D R A F T P R E S S R E L E A S E

Transcription

1 D R A F T P R E S S R E L E A S E SpareBank 1 SR-Bank the leading bank in the region for 25 years Group profit before tax of NOK 308 million The result is marked by the development in the stock markets Negative contribution from the SpareBank 1 group of NOK 41.6 million Stabilized interest margin (2.06 %) Continued good growth in net commission income (+ 42 %) Good cost-effectiveness, cost percentage at 1.69 Slower growth in lending, 12-month growth of 13 % Relatively few losses and defaults Good development in underlying operations result marked by the development in the stock markets The SpareBank 1 SR-Bank group achieved a profit before tax of NOK 308 million in the third quarter. The result is marked by the drop in prices of securities, and is NOK 248 million lower than for the corresponding period last year. The profit for 2000 also included the gain from the sale of shares in Fellesdata ASA (NOK 177 million), issue gains (NOK 26 million) and cost allocations (NOK 35 million). The profit from the underlying operations has increased by NOK 41 million compared with last year. The group's return on equity capital after tax is at 10.8 %. The bank's portfolio of shares and primary capital certificates has so far suffered a loss of NOK 25 million, compared with a capital gain of NOK 42 million last year. In addition, we have posted a negative contribution to the result of NOK 41.6 million NOK from the SpareBank 1 group, mainly due to the development in the stock markets. The group's ordinary operations show stabilized interest margins and good growth in other operating income, especially from securities, insurance and real estate services. Net losses so far amount to NOK 90 million, approximately the same as for last year. Defaulted liabilities are more or less stable in relation to the total loans. The 12-month growth in lending has been reduced from 20 % at the beginning of the year to 13 % in accordance with the adopted plans. Deposits remain relatively stable, with a 12-month growth as of the third quarter of 8 %. Other operating income The group's net commission income amounted to NOK 189 million at the end of the third quarter, an increase of NOK 56 million compared with the same period last year. Commission income from securities and insurance has increased by 46 % and 238 % respectively, to NOK 38 million and NOK 35 million.

2 D R A F T P R E S S R E L E A S E The increase in the income from securities is a result of the bank's increased emphasis on investments. The focus on insurance has resulted in gradually higher insurance income for this year. Increased income from EiendomsMegler 1 Rogaland AS as well as gains on sale of buildings in the amount of NOK 3 million, has contributed to an increase in other operating income of NOK 22 million compared with last year. As of the third quarter of 2001, the bank has posted a share of the deficit in SpareBank 1 Gruppen AS amounting to NOK 41.6 million. The corresponding figure for the same period in 2000 was a deficit of NOK 1.5 million. The main reason for the poor result in SpareBank 1 Gruppen is the development in the stock markets, which has been particularly negative for the life insurance activities. SpareBank 1 Gruppen has also amortized a considerable amount of goodwill associated with the acquisition of VÅR Gruppen in the profit and loss account. Operating costs The operating costs for the group amounted to NOK 573 million so far this year. Compared with the total assets, this constituted 1.69 % compared with 1.76 % for the corresponding period last year. The average figure for man-years has increased from 692 as of 30 September 2000 to 791 as of 30 September The increase is mainly due to the integration of Vår/Varde employees as of 1 January 2001, as well as expansion in EiendomsMegler 1 Rogaland AS. The group emphasizes continued high cost-effectiveness. This is reflected in programs that have been implemented to cut costs and develop the organization. Reorganization measures in the bank will result in 35 people leaving during 2001 and Market development SpareBank 1 SR-Bank is the market leader both within the private market and the business market in Rogaland. In the Agder counties we now have bank branches in Kristiansand, Mandal, Flekkefjord and Sirdal. We will also open branches in Lyngdal and Arendal. The growth in Internet Bank customers continues, and we now have more than 50,000 customers that use the Internet Bank. We are in the process of introducing the e-invoice. E-invoices will make it easier to receive and pay bills. The customer will be able to receive bills directly through the Internet Bank rather than through the mail. Outlook for the future The market outlook for industry and commerce is more uncertain than in a long time, mainly as a consequence of the international downturn and the international threat of terror. However, the underlying banking operations give the Board reason to expect satisfactory profit performance for the rest of the year. Stavanger, 29 October 2001

3 D R A F T P R E S S R E L E A S E The Board of Sparebanken Rogaland

4 Quarterly Report as of 30 September 2001 SpareBank 1 SR-Bank the leading bank in the region for 25 years Group profit before tax of NOK 308 million The result is marked by the development in the stock markets Negative contribution from the SpareBank 1 group of NOK 41.6 million Stabilized interest margin (2.06 %) Continued good growth in net commission income (+ 42 %) Good cost-effectiveness, cost percentage at 1.69 Slower growth in lending, 12-month growth of 13 % Relatively few losses and defaults Profit per primary capital certificate of NOK 18 after tax Satisfactory development in underlying operations result marked by the development in the stock markets The SpareBank 1 SR-Bank group achieved a profit before tax of NOK 308 million in the third quarter. The result is marked by the drop in prices of securities, and is NOK 248 million lower than for the corresponding period last year. The profit for 2000 also included the gain from the sale of shares in Fellesdata ASA (NOK 177 million), issue gains (NOK 26 million) and cost allocations (NOK 35 million). The profit from the underlying operations has increased by NOK 41 million compared with last year. The group's return on equity capital after tax is at 10.8 %. The bank's portfolio of shares and primary capital certificates has so far suffered a loss of NOK 25 million, compared with a capital gain of NOK 42 million last year. In addition, we have posted a negative contribution to the result of NOK 41.6 million NOK from the SpareBa nk 1 group, mainly due to the development in the stock markets. The group's ordinary operations show stabilized interest margins and good growth in other operating income, especially from securities, insurance and real estate services. The costs measured in relation to the average total assets are still low and amount to 1.69 %. Net losses so far amounts to NOK 90 million, approximately the same as for last year. Defaulted liabilities are more or less stable in relation to the total loans, with a minor nominal increase. The 12-month growth in lending has been reduced from 20 % at the beginning of the year to 13 % in accordance with the adopted plans. Deposits remain relatively stable, with a 12-month growth as of the third quarter of 8 %. Net interest income and interest margin Net interest income at the end of the third quarter amounted to NOK 699 million, up from NOK 686 million in the corresponding period last year. Compared with the average total assets, net interest income constituted 2.06%, compared with 2.35% as of 30 September The reduction is mainly due to changed framework conditions as well as accounting considerations. The interest margin in the third quarter has improved somewhat compared with the two first quarters of the

5 year. The lending margin has improved somewhat compared with last year, while the deposit margin is poorer. Other operating income The group's net commission income amounted to NOK 189 million at the end of the third quarter, an increase of NOK 56 million compared with the same period last year. Income from sale of payment transfer services shows a 12-month growth of about 8 % and amounted to NOK 95 million. Commission income from securities and insurance has increased by 46 % and 238 %, respectively, to NOK 38 million and NOK 35 million. The increase in the income from securities is a result of the bank's increased emphasis on investments. The focus on insurance has resulted in gradually higher insurance income for this year. Increased income from EiendomsMegler 1 Rogaland AS as well as gains on sale of buildings in the amount of NOK 3 million, has contributed to an increase in other operating income of NOK 22 million compared with last year. The total capital gain of NOK 49 million includes gains on currency (NOK 23 million), certificates and bonds (NOK 2 million), and shares and primary capital certificates (NOK -25 million). In addition there is a return of NOK 49 million from investments in Odin money market funds and zero coupon bonds. So far, the return on the share portfolio for the year has been 13.8 % higher than the all-share index on the Oslo Stock Exchange. As of the third quarter of 2001, the bank has posted a share of the deficit in SpareBank 1 Gruppen AS amounting to NOK 41.6 million. The corresponding figure for the same period in 2000 was a deficit of NOK 1.5 million. The main reason for the poor result in SpareBank 1 Gruppen is the development in the stock markets, which has been particularly negative for the life insurance company. The SpareBank 1 Gruppen has also amortized a considerable amount of goodwill associated with the acquisition of VÅR Gruppen in the profit and loss account. Operating costs The operating costs for the group amounted to NOK 573 million so far this year. Compared with the total assets, this constituted 1.69 % compared with 1.76 % for the corresponding period last year (1.64 % excluding reorganization costs). Measured in relation to operating income (excluding capital gains), costs amounted to 58.0 %. In nominal terms, the total costs have risen by NOK 92 million compared with the same period last year (excluding reorganization costs). Of this amount, personnel costs account for NOK 49 million. The average figure for man-years has increased from 692 as of 30 September 2000 to 791 as of 30 September The increase is mainly due to the integration of Vår/Varde employees as of 1 January 2001, as well as expansion in EiendomsMegler 1 Rogaland AS. The group emphasizes continued high cost-effectiveness. This is reflected in programs that have been implemented to cut costs and develop the organization. Reorganization measures in the bank will result in 35 people leaving during 2001 and Deposits, investments and loans Customer deposits from the private market maintain a healthy growth. The 12-month growth amounts to 11 %. The deposits from the business market have remained relatively stable during the last quarter. Fluctuations in major individual commitments this year and last year have affected the growth. The 12-month growth constitutes 5 % in the third quarter.

6 Our customer's investments in Odin share and interest funds had a market value of NOK 1.8 billion as of 30 September, an increase of 8 % during the last 12 months. So far this year, net sales of Odin funds amount to NOK 300 million, NOK 161 million higher than the corresponding period last year. In addition, there were sales of guaranteed products amounting to NOK 278 million so far this year. So far this year, lending has increased by 9 % to NOK 42.8 billion, resulting in a 12-month growth of 13 %. The slower growth is in line with the adopted plans, and the 12-month growth has been reduced from 20 % at the beginning of the year. The growth in lending amounts to 15 % and 10 % in the private market and the business market respectively, and the distribution in volume between the private market and the business market is 66/34 %. Defaults and losses At the end of September, gross default over 90 days was NOK 352 million, NOK 32 million more than at the end of last year. Gross and net default at the end of the quarter constituted 0.8 % and 0.6 % of gross lending respectively. The specified loss allocation for the default portfolio is NOK 108 million, which is equivalent to an allocation rate of 31 %. In addition, specified loss allocations for liabilities not in default are NOK 188 million, equivalent to an allocation rate of 47 %. The group has net losses of NOK 90 million so far this year. Unspecified loss allocations amount to NOK 323 million, corresponding to 0.8 % of the loan portfolio. Capital adequacy ratio At the end of September, the group's capital adequacy ratio was %, excluding profit for the year and % for the parent bank. The core capital adequacy ratio for the group and the parent bank were 7.78 % and 7.57 % respectively. The amended capital adequacy ratio rules, which entered into force as of 1 April 2001, improved the capital adequacy ratio for the parent bank by 0.60 % as of 30 September Subsidiaries The revenues for EiendomsMegler 1 Rogaland AS have increased by 40 % compared with last year due to both expansion and generally good market activities. Westbroker Finans AS also did well, more or less on par with last year. The bank's branch for active management, SR- Forvaltning ASA, became a subsidiary in the third quarter for accounting purposes (67 % ownership interest). Market SpareBank 1 SR-Bank is the market leader both within the private market and the business market in Rogaland. In the Agder counties we now have bank branches in Kristiansand, Mandal, Flekkefjord and Sirdal. We will also open branches in Lyngdal and Arendal. The bank's primary capital certificates At the end of September, the market price for the bank's primary capital certificates was NOK 235. In the third quarter, the number of primary capital certificate owners was reduced by 15 to 6,333. In the third quarter, the bank purchased 56,000 of its own primary capital certificates. At

7 the end of the quarter, the percentage owned by foreigners was 12.9%, while 47.0% of the owners resided in Rogaland. The 20 largest owners owned 32.5 % of the certificates. 1. Swedbank Markets 741, % 2. Folketrygdfondet 366, % 3. Tveteraas Finans AS 191, % 4. SpareBank 1 Midt-Norge 104, % 5. Gjensidige NOR Sparebank 97, % 6. Arne B. Corneliussen Invest 80, % 7. Posh AS 80, % 8. Frank Mohn AS 79, % 9. Stiftelsen UNI 73, % 10. Pareto AS 71, % 11. Otto B. Morcken 65, % 12. Bank of New York 64, % 13. Solvang Shipping AS 60, % 14. Sparebanken Rogaland, own 56, % 15. Audley AS 55, % 16. Investors Bank & Trust Company 51, % 17. Ringerikes Sparebank 50, % 18. Westco AS 50, % 19. Brown Brothers Harriman 50, % 20. Erik Steen 45, % Total 20 largest 2,434, % Outlook for the future The market outlook for industry and commerce is more uncertain than in a long time, mainly as a consequence of the international downturn and the international threat of terror. However, the underlying banking operations give the Board reason to expect satisfactory profit performance for the rest of the year. Stavanger, 29 October 2001 The Board of Sparebanken Rogaland

8 H i g h l i g h t s Highlights SpareBank 1 SR-Bank Group Year-end MAIN FIGURES N O K m i l l % NOK mill % NOK mill % Net interest income 699 2, , ,33 Net other operating income 288 0, , ,83 Total operating income 987 2, , ,16 Reorganization 0 0, , ,12 Operating costs 573 1, , ,64 Total operating costs 573 1, , ,76 Result before losses and write-downs 414 1, , ,40 Losses and write-downs 106 0, , ,18 Result of ordinary activities 308 0, , ,58 Taxes 94 0, , ,42 Profit 214 0, , ,16 Key figures SpareBank 1 SR-Bank Group Year-end 2000 Average total assets Total assets Net loans to customers Deposits from customers Growth in loans 13 % 20 % 20 % Growth in deposits 8 % 15 % 15 % Capital adequacy ratio 12,95 10,96 11,65 Core capital ratio 7,78 7,62 8,15 Net equity and subordinated loan capital Return on equity * 1 0, 8 22,6 19,5 Income per cost krone ** 1,72 1,72 1,72 Number of man-years Number of offices Market price at the close of the quarter Profit per primary capital certificate *** 1 8, 0 35,9 40,4 0 * Profit as a percentage og average equity ** Profit income (excluding net exchange and capital gain/loss that are not related to money market fund and zero interest coupon), 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/ Kvartal32001A.xls

9 Main Figures from the Profit and Loss Account and balance sheet SpareBank 1 SR-Bank PROFIT AND LOSS ACCOUNT SpareBank 1 SR-Bank Group Year-end Year-end (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 N e t o t h e r o p e r a t i n g i n c o m e Total operating income Wages and general administration costs Reorganization Other operating costs T o t a l o p e r a t i n g c o s t s Profit before losses and write-downs Loss/gain finansiel fixed assets Loss on loans and guarantees Result og ordinary activities Taxes Minority interests Profit ,4 35,9 1 8, 0 Profit per primary capital certificate 1 8, 0 35,9 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 Unspecified loss provisions N e t l o a n s t o c u s t o m e r s Acquired assets Securities Fixed assets Other assets Total assets L i a b i l i t i e s a n d e q u i t y Debt to credit institutions Deposits from customers Debt established on issue of securities Other debt Subordinated loan capital Equity Minority interests Profit T o t a l l i a b i l i t i e s a n d e q u i t y O f f - b a l a n c e - s h e e t : Contingent liabilities (guarantees) KHT/ Kvartal32001B.xls

10 Loans for which loss provisions have been made SpareBank 1 SR-Bank S p a r e B a n k 1 S R - B a n k G r o u p (Amounts in NOK million) N o n - p e r f o r m i n g 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 Gross non-performing loans Specified loss provisions N e t n o n - p e r f o r m i n g l o a n s % 42 % 33 % Loan loss provision ratio 31 % 40 % 41 % O f w h i c h g r o s s n o n - a a c c r u a l l o a n s P e r f o r m i n g 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 Performing loans with loss provision Specified loss provisions N e t p e r f o r m i n g l o a n s % 35 % 47 % Loan loss provision ratio 47 % 33 % 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. Loss provisions SpareBank 1 SR-Bank S p a r e B a n k 1 S R - B a n k G r o u p (Amounts in NOK million) S p e c i f i e d l o s s p r o v i s i o n s : 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 S p e c i f i e d l o s s p r o v i s i o n s U n s p e c i f i e d l o s s p r o v i s i o n s : Unspecified loss provisions pr /-The period's change in unspecified loss provision U n s p e c i f i e d l o s s p r o v i s i o n s Loans and losses in 2001 S p a r e B a n k 1 S R - B a n k G r o u p Loans and Gross Recoveries Net Loss (Amounts in NOK million) guarantees loans of losses loss ratio Corporate ,48 % Private customers ,01 % Transferred to unspesified S u m ,20 % KHT/ Kvartal32001C.xls

11 RESULTS FROM THE QUARTERLY ACCOUNTS (Amounts in NOK million) 3rd Q. 2nd Q. 1st Q. 4th Q. 3rd Q. 2nd Q. 1st Q. 4th Q. 3rd Q. SpareBank 1 SR-Bank Group 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 (Amounts in NOK million) 3rd Q. 2nd Q. 1st Q. 4th Q. 3rd Q. 2nd Q. 1st Q. 4th Q. 3rd Q. SpareBank 1 SR-Bank Group 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 (Amounts in NOK million) 3rd Q. 2nd Q. 1st Q. 4th Q. 3rd Q. 2nd Q. 1st Q. 4th Q. 3rd Q. SpareBank 1 SR-Bank Group Gross non-performing loans Specified loan loss provisions Net non-permorming loans Gross non-accrual loans Net non-accrual loans CAPITAL ADEQUACY (Amounts in NOK million) 3rd Q. 2nd Q. 1st Q. 4th Q. 3rd Q. 2nd Q. 1st Q. 4th Q. 3rd Q. SpareBank 1 SR-Bank Group 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 12,95 % 13,70 % 11,44 % 11,65 % 10,96 % 10,94 % 11,42 % 12,12 % 11,27 % KEY FIGURES FOR PRIMARY CAPITAL CERTIFICATES (Amounts in NOK million) 3rd Q. 2nd Q. 1st Q. 4th Q. 3rd Q. 2nd Q. 1st Q. 4th Q. 3rd Q. SpareBank 1 SR-Bank Group 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 KHT/ Kvartal32001D1.xls