Highlights 2001 SpareBank 1 SR-Bank group

Transcription

1 Press release Highlights 2001 SpareBank 1 SR-Bank group Good profit in spite of sluggish securities market Operating profit of NOK 430 million before tax Growth in deposits of NOK 1.9 billion (9%) in the group Growth in lending of NOK 4.4 billion (11%) in the group 48% growth in commission income Continued cost-effective operations, cost percentage at percent return on equity capital after tax NOK in profit on primary capital certificates The board proposes a dividend of NOK 19 Strengthened distribution and improved Internet bank 45,000 of the bank's customers save in securities NOK 745 million in sale of securities and guaranteed products Establishment of Business Center at Forus in cooperation with Westbroker Finans and EiendomsMegler 1 New offices opened in Mandal, Klepp and Sauda 53,000 customers have access to the Internet bank SpareBank 1 SR-Bank celebrated its 25-year anniversary as the country's first regional savings bank in 2001 The bank initiated the establishment of the investment company Energivekst Profit performance The SpareBank 1 SR-Bank group's development in 2001 has been good. Even though the year has been characterized by unrest in the securities markets and less favorable framework conditions, the group has achieved good profit on the core activities. The group's profit has been secured through good growth in deposits and lending, good growth in net commission income as well as continued high cost-effectiveness. The interest margin has been reduced from 2.33 percent to 2.13 percent in The reasons are mainly stiff competition, new expanded business involvement with lower risk, as well as the introduction of full guarantee fund charge to the Savings Banks' Guarantee Fund corresponding to 0.07 percentage points. Net interest income for the group increased by NOK 45 million, an increase of 5 percent. Other income The group's net commission income increased by 48 percent from NOK 190 million to NOK 282 million in 2001.

2 Press release Commission income from insurance increased by as much as 220 percent to NOK 49 million as a result of the take-over of insurance portfolio and 55 employees in connection with the Vår acquisition as well as good sales of insurance products. Securities income shows very healthy growth of 51 percent despite a weak securities market and is the result of the bank's focus on the savings sector. The bank's holdings of shares and primary capital certificate (circulation) amounted to NOK 286 million at the end of The return on securities amounted to 0.1 percent. Due to a weak securities market in 2001, the bank's holdings of shares and primary capital certificate have provided a lower return than in However, the portfolio has provided a return that is 14.5 percentage points higher than the main index on the Oslo Stock Exchange. Currency trading gave a gain of NOK 36 million in The bank's share of the loss in the SpareBank 1 group for 2001 amounted to NOK 50 million, compared with a loss of NOK 10 million in This is mainly due to a weak securities market, poor results in the life insurance company and the non-life company, as well as significant writedown of goodwill in connection with the Vår acquisition. Operating costs The operating costs in the group constituted NOK 785 million. This is an increase of NOK 80 million compared with The largest increase is related to human resources and is mainly due to the take-over of personnel associated with the banking and insurance activities of Vår Bank og Forsikring in Rogaland and the Agder counties. The item Other Costs also shows a significant increase. The main reason for the increase in this case is the use of external consultants in connection with various projects in the bank including a new processing system and credit rating system for the business market. Another item showing a significant increase is temporary help, which became subject to VAT from 1 July. The relatively strong growth in depreciation and amortization expenses is mainly due to investments in connection with establishing new offices. In total, the introduction of value added tax on services from 1 July increased costs by approximately NOK 6 million in On an annual basis, the costs will increase by approximately NOK 12 million. Losses and default Default trends for the group are satisfactory. The group's gross default as a percentage of gross lending amounted to 0.70 percent, compared with 0.81 percent in 2000.

3 Press release The group's net losses in 2001 amounted to NOK 159 million. This figure includes an unspecified appropriation of NOK 48 million. Total unspecified loss allocations amounted to NOK 356 million, or 0.8 percent of total lending. The bulk of the losses in 2001 are due to loss allocations for business customers. Net losses as a percentage of average gross lending amounted to 0.38 percent in 2001, on level with the loss percentage in Subsidiaries EiendomsMegler 1 Rogaland AS has exhibited a good trend in The company brokered real estate for a total value of NOK 4.1 billion. Income increased to NOK 95 million, and the company's profit before tax amounted to NOK 11 million compared with NOK 11.8 million in Westbroker Finans AS had total assets amounting to NOK 1,719 million at the end of the year. This is a reduction of NOK 890 million as the company sold the entire housing loan portfolio totaling NOK 1.2 billion to Bank 1 Oslo and SpareBank 1 SR-Bank. This is due to a changed strategy for the company that entails cultivating leasing and project financing. Westbroker Finans AS achieved a profit before tax of NOK 32 million compared with NOK 22.1 million in SR-Forvaltning ASA, the bank's new company for active investment management, has shown strong growth and managed NOK 1.4 billion at the end of The profit for 2001 constituted NOK 6 million. Outlook for the future The Board expects positive economic development in the region in 2002, even though this will vary from sector to sector. The bank will also keep focus on the customer in the future and will further develop customer relations with existing customers by offering additional products and services. At present, the bank has a good influx of new customers. The bank will continue its contribution to innovation and development in Rogaland and the Agder counties. Stavanger, 24 January 2002 The Board of Sparebanken Rogaland Please direct any questions to Managing Director Terje Vareberg, telephone / , Deputy Managing Director Sveinung Hestnes, telephone / , Financial Director Tor Dahle, telephone / or Press Spokesman Thor-Christian Haugland, telephone /

4 Highlights Good profit in spite of sluggish securities market Operating profit of NOK 430 million before tax Growth in deposits of NOK 1.9 billion (9%) in the group Growth in lending of NOK 4.4 billion (11%) in the group 48% growth in commission income Continued cost-effective operations, cost percentage at percent return on equity capital after tax NOK in profit on primary capital certificates The board proposes a dividend of NOK 19 Highlights MAIN FIGURES NOK mill % NOK mill % NOK mill % Net interest income 979 2, , ,64 Net other operating income 405 0, , ,12 Total operating income , , ,76 Reorganization 0 0, , ,03 Operating costs 785 1, , ,80 Total operating costs 785 1, , ,83 Result before losses and write-downs 599 1, , ,93 Losses and write-downs 169 0, , ,16 Result of ordinary activities 430 0, , ,76 Taxes 128 0, , ,43 Profit 302 0, , ,33 Key figures Average total assets Total assets Net loans to customers Deposits from customers Growth in loans 11 % 20 % 15 % Growth in deposits 9 % 15 % 10 % Capital adequacy ratio 12,69 11,65 12,12 Core capital ratio 7,95 8,15 8,63 Net equity and subordinated loan capital Return on equity * 11,5 19,5 21,8 Income per cost krone ** 1,72 1,72 1,86 Number of man-years Number of offices Market price at the close of the quarter Profit per primary capital certificate *** 25,3 40,4 40,4 Dividends per primary capital certificate 19,0 21,0 19,0 Profit per primary capital certificate 8,1 5,3 41,0 RISK-amount as of Jan 01 following year 10,4 18,5 28,4 * Profit as a percentage og average equity ** Profit income (excluding net exchange and capital gains/losses) 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. KHT/ kvartal42001a1.xls

5 Main Figures from the Profit and Loss Account and balance sheet SpareBank 1 SR-Bank PROFIT AND LOSS ACCOUNT (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 Minority interests part 1 40,4 40,4 25,3 Profit per primary capital certificate 25,3 40,4 40,4 SpareBank 1 SR-Bank BALANSE (Amount in NOK million) Assets Cash and claims on central banks Claims on credit institutions Gross loans to customers Specified loss provisions Unspecified 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 Minority interests Total liabilities and equity Off-balance-sheet: Contingent liabilities (guarantees) BRO/ kvartal42001b.xls

6 Loans for which loss provisions have been made SpareBank 1 SR-Bank (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 % 42 % 43 % Loan loss provision ratio 43 % 41 % 43 % 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 % 32 % 38 % Loan loss provision ratio 38 % 33 % 38 % 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. Loss provisions SpareBank 1 SR-Bank (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 Loans and losses in 2001 Loans and Gross Recoveries Net Loss (Amounts in NOK million) guarantees loans of losses loss ratio Corporate ,52 % Private customers ,07 % Transferred to unspesified Sum ,35 % KHT/ kvartal42001c.xls

7 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 12,69 % 12,95 % 13,70 % 11,44 % 11,65 % 10,96 % 10,94 % 11,42 % 12,12 % KEY FIGURES FOR PRIMARY CAPITAL CERTIFICATES Marked price at the close of the quarter Book equity per primary capital certificate Primary capital certificate ratio 61,2 63,0 63,0 63,0 63,0 65,3 64,8 64,8 64,8 KHT/ kvartal42001d.xls