10.11.98	<< back
Interim report 30 September 1998
Satisfactory result so far this year for SpareBank 1 Midt-Norge The Group's result of ordinary operations at the end of the third quarter was NOK 250 million, a result that Managing Director Finn Haugan and the Board are satisfied with. This figure takes into account a write-down of NOK 26 million of the bank's holding of short-term investments. Overall the third-quarter result is NOK 20 million lower than for the same period last year. The subsidiaries' contribution totals NOK 15 million - including our share (20 %) of the profit recorded by SpareBanken 1 Gruppen AS - compared with NOK 8 million for the same period last year. The result corresponds to 1.55 % of average total assets (ATA), down from 1.83 % at the same point of time last year. Net interest income in per cent of ATA has also fallen - from 3.55 % to 3.19 % - over the same period, mainly because of higher funding costs in the wake of the sharp rise in market interest rates. Alongside the write-down of current assets, the main changes compared with the same period of last year are a reduced interest margin (NOK 8 million) and slightly higher lending losses (NOK 7 million). The accounts are also debited with higher operating expenses (NOK 16 million), mainly related to preparing and implementing the Group's anniversary celebrations this year. Stable operating expenses Operating expenses totalled NOK 393 million at the end of the third quarter, i.e. NOK 16 million higher than at the same point of time last year. The increase is above all due to heavy marketing outlays in connection with the bank's 175th anniversary celebrations and costs related to the transition to the new century. Person-years worked as at 30 September 1998 came to 659 (of which 588 referred to the parent bank), 14 fewer than at year-end. The post-tax result of NOK 179 million entails a return on equity of 15.2%, compared with 18.7% for the same period of 1997. The capital adequacy ratio as at 30 September 1998 was 10.8 %. Controlled lending growth, rise in total assets From the balance sheet we can see that our total assets are rising and were at the NOK 22.5 billion mark at the end of the third quarter. This is an increase of 11.0 % over the same point last year, says Finn Haugan. Moreover, our lending is growing in a controlled manner and at 30 September gross outstanding loans totalled NOK 19.4 billion, i.e. an increase of 10.0% over the past 12 months. The strongest growth has been in loans to the corporate market, which now accounts for 48% of the bank's overall lending. Customer deposits came to NOK 13.7 billion at end-quarter, i.e. an increase of about NOK 500 million or 3.6% over the past 12 months. At end-quarter about 74 % of the bank's net lending was financed by customer deposits, compared with 79 % the previous year. An international funding guarantee of USD 100 million has been obtained for contingency planing. The bank's portfolio of shares and primary capital certificates was worth NOK 159 million at end-quarter, and so far this year the portfolio has debited the accounts with NOK 10 million. This takes into account dividends totalling NOK 12 million.
	<< back