(Consolidated figures. Figures in parenthesis refer to 2003 unless otherwise stated).

 

SpareBank 1 Midt-Norge recorded a post-tax net profit of NOK 430 million (NOK 222 million) in 2004, equivalent to a return on equity of 18.7% (10.2%). The result for the year measured 1.16% (0.60%) of average total assets (ATA). The parent bank's cost-income ratio (exc. capital gains) was 51% (58%). Including capital gains, the cost-income ratio was 48%.

 

The income side shows:

- Although 2004 featured keen competition, the interest margin remained unchanged at 2.34% (2.34%). Net interest and credit commission income improved by NOK 30 million (0.08%) as a result of exemption from payment of the levy to the Savings Banks Guarantee Fund. A lower lending margin and lower return on the bank's equity capital as a result of lower interest rates the main reason why net interest income was unchanged in relation to 2003. The bank's net interest income was on a stable trend over the last three quarters.

- Capital gains and dividends on securities totalled NOK 68 million (69 million)

- Commission income and other operating income totalled NOK 424 million (332 million), an increase of NOK 92 million or 28% over the previous year. Good sales, especially of savings products, other main reason for this positive development. In 2004 commission income, excluding securities gains and the share of the SpareBank 1 Group's result, accounted for as much as 34% of the bank's total operating income. This is an increase from 28% in 2003.

- The overall result recorded by the bank's subsidiaries came to NOK 36 million (NOK25 million) after tax. Of this figure, Eiendomsmegler 1 Midt-Norge accounted for NOK 5.8 million, SpareBank 1 Finans Midt-Norge for NOK 11.7 million and Allegro Finans ASA for NOK 16.1 million.

- The SpareBank 1 Group achieved a post-tax net profit of NOK 149 million (-35 million). SpareBank 1 Midt-Norge's share of the result of the SpareBank 1 Group is NOK 23 million (-5 million). This is the best result ever recorded by the SpareBank 1 Group.

 

The cost side shows:

- Operating expenses totalled NOK 729 million (733 million), producing an overall net cost reduction of 0.6%. The parent bank's costs were reduced by NOK 15 million, net, or 2.4%.

- Group-wide staff costs rose by NOK 11 million in 2004. This figure takes account of a reduction of NOK 21 million in the parent bank's ordinary wage costs. At the same time there was an increase of NOK 18 million in bonuses to the bank's workforce. The subsidiaries' staff costs rose by NOK 15 million in 2004, comprising increases in ordinary salaries and commissions, bonuses and pension costs alike. The number of staff FTEs (Full-time Equivalents) in the Group fell by 85 as a direct result of the "Efficiency 2004" programme. At year-end there were 637 FTEs (713) in the Group, and 510 FTEs (592) in the parent bank.

- Operating expenses measured 1.97% of ATA (1.99%). In the parent bank the ratio was 1.65% (1.70%).

- The cost-income ratio (exc. capital gains) was 51% (58%) for the parent bank. When income from the securities area is included, the cost-income ratio was 48%.

 

Losses and credit risk:

- There was a marked decline in loan losses and a reduced level of defaults in 2004. Loan losses totalled NOK 81.3 million (229 million). Loans in default for more than 90 days totalled NOK 345 million, a decrease of as much as NOK 101 million.

- As of end-2004 unspecified loss provisioning totalled NOK 314 million (NOK 318 million), or 0.9% of all outstanding loans. Specified loss provisioning totalled NOK 290 million, a decrease of NOK 90 million since end-2003.

 

Total customer deposits rose by NOK 0.8 billion or 4.3%, and the volume of other savings products by NOK 0.9 billion or 47.4%. Lending grew in all by NOK 1.7 billion or 5.1%. The overall volume of insurance premiums rose by 9.5%.

 

The bank's total assets at year-end came to NOK 38.6 billion, NOK 1.7 billion (4.7%) higher than 12 months previously.

 

Managing Director Finn Haugan expresses his great pleasure with the fact that the result posted in 2004 is the best in the bank's history. The excellent performance is attributable to successful internal improvement processes, substantial progress in sales of above all savings and insurance products, along with a generally good operating environment for business and industry. Mr Haugan is also very pleased with the prospect of a successful takeover of Romsdals Fellesbank ASA. Almost 99% of the bank's shareholders have accepted our offer, and we are working well and constructively together with Romsdals Fellesbank's board and management to achieve both banks' objective of speedy integration. We look forward to further developing the market in Møre and Romsdal together with the management and staff of Romsdals Fellesbank ASA once our concession application has been finally considered by the Financial Supervisory Authority and the Ministry of Finance, hopefully by the end of April, says Managing Director Finn Haugan in conclusion.

 

 

Contacts:

 

Any questions may be addressed to

the Managing Director, Finn Haugan, tel.: + 47 90 04 10 02

or the chief financial officer, Kjell Fordal, tel.: + 47 90 54 16 72

  

 

About us

 

SpareBank 1 Midt-Norge is Central Norway's leading financial group. We are market leaders in personal and business banking and have 48 offices in 42 municipalities, in addition to distributing our services through 17 in-shop banks. Our head office is in Trondheim. The group has approximately 700 employees and comprises, in addition to banking operations, the subsidiaries SpareBank 1 Finans Midt-Norge AS, EiendomsMegler 1 Midt-Norge AS, Allegro Finans ASA and Midt-Norge Regnskap AS.

 

Our mission is to be the recommended bank for customers in Central Norway and, as a local, independent savings bank, we feel a special responsibility for stimulating growth and quality of life in the region. We base our business on proximity to customers, good accessibility, a complete range of banking, financial and insurance products, and holistic financial advisory services. 

 

SpareBank 1 Midt-Norge is one of seven owners of SpareBank 1 Gruppen AS.

 

For more information, visit our website at