SR-Bank achieved a result for the third quarter that is more than 20 per cent weaker than in 2019. The bank has incurred significant losses as a result of the corona pandemic.
- Dag-Henrik Fosse (Stavanger Aftenblad)
During the year, Sparebank 1 SR-Bank had significant write-downs on loans and financial instruments, and booked a loss of NOK 369 million for the third quarter against NOK 66 million for the third quarter in 2019.
– We deliver an operating profit before tax of 1.1 billion which shows that the bank is robust and well shod, says CEO Arne Austreid to Aftenbladet.
“But the corona pandemic has hit the bank hard, and the losses are primarily due to a significant fall in oil prices that has affected shipping companies and oil service companies,” says Austreid.
This quarterly report is the latest in Sparebank 1 SR-Bank he presents. He will occasionally join the pensioners’ ranks at the turn of the year after 10 years as CEO of the bank.
Benedicte Schilbred Fasmer has been hired as the new CEO of SpareBank 1 SR-Bank.
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– Good underlying operation
SpareBank 1 SR-Bank achieved a profit before tax of NOK 603 million for the third quarter this year, compared with NOK 759 million for the same quarter last year.
The result for the quarter is characterized by growth, good underlying operations and a lower level of write-downs compared with the two previous quarters this year, the bank reports.
The operating costs for the group in the third quarter of 2020 were NOK 595 million, down from NOK 615 million in the same period last year.
Write-downs on loans and guarantees amounted to NOK 369 million in the third quarter, which is a decrease compared with the first and second quarters of this year. In the second quarter, the corresponding loss was NOK 830 million. In the first quarter, the bank took write-downs of NOK 560 million.
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Profit fall of 2 billion
At the end of the third quarter, profit before tax was NOK 1.12 billion, compared with NOK 3.2 billion after the third quarter last year. The Korona pandemic is the main reason for the fall in profits of more than NOK 2 billion.
Sparebank 1 SR-Bank is the country’s largest savings bank, and the second largest bank with headquarters in Norway.
The CEO emphasizes that net interest income is higher this quarter than in the corresponding period last year. He is also pleased that costs are falling. Operating costs are down NOK 20 million, which is a reduction of 3.25 per cent from the third quarter of 2019. after nine months this year, costs are 2.4 per cent lower than after nine months in 2019.
For the first nine months of the year, net interest income is 3148 million, which is a growth of 7.6 percent after nine months in 2019.
Total losses and write-downs in the corona year so far are NOK 1.76 billion against NOK 96 million at the end of the third quarter of 2019.
Strong growth in lending
– The demand from customers who need housing financing, both in existing and in new market areas is good. In addition, Eiendomsmegler 1 is experiencing significantly increased activity in the housing market. In sum, this contributes to strong and profitable lending growth in the retail market, the bank writes in a statement when presenting the quarterly report.
The acquisitions of several accounting firms in recent years pay off for SR-Bank.
Key figures for SR Bank so far this year (as of 30 September, figures for the same period in 2019 in parentheses):
• Profit before tax: NOK 1116 million (3191 million)
• Profit after tax: NOK 982 million (2639 million)
• Return on equity after tax: 5.2 per cent (16.0 per cent)
• Earnings per share: NOK 3.84 (NOK 10.32)
• Net interest income: NOK 3148 million (2925 million)
• Net commission and other income: 1026 million (1057 million)
• Net income from financial investments: 459 million (1105 million)
• Operating costs: NOK 1757 million (1800 million)
• Loss: Impairment of loans and financial liabilities: NOK 1,760 million (96 million)