Solid growth for Sparebanken Møre

"There is tough competition for customers, at the same time as we are in a time of higher interest rates and a general increase in prices for goods and services. When we can nevertheless point to lending growth of more than NOK 3 billion over the past year, we take it as confirmation that we have an attractive and competitive total offering. We are heading into the autumn with clear ambitions to take further market shares," says Trond Lars Nydal, CEO of Sparebanken Møre.

The bank has increased its lending by NOK 1.9 billion in the retail market and NOK 1.3 billion in the corporate market over the past 12 months. Total deposits have increased by almost NOK 3.5 billion in the same period, corresponding to an increase of 8.3 per cent.

Has strengthened the total offer
Profit after tax for Q2 ended at NOK 183 million, compared with NOK 143 million in the same period last year. Net interest income increased by NOK 46 million, partly due to growth in lending and deposit customers. Customer-related other income increased by NOK 7 million, corresponding to a growth of 13.5 per cent. The total other income nevertheless ended NOK 15 million lower than in Q2 last year as a result of changes in the value of financial instruments.

"Over the past year, we have further strengthened our total offering, including through investments in digital customer solutions, the launch of the Private Banking concept, the development of the local offices and the strengthening of the bank's real estate companies. The figures for Q2 show that the investment has lifted customer-related revenues, and we expect further growth in the future," says Nydal.

As a result of strengthened investment, operating expenses are somewhat higher than in the same quarter last year, and costs as a percentage of revenues ended at 43.3 per cent.

High rate of development
In the first half of the year, Sparebanken Møre has carried out several digitalisation projects that strengthen the offer for customers, while at the same time freeing up time for customer follow-up for the advisers. New self-service solutions for mortgages, asset management and opening an account for children are among the services launched in Q2.

"In order to be an attractive and relevant player, we must succeed in meeting customer needs and find the balance between self-service and human contact. We are fully committed to good interaction between our contact surfaces, which customers give very good feedback on," says Nydal.

In April, Sparebanken Møre was the winner of the Customer Service Award – "Best in Test" in the banking category, for the fourth year in a row.

Close dialogue with customers
The quarterly result shows a net loss of NOK 8 million and a positive development in impaired exposures. The bank has a low proportion of customers with payment challenges, and there are few inquiries about instalment exemptions.

In May, the production of goods and services in mainland Norway was almost 3 per cent higher than before the pandemic. As a result of the increase in demand, unemployment has continued to fall, and at end-June the number of fully unemployed in Møre og Romsdal accounted for 1.5 per cent of the labour force. This is the lowest unemployment rate since 2008.

"Activity in the local business community is good, and we also see that the housing market has held up well in our region. However, the increase in the cost of both raw materials and energy, combined with rising interest rates, contributes to our being very aware of the need for close dialogue with our customers. Strong professional environments, local knowledge and good relationships help us to be both close to and early with good advice," says Nydal.

Key figures – Q2 2022

• Net interest income: NOK 353 million/1.65 per cent (NOK 307 million/1.53 per cent)
• Profit before loss: NOK 228 million (NOK 213 million)
• Profit after tax: NOK 183 million (NOK 143 million)
• Return on equity: 10.4 per cent (8.5 per cent)
• Cost-to-income ratio: 43.3 per cent (42.9 per cent)
• Profit per equity certificate (group): NOK 1.78 (NOK 1.37)

Comparable figures for Q2 2021 in brackets.

Key figures – H1 2022

• Net interest income: NOK 687 million/1.64 per cent (NOK 611 million/1.53 per cent)
• Profit before loss: NOK 437 million (NOK 445 million)
• Profit after tax: NOK 346 million (NOK 313 million)
• Return on equity: 9.9 per cent (9.4 per cent)
• Cost-to-income ratio: 44.7 per cent (41.3 per cent)
• Profit per equity certificate (group): NOK 3.35 (NOK 3.02)
• Common equity tier 1 capital: 18.1 per cent (16.9 per cent)
• Growth in lending over the past 12 months: 4.6 per cent (6.2 per cent)
• Growth in deposits over the past 12 months: 8.3 per cent (6.2 per cent)

Comparable figures for the 1st half of 2021 in brackets.

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