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SpareBank 1 SMN recorded a post-tax profit of NOK 1,689m in the first nine months of the current year compared with NOK 1,275m in the same period last year. High growth and a large influx of new retail customers are also a feature of the period.
The year`s first nine months at SpareBank 1 SMN feature solid banking operations, good sales across all product areas, reduced loan losses, a strong financial position and high growth.
"We are well pleased with the fact that as many as 6,200 personal customers and 950 businesses have chosen us as their new main bank so far this year. We view this as a vote of confidence and confirmation that our position as a digital bank with a local and personal signature stands strong," says Group CEO of SpareBank 1 SMN, Finn Haugan.
Market position strengthened
The bank continues its strong growth in lending to personal customers. Over the last twelve months lending rose by 10.7 per cent to NOK 106.6bn. Lending to corporate clients rose by 0.8 per cent to NOK 51.2bn, with most of the growth down to small businesses.
"SpareBank 1 SMN is strengthening its position in Central Norway through a rate of growth in residential mortgage lending that is considerably higher than in the market as a whole. Moderate growth in lending to corporates is in keeping with the bank`s plan entailing a differentiated approach with the emphasis on small and medium businesses," says Group CEO at SpareBank 1 SMN, Finn Haugan.
Reduced CET1 ratio
As at end-September the bank`s CET1 ratio stands at 14.9 per cent, which is an increase of 0.3 percentage points in 2018. The CET1 ratio target of 15.0 per cent stands firm.
Net interest income grew by NOK 123m to NOK 1,759m compared with the same period last year. The growth is due to increased volumes of loans and deposits alike.
Group costs increased by NOK 171m, largely owing to increased activity at the subsidiaries SpareBank 1 Regnskapshuset SMN and SpareBank 1 Markets. Parent bank costs have risen by NOK 21m, mainly due to costs related to the sale of the bank`s head office building. The goal of zero growth in parent bank costs is upheld.
Lower losses
Losses are substantially reduced from the same period last year, declining by NOK 67m to NOK 196m. The losses are related in all essentials to the offshore segment and reflect the allowance being made by the bank for the possibility of a second round of restructuring.
"Møre and Romsdal have for some years been hit by the oil price fall in 2014, but our own economic barometer shows that business and industry in the county are recovering at full pace. We also see signs of improved prospects for offshore companies. Trøndelag has managed to steer clear of these challenges in the period, and businesses continue to show good, profitable growth. The barometer confirms increased optimism and greater belief in the future across the entire region," says Finn Haugan.