SpareBank 1 SMN posted a pre-tax profit of NOK 325m in the first quarter of 2011, an advance of NOK 70m over the same period last year.
The quarterly accounts reflect solid banking operations, net incomings on loan losses and good return on financial investments. The Bank has achieved satisfactory growth in lending and deposits alike with a net influx of 950 retail customers and 125 corporate customers in the first three months of the year.
"We are very pleased with the profit trend at the Bank. A solid effort is being made throughout the Group. This is producing sound growth and increased revenues, and we are successfully expanding our market share from an already very high level," says Group CEO Finn Haugan at SpareBank 1 SMN.
"The Bank's accounts confirm that things are going well in Trøndelag and in Møre and Romsdal. Losses and defaults are insignificant and, thanks to the first-rate work done on doubtful exposures, cases have been cleared up and amounts lost have been returned to the accounts," Mr Haugan points out.
Ordinary banking operations have developed satisfactorily with a pre-loss profit of NOK 200m on core business compared with NOK 171m in the same period last year, adjusted for the change in the early retirement (AFP) scheme. The Bank's financial investments have yielded an overall return of NOK 65m compared with a negative NOK 5m last year.
Incomings on losses
SpareBank 1 SMN has taken to income NOK 6m, net, on loan losses as of the first quarter compared with a net loss of NOK 68m in the same period last year. No cause was found to revise collectively assessed impairment write-downs in the period.
SpareBank 1 SMN continues to strengthen its market-leader position in Trøndelag and in Møre and Romsdal. Overall lending growth in the corporate market came to 13.9% over the last 12 months compared with a general credit growth, according to Statistics Norway, of 2.8% (as of 28.02.11). Just over half of the Bank's lending growth is accounted for by loans taken over from BN Bank in Ålesund. In the retail market the Bank shows 9.6% growth in lending to households. Here too the Bank is gaining new market shares, confirmed by figures from Statistics Norway showing general growth of 6.6% for households (as of 28.02.11).
The Bank's subsidiaries are also showing sound growth and profitability, in particular EiendomsMegler 1 Midt-Norge and SpareBank 1 SMN Regnskap.
Increased focus on insurance
Over the past year SpareBank 1 SMN has sustantially boosted its competence in the insurance area, and has gained an edge in the market by obtaining authorisation for all its roughly 300 advisers in the retail market through the industry's approval scheme (GSR). The Bank's insurance portfolio has grown by 15% in the past 12 months.
"We have strengthened our position as an insurance services provider. Our ambition is to establish a market position in insurance just as strong as in traditional banking services, and we are getting close. Customers appreciate good advice and good service. According to Norsk Kundebarometer 2011, SpareBank 1 Skadeforsikring is the best liked insurer in Norway", Group CEO Finn Haugan at SpareBank 1 SMN points out.
First quarter 2011 - highlights:
· Pre-tax profit: NOK 325m (225m first quarter 2010)
· Post-tax profit: NOK 255m (188m)
· Return on equity: 13.2% (12.1%)
· Growth in lending: 11.4% (10.0%)
· Loan losses: NOK -6m (68m)
· Growth in deposits: 14.1% (4.8%)
· Tier 1 capital adequacy: 10.6% (11.0%)
· Earnings per equity capital certificate: NOK 1.64 (1.09)
Total assets at SpareBank 1 SMN as of the fourth quarter come to NOK 114.1bn, including loans transferred to co-owned SpareBank 1 Boligkreditt.
Read the entire quarterly report at smn.no here!
Trondheim, 6 May 2011.
Contact persons at SpareBank 1 SMN:
Group CEO Finn Haugan on +47 900 41 002
Executive Vice President, Finance, Kjell Fordal on +47 905 41 672
Executive Vice President, Corporate Communications, Hans Tronstad on +47 941 78 322
About SpareBank 1 SMN
SpareBank 1 SMN is the region's leading financial services group. It leads the retail and corporate market, and is positioned in 43 localities across the region with a total of 54 offices.
We aim to be the recommended bank for customers in Trøndelag and in Møre and Romsdal, and as a local, independent savings bank we feel a special responsibility for stimulating growth and prosperity in the region. We base our business on closeness to our customers, good accessibility, a full product range and comprehensive financial advisory services.
Our head office is in Trondheim. The Group employs about 1,100 staff and includes the following subsidiaries: SpareBank 1 SMN Finans, EiendomsMegler 1 Midt-Norge, Allegro Finans and SpareBank 1 SMN Regnskap. It is the largest shareholder in BN Bank with a 33% stake.
SpareBank 1 SMN is one of six owners of SpareBank 1 Gruppen. For further information, visit our website at www.smn.no.