Sparebanken Møre continuing to grow

“The past quarter was a busy one with our lending in the retail market increasing by NOK 1 billion. We are also growing well in the corporate market, at the same time as we are seeing high deposit growth. We take this as confirmation that we have an attractive and competitive overall offering for customers,” says Trond Lars Nydal, CEO of Sparebanken Møre.

Total lending growth in the past 12 months amounted to 6.1 per cent, while total deposits increased by 9.6 per cent in the same period.

Regional financial services group

Profit after tax for the third quarter amounted to NOK 189 million, compared with NOK 176 million for the same period last year. Good customer growth has contributed to increased net interest income and the bank has also increased other customer-related income during the period. However, mark-to-market valuation of the financial instruments pulled down total other income, which ended NOK 34 million lower than in the same quarter last year.

“We are seeing high activity in all customer-related areas and are continuously striving to develop as a complete financial services group with strong regional roots. It is very clear to us that being near the customers, short decision-making paths and local knowledge are helping us strengthen our position in Nordvestlandet,” says Nydal.

Operating costs were on a par with previous quarters this year, and the cost income ratio ended the quarter at 41.4 per cent.

Customers want counselling

NOK 2 million was recognised as losses on loans and guarantees during the quarter, and the proportion of customers experiencing repayment difficulties is low. Nevertheless, the bank is ready to help any customers affected by higher inflation and higher cost of living.

“The strong growth in deposits indicates that customers generally have good liquidity. However, we are in a period where many people are experiencing increased financial insecurity and we are seeing a growing demand for advice. Close follow-up and acting early are high priorities at times like this and we are well-equipped to help,” says Nydal.

Sparebanken Møre represents Nordvestlandet’s largest financial services environment with 250 authorised advisers and a strong professional- and specialist environment. 

The power to develop sustainable ideas

The bank recently topped EPSI’s sustainability index, for the second year in a row. The index measures customer perceptions of banks’ social, economic and environmental corporate responsibility and their commitment to sustainable development.

“We take a result-oriented approach to sustainability and corporate responsibility, both in and outside the bank, and it’s good to see that customers are both noticing and appreciating our efforts. In-house upskilling, good tools for customers and a strong commitment to our region are, and will remain, high priorities going forward,” says Nydal.

The accelerator programme “Næringsteft” is one of the measures the bank has implemented to generate the power to develop innovative and sustainable ideas in Nordvestlandet. The starting pistol recently fired for the 6th round of the programme, which, since 2017, has contributed to a competence journey for around 550 teams of entrepreneurs and the establishment of a number of new companies.

Key figures – Q3 2022

• Net interest income: NOK 398 million/1.87 per cent (NOK 320 million/1.58 per cent)
• Profit before losses: NOK 254 million (NOK 231 million)
• Profit after tax: NOK 189 million (NOK 176 million)
• Return on equity: 10.5 per cent (10.5 per cent)
• Cost income ratio: 41.4 per cent (40.4 per cent)
• Earnings per equity certificate (Group): NOK 1.82 (NOK 1.72)

Comparable figures for Q3 2021 in brackets. 

Key figures as at the end of Q3 2022

• Net interest income: NOK 1,085 million/1.72 per cent (NOK 931 million/1.54 per cent)
• Profit before losses: NOK 691 million (NOK 676 million)
• Profit after tax: NOK 535 million (NOK 489 million)
• Return on equity: 10.1 per cent (9.7 per cent)
• Cost income ratio: 43.5 per cent (41.0 per cent)
• Earnings per equity certificate (Group): NOK 5.17 (NOK 4.74)
• Common Equity Tier 1 capital (CET1): 18.2 per cent (17.1 per cent)
• Lending growth in the past 12 months: 6.1 per cent (6.2 per cent)
• Deposit growth in the past 12 months: 9.6 per cent (3.7 per cent)

Comparable figures as at the end of Q3 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