Sparebanken Sogn og Fjordane had its best result for the third quarter nokosinne.
–
In a press release on Thursday, Sparebanken Sogn og Fjordane published its figures for the third quarter. With a profit before tax of NOK 229 million for the quarter, the bank achieved its best result for the third quarter nokosinne.
– We have had a very strong growth in the private market. An important explanation for this is that we have gained many new customers.
That’s what CEO Trond Teigene says to Firda.
Grows outside the county
Exactly how many new customers they have gained, Teigene can not go out with. But what he can tell is that 52 percent of the new private customers in the last year went outside Sogn og Fjordane, and then especially in the big cities like Oslo, Bergen (where they have offices) and in Stavanger and Trondheim. If you count the corporate customers, keep three out of four of the new customers outside the old county.
The bank director thinks it is due to several things, which in total give them a good reputation in the market. For example, for the third year in a row, they came in first place when it comes to reputation in the EPSI survey, which maps how satisfied customers are with the banks in Norway. The survey came in September.
The bank also came in second place with the best mobile bank, and went all the way to the top in customer relations and reputation.
– In addition, we have skilled advisors, and we are competitive with the solutions we offer. And we have worked all these years to grow outside Sogn og Fjordane, says Teigene.
also read
Sparebanken Sogn og Fjordane raises interest rates – your mortgage can be NOK 600 more expensive a month
We borrow more than before
Another reason why the county bank is doing well these days is that customers borrow more than before. The growth in lending over the past year is NOK 2.6 billion in total.
45 per cent of the bank’s lending is also to private customers outside Sogn og Fjordane. In Oslo, their customers are on average six years younger than in the old county, and they also borrow 60 per cent more than us.
– Both new and existing customers borrow more than they did before. There is a desire to invest in society; people are renovating their houses, or buying new houses, says Teigene.
The bank has had strong growth in lending over time. Lending growth in Sparebanken Sogn og Fjordane, ie the increase in how much the bank lends over the course of a year, is now 6.9 per cent.
In comparison, credit growth, ie lending growth in the market in general in Norway, is 5.1 per cent, while credit growth in general in Sogn og Fjordane is 4.7 per cent.
Better than the fear of business
But it is not only the private individuals who borrow more. The fact that the county bank is making such great progress is also due to something called “reversal of previous provisions for losses”: Every quarter, the bank must make an assessment of what the probability is that their customers will not be able to repay the loan. During the pandemic, uncertainty was high in the business community, and there were several who struggled to pay the bill. The bank had to take this into account, and enter it in its accounts, so that they do not receive less than what they budget to receive.
– When the pandemic hit last year, we made large loss provisions, but now we see that things are going better in the business world. This means that we can return the provisions, and that affects our result, says Teigene.
And with six out of ten limited companies in Sogn og Fjordane as customers, the bank has a good overview of the business community.
Of the 229 million in profit before tax in the third quarter, the reduction in loss provisions amounts to NOK 37 million.
also read
Do you tolerate renteauke? Frode Vasseth: – Will have something to say for people and companies in the future
Good operation
Good growth, income recognition on losses and otherwise a generally good development in the bank means that the bank ends up with a good result for the third quarter in isolation and for the year as a whole, the bank writes in the press release.
Profit after tax for the third quarter is NOK 176 million, which gives a return on equity of 12.7 per cent. For the year as a whole, the bank now has a profit after tax of NOK 470 million and a return on equity of 11.7 per cent in the third quarter.
– The fact that the bank has good operations means that we have strong financial muscles to help develop Sogn og Fjordane further. Our most important social responsibility is to finance the business community here, and the result gave us the strength to do just that, Teigene concludes.
Key figures
Main lines 3rd quarter 2021:
- Net interest income NOK 235 million (NOK 223 million).
- Profit financial instrument 36 mill. kr (7 million kr.).
- Operating costs 117 mill. (114 million).
- Reversal / income loss on loans NOK 37 million (NOK 26 million in losses).
- Total profit 176 mill. kr (95 million kr).
- Equity avkastning 12.7% pa (7.3% pa)
Main lines per. 3rd quarter so far this year:
- Net interest income NOK 694 million (NOK 674 million).
- Profit financial instrument 110 mill. kr (87 million kr.).
- Operating costs 360 mill. (350 million).
- Reversal / income loss on loans NOK 37 million (NOK 112 million in losses).
- Total profit 470 mill. (325 million).
- Equity avkastning 11.7% (8.6%).
- Capital adequacy ratio 19.0% (18.0%).
* All figures that are commented on debt for the group, unless otherwise stated. Figures in parentheses are figures for the third quarter of 2020.
Source: Sparebanken Sogn og Fjordane
also read
Decrease in the result for the same quarter last year: – Pleasant overall picture
Like Firda on Facebook
–
