MING:SMN pushes up profit by NOK 400 million
(Thomson Reuters ONE) - SpareBank 1 SMN posted a profit of NOK 685 million for the first ninemonths of 2009, an improvement of NOK 400 million from the sameperiod last year. The Bank's profit performance reflects goodearnings on its core business, high return on financial investmentsand a substantial profit contribution from SpareBank 1 Gruppen."This is a good performance, with a positive showing in the thirdquarter compared with the two preceding ones. Incomes increased, costgrowth was markedly reduced and loss and default levels declined inthe third quarter. At the same time we bolstered our capitalstrength," says CEO Finn Haugan at SpareBank 1 SMN. Moreover, goodresults were recorded by Sparebank 1 gruppen and BN bank, and badwillwas taken to income as a result of SpareBank 1 SMN's increase of itsstake in BN bank to 33%.SpareBank 1 SMN is seeing a good influx of new, good corporateclients, and maintains a strong position in the retail market.Although higher in the first nine months than in the same period lastyear, loss and default levels remain moderate and are lower than weexpected after the first quarter.First nine months - highlights:* Profit: NOK 685m (285m in same period 2008)* Pre-tax profit: NOK 830m (419m)* Return on equity: 16.6% (7.5%)* Growth in lending: 10.0% (16.3%)* Loan losses: NOK 238m (69m)* Tier 1 capital adequacy: 10.6% (8.8%)* Total capital adequacy: 13.9% (11.9%)* Earnings per equity certificate: NOK 5.57 (NOK 2.28)Over NOK 100 billionTotal assets at SpareBank 1 SMN have for the first time in the Bank'shistory passed the NOK 100 billion mark, including loans transferredto part-owned SpareBank 1 Boligkreditt.Throughout the financial crisis SpareBank 1 SMN has stressed thatcustomers should enjoy normal, predictable credit treatment. Theresult is a good customer influx and an enhanced reputation for theBank. This strategy will continue.The Bank has raised its ambition as regards capital strength. Inorder to achieve its goal immediately, the Board of Directors appliedto the State Finance Fund for an infusion totalling NOK 1.25 billionin the form of hybrid capital, and the Bank's tier 1 capital adequacyratio duly strengthened by two percentage points in the thirdquarter. The Board is now considering on a continuous basis whatwould be the most favourable point in time to refinance the hybridcapital in the ordinary capital market. We currently expect this tobe done in 2010.Outlook for the rest of the yearThe Board will continue to focus on measures to strengthen the incomeside, reduce operating expenses and curb loan losses. The Board notesthat the Bank was not hit as hard by the financial crisis as mighthave been expected at the start of 2009. It none the less takes theview that the after-effects of the financial crisis could stilltrouble businesses and individuals. For that reason the Bank'spreparedness and focus on the task of assisting stricken businessesand of curbing the Bank's losses is maintained.The Board expects 2009 to be a satisfactory year for the bank.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, 30 October 2009About SpareBank 1 SMNSpareBank 1 SMN is the region's leading financial services group. Itleads the retail and corporate market, and is positioned in 56municipalities 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/1351435/326626.pdfhttp://hugin.info/144/R/1351435/326627.pdfThis announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 30.10.2009 - 08:14 Uhr
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