SpareBank 1 SMN: Increased profit strengthens financial position
(Thomson Reuters ONE) -
SpareBank 1 SMN recorded a post-tax profit of NOK 1,038m in the first nine
months of 2013, an increase of NOK 222m over the same period last year. SMN's
financial position also strengthened.
The year's first nine months at SpareBank 1 SMN featured a good income trend on
the bank's ordinary operations, increased lending margins, low cost growth, low
loan losses, a strong financial position and ample funding. The third quarter in
isolation shows a profit of NOK 433m, an increase of NOK 127m over the same
quarter last year.
"We are well satisfied with the year's first nine months, in particular with the
profit trend for core business. The bank is now in an even better position to
meet the government requirement of significantly higher core capital. It is
gratifying to see the bank strengthen its market position among households and
small and medium-sized businesses, with sound growth in particular in
Trondheim," says Group CEO Finn Haugan at SpareBank 1 SMN.
Common equity tier 1 (CET1) capital adequacy has risen from 9.3% at end-
September 2012 to 10.7% this year. This spring the Board of Directors adopted a
new capital plan targeting a CET1 ratio of at least 14.5% by 1 July 2016. The
bank currently has no plans to issue equity capital.
Accounts first nine months 2013 - highlights:
· Profit before tax: NOK 1,282m (1,053m as of third quarter-end 2012)
· Profit after tax: NOK 1,038m (816m)
· Return on equity: 13.3% (12.1%)
· Growth in lending: 6.7% (11.4%)
· Growth in deposits: 5.1% (10.5%)
· Loan losses: NOK 68m (42m)
· CET1 ratio: 10.7% (9.3%)
· Earnings per equity certificate (EC): NOK 5.13 (3.99)
Strengthened net interest income
In the first nine months of 2013 net interest income totalled NOK 1,180m, an
increase of NOK 101m compared with the same point last year. Lending margins
have risen due to tighter capital requirements for Norwegian banks.
Commission income and other operating income rose by 32% to NOK 1,081m compared
with the same period last year. The strong growth is ascribed in all essentials
to increased commissions from SpareBank 1 Boligkreditt resulting from higher
margins on home mortgage loans. The bank's subsidiaries continue to show sound
earnings.
Zero growth in lending to corporates
In keeping with the bank's capital plan, growth in lending to larger corporates
is substantially reduced, while lending to small and medium-sized businesses
continues to grow. Twelve-month growth as of end-September 2013 was 0.2% for
lending to corporates overall. Lending to retail customers was 11.4% over the
last 12 months. Lending activity slowed somewhat in the third quarter, but the
bank has strengthened its position.
The bank has low losses and a low default rate, reflecting both the region's
economy and the bank's portfolio quality. Net losses measure only 0.08% of total
lending. Cost growth at the parent bank is reduced to 0%, which is in line with
the bank's plan for increased efficiency.
SpareBank 1 SMN's total assets come to NOK 142m at the end of the third quarter
2013, including loans transferred to co-owned SpareBank 1 Boligkreditt and
SpareBank 1 Næringskreditt.
Healthy economy regionally and nationally
"We see no indications that the business sector in Trøndelag and in Møre and
Romsdal faces a significant change in the economic climate. The region's
businesses broadly show sound profits, and prospects for the rest of 2013 appear
good. The bank's board of directors expect a good profit performance in 2013,"
says Finn Haugan.
Trondheim, 31 October 2013.
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. Market leader
in the retail and corporate segments, with a total of 50 offices.
We aim to be the recommended bank for customers in Trøndelag and in Møre and
Romsdal. Being 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 1,200 full-time
equivalents and includes the following subsidiaries: SpareBank 1 SMN Finans,
EiendomsMegler 1 Midt-Norge, Allegro Finans and SpareBank 1 SMN Regnskap. The
bank 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.
http://quarterlyreport.smn.no/2013/
Presentation:
http://hugin.info/144/R/1739400/583764.pdf
Report:
http://hugin.info/144/R/1739400/583781.pdf
Supplementary information:
http://hugin.info/144/R/1739400/583767.pdf
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(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: SpareBank 1 SMN via Thomson Reuters ONE
[HUG#1739400]
Unternehmensinformation / Kurzprofil:
Datum: 31.10.2013 - 07:31 Uhr
Sprache: Deutsch
News-ID 311197
Anzahl Zeichen: 6165
contact information:
Town:
Trondheim
Kategorie:
Business News
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