With strengthened banking operations and reduced loan losses, SpareBank 1 SMN achieved a pre-tax profit of NOK 904m in the first nine months of 2010, an increase of NOK 73m over the same period last year.
The improvement is related to a good profit performance generated by the Bank's core business featuring lower loan losses and lower costs.
"We are very pleased with SpareBank 1 SMN's profit growth, and would above all highlight strengthened earnings on the Bank's ordinary operations. We are seeing a good customer influx, strong growth in home mortgage lending and net increase of more than 2,600 in retail customers", says CEO Finn Haugan at SpareBank 1 SMN.
Despite general uncertainty with regard to the trend in the economy, the Board of Directors of SpareBank 1 SMN expects 2010 to be a good year for the Bank.
First nine months 2010 - highlights:
- Pre-tax profit: NOK 904m (NOK 831m in the same period 2009)
- Post-tax profit: NOK 704m (NOK 686m)
- Return on equity: 13.9% (16.6%)
- Growth in lending: 12.4% (10.0%)
- Loan losses: NOK 108m (NOK 238m)
- Growth in deposits: 2.8% (5.4%)
- Tier 1 capital adequacy: 10.6% (10.6%)
- Earnings per equity capital certificate: NOK 4.43 (NOK 5.05)
Strong customer growth
The substantial influx of new, good corporate clients, continues. Overall lending growth in the corporate market was 17.0 per cent in the 12 months to end-September compared with a general credit growth of 1.3 per cent according to Statistics Norway. Just over half of the Bank's lending growth is accounted for by loans taken over from BN Bank in Ålesund.
SpareBank 1 SMN maintains a solid position in the retail market with a 9.1 per cent rise in lending for residential purposes. Here too the Bank is taking new market shares, cf. figures from Statistics Norway showing a general growth of 6.3 per cent in the same period. Lending growth quickened over the period, with a preliminary peak in September.
SpareBank 1 SMN's total assets as of the third quarter are NOK 114.3bn, including loans transferred to part-owned SpareBank 1 Boligkreditt.
Trondheim, 4 November 2010.
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
About SpareBank 1 SMN
SpareBank 1 SMN is the region's foremost financial services group. It leads the field in the retail and corporate market, and has 53 offices positioned in 42 localities across the region's municipalities.
Our aim is to be the recommended bank for customers in the counties of Trøndelag and Møre an 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 also the largest shareholder in BN Bank with a stake of 33 per cent.
SpareBank 1 SMN is one of six owners of SpareBank 1 Gruppen. For further information, visit our website at www.smn.no
