SpareBank 1 SMN: Good result and low losses
(Thomson Reuters ONE) -
SpareBank 1 SMN recorded a profit of NOK 441m in the first quarter 2015 compared
with NOK 500m in the same period last year. Ordinary banking operations show
profit growth.
The quarterly accounts reflect strengthened core business with increased net
interest income and limited cost growth, low loan losses and defaults, high
deposit and lending growth and a strengthened financial position. Compared with
the first quarter last year profit is reduced, mainly due to an extraordinary
sale gain of NOK 148m in the same quarter last year.
"We are well satisfied with developments so far this year. Results and activity
levels are in keeping with our plans. It is especially satisfying to note
continued very low defaults and low losses," says CEO Finn Haugan at SpareBank
1 SMN.
Increased capital adequacy
The bank's capital plan targets a CET1 ratio of at least 13.5% by 30 June 2016.
The level at the end of the first quarter 2015 was 12.3%, an increase of 1.2
percentage points from the same point last year.
The increase is mainly due to the net effect of increase residential mortgage
weights and implementation of an advanced IRB approach. The latter provides a
new calculation of regulatory capital charges against credit risk in the
corporate market. The bank's capital plan to achieve the above target without
launching an ordinary stock issue stands firm.
First quarter accounts 2015 - key figures:
* Pre-tax profit: NOK 567m (597m in Q1 2014)
* Post-tax profit: NOK 441m (500m)
* Return on equity: 14.1% (17.7%)
* Growth in lending: 10.0% (4.4%)
* Growth in deposits: 10.9% (5.4%)
* Loan losses: NOK 22m (17m)
* CET1 capital: 12.3% (11.1%)
* Earnings per equity certificate: NOK 2.18 (2.48)
Strengthened net interest income
Net interest income totalled NOK 467m in the first quarter 2015, an increase of
NOK 55m over the same period last year. The increase is due mainly to increased
volume of both lending and deposits and increased deposit margins. Lending
margins were reduced as a result of increased competition. Commission income and
other operating income totalled NOK 377m, down NOK 8m compared with the same
period last year. The change is ascribable to lower margins on residential loans
sold to SpareBank 1 Boligkreditt, while other commission income has risen.
Taking market shares
SpareBank 1 SMN increased its lending to retail borrowers by 8.0% to NOK
75.2bn. This growth is higher than the general market growth, and the bank
further strengthened its market position in the year's first three months.
Lending to corporates rose by 13.2% to NOK 47.8bn. This growth is somewhat
higher than the bank's adopted capital plan allows for. Forecasts none the less
show that we will be in line with the capital plan for the year as a whole.
Zero growth in costs
The parent bank's costs increased by 0.7% in the first three months of the year.
The directors adopted in autumn 2014 new cost trend targets for the bank,
entailing zero growth in the bank's nominal costs in 2015 and 2016.
There is a major potential for efficiency enhancements. The bank has a
substantial focus on digitalisation of a number of customer processes which are
successively followed by digitalisation of, and hence more efficient and
effective, production processes. The bank is considering changes to its
distribution strategy to enable this to better reflect changed customer
behaviour.
Low losses
The bank has low losses and low defaults. Net losses measure a mere 0.07% of
total outstanding loans. The very low loss and default figures reflect both the
macroeconomic picture in Trøndelag and Møre and Romsdal and the bank's close
attention to quality in its lending process and customer follow up.
SpareBank 1 SMN expects a slight weakening of the economic climate in 2015,
mainly driven by the oil price fall and weak international growth impulses. Our
market area appears to be less vulnerable than is the case for Norway as a
whole.
The bank has only limited credit exposure to oil service related activity,
totalling about 4% of aggregate lending. After a thorough review of this
portfolio, no basis has been found for individually assessed impairment write-
downs on exposures to this sector or for changes in collectively assessed
impairment write-downs.
Trondheim, 8 May 2015.
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
http://quarterlyreport.smn.no/2015/
About SpareBank 1 SMN
SpareBank 1 SMN is the region's leading financial services group. It is the
market leader in the retail and corporate segments, with a total of 49 offices
located at 42 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 located in Trondheim. The Group employs about 1,200 full-time
equivalents and includes the following subsidiaries: SpareBank 1 SMN Finans
Midt-Norge, EiendomsMegler 1 Midt-Norge, Allegro Finans and SpareBank 1
Regnskapshuset SMN. SpareBank 1 SMN 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.
Presentation Q1 2015:
http://hugin.info/144/R/1920026/687725.pdf
Report Q1 2015:
http://hugin.info/144/R/1920026/687724.pdf
Supplementary information:
http://hugin.info/144/R/1920026/687726.pdf
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire clients. The owner of this announcement warrants that:
(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#1920026]
Unternehmensinformation / Kurzprofil:
Datum: 08.05.2015 - 07:31 Uhr
Sprache: Deutsch
News-ID 391840
Anzahl Zeichen: 7113
contact information:
Town:
Trondheim
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 188 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"SpareBank 1 SMN: Good result and low losses"
steht unter der journalistisch-redaktionellen Verantwortung von
SpareBank 1 SMN (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
