Best ever profit performance at SpareBank 1 SMN
(Thomson Reuters ONE) - With a pre-tax profit of NOK 1,147 million, 2009 was a historically good yearfor SpareBank 1 SMN. TheBoard of Directors propose a dividend payout of NOK2.50 per equity capital certificate.The profit is NOK 374 million higher than last year's figure. CEO Finn Hauganpoints out that the performance reflects good earnings on core business,moderate losses, high return on financial investments and substantial profitcontributions from both SpareBank 1 Gruppen and BN Bank."The success achieved last year with good profit figures and strong growthconfirms the Bank's competitiveness and its will to maintain normal lendingactivity at a time coloured by the international financial crisis", says MrHaugan.Losses were somewhat higher in 2009 than in 2008, but still at a moderate leveland lower than we anticipated after the first quarter of 2009. Defaults weresubstantially lower towards year-end.Full year 2009 - highlights * Pre-tax profit: NOK 1,147 million (NOK 773m as of Q4 2008) * Post-tax profit: NOK 937 million (NOK 617m) * Return on equity: NOK 16.2% (11.9%) * Growth in lending: 8.6% (15.2%) * Loan losses: NOK227 million (NOK 202m) * Growth in deposits: 5.5% (8.8%) * Tier 1 capital ratio: 10.5% (8.1%) * Total capital ratio: 13.6% (11.9%) * Earnings per ECC: NOK 7.41 (NOK 4.94) * Proposed dividend: NOK 2.50 per ECCStrong influx of new customersThe substantial influx of new, good corporate customers is a direct consequenceof the fact that the Bank was little affected by the international financialcrisis and was therefore able to maintain normal, predictable credit treatment.Overall lending growth in the corporate market was 12.7 per cent in 2009compared with a general credit growth, according to Statistics Norway, of minus1.4 per cent. More than 1,250 new corporate customers were registered in 2009.SpareBank 1 SMN maintains a very strong position in the retail market with 5.8per cent growth in lending to residential borrowers. The Bank's risk models showthat the quality of the loan portfolio strengthened in the course of the year.The Bank's equity fund and pension products portfolios expanded by 15 per cent.Total assets at SpareBank 1 SMN have for the first time in history passed theNOK 100 billion mark, including loans transferred to the part-owned SpareBank 1Boligkreditt.Dividend of NOK 2.50The Board of Directors recommend to the Supervisory Board a cash dividend of NOK2.50 per ECC, altogether totalling NOK 174 million. This is in keeping with thenew dividend policy adopted by the Board of Directors in December 2009.The Board of Directors recommends that the Bank's Supervisory Board allocate NOK27 million to gifts for non-profit purposes. Under the agreement with theNorwegian State Finance Fund, the provision for gifts is limited to 10 per centof the ownerless capital's proportion of the profit.Tier 1 capital strengthenedThe Board of Directors of SpareBank 1 SMN proposes to refinance the hybridcapital infusion from the State Finance Fund by implementing: * A guaranteed rights issue placed with existing ECC holders providing gross proceeds of the order of NOK 800 million * A placing with employees * An issue of hybrid capital of up to NOK 450 million in the marketThe issue is fully underwritten and the subscription period is planned for 11 to25 March 2010. See stock exchange notice of 10 February 2010.Outlook for 2010The Board is well pleased with the Group's profit performance for 2009, andnotes that the Bank was less affected by the financial crisis than the Boardanticipated at the start of 2009.The Board will maintain its focus on core business through measures designed tostrengthen the income side, enhance efficiency and curb loan losses.The Board expects 2010, like 2009, to be marked by some uncertainty as regardsthe trend in the Norwegian and international economies. The Board expects thebusiness sector in the Bank's catchment area to continue to face challenges inthe shape of income shortfalls caused by the cyclical deterioration in theinternational economy. The Board will maintain an offensive strategy tostrengthen the Bank's market position and is intensifying the effort to improvecredit quality in the Bank's portfolio. The Board expects 2010 to be anothergood year for the Bank.Trondheim, 10 February 2010Contact persons at SpareBank 1 SMN:CEO Finn Haugan on +47 900 41 002Executive Vice President, Finance, Kjell Fordal on +47 905 41 672Executive Vice President, Corporate Communications, Hans Tronstad on +47941 78 322About SpareBank 1 SMNSpareBank 1 SMN is the region's leading financial services group. It leads theretail and corporate market, and is positioned in 56 localities across theregion.Our aim is to be the recommended bank for customers in Mid-Norway, and as alocal, independent savings bank we feel a special responsibility for stimulatinggrowth and prosperity in the region. We base our business on closeness to ourcustomers, good accessibility, a full product range and comprehensive financialadvisory services.Our head office is in Trondheim. The Group employs about 1,100 staff andincludes the following subsidiaries: SpareBank 1 SMN Finans, EiendomsMegler 1Midt-Norge, Allegro Finans and SpareBank 1 SMN Regnskap, as well as being thelargest shareholder in BN Bank with a stake of 33 per cent.SpareBank 1 SMN is one of six owners of SpareBank 1 Gruppen. For furtherinformation, visit our website at www.smn.no
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Datum: 10.02.2010 - 17:08 Uhr
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