Results 2nd quarter 2017
A good result characterised by greater activity and lower losses.
|First half-year 2017 (H1 2016 figures)|
|Pre-tax profit||NOK 1,160 million (NOK 973 million)|
|Net profit for the period||NOK 917 million (NOK 792 million)|
|Return on equity after tax||9.9 % (9.3 %)|
|Operating costs||NOK 1,067 million (NOK 1,006 million)|
|Impairment losses on loans||NOK 299 million (NOK 455 million)|
|Common equity tier 1 capital ratio||14.7 % (13.5 %)|
|Tier 1 capital ratio||15.7 % (14.4 %)|
SpareBank 1 SR-Bank achieved a pre-tax profit of NOK 1,160 million for the first half of 2017, compared with NOK 973 million for the same period last year. The results were affected by greater activity throughout the group, which is reflected by both higher income and a moderate rise in operating costs. The return on equity after tax was 9.9% compared with 9.3% for the same period in 2016.
The pre-tax profit for the quarter seen in isolation was NOK 648 million, compared with NOK 486 million last year, which is equivalent to a return on equity after tax of 11%, compared with 9.4% for the second quarter of 2016.
"I am very satisfied with the results for the quarter seen in isolation and with the overall results for the first half of the year. Impairment losses on loans were lower than in the preceding quarters, which is first and foremost due to several of the offshore-related companies that set the tone having carried out successful restructuring processes. We have also noted that activity levels in the rest of the business sector have increased. At the same time, most of the business areas in the group are seeing higher earnings," says Arne Austreid, the chief executive of SpareBank 1 SR-Bank.
The group recognised NOK 299 million in net impairment losses on loans in the first half of 2017, compared with NOK 455 million for the same period last year. The impairment losses on loans in the first half of 2017 were generally linked to individual commitments within oil-related activities.
Targets and estimates 2017
Return on equity 11 %
CET 1 capital ratio 15 %
Growth in loans 2,0 - 4,0 %
Normalised growth in costs 2%
Impairment losses 600-800 mill. NOK
Dividend share >35%