Site Search

DEUTSCH All Languages

Companies in the News

Sound Operations, But Financial Result Pulls Down Overall Performance

SpareBank 1 SMN (OSL:MING) SpareBank 1 SMN strengthened earnings on its core business in the first half of 2008, but its overall performance was impaired by losses on securities and a lower profit contribution from SpareBank 1 Gruppen. Net profit after tax NOK 244 million compared with NOK 440 million in the same period last year.

SpareBank 1 SMN's ordinary banking operations were on very satisfactory trend in the first half year compared with the same period 2007. Ordinary banking operations showed a profit increase of NOK XX million, due in all essentials to sound growth accompanied by higher market share in both the retail market and the corporate market in most product areas.

Number 1 position strengthened SpareBank 1 SMN has strengthened its number 1 position throughout the region with a net increase in customers and lending growth in excess of the general growth in credit in the period.

Between end-June 2007 and the same point this year, total outstanding loans increased by 16.3% to reach NOK 67.4 billion, including transfers to SpareBank 1 Boligkreditt. The growth breaks down to 12.4 per cent in the retail market and as much as 23 per cent in the corporate market. The bank notes a particularly high influx of good corporate customers, particularly in Trondheim. Aggregate deposits rose by 10.1 per cent to NOK 35.8 billion. Growth in retail deposits was 8.8 per cent and in corporate deposits 11.5 per cent.

Low losses Net losses on loans and guarantees came to NOK 1 million compared with a net recovery of NOK 11 million in the same period last year.

In the retail market the savings pattern has switched from the stock market to banks. Sales of fixed-rate deposits have multiplied. Other savings products showed a stable and in some cases lower sales. Premium income in insurance, on the other hand, rose by 19 per cent to NOK 638 million.

City of Trondheim switches to SMN Activity in the corporate market is good, and losses are still very low. A number of new customer relationships were initiated in the first half year, among them the City of Trondheim for whom SpareBank 1 SMN became the main bank on 1 May.

SpareBank 1 SMN has expanded heavily in the field of corporate finance, and in the first half of 2008 became part owner of PAB Consulting in Ålesund and acquired Mercantor in Trondheim. This makes SpareBank 1 SMN the region's leading brokerage house.

Weaker financial result Weaker financial market conditions resulted in lower return on financial investments (down NOK 174 million) and a lower profit contribution from SpareBank 1 Gruppen (down NOK 66 million). The drop in financial return is largely due to unrealised losses on shares in the Adresseavisen newspaper and Det norske oljeselskap.

Return on equity was 9.7 per cent (21.6 per cent). Total assets rose by 11.8 per cent to NOK 75.6 billion, including the transfer to SpareBank 1 Boligkreditt.

Prepared for the turbulence "We are very satisfied with the good trend in banking operations. We are seeing sound and strong growth, and are taking substantial market shares from our principal competitors. The growth, which is particularly strong in Trondheim, is profitable, and we have a satisfactory risk trend. On the other hand, given the still restless financial market, we have not recouped the capital losses sustained on the bank's financial investments in the first quarter of the current year. The financial turbulence is also the cause of lower profit contributions from SpareBank 1 Gruppen," says CEO Finn Haugan at SpareBank 1 SMN.

Key figures

+-----------------------------------------------------+ | | At 30.06.08 | At 30.06.07 | | | NOKm | NOKm | |------------------+-----------------+----------------| | Total income | 954 | 1063 | | Pre-loss profit | 350 | 533 | | Post-loss profit | 244 | 440 | +-----------------------------------------------------+

Contact persons at SpareBank 1 SMN: 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

Trondheim, 12 April 2008

LINK: http://hugin.info/144/R/1242491/267170.pdf

LINK: http://hugin.info/144/R/1242491/267171.pdf

SpareBank 1 SMN

www.smn.no

ISIN: NO0006390301

Stock Identifier: XOSL.MING

Verbundene Unternehmen

SpareBank 1 Midt-Norge

ABN Newswire Diese Seite wurde besucht: (letzten 7 Tagen: 2) (letzten 30 Tagen: 8) (seit Veröffentlichung: 1008)