Investor Relations

Q3: A stronger result with growth and good
underlying operations 

SpareBank 1 SR-Bank ASA (SRBNK) achieved a pre-tax profit of NOK 603 million for the third quarter of 2020, compared with NOK 759 million for the same quarter last year. The quarter’s results were characterised by growth, good underlying operations and a lower level of impairment losses compared with the previous two quarters this year.

The return on equity after tax for the quarter was 8.2% compared with 10.5% for the same quarter last year, and represents a significant improvement from the previous quarter.

Impairment losses on loans and guarantees amounted to NOK 369 million in the third quarter of 2020, which represents a decrease compared with the first and second quarters this year. The group’s operating costs for the third quarter of 2020 amounted to NOK 595 million, down from NOK 615 million for the same period last year.

“The group’s results improved despite continued high impairment losses. We have a robust, efficient business model that can cope with both good and challenging times. Thanks to important investments in technology in the last few years and skilled and adaptable employees, we are able to deliver the products and services our customers want, continuously and
without delay,” says Arne Austreid, the chief executive of SpareBank 1 SR-Bank.

At the end of the third quarter of 2020, the Common Equity Tier 1 capital ratio was 18.5%, compared with 14.2% last year. The target for Common Equity Tier 1 capital ratio was 16.7%, which is significantly above the authorities’ requirement of 15.2% at the end of the year.

“The demand from customers who need mortgages is good, in both existing and new market areas. In addition, EiendomsMegler 1 is seeing significantly higher activity in the housing market. In total, this is contributing to strong, profitable lending growth in the retail market. The acquisition of a several accounting firms in recent years has proved successful, with SR-Bank Forretningspartner being able to contribute to a substantial increase in income in the year to date,” says Arne Austreid.