English

The result reflects the high activity level and good banking operations

Report this content

At 30 September 2010, SpareBank 1 SR-Bank achieved a pre-tax profit of NOK 1,200 million. This is NOK 205 million more than last year. Return on equity after tax so far this year is 15.1 per cent, compared with 16.9 per cent in the same period in 2009.

For the 3rd quarter seen in isolation, the pre-tax profit was NOK 386 million. Return on equity after tax was 14.3 per cent, compared with 25.2 per cent for the same period last year. This reduction can be explained, inter alia, by the significant strengthening of equity last year.

"The result is characterised by good operations throughout the group, the positive performance of the stock markets and relatively low losses. We can register brighter prospects for trade and industry and optimism in the housing market. The result reflects these positive trends", says Terje Vareberg, SpareBank 1 SR-Bank's Chief Executive Officer.

In the retail market, lending grew by 12.3 per cent over the last 12 months. This is significantly higher than the national average for the period. 

"We get inspiration from the increased competition and we continue to garner market shares in the retail market. More and more customers prefer us. This is very important for the growth of commission income and net interest income alike", says Vareberg.

Key figures as at 30 September 2010 (comparable figures for 2009 in parentheses)

  • Profit before tax: NOK 1,200 million (NOK 995 million)
  • Profit after tax: NOK 936 million (NOK 781 million)
  • Return on equity after tax: 15.1 % (16.9 %)
  • Provisions for losses: NOK 163 million (NOK 294 million)
  • Net interest income: NOK 1,300 million (NOK 1,221 million)
  • Net commission and other income: NOK 818 million (NOK 713 million)
  • Net return on financial investments: NOK 388 million (NOK 496 million)
  • Growth in lending (including loans transferred to SpareBank 1 Boligkreditt) last 12 months: 6.6 % (8.8 %)
  • Growth in deposits last 2 months: 3.7 % (- 0.3 %)
  • Earnings per primary capital certificate: NOK 4.87 (NOK 4.88)

So far this year, net write-downs of loans aggregate NOK 163 million, compared with NOK 294 million for the same period last year. This represents 0.18% of gross lending including loans transferred to SpareBank 1 Boligkreditt.

"The group's strong market position, low loan loss provisions and a default level that stays low mean that we are well equipped for further growth and profitable development. Seen as a whole, 2010 appears to be a very good year for SpareBank 1 SR-Bank", says Terje Vareberg.

The quarterly report in its entirety can be downloaded from www.sr-bank.no

Stavanger, 28 October 2010

For further details, please contact:

Terje Vareberg, Chief Executive Officer, telephone +47 911 00 448
Inger Reinertsen, Chief Financial Officer, telephone +47 909 95 033
Thor-Christian Haugland, Executive Vice President Communications, telephone + 47 480 31 633
Vidar Torsøe, Director IR, telephone + 47 970 80656  

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

Subscribe

Documents & Links