Bergen, 16 July 2021. The Sbanken group generated a profit before tax of NOK 253.2 million in the second quarter of 2021, compared with NOK 210.6 million in the second quarter of 2020. Net interest income increased by NOK 8.4 million, while net fee and commission income increased by NOK 4.1 million. Return on equity (ROE) in the second quarter was 11.1 per cent. Adjusting for excess CET1 capital above the 13.0 per cent target, ROE for the quarter equalled 14.9 pent.
At quarter-end, customer lending totalled NOK 82.0 billion, corresponding to an annual lending growth rate of minus 2.9 per cent. Mortgage churn was elevated in the month of May, while mortgage growth was moderately positive in June. Funds under management (FuM) increased to NOK 29.4 billion, a result of positive market sentiment and continued high inflow from customers.
· DNB 108.85 per share offer received 91.2 per cent combined acceptance
· Received Ministry of Finance approval – awaiting consent from Norwegian Competition Authority
· World first with authorisation for savings robo-advisor
· Increased mortgage churn – quarterly mortgage growth minus 1.3 per cent
· Strong asset quality – net reversal of loan loss provisions
“This quarter has been unique in the bank’s history. Our savings robo-advisor has become the first in the world to be authorised, and we have once again been named the bank with the most loyal and satisfied customers. The news that has gained the most attention, especially among customers, is however DNB’s offer for Sbanken. We are still awaiting consent from the Norwegian Competition Authority, but the received acceptances above 90 per cent, in combination with the approval from the MoF, brings us closer to clarifying what the future will hold. While mortgage lending was down in the quarter, we are however glad to return to positive growth towards the end of the quarter, a result of our initiatives related to the interest rate guarantee and a new mortgage credit product,” says Øyvind Thomassen, CEO of Sbanken.
Net interest income increased to NOK 392.4 (384.0) million. The net interest margin for the quarter was 1.58 per cent, up 3 basis points from the previous quarter.
Operating expenses amounted to NOK 191.1 (170.0) million, of which NOK 8.7 million was non-recurring costs related to the ongoing offer process. The cost-to-income ratio adjusted for non-recurring items was 42.9 per cent. The net cost of losses was positive with NOK 18.8 million, following a reversal of previously recorded loan loss provisions. This corresponds to a loan loss ratio of minus 0.09 per cent.
The Board of Directors retains an authorisation to decide on the distribution of 2020 dividends, limited up to NOK 4.40 per share. Taking the pending dividend into account, Sbanken had CET1 capital ratio of 16.0 per cent at quarter-end. This was 3.5 percentage points above the bank’s regulatory capital requirement of 12.5 per cent.
“These are exciting times, and should DNB become the new owner of Sbanken, we will set strategic plans for a journey together. DNB share our strong passion for digital customer experiences, and by combing our complimentary organisations, we can together create the market-leading banking services of tomorrow,” Thomassen added.
The full interim report can also be found on www.sbanken.no/ir/ir-english.
Jesper M. Hatletveit, Head of IR, Sbanken ASA, +47 959 40 045
Henning Nordgulen, CFO, Sbanken ASA, +47 952 65 990
Kristian K. Fredheim, Head of Communications, Sbanken ASA, +47 924 47 407
This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act