SPAREBANK 1 SMN SpareBank 1 SMN recorded a profit of NOK 1,828m in 2017, an increase of NOK 147m over the previous year. The bank's board of directors propose a dividend of NOK 4.40.
The board of directors' proposal to the supervisory board entails distributing 50 per cent of the net profit to the equity certificate holders and the community. This level is in keeping with the bank's dividend policy, and represents a step-up from 37 per cent last year. An allocation of NOK 250m is proposed for the foundation Sparebankstiftelsen SMN and of NOK 70m to non-profit causes in Trøndelag and in Møre and Romsdal.
The 2017 accounts reflect increased net profit, a strong financial position, reduced loan losses, good sales in all product areas, high growth and a large influx of new customers. 12,000 personal customers and 1,200 firms chose SpareBank 1 SMN as their new main bank in 2017.
"2017 proved to be another good year with rapid growth, especially in the retail market. Our position as a digital bank with a local and personal signature has been a correct strategy for us. Good digital solutions and effective interaction between digital channels and advisers with local knowledge throughout the region have brought many new customers to the bank and a high level of customer satisfaction," says Group CEO Finn Haugan at SpareBank 1 SMN.
Strengthened market position
The bank increased its lending to personal customers by 10.4 per cent to NOK 98.7bn in the last 12 months, far quicker than the general rate of lending growth in the market. Loans to corporates increased by 4.1 per cent to NOK 49.1bn, with growth mainly ascribable to small businesses. This is in keeping with the bank's plan for differentiated growth and an emphasis on small and medium-sized firms.
Net interest income rose by NOK 296m to NOK 2,225m compared with the same period of 2016. The increase is due mainly to growth in lending and increased lending margins.
Costs in the group rose by NOK 366m, relating largely to investments in SpareBank 1 Regnskapshuset SMN, SpareBank 1 Markets and BN Bolig. Costs in the parent bank have risen by NOK 58m, mainly due to the focus on digitalisation, introduction of a new tax on financial institutions and a new pension scheme. However, efficiency gains at the bank have resulted in lower staffing and reduced wage costs.
Low losses
Losses have been considerably reduced from the same period last year with a decline of NOK 175m to NOK 341. The losses relate mainly to the offshore segment.
"The bank's updated economic barometer, which takes the pulse of business and industry in the region, shows that firms are more optimistic and that prospects are brighter. This is also reflected in reduced losses for the bank. Virtually all offshore clients have been restructured, and are now seeing increasing activity levels. We therefore expect even lower losses ahead," says Finn Haugan.
Accounts as at the fourth quarter of 2107 - main figures:
- Pre-tax profit: NOK 2,279m (NOK 2,029m as at fourth quarter 2016)
- Post-tax profit: NOK 1,828m (1,681m)
- Return on equity: 11.5% (11.3%)
- Growth in lending: 8.2% (8.0%)
- Growth in deposits: 13.9% (4.8%)
- Loan losses: NOK 341m (516m)
- CET1 capital ratio: 14.9% (14.7%)
- Earnings per equity certificate: NOK 8.69 (7.91)
- Proposed dividend: NOK 4.40 (3.00)
Trondheim, 7 February 2017
Contact persons at SpareBank 1 SMN:
Executive Vice President 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)
http://quarterlyreport.smn.no/2017
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Source: SpareBank 1 SMN via Globenewswire
