SpareBank 1 SMN recorded a profit of NOK 606m in the first half of 2013, an increase of NOK 96m over the same period last year. SMN's financial position also strengthened.
The quarterly accounts reflect a good income trend on ordinary operations, increased lending margins, high growth in home mortgage lending, low loan losses and a strong financial position.
"We are well satisfied with the first half-year, in particular with the profit trend for core business. The figures are down to sound banking, putting the bank in an even better position to meet the government requirement of significantly higher core capital," says Group CEO Finn Haugan at SpareBank 1 SMN.
SpareBank 1 SMN was recently elected Norway's best bank by the worldwide finance magazine Euromoney.
"This is a fine accolade going forward, and confirms SpareBank 1 SMN ability to perform well. Euromoney's vote incentivises renewed effort," says Group CEO Finn Haugan at SpareBank 1 SMN.
Common equity tier 1 (CET1) capital adequacy has risen from 9.5% as of mid-2012 to 10.3%. This spring the Board of Directors adopted a new capital plan targeting a CET1 ratio of at least 14.5% by 1 July 2016. The bank currently has no plans to issue equity capital.
Accounts first half 2013 - highlights:
· Profit before tax: NOK 782m (661m in first half 2012)
· Profit after tax: NOK 606m (510m)
· Return on equity: 11.9% (11.7%)
· Growth in lending: 8.4% (10.6%)
· Growth in deposits: 7.3% (12.0%)
· Loan losses: NOK 38m (25m)
· CET1 ratio: 10.3% (9.5%)
· Earnings per equity certificate (EC): NOK 2.99 (2.63)
High growth in home mortgage lending
In the first half 2013 overall growth in lending was 5.2% to the retail segment and 1.9% to the corporate segment. Twelve-month growth to the same segments was 14.0% and 0.7% respectively. The bank has strengthened its market position among households, while the lower growth in lending to the corporate segment is as planned, based on the government requirement of increased capital adequacy.
The bank has low losses and a low default rate, which reflect both the region's economy and the bank's portfolio quality. Net losses measure only 0.07% of total lending. Cost growth at the parent bank is reduced to 3.1%, which is in line with the bank's plan for increased efficiency.
Commission income and other operating income rose by 36% to NOK 713m compared with the first half 2012. The strong growth is ascribed in all essentials to increased commissions from SpareBank 1 Boligkreditt resulting from higher margins on home mortgage loans. The bank's subsidiaries show continued solid progress.
At the end of the first half 2013 SpareBank 1 SMN's total assets came to NOK 143bn, including loans transferred to the co-owned SpareBank 1 Boligkreditt and SpareBank 1 Næringskreditt.
Healthy economy regionally and nationally
"So far SpareBank 1 SMN has not seen clear indications that the business sector in Trøndelag and in Møre and Romsdal has been particularly affected by the crisis in the euro area. Business life in the region shows continued growth and sound profits, and the prospects for the rest of 2013 appear good," says Finn Haugan.
Trondheim, 14 August 2013.
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. Market leader in the retail and corporate segments, with a total of 50 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 1,200 full-time equivalents and includes the following subsidiaries: SpareBank 1 SMN Finans, EiendomsMegler 1 Midt-Norge, Allegro Finans and SpareBank 1 SMN Regnskap. The bank 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.
http://quarterlyreport.smn.no/2013/
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Source: SpareBank 1 SMN via Thomson Reuters ONE
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