Sparebanken Møre lifts profit

"We have started the new year with good momentum and a high level of activity, and financial key figures show a clear improvement from the same period last year. A solid financial foundation, a strong and broad competence environment and a forward-looking region mean that we have clear ambitions to continue to strengthen our market position in Northwest Norway," says Trond Lars Nydal, CEO of Sparebanken Møre.

Profit after tax ended at NOK 170 million after the first three months of the year, an increase of NOK 53 million from the same quarter last year. A loss of NOK 14 million has been booked in the first quarter, which is the lowest level since before the pandemic. The return on equity was 10.4 per cent, while expenses as a percentage of income ended at 40.5 per cent.

Proximity and industry knowledge
The bank continues to grow, and total lending growth over the past 12 months was 3.9 per cent. Deposit growth remained high and stable and ended at 7.7 per cent at the end of Q1.

"We have had strong growth in prioritized market areas, and find that many customers particularly appreciate having a permanent advisor who is available and close to us in the times we are in. We are also growing well in the business market, where we have emphasized being good discussion partners and supporters with cutting-edge expertise in both industries, prospects and relevant support schemes," says Nydal.

The bank has a large group of expertise related to the retail and corporate markets, as well as the equity, fixed income and foreign exchange markets. With over 200 authorised advisers and a number of specialist functions present locally, the bank constitutes the largest financial environment in Northwest Norway.

Increased investment in asset management and real estate
The bank's net interest income was impacted by a persistently low interest rate level, while other income strengthened in the quarter. This is mainly due to changes in the value of the bond portfolio, but also increased contributions from, among others, the subsidiary Møremegling.

"We have increased the number of employees and set ambitious goals for our real estate company, precisely because we see that the potential is great and our organization is well equipped. Proximity to customers, knowledge of local conditions and affiliation with Northwest Norway's largest bank are clear advantages for those who are both buying and selling a home," says Nydal.

The bank is also strengthening its focus on wealthy customers by consolidating and streamlining asset management services in a separate unit. This includes Active Management, which has experienced strong growth in both the number of customers and assets under management in recent years.

"We already constitute the largest professional environment for wealth management in Northwest Norway. By consolidating and expanding our range of services, we can further strengthen our offering for both wealthy private clients, investment companies and businesses with a liquidity surplus. We have a clear goal of development and growth in this area in the future," says Nydal.

Powerful policy instruments support a region that is adaptable
Developments in the labour market in Møre og Romsdal indicate a stable development in production and employment in the county through the 1st quarter. Since the beginning of the year, unemployment has fallen, and according to the Norwegian Labour and Welfare Administration (NAV), the number of fully unemployed at the employment offices accounted for 2.8 per cent of the labour force at the end of March. In comparison, the unemployment rate nationwide was 4.2 per cent.

In the longer term, the economic outlook has improved as a result of extensive containment measures, the rollout of vaccines and sustained economic support measures. The economic situation is nevertheless serious for several industries.

"We are there for people, businesses and local communities in uncertain times, and we continue to work hard to help ensure that Northwest Norway remains a strong, active and attractive region even after the pandemic. With a high level of expertise, a strong local presence and significant funds for good causes in the area, we have powerful instruments in this work," says CEO Trond Lars Nydal of Sparebanken Møre.

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Key figures – Q1 2021

• Profit before loss: NOK 232 million (NOK 187 million)
• Profit after tax: NOK 170 million (NOK 117 million)
• Return on equity: 10.4 per cent (7.1 per cent)
• Net interest income: NOK 305 million/1.51 per cent (NOK 342 million/1.80 per cent)
• Cost-to-income ratio: 40.5 per cent (47.2 per cent)
• Common equity tier 1 capital: 16.9 per cent (16.9 per cent)
• Profit per equity certificate (Group): NOK 8.26 (NOK 5.46)
• Growth in lending over the past 12 months: 3.9 per cent (6.3 per cent)
• Growth in deposits over the past 12 months: 7.7 per cent (6.7 per cent)

Comparable figures for Q1 2020 in brackets.

Contact persons

• Trond Lars Nydal, CEO, tel. 951 79 977
• Runar Sandanger, art. Head of Section Economics and Finance, tel. 950 43 660
• Tone S. Gjerdsbakk, Head of Communications, tel. 990 44 346

The quarterly report, financial presentation and webcast can be found on our IR pages.