SpareBank 1 SMN recorded a net profit of NOK 778m for the first quarter, with a return on equity of 13 per cent. The quarter reflects solid operations, good net interest income and strong profit contributions from all business lines. On 26 May the bank marks its 200th anniversary.
Net interest income rose in the first quarter to NOK 1,035m, an increase of NOK 275m from the same quarter last year.
“We are well pleased to have further strengthened our position in Mid Norway through profitable growth in a period of gruelling competition in the banking market. We are now getting a strong grip on the market in Sunnmøre and Fjordane after the merger with SpareBank 1 Søre Sunnmøre was completed on 2 May”, says Group CEO at SpareBank 1 SMN Jan-Frode Janson.
The bank has increased its overall lending by 7.0 per cent and deposits by 8.3 per cent in the last 12 months. In the first quarter, lending growth was 1.3 per cent and deposit growth 1.2 per cent, which is slightly lower than the figures for the same quarter last year. This is mainly attributable to a reduction in credit growth to households over the past year.
Commission income and other incomes rose from the preceding quarter by NOK 66m to NOK 541m, compared with NOK 522m in the same quarter last year. Increased incomes from accounting services are the main explanation for the growth from the fourth quarter. A net recovery of NOK 71m was recorded on losses on loans and guarantees in the quarter, while a reversal of earlier impairment write-downs in the offshore segment amounted to NOK 137m.
“SpareBank 1 SMN has a breadth of business ranging all the way from banking and insurance to accounting and real estate agency, which provides us with a robust income platform. Good profitability in all business lines and low losses make for an excellent result and indisputable solidity”, says Mr Janson.
The CET1 ratio was 18.2 per cent as at 31 March 2023, approximately the same level as last year’s first quarter. This is well above the government authorities’ CET1 ratio requirement of 17.2 per cent.
On Friday 26 May SpareBank 1 SMN marks its 200th anniversary with activities for people and firms across the whole of Mid Norway. It also heralds the start of a sustainable anniversary celebration which will leave its mark on the region for several months.
“We are proud of our 200 year-long banking history during which we have stood shoulder to shoulder with people and businesses through upturns and downturns in the region. Each year we contribute several hundred million kroner to thousands of projects that make Mid Norway an even better place to live and work. In the anniversary year we will in particular support young people who are transforming words into action through sustainability projects”, says Mr Janson.
KEY FIGURES:
(Consolidated figures. Figures in parenthesis refer to the same period of 2022 unless otherwise stated)
• Profit after tax: NOK 778m (698m)
• Return on equity: 13.0% (12.6%)
• CET1 ratio: 18.2% (18.3%)
• Growth in lending: 1.3% (2.4%)
• Growth in deposits: 1.2% (2.5%)
• Losses on loans and guarantees: minus NOK 71m (0m)
• Earnings per equity certificate: NOK 3.51 (3.20)
• In the first quarter the accounts were debited by NOK 51m as a result of the embezzlement in January 2023
Contact:
For investors and analysts:
CFO Trond Søraas on +47 922 36 803
For the media:
Executive Vice President Rolf Jarle Brøske on +47 911 12 475
https://quarterlyreport.smn.no/
This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act