Good profit performance by SpareBank 1 SMN
(Thomson Reuters ONE) -
With a pre-tax profit of NOK 255m in the first quarter of 2010, SpareBank 1 SMN
has more than doubled the figure posted in the same quarter last year.
The profit improvement of NOK 143m is in large measure due to changes in the
contractual early retirement scheme (AFP), entailing a write-back of accrued
pension liability with a one-off profit effect of NOK 107m.
"While noting this write-back, we are pleased with our first-quarter
performance. Banking operations are stable and good with substantial customer
growth, very low growth in costs, moderate losses and a low and falling level of
defaults," says CEO Finn Haugan at SpareBank 1 SMN.
Despite uncertainty with regard to the economy, the Board of Directors of
SpareBank 1 SMN expects 2010 to be a good year for the bank.
Successful issue
In the first quarter SpareBank 1 SMN launched a successful rights issue along
with an issue of hybrid equity in the ordinary capital market. The rights issue
was oversubscribed by 75 per cent, and foreign investors' stake in SpareBank 1
SMN has risen by 1.5 percentage points to 14 per cent.
The bank's high solidity is thus maintained while its equity capital comes
across as more robust. Tier 1 capital adequacy as of the first quarter 2010 was
11.0 per cent.
First quarter - highlights
* Pre-tax profit: NOK 255m (NOK 112m as of Q1 2009)
* Post-tax profit: NOK 188m (NOK 74m)
* Return on equity: NOK 12.1% (5.8%)
* Growth in lending: 10.0% (12.6%)
* Loan losses: NOK 68m (NOK 110m)
* Growth in deposits: 4.8% (7.6%)
* Tier 1 capital ratio: 11.0% (8.4%)
* Earnings per ECC: NOK 1.09 (NOK 0.55)
Strong influx of new customers
The substantial influx of new, good corporate customers continues, with 115 new
customers acquired in the first quarter. Overall growth in lending to corporate
borrowers over the last 12 months was 14.2 per cent compared with a general
credit growth, according to Statistics Norway, of minus 1.7 per cent. Parts of
the bank's lending growth refer to loans taken over from BN Bank in Ålesund.
SpareBank 1 SMN maintains a very strong position in the retail market with 7 per
cent growth in lending to residential borrowers. Here too, the bank is capturing
new market share, as indicated by figures from Statistics Norway showing a
general growth of 6.4 per cent. The Bank's equity fund and pension products
portfolios have expanded by 43 per cent.
Total assets at SpareBank 1 SMN were NOK 103bn as of the first quarter,
including loans transferred to the part-owned SpareBank 1 Boligkreditt.
Trondheim, 6 May 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 leading financial services group. It leads the
field in the retail and corporate market, and has 56 offices positioned in 47
localities across the region's municipalities.
Our aim is to be the recommended bank for customers in the counties of Trøndelag
and Møre og 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, as well as being 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
Downloadable photo here.
[HUG#1412443]
Report: http://hugin.info/144/R/1412443/364708.pdf
Presentation: http://hugin.info/144/R/1412443/364711.pdf
Unternehmensinformation / Kurzprofil:
Datum: 06.05.2010 - 08:26 Uhr
Sprache: Deutsch
News-ID 20375
Anzahl Zeichen: 0
contact information:
Town:
Trondheim
Kategorie:
Business News
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