SpareBank 1 SR-Bank ASA's profit before tax for the first quarter of 2024 wasNOK 1,498 million . The group took market share with good lending growth, higher income and low losses. The quarterly result wasNOK 367 million higher than in the same quarter in 2023. The return on equity after tax for the quarter amounted to 14.6%. The growth in Norwegian households' and businesses' debt has slowed in line with the interest rate hikes over the past year. Despite this,SpareBank 1 SR-Bank saw good growth in its lending volume in both the retail and corporate markets. For the first quarter of 2024, lending growth amounted to 5.8% in Retail Market, 9.9% in Large Corporates and 15.5% in SME & Agriculture. Overall, gross lending to customers has risen byNOK 20 billion in the past 12 months. "We have seen solid growth over time and are taking a greater share of a highly competitive market. At the same time, we are committed to ensuring good risk management as we grow and correct pricing for customers," says CEO Benedicte Schilbred Fasmer, continuing: "In the past year, we have also seen a sharp increase in the number of advice meetings, with customers more frequently wanting our help with financial planning. This gives customers the confidence to realise their projects while building stronger relationships with customers and giving our business more breadth. The group's net impairment provisions on loans and financial liabilities amounted toNOK 35 million as at the end of the first quarter of 2024. This is on a par with the corresponding quarter in 2023, and slightly higher than in the previous quarter. The impairment provisions corresponded to 0.05% of gross lending in the first quarter. The quality of our retail and corporate market portfolios is good.SpareBank 1 SR-Bank saw better net interest income and net commissions and other operating income in the first quarter than in the same period in 2023. Net interest income increased with 23,3%, toNOK 1,729 million , mainly due to lending growth, increased margins and higher interest on equity. Net commission and other income increased by 5.6% from the first quarter of 2023, toNOK 480 million in the first quarter of 2024. The main reasons for the increase were increased arrangement and customer fees in Large Corporates, growth in income from savings and investments, as well as income from money transfer services. EiendomsMegler 1 SR-Eiendom andSpareBank 1 SR-Bank Forretningspartner also saw improved results for the first quarter of 2024 compared with the first quarter of 2023. Net income from financial investments wasNOK 149 million in the quarter, with income from associated companies amounting to143 million kroner . The group's cost/income ratio was 35% for the first quarter, down from 39.5% for the first quarter of 2023. The groups operating costs increased in the first quarter of 2024 toNOK 826 million , up fromNOK 761 million for the first quarter of 2023. Personnel costs were higher, mainly due to more FTEs. The majority of the companies and households in the group's portfolio have been able to adapt to the higher costs and the higher level of interest rates over the past few years. The companies inThe Central Bank of Norway's regional network said that they are somewhat more optimistic than before about developments in the coming year. "We know that many companies are experiencing pressure on profitability and lower investment levels, with the building and construction sector experiencing a challenging period. However, the high activity inSouthwest Norway means that these companies are also faring better in this region. We expect the regional differences in both the business sector and housing market to last for some time to come.SpareBank 1 SR-Bank is well diversified and positioned for further growth inSouthern Norway ," says Benedicte Schilbred Fasmer. OnApril 17th , the group received approval from theNorwegian Competition Authority to merge with SpareBank 1 Sørøst-Norge. The merger process with SpareBank 1 Sør-Norge onOctober 1st is proceeding as planned. Q1 2024 o Profit before tax:NOK 1,498 million (NOK 1,131 million ) o Net profit:NOK 1,191 million (NOK 881 million ) o Return on equity after tax: 14.6% (12.5%) o Earnings per share:NOK 4.26 (NOK 3.31 ) o Net interest income:NOK 1,729 million (NOK 1,402 million ) o Net commissions and other operating income:NOK 480 million (NOK 455 million ) o Net income from financial investments:NOK 149 million (NOK 71 million ) o Operating costs:NOK 826 million (NOK 761 million ) o Impairment provisions on loans and financial liabilities:NOK 35 million (NOK 35 million ) o Total lending growth over past 12 months: 7.7% (10.5%) o Growth in deposits over past 12 months: -0.9% (7.1%) o Deposit growth in the past 12 months, excl. public sector: 6.1% (10.9%) o Common Equity Tier 1 capital: 17.62% (17.42%) o Capital ratio: 22.05% (21.05%) (Q1 2023 in brackets) The full interim report is available for download from www.sr-bank.no. Stavanger,25.4.2024 Contact people: Benedicte Schilbred Fasmer, CEO, Tel. +47 950 60 034Inge Reinertsen , CFO, Tel. +47 909 95 033Morten Forgaard , Finance Director, Tel. +47 916 21 425 Øyvind Knoph Askeland, Chief Communications Officer, Tel. +47 922 32 639 This information is disclosed in compliance with section 5-1 of the Securities Trading Act.
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