Profit for the first quarter came to NOK 1,084m after tax for the whole SpareBank 1 SMN Group. All business lines show good profitability, and contribute to a return on equity of 16 per cent. Together with other investors, SpareBank 1 SMN is now establishing a new mutual fund, “Såkorn 1 Midt”, with NOK 200m at its disposal for green early-stage investments in Mid Norway.
The bank is in an excellent financial position, with CET1 ratio of 18.5 per cent, which is well above both its own target and regulatory requirements. Group expenses are NOK 54m higher than in last year’s first quarter, but lower than in the fourth quarter. The decline is primarily attributable to capital tax, lower IT expenses and loss recovered as a result of the insurance settlement following the embezzlement.
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Overall lending growth in the quarter is 0.8 per cent, bringing an annual growth somewhat above credit growth in the market. In the last 12 months lending has risen by a total of NOK 24.3bn, corresponding to 11.4 per cent.
“Norges Bank’s interest rate hikes are starting to have an effect, but people and businesses fortunately appear to have robust finances that tolerate increased costs. We have not noted any significant increase in payment deferrals or defaults thus far”, says Group CEO Jan-Frode Janson.
Deposit growth was 1.1 per cent in the first quarter, with overall deposit growth of 10.9bn in the last 12 months, corresponding to 8.8 per cent.
Loan losses remain moderate. The group recorded losses of NOK 24m on loans and guarantees in the first quarter, corresponding to 0.04 per cent of overall outstanding loans.
An increased focus on savings and private banking over the past year has achieved good results. In the first quarter a total of NOK 1.7bn was brought in to SpareBank 1 Forvaltning, which is six times more than in the same period of last year.
EiendomsMegler 1 Midt-Norge reports both an increased volume of assignments and increased sales despite a calmer housing market. The company has increased its market share by one percentage point compared with the same quarter of last year. SpareBank 1 Regnskapshuset SMN continues to gain market shares both in traditional accounting and advisory services, and has invested substantially in competencies, digital cloud-based solutions and acquisitions in order to ramp up competitiveness. SpareBank 1 Finans Midt-Norge increased its pre-tax profit by NOK 13m to NOK 66m compared with the same quarter last year.
Good results at SpareBank 1 SMN also benefit the regional community through community dividend which supports projects large and small in local communities across Mid Norway. In June last year the bank announced its intention to launch a seedcorn fund to invest in green early-stage investments in the region, promising to match other investors krone for krone. The NOK 200m target was achieved in the first round of subscription, and the fund will duly be established.
“We have a firm belief in translating the region’s creative power into jobs and future value creation. The fact that we, together with a large number of other investors who share the same philosophy, have successfully established Såkorn 1 Midt with NOK 200m at its disposal is an important milestone. Sixty-seven attractive investment opportunities have already materialised, and we believe the first investment will be completed before summer”, says Group CEO Jan-Frode Janson.
Results for the first quarter 2024:
(Consolidated figures. Figures in parenthesis refer to the same period of 2023 unless otherwise specified)
Profit after tax: NOK 1,084m (778m)
Return on equity: 16.0% (13.0%)
CET1 ratio: 18.5% (18.2%)
Growth in lending: 0.8% (1.3%)
Growth in deposits: (1.1% (1.2%)
Losses on loans and guarantees: NOK 24m (minus 71m)
Earnings per equity certificate: NOK 4.68 (3.51)
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 subject to public disclosure pursuant to Section 5-12 of the Norwegian Securities Trading Act
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