General income growth, particularly in the area of savings and investments, contributed to very solid results. The return on equity after tax was 22.3 per cent.
- These are the group's best ever half-year results. All the business areas in the group showed improvement, and the ordinary banking operations are doing well despite the great pressure on the margins. This is very satisfying, says Terje Vareberg, CEO of SpareBank 1 SR-Bank.
The group's strong focus on existing and new markets - Agder and Hordaland - is showing results. The group's subsidiaries are also showing an impressive development.
- The strong volume growth for both loans and deposits is continuing. We have increased the group's interest margin at the same time. Net interest income has increased significantly as a result of this. This is confirmation that we are strengthening our market position, says Vareberg.
Highlights for the first half of 2007:
Group profit before tax: NOK 644 million (NOK 514 million)
Return on equity after tax: 22.3% (21.2%)
Income growth: 18.5% (7.9%)
Net interest income: NOK 605 million (NOK 547 million)
Net commission and other income: NOK 408 million (NOK 333 million)
Net return on investment securities: NOK 250 million (NOK 186 million)
Growth in loans: 29.5% (13.8%) over last 12 months, 16.1% for the retail market (RM) and 58.7% for the corporate market (CM)
Growth in deposits: 16.8% (12.6%) over last 12 months, 8.1% for RM and 24.6% for CM
Earnings per primary capital certificate: NOK 11.3 (NOK 9.5)
(Figures for corresponding period in 2006 are shown in parentheses.)
- We are making a major effort so that we can deliver top results in the future as well. This autumn we are implementing an extensive improvement programme for all levels of the organisation. Our goal is to strengthen our position further. We have great expectations for the results of this, Vareberg concludes.
Thor-Christian Haugland, Executive Vice President Communications
Telephone 51 50 92 81/480 31633
SpareBank 1 SR-Bank is Norway’s second largest savings bank and operates in the Rogaland, Agder and Hordaland markets. We provide financial products and services, including loans and deposits, mutual funds and asset management, insurance and pension savings, payment and financing services, real estate brokerage and services related to the money and capital market. The head office is in Stavanger.