Sbanken ASA: Gaining market share

World News: . []

Bergen, 12 July 2019. The Sbanken group generated a profit before tax of NOK 202.1 million in the second quarter. Net interest income increased by NOK 31.7, and net fee and commission income increased by NOK 2.9 million, from the second quarter of 2018. Lending growth in the quarter was 2.2 per cent. At quarter-end, total customer lending was NOK 79.9 billion, compared with NOK 76.8 billion at the end of the second quarter of 2018. Return on equity in the second quarter was 10.3 per cent.

Highlights:• Lending growth 2.2 per cent in the quarter, gaining market share• Repricing of loan book will contribute to improve the net interest margin• Increase in loss provisions for consumer loans mitigated by risk pricing• New SME offering launched end of June, well received with customers

“We have regained lending growth and maintained a net interest margin of 1.57 per cent. We have confirmed our strong market position in the retail segment and have launched a new and simplified banking experience for the SME market”, says Magnar Øyhovden, CEO of Sbanken ASA. Net interest income increased to NOK 359.1 (348.4) million as a result of increased net lending to customers. The net interest margin was 1.57 per cent, up from 1.47 per cent in the second quarter of 2018. Compared to the previous quarter the net interest margin was stable.

Operating expenses amounted to NOK 169.0 (168.3) million in the quarter.

The net cost of losses amounted to NOK 43.8 million in the quarter, equivalent to a loan loss ratio of 0.22 per cent. The underlying loss level in the quarter was 0.15 per cent. Losses were influenced by calibration in loss models for unsecured credit. This accounts for NOK 13.9 million in the quarter, equivalent to 0.07 per cent points of the loss level in the quarter. The financial effect will be mitigated by risk pricing.

At the end of the quarter, Sbanken had a CET 1 capital ratio of 14.9 per cent, a Tier 1 capital ratio of 16.4 per cent and a total capital ratio of 18.5 per cent. The capital ratios include 70 per cent of H1 2019 net profit. “Since 2000, Sbanken has challenged the banking market by continuously offering customers improved services. This autumn we will again do this by taking long term savings and SME banking to the next level for Norwegian customers”, Øyhovden concludes.

A detailed financial report for the group and for Sbanken ASA is attached to this notice. The report for the wholly-owned subsidiary, Sbanken Boligkreditt AS, is distributed separately.

More news and information about Sbanken ASA

Published By:

Globe Newswire: 06:00 GMT Friday 12th July 2019

Published: .

Search for other references to "sbanken" on SPi News


Share

Previous StoryNext Story

SPi News is published by Sector Publishing Intelligence Ltd.
© Sector Publishing Intelligence Ltd 2019. [Admin Only]
 
Sector Publishing Intelligence Ltd.
Agriculture House, Acland Road, DORCHESTER, Dorset DT1 1EF United Kingdom
Registered in England and Wales number 07519380.
 
Privacy Policy | Terms and Conditions | Contact Us