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Results for Q1 2022:

Year starts with good income growth

Av Sparebanken Møre
Sparebanken Møre can point to a first quarter of customer growth, increasing income and no booked losses.

Profit after tax amounted to NOK 163 million after the first three months of the year, and the return on equity was 9.3 per cent. 

“Despite the fact that our quarterly profit was affected by mark-to-market adjustments of financial instruments, sound, professional banking enabled us to lay a good foundation for 2022. Once again, our figures clearly reflect our capable employees, proximity to customers and solid portfolio,” says CEO Trond Lars Nydal of Sparebanken Møre.

 

Stronger position

The bank continues to strengthen its market position in our region, Nordvestlandet, and can point to lending growth of 3.9 per cent in the past 12 months. The growth in deposits was high in both the retail and corporate markets and amounted to 7.9 per cent at the end of the quarter.

 

“The competition for customers is fierce, but we are enjoying steady growth in both the retail and corporate markets. We also see clear potential for further growth in our market area and have strengthened our branches to ensure good availability for even more customers,” says Nydal.

 

Sparebanken Møre is the largest financial group in Nordvestlandet, with 27 local branches and 27 specialist departments at its head office in Ålesund.

 

Investments growing income

The bank increased its net interest income throughout the quarter, while other income was affected by adjustments in the value of bonds. On the other hand, customer related other income increased by 12 per cent compared with the same quarter last year.

The cost income ratio was 46.0 per cent for the first quarter.

“Skilled customer advisers and more investment in areas such as asset management and real estate brokerage are contributing to increased income. In addition, the prospects of a high level of activity in these areas are good also going forward. The quarter’s costs were affected by both one-off costs and rigging for further growth, and we expect a lower cost income ratio in the coming quarters,” says Nydal. 

Solid portfolio

No losses on loans and guarantees were charged to the first quarter’s accounts and the bank has a solid and well-diversified portfolio. Around 68 per cent of lending is to retail customers, while the remainder is lending to corporate customers.

“Close customer follow-up is a key element of our business model and clearly one of the reasons for the bank’s low losses over time. Retail customers have their own financial advisers who follow them through different life phases, while corporate customers are followed up by advisers who specialise in different industries. The proximity and specialist expertise provides reassurance for both customers and us as a bank,” says Nydal.

 

The bank has strong liquidity, good financial strength and a high deposit-to-loan ratio.

 

Good prospects for Nordvestlandet

Sparebanken Møre monitors the global, national and regional economies closely, and even though the war between Russia and Ukraine has weakened the outlook for global economic growth, the economic prospects for Nordvestlandet are good.

 

Nydal highlights the high level of activity in the region and the unemployment rate, where the county’s rate is lower than the national rate. Following the end of the infection control rules in February, output picked up well in service industries such as transport, hotels, restaurants and tourism.

 

“Our region is active and adaptable, which we experience every day in our meetings with customers and other stakeholders in Nordvestlandet. We also have a long tradition of contributing to the activity and meeting places, and in the first quarter we had the pleasure of finally being able to invite people to more in-person gatherings again,” says Trond Lars Nydal.

 

The bank brought i.a. together around 500 participants at the “Børs and Bacalao” investor conference in March. This was also the venue for the final of the bank’s Næringsteft entrepreneur concept. Of the 65 registered start-ups, Motivic Labs was the eventual winner of the NOK 1 million first prize for its innovative mathematics learning platform.

 

Key figures – Q1 2022

  • Profit before losses: NOK 209 million (NOK 232 million)
  • Profit after tax: NOK 163 million (NOK 170 million)
  • Return on equity: 9.3 per cent (10.2 per cent)
  • Net interest income: NOK 334 million/1.62 per cent (NOK 304 million/1.53 per cent)
  • Cost income ratio: 46.0 per cent (39.9 per cent)
  • Common Equity Tier 1 capital (CET1): 17.2 per cent (16.9 per cent)
  • Earnings per equity certificate (Group): NOK 7.85 (NOK 8.26)
  • Lending growth in the past 12 months: 3.9 per cent (3.9 per cent)
  • Deposit growth in the past 12 months: 7.9 per cent (7.7 per cent)

 Comparable figures for Q1 2021 in brackets. 

Contacts

  • Trond Lars Nydal, CEO, Mobile: +47 951 79 977
  • John Arne Winsnes, CFO, Mobile: +47 462 80 999
  • Tone S. Gjerdsbakk, Chief Information Officer, Mobile: +47 990 44 346
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