SpareBank 1 Midt-Norge is today announcing its results for the first six months to 30 June 2004 with a pre-tax profit of NOK 258 million (NOK 36 million), which is a huge improvement of NOK 222 million on last year's pre-tax profit. The main features are a sharp increase in other income, reduced costs and reduced loan losses. The good results are attributable to the following:

 

Income:

Strong growth in income from commissions from NOK 158 million to NOK 194 million  (+ 23 %)

Improved net interest income compared with the 1st quarter, and positive effect on accounts of exemption from contributions to the Banks' Guarantee Fund

Price gains on securities and returns of NOK 41 million (NOK 47 million)

Good results for the Bank's subsidiaries

Strong improvement in results and a profit for SpareBank 1 Gruppen AS, with the Bank's share of earnings NOK 5.4 million (- NOK 2 million)

 

Costs:

Parent bank with 54 % cost-income ratio after comprehensive cost-cutting and efficiency programme

 

Losses and credit risk:

The Bank's aim to achieve a 65 % share of the market in loans to personal customers by 31 December 2005 is well on track with the current figure 63 %, a further1 % up on the 1st quarter 2004. Significantly reduced losses on loans: NOK 58 million in first-half 2004 compared with NOK 237 million in the same period last year.

 

Gross loans and advances totalled NOK 33,088 million, an increase of NOK 1,084 million (3.4 %) compared with first-half 2003. Deposits were NOK 21,002 million, with an increase in the past 12 months of NOK 1,021 million or 5.1 %. Deposits from personal customers have grown by 2.3 % in the past 12 months, while deposits from business customers grew by 9.1 %. Growth in the business market is primarily attributable to a new commitment with Sør-Trøndelag County Council.

 

At 30 June 2004, SpareBank 1 Midt-Norge's total assets were NOK 37,373 million (NOK 37,581 million). 

 

The Bank's Board of Trustees resolved at its meeting on 17 March to carry out a capitalisation issue. Corrected for the effect of the issue, the Primary Capital Certificate price was NOK 192 at year-end 2003. At 30 June 2004, the price was NOK 196. A dividend of NOK 18.00 per PCC was paid in the 1st quarter. Corrected for the capitalisation issue, the dividend was NOK 14.40 per PCC.

 

Commenting on the results, the Bank's Managing Director, Finn Haugan, said that first-half 2004 had been highly successful from several points of view. The growth in income from commissions, on increased sales of other savings products, was particularly gratifying. There had been a conscious effort on the Bank's part to offer customers a wider range of savings products and the results are now becoming apparent.

 

Mr Haugan also stressed the importance of the cost-cutting program. "Since last year we have carried out a full review of the Bank's costs, aiming to slash our annual operating costs by NOK 68 million and achieve a cost-income ratio of maximum 55 %. The first-half results show the parent bank with a cost-income ratio of 54 %." Finally, Mr Haugan said that the good results of course also must be ascribed to the many new customers and the bank's team of skilled, committed employees.

 

* Half Year Report 2004;

* Presentation of Half Year Report 2004;

 

 

 

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

  

 

SpareBank 1 Midt-Norge is Central Norway's largest and leading bank with a total market share of just over 40 %. The Bank is also one of Norway's largest in agriculture and aquaculture, and a significant player vis-à-vis the public sector. As "Trøndelag's llocal bank", the Bank's local presence in the community is the key element in our business, although we are also characterised by the use of modern technology.  At 31 December 2003, the Group had total assets of NOK 36.9 billion, and a net profit for 2003 of NOK 223 million. The Bank's staff totalled 600 man-years. In addition to the Bank, the Group consists of the subsidiaries SpareBank 1 Finans Midt-Norge AS, EiendomsMegler 1 Midt-Norge AS, Midt-Norge Regnskap AS, Midt-Norge Fonds AS and Allegro Finans AS.  SpareBank 1 Midt-Norge is one of six owners of SpareBank 1 Gruppen AS.  Our offerings iinclude insurance and savings products, including active investment management through our own product companies, such as ODIN Forvaltning AS, First Securities AS and Ida Bilforvaltning AS.  The SpareBank 1 alliance is the fourth largest bank grouping in Norway.

 

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