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Stronger result driven by growth and solid underlying operations

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SpareBank 1 SR-Bank (SRBNK) posted a pre-tax profit of NOK 1,225 million for the fourth quarter of 2022. The return on equity after tax for the quarter was 14.6%.

Profit increased by NOK 152 million compared with the fourth quarter in 2021, and was driven by lending growth, good underlying operations and low impairment provisions. NOK 106 million of the increase was linked to the sale of a subsidiary, Bjergsted Terrasse AS. The return on equity increased from 14.1% in the same quarter in 2021.

The group saw total lending growth of 9.8%, NOK 22.7 billion, in the past 12 months. A higher lending volume and stronger interest rate margin contributed to net interest income amounting to NOK 1,286 million in the fourth quarter, up from NOK 1,007 million in the fourth quarter of 2021. 

“The group has strengthened its underlying operations in a year of turbulent markets and geopolitical uncertainty. The high lending growth was due to retail and corporate customers choosing to work with a group with a strong desire to see its customers succeed. The employees have put in an incredible effort during a demanding period, and we will continue to follow up our customers closely,” says CEO Benedicte Schilbred Fasmer.

The group saw NOK 36 million in impairment provisions on loans and financial liabilities in the fourth quarter, compared to a reversal of NOK 24 million in the same quarter of 2021. Operating costs decreased by NOK 2 million to NOK 752 million in the fourth quarter of 2022.

The group’s preliminary profit for 2022 was NOK 4,211 million, an increase of NOK 373 million compared with 2021. Increases in net interest income, commissions, and other operating income, as well as lower impairment provisions, had a positive effect on the profit. Increased costs and lower income from financial investments negatively affect the result. SpareBank 1 Gruppen AS achieved a significantly weaker result in 2022 than in the same period last year. The weakening is due to weak stock markets, increased interest rates, higher claims rates and write-downs of investment properties.

The group’s return on equity after tax for 2022 was 12.6%, the same as in 2021. Given the strong results, the board is proposing to the general meeting that a dividend of NOK 7 per share be paid out for 2022. This corresponds to a dividend share of 54,4%. 

At the start of 2023, the group has raised its long-term target for return on equity from a minimum of 12% to a minimum of 13%. Customer growth in Southern Norway, growth in other operating income and cost-effective operations with a positive contribution from a strong partnership with the SpareBank 1 Alliansen, will help the group achieve its target.

“Despite higher living costs for households and pressure on corporate profitability, we are seeing few signs of deterioration in our customer portfolio. At the same time, we are prepared for the long-term effects that might come”, says Benedicte Schilbred Fasmer.

“In our business barometer for 2023, we see that there are big differences between the industries and their expectations for the year. The energy sector stands out, with a positive outlook and high activity going forward. It can help dampen a negative development in other industries, not least in the southwestern part of Norway. SpareBank 1 SR-Bank is well positioned for further profitable growth in this picture,” says Benedicte Schilbred Fasmer. 


Q4 2022

  • Pre-tax profit: NOK 1,225 million (NOK 1,073 million)
  • Net profit for the quarter: NOK 1,000 million (NOK 889 million)
  • Return on equity after tax: 14.6% (14.1%)
  • Earnings per share: NOK 3.81 (NOK 3.41)
  • Net interest income: NOK 1,286 million (NOK 1,007 million)
  • Net commissions and other operating income: NOK 453 million (NOK 455 million)
  • Net income from financial investments: NOK 274 million (NOK 342 million)
  • Operating costs: NOK 752 million (NOK 754 million)
  • Impairment provisions on loans and financial liabilities: NOK 36 million (NOK -24 million)
    (    Q4 2021 in brackets)

Preliminary annual results for 2022

  • Pre-tax profit: NOK 4,211 million (NOK 3,838 million)
  • Net profit for the year: NOK 3,378 million (NOK 3,156 million)
  • Return on equity after tax: 12.6% (12.6%)
  • Earnings per share: NOK 12.88 (NOK 12.08)
  • Net interest income: NOK 4,516 million (NOK 4,001 million)
  • Net commissions and other operating income: NOK 1,770 million (NOK 1,716 million)
  • Net income from financial investments: NOK 756 million (NOK 1,026 million)
  • Operating costs: NOK 2,825 million (NOK 2,714 million)
  • Impairment provisions on loans and financial liabilities: NOK 5 million (NOK 192 million)
  • Total lending growth over past 12 months: 9.8% (5.3%)
  • Growth in deposits over past 12 months: 7.6% (22.5%)
  • Common Equity Tier 1 capital ratio: 17.4% (17.4%)
  • Capital ratio: 20.3% (20.5%)
  • The board is proposing a dividend of NOK 7.00 (NOK 6.00)
    (As at 31 December 2021 in brackets)


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


Stavanger, 8 February 2023.


Contact:

Benedicte Schilbred Fasmer, Group CEO, Tel. +47 950 60 034

Inge Reinertsen, Chief Financial Officer, Tel. +47 909 95 033

Morten Forgaard, Financial director, Tel. +47 916 21 425

Øyvind Knoph Askeland, Director of Communications, Tel. +47 922 32 639


This information is disclosed in compliance with section 5-1 of the Securities Trading Act.
 

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