SpareBank 1 SMN posted a net profit of NOK 923m in the second quarter. This is an increase of NOK 221m from the previous year. The bank is now bringing in a sizeable team in the Private Banking and wealth management from Danske Bank, and is raising its ambitions as regards the wealthy segment.
The bank’s lending has increased by 8.5 per cent, and all business lines have contributed good performances in the quarter. The result equates to a return on equity of 15.1 per cent, and entails a CET1 ratio of 19.1 per cent.
“We are highly pleased to deliver such good results across the entire business, and with our rock solid position. This equips us well to stand together with our customers through demanding economic times, while at the same time maintaining ample capacity to post further growth”, says Group CEO Jan-Frode Janson.
The second quarter was marked by good underlying operations throughout the business. Net interest income rose as a result of the merger and of the good effect of interest rate changes made. Increased organic growth and an extended product range have brought higher commission income from accounting services, and activity in the housing market has been high with the number of properties sold on a par with the previous year.
The result posted by related companies was reduced in the quarter, mainly due to a negative performance by the SpareBank 1 Group where insurance activities in particular are negatively impacted by higher interest rates and inflation. A sluggish transaction market has normalized results posted by SpareBank 1 Markets, and BN Bank delivered good results with a return on equity above 12 per cent.
“SpareBank 1 SMN’s business has a breadth that makes us less dependent on interest earnings. It reduced our vulnerability to fluctuations in the fixed income market, and increases our attractiveness to customers who wish to assemble all financial services on an efficient product platform with one and the same provider”, says Group CEO Jan-Frode Janson.
Losses on loans and guarantees came to NOK 29m in the quarter. Approximately half of the losses refer to the disposal of a portfolio of defaults by SpareBank 1 Finans Midt-Norge.
Following Danske Bank’s decision to dispose of its personal customers division in Norway, SpareBank 1 SMN has seen a substantial influx of employees and customers alike. Over the course of the autumn an entire team consisting of ten employees in the Private Banking and wealth management field will leave Danske Bank to join SpareBank 1 SMN.
“By bringing together spearhead competence from these specialist areas, we are providing business owners and investors with access to a comprehensive customer offering tailored to their needs. This will have positive spin-offs across Mid Norway’s business sector and economy”, says Group CEO Jan-Frode Janson.
Key figures:
(Consolidated figures. Figures in parenthesis refer to the same period of 2022 unless otherwise stated)
• Profit after tax: NOK 923m (702m)
• Return on equity: 15.1% (12.9%)
• CET1 ratio: 19.1% (18.8%)
• Growth in lending: 8.5% (2.8%)
• Growth in deposits: 13.5% (8.6%)
• Losses on loans and guarantees: NOK 29m (net recovery of NOK 48m)
• Earnings per equity certificate: NOK 4.21 (3.20)
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
quarterlyreport.smn.no
This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act