MING:SMN pushes up profit by NOK 400 million

SpareBank 1 SMN posted a profit of NOK 685 million for the first nine
months of 2009, an improvement of NOK 400 million from the same
period last year. The Bank's profit performance reflects good
earnings on its core business, high return on financial investments
and a substantial profit contribution from SpareBank 1 Gruppen.
 
"This is a good performance, with a positive showing in the third
quarter compared with the two preceding ones. Incomes increased, cost
growth was markedly reduced and loss and default levels declined in
the third quarter. At the same time we bolstered our capital
strength," says CEO Finn Haugan at SpareBank 1 SMN. Moreover, good
results were recorded by Sparebank 1 gruppen and BN bank, and badwill
was taken to income as a result of SpareBank 1 SMN's increase of its
stake in BN bank to 33%.
 
SpareBank 1 SMN is seeing a good influx of new, good corporate
clients, and maintains a strong position in the retail market.
Although higher in the first nine months than in the same period last
year, loss and default levels remain moderate and are lower than we
expected after the first quarter.
 
First nine months - highlights:
*          Profit: NOK 685m (285m in same period 2008)
*          Pre-tax profit: NOK 830m (419m)
*          Return on equity: 16.6% (7.5%)
*          Growth in lending: 10.0% (16.3%)
*          Loan losses: NOK 238m (69m)
*          Tier 1 capital adequacy: 10.6% (8.8%)
*          Total capital adequacy: 13.9% (11.9%)
*          Earnings per equity certificate: NOK 5.57 (NOK 2.28)
 
Over NOK 100 billion
Total assets at SpareBank 1 SMN have for the first time in the Bank's
history passed the NOK 100 billion mark, including loans transferred
to part-owned SpareBank 1 Boligkreditt.
 
Throughout the financial crisis SpareBank 1 SMN has stressed that
customers should enjoy normal, predictable credit treatment. The
result is a good customer influx and an enhanced reputation for the
Bank. This strategy will continue.
 
The Bank has raised its ambition as regards capital strength. In
order to achieve its goal immediately, the Board of Directors applied
to the State Finance Fund for an infusion totalling NOK 1.25 billion
in the form of hybrid capital, and the Bank's tier 1 capital adequacy
ratio duly strengthened by two percentage points in the third
quarter. The Board is now considering on a continuous basis what
would be the most favourable point in time to refinance the hybrid
capital in the ordinary capital market. We currently expect this to
be done in 2010.
 
Outlook for the rest of the year
The Board will continue to focus on measures to strengthen the income
side, reduce operating expenses and curb loan losses. The Board notes
that the Bank was not hit as hard by the financial crisis as might
have been expected at the start of 2009. It none the less takes the
view that the after-effects of the financial crisis could still
trouble businesses and individuals. For that reason the Bank's
preparedness and focus on the task of assisting stricken businesses
and of curbing the Bank's losses is maintained.
 
The Board expects 2009 to be a satisfactory year for the bank.
 
Contact persons at SpareBank 1 SMN:
CEO Finn Haugan on +47 900 41 002
Executive Vice President, Finance, Kjell Fordal on +47 905 41 672
Executive Vice President, Corporate Communications, Hans Tronstad on
+47 941 78 322
 
Trondheim, 30 October 2009
 
About SpareBank 1 SMN
SpareBank 1 SMN is the region's leading financial services group. It
leads the retail and corporate market, and is positioned in 56
municipalities across the region.
 
We aim to be the recommended bank for customers in Mid-Norway, and as
a local, independent savings bank we feel a special responsibility
for stimulating growth and prosperity in the region. We base our
business on closeness to our customers, good accessibility, a full
product range and comprehensive financial advisory services.
 
Our head office is in Trondheim. The Group employs about 1,100 staff
and includes the following subsidiaries: SpareBank 1 SMN Finans,
EiendomsMegler 1 Midt-Norge, Allegro Finans and SpareBank 1 SMN
Regnskap.
 
SpareBank 1 SMN is one of six owners of SpareBank 1 Gruppen. For
further information, visit our website at www.smn.no
 
Downloadable photo here.
 
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