SpareBank 1 SMN recorded a net profit of NOK 1,209m in the first six months of the current year, an increase of NOK 433m over the same period last year. The increase is attributable to a good trend in ordinary operations along with extraordinary financial income and an asset disposal gain.
The year's first six months at SpareBank 1 SMN feature strong ordinary operations both at the bank and the subsidiaries, high growth in the number of customers and low losses. The strong profit growth also reflects a financial gain of NOK 90m resulting from the merger of the companies Vipps, Bank Axept and Bank ID, and the disposal of the bank's head office building in Trondheim which produced a gain of NOK 150m.
"We are well pleased with our performance in the first half-year. Profit receives a substantial boost from two extraordinary items, but underlying operations are also good. Our strategy, based on effective interaction between digital solutions and skilled advisers at the bank, is proving its success. An important task ahead is to continue to deliver the best customer experience", says Finn Haugan, Group CEO at SpareBank 1 SMN.
"In addition to high lending growth, we are delighted by good sales of other products and services, and by good profit growth among our subsidiaries EiendomsMegler 1 Midt-Norge, SpareBank 1 Regnskapshuset SMN, SpareBank 1 Finans Midt-Norge and SpareBank 1 Markets", says Finn Haugan.
Market position strengthened
SpareBank 1 SMN has increased its lending to personal customers by 10.6 per cent to NOK 104.1bn since end-June last year. In 2018 alone the bank has acquired 4,300 new customers, thereby strengthening its leading market position in Mid-Norway.
Lending to corporates rose by 2.0 per cent to NOK 50.7bn. The growth stems mainly from small businesses with 400 new customers in the period, which is in keeping with the bank's plan.
Net interest income grew by NOK 83m to NOK 1,149m compared with the same period last year. The growth is due to increased volumes of both residential mortgages and deposits.
Low losses
The bank's first-half losses totalled NOK 127m, which is NOK 48m lower than in the same period last year. The increase from the first to the second quarter of 2108 is largely related to effects of international financial reporting standards (IFRS).
"The process of restructuring the bank's exposures in the oil service segment has in our assessment reached completion, but we are allowing for the possibility of new challenges arising in that sector. That is why we have also made provision for losses in the second quarter," says Finn Haugan.
The bank's target CET1 ratio of 15.0 per cent was attained in the first half-year.
Accounts for the first half of 2018 - key figures:
Trondheim, 8 August 2018
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
This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)
http://quarterlyreport.smn.no/2018/
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