SpareBank 1 Nord-Norge - Accounts Q1 2012

Thu Apr 26, 2012 8:16am EDT

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SpareBank 1 Nord-Norge is moving ahead and delivered good results in Q1 2012. The bank's financial strength is very good.

"There is a great deal of activity in the market and there has been a great growth in lending in the first quarter. Growth in lending to the corporate market over the last 12 months was 12.8 per cent, against 4.1 per cent for the same period the preceding year. Lending to the private market grew by 8.9 per cent, compared with 7 per cent in the first three months last year," says CEO Hans Olav Karde of SpareBank 1 Nord-Norge.   

Operating result before tax at the end of the first quarter 2012 amounted to NOK 232 million. The amount for the same period in 2011 was NOK 381 million. Last year's result was affected by a book value increase in the shareholding in FrontX amounting to NOK 189 million. Underlying banking operations are satisfactory, posting a profit before losses of NOK 125 million, NOK 24 million less than the corresponding quarter in 2011. 

The deposit coverage ratio is 77.9 per cent, compared with 79.4 per cent at the end of Q1 2011. The group is financially sound with a core capital ratio (group) of 11.6 per cent (10.7 per cent) and  total capital adequacy of 12.4 per cent (11.7 per cent). SpareBank 1 Nord-Norge continues to have satisfactory liquidity. 

"This shows that the Group is financially very strong and is well equipped to meet the requirements of the market and the authorities," says Karde 

Return on equity after tax ended at 12.1 per cent (23.3 per cent for the same period in 2011). Earnings per equity certificate (Group) were NOK 1.23 (NOK 2.41).

The Group's net losses on loans at the end of Q1 2012 totalled NOK 42 million. The net losses are divided between NOK 43 million from the corporate market and NOK 1 million from the retail market.  Of the losses in the corporate market, NOK 31 million refers to loss on one single commitment.

"SpareBank 1 Nord-Norge's authorised advisers have devoted a high level of customer activity to contributing to lending growth in the private and corporate markets. This means that the bank is contributing to the positive development of the region and is in a position to contribute to even further growth in future. At the same time, tough competition has put pressure on the bank's interest margin, which means that it is still important to focus on costs in distribution and staffing," says Karde.

Key figures from the accounts (see attached note page 1). Any questions may be directed to CEO Hans Olav Karde, tel. (+47) 901 51 981 or deputy CEO Oddmund Åsen, Tel. (+47) 906 72 757. Please also see the Bank's website at

Tromsø, 26 April 2012
for SpareBank 1 for Nord-Norge

Stig-Arne Engen
Director of Communications

About SpareBank 1 Nord-Norge: SpareBank 1 Nord-Norge is a leading provider of financial products and services within the retail banking and corporate banking markets throughout the region. The bank has a total customer base of some 244,000 retail banking customers, approximately 36,500 corporate customers including the public sector, organisations and associations, as well as around 101,000 insurance customers. The bank has 74 branches in Finnmark, Troms, Nordland and on Svalbard.
In September 2010, SpareBank 1 Nord-Norge established banking operations in Russia through North West 1 Alliance Bank.  SpareBank 1 Nord-Norge holds a 75percent ownership interest in the bank, whilst the remaining 25percent of the shares are owned by SpareBank 1 Nord-Norge's Russian partner Bank Tavrichesky in St. Petersburg.  The new bank's head office will be in St. Petersburg and it will have a branch in Murmansk. 

This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)


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Source: SpareBank 1 Nord-Norge via Thomson Reuters ONE

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