Sparebanken Møre reports growth, lower costs and higher net
interest income for the third quarter.
Profit after tax amounted to NOK 139 million in the third
quarter, compared with NOK 146 million for the same quarter
last year. Return on equity was 10.5 % and the Group's total
assets stands at NOK 66.2 billion by quarter end.
"We have performed well and record positive effects of the
measures we have implemented. To be solid, we have to
operate profitable and efficient. This has been our best
quarter in 2017", says Trond Lars Nydal, CEO of Sparebanken
Møre.
Continuing growth
At the end of the third quarter of 2017, lending to
customers totalled NOK 56.5 billion. The Group has increased
lending by 9.1 % in the last 12 months, although growth has
gradually slowed during the quarter, as anticipated. Lending
to corporate customers fell by 1.6 % in the third quarter of
2017, while lending to retail customers rose by 1.6 %.
Deposits from customers increased by 2.3 % the last 12
months.
"We are very pleased that so many people want to be
customers of Sparebanken Møre and we see this as a
confirmation that customers find us competitive and
appreciate our way of doing business. We are seeing more and
more people appreciate our combination of high-quality
personal advice, short decision-making chains, and smart
digital solutions."
Nydal adds that the rate of growth is according to the
Bank's plans and that lending growth is expected to slow
further over the rest of the year.
Lower costs
Nydal underlines that the persistent low level of interest
rates, strong competition and changing customer behaviour
set high standards regarding good, efficient banking
operations.
Net interest income in the third quarter amounted to NOK 281
million, which represents an increase of NOK 10 million
compared with the same quarter last year. Other operating
income fell by NOK 19 million, in part due to the change in
market value of the bond portfolio.
Operating costs were NOK 3 million lower than in the same
quarter last year, despite the introduction of the financial
industry tax with effect from January this year. This
amounted to approximately NOK 3 million for the quarter.
"Cost effectiveness has been a high priority in Sparebanken
Møre for many years. We have also worked thoroughly and
systematically to keep losses and defaults at a low level.
In third quarter we recognised NOK 6 million in losses on
lending and guarantees and can thus still report a very low
level of losses."
Adjusting the dividend policy
Sparebanken Møre has the recent years specified a dividend
ratio in the range of 40 to 50 per cent. The Board now
states that about 50 per cent of the profit can be
distributed as dividends in the form of cash dividend to the
equity certificate owners and dividend to the local
community.
"Sparebanken Møre's aim is to achieve financial results
which provide a good and stable return on the Bank's equity.
The share of the profit which is set aside as dividend must
be adapted to the Bank's solidity, and we wish that the
Banks' good results over time will benefit both the equity
certificate owners and the community", Nydal says.
Future-oriented organisation
Sparebanken Møre has recently changed the organisation with
the aim of ensuring the Bank having a future-oriented,
outwardly directed and efficient organisation. This will
enable the Bank in meeting and taking advantage of the
digital shift in a positive manner.
One example of this is the Bank's new Customer Experience
Division, which is tasked with ensuring that both services
and solutions meet the customers' requirements and
expectations.
"Customer needs will be the focus for all development and
work processes in the Bank. Our customer satisfaction is
high and rising, and we are now dedicating even more
resources in ensuring that customers have a good experience.
This includes everything from the quality of advice and user
friendliness of digital channels, to the relevance of
products and services", says CEO, Trond Lars Nydal.
The new organisation was effective from 1 October 2017.
Key figures for Q3 2017
* Profit before losses: NOK 191 million (NOK 197 million)
* Profit after tax: NOK 139 million (NOK 146 million)
* Return on equity: 10.5 % (11.7 %)
* Net interest income: NOK 281 million/1.72 % (NOK 271
million/1.77 %)
* Cost income ratio: 44.2 % (43.1 %)
* Earnings per equity certificate (Group): NOK 6.95 (NOK
7.35)
Comparable figures for Q3 2016 in brackets.
Key figures for 30.09.2017
* Profit before losses: NOK 548 million (NOK 602 million)
* Profit after tax: NOK 400 million (NOK 461 million)
* Return on equity: 10.2 % (12.5 %)
* Net interest income: NOK 810 million/1.70 % (NOK 809
million/1.79 %)
* Cost income ratio: 44.9 % (42.4 %)
* Core Tier 1 capital ratio: 14.5 % (14.9 %)
* Earnings per equity certificate (Group): NOK 20.10 (NOK
23.10)
* Lending growth in the last 12 months: 9.1 % (0.6 %)
* Deposit growth in the last 12 months: 2.3 % (10.5 %)
Comparable figures for 30.09.2016 in brackets.
Contact
* Trond Lars Nydal, CEO, Mobile: +47 951 79 977
* Runar Sandanger, EVP, Mobile. +47 950 43 660
* Tone S. Gjerdsbakk, Chief Information Officer, Mobile: +47
990 44 346