SpareBank 1 SMN: Good financial performance down to solid operations
(Thomson Reuters ONE) -
SpareBank 1 SMN recorded a net profit of NOK 771m in the first half of the
current year compared with NOK 871m in the same period last year. The bank has
increased its loan impairment write-downs in keeping with indications given
after the previous quarter.
The first half-year shows a good result for core business with increased incomes
and reduced costs, a continued low level of defaults, increased losses, a strong
financial position and good growth in home mortgage lending. The bank's
subsidiaries are on a positive trend, and financial assets yielded high returns
in the period.
"We are pleased with our first half performance. Underlying operations at the
bank are good. We note good, sound growth in home financing. The growth comes
despite the tighter lending practices we introduced early in 2016" says Group
CEO Finn Haugan at SpareBank 1 SMN.
"Profits are affected by increased losses, essentially on oil related activity
in Sunnmøre. However, we see no clear indications of ripple effects from this
sectoral crisis. Unemployment in the region remains low, house prices continue
to show a moderate increase and the level of defaults at the bank is still very
low" says Mr Haugan.
Strengthened market position
The bank increased its lending to retail borrowers by 10.2 per cent to NOK
85.2bn in the twelve months to end-June. The bank has accordingly further
strengthened its leading market position in the region. According to Statistics
Norway the general level of market growth was 5.9 per cent on a national basis.
"The influx of new retail customers continues and was even higher in the second
quarter than in the preceding quarter. This may be because our concept of
excellent digital customer solutions combined with access to local advisers to
serve any special needs that arise has gained even greater clarity in comparison
with some of our competitors" says Finn Haugan.
Lending to corporate clients was broadly unchanged with an increase of 0.4 per
cent to NOK 47.4bn. This is in keeping with the bank's capital plan and also
reflects reduced demand for funding from business and industry. The bank has
good customer growth among small and medium sized businesses.
Accounts for first half 2016 - key figures:
* Pre-tax profit: NOK 930m (1,080m in first half 2015)
* Post-tax profit: NOK 771m (871m)
* Return on equity: 10.9% (13.7%)
* Growth in lending: 6.5% (8.4%)
* Growth in deposits: 1.3% (11.4%)
* Loan losses: NOK 287m (56m)
* CET1 capital ratio: 14.1% (12.7%)
* Earnings per EC: NOK 3.71 (4.31)
Stable net interest income
Net interest income totalled NOK 942m in the first half of the current year, an
increase of NOK 8m from the same period last year. Increased volumes of loans
and deposits alike as well as increased margins on deposits push up the total,
while reduced margins on home mortgage loans make the opposite contribution.
The bank's capital plan targets a CET1 capital ratio of at least 14.5 per cent
by 31 December 2016. As at end-June 2016 the CET1 ratio stands at 14.1 per cent.
The bank expects and assumes that the target will be reached without launching a
stock issue.
Increased losses
While defaults remain at a low level, losses rose by NOK 118m in the second
quarter to reach NOK 287m at the half-year mark. This is in all essentials down
to a small number of exposures in oil related activity. The increase is in
keeping with the bank's estimate after the previous quarter entailing an
estimated loss in the region of NOK 450m-500m for the full year 2016.
"Some of our offshore clients in Sunnmøre are facing challenges. We are working
closely with these clients to find good solutions to enable them work their way
through the sectoral crisis. The solutions we are working on will be of a
lasting nature, thereby limiting the risk to the bank" says Finn Haugan.
Trondheim, 11 August 2016
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. 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 Markets,
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.
http://quarterlyreport.smn.no/2016/
Presentation:
http://hugin.info/144/R/2034574/757692.pdf
Report:
http://hugin.info/144/R/2034574/757691.pdf
Supplementary Information:
http://hugin.info/144/R/2034574/757693.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#2034574]
Unternehmensinformation / Kurzprofil:
Datum: 11.08.2016 - 10:30 Uhr
Sprache: Deutsch
News-ID 488519
Anzahl Zeichen: 6828
contact information:
Town:
Trondheim
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 264 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"SpareBank 1 SMN: Good financial performance down to solid operations"
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).
