SpareBank 1 SMN : Sound growth and lower losses yielded profit growth
(Thomson Reuters ONE) -
SpareBank 1 SMN posted a profit of NOK 358m in the first quarter of the current
year, an increase of NOK 47m compared with the same period last year. The bank
notes a large influx of new customers, both private individuals and firms.
SpareBank 1 SMN's results thus far in 2017 feature high growth in the customer
base, good sales in all product areas and lower losses. Financial strength in
terms of CET1 capital is at the same level as at the end of the previous
quarter.
"We are well pleased with the first quarter performance. It shows we are
succeeding with our strategy as a digital bank with a personal and local
signature. The digital transformation of the bank involves close collaboration
with our accomplished staff. Our aim is to be right at the forefront in digital
solutions, and the very best in personal advice", says Finn Haugan, Group CEO at
SpareBank 1 SMN.
Market position strengthened
The bank increased its lending to personal customers by 11.0 per cent to NOK
91.3bn in the twelve months to end-March. There is a plentiful supply of new
customers, with an increase of 2,700 personal customers noted in the first three
months of the year.
Lending to corporate customers rose by 3.1 per cent to NOK 48.7bn. This is in
keeping with the bank's strategy. The bank notes a good influx of small and
medium-sized businesses, whereas the volume of large exposures is being
gradually reduced.
"In addition to high lending growth we are succeeding well with sales of other
products such as estate agency, accounting services and insurance products. We
put a lot of effort into developing new digital customer solutions to secure a
basis for continued high growth," says Finn Haugan.
"With its 25 per cent stake in the new Vipps, SpareBank 1 will be at centre-
stage in developing the payment solution of the future. Vipps will establish
itself as an even stronger and more distinct leading provider in the Norwegian
market," says Finn Haugan.
Increased net interest income
Net interest income rose by NOK 53m to NOK 522m compared with the same quarter
last year. The increase is mainly due to a higher volume of residential mortgage
lending.
At the end of the first quarter the CET1 ratio stands at 14.8 per cent. The
target of a CET1 ratio of 15.0 per cent by 31 December 2017 will be met.
Lower losses
The bank's losses have almost halved compared with the same quarter last year,
to NOK 89m. The losses relate in the main to a small number of exposures in the
offshore sector.
"The decline is in keeping with our expectations at the start of the year. We
expect lower losses in 2017 than in 2016. Developments in the offshore sector
remain a matter of uncertainty, and loss assessments ahead will in large measure
be based on the likely need for a new round of restructuring a few years from
now," says Finn Haugan.
First quarter accounts 2017 - key figures:
* Pre-tax profit: NOK 454m (383m in Q1 2016)
* Post-tax profit: NOK 358m (311m)
* Return on equity: 9.4% (8.9%)
* Growth in lending: 8.1% (5.4%)
* Growth in deposits: 9.9% (5.4%)
* Loan losses: NOK 89m (170m)
* CET1 capital ratio: 14.8% (13.6%)
* Earnings per EC: NOK 1.73 (1.49)
Trondheim, 3 May 2017
Contact persons at SpareBank 1 SMN:
Executive Vice President, Finance, Kjell Fordal on +47 905 41 672
Executive Vice President, Corporate Communications, Hans Tronstad on
+47 941 78 322
This information is subject to the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
http://quarterlyreport.smn.no/2017/
Report 1Q 2017:
http://hugin.info/144/R/2101399/796704.pdf
Supplementary infomation:
http://hugin.info/144/R/2101399/796705.pdf
Presentation:
http://hugin.info/144/R/2101399/796703.pdf
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: SpareBank 1 SMN via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 03.05.2017 - 14:30 Uhr
Sprache: Deutsch
News-ID 540017
Anzahl Zeichen: 4911
contact information:
Town:
Trondheim
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 225 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"SpareBank 1 SMN : Sound growth and lower losses yielded profit growth"
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).
