All business lines have contributed to SpareBank 1 SMN’s strong net profit growth in the second quarter. The group recorded an overall profit of NOK 1.015bn after tax, corresponding to a return on equity of 15.4 per cent for the quarter.
The result is attributable to good net interest income, increased earnings from subsidiaries and solid profits from the group’s ownership interests.
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“We have done what we said we would do – focus on profitable growth. It is above all in uncertain times like the present that savings banks gain ground by keeping a cool head and being there for people, businesses and local communities. We have done this for more than 200 years, and will continue to do so,” says Group CEO Jan-Frode Janson.
In the second quarter the merger between the insurance companies Fremtind and Eika was approved by Finanstilsynet (Norway’s FSA). The bank, SpareBank 1 Regnskapshuset SMN and EiendomsMegler 1 Midt-Norge have all expanded their market shares while concurrently delivering good financial results. Loan losses have risen somewhat from the first to second quarter, but remain at a low level. The bank’s expenses are at approximately the same level as in the previous quarter, while a high activity level among the subsidiaries increased expenses somewhat.
SpareBank 1 SMN is in a very strong financial position, with CET1 ratio of 18.5 per cent at the end of the second quarter. This is well above both government requirements and the group’s own target.
“SpareBank 1 SMN’s capital strength enables us to stand together with our customers in troubled times, and at the same time achieve further growth and take action to strengthen our position”, says Mr Janson.
In June SpareBank 1 SMN and the Norwegian University of Science and Technology (NTNU) initiated a collaboration on artificial intelligence. SpareBank 1 SMN is to be a partner in the AI Lab, and will over the next five years contribute NOK 40m of the bank’s community dividend to research and development in concrete projects.
“Artificial intelligence is likely to revolutionise businesses’ working methods and people’s everyday lives. One of the foremost research centres in this field is located in the middle of our catchment area here in Mid Norway. That is why we are proud to contribute investments, competence and data to enable the bank, our customers and people in general to draw benefits from it,” says Group CEO Jan-Frode Janson.
Key figures:
(Consolidated figures. Figures in parenthesis refer to the same period of 2023 unless otherwise specified)
Profit after tax: NOK 1,015m (923m)
Return on equity: 15.4% (15.1%)
CET1 ratio: 18.5% (19.1%)
Growth in lending: 1.5% (8.5%)
Growth in deposits: 3.9% (13.5%)
Losses on loans and guarantees: NOK 47m (29m)
Earnings per equity certificate: NOK 4.43 (4.21)
Contact:
CFO Trond Søraas on +47 922 36 803
Executive vice president Rolf Jarle Brøske on +47 911 12 475
The above information is subject to public disclosure pursuant to Section 5-12 of the Securities Trading Act.
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