Profit growth at SpareBank 1 SMN
(Thomson Reuters ONE) -
SpareBank 1 SMN recorded a pre-tax profit of NOK 640m in the first half of
2011, an improvement of NOK 58m over the same period last year.
The half-year accounts reflect strengthened earnings on core business, net
incomings on loan losses, a strong financial position and sound growth in
deposits and home mortgage lending with a net influx of 2,265 retail customers
and 275 corporate customers in the first six months of the year.
Ordinary banking operations have developed well with a profit of NOK 397m
compared with NOK 298m in the same period last year. The Bank's financial
investments have yielded an overall return of NOK 243m compared with NOK 167m in
the first half of last year. The increase is due to a stronger profit
performance by SpareBank 1 Gruppen and higher return on the Bank's bond
portfolio.
Strong financial and liquidity position
SpareBank 1 SMN is well capitalised and has robust funding. Core capital
adequacy as of mid-2011 is 10.7% compared with 10.8% at the same point last
year. The Bank's target is a figure of at least 9.0%.
With liquidity reserves of NOK 16bn, the Bank is well prepared for a period of
limited access to new money market funding. SpareBank 1 SMN is a regional actor
with a balance sheet largely comprising loans to Norwegian customers. The Bank
is therefore to only a minor extent directly affected by the turbulence in
financial markets.
Incomings on losses
SpareBank 1 SMN has taken to income NOK 7m, net, on loan losses as of the first
half-year compared with a net loss of NOK 96m in the same period last year. No
cause was found to revise collectively assessed impairment write-downs in the
period, and new individually assessed write-downs are at a low level.
SpareBank 1 SMN continues to strengthen its market-leader position in Trøndelag
and in Møre and Romsdal. Overall growth in lending to corporates came to 6.8%
over the last 12 months compared with a general credit growth, according to
Statistics Norway, of 2.9% in the same period. In the retail market the Bank
shows 10.0% growth in lending to households, while general growth in this market
according to Statistics Norway was 7.1%.
The Bank's subsidiaries are also showing sound growth and profitability, with
EiendomsMegler 1 Midt-Norge meriting special mention.
SpareBank 1 SMN's total assets came to NOK 120.8bn at the half-year mark,
including loans transferred to co-owned SpareBank 1 Boligkreditt.
Comments from the Group CEO
"SpareBank 1 SMN is performing at a high level, achieving sound growth, a very
low level of defaults and net incomings on loan losses," says Group CEO at
SpareBank 1 SMN, Finn Haugan.
"Since the Bank has exclusively Norwegian exposure in its ordinary business
operations and only limited international exposure when it comes to financial
investments, the Bank's management expects us to be able to handle the
international financial turbulence in a satisfactory manner. Moreover, the Bank
is in an excellent liquidity position with reserves of NOK 16bn assuring 18
months of ordinary operation without access to new external funding" says Mr
Haugan.
First half 2011 - key figures:
· Pre-tax profit: NOK 640m (582m first half 2010)
· Post-tax profit: NOK 505m (449m)
· Return on equity: 13.0% (13.7%)
· Growth in lending: 8.6% (12.6%)
· Loan losses: NOK -7m (96m)
· Growth in deposits: 11.4% (7.8%)
· Core capital adequacy: 10.7% (10.8%)
· Earnings per equity capital certificate: NOK 3.26 (2.82)
Read the entire quarterly report at smn.no.
Trondheim, 10 August 2011.
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 leads the
retail and corporate market, and is positioned in 43 localities across the
region with a total of 54 offices.
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 1,100 staff and
includes the following subsidiaries: SpareBank 1 SMN Finans, EiendomsMegler 1
Midt-Norge, Allegro Finans and SpareBank 1 SMN Regnskap. It 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:
http://hugin.info/144/R/1537417/469258.pdf
Report Q2:
http://hugin.info/144/R/1537417/469252.pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters 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 Thomson Reuters ONE
[HUG#1537417]
Unternehmensinformation / Kurzprofil:
Datum: 10.08.2011 - 11:50 Uhr
Sprache: Deutsch
News-ID 57111
Anzahl Zeichen: 6071
contact information:
Town:
Trondheim
Kategorie:
Business News
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