SMN: Profit growth at SMN
(Thomson Reuters ONE) - SpareBank 1 SMN posted a profit of NOK 279 million before tax in thefirst half of 2009, an improvement of NOK 35 million compared withthe same period last year. The Bank's profit performance featuresstable, good earnings on its core business and a positive trend inreturn on financial investments."We're pleased that we're able to maintain robust earnings and thatlosses remain lower than we might have feared given the economicdownturn we are experiencing," says Finn Haugan, CEO at SpareBank 1SMN.SpareBank 1 SMN is enjoying a substantial influx of new, goodcorporate clients, and maintains a strong position in the retailmarket. The Bank saw first-quarter losses and problem loans declinein volume in the second quarter of 2009. Although higher in the firsthalf-year than in the same period last year, loss levels aremoderate.First half 2009 - highlights * Pre-tax profit: NOK 359m (350m) * Group post-tax profit: NOK 279m (244m) * Return on equity: 10.1% (9.7%) - 5.8% in the 1st quarter, 14.9% in the 2nd quarter * Growth in lending: 4.2% (8.8%) * Losses on loans: NOK 183m (1m), of which NOK 44m comprises higher collective impairment write-downs * Overall profit at affiliates: NOK 67m (52m) * Positive return on other financial assets: NOK 114m (-57m) * Tier 1 capital adequacy: 8.6% (8.6%) * Total capital adequacy: 12.0% (11.5%) * Earnings per PCC: NOK 2.27"SpareBank 1 SMN will focus on enhancing the efficiency of its ownoperations and on following up customers who run up againstextraordinary challenges. I am particularly pleased with theexcellent job being done by the Bank's staff in ensuring theimplementation of our sit-tight strategy. So far this hasstrengthened the Bank's market position and standing, and alsoincreased its earnings. Credit risk appears to have been reduced atthe same time," says Finn Haugan.Norwegian State Finance FundSpareBank 1 SMN will in the course of the third quarter of 2009 applyto the Norwegian State Finance Fund for a supply of tier 1 capital inthe form of hybrid equity worth NOK 1.25 billion. The final decisionon capital supply is conditional on the negotiation of acceptableterms and conditions with the Fund.SpareBank 1 SMN is not aware of factors likely to require a supply ofcapital over and above that described in the report on the first halfof 2009. SMN's intention to nonetheless apply for a supply of tier 1capital is prompted by several factors. The most important of theseis financial institutions' need - demonstrated very clearly by thefinancial crisis - for ample own funds. Further, it is prudent tobuild up further capital buffers to meet any deterioration in theeconomic situation, and thereby ensure that the Bank remains in aposition to maintain normal credit activity. Moreover, the Bank'stier 1 capital is somewhat below the 9% target that the Bank has setitself.If the application is granted and the terms are found acceptable, acapital infusion in the form of hybrid equity will strengthen theBank's tier 1 capital by 2 percentage points.Acquisition of BNbankSpareBank 1 SMN has formalised an agreement with Sparebanken Hedmarkto acquire the latter's 15% shareholding in BNbank. The purchaseamount is NOK 200 million, which prices the entire BNbank at NOK 1.3billion. The purchase is conditional upon government authorisation ofa 40% SMN stake in BNbank as well as acceptance by the board ofdirectors of BNbank and the other shareholders in conformity with theshareholder agreement.SMN currently owns 25% of BNbank, and will, in the event, increasethis stake to 40%. BNbank's strategy, which was considered by theboard in January 2009, stands firm, i.e. to be a national direct bankin the retail market, and a specialised bank in the commercialproperty segment.Contact persons at SpareBank 1 SMN:CEO Finn Haugan on + 47 900 41 002Executive Vice President, Finance, Kjell Fordal on +47 905 41 672Executive Vice President, Corporate Communications, Hans Tronstad on+47 941 78 322Trondheim, 12 August 2009About SpareBank 1 SMNSpareBank 1 SMN is mid-Norway's leading financial services group. Itleads the region's retail and corporate market, and is positioned in56 localities across the region.We aim to be the recommended bank for customers in Mid-Norway, and asa local, independent savings bank we feel a special responsibilityfor stimulating growth and prosperity in the region. We base ourbusiness on closeness to our customers, good accessibility, a fullproduct range and comprehensive financial advisory services.Our head office is in Trondheim. The Group employs about 1,100 staffand includes the following subsidiaries: SpareBank 1 SMN Finans,EiendomsMegler 1 Midt-Norge, Allegro Finans and SpareBank 1 SMNRegnskap.SpareBank 1 SMN is one of six owners of SpareBank 1 Gruppen. Forfurther information, visit our website at www.smn.noDownloadable photo here.http://hugin.info/144/R/1334141/316575.pdfhttp://hugin.info/144/R/1334141/316576.pdfThis announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 12.08.2009 - 08:30 Uhr
Sprache: Deutsch
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