Very good result - reflects higher level of activity and good banking operations

SpareBank 1 SR-Bank achieved a pre-tax profit of NOK 814 million in the first half of 2010. This is NOK 322 million more than in the first half of last year. Return on equity after tax for the first half of 2010 was 15.6 per cent, compared with 12.6 per cent in the same period last year.

For Q2 seen in isolation, the pre-tax profit was NOK 419 million. Return on equity after tax was 16.5 per cent, compared with 19.9 per cent in same period in the preceding year.

"I am exceedingly satisfied with the overall result, for the quarter seen in isolation and for the half-year as a whole. The result shows that we have solid grasp on our operations, with good growth in income and through and through good quality in the total lending portfolio", says Terje Vareberg, SpareBank 1 SR-Bank's Chief Executive.

Lending in the retail market grew by 12.4 per cent over the last 12 months. This is about twice as much as the national average for the period

"Despite increased competition, we continue to glean market shares in the retail market. An increasing number of customers prefer us. During the first half of the year, we have registered almost 8,000 new private customers. This development is extremely important for the growth in commission income and net interest income alike ", Terje Vareberg continues.

Key figures as at 30 June 2010 (as at 30 June 2009 in parentheses)

• Profit before tax: NOK 814 million (NOK 492 million)
• Profit after tax: NOK 636 million (NOK 382 million)
• Return on equity after tax: 15.6% (12.6%)
• Net loan loss provisions: NOK 120 million (NOK 209 million)
• Net interest income: NOK 864 million (NOK 756 million)
• Net commission and other income: NOK 554 million (NOK 451 million)
• Net yield on investments securities: NOK 251 million (NOK 259 million)
• Growth in lending (including loans transferred to SpareBank 1 Boligkreditt) last 12 months: 6.0% (12.6%)
• Growth in deposits last 12 months: 3.1% (- 6.2%)
• Earnings per equity capital certificate: NOK 3.31 (NOK 2.38)

For the first half of the year, net loan loss provisions totalled NOK 120 million, compared with NOK 209 million in the same period last year. In terms of total loans, these provisions represent 0.20%, including loans transferred to SpareBank 1 Boligkreditt. 

"We are experiencing a gradual increase in credit demand from the corporate market. The budding optimism we registered in our part of the country over the last six months is now blooming into higher investments and a higher level of activity for the companies. Our strong market position, low losses and the significant decline in defaults, equip us well to meet continued growth and profitable development", concludes Terje Vareberg.

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

Stavanger, 11 August 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 disclosed in compliance with section 5-12 of the Securities Trading Act.