4th quarter 2018
Video presentation 4th quarter results
Preliminary annual result for 2018
Pre-tax profit: NOK 2,892 million (NOK 2,610 million)
Return on equity after tax: 11.3% (11.0%)
Net interest income: NOK 3,439 million (NOK 3,162 million)
Operating costs: NOK 2,229 million (NOK 2,167 million)
Impairment losses on loans: NOK 324 million (NOK 543 million)
Total lending growth over last 12 months: 7.6% (2.6%)
(As at 31 December 2017 in brackets)
SpareBank 1 SR-Bank achieved a pre-tax profit of NOK 2,892 million for 2018 compared with NOK 2,610 million for 2017.
SpareBank 1 SR-Bank achieved a pre-tax profit of NOK 2,892 million for 2018 compared with NOK 2,610 million for 2017. The result was due to higher ordinary operating income, a moderate increase in the group’s operating costs and significantly lower impairment on loans than in 2017.
The return on equity after tax was 11.3% compared with 11.0% in 2017, while the common equity tier 1 capital ratio was 14.7%, compared with 15.1% as at 31 December 2017.
The pre-tax profit for the quarter in isolation was NOK 676 million, compared with NOK 700 million for the corresponding period in 2017. This corresponds to a return on equity after tax of 10.1%, compared with 11.4% for the fourth quarter of 2017.
Impairment on loans and guarantees totalled NOK 324 million for the full year, compared with NOK 543 million in 2017.
“We took some strategically important steps during the year. FinStart Nordic AS made its first six investments in companies, which will strength our overall customer offer. We also established a presence in Oslo and have already been well received by both retail customers and corporate customers,” says chief executive Arne Austreid.
The group maintains good control over its costs and is one of the most efficient financial institutions in terms of costs measured as a percentage of income. The cost/income ratio for the full year was 40.9%.
“I am very pleased with the results we managed to achieve in 2018. The 11.3% return on equity shows that our business model is robust and profitable. The business sector and people in Southern and Western Norway have demonstrated an admirable ability to adapt and are now well equipped for a higher level of activity going forward. We stood side by side with our customers and achieved profitable operations during some challenging years. This was possible thanks to more than twelve hundred competent and motivated employees who work hard every day to create good customer experiences,” says Arne Austreid.