SpareBank 1 SR-Bank ASA's profit before tax for the fourth quarter of 2023 wasNOK 1,815 million . A clear improvement compared with the same period in 2022. The return on equity after tax for the quarter came to 19.7%. Lending growth, with increased net interest income, good operations and income recognition of losses contributed to the improvement in the results. AnNOK 421 million one-off gain from the sale of SR-Markets to SpareBank 1 Markets also made a positive contribution. The group's operating profit before tax ofNOK 1,815 million represents an increase ofNOK 590 million compared with the fourth quarter of 2022. Net interest income amounted toNOK 1,715 million for the fourth quarter of 2023, an increase ofNOK 429 million compared with the same quarter in 2022.SpareBank 1 SR-Bank is capturing market share and had seen total lending growth of 7.5% in the past 12 months as at the end of December. The quality of the loan portfolio is good, with low defaults and low risk of losses. In the fourth quarter, impairments on loans and financial liabilities amounting to income recognition ofNOK 91 million were recognised, compared with impairment provisions ofNOK 36 million in the same quarter in 2022. This is the third quarter in a row that the group has recognised income in relation to losses. "Since autumn 2021, Norwegian households and businesses have experienced a fourteenfold increase inNorges Bank's policy rate. Customers have been able to adapt in spite of interest rate hikes and increasing costs. As a bank, we reflect developments in the Norwegian economy, and I am pleased to present results that show that the majority of customers fared well through 2023," says CEO Benedicte Schilbred Fasmer. Operating costs amounted toNOK 935 million in the fourth quarter of 2023, upNOK 183 million from the fourth quarter of 2022. The increase was mainly due to a high level of activity in the group, increased personnel costs, and other one-off costs in the quarter.SpareBank 1 SR-Bank owns in a 19.5% stakeSpareBank 1 Gruppen AS . The profit contribution from the company wasNOK -51 million for the quarter. The negative contribution was mainly due to a write-down of the shares in Kredinor AS in December. Significant improvement in results in 2023 As at 31.12.2023, the group's operating profit before tax amounted toNOK 5,677 million , an increase ofNOK 1,466 million from the same period last year. The return on equity after tax was 15.3%. The board is proposing a dividend ofNOK 7.50 per share for 2023. Gross loans amounted toNOK 272.0 billion at the end of the fourth quarter of 2023. In the past 12 months, Retail Market, SME & Agriculture and Corporate Market have seen lending growth of 5.2%, 15.4% and 10.2%, respectively. The loan growth was a significant driver of the increase in net interest income, which rose byNOK 1,620 million in 2023 compared to 2022. Increases in net commissions and other operating income also had a positive effect on the operating profit. Less income from financial investments and higher costs had a negative effect on the operating profit. Underlying losses were back to a normalized level in 2023. Due to reversals of impairment provisions on loans and financial liabilities, the group recorded an income of232 million Norwegian kroner for the year, an improvement of237 million kroner from 2022. The profit contribution fromSpareBank 1 Gruppen AS wasNOK -41 million for 2023, compared withNOK 175 million in 2022. Write-downs in Kredinor AS, in addition to negative contributions from financial items and a challenging year forFremtind Forsikring AS , contributed to the result. "We can see that the growth in debt is slowing, that the Norwegian economy is cooling down and that competition for customers is intensifying.SpareBank 1 SR-Bank is well positioned to capture further market shares. In 2024, we also expect Rogaland, our largest market area, to fare better than other parts of the country due to the high level of activity in the energy industry. This could have a positive impact on the housing market and the prospects of companies in the region," says Benedicte Schilbred Fasmer. On 26.10.2023,SpareBank 1 SR-Bank ASA and SpareBank 1 Sørøst-Norge announced plans for the merger of the two groups, with a view to completion on1.7.2024 . "Due to capacity constraints on the part of external partners, suppliers and internally, we believe it makes sense to give the process more time. Therefore, we have decided to complete the legal merger on 1.10.2024," says Benedicte Schilbred Fasmer. This assumes that the group has received the necessary approvals from the authorities. Q4 2023 o Profit before tax:NOK 1,815 million (NOK 1,225 million ) o Profit after tax:NOK 1,503 million (NOK 1,000 million ) o Return on equity after tax: 19.7% (14.5%) o Earnings per share:NOK 5.48 (NOK 3.81 ) o Net interest income:NOK 1,715 million (NOK 1,286 million ) o Net commissions and other income:NOK 465 million (NOK 453 million ) o Net income from financial investments:NOK 478 million (NOK 274 million ) o Operating costs:NOK 935 million (NOK 752 million ) o Impairment provisions on loans and financial liabilities:NOK -91 million (NOK 36 million ) (Q4 2022 in brackets) Preliminary annual results for 2023 o Profit before tax:NOK 5,677 million (NOK 4,211 million ) o Profit after tax:NOK 4,475 million (NOK 3,378 million ) o Return on equity after tax: 15.3% (12.6%) o Earnings per share:NOK 16.27 (NOK 12.88 ) o Net interest income:NOK 6,136 million (NOK 4,516 million ) o Net commissions and other income:NOK 1,939 million (NOK 1,770 million ) o Net income from financial investments:NOK 669 million (NOK 756 million ) o Operating costs:NOK 3,299 million (NOK 2,825 million ) o Impairment provisions on loans and financial liabilities:NOK -232 million (NOK 5 million ) o Total lending growth in the past 12 months: 7.5% (9.8%) o Growth in deposits in the past 12 months: 0.7% (7.6%) o Deposit growth in the past 12 months, excl. public sector: 7.5% (12.7%) o Common Equity Tier 1 capital ratio: 17.61% (17.42%) o Capital ratio: 21.58% (20.31%) o The board is proposing a dividend ofNOK 7.50 per share for the 2023 financial year (NOK 7.00 ) (As at31.12.2022 in brackets) The full interim report is available for download from www.sr-bank.no. Stavanger,8.2.2024 . Contact people: Benedicte Schilbred Fasmer, CEO, Tel. +47 950 60 034Inge Reinertsen , CFO, Tel. +47 909 95 033Morten Forgaard , financial director, Tel. +47 916 21 425 Øyvind Knoph Askeland, communications director, Tel. +47 922 32 639 This information is disclosed in compliance with section 5-1 of the Securities Trading Act.
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