|SpareBank 1 Midt-Norge. Excellent result for 2005. Profit of NOK 919 million before tax (NOK 723 after tax)|
|(Consolidated figures. Figures in parenthesis refer to the preceding year unless otherwise stated)
SpareBank 1 Midt-Norge recorded a post-tax profit of NOK 717 million (455 million) in 2005, corresponding to a return on equity of 24.1% (20.0%). The profit measured 1.51% (1.22%) of average total assets.
SpareBank 1 Midt-Norge recorded strong growth in all business areas in 2005. Lending to retail and corporate customers rose by NOK 4.4 billion or 11%, and deposits rose by NOK 2.0 billion or 8% (pro forma figures including Romsdals Fellesbank). Groth in portfolio values of savings products other than ordinary bank deposits totalled as much as NOK 1.9 billion, an increase of 65% compared with the start of the year. A 14% increase in premium volume was recorded on overall sales of personal and non-life insurances.
The substantial improvement over 2004 is mainly ascribable to the following factors:
The income side shows:
The cost side shows:
Losses and defaults:
(The balance sheet, including loans and deposits, is commented on based on pro forma figures since Romsdals Fellesbank was only consolidated into the SpareBank 1 Midt-Norge Group on 31 March 2005.)
The Group's assets totalled NOK 54 billion at end-2005, NOK 8 billion more than at the end of 2004.
Total outstanding loans came to NOK 45.4 billion, having risen by 11% over the year. Customer deposits at end-2005 totalled NOK 27 billion, an increase of 8%.
The Board of Directors has resolved to recommend the bank's Supervisory Board to distribute a cash dividend of NOK 5.50 per PCC. The Board has also decided to recommend the Supervisory Board to set aside NOK 89 million to donation fund. This corresponds to 25% of the profit after allocation to dividends.
Commenting on the accounts, CEO Finn Haugan says that 2005 was the bank's best ever trading year. Operating parameters were favourable for Norwegian banks in 2005, as previously. What is special in our case is that we have taken over and integrated Romsdals Fellesbank, a move which might normally have weakened our profit performance. That this did not happen was due to a magnificent effort on the part of all employees in the Group, says Mr Haugan. This is confirmed by the very strong growth achieved by the bank in 2005 in well secured home mortgage loans, in sales of insurance and savings products and in the corporate market in general. It is also highly gratifying that SpareBank Gruppen AS posted an unprecedented result of NOK 679 million before tax and that all the bank's subsidiaries show solid performances, says Finn Haugan in conclusion.
Trondheim, 1 February 2006
SpareBank 1 Midt-Norge:
Any questions should be directed to:
CEO Finn Haugan, tlf.:
Executive Director Kjell Fordal, tlf.:
About SpareBank 1 Midt-Norge
SpareBank 1 Midt-Norge is the region's leading financial group. We are the market leader in personal and corporate banking, and have 71 offices and branches across the region. Our aim is to be the recommended bank for customers in Central Norway, and as a local and independent savings bank we feel a special responsibility for stimulating growth and development in the region. We base our business on proximity to our customers, accessibility, a full product range and comprehensive financial advisory services.
Our head office is in Trondheim. The Group has about 800 employees and includes the following subsidiaries: SpareBank 1 Finans Midt-Norge, Eiendomsmegler 1 Midt-Norge, Allegro Finans AS and Midt-Norge Regnskap AS.
SpareBank 1 Midt-Norge is one of six owners of SpareBank 1 Gruppen AS.
For further information, please visit our website
Presentation of 4rd Quarter 2005:
4th Quarter Report 2005: