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SpareBank 1 SMN gained more customers, improved profitability and lower losses in the second quarter. Net profit in the second quarter amounted to NOK 942m, and to NOK 1,836 in the first half-year on an accumulated basis. The bank is more solid than ever, and NOK 100m is now allocated to community dividend for the reopening of Mid-Norway.
After an excellent performance in the first quarter, the trend continued in the second quarter, well assisted by growing optimism among the people and businesses of Mid-Norway. Losses were reduced to NOK 39m, from NOK 170m in the same quarter last year. SpareBank 1 SMN is now achieving solid growth across all business lines.
“We have kept a cool head and maintained our faith in the people and businesses of the region throughout the pandemic and are now reaping the benefits in the shape of even stronger customer loyalty and the fact that we are increasingly the bank of choice. Substantial growth in both lending and deposits are the best possible endorsement from our customers”, says Group CEO Jan-Frode Janson.
Well set for further growth
Lending and deposits have shown good growth. Gross lending rose by NOK 7.9 per cent and deposits by 16.8 per cent in the 12 months to end-June. Operating expenses were reduced to NOK 735m for the quarter, and the bank achieved a return on equity of 14.3 per cent. With a CET1 ratio of 18.3 per cent, the bank is very robust.
A large proportion of the population have now received their first vaccination dose, and uncertainty in the economy is gradually abating in step with the wind-down of the restrictions imposed by the authorities. The Confederation of Norwegian Enterprise (NHO) anticipates lower unemployment and growth in the economy in forthcoming quarters, and expects the economy to be back to its pre-pandemic level as early as in the third quarter.
“Although there is still some risk in the economy, we expect strong economic growth ahead. SpareBank 1 SMN is achieving strong results and is more solid than ever, so we are well placed to play our part in the growth, and to contribute a little extra. We aspire to grow more than our competitors in Mid Norway and to further consolidate our position as finance centre number one,” says Mr Janson.
NOK 100m for the reopening of Mid-Norway
Good results at SpareBank 1 SMN also benefit the bank’s stakeholders. The largest single stakeholder is the community, which owns 40 per cent of the bank. All inhabitants of Mid-Norway can thus share in the distribution of the bank’s net profit in the form of dividend to the community.