Started the year with good revenue growth

Profit after tax ended at 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 result is affected by value adjustments on financial instruments, good banking craftsmanship means that we have laid a good foundation for 2022. Skilled employees, proximity to customers and a solid portfolio are clearly reflected in our figures," says Trond Lars Nydal, CEO of Sparebanken Møre.

Strengthening the position
The bank continues to strengthen its market position in Northwest Norway, and can point to a lending growth of 3.9 per cent over the past 12 months. Deposit growth is high in both the retail and corporate markets and ended at 7.9 per cent at the end of the quarter.

"There is tough competition for customers, but we are constantly growing in both the retail and business markets. We also see a clear potential for further growth in our market area, and have strengthened our offices to ensure high availability for even more customers," says Nydal.

Sparebanken Møre is the largest financial environment in Northwest Norway, with 27 local offices and 27 specialist departments at the head office in Ålesund.

Initiative leads to income growth
The bank increased net interest income during the quarter, while other income was impacted by value adjustments on bonds. Other income excluding financial instruments, on the other hand, increased by 12 percent compared to the same quarter last year.

Expenses as a percentage of revenues amounted to 46.0 per cent in the 1st quarter.

"Skilled customer advisors and increased investment in, among other things, asset management and real estate brokerage contribute to increased revenues, and there are good prospects for high activity in the future as well. Costs in the quarter are affected by both non-recurring items and rigging for further growth, and we expect a lower cost share in the quarters ahead," says Nydal.

Solid portfolio
The accounts for Q1 are not charged with losses on loans and guarantees, and the bank has a solid and well-diversified portfolio. Approximately 68 per cent of the lending volume is related to retail customers, while the remainder is lending to corporate entities.

"Close customer follow-up is a key part of our business model, and a clear reason why the bank has had low losses over time. Retail customers have their own financial advisers who accompany them through different phases of their lives, while companies are followed up by advisers who specialise in different industries. The proximity and specialist expertise are a security for both customers and us as a bank," says Nydal.

The bank has strong liquidity, good solvency and a high deposit/loan ratio.

Good prospects for Northwest Norway
Sparebanken Møre follows the global, national and regional economies closely, and although the outlook for global economic growth has weakened as a result of the war between Russia and Ukraine, the economic outlook is good for Northwest Norway.

Nydal highlights a high level of activity in the region, and an unemployment rate that is lower in the county than for the country as a whole. After the discontinuation of infection control rules in February, production has picked up well in service industries such as transport, hotels and restaurants and tourism.

"Our region is active and adaptable, something we experience every day through meetings with customers and other players in Northwest Norway. We also have a long tradition of contributing to activity and meeting places, and in Q1 we had the pleasure of finally being able to invite to more physical gathering places again," says Trond Lars Nydal.

Among other things, the bank gathered around 500 participants for the investor conference Børs and Bacalao in March. The final of the bank's entrepreneurial concept Næringsteft also took place here. Out of 65 registered entrepreneurial companies, it was finally Motivic Labs that won the first prize of NOK 1 million for its innovative learning platform for mathematics.

Key figures – Q1 2022

• Profit before loss: 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-to-income ratio: 46.0 per cent (39.9 per cent)
• Common equity tier 1 capital: 17.2 per cent (16.9 per cent)
• Profit per equity certificate (group): NOK 7.85 (NOK 8.26)
• Growth in lending over the past 12 months: 3.9 per cent (3.9 per cent)
• Growth in deposits over the past 12 months: 7.9 per cent (7.7 per cent)
• Trond Lars Nydal, CEO, tel. 951 79 977
• John Arne Winsnes, CFO, tel. 462 80 999
• Tone S. Gjerdsbakk, Head of Communications, tel. 990 44 346

Comparable figures for Q1 2021 in brackets.

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