SpareBank 1 SMN: Good result for SpareBank 1 SMN
(Thomson Reuters ONE) -
SpareBank 1 SMN recorded a profit of NOK 1,407m for the first nine months of
2014, an increase of NOK 369m compared with the same period last year.
The profit growth is mainly attributable to the group's continued growth in
customers and income from core business. In addition, the accounts show limited
cost growth and very low loan losses. Profit for the third quarter in isolation
was NOK 443m.
"We are well pleased with the profit growth achieved in the first nine months of
the year. With good earnings we are continuing to build up capital in keeping
with the authorities' expectations and requirements. We are certain of attaining
our target of a CET1 capital ratio of at least 13.5% by 30 June 2016. This
target will be reached even though we now have normalised lending both to
corporates and private borrowers," says CEO Finn Haugan.
Accounts for first nine months of 2014 - key figures:
* Pre-tax profit: NOK 1,709m (1,282m first nine months of 2013)
* Post-tax profit: NOK 1,407m (1,038m)
* Return on equity: 16.1% (13.3%)
* Growth in lending: 5.4% (6.7%)
* Growth in deposits: 8.5% (5.1%)
* Loan losses: NOK 55m (68m)
* CET1 capital: 11.5% (10.7%)
* Earnings per equity certificate: NOK 6.97 (5.13)
Increased volume strengthens net interest income
Net interest income totalled NOK 1,305m for the first nine months of 2014, a
substantial increase of NOK 125m from the same period last year. The increase
derives mainly from higher loan and deposit volumes. Commission income and other
operating income increased by 5.0% to NOK 1,140m. Strong growth is primarily
ascribable to increased commissions from SpareBank 1 Boligkreditt as a result of
higher margins on home mortgage loans. The bank's subsidiaries show continued
good earnings.
As targeted in the bank's capital plan, growth in lending to large corporate
customers has been reduced for a period, but is again on the increase. Total
lending to business and industry rose by 2.0% in in the 12 months to end-
September. Lending to retail customers rose by 7.6% in the 12 months to end-
September and the bank reinforced its market leader position, according to
figures from Statistics Norway.
Very low losses
The bank has very low losses and low defaults. Net losses measure only 0.06% of
total lending in the first nine months of 2014.
"The low loss figures mirror the situation in our region, where households and
the business sector alike are characterised by secure and sound finances. The
figures are also confirmation of our banking skills," says Finn Haugan.
Zero growth in costs
The board of directors has adopted new targets for the bank's cost trend. They
entail zero growth in the bank's nominal costs in 2015 and 2016.
"A shift in customer behaviour towards more self-service solutions and growing
automation of internal work processes require changes in how we distribute our
products and services. Through project SMN 2020 we are developing a new service
concept with an adjusted cost level to make the bank the best for customer
experience and give it renewed competitive power.
At end-September 2014, SpareBank 1 SMN's total assets amount to NOK 147bn,
including loans transferred to the co-owned SpareBank 1 Boligkreditt and
SpareBank 1 Næringskreditt.
Continued good trend in the region
In collaboration with Menon Business Economics, SpareBank 1 SMN has carried out
a comprehensive and thorough analysis of regional economic development trends.
This analysis was published in the bank's economic barometer earlier this week.
In the barometer the bank presents economic forecasts for each of the three
counties in our region.
The conclusion for the next two years is fairly clear: the economy of all three
counties will continue on a good trend, but at a somewhat slower pace than the
preceding year. The oil price and lower pace of investment in the oil and gas
sector will have consequences, especially in Møre and Romsdal. North Trøndelag
county will also see slightly lower output growth. For both counties, however,
the change is limited to a reduction from 2 to 1 per cent growth. South
Trøndelag, which has a large cyclically independent services sector, will
maintain growth of 2 per cent.
"The findings in the bank's economic barometer support the bank's soberly
optimistic view for the rest of 2014 and next year," says Finn Haugan.
Trondheim, 31 October 2014.
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 49 offices located at 43
sites across the region's municipalities.
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 Regnskapshuset
SMN. 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/2014/
3Q Report:
http://hugin.info/144/R/1867382/656159.pdf
Supplementary information:
http://hugin.info/144/R/1867382/656160.pdf
3Q Presentation:
http://hugin.info/144/R/1867382/656158.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 GlobeNewswire
[HUG#1867382]
Unternehmensinformation / Kurzprofil:
Datum: 31.10.2014 - 07:46 Uhr
Sprache: Deutsch
News-ID 348592
Anzahl Zeichen: 7144
contact information:
Town:
Trondheim
Kategorie:
Business News
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