SpareBank 1 SMN delivers a profit of NOK 617m after tax in the third quarter. The bank has strengthened its market position in Mid-Norway through the quarter, despite demanding macroeconomic conditions.
Lending has grown by NOK 16.9bn in the last 12 month, and overall lending now stands at NOK 209bn. The profit figure is NOK 58m weaker than in the same quarter last year, mainly due to weaker results on the part of the insurance businesses in SpareBank 1 Gruppen and lower return on financial investments. The CET1 ratio at quarter-end was 19.2 per cent, up 0.4 per cent from the preceding quarter.
“Strong price growth and higher interest rates are beginning to affect people’s room for manoeuvre in their personal finances. However, both people and firms in Mid-Norway appear to be coping well thus far, as reflected in good earnings and continued low losses,” says CEO Jan-Frode Janson at SpareBank 1 SMN.
Net interest income was NOK 811m compared with NOK 707m in the same quarter last year. Increased funding costs have resulted in lower margins on loans and higher margins on deposits. Net commission and other income was reduced to NOK 540m compared with NOK 623m in the same quarter last year. The reduction is due in all essentials to lower income from securities services following the high earnings recorded in both the first and second quarter. Aside from this, income from estate agency and accounting services was reduced in the summer months of July and August, as expected.
Operating expenses came to NOK 688m, down NOK 10m compared with the same quarter last year. From the second to third quarter, expenses at the bank rose as a result of new staff appointments and the year’s pay settlement. Losses on loan and guarantees amounted to NOK 22m, a decline of NOK 10m from last year’s third quarter.
SpareBank 1 SMN continues to take market shares through sound growth. Overall lending climbed 8.8 per cent and deposits 9.9 per cent in the last 12 months. The bank notes good lending growth in particular in the corporate market where lending to business and industry clients rose 2.4 per cent in the third quarter.
“Our solid growth over the past year reflects customers’ preference for a bank with a local presence, strong competencies and local decision making. The fact that a large portion of the net profit goes back to the regional community also means a lot to our customers. This all acquires extra significance in demanding times,” says CEO Jan-Frode Janson.
Key figures:
(Consolidated figures. Figures in parenthesis refer to the same period of 2021 unless otherwise stated)
Pre-tax profit: NOK 788m (849m)
Post-tax profit: NOK 617m (675m)
Return on equity: 10.9% (12.4%)
CET1 ratio: 19.2% (18.1%)
Growth in lending: 1.7% (1.6%)
Growth in deposits: -2.6% (0.4%)
Lending to personal customers: 1.3% (2.0%)
Lending to corporate customers: 2.4% (0.7%)
Net result of ownership interests: NOK 109m (179m)
Losses on loans and guarantees: NOK 22m (31m)
Earnings per equity certificate: NOK 2.89 (3.22)
Book value per equity certificate: NOK 107.19 (103.57)
Supplementary information is published on smn.no enclosed to the quarterly report.
Quarterlyreport.smn.no
Contacts:
CFO Trond Søraas on +47 922 36 803
Executive Vice President Rolf Jarle Brøske on +47 911 12 475
The above information is disclosable pursuant to Section 5-12 of the Securities Trading Act