SpareBank 1 SMN

Best ever profit performance

In presenting his hundredth and very last quarterly financial accounts for SpareBank 1 SMN, retiring Group CEO Finn Haugan could point to a record-high post-tax profit of NOK 1,046m for the first three months of 2019. 

"It is very pleasing to round off almost 28 years at SpareBank 1 SMN in this way. Behind the profit figure lies a gain of NOK 460m and, in addition, the group's underlying operations are on a good trend," says Finn Haugan who now hands the position of group CEO to Jan-Frode Janson. 

The gain relates to the establishment of Fremtind Forsikring, in which SpareBank 1 Gruppen and DNB have merged their non-life insurance businesses. The quarterly profit figure without this gain would have been NOK 586m, delivering a return on equity of 12.8 per cent. This is NOK 120m higher than last year's first-quarter profit. The improvement is down to increased operating income and good return on financial investments. 

Net interest income grew by NOK 81m to NOK 649m compared with the same period last year. The growth comes of increased lending and higher margins on deposits. In the first quarter of 2019 losses on loans came to NOK 67m compared with NOK 48m in the same quarter last year. The losses stem mainly from oil-related activity. The bank expects loan losses to be lower this year than last year. 

Market position strengthened

The bank increased its lending to personal customers by 8.3 per cent to NOK 108.7bn in the 12 months to end-March, i.e. by a considerably higher margin than the general market growth. Lending to corporates increased by 3.4 per cent to NOK 52.4bn, with the growth coming mainly from small businesses in line with the bank's strategy.

"We believe in a model whose focus is on local presence and local-level decisions. 350 businesses have opted for SpareBank 1 SMN as their new bank in the first quarter. We view this as an expression of confidence. Over the next few weeks I will be visiting all our offices and many of our customers. I look forward to doing so," says incoming Group CEO Jan-Frode Janson.

Accounts for the first three months of 2019 - key figures:

• Pre-tax profit: NOK 1,155m (596m first quarter of 2018)
• Post-tax profit: NOK 1,046m (446m)
• Return on equity: 23.3% (11.2%)
• Growth in lending: 6.6% (7.9%)
• Growth in deposits: 6.8% (8.2%)
• Loan losses: NOK 67m (48m)
• CET1 ratio: 14.8% (14.6%)
• Earnings per equity certificate: NOK 5.02 (2.21)

Trondheim, 9 May 2019

Contact persons at SpareBank 1 SMN:

Executive Director, Finance, Kjell Fordal on [phone]

Head of Corporate Communications, Hans Tronstad on [phone]

This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act) 

https://quarterlyreport.smn.no/2019/

 

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Source: SpareBank 1 SMN via Globenewswire