Return to lending growth for Sbanken
Bergen, 11 November 2021. The Sbanken group generated a profit before tax of NOK 219.1 million in the third quarter of 2021, compared with NOK 274.4 million in the third quarter of 2020. Net interest income decreased by NOK 48.8 million, while net fee and commission income increased by NOK 7.1 million. Return on equity (ROE) was 9.2 per cent in the third quarter. Adjusting for excess capital above the 13.0 per cent target and non-recurring expenses, ROE for the quarter was 12.8 per cent.
At quarter-end, customer lending totalled NOK 82.4 billion, corresponding to a growth rate of 0.5 per cent from the previous quarter. Mortgage lending increased 0.4 per cent in the quarter, while car loans increased 14.5 per cent with the introduction of a new car loan product. Funds under management increased to NOK 30.3 billion, supported by increased inflow from savings agreements.
Highlights:
· Positive lending development quarter on quarter of 0.5 per cent
· DNB voluntary offer – awaiting decision from competition authorities
· Strong capital position – NOK 4.40 per share dividend distribution
· Robust asset quality – losses remaining at low levels
“This quarter, the bank has turned the lending growth trend, with strong development recorded both for mortgages and car loans. Losses remain low, a reflection of the bank’s low-risk lending portfolio. The bottom-line and return-on-equity this quarter is below previous quarter levels, but it should be noted that the numbers are impacted by the ongoing transaction process with DNB. This includes specific product adaptations introduced to combat mortgage churn after the offer announcement. I am also glad to see that the bank’s proposition on sustainability is receiving attention in the market. In the ESG 100 survey Sbanken was awarded a B+, more than two grades up from last year” says Øyvind Thomassen, CEO of Sbanken.
Net interest income decreased to NOK 373.4 (422.2) million. The net interest margin for the quarter was 1.50 per cent, down from 1.66 per cent in the third quarter of 2020 and 1.58 per cent in the previous quarter.
Operating expenses amounted to NOK 181.1 (166.8) million, of which NOK 3.8 million was non-recurring expenses related to the ongoing offer process. The cost-to-income ratio adjusted for non-recurring items was 43.7 per cent. Loan losses amounted to NOK 5.3 million, corresponding to a loan loss ratio of 0.03 per cent.
At quarter-end, Sbanken had a CET1 capital ratio of 16.3 per cent, 3.8 percentage points above the bank’s regulatory requirement of 12.5 per cent. On 1 October, the Board of Directors opted to utilise the outstanding dividend authorisation for 2020 to distribute a dividend of NOK 4.40 per share. The bank’s capital remain unchanged following the dividend distribution.
“With regards to the DNB transaction, we are naturally very excited to learn what the future holds for the bank’s customers, employees and other stakeholders. Irrespective of the final conclusion, our passion to create the future’s best digital customer experiences will remain,” Thomassen added.
The full interim report can also be found on www.sbanken.no/ir/ir-english. For APMs, please see the quarterly report for further details.
Contact details,
Investor Relations
Jesper M. Hatletveit, Head of IR, Sbanken ASA, +47 959 40 045
Henning Nordgulen, CFO, Sbanken ASA, +47 952 65 990
Media Contact
Kristian K. Fredheim, Head of Communications, Sbanken ASA, +47 924 47 407
This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act
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