P R E S S R E L E A S E

Transcription

1 P R E S S R E L E A S E SpareBank 1 SR-Bank strengthens its market position Group profit before tax of NOK 103 million 12-month growth in lending of 17 % Very good growth in deposits, 12-month growth of 18 % Significant growth in commission income from sale of securities Cost percentage of 1.69 % Securities affected by weak price trend in the market Steady default and few losses Good growth in deposits and increased revenues The SpareBank 1 SR-Bank group achieved a profit before tax of NOK 103 million in the first quarter. The group's regular operations show a healthy increase in other income; commission income in particular is positive with a growth of 28 %. The group's profit is NOK 19 million lower than in 2000, and is affected by the development in the securities market and less favourable framework conditions linked to full guarantee fund charges and the changed value-dating rules of the Financial Contracts Act. The bank's share of the loss in the SpareBank 1 Gruppen AS amounts to NOK 14.5 million, which is mainly the result of weak development in the securities market as well as VAT and goodwill depreciation in connection with the acquisition of Vår Bank og Forsikring. The group's growth in lending is weak in comparison with the bank's goal, and the growth so far this year amounts to 2.3 %, corresponding to a 12-month growth of 17 %. The growth in deposits is very healthy with an increase of 3.3 % so far this year corresponding to a 12-month increase of 18 %. Reduced interest margin The interest margin is 2.05 % and has been reduced from the average in 2000 of 2.33 %. The reduced interest margin is to a large extent due to accounting considerations as the return of the bank's investments in interest funds and zero coupon bonds are recorded in the accounts as capital gain. In addition, this year's accounts are charged with full guarantee fund charges, which affects the interest margin. Stronger market position Good growth in lending and deposits over an extended period in combination with good sales of securities and insurance products has clearly strengthened the bank's market position. This is also confirmed through market surveys where the bank scores very high as regards customer satisfaction. During the first half of the year, the bank will establish new offices in Klepp, Mandal and Sauda, which will contribute to maintaining the market position. In order to further consolidate its position as the investment bank, the bank is now establishing a separate trust company SR-Forvaltning ASA.

2 Higher commission income Net commission income from the sale of money transfer services shows an increase of 12 % over a twelve-month period, while commission income from securities and insurance increased by 106 %. Integration of the portfolio from Vår Forsikring and commission income from the sale of SparX Global (share index bond) contribute to the high growth. The total capital gain of NOK 27 million includes gain on currency (NOK 6 million), certificates and bonds (NOK 17 million) and shares, primary capital certificates and securities (NOK 4 million). Losses remain low Operating costs for the group amounted to NOK 186 million during the first quarter. Measured in relation to the bank's total assets, this constitutes 1.69 %, compared with 1.67 % in the first quarter of The group's profit results in a return on equity capital of 11.2 % after tax. Defaults remain stable and there are few losses. The Board expects satisfactory profit performance for the rest of the year. Key figures, first quarter of March 2001 (31 March 2000) Net interest income 227 (218) Operating income 102 ( 83) Operating profit before losses 143 (146) Operating profit before tax 103 (122) Profit 72 ( 92) Stavanger, 26 April 2001 The Board of Sparebanken Rogaland Please direct any questions to Managing Director Terje Vareberg, telephone / or Financial Director Tor Dahle, telephone /

3 H i g h l i g h t s Highlights SpareBank 1 SR-Bank Group So far in Corresponding in All of MAIN FIGURES N O K m i l l % NOK mill % NOK mill % Net interest income 227 2, , ,33 Net other operating income 102 0, , ,83 Total operating income 329 2, , ,16 Reorganization 0 0,00 0 0, ,12 Operating costs 186 1, , ,64 Total operating costs 186 1, , ,76 Result before losses and write-downs 143 1, , ,40 Losses and write-downs 40 0, , ,18 Result of ordinary activities 103 0, , ,58 Taxes 31 0, , ,42 Profit 72 0, , ,16 Key figures SpareBank 1 SR-Bank Group So far in 2001 Corresponding in 2000 All of 2000 Average total assets Total assets Net loans to customers Deposits from customers Growth in loans 17 % 16 % 20 % Growth in deposits 18 % 7 % 15 % Capital adequacy ratio 0,00 11,42 11,65 Core capital ratio 0,00 8,13 8,15 Net equity and subordinated loan capital Return on equity * 1 1, 2 16,2 19,5 Income per cost krone ** 1,62 1,88 1,72 Number of man-years Number of offices Market price at the close of the quarter Profit per primary capital certificate *** 6, 1 8,0 40,4 * Profit as a percentage og average equity ** Total income excluding net exchange and capital gains divided by total operating costs. *** Profit for the year multiplied by the primary capital certificate percentage and divided by the number of primary capital sertifikates. Kvartal12001A.xls

4 Main Figures from the Profit and Loss Account and balance sheet SpareBank 1 SR-Bank PROFIT AND LOSS ACCOUNT SpareBank 1 SR-Bank Group All of Corresp. So far in So far in Corresp. All of (Amount in NOK million) Interest income Interest costs Net interest income Dividends Income from ownership interests Commission income Commission costs Net exchange and capital gains Other operating income Net other operating income Total operating income Wages and general administration costs Reorganization Other operating costs Total operating costs Profit before losses and write-downs Loss/gain finansiel fixed assets Loss on loans and guarantees Result og ordinary activities Taxes Profit ,4 8,0 6,1 Profit per primary capital certificate 6,1 8,0 40,4 SpareBank 1 SR-Bank BALANSE SpareBank 1 SR-Bank Group (Amount in NOK million) Assets Cash and claims on central banks Claims on credit institutions Gross loans to customers Specified loss provisions Uspecified loss provisions Net loans to customers Acquired assets Securities Fixed assets Other assets Total assets Liabilities and equity Debt to credit institutions Deposits from customers Debt established on issue of securities Other debt Subordinated loan capital Equity Profit Total liabilities and equity Off-balance-sheet: Contingent liabilities (guarantees) Kvartal12001B.xls

5 RESULTS FROM THE QUARTERLY ACCOUNTS Net interest income Net other operating income Total operating income Total operating costs Result before losses and write-downs Losses and write-downs Result of ordinary activities Taxes Profit BALANCE SHEET FIGURES FROM THE QUARTERLY ACCOUNTS Deposits from customers Gross loans to customers Loan loss provisions Net loans to customers Total assets Average total assets NON-PERFORMING LOANS AND NON-ACCRUAL LOAN Gross non-performing loans Specified loan loss provisions Net non-permorming loans Gross non-accrual loans Net non-accrual loans CAPITAL ADEQUACY The bank's reserves Primary capital certificate Other reserves Core capital Additional capital Deductions Net equity and subord.loan capital Total basis for calculation Capital adequacy ratio #DIV/0! 11,65 % 10,96 % 10,94 % 11,42 % 12,12 % 11,27 % 10,11 % 10,55 % KEY FIGURES FOR PRIMARY CAPITAL CERTIFICATES Marked price at the close of the quarter Book equity per primary capital certificate Primary capital certificate ratio 6 3, ,3 64,8 64,8 64,8 66,6 66,6 66,6 Kvartal12001D.xls

6 L o a n s f o r w h i c h l o s s p r o v i s i o n s h a v e b e e n m a d e SpareBank 1 SR-Bank SpareBank 1 SR-Bank Group (Amounts in NOK million) Non-performing loans for which loss provisions have been made Gross non-performing loans Specified loss provisions Net non-performing loans % 43 % 38 % Loan loss provision ratio 35 % 40 % 41 % Of which gross non-aaccrual loans Performing loans for which loss provisions have been made Performing loans with loss provision Specified loss provisions Net performing loans % 41 % 34 % Loan loss provision ratio 35 % 41 % 33 % Total loans for a customer are regarded as non-performing and included in the bank's overviews of non-performing loans when due instalments or interest payments have not been paid within 90 days after the due date or a line of credit is overdrawn for 90 days or more. Loss assessments are made of loans that are non-performing for more than 60 days. L o s s p r o v i s i o n s SpareBank 1 SR-Bank SpareBank 1 SR-Bank Group (Amounts in NOK million) Specified loss provisions: Specified loss provision pr Actual loan losses during the period for which specified loss provisions have been made previously /- The period's specified loss provisions Specified loss provisions Unspecified loss provisions: Unspecified loss provisions pr /-The period's change in unspecified loss provision Unspecified loss provisions Opening balance 2000 includes specified loss provisions from Vår Bank. L o a n s a n d l o s s e s i n SpareBank 1 SR-Bank Group Loans and Gross Recoveries Net Loss (Amounts in NOK million) guarantees loans of losses loss ratio Corporate ,21 % Private customers ,02 % Transferred to unspecified Sum ,07 % Kvartal12001C.xls