"This is a good performance, with a positive showing in the third quarter compared with the two preceding ones. Incomes increased, cost growth was markedly reduced and loss and default levels declined in the third quarter. At the same time we bolstered our capital strength," says CEO Finn Haugan at SpareBank 1 SMN. Moreover, good results were recorded by Sparebank 1 gruppen and BN bank, and badwill was taken to income as a result of SpareBank 1 SMN's increase of its stake in BN bank to 33%.
SpareBank 1 SMN is seeing a good influx of new, good corporate clients, and maintains a strong position in the retail market. Although higher in the first nine months than in the same period last year, loss and default levels remain moderate and are lower than we expected after the first quarter.
First nine months - highlights:
Over NOK 100 billion
Total assets at SpareBank 1 SMN have for the first time in the Bank's history passed the NOK 100 billion mark, including loans transferred to part-owned SpareBank 1 Boligkreditt.
Throughout the financial crisis SpareBank 1 SMN has stressed that customers should enjoy normal, predictable credit treatment. The result is a good customer influx and an enhanced reputation for the Bank. This strategy will continue.
The Bank has raised its ambition as regards capital strength. In order to achieve its goal immediately, the Board of Directors applied to the State Finance Fund for an infusion totalling NOK 1.25 billion in the form of hybrid capital, and the Bank's tier 1 capital adequacy ratio duly strengthened by two percentage points in the third quarter. The Board is now considering on a continuous basis what would be the most favourable point in time to refinance the hybrid capital in the ordinary capital market. We currently expect this to be done in 2010.
Outlook for the rest of the year
The Board will continue to focus on measures to strengthen the income side, reduce operating expenses and curb loan losses. The Board notes that the Bank was not hit as hard by the financial crisis as might have been expected at the start of 2009. It none the less takes the view that the after-effects of the financial crisis could still trouble businesses and individuals. For that reason the Bank's preparedness and focus on the task of assisting stricken businesses and of curbing the Bank's losses is maintained.
The Board expects 2009 to be a satisfactory year for the bank.
Contact persons at SpareBank 1 SMN:
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
Trondheim, 30 October 2009
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 56 municipalities across the region.
We aim to be the recommended bank for customers in Mid-Norway, 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.
SpareBank 1 SMN is one of six owners of SpareBank 1 Gruppen. For further information, visit our website at www.smn.no
Downloadable photo here.
