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to face sharp competition, lower economic growth and continued uncertainty about
the corona pandemic.
The post-tax profit for the first six months of the year was NOK 1,008m compared
with NOK 1,729m in the same period of 2019. The subsidiaries EiendomsMegler 1
Midt-Norge, SpareBank 1 Regnskapshuset SMN, SpareBank 1 Finans Midt-Norge and
SpareBank 1 Markets all show strong figures and account for an increasing share
of the group’s earnings.
“Central Norway recovered more rapidly than we could have expected in late
winter. This is particularly evident in the housing market. It is also reflected
in SpareBank 1 SMN’s accounts which show higher growth and lower losses than in
the previous quarter. All credit to our customers and our staff for the way they
have tackled the corona challenges. Being in a position to support the voluntary
sector and the cultural sector through our social dividend is also gratifying”,
says Group CEO Jan-Frode Janson at SpareBank 1 SMN.
Lending to personal customers rose 7.9 per cent in the last twelve months, and
SpareBank 1 SMN has thus strengthened its market position as the leading bank in
Central Norway. The growth is largely due to the bank’s agreement with the
Norwegian Confederation of Trade Unions (LO) and to high activity in the housing
market. Lending to corporates rose by 5.2 per cent thanks to increased demand
from small and medium-sized businesses in the region. 4,200 personal customers
and 650 businesses chose SpareBank 1 SMN as their new main bank in the first
half-year.
Reduced losses in the second quarter
Losses on loans totalled NOK 478m compared with 308m in the first quarter,
measuring 0.56 per cent of total outstanding loans. 89 per cent of losses in the
first half of the current year refer to corporate clients.
“The corona crisis continues to leave its mark on the accounts, although the
bank made substantially lower write-downs in the second quarter than the first.
We have an active summer behind us, both in the housing market and among firms.
Even so, major uncertainties remain. Covid infections are on the increase, and
the government is again imposing tighter restrictions nationwide. SpareBank 1
SMN continues to keep a cool head and is helping people and viable companies
through the crisis”, says Jan-Frode Janson.
Transition from management by the bank to management by the group
The enhancement programme ‘One SMN’ will realise synergies between the group’s
business lines in addition to increased digitalisation, more efficient work
processes and ambitious cost reductions.
Changes are made to the composition of the group management team in a move to
increase the business focus of the entire group. Managing director Arne Nypan
(49) at SpareBank 1 Regnskapshuset SMN and managing director Kjetil Reinsberg
(59) at EiendomsMegler 1 Midt-Norge join the group management team from 11
August onwards.
“The changes signal a switch from management anchored in the bank to management
anchored in the group. The changes will enable the group management team to keep
closer to the business and to become even more customer-oriented”, says Jan-
Frode Janson.
Group costs rose 1.3 per cent to NOK 1,422m in the first half-year. In order to
meet sharper competition and lower economic growth, the group intends to enhance
its operational efficiency. Its ambition is to reduce annual costs by a minimum
of NOK 200m.
See the enclosed quarterly interim report and presentation.
Key figures
- Pre-tax profit: NOK 1,202m (2,003m as per first half 2019)
- Post-tax profit: NOK 1,008m (1,729m)
- Return on equity: 10.3% (19.0%)
- Growth in lending: 7.0% (5.7%)
- Growth in deposits: 8.9% (7.7%)
- Loan losses: NOK 478m (126m)
- CET1 ratio: 17.2% (15.0%)
There will be a Global Investor webinar in English 11th on August at 3:30 PM
CET. You can find the link to the webinar here (https://vimeo.com/event/217633)
Trondheim, 11 August 2020
Contact persons at SpareBank 1 SMN:
Executive Director, Finance, Kjell Fordal on +47 905 41 672
Head of Corporate Communications, Hans Tronstad on +47 941 78 322
This information is subject of the disclosure requirements acc. to §5-12 vphl
(Norwegian Securities Trading Act)
https://quarterlyreport.smn.no/2020
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