47 900 77 334
Inge Reinertsen, Chief Financial Officer, phone + 909 95 033
Thor-Christian Haugland, Executive Vice President Communications, phone +47 480 316 33.
Vidar Torsøe, Vice President, Investor Relations, phone +47 970 80 656

This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)