SpareBank 1 SMN shows strong underlying operations and delivered a profit of NOK 740m after tax in the third quarter. The third-quarter performance reflects macroeconomic factors and one-time events over the quarter. With a CET1 ratio close to 20 per cent, the bank is more solid than ever.
The bank is increasing its financial solidity, and its CET1 ratio now stands at 19.7 per cent. Return on equity in the quarter is 11.1 per cent, which is below the 13 per cent target. This is primarily attributable to one-time events such that return on equity in the year to date is 13 per cent, in line with the target set.
“We note that framework conditions for people and businesses alike have grown more demanding, with higher costs posing challenges on a wider scale. This also impacts the market in which we operate. But we are rock solid and therefore well equipped to keep a cool head and to stand together with people and firms in the future as in the past”, says Group CEO Jan-Frode Janson.
SpareBank 1 SMN has in the last twelve months increased its lending by NOK 25.4bn, bringing total outstanding loans to NOK 234.3bn at the end of the third quarter. Lending to personal customers has risen by 13.8 per cent in the last 12 months, and deposits by 17.3 per cent. Lending to corporates climbed 8.8 per in the last 12 months and deposits by 11.8 per cent in the same period.
Despite longer selling periods and lower prices in the housing market, EiendomsMegler 1 Midt-Norge has posted approximately the same number of property sales as last year, thereby increasing its market share from 36.4 per cent to 37 per cent. SpareBank 1 Regnskapshuset SMN has increased its turnover by NOK 28m compared with last year’s third quarter as a result of higher sales of advisory and accounting services alike. Both SpareBank 1 Finans Midt-Norge and SpareBank 1 Markets have seen lower activity in the third quarter, but in spite of this report a net profit of NOK 3m and NOK 22m respectively in the quarter.
“We see a slight cooling of the temperature of the Norwegian economy. Experience shows that savings banks gain ground in demanding times. We are therefore investing in staff who will secure profitable growth in all business lines, both in our home market in Mid-Norway and in Oslo. Moreover, the merger with SpareBank 1 Søre Sunnmøre was brought to completion in September, and is one of the areas in which we will really gain ground going forward”, says Jan-Frode Janson.
Key figures:
(Consolidated figures. Figures in parenthesis refer to the same period of 2022 unless otherwise stated)
Profit after tax: NOK 740m (617m)
Return on equity: 11.1% (10.9%)
CET1 ratio: 19.7% (19.2%)
Growth in lending: 1.0% (1.7%)
Growth in deposits: -1.4% (-2.6%)
Losses on loans and guarantees: NOK 35m (22m)
Earnings per equity certificate: NOK 3.28 (2.89)
Contact:
CFO Trond Søraas on +47 922 36 803
Executive Vice President Rolf Jarle Brøske on +47 911 12 475
quarterlyreport.smn.no
The above information is disclosable pursuant to Section 5-12 of the Norwegian Securities Trading Act.